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Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended
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Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Commitment of Foreign Currency Forward Contracts | As at December 31, 2015, the Company was committed to the following foreign currency forward contracts:
|  | Contract Amount in Foreign Currency |  |  | Average Forward Rate (1) |  |  | Fair Value / Carrying Amount |  |  | Expected Maturity |
|  |  |  | of Asset (Liability) $ |  |  | 2016 $ |  |  | 2017 $ |
Euro |  |  | 11,103 |  |  |  | 0.91 |  |  |  | (45 | ) |  |  | 12,153 |  |  |  | — |
Norwegian Kroner |  |  | 1,105,000 |  |  |  | 7.72 |  |  |  | (18,005 | ) |  |  | 100,812 |  |  |  | 42,274 |
Singapore Dollar |  |  | 22,442 |  |  |  | 1.36 |  |  |  | (776 | ) |  |  | 16,537 |  |  |  | — |
|  |  |  |  |  |  |  |  |  |  | (18,826 | ) |  |  | 129,502 |  |  |  | 42,274 |
(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, 2015, the Company was committed to the following cross currency swaps:
Notional Amount NOK |  |  | Notional Amount USD |  |  | Floating Rate Receivable |  |  | Fixed Rate Payable |  |  | Fair Value / Carrying Amount of |  |  | Remaining Term (years)
|  | Reference Rate |  | Margin |  |  |  | Asset / (Liability) |  |
| 500,000 |  |  |  | 89,710 |  |  | NIBOR |  |  | 4.00 | % |  |  | 4.94 | % |  |  | (33,714 | ) |  | 0.1
| 600,000 |  |  |  | 101,351 |  |  | NIBOR |  |  | 5.75 | % |  |  | 7.49 | % |  |  | (36,505 | ) |  | 1.1
| 700,000 |  |  |  | 125,000 |  |  | NIBOR |  |  | 5.25 | % |  |  | 6.88 | % |  |  | (49,703 | ) |  | 1.3
| 800,000 |  |  |  | 143,536 |  |  | NIBOR |  |  | 4.75 | % |  |  | 6.07 | % |  |  | (56,985 | ) |  | 2.1
| 900,000 |  |  |  | 150,000 |  |  | NIBOR |  |  | 4.35 | % |  |  | 6.43 | % |  |  | (54,027 | ) |  | 2.7
| 1,000,000 |  |  |  | 162,200 |  |  | NIBOR |  |  | 4.25 | % |  |  | 6.42 | % |  |  | (56,124 | ) |  | 3.1
| 1,000,000 |  |  |  | 134,000 |  |  | NIBOR |  |  | 3.70 | % |  |  | 5.92 | % |  |  | (25,052 | ) |  | 4.4
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (312,110 | ) |  |
Interest Rate Swap Agreements | As at December 31, 2015, 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 |  |  | 3,092,442 |  |  |  | (312,131 | ) |  | 5.4 |  | 3.4
U.S. Dollar-denominated interest rate swaps (3) |  | LIBOR |  |  | 412,392 |  |  |  | (16,227 | ) |  | 3.0 |  | 2.8
U.S. Dollar-denominated interest rate swaption (4) |  | LIBOR |  |  | 155,000 |  |  |  | (2,626 | ) |  | 1.3 |  | 2.2
U.S. Dollar-denominated interest rate swaption (4) |  | LIBOR |  |  | 155,000 |  |  |  | 685 |  |  | 1.3 |  | 3.3
U.S. Dollar-denominated interest rate swaption (5) |  | LIBOR |  |  | 160,000 |  |  |  | (2,041 | ) |  | 2.1 |  | 2.0
U.S. Dollar-denominated interest rate swaption (5) |  | LIBOR |  |  | 160,000 |  |  |  | 1,956 |  |  | 2.1 |  | 3.1
U.S. Dollar-denominated interest rate swaption (6) |  | LIBOR |  |  | 160,000 |  |  |  | (1,739 | ) |  | 2.5 |  | 1.8
U.S. Dollar-denominated interest rate swaption (6) |  | LIBOR |  |  | 160,000 |  |  |  | 2,981 |  |  | 2.5 |  | 2.9
EURIBOR-Based Debt: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Euro-denominated interest rate swaps (7) (8) |  | EURIBOR |  |  | 241,798 |  |  |  | (35,674 | ) |  | 5.0 |  | 3.1
|  |  |  |  |  |  |  |  | (364,816 | ) |  |  |  |
(1) | Excludes the margins the Company pays on its variable-rate debt, which, as of December 31, 2015, 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 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) | During June 2015, as part of its hedging program, Teekay LNG entered into interest rate swaption agreements whereby it has a one-time option in April 2017 to enter into an interest rate swap at a fixed rate of 3.34% with a third party, and the third party has a one-time option in April 2017 to require Teekay LNG to enter into an interest swap at a fixed rate of 2.15%. If Teekay LNG or the third party exercises its option, there will be a cash settlement in April 2017 for the fair value of the interest rate swap, in lieu of taking delivery of the actual interest rate swap.
