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Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2011

Derivative Instruments and Hedging Activities [Abstract]

Commitment of foreign currency forward contracts

										Fair Value / Carrying Amount
										of Asset / (Liability)								Expected Maturity
		Contract Amount In Foreign Currency				Average Forward				Hedge				Non-Hedge				2012				2013
		(millions)				Rate (1)				(in millions of U.S. Dollars)
Norwegian Kroner			1,044.5				6.00			$	0.6			($	1.6	)		$	141.3			$	32.8
Euro			34.6				0.74				—				(1.7	)			40.9				5.8
Canadian Dollar			36.8				1.01				(0.2	)			(0.3	)			31.8				4.6
British Pounds			34.5				0.64				(0.3	)			(0.9	)			46.5				7.8
										$	0.1			($	4.5	)		$	260.5			$	51.0

(1) Average contractual exchange rate represents the contracted amount of foreign currency one U.S. Dollar will buy.

Interest rate swap agreements

		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			423,748				(119,895	)			25.1				4.9
U.S. Dollar-denominated interest rate swaps		LIBOR			3,766,809				(561,747	)			8.4				3.8
LIBOR-Based Restricted Cash Deposit:
U.S. Dollar-denominated interest rate swaps (2)		LIBOR			470,199				159,603				25.1				4.8
EURIBOR-Based Debt:
Euro-denominated interest rate swaps (3) (4)		EURIBOR			348,905				(25,795	)			12.5				3.1
					5,009,661				(547,834	)

(1) Excludes the margins the Company pays on its variable-rate debt, which as of December 31, 2011 ranged from 0.30% to 3.25%.

(2) Principal amount reduces quarterly.

(3) Principal amount reduces monthly to 70.1 million Euros ($90.9 million) by the maturity dates of the swap agreements.

(4) Principal amount is the U.S. Dollar equivalent of 269.2 million Euros.

Location and fair value amounts of derivative instruments

		Current Portion of Derivative Assets				Derivative Assets				Accrued Liabilities				Current Portion of Derivative Liabilities				Derivative Liabilities
As at December 31, 2011:
Derivatives designated as a cash flow hedge:
Foreign currency contracts			1,551				28				—				(1,192	)			(264	)
Derivatives not designated as a cash flow hedge:
Foreign currency contracts			2,592				3				—				(6,248	)			(832	)
Interest rate swap agreements			15,608				139,651				(24,750	)			(109,897	)			(568,446	)
Cross currency swap			1,576				875				225				—				—
Foinaven embedded derivative (note 10)			3,385				—				—				—				—
			24,712				140,557				(24,525	)			(117,337	)			(569,542	)
As at December 31, 2010:
Derivatives designated as a cash flow hedge:
Foreign currency contracts			3,437				1,546				—				(652	)			22
Derivatives not designated as a cash flow hedge:
Foreign currency contracts			4,988				3,172				—				(1,050	)			(88	)
Interest rate swap agreements			16,759				45,524				(31,174	)			(135,171	)			(387,058	)
Forward freight agreements			2,031				2,003				199				—				—
Foinaven embedded derivative			—				3,738				—				(7,238	)			—
			27,215				55,983				(30,975	)			(144,111	)			(387,124	)

Effective portion of gains (losses) on foreign currency contracts

Year Ended December 31, 2011												Year Ended December 31, 2010
Balance Sheet (AOCI)		Statement of Income (Loss)										Balance Sheet (AOCI)				Statement of Income (Loss)
Effective Portion		Effective Portion				Ineffective Portion						Effective Portion				Effective Portion				Ineffective Portion
2,007			918				(568	)		Vessel operating expenses			(3,559	)			(680	)			(3,473	)		Vessel operating expenses
			4,636				(223	)		General and administrative expenses							(2,360	)			(1,402	)		General and administrative expenses
2,007			5,554				(791	)					(3,559	)			(3,040	)			(4,875	)

Effect of (loss) gain on derivatives not designated as hedging instruments

		Year Ended				Year Ended				Year Ended
		December 31,				December 31,				December 31,
		2011				2010				2009
		$				$				$
Realized (losses) gains relating to:
Interest rate swap agreements			(132,931	)			(154,098	)			(127,936	)
Interest rate swap amendments and terminations			(149,666	)			—				—
Foreign currency forward contracts			9,965				(2,274	)			(8,984	)
Forward freight agreements, bunker fuel swap contracts and other			36				(7,914	)			(1,293	)
			(272,596	)			(164,286	)			(138,213	)
Unrealized (losses) gains relating to:
Interest rate swap agreements			(58,405	)			(146,780	)			258,710
Foreign currency forward contracts			(11,399	)			6,307				14,797
Forward freight agreements and bunker fuel swap contracts			—				(108	)			4,167
Foinaven embedded derivative			(322	)			5,269				585
			(70,126	)			(135,312	)			278,259
Total realized and unrealized (losses) gains on non-designated derivative instruments			(342,722	)			(299,598	)			140,046

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Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

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-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.



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Tabular disclosure of the presentation of foreign exchange contracts on the statement of financial position, including the fair value amounts and location of such amounts.

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Tabular disclosure of interest rate derivatives, including, but not limited to, the fair value of the derivatives, statement of financial position location, and statement of financial performance location of these instruments.

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Tabular disclosure for other derivative instruments not designated as hedging instruments of (a) the location and amount of gains and losses reported in the statement of financial performance and (b) the location and fair value amounts of the instruments reported in the statement of financial position.

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