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Derivative Instruments and Hedging Activities (Tables)
 9 Months Ended
Sep. 30, 2019
Derivative [Line Items]  
Schedule of Foreign Exchange Contracts, Statement of Financial Position [Table Text Block]
Foreign Exchange Risk

From time to time the Company economically hedges portions of its forecasted expenditures denominated in foreign currencies with foreign currency forward contracts.

As at September 30, 2019, the Company was committed to the following foreign currency forward contracts:
 
Contract Amount in Foreign Currency
 
Average
Forward Rate (1)
 
Fair Value / Carrying Amount
Of Asset (Liability)
$
 
 
 
 
 
 
Expected Maturity
 
 
 
 
2019
 
2020
 
 
 
 
$
 
$
Euro
9,240
 
0.86
 
(535)
 
3,952
 
6,750


(1)
Average contractual exchange rate represents the contracted amount of foreign currency one U.S. Dollar will buy.
The Company enters into cross currency swaps, and pursuant to these swaps the Company receives the principal amount in NOK on the maturity dates of the swaps, in exchange for payment of a fixed U.S. Dollar amount. In addition, the cross currency swaps exchange a receipt of floating interest in NOK based on NIBOR plus a margin for a payment of U.S. Dollar fixed interest. The purpose of the cross currency swaps is to economically hedge the foreign currency exposure on the payment of interest and principal amounts of the Company’s NOK-denominated bonds due in 2020, 2021 and 2023. In addition, the cross currency swaps economically hedge the interest rate exposure on the NOK bonds due in 2020, 2021 and 2023. The Company has not designated, for accounting purposes, these cross currency swaps as cash flow hedges of its NOK-denominated bonds due in 2020, 2021 and 2023. As at September 30, 2019, the Company was committed to the following cross currency swaps:
 
 
 
 
 
 
 
 
 
 
Fair Value /
Carrying
Amount of
Asset /
(Liability)
$
 
 
Notional
Amount
NOK
 
Notional
Amount
USD
 
Floating Rate Receivable
 
 
 
 
 
 
 
Reference
Rate
 
Margin
 
Fixed Rate
Payable
 
 
Remaining
Term (years)
1,000,000
 
134,000

 
NIBOR
 
3.70%
 
5.92%
 
(24,532
)
 
0.6
1,200,000
 
146,500

 
NIBOR
 
6.00%
 
7.72%
 
(15,474
)
 
2.1
850,000
 
102,000

 
NIBOR
 
4.60%
 
7.89%
 
(14,881
)
 
3.9
 
 
 
 
 
 
 
 
 
 
(54,887
)
 
 
Interest Rate Swap Agreements
As at September 30, 2019, the Company was committed to the following interest rate swap agreements related to its LIBOR-based debt and EURIBOR-based debt, whereby certain of the Company’s floating-rate debts were swapped with fixed-rate obligations: 
 
Interest
Rate
Index
 
Principal
Amount
 
Fair Value /
Carrying
Amount of
Asset /
(Liability)
$
 
Weighted-
Average
Remaining
Term
(years)
 
Fixed
Interest
Rate
(%)(1)
LIBOR-Based Debt:
 
 
 
 
 
 
 
 
 
U.S. Dollar-denominated interest rate swaps (2)
LIBOR
 
1,063,011

 
(47,983
)
 
3.6
 
2.8

EURIBOR-Based Debt:
 
 
 
 
 
 
 
 
 
Euro-denominated interest rate swaps
EURIBOR
 
75,352

 
(9,044
)
 
3.9
 
3.8

 
 
 
 
 
(57,027
)
 
 
 
 

(1)
Excludes the margins the Company pays on its variable-rate debt, which, as of September 30, 2019, ranged from 0.3% to 3.95%.
(2)
Includes interest rate swaps with the notional amount reducing quarterly or semi-annually. Three interest rate swaps are subject to mandatory early termination in 2020, 2021 and 2024, at which time the swaps will be settled based on their fair value.
Location and Fair Value Amounts of Derivative Instruments
The following tables present the location and fair value amounts of derivative instruments, segregated by type of contract, on the Company’s unaudited consolidated balance sheets.
 
Prepaid Expenses and Other
 
Other Non-Current Assets
 
Accounts Payable, Accrued
Liabilities and Other
 
Current
Portion of
Derivative
Liabilities
 
Derivative
Liabilities
 
$
 
$
 
$
 
$
 
$
As at September 30, 2019
 
 
 
 
 
 
 
 
 
Derivatives designated as a cash flow hedge:
 
 
 
 
 
 
 
 
 
Interest rate swap agreements
—

 
—

 
(3
)
 
(698
)
 
(5,801
)
Derivatives not designated as a cash flow hedge:
 
 
 
 
 
 
 
 
 
Foreign currency contracts
—

 
—

 
—

 
(535
)
 
—

Interest rate swap agreements
1,297

 
383

 
(1,483
)
 
