XML 26 R18.htm IDEA: XBRL DOCUMENT
v3.19.2

Financial Instruments | 6 Months Ended
--- | ---
Jun. 30, 2019
Fair Value Disclosures [Abstract] |
Financial Instruments | Financial Instruments
a) | Fair Value Measurements
For a description of how the Company estimates fair value and for a description of the fair value hierarchy levels, see "Item 18 – Financial Statements: Note 11" in the Company’s Annual Report on Form 20-F for the year ended December 31, 2018. 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, 2019 |  | December 31, 2018
| 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 (note 18) | Level 1 |  | 322,883 |  |  | 322,883 |  |  | 505,639 |  |  | 505,639 |
Derivative instruments (note 15) |  |  |  |  |  |  |  |  |
Interest rate swap agreements – assets (1) | Level 2 |  | 1,896 |  |  | 1,896 |  |  | 9,640 |  |  | 9,640 |
Interest rate swap agreements – liabilities (1) | Level 2 |  | (56,663 | ) |  | (56,663 | ) |  | (43,175 | ) |  | (43,175 | )
Cross currency interest swap agreements – liabilities(1) | Level 2 |  | (31,006 | ) |  | (31,006 | ) |  | (29,122 | ) |  | (29,122 | )
Foreign currency contracts | Level 2 |  | (101 | ) |  | (101 | ) |  | — |  |  | — |
Stock purchase warrants | Level 3 |  | — |  |  | — |  |  | 12,026 |  |  | 12,026 |
Freight forward agreements | Level 2 |  | 61 |  |  | 61 |  |  | (57 | ) |  | (57 | )
Other |  |  |  |  |  |  |  |  |
Loans to equity-accounted investments | (2) |  | 93,924 |  |  | (2 | ) |  | 169,197 |  |  | (2 | )
Loans to equity-accounted investments – Long-term | (2) |  | 62,196 |  |  | (2 | ) |  | 62,207 |  |  | (2 | )
Short-term debt | Level 2 |  | (15,000 | ) |  | (15,000 | ) |  | — |  |  | — |
Long-term debt – public (note 9) | Level 1 |  | (627,981 | ) |  | (658,046 | ) |  | (856,986 | ) |  | (851,470 | )
Long-term debt – non-public (note 9) | Level 2 |  | (2,215,344 | ) |  | (2,168,252 | ) |  | (2,462,537 | ) |  | (2,395,300 | )
Obligations related to finance leases, including current portion (note 6) | Level 2 |  | (1,826,732 | ) |  | (1,872,238 | ) |  | (1,673,845 | ) |  | (1,652,345 | )
(1) | The fair value of the Company's interest rate swap and cross currency swap agreements at June 30, 2019 includes $2.6 million (December 31, 2018 - $3.2 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 investments in equity-accounted investments 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.
Stock purchase warrants - Prior to the 2019 Brookfield Transaction on May 8, 2019, Teekay held 15.5 million common unit warrants issued by Teekay Offshore to Teekay in connection with the 2017 Brookfield Transaction (or Brookfield Transaction Warrants) and 1,755,000 warrants to purchase common units of Teekay Offshore issued to Teekay in connection with Teekay Offshore's private placement of Series D Preferred Units in June 2016 (or the Series D Warrants) (see "Item 18 – Financial Statements: Note 4" of the Company’s Annual Report on Form 20-F for the year ended December 31, 2018). In May 2019, Teekay sold to Brookfield all of the Company’s remaining interests in Teekay Offshore, which included, among other things, both the Brookfield Transaction Warrants and Series D Warrants (see Note 4). Changes in fair value during the three and six months ended June 30, 2019 and 2018 for the Company’s Brookfield Transaction Warrants and the Series D Warrants, which were measured at fair value using significant unobservable inputs (Level 3), are as follows:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2019 |  | 2018 |  | 2019 |  | 2018
| $ |  | $ |  | $ |  | $
Fair value at the beginning of the period | 14,342 |  |  | 29,065 |  |  | 12,026 |  |  | 30,749 |
Unrealized gain included in earnings | 24,584 |  |  | 6,206 |  |  | 26,900 |  |  | 4,522 |
Realized (loss) gain included in earnings | (25,559 | ) |  | — |  |  | (25,559 | ) |  | — |
Settlements | (13,367 | ) |  | — |  |  | (13,367 | ) |  | — |
Fair value at the end of the period | — |  |  | 35,271 |  |  | — |  |  | 35,271 |
b) | 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 |  | June 30, 2019 |  | December 31, 2018
$ |  | $
Direct financing leases |  | Payment activity |  | Performing |  | 564,685 |  |  | 575,163 |
Other loan receivables |  |  |  |  |  |  |  |
Loans to equity-accounted investments and joint venture partners |  | Other internal metrics |  | Performing |  | 156,120 |  |  | 231,404 |
Long-term receivable and accrued revenue included in accounts receivable and other assets |  | Payment activity |  | Performing |  | 6,857 |  |  | 15,694 |
|  |  |  |  |  | 727,662 |  |  | 822,261 |

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References No definition available. + Details
Name: | us-gaap_FinancialInstrumentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration