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Equity Accounted Investments | 12 Months Ended
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Dec. 31, 2013
Equity Method Investments And Joint Ventures [Abstract] |
Equity Accounted Investments |
23. | Equity Accounted Investments
In June 2013, Teekay Offshore completed the acquisition from Teekay of its 50% interest in a FPSO unit, the Cidade de Itajai (or Itajai), The Itajai FPSO has been operating on the Baúna and Piracaba (previously named Tiro and Sidon) fields in the Santos Basin offshore Brazil since February 2013 under a nine-year fixed-rate time-charter contract, plus extension options, with Petrobras. The remaining 50% interest in the Itajai FPSO unit is owned by Brazilian-based Odebrecht Oil & Gas S.A. (a member of the Odebrecht group) (or Odebrecht). In February 2013, Teekay LNG entered into a joint venture agreement with Exmar to own and charter-in LPG carriers with a primary focus on the mid-size gas carrier segment. Exmar LPG BVBA, took economic effect as of November 1, 2012 and, as of December 31, 2013, included 23 owned LPG carriers (including 12 newbuilding carriers scheduled for delivery between 2014 and 2018) and five chartered-in LPG carriers. Teekay LNG and Exmar each have a 50% economic interest in Exmar LPG BVBA. Since control of the Exmar LPG BVBA is shared jointly between Exmar and Teekay LNG, Teekay LNG accounts for its investment in the Exmar LPG BVBA using the equity method (see note 3b). In February 2012, the Teekay LNG-Marubeni Joint Venture acquired a 100% interest in the six LNG Carriers from Denmark-based A.P. Moller-Maersk A/S for approximately $1.3 billion. Teekay LNG and Marubeni Corporation (or Marubeni) have 52% and 48% economic interests, respectively, but share control of Teekay LNG-Marubeni Joint Venture. Since control of the Teekay LNG-Marubeni Joint Venture is shared jointly between Marubeni and Teekay LNG, Teekay LNG accounts for its investment in the Teekay LNG-Marubeni Joint Venture using the equity method (see note 3c). Teekay LNG has a 33% ownership interest in four newbuilding 160,400-cubic meter LNG carriers (or the Angola LNG Carriers). The Angola LNG Carriers are chartered at fixed rates to the Angola LNG Project. The Wah Kwong Joint Venture is a joint venture arrangement between Teekay Tankers and Wah Kwong whereby Teekay Tankers holds a 50% interest. SkaugenPetrotrans Joint Venture is a joint venture arrangement between Teekay and I.M. Skaugen Marine Services Pte Ltd. whereby Teekay holds a 50% interest. Teekay has a joint venture interest of 49% in Remora AS (or Remora) a Norway-based offshore marine technology company, from which Teekay Offshore acquired a 2010-built HiLoad Dynamic Positioning (or DP) unit. 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. Teekay LNG has a 50% interest in a joint venture with Exmar (or the Excalibur and Excelsior Joint Ventures) which owns two LNG carriers that are chartered out under long term contracts. In November 2011, Teekay acquired a 40% interest in a recapitalized Sevan for approximately $25 million (see Note 3a). Sevan owns (i) two partially-completed hulls 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 $37.1 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 December 31, 2013, the aggregate value of the Company’s 43% interest (43% interest —December 31, 2012) in Sevan, based on the quoted market price of Sevan’s common stock on the Oslo Stock Exchange was $94.3 million ($83.1 million – December 31, 2012). A condensed summary of the Company’s investments in and advances to equity accounted investments are as follows (in thousands of U.S. dollars, except percentages):
|  |  |  | As at December 31, |
Investments in Equity Accounted Investments |  | Ownership Percentage |  | 2013 $ |  |  | 2012 $ |
Teekay LNG-Marubeni Joint Venture (note 3b) |  | 52% |  |  | 228,183 |  |  |  | 183,724 |
