XML 32 R37.htm IDEA: XBRL DOCUMENT v2.4.0.8

Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Commitment of Foreign Currency Forward Contracts

As at June 30, 2014, the Company was committed to the following foreign currency forward contracts:

										Fair Value /
										Carrying
										Amount
										Of Asset				Expected Maturity
		Contract Amount in				Average				(Liability)				2014				2015
		Foreign Currency				Forward Rate (1)				$				$				$
Norwegian Kroner			667,700				6.15				(400	)			54,930				53,599
Singapore Dollar			6,000				1.26				46				4,767				—
											(354	)			59,697				53,599

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

Commitment of Cross Currency Swaps

As at June 30, 2014, the Company was committed to the following cross currency swaps:

										Fair Value /
										Carrying
Notional		Notional		Floating Rate Receivable						Amount of
Amount		Amount		Reference				Fixed Rate		Asset /		Remaining
NOK		USD		Rate		Margin		Payable		(Liability)		Term (years)
700,000		122,800		NIBOR		4.75%		5.52%		(9,537)		1.3
500,000		89,700		NIBOR		4.00%		4.80%		(8,943)		1.6
600,000		101,400		NIBOR		5.75%		7.49%		(6,337)		2.6
700,000		125,000		NIBOR		5.25%		6.88%		(14,513)		2.8
800,000		143,500		NIBOR		4.75%		5.93%		(14,285)		3.6
900,000		150,000		NIBOR		4.35%		6.43%		(7,505)		4.2
1,000,000		162,200		NIBOR		4.25%		6.28%		(2,621)		4.6
										(63,741)

Interest Rate Swap Agreements

As at June 30, 2014, the Company was committed to the following interest rate swap agreements related to its LIBOR-based debt, restricted cash deposits and EURIBOR-based debt, whereby certain of the Company’s floating-rate debt and restricted cash deposits were swapped with fixed-rate obligations or fixed-rate deposits:

										Fair Value /
										Carrying				Weighted-
										Amount of				Average				Fixed
		Interest				Principal				Asset /				Remaining				Interest
		Rate				Amount				(Liability)				Term				Rate
		Index				$				$				(years)				(%) (1)
LIBOR-Based Debt:
U.S. Dollar-denominated interest rate swaps (2)			LIBOR				400,757				(91,531	)			22.6				4.9
U.S. Dollar-denominated interest rate swaps (3)			LIBOR				3,653,623				(362,136	)			6.1				3.6
U.S. Dollar-denominated interest rate swaps (4)			LIBOR				500,000				(7,416	)			1.2				3.1
LIBOR-Based Restricted Cash Deposit:
U.S. Dollar-denominated interest rate swaps (2)			LIBOR				469,066				121,309				22.6				4.8
EURIBOR-Based Debt:
Euro-denominated interest rate swaps (5) (6)			EURIBOR				330,845				(44,034	)			6.5				3.1
											(383,808	)

(1) Excludes the margins the Company pays on its variable-rate debt, which, as of June 30, 2014, ranged from 0.3% to 4.5%.

(2) Principal amount reduces quarterly.

(3) Principal amount of $200 million is fixed at 2.14%, unless LIBOR exceeds 6%, in which case the Company pays a floating rate of interest.

(4) Interest rate swap with an aggregate principal amount of $180 million is being used to economically hedge expected interest payments on new debt that is planned to be outstanding from 2016 to 2028. The interest rate swap is subject to mandatory early termination in 2014 whereby the swap will be settled based on its fair value at that time. Interest rate swaps with an aggregate principal amount of $320 million are being used to economically hedge expected interest payments on new debt that is planned to be outstanding from 2016 to 2021. These interest rate swaps are subject to mandatory early termination in 2016 whereby the swaps will be settled based on their fair value at that time.

(5) Principal amount reduces monthly to 70.1 million Euros ($96.0 million) by the maturity dates of the swap agreements.

(6) Principal amount is the U.S. Dollar equivalent of 241.7 million Euros.

