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Revenue | 6 Months Ended
--- | ---
Jun. 30, 2019
Revenue from Contract with Customer [Abstract] |
Revenues | Revenues The Company’s primary source of revenue is chartering its vessels and offshore units to its customers. The Company utilizes four primary forms of contracts, consisting of time-charter contracts, voyage charter contracts, bareboat charter contracts and contracts for FPSO units. The Company also generates revenue from the management and operation of vessels owned by third parties and by equity-accounted investments as well as providing corporate management services to such entities. For a description of these contracts, see "Item 18 – Financial Statements: Note 2" in the Company’s Annual Report on Form 20-F for the year ended December 31, 2018. Revenue Table The following tables contain the Company’s revenue for the three and six months ended June 30, 2019 and 2018, by contract type, by segment and by business lines within segments.
| Three Months Ended June 30, 2019
| Teekay LNG Liquefied Gas Carriers | Teekay LNG Conventional Tankers | Teekay Tankers Conventional Tankers | Teekay Parent Offshore Production | Teekay Parent Other | Eliminations and Other | Total
| $ | $ | $ | $ | $ | $ | $
Time charters | 133,684 |  | 2,369 |  | 1,456 |  | — |  | 8,078 |  | (2,487 | ) | 143,100 |
Voyage charters | 8,858 |  | — |  | 186,805 |  | — |  | — |  | — |  | 195,663 |
Bareboat charters | 6,129 |  | — |  | — |  | — |  | — |  | — |  | 6,129 |
FPSO contracts | — |  | — |  | — |  | 57,828 |  | — |  | — |  | 57,828 |
Management fees and other | 2,020 |  | — |  | 14,016 |  | — |  | 39,911 |  | (1,000 | ) | 54,947 |
| 150,691 |  | 2,369 |  | 202,277 |  | 57,828 |  | 47,989 |  | (3,487 | ) | 457,667 |
| Three Months Ended June 30, 2018
| Teekay LNG Liquefied Gas Carriers | Teekay LNG Conventional Tankers | Teekay Tankers Conventional Tankers | Teekay Parent Offshore Production | Teekay Parent Other | Eliminations and Other | Total
| $ | $ | $ | $ | $ | $ | $
Time charters | 96,857 |  | 4,316 |  | 17,384 |  | — |  | 7,588 |  | (1,439 | ) | 124,706 |
Voyage charters | 6,767 |  | 5,719 |  | 144,328 |  | — |  | — |  | — |  | 156,814 |
Bareboat charters | 5,734 |  | — |  | — |  | — |  | — |  | — |  | 5,734 |
FPSO contracts | — |  | — |  | — |  | 66,429 |  | — |  | — |  | 66,429 |
Management fees and other | 2,814 |  | 108 |  | 9,947 |  | — |  | 38,595 |  | 495 |  | 51,959 |
| 112,172 |  | 10,143 |  | 171,659 |  | 66,429 |  | 46,183 |  | (944 | ) | 405,642 |
| Six Months Ended June 30, 2019
| Teekay LNG Liquefied Gas Carriers | Teekay LNG Conventional Tankers | Teekay Tankers Conventional Tankers | Teekay Parent Offshore Production | Teekay Parent Other | Eliminations and Other | Total
| $ | $ | $ | $ | $ | $ | $
Time charters | 264,459 |  | 5,131 |  | 4,866 |  | — |  | 14,347 |  | (2,487 | ) | 286,316 |
