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Financial Instruments | 9 Months Ended
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Sep. 30, 2021
Fair Value Disclosures [Abstract] |
Financial Instruments | Financial Instruments a) Fair Value Measurements For a description of how the Partnership estimates fair value and for a description of the fair value hierarchy levels, see Item 18 – Financial Statements: Note 3 to the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year ended December 31, 2020. The following table includes the estimated fair value and carrying value of those assets and liabilities that are measured at fair value on a recurring and non-recurring basis, as well as the estimated fair value of the Partnership’s financial instruments that are not accounted for at fair value on a recurring basis.
|  |  |  | September 30, 2021 |  | December 31, 2020
|  | Fair Value Hierarchy Level |  | Carrying Amount Asset (Liability) $ |  | Fair Value Asset (Liability) $ |  | Carrying Amount Asset (Liability) $ |  | Fair Value Asset (Liability) $
Recurring: |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents and restricted cash (note 15) |  | Level 1 |  | 155,627 |  |  | 155,627 |  |  | 257,943 |  |  | 257,943 |
Derivative instruments (note 11) |  |  |  |  |  |  |  |  |  |
Interest rate swap agreements – assets |  | Level 2 |  | 1,823 |  |  | 1,823 |  |  | — |  |  | — |
Interest rate swap agreements – liabilities |  | Level 2 |  | (35,401) |  |  | (35,401) |  |  | (75,468) |  |  | (75,468) |
Cross currency swap agreements – assets |  | Level 2 |  | 3,895 |  |  | 3,895 |  |  | 4,505 |  |  | 4,505 |
Cross currency swap agreements – liabilities |  | Level 2 |  | (20,537) |  |  | (20,537) |  |  | (20,022) |  |  | (20,022) |
Non-recurring: |  |  |  |  |  |  |  |  |  |
Vessels and equipment |  | Level 2 |  | — |  |  | — |  |  | 40,717 |  |  | 40,717 |
Other: |  |  |  |  |  |  |  |  |  |
Loans to equity-accounted joint ventures (note 7) |  | (i) |  | 106,301 |  |  | (i) |  | 116,632 |  |  | (i)
Long-term debt – public (note 8) |  | Level 1 |  | (346,246) |  |  | (354,519) |  |  | (352,260) |  |  | (359,581) |
Long-term debt – non-public (note 8) |  | Level 2 |  | (1,039,446) |  |  | (1,061,418) |  |  | (1,119,953) |  |  | (1,137,050) |
Obligations related to finance leases (note 5a) |  | Level 2 |  | (1,287,044) |  |  | (1,363,615) |  |  | (1,340,922) |  |  | (1,456,927) |
(i)The advances to equity-accounted joint ventures together with the Partnership’s equity investments in the joint ventures form the net aggregate carrying value of the Partnership’s interests in the joint ventures in these unaudited consolidated financial statements. The fair values of the individual components of such aggregate interests are not determinable. b) Credit Losses For a description of the Partnership's exposure to potential credit losses under ASC 326, see Item 18 – Financial Statements: Note 3b to the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year ended December 31, 2020. The following table includes the amortized cost basis of the Partnership’s direct interests in financing receivables and net investment in direct financing leases by class of financing receivables and by period of origination and their associated credit quality as at September 30, 2021 and December 31, 2020.
