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Schedule I Condensed Non-Consolidated Financial Information of Registrant | 12 Months Ended
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Dec. 31, 2018
Condensed Financial Information of Parent Company Only Disclosure [Abstract] |
Schedule I Condensed Non-Consolidated Financial Information of Registrant | SCHEDULE I CONDENSED NON-CONSOLIDATED FINANCIAL INFORMATION OF REGISTRANT CONDENSED BALANCE SHEETS (NOTE 1) (in thousands of U.S. dollars)
|  | As at December 31, 2018 $ |  | As at December 31, 2017 $
ASSETS |  |  |  |
Current |  |  |  |
Cash and cash equivalents |  | 81,681 |  |  | 22,050 |
Accounts receivable |  | 202 |  |  | 699 |
Prepaid expenses and other |  | 12 |  |  | 175 |
Due from affiliates |  | 676,087 |  |  | 736,938 |
Total current assets |  | 757,982 |  |  | 759,862 |
Investments in subsidiaries (note 1) |  | 488,547 |  |  | 1,117,291 |
Other assets |  | 329 |  |  | 297 |
Total assets |  | 1,246,858 |  |  | 1,877,450 |
LIABILITIES AND EQUITY |  |  |  |
Current |  |  |  |
Accounts payable |  | 1,339 |  |  | 1,660 |
Accrued liabilities |  | 24,641 |  |  | 24,972 |
Due to affiliates |  | 203,585 |  |  | 254,983 |
Other current liabilities |  | 584 |  |  | 2,239 |
Total current liabilities |  | 230,149 |  |  | 283,854 |
Long-term debt (note 2) |  | 614,341 |  |  | 586,982 |
Other long-term liabilities |  | 7,911 |  |  | 10,783 |
Total liabilities |  | 852,401 |  |  | 881,619 |
Equity |  |  |  |
Common stock and additional paid-in capital |  | 1,045,659 |  |  | 919,078 |
(Accumulated deficit) retained earnings |  | (651,202 | ) |  | 76,753 |
Total equity |  | 394,457 |  |  | 995,831 |
Total liabilities and equity |  | 1,246,858 |  |  | 1,877,450 |
The accompanying notes are an integral part of the condensed non-consolidated financial information. TEEKAY CORPORATION SCHEDULE I CONDENSED NON-CONSOLIDATED FINANCIAL INFORMATION OF REGISTRANT CONDENSED STATEMENTS OF LOSS (NOTE 1) (in thousands of U.S. dollars)
|  | Year Ended December 31, 2018 $ |  | Year Ended December 31, 2017 $ |  | Year Ended December 31, 2016 $
Revenues |  | 345 |  |  | 5,089 |  |  | 14,142 |
Voyage expenses |  | 20 |  |  | (242 | ) |  | (59 | )
Vessel operating expenses |  | (26 | ) |  | — |  |  | (30 | )
Time-charter hire expense |  | — |  |  | (17,765 | ) |  | (24,477 | )
General and administrative expenses |  | (23,799 | ) |  | (20,549 | ) |  | (20,583 | )
Loss from vessel operations |  | (23,460 | ) |  | (33,467 | ) |  | (31,007 | )
Interest expense |  | (60,166 | ) |  | (53,103 | ) |  | (53,164 | )
Interest income |  | 2,839 |  |  | 422 |  |  | 18,430 |
Impairments of investments (note 1) |  | (651,473 | ) |  | (338,749 | ) |  | — |
Dividend income (note 1) |  | 32,751 |  |  | 58,000 |  |  | 1,039 |
Other |  | (6,008 | ) |  | 4,764 |  |  | (981 | )
Net loss before income taxes |  | (705,517 | ) |  | (362,133 | ) |  | (65,683 | )
Income tax expense |  | (208 | ) |  | (251 | ) |  | (525 | )
Net loss |  | (705,725 | ) |  | (362,384 | ) |  | (66,208 | )
The accompanying notes are an integral part of the condensed non-consolidated financial information. TEEKAY CORPORATION SCHEDULE I CONDENSED NON-CONSOLIDATED FINANCIAL INFORMATION OF REGISTRANT CONDENSED STATEMENTS OF CASH FLOWS (in thousands of U.S. dollars)
|  | Year Ended December 31, 2018 $ |  | Year Ended December 31, 2017 $ |  | Year Ended December 31, 2016 $
Cash, cash equivalents and restricted cash provided by (used for) |  |  |  |  |  |
OPERATING ACTIVITIES |  |  |  |  |  |
Net loss |  | (705,725 | ) |  | (362,384 | ) |  | (66,208 | )
Non-cash and non-operating items: |  |  |  |  |  |
Unrealized (gain) loss on derivative instruments |  | (2,932 | ) |  | (2,336 | ) |  | 604 |
Impairments of investments |  | 651,473 |  |  | 338,749 |  |  | — |
Income tax expense |  | 208 |  |  | 251 |  |  | 525 |
Stock-based compensation |  | 7,329 |  |  | 6,952 |  |  | 7,106 |
Dividends-in-kind |  | (10,000 | ) |  | (58,000 | ) |  | (1,039 | )
Other |  | 7,453 |  |  | 3,262 |  |  | 529 |
Change in operating assets and liabilities |  | (36,296 | ) |  | 718 |  |  | 17,050 |
Net operating cash flow |  | (88,490 | ) |  | (72,788 | ) |  | (41,433 | )
FINANCING ACTIVITIES |  |  |  |  |  |
Proceeds from issuance of long-term debt, net of issuance costs |  | 120,713 |  |  | — |  |  | — |
Prepayments of long-term debt |  | (85,654 | ) |  | — |  |  | — |
