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Write-down and Loss on Sales of Vessels (Tables) | 9 Months Ended
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Sep. 30, 2021
Property, Plant and Equipment [Abstract] |
Schedule of Impairment and Loss on Sale of Vessels, Equipment and Other Operating Assets | The following table contains the (write-downs) and gains (losses) on sales of assets for the three and nine months ended September 30, 2021 and 2020:
|  |  |  |  |  | Three Months Ended September 30,
Segment |  | Asset Type |  | Completion of Sale Date |  | 2021 |  | 2020
|  |  | $ |  | $
Teekay Parent Segment – Offshore Production (1) |  | 1 FPSO unit |  | N/A |  | — |  | (12,200)
Teekay Parent Segment – Other (2) |  | Operating lease right-of-use asset |  | N/A |  | — |  | (9,100)
Teekay Tankers Segment – Conventional Tankers (3) |  | 1 Aframax |  | Sep-2021 |  | 216 |  | —
Teekay Tankers Segment – Conventional Tankers (4) |  | 5 Aframaxes |  | N/A |  | (913) |  | (43,526)
Teekay Tankers Segment - Conventional Tankers |  | Operating lease right-of-use asset |  | N/A |  | — |  | (1,447)
Total |  |  |  |  |  | (697) |  | (66,273)
|  |  |  |  |  | Nine Months Ended September 30,
Segment |  | Asset Type |  | Completion of Sale Date |  | 2021 |  | 2020
|  |  | $ |  | $
Teekay Parent Segment – Offshore Production (1) |  | 2 FPSO unit |  | N/A |  | — |  | (72,285)
Teekay Parent Segment – Other (2) |  | Operating lease right-of-use asset |  | N/A |  | — |  | (9,100)
Teekay LNG Segment – Liquefied Gas Carriers (5) |  | 6 Multi-gas Carriers |  | N/A |  | — |  | (45,000)
Teekay Tankers Segment – Conventional Tankers (3) |  | 3 Suezmaxes |  | N/A |  | (62,937) |  | —
Teekay Tankers Segment – Conventional Tankers (3) |  | 3 LR2 Tankers |  | N/A |  | (18,381) |  | —
Teekay Tankers Segment – Conventional Tankers (3) |  | 2 Aframaxes |  | Sep-2021 |  | (5,152) |  | —
Teekay Tankers Segment - Conventional Tankers (4) |  | 5 Aframaxes |  | N/A |  | (913) |  | (43,526)
Teekay Tankers Segment – Conventional Tankers (6) |  | (6) |  | Apr-2020 |  | — |  | 3,081
Teekay Tankers Segment – Conventional Tankers |  | 3 Suezmaxes |  | Feb/Mar-2020 |  | — |  | (2,627)
Teekay Tankers Segment – Conventional Tankers |  | Operating lease right-of-use asset |  | N/A |  | (715) |  | (2,091)
Total |  |  |  |  |  | (88,098) |  | (171,548)
(1)During the nine months ended September 30, 2020, Teekay Parent recognized an impairment charge of $72.3 million, in respect of two of its FPSO units. In the first quarter of 2020, CNRI provided formal notice to Teekay of its intention to cease production in June 2020 and decommission the Banff field shortly thereafter. As such, in the third quarter of 2020, the Company removed the Petrojarl Banff FPSO from the Banff field and redelivered the Apollo Spirit FSO to its owner. During 2020, the ARO relating to the Petrojarl Banff FPSO unit and Phase 2 was increased based on changes to cost estimates and the carrying value of the unit was fully written down. During 2020, the Company also made changes to its expected cash flows from the Sevan Hummingbird FPSO unit based on the market environment and oil prices, and contract discussions with the customer, which resulted in a full write-down of its carrying value. (2)During the three months ended September 30, 2020, the Company updated its expected cash flows from the Suksan Salamander FSO unit, which it in-chartered from Altera under an operating lease, to take into account recent progress at the time relating to the early termination of the in-charter and the novation of the charter contracts with the customer to Altera. The right-of-use (or ROU) asset was written down to its estimated fair value using a discounted cash flow approach. (3)During the nine months ended September 30, 2021, Teekay Tankers wrote down the carrying values of three Suezmax tankers, three LR2 tankers and one Aframax tanker to their estimated fair values using appraised values provided by third parties, primarily due to a weaker near-term tanker market outlook and a reduction in charter rates as a result of the current economic environment, which has been impacted by the COVID-19 global pandemic. As at June 30, 2021, Teekay Tankers classified one Aframax tanker, including its related bunkers and lube oil inventory, as held for sale. The vessel cost was written down to its estimated sales price, less estimated selling costs. During the three months ended September 30, 2021, the vessel was delivered to its new owners and Teekay Tankers recognized a gain on sale of $0.2 million. (4)During the three and nine months ended September 30, 2020, the carrying values of five Aframax tankers were written down to their estimated fair values using appraised values, primarily due to the lower near-term tanker market outlook and a reduction of charter rates as a result of the current economic environment, which has been impacted by the COVID-19 global pandemic. During the three months ended September 30, 2021, Teekay Tankers classified one of these previously written down Aframax tankers, including its related bunkers and lube oil inventory, as held for sale. The vessel cost was written down to its estimated sales price less estimated selling costs. (5)During the three months ended March 31, 2020, the carrying values for six of Teekay LNG's seven wholly-owned multi-gas carriers were written down to their estimated fair values using appraised values, primarily due to the lower near-term outlook for these type of vessels as a result of the economic environment at that time (including the economic impact of the COVID-19 global pandemic), as well as Teekay LNG receiving notification that its then-existing commercial management agreement with a third-party commercial manager would dissolve and be replaced by a new commercial management agreement in September 2020. (6)On April 30, 2020, Teekay Tankers completed the sale of the non-US portion of its ship-to-ship support services business as well as its LNG terminal management business for proceeds of $27.1 million, including an adjustment of $1.1 million for the final amounts of cash and other working capital present on the closing date. $14.3 million of the total proceeds were received on closing and the remaining $12.7 million was received in July 2020.

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- Definition Tabular disclosure for impairment of long-lived assets held and used by an entity which includes a description of the impaired long-lived asset and facts and circumstances leading to the impairment, aggregate amount of the impairment loss and where the loss is located in the income statement, method(s) for determining fair value, and the segment in which the impaired long-lived asset is reported. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=109226691&loc=d3e2921-110230 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.CC) -URI http://asc.fasb.org/extlink&oid=27011434&loc=d3e125687-122742 + Details
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