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Financial Instruments (Tables) | 9 Months Ended
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Sep. 30, 2018
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.
|  |  | September 30, 2018 |  | December 31, 2017
| Fair Value Hierarchy Level |  | Carrying Amount Asset (Liability) $ |  | Fair Value Asset (Liability) $ |  | Carrying Amount Asset (Liability) $ |  | Fair Value Asset (Liability) $
Recurring |  |  |  |  |  |  |  |  |
Cash, cash equivalents and restricted cash | Level 1 |  | 458,463 |  |  | 458,463 |  |  | 552,174 |  |  | 552,174 |
Derivative instruments (note 14) |  |  |  |  |  |  |  |  |
Interest rate swap agreements – assets(1) | Level 2 |  | 16,852 |  |  | 16,852 |  |  | 6,081 |  |  | 6,081 |
Interest rate swap agreements – liabilities(1) | Level 2 |  | (34,459 | ) |  | (34,459 | ) |  | (78,560 | ) |  | (78,560 | )
Cross-currency interest swap agreements – assets(1) | Level 2 |  | 9,682 |  |  | 9,682 |  |  | 3,758 |  |  | 3,758 |
Cross-currency interest swap agreements – liabilities(1) | Level 2 |  | (10,185 | ) |  | (10,185 | ) |  | (54,217 | ) |  | (54,217 | )
Foreign currency contracts | Level 2 |  | — |  |  | — |  |  | 81 |  |  | 81 |
Stock purchase warrants | Level 3 |  | 32,228 |  |  | 32,228 |  |  | 30,749 |  |  | 30,749 |
Freight forward agreements | Level 2 |  | 102 |  |  | 102 |  |  | — |  |  | — |
Non-recurring |  |  |  |  |  |  |  |  |
Vessels held for sale (note 7) | Level 2 |  | 28,482 |  |  | 28,482 |  |  | 16,671 |  |  | 16,671 |
Other |  |  |  |  |  |
Loans to equity-accounted investees – Current | (2) |  | 82,376 |  |  | (2 | ) |  | 107,486 |  |  | (2 | )
Advances to equity-accounted investees and joint venture partners – Long-term | (2) |  | 162,154 |  |  | (2 | ) |  | 146,420 |  |  | (2 | )
Long-term receivable included in accounts receivable and other non-current assets(3) | Level 3 |  | 693 |  |  | 689 |  |  | 3,476 |  |  | 3,459 |
Long-term debt – public (note 8) | Level 1 |  | (908,479 | ) |  | (934,047 | ) |  | (963,563 | ) |  | (979,773 | )
Long-term debt – non-public (note 8) | Level 2 |  | (2,442,536 | ) |  | (2,407,526 | ) |  | (2,454,142 | ) |  | (2,421,273 | )
Obligations related to capital leases, including current portion | Level 2 |  | (1,609,698 | ) |  | (1,554,773 | ) |  | (1,160,457 | ) |  | (1,148,989 | )
(1) | The fair value of the Company's interest rate swap and cross-currency swap agreements at September 30, 2018 includes $2.0 million (December 31, 2017 - $5.7 million) accrued interest expense which is recorded in accrued liabilities on the unaudited consolidated balance sheets.
(2) | In the unaudited interim 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. The fair value of the individual components of such aggregate interests is not determinable.
(3) | As at September 30, 2018, the estimated fair value of the non-interest-bearing receivable from Royal Dutch Shell plc (or Shell) is based on the remaining future fixed payments as well as an estimated discount rate. The estimated fair value of this receivable as of September 30, 2018 was $0.7 million (December 31, 2017 – $3.5 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 Shell, the discount rate is based on unsecured debt instruments of similar maturity held by the Company, 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 nine months ended September 30, 2018 and 2017 for the Company’s Brookfield Transaction Warrants, Series D Warrants and the TIL stock purchase warrants, as applicable, which are described above and were measured at fair value on the recurring basis using significant unobservable inputs (Level 3), are as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
| $ |  | $ |  | $ |  | $
Fair value at the beginning of the period | 35,271 |  |  | — |  |  | 30,749 |  |  | 575 |
Fair value on acquisition/issuance | 2,330 |  |  | 36,596 |  |  | 2,330 |  |  | 36,596 |
Unrealized loss included in earnings | (5,373 | ) |  | (4,461 | ) |  | (851 | ) |  | (5,036 | )
Fair value at the end of the period | 32,228 |  |  | 32,135 |  |  | 32,228 |  |  | 32,135 |
Summary of Financing Receivables | The following table contains a summary of the Company’s carrying value of 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 |  | September 30, 2018 |  | December 31, 2017
$ |  | $
Direct financing leases |  | Payment activity |  | Performing |  | 577,696 |  |  | 495,990 |
Other loan receivables |  |  |  |  |  |  |  |
Loans to equity-accounted investees and joint venture partners |  | Other internal metrics |  | Performing |  | 244,530 |  |  | 253,906 |
Long-term receivable and accrued revenue included in accounts receivable and other assets |  | Payment activity |  | Performing |  | 14,043 |  |  | 12,175 |
|  |  |  |  |  | 836,269 |  |  | 762,071 |

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- Definition Tabular disclosure of the inputs and valuation techniques used to measure fair value, and a discussion of changes in valuation techniques and related inputs, if any, applied during the period to each separate class of assets, liabilities, and financial instruments classified in shareholders' equity that are measured on a recurring and/or nonrecurring basis. + 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 (bbb) -URI http://asc.fasb.org/extlink&oid=66048111&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=66048111&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=66048111&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=82894031&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=84173941&loc=SL6953659-111524 + Details
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