Voyage charters | 18,018 |  | — |  | 403,222 |  | — |  | — |  | — |  | 421,240 |
Bareboat charters | 12,191 |  | — |  | — |  | — |  | — |  | — |  | 12,191 |
FPSO contracts | — |  | — |  | — |  | 107,266 |  | — |  | — |  | 107,266 |
Management fees and other | 3,005 |  | — |  | 26,690 |  | — |  | 84,301 |  | (2,129 | ) | 111,867 |
| 297,673 |  | 5,131 |  | 434,778 |  | 107,266 |  | 98,648 |  | (4,616 | ) | 938,880 |
| Six Months Ended June 30, 2018
| Teekay LNG Liquefied Gas Carriers | Teekay LNG Conventional Tankers | Teekay Tankers Conventional Tankers | Teekay Parent Offshore Production | Teekay Parent Other | Eliminations and Other | Total
| $ | $ | $ | $ | $ | $ | $
Time charters | 190,316 |  | 9,714 |  | 39,494 |  | — |  | 20,682 |  | (9,418 | ) | 250,788 |
Voyage charters | 10,390 |  | 10,470 |  | 279,970 |  | — |  | — |  | — |  | 300,830 |
Bareboat charters | 11,111 |  | — |  | — |  | — |  | — |  | — |  | 11,111 |
FPSO contracts | — |  | — |  | — |  | 132,399 |  | — |  | — |  | 132,399 |
Management fees and other | 5,404 |  | 216 |  | 20,660 |  | — |  | 77,445 |  | 811 |  | 104,536 |
| 217,221 |  | 20,400 |  | 340,124 |  | 132,399 |  | 98,127 |  | (8,607 | ) | 799,664 |
The following table contains the Company's total revenue for the three and six months ended June 30, 2019 and 2018, by contracts or components of contracts accounted for as leases and those not accounted for as leases.
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2019 |  | 2018 |  | 2019 |  | 2018
|  | $ |  | $ |  | $ |  | $
Lease revenue |  |  |  |  |  |  |  |
Lease revenue from lease payments of operating leases |  | 354,410 |  |  | 302,010 |  |  | 737,553 |  |  | 596,565 |
Interest income on lease receivables |  | 12,969 |  |  | 9,954 |  |  | 25,763 |  |  | 19,914 |
Variable lease payments – cost reimbursements (1) |  | 13,307 |  |  | 10,169 |  |  | 25,314 |  |  | 18,677 |
Variable lease payments – other (2) |  | 16,320 |  |  | 27,426 |  |  | 27,144 |  |  | 51,708 |
|  | 397,006 |  |  | 349,559 |  |  | 815,774 |  |  | 686,864 |
Non-lease revenue |  |  |  |  |  |  |  |
Non-lease revenue – related to sales-type or direct financing leases |  | 5,714 |  |  | 4,124 |  |  | 11,239 |  |  | 8,264 |
Management fees and other income |  | 54,947 |  |  | 51,959 |  |  | 111,867 |  |  | 104,536 |
|  | 60,661 |  |  | 56,083 |  |  | 123,106 |  |  | 112,800 |
Total |  | 457,667 |  |  | 405,642 |  |  | 938,880 |  |  | 799,664 |
(1) | Reimbursement for vessel operating expenditures and dry-docking expenditures received from the Company's customers relating to such costs incurred by the Company to operate the vessel for the customer.
(2) | Compensation from time-charter contracts based on spot market rates in excess of a base daily hire amount, production tariffs, which are based on the volume of oil produced, the price of oil, as well as other monthly or annual operational performance measures.