Advances from (to) affiliates |  | 39,293 |  |  | 103,400 |  |  | (15,802 | )
Net proceeds from equity issuances |  | 103,655 |  |  | 25,636 |  |  | 105,462 |
Cash dividends paid |  | (22,081 | ) |  | (18,967 | ) |  | (17,406 | )
Other financing activities |  | (651 | ) |  | (662 | ) |  | (666 | )
Net financing cash flow |  | 155,275 |  |  | 109,407 |  |  | 71,588 |
INVESTING ACTIVITIES |  |  |  |  |  |
Investments in subsidiaries |  | (7,109 | ) |  | (24,443 | ) |  | (62,714 | )
Other investing activities |  | (45 | ) |  | 1,289 |  |  | 660 |
Net investing cash flow |  | (7,154 | ) |  | (23,154 | ) |  | (62,054 | )
Increase (decrease) in cash, cash equivalents and restricted cash |  | 59,631 |  |  | 13,465 |  |  | (31,899 | )
Cash, cash equivalents and restricted cash, beginning of the year |  | 22,050 |  |  | 8,585 |  |  | 40,484 |
Cash, cash equivalents and restricted cash, end of the year |  | 81,681 |  |  | 22,050 |  |  | 8,585 |
Supplemental cash flow information (note 4) |  |  |  |  |  |
The accompanying notes are an integral part of the condensed non-consolidated financial information. 1. Summary of Significant Accounting Policies Basis of presentation The accompanying condensed non-consolidated financial information is required by SEC Regulation S-X 5-04 for Teekay Corporation (or Teekay), which requires the inclusion of financial information for Teekay on a stand-alone basis if the restricted net assets of consolidated subsidiaries exceed 25% of total consolidated net assets as of the last day of its most recent fiscal year. Teekay’s investments in subsidiaries are presented in this financial information under the cost method of accounting, whereby Teekay’s investment in subsidiaries is measured initially at cost. Under the cost method of accounting for investments in common stock, dividends are the basis for recognition of earnings from an investment. Under this method, an investor recognizes as income dividends received that are distributed from net accumulated earnings of the investee since the date of acquisition by the investor. The net accumulated earnings of an investee subsequent to the date of investment are recognized by the investor only to the extent distributed by the investee as dividends. Dividends received in excess of earnings subsequent to the date of investment are considered a return of investment and are recorded as reductions of cost of the investment. Teekay received dividends from its subsidiaries of $32.8 million (2018), $58.0 million (2017) and $1.0 million (2016), respectively. Teekay recognizes an impairment loss on its investments in its subsidiaries when the fair value of its investments is lower than the carrying value. The fair value of Teekay's investments in its subsidiaries is primarily influenced by the publicly-traded prices of Teekay LNG's and Teekay Offshore's common units, and the publicly-traded share price of Teekay Tankers' common shares as of the respective balance sheet dates. During the years ended December 31, 2018, 2017 and 2016, Teekay recognized impairment losses of $651.5 million, $338.7 million and $nil, respectively, in relation to declines in the fair value of its investments. A substantial amount of Teekay’s operating, investing and financing activities are conducted by its affiliates and not reflected in this financial information. The condensed non-consolidated financial information should be read in conjunction with Teekay’s consolidated financial statements. 2. Long-term debt
| December 31, 2018 $ |  | December 31, 2017 $
Senior Notes (8.5%) due January 15, 2020 | 508,577 |  |  | 592,657 |
Convertible Senior Notes (5%) due January 15, 2023 | 125,000 |  |  | — |
Less unamortized discount and debt issuance costs | (19,236 | ) |  | (5,675 | )
Total debt | 614,341 |  |  | 586,982 |
Long-term portion | 614,341 |  |  | 586,982 |
The Company’s 8.5% senior unsecured notes are due January 15, 2020 with an original aggregate principal amount of $450 million (or the Original Notes). The Original Notes issued on January 27, 2010 were sold at a price equal to 99.2% of par. During 2014, the Company repurchased $57.3 million of the Original Notes. In November 2015, the Company issued an aggregate principal amount of $200 million of the Company’s 8.5% senior unsecured notes due on January 15, 2020 (or the Notes) at 99.01% of face value, plus accrued interest from July 15, 2015. The Notes are an additional issuance of the Company’s Original Notes (collectively referred to as the 8.5% Notes). The Notes were issued under the same indenture governing the Original Notes and are fungible with the Original Notes. The discount on the 8.5% Notes is accreted through the maturity date of the notes using the effective interest rate of 8.67% per year. During 2018, the Company repurchased $84.1 million in aggregate principal amount of the 8.5% Notes. During the first quarter of 2019, the Company repurchased an additional $10.9 million in aggregate principal amount of the 8.5% Notes. The Company capitalized aggregate issuance costs of $13.3 million which are amortized to interest expense over the term of the 8.5% Notes. As of December 31, 2018, the unamortized balance of the capitalized issuance cost was $1.6 million which is recorded in long-term debt in the condensed balance sheet. The 8.5% Notes rank equally in right of payment with all of Teekay’s existing and future senior unsecured debt and senior to any future subordinated debt of Teekay. The 8.5% Notes are not guaranteed by any of Teekay’s subsidiaries and effectively rank behind all existing and future secured debt of Teekay and other liabilities of its subsidiaries. The Company may redeem the 8.5% Notes in whole or in part at any time before their maturity date at a redemption price equal to the greater of (i) 100% of the principal amount of the 8.5% Notes to be redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the 8.5% Notes to be redeemed (excluding accrued interest), discounted to the redemption date on a semi-annual basis, at the treasury yield plus 50 basis points, plus accrued and unpaid interest to the redemption date. On January 26, 2018, Teekay completed a private offering of $125.0 million of aggregate principal amount of 5% Convertible Senior Notes due January 15, 2023 (the Convertible Notes). The Convertible Notes are convertible into Teekay’s common stock, initially at a rate of 85.4701 shares of common stock per $1,000 principal amount of Convertible Notes. This represents an initial effective conversion price of $11.70 per share of common stock. The initial conversion price represents a premium of 20% to the concurrent common stock offering price of $9.75 per share. The conversion rate is subject to customary adjustments for, among other things, payments of dividends by Teekay beyond the current quarterly dividend of $0.055 per share of common stock. On issuance of the Convertible Notes, $104.6 million of the net proceeds was reflected in long-term debt and is being accreted to $125.0 million over its 5-year term through interest expense. The remaining amount of the net proceeds of $16.1 million was allocated to the conversion feature and reflected in additional paid-in capital. 3. Guarantees Teekay Corporation has guaranteed obligations pursuant to certain credit facilities of its subsidiaries. As at December 31, 2018, the aggregate outstanding balance on such credit facilities of Teekay Tankers was $166.4 million (December 31, 2017 - $252.7 million). In September 2017, Teekay was released from all of its previous guarantees relating to Teekay Offshore's long-term debt and interest rate swap and cross currency swap agreements. 4. Supplemental Cash Flow Information During 2018, one of the Company's subsidiaries returned capital in the amount of $1.7 million, paid-in-kind, which was treated as a non-cash transaction in the Company's condensed statement of cash flows. During 2018, 2017 and 2016, the Company received dividends of $10.0 million, $58.0 million and $1.0 million, respectively, paid-in-kind, which were treated as non-cash transactions in the Company's condensed statement of cash flows.

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- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.7-05(c)(Schedule II)) -URI http://asc.fasb.org/extlink&oid=6879921&loc=d3e569147-122900 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=96868048&loc=d3e5283-111683 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 235 -Section S99 -Paragraph 2 -Subparagraph (SX 210.9-06) -URI http://asc.fasb.org/extlink&oid=6882215&loc=d3e537971-122884 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04(c)(Schedule I)) -URI http://asc.fasb.org/extlink&oid=27047687&loc=d3e5864-122674 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e24072-122690 + Details
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