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Derivative Instruments | 9 Months Ended
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Sep. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments | Derivative Instruments Interest rate swap agreements The Company uses derivatives in accordance with its overall risk management policies. The Company enters into interest rate swap agreements which exchange a receipt of floating interest for a payment of fixed interest to reduce the Company’s exposure to interest rate variability on its outstanding floating-rate debt. The Company has not designated, for accounting purposes, its interest rate swaps as cash flow hedges of its U.S. Dollar LIBOR-denominated borrowings. As at September 30, 2018, the Company was committed to the following interest rate swap agreements:
| Interest Rate |  | Notional Amount |  | Fair Value / Carrying Amount of Asset |  | Remaining Term |  | Fixed Interest Rate
| Index |  | $ |  | $ |  | (years) |  | (%) (1)
LIBOR-Based Debt: |  |  |  |  |  |  |  |  |  |  |
U.S. Dollar-denominated interest rate swaps (2) | LIBOR |  | 104,133 |  |  |  | 1,770 |  |  |  | 2.3 |  | 1.46
U.S. Dollar-denominated interest rate swaps | LIBOR |  | 150,000 |  |  |  | 4,720 |  |  |  | 2.3 |  | 1.55
U.S. Dollar-denominated interest rate swaps | LIBOR |  | 50,000 |  |  |  | 2,014 |  |  |  | 2.3 |  | 1.16
(1) | Excludes the margin the Company pays on its variable-rate debt, which, as of September 30, 2018, ranged from 0.30% to 2.75%.
(2) | Notional amount reduces quarterly.
The Company is potentially exposed to credit loss in the event of non-performance by the counterparty to the interest rate swap agreements in the event that the fair value results in an asset being recorded. In order to minimize counterparty risk, the Company only enters into interest rate swap agreements with counterparties that are rated A– or better by Standard & Poor’s or A3 or better by Moody’s at the time transactions are entered into. Stock purchase warrant During 2017, the Company had one stock purchase warrant, which had entitled it to purchase up to 750,000 shares of common stock of TIL at certain conditions at pre-determined prices. The stock purchase warrant was not exercised and was canceled upon completion of the TIL merger in November 2017 (notes 6 and 18). Time-charter swap agreement Effective June 1, 2016, the Company entered into a time-charter swap agreement for 55% of two Aframax equivalent vessels. Under such agreement, the Company received $27,776 per day, less a 1.25% brokerage commission, and paid 55% of the net revenue distribution of two Aframax equivalent vessels employed in the Company’s Aframax RSA, less $500 per day, for a period of 11 months plus an additional two months at the counterparty’s option. The purpose of the agreement was to reduce the Company’s exposure to spot tanker market rate variability for certain of its vessels that are employed in the Aframax RSA. The Company did not designate, for accounting purposes, the time-charter swap as a cash flow hedge. As of May 1, 2017, the time-charter swap counter-party did not exercise the two-month option and as such, the agreement was completed as of June 30, 2017. Forward freight agreements The Company uses forward freight agreements (or FFAs) in non-hedge-related transactions to increase or decrease its exposure to spot market rates, within defined limits. Net gains and losses from FFAs are recorded within realized and unrealized gain (loss) on derivative instruments in the Company's consolidated statements of loss. The following table presents the location and fair value amounts of derivative instruments, segregated by type of contract, on the Company’s consolidated balance sheets.
| Current portion of derivative assets |  | Derivative assets |  | Accounts receivables (Accrued liabilities)
| $ |  | $ |  | $
As at September 30, 2018 |  |  |  |  |
Interest rate swap agreements | 2,973 |  |  | 5,531 |  |  | 394 |
Forward freight agreements | 102 |  |  | — |  |  | (4 | )
| 3,075 |  |  | 5,531 |  |  | 390 |
As at December 31, 2017 |  |  |  |  |
Interest rate swap agreements | 1,016 |  |  | 4,226 |  |  | (39 | )
| 1,016 |  |  | 4,226 |  |  | (39 | )
Realized and unrealized gains (losses) relating to the interest rate swaps, stock purchase warrant, time-charter swap and forward freight agreements are recognized in earnings and reported in realized and unrealized gain (loss) on derivative instruments in the Company’s consolidated statements of loss as follows:
| Three Months Ended |  | Three Months Ended
| September 30, 2018 |  | September 30, 2017
| Realized gains (losses) | Unrealized gains (losses) | Total |  | Realized (losses) gains | Unrealized gains (losses) | Total
| $ | $ | $ |  | $ | $ | $
Interest rate swap agreements | 711 |  | 13 |  | 724 |  |  | (154 | ) | 401 |  | 247 |
Forward freight agreements | (119 | ) | (9 | ) | (128 | ) |  | 234 |  | (91 | ) | 143 |
| 592 |  | 4 |  | 596 |  |  | 80 |  | 310 |  | 390 |
| Nine Months Ended |  | Nine Months Ended
| September 30, 2018 |  | September 30, 2017
| Realized gains (losses) | Unrealized gains | Total |  | Realized (losses) gains | Unrealized gains (losses) | Total
| $ | $ | $ |  | $ | $ | $
Interest rate swap agreements | 1,575 |  | 3,262 |  | 4,837 |  |  | (894 | ) | 2 |  | (892 | )
Stock purchase warrant | — |  | — |  | — |  |  | — |  | (287 | ) | (287 | )
Time-charter swap agreement | — |  | — |  | — |  |  | 1,106 |  | (875 | ) | 231 |
Forward freight agreements | (137 | ) | 25 |  | (112 | ) |  | 347 |  | (108 | ) | 239 |
| 1,438 |  | 3,287 |  | 4,725 |  |  | 559 |  | (1,268 | ) | (709 | )

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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