Location and Fair Value Amounts of Derivative Instruments

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												Current
		Portion of												Portion of
		Derivative				Derivative				Accrued				Derivative				Derivative
		Assets				Assets				Liabilities				Liabilities				Liabilities
As at June 30, 2014
Derivatives not designated as a cash flow hedge:
Foreign currency contracts			696				11				—				(741	)			(320	)
Interest rate swap agreements			17,200				105,488				(22,281	)			(173,920	)			(310,295	)
Cross currency swap agreements			537				—				(39	)			(2,808	)			(61,431	)
Stock purchase warrants			—				8,051				—				—				—
			18,433				113,550				(22,320	)			(177,469	)			(372,046	)
As at December 31, 2013
Derivatives not designated as a cash flow hedge:
Foreign currency contracts			482				12				—				(1,819	)			(155	)
Interest rate swap agreements			21,779				69,785				(22,025	)			(140,503	)			(248,091	)
Cross currency swap agreements			779				—				3				(1,677	)			(51,324	)
			23,040				69,797				(22,022	)			(143,999	)			(299,570	)

Effect of Gain (Loss) on Derivatives Not Designated as Hedging Instruments

The effect of the gains and losses on derivatives not designated as hedging instruments in the consolidated statements of income are as follows:

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2014				2013				2014				2013
		$				$				$				$
Realized (losses) gains relating to:
Interest rate swap agreements			(30,755	)			(30,899	)			(60,245	)			(61,251	)
Interest rate swap agreement terminations			—				(4,187	)			1,000				(4,187	)
Foreign currency forward contracts			110				(1,873	)			(1,175	)			(1,452	)
			(30,645	)			(36,959	)			(60,420	)			(66,890	)
Unrealized (losses) gains relating to:
Interest rate swap agreements			(39,096	)			96,911				(64,494	)			116,115
Foreign currency forward contracts			(1,926	)			(3,917	)			1,125				(6,979	)
Stock purchase warrants			(3,664	)			—				1,210				—
			(44,686	)			92,994				(62,159	)			109,136
Total realized and unrealized (losses) gains on derivative instruments			(75,331	)			56,035				(122,579	)			42,246

Effect of Loss on Cross Currency Swaps

The effect of the loss on cross currency swaps on the consolidated statements of (loss) income is as follows:

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2014				2013				2014				2013
		$				$				$				$
Realized gain on partial termination of cross currency swap			—				—				—				6,800
Realized (losses) gains			(144	)			503				(289	)			1,565
Unrealized losses			(24,803	)			(16,399	)			(11,481	)			(54,353	)
Total realized and unrealized losses on cross currency swaps			(24,947	)			(15,896	)			(11,770	)			(45,988	)

X

- Definition

Schedule of Cross Currency Swap Commitments including fair value and terms table.

+ References

No definition available.

+ Details

Name:	tk_CrossCurrencySwapAgreementTableTextBlock
Namespace Prefix:	tk_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Schedule Of Derivative Gains And Losses In Consolidated Statements Of Financial Performance.

+ References

No definition available.

+ Details

Name:	tk_ScheduleOfDerivativeGainsAndLossesInConsolidatedStatementsOfFinancialPerformanceTableTextBlock
Namespace Prefix:	tk_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Details

Name:	us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of derivative instruments (including nonderivative instruments that are designated and qualify 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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 4A

-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5618551-113959

+ Details

Name:	us-gaap_ScheduleOfDerivativesInstrumentsStatementsOfFinancialPerformanceAndFinancialPositionLocationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 4B

-Subparagraph (c)(1)

-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624163-113959

+ Details

Name:	us-gaap_ScheduleOfForeignExchangeContractsStatementOfFinancialPositionTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 4C

-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624171-113959

+ Details

Name:	us-gaap_ScheduleOfInterestRateDerivativesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 4C

-Subparagraph (e)

-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624171-113959

+ Details

Name:	us-gaap_ScheduleOfOtherDerivativesNotDesignatedAsHedgingInstrumentsStatementsOfFinancialPerformanceAndFinancialPositionLocationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration