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Equity Accounted Investments | 12 Months Ended
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Dec. 31, 2011
Equity Accounted Investments [Abstract] |
Equity Accounted Investments |
23. | Equity Accounted Investments
The Company has joint venture interests of 33%, 40%, and 50%, respectively, in the Angola LNG Project (see Note 16b), Ikdam Production, and SkaugenPetroTrans. The Wah Kwong Joint Venture is a joint venture arrangement between Teekay Tankers and Wah Kwong whereby Teekay Tankers holds a 50% interest (see Note 16b). The RasGas 3 Joint Venture is a joint venture arrangement between Teekay LNG and QGTC 3 whereby Teekay LNG holds a 40% interest. The RasGas 3 Joint Venture owns four LNG carriers and related long-term fixed-rate time-charters to service the expansion of a LNG project in Qatar. In November 2011, Teekay acquired a 40% interest in a recapitalized Sevan for approximately $25 million (see Note 3). Sevan owns (i) two partially-completed hulls (#4 and #5) available for upgrade to FPSOs or other offshore projects; (ii) a licensing agreement with ENI SpA; (iii) an engineering and offshore project development business; and (iv) intellectual property rights, including offshore unit design patents. As at November 30, 2011, the fair value of the Company’s interest in Sevan was determined to be $49.2 million. The difference between the fair value of the Company’s 40% interest in Sevan and the price paid has been recognized as a bargain purchase gain in the Company’s consolidated statements of income (loss). As of February 28, 2012, the aggregate value of the Company’s 40% interest in Sevan, based on the quoted market price of Sevan’s common stock on the Oslo Stock Exchange was $46.5 million. In November 2010, Teekay LNG acquired a 50% interest in companies that own two LNG carriers (collectively, the Exmar Joint Venture) from Exmar NV for a total equity purchase price of approximately $72.5 million (net of assumed debt). Teekay LNG financed $37.3 million of the purchase price by issuing to Exmar NV 1.1 million new common units with the balance financed by drawing on one of Teekay LNG’s revolving credit facilities. As part of the transaction, Teekay LNG agreed to guarantee 50% of the $206 million of debt secured by the Exmar Joint Venture. Exmar NV retains a 50% ownership interest in the Exmar Joint Venture. The two vessels acquired are the 2002-built Excalibur, a conventional LNG carrier, and the 2005-built Excelsior, a specialized gas carrier which can both transport and regasify LNG onboard. Both vessels are on long-term, fixed-rate charter contracts to Excelerate Energy LP for firm periods until 2022 and 2025, respectively. A condensed summary of the Company’s investments in and advances to equity accounted investments are as follows (in thousands of dollars, except percentages):
Investments in Equity Accounted Investments |  | Ownership Percentage |  |  | December 31, 2011 |  |  | December 31, 2010 |
RasGas 3 Joint Venture |  |  | 40% |  |  |  | 97,423 |  |  |  | 98,207 |
Exmar Joint Venture |  |  | 50% |  |  |  | 81,242 |  |  |  | 74,504 |
Angola Joint Venture |  |  | 33% |  |  |  | 16,063 |  |  |  | — |
SkaugenPetroTrans Joint Venture |  |  | 50% |  |  |  | 9,623 |  |  |  | 32,721 |
Sevan Marine Equity Investment |  |  | 40% |  |  |  | 46,998 |  |  |  | — |
Other |  |  | 40% to 50% |  |  |  | 1,288 |  |  |  | 2,201 |
Total |  |  |  |  |  |  | 252,637 |  |  |  | 207,633 |
Loans to Equity Accounted Investees |  | Ownership Percentage |  |  | December 31, 2011 |  |  | December 31, 2010 |
Wah Kwong Joint Venture |  |  | 50 | % |  |  | 9,830 |  |  |  | 9,830 |
Ikdam Production Joint Venture |  |  | 40 | % |  |  | 538 |  |  |  | 3,116 |
SkaugenPetroTrans Joint Venture |  |  | 50 | % |  |  | 5,000 |  |  |  | — |
Sevan Marine Equity Investment |  |  | 40 | % |  |  | 50,000 |  |  |  | — |
Total |  |  |  |  |  |  | 65,368 |  |  |  | 12,946 |
A condensed summary of the Company’s financial information for equity accounted investments (33% to 50% owned) shown on a 100% basis are as follows:
|  | December 31, |  |  | December 31, |
|  | 2011 |  |  | 2010 |
Current assets |  |  | 281,933 |  |  |  | 135,087 |
Non-current assets |  |  | 2,545,518 |  |  |  | 1,867,161 |
Current liabilities |  |  | 252,439 |  |  |  | 106,858 |
Non-current liabilities |  |  | 2,118,550 |  |  |  | 1,507,800 |
|  | Year Ended December 31, 2011 |  |  | Year Ended December 31, 2010 |  |  | Year Ended December 31, 2009 |
Revenues |  |  | 333,020 |  |  |  | 232,516 |  |  |  | 238,838 |
Income from vessel operations |  |  | 134,617 |  |  |  | 91,290 |  |  |  | 97,708 |
Net (loss) income |  |  | (48,732 | ) |  |  | (44,794 | ) |  |  | 136,444 |
For the year ended December 31, 2011, the Company recorded equity (loss) income of $(35.3) million (2010—$(11.3) million and 2009—$52.5 million). The income or loss was primarily comprised of the Company’s share of net (loss) income from the Angola LNG Project, the RasGas 3 Joint Venture, and from the Exmar Joint Venture. For the year ended December 31, 2011, $(35.2) million of the equity (loss) gain related to the Company’s share of unrealized (loss) gain on interest rate swaps associated with these projects (2010—$(26.3) million and 2009—$32.4 million).

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- Definition The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6382943&loc=d3e33918-111571 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6903645&loc=d3e32787-111569 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 18 -Paragraph 20 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.12) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6903645&loc=d3e32847-111569 + Details
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