|  | Amortized Cost Basis by Origination Year |
|  | Credit Quality Grade (1) |  | 2020 |  | 2018 |  | 2016 and prior |  | Total
As at September 30, 2021 |  |  | $ |  | $ |  | $ |  | $
Direct financing leases |  |  |  |  |  |  |  |  |  |
Tangguh Hiri and Tangguh Sago |  | Performing |  | — |  | — |  | 322,949 |  | 322,949
Bahrain Spirit |  | Performing |  | — |  | 210,190 |  | — |  | 210,190
|  |  |  | — |  | 210,190 |  | 322,949 |  | 533,139
Loans to equity-accounted joint ventures |  |  |  |  |  |  |  |  |  |
Exmar LPG Joint Venture |  | Performing |  | — |  | — |  | 32,266 |  | 32,266
Bahrain LNG Joint Venture |  | Performing |  | — |  | — |  | 73,375 |  | 73,375
Other |  | Performing |  | 660 |  | — |  | — |  | 660
|  |  |  | 660 |  | — |  | 105,641 |  | 106,301
|  |  |  | 660 |  | 210,190 |  | 428,590 |  | 639,440
As at December 31, 2020 |  |  |  |  |  |  |  |  |  |
Direct financing leases |  |  |  |  |  |  |  |  |  |
Tangguh Hiri and Tangguh Sago |  | Performing |  | — |  | — |  | 332,308 |  | 332,308
Bahrain Spirit |  | Performing |  | — |  | 211,939 |  | — |  | 211,939
|  |  |  | — |  | 211,939 |  | 332,308 |  | 544,247
Loans to equity-accounted joint ventures |  |  |  |  |  |  |  |  |  |
Exmar LPG Joint Venture |  | Performing |  | — |  | — |  | 42,266 |  | 42,266
Bahrain LNG Joint Venture |  | Performing |  | — |  | — |  | 73,375 |  | 73,375
Other |  | Performing |  | 991 |  | — |  | — |  | 991
|  |  |  | 991 |  | — |  | 115,641 |  | 116,632
|  |  |  | 991 |  | 211,939 |  | 447,949 |  | 660,879
(1)For a description of how the Partnership's credit quality grades are determined see Item 18 – Financial Statements: Note 3b to the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year ended December 31, 2020. As at September 30, 2021 and December 31, 2020, all direct financing and sales-type leases held by the Partnership and the Partnership’s equity-accounted joint ventures had a credit quality grade of performing. Changes in the Partnership's allowance for credit losses for the three and nine months ended September 30, 2021 and 2020 are as follows:
| Direct Financing Leases (1) (2) $ |  | Direct Financing and Sales-Type Leases and Other within Equity-Accounted Joint Ventures (1) (2) $ |  | Loans to Equity-Accounted Joint Ventures (1) $ |  | Guarantees of Debt (1) $ |  | Total $
Three and Nine Months Ended September 30, 2021 |  |  |  |  |  |  |  |  |
As at December 31, 2020 | 30,177 |  | 54,937 |  | 4,726 |  | 2,080 |  | 91,920
Provision for (reversal of) potential credit losses | 4,436 |  | 6,677 |  | (981) |  | 218 |  | 10,350
As at March 31, 2021 | 34,613 |  | 61,614 |  | 3,745 |  | 2,298 |  | 102,270
Provision for (reversal of) potential credit losses | 787 |  | 722 |  | 255 |  | (298) |  | 1,466
As at June 30, 2021 | 35,400 |  | 62,336 |  | 4,000 |  | 2,000 |  | 103,736
(Reversal of) provision for potential credit losses | (1,400) |  | (1,736) |  | 300 |  | (200) |  | (3,036)
As at September 30, 2021 | 34,000 |  | 60,600 |  | 4,300 |  | 1,800 |  | 100,700
Three and Nine Months Ended September 30, 2020 |  |  |  |  |  |  |  |  |
As at January 1, 2020 | 11,155 |  | 36,292 |  | 3,714 |  | 2,139 |  | 53,300
(Reversal of) provision for potential credit losses | (100) |  | 8,980 |  | — |  | — |  | 8,880
As at March 31, 2020 | 11,055 |  | 45,272 |  | 3,714 |  | 2,139 |  | 62,180
Provision for (reversal of) potential credit losses | 465 |  | (423) |  | 83 |  | (288) |  | (163)
As at June 30, 2020 | 11,520 |  | 44,849 |  | 3,797 |  | 1,851 |  | 62,017
Provision for (reversal of) potential credit losses | 13,805 |  | 7,099 |  | 877 |  | (285) |  | 21,496
As at September 30, 2020 | 25,325 |  | 51,948 |  | 4,674 |  | 1,566 |  | 83,513
(1)For a description of how the credit loss provision for direct financing leases, direct financing and sales-type leases and other within equity-accounted joint ventures, loans to equity-accounted joint ventures and guarantees of debt was determined for the three and nine months ended September 30, 2021 and 2020, see Item 18 – Financial Statements: Note 3b to the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year ended December 31, 2020. (2)The change in credit loss provision of $(1.4) million and $3.8 million for the Partnership's consolidated vessels for the three and nine months ended September 30, 2021, respectively ($13.8 million and $14.2 million for the three and nine