(5) | During August 2015, as part of its hedging program, Teekay LNG entered into interest rate swaption agreements whereby it has a one-time option in January 2018 to enter into an interest rate swap at a fixed rate of 3.10% with a third party, and the third party has a one-time option in January 2018 to require Teekay LNG to enter into an interest swap at a fixed rate of 1.97%. If Teekay LNG or the third party exercises its option, there will be a cash settlement in January 2018 for the fair value of the interest rate swap, in lieu of taking delivery of the actual interest rate swap.
(6) | During October 2015, as part of its hedging program, Teekay LNG entered into interest rate swaption agreements whereby it has a one-time option in July 2018 to enter into an interest rate swap at a fixed rate of 2.935% with a third party, and the third party has a one-time option in July 2018 to require Teekay LNG to enter into an interest swap at a fixed rate of 1.83%. If Teekay LNG or the third party exercises its option, there will be a cash settlement in July 2018 for the fair value of the interest rate swap, in lieu of taking delivery of the actual interest rate swap.
(7) | Principal amount reduces monthly to 70.1 million Euros ($76.1 million) by the maturity dates of the swap agreements.
(8) | Principal amount is the U.S. Dollar equivalent of 222.7 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.
|  | Prepaid Expenses and Other |  |  | Derivative Assets |  |  | Accrued Liabilities |  |  | Current Portion of Derivative Liabilities |  |  | Derivative Liabilities |
As at December 31, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivatives designated as a cash flow hedge: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swap agreements |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (338 | ) |  |  | (777 | )
Derivatives not designated as a cash flow hedge: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts |  |  | 80 |  |  |  | — |  |  |  | — |  |  |  | (16,372 | ) |  |  | (2,534 | )
Interest rate swap agreements |  |  | — |  |  |  | 7,516 |  |  |  | (18,348 | ) |  |  | (198,196 | ) |  |  | (154,673 | )
Cross currency swap agreements |  |  | — |  |  |  | — |  |  |  | (3,377 | ) |  |  | (52,633 | ) |  |  | (256,100 | )
Stock purchase warrants |  |  | — |  |  |  | 10,328 |  |  |  | — |  |  |  | — |  |  |  | — |
|  |  | 80 |  |  |  | 17,844 |  |  |  | (21,725 | ) |  |  | (267,539 | ) |  |  | (414,084 | )
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 | )
Effective Portion of Gains (Losses) on Interest Rate Swap Agreements | For the periods indicated, the following table presents the effective portion of gains (losses) on interest rate swap agreements designated and qualifying as cash flow hedges that were (1) recognized in other comprehensive (loss) income, (2) recorded in accumulated other comprehensive income (or AOCI) during the term of the hedging relationship and reclassified to earnings, and (3) recognized in the ineffective portion of gains (losses) on derivative instruments designated and qualifying as cash flow hedges.
Year Ended December 31, 2015
Balance Sheet (AOCI) |  |  | Statement of Income (Loss)
Effective Portion |  |  | Effective Portion |  |  | Ineffective Portion |  |  |
| (65 | ) |  |  | — |  |  |  | (1,050 | ) |  | Interest expense
| (65 | ) |  |  | — |  |  |  | (1,050 | ) |  |
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:
|  | Year Ended |  |  | Year Ended |  |  | Year Ended |
|  | December 31, |  |  | December 31, |  |  | December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
|  | $ |  |  | $ |  |  | $ |
Realized losses relating to: |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swap agreements |  |  | (108,036 | ) |  |  | (125,424 | ) |  |  | (122,439 | )
Interest rate swap agreement terminations |  |  | (10,876 | ) |  |  | (1,319 | ) |  |  | (35,985 | )
Foreign currency forward contracts |  |  | (21,607 | ) |  |  | (4,436 | ) |  |  | (2,027 | )
|  |  | (140,519 | ) |  |  | (131,179 | ) |  |  | (160,451 | )
Unrealized gains (losses) relating to: |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swap agreements |  |  | 37,723 |  |  |  | (86,045 | ) |  |  | 182,800 |
Foreign currency forward contracts |  |  | (418 | ) |  |  | (16,926 | ) |  |  | (3,935 | )
Stock purchase warrants |  |  | 1,014 |  |  |  | 2,475 |  |  |  | — |
|  |  | 38,319 |  |  |  | (100,496 | ) |  |  | 178,865 |
Total realized and unrealized (losses) gains on derivative instruments |  |  | (102,200 | ) |  |  | (231,675 | ) |  |  | 18,414 |
Effect of Gains (Losses) on Cross Currency Swaps | The effect of the loss on cross currency swaps on the consolidated statements of income is as follows:
|  | Year Ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
|  | $ |  |  | $ |  |  | $ |
Realized (loss) gain on maturity and partial termination of cross currency swaps |  |  | (36,155 | ) |  |  | — |  |  |  | 6,800 |
Realized (losses) gains |  |  | (18,973 | ) |  |  | (3,955 | ) |  |  | 2,089 |
Unrealized losses |  |  | (89,178 | ) |  |  | (167,334 | ) |  |  | (65,387 | )
Total realized and unrealized (losses) gains on cross currency swaps |  |  | (144,306 | ) |  |  | (171,289 | ) |  |  | (56,498 | )

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