Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2013

Dry docking activity for the three years ended December 31, 2013, 2012, and 2011, is summarized as follows:


	Year Ended December 31,
	2013 $			2012 $			2011 $
Balance at the beginning of the year		100,928			128,987			143,103
Costs incurred for drydocking		72,545			35,336			54,296
Dry-dock amortization		(50,325	)		(57,082	)		(67,180	)
Write down / sale of vessels		(4,954	)		(6,313	)		(1,232	)

Balance at the end of the year		118,194			100,928			128,987

Summary of Financing Receivables

The following table contains a summary of the Company’s financing receivables by type of borrower, the method by which the Company monitors the credit quality of its financing receivables on a quarterly basis, and the grade as of December 31, 2013.

December 31,

2013

2012

Class of Financing Receivable

Credit Quality
Indicator

Grade

Direct financing leases

Payment activity

Performing

727,262

436,601

Other loan receivables

Investment in term loans and interest receivable

Collateral

Non-Performing⁽²⁾

211,579

188,756

Loans to equity accounted investees and joint venture partners⁽¹⁾

Other internal metrics

Performing

169,248

206,903

Long-term receivable included in other assets

Payment activity

Performing

31,634

1,704

1,139,723

833,964

(1)

The Company’s subsidiary Teekay LNG Partners L.P. (or Teekay LNG) owns a 99% interest in Teekay Tangguh, which owns a 70% interest in the Teekay Tangguh Joint Venture. During the year ended December 31, 2012, the parent company of Teekay LNG‘s joint venture partner, BLT, suspended trading on the Jakarta Stock Exchange and entered into a court-supervised debt restructuring in Indonesia. The remaining loans to joint venture partner, BLT LNG Tangguh Corporation, totaling $28.5 million as at December 31, 2013 (December 31, 2012—$24.0 million) are collectible given a signed settlement agreement between the Company and BLT LNG Tangguh Corporation regarding repayment terms. In February 2014, the Teekay Tangguh Joint Venture declared dividends of $69.5 million of which $14.4 million was used to offset the total advances to BLT LNG Tangguh Corporation and P.T. Berlian Laju Tanker and $6.5 million was repaid to Teekay by BLT LNG Tangguh Corporation. In addition, $0.5 million was paid to Teekay by BLT as part of the settlement agreement.

(2)	On March 21, 2014, Teekay and its publicly-listed subsidiary Teekay Tankers Ltd. (or Teekay Tankers) took ownership of the vessels held as collateral in satisfaction of the loans and accrued interest. (See Note 4)

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table contains the changes in the balances of each component of accumulated other comprehensive income (loss) for the periods presented.


	Qualifying Cash Flow Hedging Instruments $			Pension Adjustments, net of tax $			Unrealized Gain (Loss) on Available for Sale Marketable Securities $			Foreign Exchange Loss on Currency Translation $		Total $
Balance as of December 31, 2010		2,295			(17,539	)		7,073			—		(8,171	)
Other comprehensive loss		(2,601	)		(5,402	)		(7,729	)		—		(15,732	)


Balance as of December 31, 2011		(306	)		(22,941	)		(656	)		—		(23,903	)
Other comprehensive income		647			6,688			656			1,144		9,135


Balance as of December 31, 2012		341			(16,253	)		—			1,144		(14,768	)
Other comprehensive (loss) income		(324	)		(2,666	)		(171	)		740		(2,421	)


Balance as of December 31, 2013		17			(18,919	)		(171	)		1,884		(17,189	)