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Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended
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Dec. 31, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Commitment of Foreign Currency Forward Contracts | As at December 31, 2014, the Company was committed to the following foreign currency forward contracts:
|  | Contract Amount in Foreign Currency |  |  | Average Forward Rate (1) |  |  | Fair Value / Carrying Amount of Asset (Liability) $ |  |  | Expected Maturity 2015 $ |  |  | 2016 $ |
Norwegian Kroner |  |  | 861,000 |  |  |  | 6.44 |  |  |  | (18,407 | ) |  |  | 91,400 |  |  |  | 42,253 |
|  |  |  |  |  |  |  |  |  |  | (18,407 | ) |  |  | 91,400 |  |  |  | 42,253 |
(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 December 31, 2014, the Company was committed to the following cross currency swaps:
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | Fair Value / Carrying |  |  |  |
Notional |  |  | Notional |  |  | Floating Rate Receivable |  |  |  |  |  | Amount of |  |  | Remaining |
Amount NOK |  |  | Amount USD |  |  | Reference Rate |  |  | Margin |  |  | Fixed Rate Payable |  |  | Asset / (Liability) |  |  | Term (years) |
| 700,000 |  |  |  | 122,800 |  |  |  | NIBOR |  |  |  | 4.75 | % |  |  | 5.52 | % |  |  | (30,501 | ) |  |  | 0.8 |
| 500,000 |  |  |  | 89,710 |  |  |  | NIBOR |  |  |  | 4.00 | % |  |  | 4.80 | % |  |  | (23,843 | ) |  |  | 1.1 |
| 600,000 |  |  |  | 101,351 |  |  |  | NIBOR |  |  |  | 5.75 | % |  |  | 7.49 | % |  |  | (24,732 | ) |  |  | 2.1 |
| 700,000 |  |  |  | 125,000 |  |  |  | NIBOR |  |  |  | 5.25 | % |  |  | 6.88 | % |  |  | (35,766 | ) |  |  | 2.3 |
| 800,000 |  |  |  | 143,536 |  |  |  | NIBOR |  |  |  | 4.75 | % |  |  | 5.93 | % |  |  | (38,898 | ) |  |  | 3.1 |
| 900,000 |  |  |  | 150,000 |  |  |  | NIBOR |  |  |  | 4.35 | % |  |  | 6.43 | % |  |  | (34,620 | ) |  |  | 3.7 |
| 1,000,000 |  |  |  | 162,200 |  |  |  | NIBOR |  |  |  | 4.25 | % |  |  | 6.28 | % |  |  | (33,031 | ) |  |  | 4.1 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (221,391 | ) |  |  |  |
Interest Rate Swap Agreements | As at December 31, 2014, the Company was committed to the following interest rate swap agreements related to its LIBOR-based debt and EURIBOR-based debt, whereby certain of the Company’s floating-rate debt were swapped with fixed-rate obligations:
|  | 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 |  |  | 3,357,287 |  |  |  | (342,772 | ) |  |  | 5.8 |  |  |  | 3.5 |
U.S. Dollar-denominated interest rate swaps (3) |  | LIBOR |  |  | 500,000 |  |  |  | (17,150 | ) |  |  | 0.8 |  |  |  | 3.1 |
EURIBOR-Based Debt: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Euro-denominated interest rate swaps (4) (5) |  | EURIBOR |  |  | 284,993 |  |  |  | (45,810 | ) |  |  | 6.0 |  |  |  | 3.1 |
|  |  |  |  |  |  |  |  | (405,732 | ) |  |  |  |  |  |  |  |
(1) | Excludes the margins the Company pays on its variable-rate debt, which, as of December 31, 2014, ranged from 0.3% to 3.95%.
(2) | 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.
(3) | 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 2015 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.
(4) | Principal amount reduces monthly to 70.1 million Euros ($84.8 million) by the maturity dates of the swap agreements.
(5) | Principal amount is the U.S. Dollar equivalent of 235.6 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 December 31, 2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivatives not designated as a cash flow hedge: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (14,218 | ) |  |  | (4,189 | )
Interest rate swap agreements |  |  | — |  |  |  | 5,101 |  |  |  | (22,656 | ) |  |  | (148,006 | ) |  |  | (240,171 | )
Cross currency swap agreements |  |  | — |  |  |  | — |  |  |  | (1,835 | ) |  |  | (41,733 | ) |  |  | (177,822 | )
Stock purchase warrants |  |  | — |  |  |  | 9,314 |  |  |  | — |  |  |  | — |  |  |  | — |
|  |  | — |  |  |  | 14,415 |  |  |  | (24,491 | ) |  |  | (203,957 | ) |  |  | (422,182 | )
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 (loss) are as follows:
|  | Year Ended |  |  | Year Ended |  |  | Year Ended |
|  | December 31, |  |  | December 31, |  |  | December 31, |
|  | 2014 |  |  | 2013 |  |  | 2012 |
|  | $ |  |  | $ |  |  | $ |
Realized (losses) gains relating to: |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swap agreements |  |  | (125,424 | ) |  |  | (122,439 | ) |  |  | (123,277 | )
Interest rate swap agreement terminations |  |  | (1,319 | ) |  |  | (35,985 | ) |  |  | — |
Foreign currency forward contracts |  |  | (4,436 | ) |  |  | (2,027 | ) |  |  | 1,155 |
Foinaven embedded derivative |  |  | — |  |  |  | — |  |  |  | 11,452 |
|  |  | (131,179 | ) |  |  | (160,451 | ) |  |  | (110,670 | )
Unrealized (losses) gains relating to: |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swap agreements |  |  | (86,045 | ) |  |  | 182,800 |  |  |  | 26,770 |
Foreign currency forward contracts |  |  | (16,926 | ) |  |  | (3,935 | ) |  |  | 6,933 |
Stock purchase warrants |  |  | 2,475 |  |  |  | — |  |  |  | — |
Foinaven embedded derivative |  |  | — |  |  |  | — |  |  |  | (3,385 | )
|  |  | (100,496 | ) |  |  | 178,865 |  |  |  | 30,318 |
Total realized and unrealized (losses) gains on derivative instruments |  |  | (231,675 | ) |  |  | 18,414 |  |  |  | (80,352 | )
Effect of Loss on Cross Currency Swaps | The effect of the loss on cross currency swaps on the consolidated statements of income (loss) is as follows:
|  | Year Ended December 31, |
|  | 2014 |  |  | 2013 |  |  | 2012 |
|  | $ |  |  | $ |  |  | $ |
Realized gain on partial termination of cross currency swap |  |  | — |  |  |  | 6,800 |  |  |  | — |
Realized (losses) gains |  |  | (3,955 | ) |  |  | 2,089 |  |  |  | 3,628 |
Unrealized (losses) gains |  |  | (167,334 | ) |  |  | (65,387 | ) |  |  | 10,715 |
Total realized and unrealized (losses) gains on cross currency swaps |  |  | (171,289 | ) |  |  | (56,498 | ) |  |  | 14,343 |

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