months ended September 30, 2020, respectively), was included in other expense in the Partnership's consolidated statements of income. The change in the credit loss provision for the nine months ended September 30, 2021 primarily reflects a decline in the estimated charter-free valuations for certain types of its liquefied natural gas (or LNG) carriers at the end of their time-charter contract which are accounted for as direct financing leases. These estimated future charter-free values are subject to change based on the underlying LNG shipping market fundamentals and it is possible that these estimates could vary by material amounts in future periods. The change in credit loss provision of $(1.7) million and $5.7 million for the three and nine months ended September 30, 2021, respectively ($7.1 million and $15.7 million for the three and nine months ended September 30, 2020, respectively), relating to the direct financing and sales-type leases and other within the Partnership's equity-accounted joint ventures was included in equity income in the Partnership's consolidated statements of income. The change in credit loss provision for the nine months ended September 30, 2021 primarily reflects a decline in the estimated charter-free valuations for certain types of LNG carriers at the end of their time-charter contract, which are accounted for as direct financing and sales-type leases. The changes in the credit loss provision for the Partnership's consolidated vessels and the vessels within the Partnership's equity-accounted joint ventures for the nine months ended September 30, 2021 do not reflect any material change in expectations of the charterers' ability to make their time-charter hire payments as they come due compared to the beginning of the year.
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring | a) Fair Value Measurements For a description of how the Partnership estimates fair value and for a description of the fair value hierarchy levels, see Item 18 – Financial Statements: Note 3 to the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year ended December 31, 2020. The following table includes the estimated fair value and carrying value of those assets and liabilities that are measured at fair value on a recurring and non-recurring basis, as well as the estimated fair value of the Partnership’s financial instruments that are not accounted for at fair value on a recurring basis.
|  |  |  | September 30, 2021 |  | December 31, 2020
|  | Fair Value Hierarchy Level |  | Carrying Amount Asset (Liability) $ |  | Fair Value Asset (Liability) $ |  | Carrying Amount Asset (Liability) $ |  | Fair Value Asset (Liability) $
Recurring: |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents and restricted cash (note 15) |  | Level 1 |  | 155,627 |  |  | 155,627 |  |  | 257,943 |  |  | 257,943 |
Derivative instruments (note 11) |  |  |  |  |  |  |  |  |  |
Interest rate swap agreements – assets |  | Level 2 |  | 1,823 |  |  | 1,823 |  |  | — |  |  | — |
Interest rate swap agreements – liabilities |  | Level 2 |  | (35,401) |  |  | (35,401) |  |  | (75,468) |  |  | (75,468) |
Cross currency swap agreements – assets |  | Level 2 |  | 3,895 |  |  | 3,895 |  |  | 4,505 |  |  | 4,505 |
Cross currency swap agreements – liabilities |  | Level 2 |  | (20,537) |  |  | (20,537) |  |  | (20,022) |  |  | (20,022) |
Non-recurring: |  |  |  |  |  |  |  |  |  |
Vessels and equipment |  | Level 2 |  | — |  |  | — |  |  | 40,717 |  |  | 40,717 |
Other: |  |  |  |  |  |  |  |  |  |
Loans to equity-accounted joint ventures (note 7) |  | (i) |  | 106,301 |  |  | (i) |  | 116,632 |  |  | (i)
Long-term debt – public (note 8) |  | Level 1 |  | (346,246) |  |  | (354,519) |  |  | (352,260) |  |  | (359,581) |
Long-term debt – non-public (note 8) |  | Level 2 |  | (1,039,446) |  |  | (1,061,418) |  |  | (1,119,953) |  |  | (1,137,050) |
Obligations related to finance leases (note 5a) |  | Level 2 |  | (1,287,044) |  |  | (1,363,615) |  |  | (1,340,922) |  |  | (1,456,927) |
(i)The advances to equity-accounted joint ventures together with the Partnership’s equity investments in the joint ventures form the net aggregate carrying value of the Partnership’s interests in the joint ventures in these unaudited consolidated financial statements. The fair values of the individual components of such aggregate interests are not determinable.