RasGas 3 Joint Venture |  | 40% |  |  | 125,648 |  |  |  | 107,386 |
Exmar Joint Venture |  | 50% |  |  | 86,387 |  |  |  | 82,737 |
Exmar LPG Joint Venture |  | 50% |  |  | 82,576 |  |  |  | — |
Angola Joint Venture (note 3a) |  | 33% |  |  | 54,168 |  |  |  | 28,699 |
Tiro and Sidon Joint Venture |  | 50% |  |  | 52,118 |  |  |  | 30,024 |
Sevan Marine Equity Investment |  | 43% |  |  | 40,740 |  |  |  | 39,223 |
Other |  | 33% - 50% |  |  | 20,489 |  |  |  | 8,250 |
Total |  |  |  |  | 690,309 |  |  |  | 480,043 |
|  | Ownership Percentage |  | As at December 31, |
Loans to Equity Accounted Investees |  |  | 2013 |  |  | 2012 |
Sevan Marine Equity Investment |  | 43% |  |  | — |  |  |  | 133,000 |
Exmar LPG Joint Venture |  | 50% |  |  | 82,068 |  |  |  | — |
Tiro and Sidon Joint Venture |  | 50% |  |  | 12,781 |  |  |  | 18,121 |
SkaugenPetroTrans Joint Venture |  | 50% |  |  | 16,079 |  |  |  | 9,500 |
Other |  | 33% - 52% |  |  | 29,844 |  |  |  | 22,233 |
Total (1) |  |  |  |  | 140,772 |  |  |  | 182,854 |
(1) | The Company also has loans to joint venture partners of $28.5 million as at December 31, 2013 (2012—$24.0 million).
A condensed summary of the Company’s financial information for equity accounted investments (33% to 52% owned) shown on a 100% basis are as follows:
|  | As at December 31, |
|  | 2013(1) |  |  | 2012(2)(3) |
Cash and restricted cash |  |  | 323,065 |  |  |  | 229,963 |
Other assets - current |  |  | 168,537 |  |  |  | 125,152 |
Vessels and equipment |  |  | 2,598,690 |  |  |  | 2,114,435 |
Net investment in direct financing leases |  |  | 1,907,458 |  |  |  | 1,938,011 |
Other assets - non-current |  |  | 310,649 |  |  |  | 228,887 |
Current portion of long-term debt |  |  | 500,831 |  |  |  | 1,106,706 |
Other liabilities - current |  |  | 217,511 |  |  |  | 193,785 |
Long-term debt |  |  | 2,807,153 |  |  |  | 1,911,419 |
Other liabilities - non-current |  |  | 422,482 |  |  |  | 469,220 |
|  | Year ended December 31, |
|  | 2013(1) |  |  | 2012(2)(3) |  |  | 2011(3) |
Revenues |  |  | 940,187 |  |  |  | 659,030 |  |  |  | 303,607 |
Income from vessel operations |  |  | 327,748 |  |  |  | 241,702 |  |  |  | 118,408 |
Realized and unrealized loss on derivative instruments |  |  | 16,334 |  |  |  | (56,307 | ) |  |  | (127,230 | )
Net income (loss) |  |  | 287,628 |  |  |  | 120,395 |  |  |  | (48,996 | )
(1) | The results included for the Exmar LPG BVBA are from the date of acquisition in February 2013.
(2) | The results included for the Teekay LNG-Marubeni Joint Venture are from the date of acquisition of the MALT LNG Carriers which were acquired in February 2012.
(3) | The results included for the Angola Joint Venture are from the time the vessels were delivered in August, September, October 2011 and January 2012, respectively.
For the year ended December 31, 2013, the Company recorded equity income (loss) of $136.5 million (2012—$79.2 million and 2011—$(35.3) million). The income or loss was primarily comprised of the Company’s share of net income (loss) from the Teekay LNG-Marubeni Joint Venture, Angola LNG Project, the RasGas 3 Joint Venture, Sevan, Exmar Joint Venture, Exmar LPG BVBA, and from the interest in the Itajai. For the year ended December 31, 2013, $31.2 million of the equity gain related to the Company’s share of unrealized gain (loss) on interest rate swaps associated with these projects (2012—$5.3 million and 2011—$(35.2) million).

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: 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 2: 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 3: 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=7658923&loc=d3e32847-111569 Reference 4: 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=7658923&loc=d3e32787-111569 + Details
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