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Derivative Instruments (Tables)
 12 Months Ended
Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Foreign Currency Forward Contracts
As at December 31, 2016, the Partnership was committed to the following foreign currency forward contracts:

 
Contract Amount
in Foreign
Currency
(thousands)
 
Fair Value / Carrying
Amount of Asset/(Liability)
(in thousands of U.S. Dollars)
Non-hedge
 
Average
Forward
Rate(1)
 
Expected Maturity
2017
 
2018
(in thousands of U.S. Dollars)
Norwegian Kroner
390,000

 
(1,482
)
 
8.35

 
38,859

 
7,829

Euro
13,750

 
(304
)
 
0.92

 
14,879

 
—

 
 
 
(1,786
)
 
 
 
53,738

 
7,829

(1)
Average forward rate represents the contracted amount of foreign currency one U.S. Dollar will buy.
Summary of Cross Currency Swaps
The effect of the (losses) gains on cross currency swaps in the consolidated statements of income for the years ended December 31, 2016, 2015 and 2014 are as follows:

 
Year Ended
December 31,
2016
$
 
Year Ended
December 31,
2015
$
 
Year Ended
December 31,
2014
$
Realized losses
(53,497
)
 
(10,140
)
 
(1,992
)
Unrealized gains (losses)
46,127

 
(61,734
)
 
(93,953
)
Total realized and unrealized losses on cross currency swaps
(7,370
)
 
(71,874
)
 
(95,945
)

As at December 31, 2016, the Partnership was committed to the following cross currency swaps:

Principal
Amount
NOK(thousands)
 
Principal
Amount
USD(thousands)
 
Floating Rate Receivable
 
Fixed Rate
Payable
 
Fair Value /
Asset
(Liability)
 
Remaining
Term (years)
Reference
Rate
 
Margin
 
420,000 (1)(2)

 
70,946

 
NIBOR
 
5.75
%
 
8.84
%
 
(25,821
)
 
1.9
800,000 (1)(3)

 
143,536

 
NIBOR
 
5.75
%
 
7.58
%
 
(56,272
)
 
2.0
1,000,000

 
162,200

 
NIBOR
 
4.25
%
 
7.45
%
 
(55,286
)
 
2.1
 
 
 
 
 
 
 
 
 
 
(137,379
)
 
 
(1)
Notional amount reduces equally with NOK bond repayments (see note 8).
(2)
Excludes an economic hedge on the foreign currency exposure for a three percent premium upon maturity of the NOK bonds which exchanges NOK 7.2 million for $1.2 million (see note 8).
(3)
Excludes an economic hedge on the foreign currency exposure for a three percent premium upon maturity of the NOK bonds which exchanges NOK 19.2 million for $3.4 million (see note 8).
Schedule of Interest Rate Swap Agreements
As at December 31, 2016, the Partnership was committed to the following interest rate swap agreements:

 
Interest
Rate
Index
 
Notional
Amount
$
 
Fair Value /
Carrying
Amount of
Assets
(Liability)
$
 
Weighted-
Average
Remaining
Term
(years)
 
Fixed
Interest
Rate
(%) (1)
U.S. Dollar-denominated interest rate swaps(2)
LIBOR
 
600,000

 
(151,049
)
 
7.9
 
5.0
%
U.S. Dollar-denominated interest rate swaps(3)
LIBOR
 
1,374,967

 
(52,057
)
 
4.9
 
2.6
%
 
 
 
1,974,967

 
(203,106
)
 
 
 
 
(1)
Excludes the margin the Partnership pays on its variable-rate debt, which as at December 31, 2016, ranged from 0.30% to 4.00%.
(2)
Notional amount remains constant over the term of the swap.
(3)
Principal amount reduces quarterly or semi-annually.
Effective Portion of Gains (Losses) on Interest Rate Swap Agreements
For the periods indicated, the following table presents the effective and ineffective portion of (losses) gains on interest rate swap agreements designated and qualifying as cash flow hedges. The following table excludes any interest rate swap agreements designated and qualifying as cash flow hedges in the Partnership's equity accounted joint ventures.

Year Ended December 31, 2016
 
Year Ended December 31, 2015
Effective Portion Recognized in AOCI (1)
 
Effective Portion Reclassified from AOCI (2)
 
Ineffective Portion (3)
 
 
 
Effective Portion Recognized in AOCI (1)
  
Effective Portion Reclassified from AOCI (2)
 
Ineffective Portion (3)
 
101

 
(64
)
 
681

 
Interest expense
 
(65
)
  
—

  
(1,050
)
Interest expense
101

 
(64
)
 
681

 
 
 
(65
)
  
—

  
(1,050
)
 
Year Ended December 31, 2014
 
 
 
 
 
 
 
Effective Portion Recognized in AOCI (1)
 
Effective Portion Reclassified from AOCI (2)
 
Ineffective Portion (3)
 
 
 
 
 
 
 
 
 
—

 
—

 
—

 

 
 
 
 
 
 
 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
(1)
Effective portion of designated and qualifying cash flow hedges recognized in accumulated other comprehensive income (or AOCI).
(2)
Effective portion of designated and qualifying cash flow hedges recorded in AOCI during the term of the hedging relationship and reclassified to earnings.
(3)
Ineffective portion of designated and qualifying cash flow hedges.

Location and Fair Value Amounts of Derivative Instruments
The following table presents the location and fair value amounts of derivative instruments, segregated by type of contract, on the Partnership’s balance sheets.

 
Other
current
assets
$
 
Other
assets
$
 
Accrued
liabilities
$
 
Current
portion of
derivative
liabilities
$
 
Derivative
liabilities
$
As at December 31, 2016
 
 
 
 
 
 
 
 
 
Foreign currency contracts
119

 
—

 
—

 
(1,634
)
 
(271
)
Cross currency swaps
—

 
—

 
(2,375
)
 
(20,281
)
 
(114,723
)
Interest rate swaps
181

 
2,597

 
(5,653
)
 
(33,087
)
 
(167,144
)
 
300

 
2,597

 
(8,028
)
 
(55,002
)
 
(282,138
)
As at December 31, 2015
 
 
 
 
 
 
 
 
 
Foreign currency contracts
80

 
—

 
—

 
(10,266
)
 
(1,323
)
Cross currency swaps
—

 
—

 
(2,196
)
 
(42,878
)
 
(138,253
)
Interest rate swaps
—

 
1,894

 
(7,827
)
 
(148,312
)
 
(81,753
)
 
80

 
1,894

 
(10,023
)
 
(201,456
)
 
(221,329
)
Effect of (Losses) Gains on Derivatives
The effect of the (losses) gains on these derivatives in the consolidated statements of income for the years ended December 31, 2016, 2015 and 2014 are as follows:

 
Year Ended
December 31,
2016
$

Year Ended
December 31,
2015
$

Year Ended
December 31,
2014
$
Realized losses on derivative instruments
 
 
 
 
 
Interest rate swap termination
—

 
(10,876
)
 
—

Interest rate swaps
(52,819
)
 
(60,741
)
 
(55,588
)
Foreign currency forward contracts
(7,153
)
 
(13,799
)
 
(1,912
)
 
(59,972
)
 
(85,416
)
 
(57,500
)
Unrealized gains (losses) on derivative instruments
 
 
 
 
 
Interest rate swaps
29,937

 
11,952

 
(75,777
)
Foreign currency forward contracts
9,722

 
(240
)
 
(10,426
)
 
39,659

 
11,712

 
(86,203
)
Total realized and unrealized (losses) gains on derivative instruments
(20,313
)
 
(73,704
)
 
(143,703
)