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Financial Instruments (Tables) | 6 Months Ended
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Jun. 30, 2016
Fair Value Disclosures [Abstract] |
Fair Value of Financial Instruments and Other Non-Financial Assets | The following table includes the estimated fair value and carrying value of those assets and liabilities that are measured at fair value on a recurring and non-recurring basis as well as the estimated fair value of the Company’s financial instruments that are not accounted for at fair value on a recurring basis.
|  |  | June 30, 2016 |  | December 31, 2015
| Fair Value Hierarchy Level |  | Carrying Amount Asset (Liability) $ |  | Fair Value Asset (Liability) $ |  | Carrying Amount Asset (Liability) $ |  | Fair Value Asset (Liability) $
Recurring |  |  |  |  |  |  |  |  |
Cash and cash equivalents, restricted cash, and marketable securities | Level 1 |  |  | 933,034 |  |  | 933,034 |  |  | 855,107 |  |  | 855,107 |
Derivative instruments (note 15) |  |  |  |  |  |  |  |  |
Interest rate swap agreements – assets(1) | Level 2 |  |  | 2,122 |  |  | 2,122 |  |  | 6,136 |  |  | 6,136 |
Interest rate swap agreements – liabilities(1) | Level 2 |  |  | (521,617 | ) |  | (521,617 | ) |  | (370,952 | ) |  | (370,952 | )
Cross currency interest swap agreement(1) | Level 2 |  |  | (258,568 | ) |  | (258,568 | ) |  | (312,110 | ) |  | (312,110 | )
Foreign currency contracts | Level 2 |  |  | (3,762 | ) |  | (3,762 | ) |  | (18,826 | ) |  | (18,826 | )
Stock purchase warrants | Level 3 |  |  | 1,833 |  |  | 1,833 |  |  | 10,328 |  |  | 10,328 |
Time charter swap agreement | Level 3 |  |  | 1,345 |  |  | 1,345 |  |  | — |  |  | — |
Logitel contingent consideration (see below) | Level 3 |  |  | — |  |  | — |  |  | (14,830 | ) |  | (14,830 | )
Non-recurring |  |  |  |  |  |  |  |  |
Vessels and equipment | Level 2 |  |  | — |  |  | — |  |  | 100,600 |  |  | 100,600 |
Vessels held for sale (note 7) | Level 2 |  |  | 75,562 |  |  | 75,562 |  |  | 55,450 |  |  | 55,450 |
Other |  |  |  |  |  |
Loans to equity-accounted investees and joint venture partners – Current | (2 | ) |  | 17,740 |  |  | (2 | ) |  | 7,127 |  |  | (2 | )
Loans to equity-accounted investees and joint venture partners – Long-term | (2 | ) |  | 191,271 |  |  | (2 | ) |  | 184,390 |  |  | (2 | )
Long-term receivable included in accounts receivable and other assets(3) | Level 3 |  |  | 14,406 |  |  | 14,366 |  |  | 16,453 |  |  | 16,427 |
Long-term debt – public (note 8) | Level 1 |  |  | (1,471,093 | ) |  | (1,299,169 | ) |  | (1,493,915 | ) |  | (1,161,729 | )
Long-term debt – non-public (note 8) | Level 2 |  |  | (5,529,544 | ) |  | (5,383,777 | ) |  | (5,890,171 | ) |  | (5,881,483 | )
(1) | The fair value of the Company's interest rate swap agreements at June 30, 2016 includes $18.1 million (December 31, 2015 - $21.7 million) accrued interest expense which is recorded in accrued liabilities on the consolidated balance sheets.
(2) | In the consolidated financial statements, the Company’s loans to and equity investments in equity-accounted investees form the aggregate carrying value of the Company’s interests in entities accounted for by the equity method. In addition, the loans to joint venture partners together with the joint venture partner’s equity investment in joint ventures form the net aggregate carrying value of the Company’s interest in the joint ventures. The fair value of the individual components of such aggregate interests is not determinable.
(3) | As at June 30, 2016 the estimated fair value of the non-interest bearing receivable from BG Norge Limited (or BG) was based on the remaining future fixed payments as well as an estimated discount rate. The estimated fair value of this receivable as of June 30, 2016 was $14.4 million (December 31, 2015 – $16.4 million) using a discount rate of 8.0%. As there is no market rate for the equivalent of an unsecured non-interest bearing receivable from BG, the discount rate is based on unsecured debt instruments of similar maturity held, adjusted for a liquidity premium. A higher or lower discount rate would result in a lower or higher fair value asset.
