Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2012

Summary of Cross Currency Swap Agreement

As at December 31, 2012, the Partnership was committed to the following cross currency swap:

Principal

Floating Rate Receivable

Fixed

Fair Value /
Carrying
Amount of

Weighted-
Average
Remaining

Amount
NOK

Amount
$

Reference
Rate

Margin

Rate
Payable

Liability
$

Term
(Years)

700,000

125,000

NIBOR

5.25

6.88

(2,623

)

4.3

Interest Rate Swap Agreements

As at December 31, 2012, the Partnership was committed to the following interest rate swap agreements:


	Interest Rate Index	Principal Amount $		Fair Value / Carrying Amount of Assets (Liability) $			Weighted- Average Remaining Term (years)		Fixed Interest Rate (%)⁽¹⁾
LIBOR-Based Debt:
U.S. Dollar-denominated interest rate swaps⁽²⁾	LIBOR		412,880		(110,590	)		24.1		4.9
U.S. Dollar-denominated interest rate swaps⁽²⁾	LIBOR		203,455		(57,804	)		6.2		6.2
U.S. Dollar-denominated interest rate swaps	LIBOR		90,000		(17,937	)		5.7		4.9
U.S. Dollar-denominated interest rate swaps	LIBOR		100,000		(20,205	)		4.0		5.3
U.S. Dollar-denominated interest rate swaps⁽³⁾	LIBOR		206,250		(56,355	)		16.0		5.2
LIBOR-Based Restricted Cash Deposit:
U.S. Dollar-denominated interest rate swaps⁽²⁾	LIBOR		469,260		165,687			24.1		4.8
EURIBOR-Based Debt:
Euro-denominated interest rate swaps⁽⁴⁾	EURIBOR		341,382		(41,329	)		11.5		3.1

					(138,533	)

⁽¹⁾	Excludes the margins the Partnership pays on its floating-rate term loans, which, at December 31, 2012, ranged from 0.30% to 2.75%.

⁽²⁾	Principal amount reduces quarterly.

⁽³⁾	Principal amount reduces semi-annually.

⁽⁴⁾	Principal amount reduces monthly to 70.1 million Euros ($92.5 million) by the maturity dates of the swap agreements.

Location and Fair Value Amounts of Derivative Instruments

The following table presents the location and fair value amounts of derivative instruments, segregated by type of contract, on the Partnership’s consolidated balance sheets.


	Accounts receivable		Current portion of derivative assets		Derivative assets		Accrued liabilities			Current portion of derivative liabilities			Derivative liabilities
As at December 31, 2012
Interest rate swap agreements		4,513		16,927		144,247		(10,887	)		(48,046	)		(245,287	)
Cross currency swap agreement		54		285		—		—			—			(2,962	)
Toledo Spirit time-charter derivative		—		—		1,100		—			—			—

		4,567		17,212		145,347		(10,887	)		(48,046	)		(248,249	)

As at December 31, 2011
Interest rate swap agreements		4,344		15,608		139,651		(11,448	)		(43,973	)		(248,645	)
Toledo Spirit time-charter derivative		—		—		—		—			—			(600	)

		4,344		15,608		139,651		(11,448	)		(43,973	)		(249,245	)

Gains (Losses) for Derivative Instruments Not Designated or Qualifying as Hedging Instruments

The effect of the (loss) gain on these derivatives on the Partnership’s consolidated statements of income is as follows:


	Year Ended December 31,
	2012								2011									2010
	Realized gains (losses)			Unrealized gains (losses)		Total			Realized gains (losses)			Unrealized gains (losses)			Total			Realized gains (losses)			Unrealized gains (losses)			Total

Interest rate swap agreements		(37,427	)		5,200		(32,227	)		(62,660	)		(9,677	)		(72,337	)		(42,495	)		(34,906	)		(77,401	)
Toledo Spirit time-charter derivative		907			1,700		2,607			(93	)		9,400			9,307			(1,919	)		600			(1,319	)


		(36,520	)		6,900		(29,620	)		(62,753	)		(277	)		(63,030	)		(44,414	)		(34,306	)		(78,720	)

- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

+ References+ Details