(10,352
)
 
(40,370
)
Cross currency swap agreements
—

 
—

 
(659
)
 
(26,917
)
 
(27,311
)
Forward freight agreements
1,045

 
—

 
—

 
—

 


 
2,342

 
383

 
(2,145
)
 
(38,502
)
 
(73,482
)

 
 
Prepaid Expenses and Other
 
Other Non-Current Assets
 
Accounts Payable, Accrued
Liabilities and Other
 
Current
Portion of
Derivative
Liabilities
 
Derivative
Liabilities
 
$
 
$
 
$
 
$
 
$
As at December 31, 2018
 
 
 
 
 
 
 
 
 
Derivatives designated as a cash flow hedge:
 
 
 
 
 
 
 
 
 
Interest rate swap agreements
784

 
2,362

 
20

 
—

 
—

Derivatives not designated as a cash flow hedge:
 
 
 
 
 
 
 
 
 
Interest rate swap agreements
2,915

 
2,973

 
(2,498
)
 
(7,419
)
 
(32,672
)
Cross currency swap agreements
—

 
—

 
(713
)
 
(4,729
)
 
(23,680
)
Stock purchase warrants
—

 
12,026

 
—

 
—

 
—

Forward freight agreements
—

 
—

 
—

 
(57
)
 
—

 
3,699

 
17,361

 
(3,191
)
 
(12,205
)
 
(56,352
)
Schedule of Cash Flow Hedges
For the periods indicated, the following tables present the gains (losses) on interest rate swap agreements designated and qualifying as cash flow hedges (excluding such agreements in equity-accounted investments):

Three Months Ended September 30, 2019
 
Three Months Ended September 30, 2018
Amount of Loss Recognized in OCI(1)
 
Amount of Gain Reclassified from Accumulated OCI to Interest Expense(1)
 
Amount of Gain Recognized in OCI (effective portion)
 
Amount of Gain (Loss) Reclassified from Accumulated OCI to Interest Expense (effective portion)
 
Amount of Gain Recognized in Interest Expense (ineffective portion)
(2,244)
 
22
 
1,437
 
37
 
—

Nine Months Ended September 30, 2019
 
Nine Months Ended September 30, 2018
Amount of Loss Recognized in OCI(1)
 
Amount of Gain Reclassified from Accumulated OCI to Interest Expense(1)
 
Amount of Gain Recognized in OCI (effective portion)
 
Amount of Gain (Loss) Reclassified from Accumulated OCI to Interest Expense (effective portion)
 
Amount of Gain Recognized in Interest Expense (ineffective portion)
(9,646)
 
430
 
6,527
 
(211)
 
740

(1) See Note 2 – adoption of ASU 2017-12.
Effect of Gain (Loss) on Derivatives Not Designated as Hedging Instruments
Realized and unrealized (losses) gains from derivative instruments that are not designated for accounting purposes as cash flow hedges are recognized in earnings and reported in realized and unrealized (losses) gains on non-designated derivatives in the unaudited consolidated statements of loss as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019

2018
 
2019
 
2018
 
$
 
$
 
$
 
$
Realized (losses) gains relating to:
 
 
 
 
 
 
 
Interest rate swap agreements
(2,247
)

(2,704
)
 
(5,720
)
 
(11,544
)
Interest rate swap agreement terminations
—


(13,681
)
 
—

 
(13,681
)
Foreign currency forward contracts
—


—

 
—

 
—

Stock purchase warrants
—

 
—

 
(25,559
)
 
—

Forward freight agreements
435


(119
)
 
393

 
(137
)
 
(1,812
)

(16,504
)
 
(30,886
)
 
(25,362
)
Unrealized (losses) gains relating to:
 
 
 
 
 
 
 
Interest rate swap agreements
(623
)

19,718

 
(14,839
)
 
44,169

Foreign currency forward contracts
(435
)

—

 
(536
)
 
—

Stock purchase warrants
—


(5,373
)
 
26,900

 
(851
)
Forward freight agreements
946


(9
)
 
1,050

 
25

 
(112
)

14,336

 
12,575

 
43,343

Total realized and unrealized (losses) gains on derivative instruments
(1,924
)

(2,168
)
 
(18,311
)
 
17,981
Effect of Gains (Losses) on Cross Currency Swaps
Realized and unrealized (losses) gains from cross currency swaps are recognized in earnings and reported in foreign exchange gain (loss) in the unaudited consolidated statements of loss as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
 
$
 
$
 
$
 
$
Realized losses on maturity and termination of cross currency swaps
—

 
(42,271
)
 
—

 
(42,271
)
Realized losses
(1,431
)
 
(1,744
)
 
(3,952
)
 
(4,926
)
Unrealized (losses) gains
(23,759
)
 
43,966

 
(25,819
)
 
49,734

Total realized and unrealized (losses) gains on cross currency swaps
(25,190
)
 
(49
)
 
(29,771
)
 
2,537