Credit Loss, Financial Instrument | b) Credit Losses For a description of the Partnership's exposure to potential credit losses under ASC 326, see Item 18 – Financial Statements: Note 3b to the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year ended December 31, 2020. The following table includes the amortized cost basis of the Partnership’s direct interests in financing receivables and net investment in direct financing leases by class of financing receivables and by period of origination and their associated credit quality as at September 30, 2021 and December 31, 2020.
|  | Amortized Cost Basis by Origination Year |
|  | Credit Quality Grade (1) |  | 2020 |  | 2018 |  | 2016 and prior |  | Total
As at September 30, 2021 |  |  | $ |  | $ |  | $ |  | $
Direct financing leases |  |  |  |  |  |  |  |  |  |
Tangguh Hiri and Tangguh Sago |  | Performing |  | — |  | — |  | 322,949 |  | 322,949
Bahrain Spirit |  | Performing |  | — |  | 210,190 |  | — |  | 210,190
|  |  |  | — |  | 210,190 |  | 322,949 |  | 533,139
Loans to equity-accounted joint ventures |  |  |  |  |  |  |  |  |  |
Exmar LPG Joint Venture |  | Performing |  | — |  | — |  | 32,266 |  | 32,266
Bahrain LNG Joint Venture |  | Performing |  | — |  | — |  | 73,375 |  | 73,375
Other |  | Performing |  | 660 |  | — |  | — |  | 660
|  |  |  | 660 |  | — |  | 105,641 |  | 106,301
|  |  |  | 660 |  | 210,190 |  | 428,590 |  | 639,440
As at December 31, 2020 |  |  |  |  |  |  |  |  |  |
Direct financing leases |  |  |  |  |  |  |  |  |  |
Tangguh Hiri and Tangguh Sago |  | Performing |  | — |  | — |  | 332,308 |  | 332,308
Bahrain Spirit |  | Performing |  | — |  | 211,939 |  | — |  | 211,939
|  |  |  | — |  | 211,939 |  | 332,308 |  | 544,247
Loans to equity-accounted joint ventures |  |  |  |  |  |  |  |  |  |
Exmar LPG Joint Venture |  | Performing |  | — |  | — |  | 42,266 |  | 42,266
Bahrain LNG Joint Venture |  | Performing |  | — |  | — |  | 73,375 |  | 73,375
Other |  | Performing |  | 991 |  | — |  | — |  | 991
|  |  |  | 991 |  | — |  | 115,641 |  | 116,632
|  |  |  | 991 |  | 211,939 |  | 447,949 |  | 660,879
(1)For a description of how the Partnership's credit quality grades are determined see Item 18 – Financial Statements: Note 3b to the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year ended December 31, 2020. As at September 30, 2021 and December 31, 2020, all direct financing and sales-type leases held by the Partnership and the Partnership’s equity-accounted joint ventures had a credit quality grade of performing. Changes in the Partnership's allowance for credit losses for the three and nine months ended September 30, 2021 and 2020 are as follows:
| Direct Financing Leases (1) (2) $ |  | Direct Financing and Sales-Type Leases and Other within Equity-Accounted Joint Ventures (1) (2) $ |  | Loans to Equity-Accounted Joint Ventures (1) $ |  | Guarantees of Debt (1) $ |  | Total $
Three and Nine Months Ended September 30, 2021 |  |  |  |  |  |  |  |  |
As at December 31, 2020 | 30,177 |  | 54,937 |  | 4,726 |  | 2,080 |  | 91,920
Provision for (reversal of) potential credit losses | 4,436 |  | 6,677 |  | (981) |  | 218 |  | 10,350
As at March 31, 2021 | 34,613 |  | 61,614 |  | 3,745 |  | 2,298 |  | 102,270
Provision for (reversal of) potential credit losses | 787 |  | 722 |  | 255 |  | (298) |  | 1,466
As at June 30, 2021 | 35,400 |  | 62,336 |  | 4,000 |  | 2,000 |  | 103,736
(Reversal of) provision for potential credit losses | (1,400) |  | (1,736) |  | 300 |  | (200) |  | (3,036)
As at September 30, 2021 | 34,000 |  | 60,600 |  | 4,300 |  | 1,800 |  | 100,700
Three and Nine Months Ended September 30, 2020 |  |  |  |  |  |  |  |  |
As at January 1, 2020 | 11,155 |  | 36,292 |  | 3,714 |  | 2,139 |  | 53,300
(Reversal of) provision for potential credit losses | (100) |  | 8,980 |  | — |  | — |  | 8,880
As at March 31, 2020 | 11,055 |  | 45,272 |  | 3,714 |  | 2,139 |  | 62,180
Provision for (reversal of) potential credit losses | 465 |  | (423) |  | 83 |  | (288) |  | (163)
As at June 30, 2020 | 11,520 |  | 44,849 |  | 3,797 |  | 1,851 |  | 62,017
Provision for (reversal of) potential credit losses | 13,805 |  | 7,099 |  | 877 |  | (285) |  | 21,496
As at September 30, 2020 | 25,325 |  | 51,948 |  | 4,674 |  | 1,566 |  | 83,513