Operating Leases As at June 30, 2019, the minimum scheduled future rentals to be received by the Company in each of the next five years for the lease and non-lease elements related to time-charters, bareboat charters and FPSO contracts that were accounted for as operating leases were approximately $387.5 million (remainder of 2019), $647.4 million (2020), $533.2 million (2021), $429.7 million (2022) and $319.7 million (2023). As at December 31, 2018, the minimum scheduled future rentals to be received by the Company in each of the next five years for the lease and non-lease elements related to time-charters, bareboat charters and FPSO contracts that were accounted for as operating leases were approximately $630.8 million (2019), $524.6 million (2020), $457.5 million (2021), $382.0 million (2022) and $291.8 million (2023). Minimum scheduled future revenues should not be construed to reflect total charter hire revenues for any of the years. Minimum scheduled future revenues do not include revenue generated from new contracts entered into after June 30, 2019 or after December 31, 2018, as applicable, revenue from unexercised option periods of contracts that existed on June 30, 2019 or on December 31, 2018, as applicable, revenue from vessels in the Company’s equity-accounted investments, or variable or contingent revenues accounted for under ASC 842 Leases. In addition, minimum scheduled future operating lease revenues presented in this paragraph have been reduced by estimated off-hire time for any periodic maintenance. The amounts may vary given unscheduled future events such as vessel maintenance. The net carrying amount of the vessels employed on time-charter contracts, bareboat charter contracts and FPSO contracts that have been accounted for as operating leases at June 30, 2019, was $3.5 billion (December 31, 2018 – $3.4 billion). At June 30, 2019, the cost and accumulated depreciation of such vessels were $4.3 billion (December 31, 2018 – $4.3 billion) and $0.9 billion (December 31, 2018 – $0.8 billion), respectively. Net Investment in Direct Financing Leases Teekay LNG's time-charter contracts accounted for as direct financing leases contain both a lease component (lease of the vessel) and a non-lease component (operation of the vessel). Teekay LNG has allocated the contract consideration between the lease component and non-lease component on a relative standalone selling price basis. The standalone selling price of the non-lease component has been determined using a cost-plus approach, whereby Teekay LNG estimates the cost to operate the vessel using cost benchmarking studies prepared by a third party, when available, or internal estimates when not available, plus a profit margin. The standalone selling price of the lease component has been determined using an adjusted market approach, whereby Teekay LNG calculates a rate excluding the operating component based on a market time-charter rate from published broker estimates, when available, or internal estimates when not available. Given that there are no observable standalone selling prices for either of these two components, judgment is required in determining the standalone selling price of each component. Teekay LNG has three liquefied natural gas (or LNG) carriers, excluding vessels in its equity-accounted joint ventures, which are accounted for as direct financing leases. For a description of Teekay LNG's LNG carriers accounted for as direct financing leases, see "Item 18 – Financial Statements: Note 2" to the Company's Annual Report on Form 20-F for the year ended December 31, 2018. The following table lists the components of Teekay LNG's net investments in direct financing leases:
| June 30, 2019 |  | December 31, 2018
| $ |  | $
Total minimum lease payments to be received | 865,333 |  |  | 897,130 |
Estimated unguaranteed residual value of leased properties | 291,098 |  |  | 291,098 |
Initial direct costs and other | 312 |  |  | 329 |
Less unearned revenue | (592,058 | ) |  | (613,394 | )
Total | 564,685 |  |  | 575,163 |
Less current portion | (13,082 | ) |  | (12,635 | )
Long-term portion | 551,603 |  |  | 562,528 |
As at June 30, 2019, estimated minimum lease payments to be received by Teekay LNG related to its direct financing leases in each of the next five years are approximately $32.3 million (2019), $64.2 million (2020), $64.2 million (2021), $64.2 million (2022), $64.0 million (2023) and an aggregate of $576.4 million thereafter. The leases are scheduled to end between 2029 and 2039. As at December 31, 2018, estimated minimum lease payments to be received by Teekay LNG related to its direct financing leases in each of the next five years are approximately $64.2 million (2019), $64.3 million (2020), $64.2 million (2021), $64.2 million (2022), $64.0 million (2023) and an aggregate of $576.2 million thereafter. The leases are scheduled to end between 2029 and 2039. Contract Liabilities The Company enters into certain customer contracts that result in situations where the customer will pay consideration upfront for performance to be provided in the following month or months. These receipts are contract liabilities and are presented as deferred revenue until performance is provided. As at June 30, 2019, December 31, 2018, June 30, 2018 and on transition to ASC 606 on January 1, 2018, there were contract liabilities of $27.2 million, $26.4 million, $23.3 million and $29.5 million, respectively. During the three months ended June 30, 2019 and June 30, 2018, the Company recognized $20.4 million and $20.5 million of revenue, respectively, that was recognized as a contract liability at the beginning of such three-month periods. During the six months ended June 30, 2019 and June 30, 2018, the Company recognized $26.4 million and $28.9 million of revenue, respectively, that was recognized as a contract liability at the beginning of such six-month periods.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
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