Stock Purchase Warrants Changes in Fair Value Measured on Recurring Basis Using Significant Unobservable Inputs (Level 3) | Changes in fair value during the three and six months ended June 30, 2016 and 2015 for the Company’s derivative instruments, the TIL stock purchase warrants, which are described below and are measured at fair value on the recurring basis using significant unobservable inputs (Level 3), are as follows:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2016 |  | 2015 |  | 2016 |  | 2015
| $ |  | $ |  | $ |  | $
Fair value at the beginning of the period | 6,107 |  |  | 9,234 |  |  | 10,328 |  |  | 9,314 |
Unrealized (loss) gain included in earnings | (4,274 | ) |  | 1,817 |  |  | (8,495 | ) |  | 1,737 |
Fair value at the end of the period | 1,833 |  |  | 11,051 |  |  | 1,833 |  |  | 11,051 |
Changes in fair value during the three and six months ended June 30, 2016 for Teekay Tankers' time-charter swap agreement, which is described below and is measured at fair value on the recurring basis using significant unobservable inputs (Level 3), are as follows:
|  | Three and Six Months
|  | Ended
|  | June 30, 2016
|  | $
Fair value asset - beginning of the period |  | —
Settlements |  | (126)
Realized and unrealized gain |  | 1,471
Fair value asset - at the end of the period |  | 1,345
Changes in Estimated Fair Value of Contingent Consideration Liability Relating to Acquisition of Logitel | Changes in the estimated fair value of Teekay Offshore’s contingent consideration liability relating to the acquisition of Logitel, which is measured at fair value on a recurring basis using significant unobservable inputs (Level 3), during the three and six months ended June 30, 2016 and 2015 are as follows:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2016 |  | 2015 |  | 2016 |  | 2015
| $ |  | $ |  | $ |  | $
Balance at beginning of period | (15,221 | ) |  | (21,562 | ) |  | (14,830 | ) |  | (21,448 | )
Adjustment to Liability | — |  |  | 2,569 |  |  | — |  |  | 2,569 |
Settlement of liability | — |  |  | 3,540 |  |  | — |  |  | 3,540 |
Gain included in Other income - net (note 13) | 15,221 |  |  | 161 |  |  | 14,830 |  |  | 47 |
Balance at end of period | — |  |  | (15,292 | ) |  | — |  |  | (15,292 | )
Summary of Financing Receivables | The following table contains a summary of the Company’s financing receivables by type of borrower and the method by which the Company monitors the credit quality of its financing receivables on a quarterly basis.
Class of Financing Receivable |  | Credit Quality Indicator |  | Grade |  | June 30, 2016 |  | December 31, 2015
$ |  | $
Direct financing leases |  | Payment activity |  | Performing |  | 672,748 |  |  | 684,129 |
Other loan receivables |  |  |  |  |  |  |  |
Loans to equity-accounted investees and joint venture partners |  | Other internal metrics |  | Performing |  | 209,011 |  |  | 191,517 |
Long-term receivable included in other assets |  | Payment activity |  | Performing |  | 20,213 |  |  | 37,032 |
|  |  |  |  |  | 901,972 |  |  | 912,678 |

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- Definition Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19279-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a,b,bb) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2C -URI http://asc.fasb.org/extlink&oid=36462937&loc=SL7498348-110258 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19190-110258 + Details
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- Definition Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19279-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of financial instrument classified as a derivative asset (liability) after deduction of derivative liability (asset) using recurring unobservable inputs that reflect the entity's own assumption about the assumptions market participants would use in pricing. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19279-110258 + Details
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- Definition Tabular disclosure of financing receivables by credit quality indicator. The credit quality indicator is a statistic about the credit quality of financing receivables. Examples include, but not limited to, consumer credit risk scores, credit-rating-agency ratings, an entity's internal credit risk grades, loan-to-value ratios, collateral, collection experience and other internal metrics. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 55 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=32702940&loc=SL6953803-111525 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=49124121&loc=SL6953659-111524 + Details
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