(1)For a description of how the credit loss provision for direct financing leases, direct financing and sales-type leases and other within equity-accounted joint ventures, loans to equity-accounted joint ventures and guarantees of debt was determined for the three and nine months ended September 30, 2021 and 2020, see Item 18 – Financial Statements: Note 3b to the Partnership’s audited consolidated financial statements filed with its Annual Report on Form 20-F for the year ended December 31, 2020. (2)The change in credit loss provision of $(1.4) million and $3.8 million for the Partnership's consolidated vessels for the three and nine months ended September 30, 2021, respectively ($13.8 million and $14.2 million for the three and nine months ended September 30, 2020, respectively), was included in other expense in the Partnership's consolidated statements of income. The change in the credit loss provision for the nine months ended September 30, 2021 primarily reflects a decline in the estimated charter-free valuations for certain types of its liquefied natural gas (or LNG) carriers at the end of their time-charter contract which are accounted for as direct financing leases. These estimated future charter-free values are subject to change based on the underlying LNG shipping market fundamentals and it is possible that these estimates could vary by material amounts in future periods. The change in credit loss provision of $(1.7) million and $5.7 million for the three and nine months ended September 30, 2021, respectively ($7.1 million and $15.7 million for the three and nine months ended September 30, 2020, respectively), relating to the direct financing and sales-type leases and other within the Partnership's equity-accounted joint ventures was included in equity income in the Partnership's consolidated statements of income. The change in credit loss provision for the nine months ended September 30, 2021 primarily reflects a decline in the estimated charter-free valuations for certain types of LNG carriers at the end of their time-charter contract, which are accounted for as direct financing and sales-type leases. The changes in the credit loss provision for the Partnership's consolidated vessels and the vessels within the Partnership's equity-accounted joint ventures for the nine months ended September 30, 2021 do not reflect any material change in expectations of the charterers' ability to make their time-charter hire payments as they come due compared to the beginning of the year.

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- Definition The entire disclosure for credit loss on financial instrument measured at amortized cost basis, net investment in lease, off-balance sheet credit exposure, and available-for-sale debt security. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 30 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=124269663&loc=SL82922895-210455 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=124255953&loc=SL82919272-210447 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=124255953&loc=SL82919236-210447 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 20 -URI http://asc.fasb.org/extlink&oid=124255953&loc=SL82919269-210447 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 30 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=124269663&loc=SL82922888-210455 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=124255953&loc=SL82919244-210447 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=124255953&loc=SL82919230-210447 + Details
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- Definition The entire disclosure of the fair value measurement of assets and liabilities, which includes financial instruments measured at fair value that are classified in shareholders' equity, which may be measured on a recurring or nonrecurring basis. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -URI http://asc.fasb.org/topic&trid=2155941 + Details
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- Definition The entire disclosure for financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References No definition available. + Details
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