XML 27 R13.htm IDEA: XBRL DOCUMENT v3.8.0.1
Segment Reporting
 12 Months Ended
Dec. 31, 2017
Segment Reporting [Abstract]  
Segment Reporting
Segment Reporting
The Partnership is engaged in the international marine transportation of crude oil, the offshore processing and storage of crude oil, long-distance ocean towage and offshore installation services, and maintenance and safety services through the operation of its shuttle and conventional tankers, FSO units, FPSO units, towage vessels and UMS. The Partnership’s revenues are earned in international markets.

The Partnership has six reportable segments: its FPSO segment; its shuttle tanker segment; its FSO segment; its UMS segment; its towage segment; and its conventional tanker segment. The Partnership’s FPSO segment consists of its FPSO units to service its FPSO contracts. The Partnership’s shuttle tanker segment consists of shuttle tankers operating primarily on fixed-rate contracts of affreightment, time-charter contracts or bareboat charter contracts. The Partnership’s FSO segment consists of its FSO units subject to fixed-rate, time-charter contracts or bareboat charter contracts. The Partnership’s UMS segment consists of one unit currently in lay-up. The Partnership’s towage segment consists of long-distance towing and offshore installation vessels which operate on time-charter or towage contracts. The Partnership’s conventional tanker segment consists of two in-chartered conventional tankers, which are currently operating in the spot conventional tanker market. Segment results are evaluated based on income from vessel operations. The accounting policies applied to the reportable segments are the same as those used in the preparation of the Partnership’s consolidated financial statements.

The following table presents revenues and percentage of consolidated revenues for customers that accounted for more than 10% of the Partnership’s consolidated revenues from continuing operations during the periods presented.

(U.S. Dollars in millions)
 
Year Ended
December 31,2017
 
Year Ended
December 31, 2016
 
Year Ended
December 31, 2015
Royal Dutch Shell Plc (1)(2)
 
$338.2 or 31%
 
$349.0 or 30%
 
$315.3 or 26%
Petroleo Brasileiro S.A.(1)
 
$190.7 or 17%
 
$222.0 or 19%
 
$224.6 or 18%
Statoil ASA (3)
 
$114.5 or 10%
 
—  (4)
 
$132.7 or 11%
Premier Oil (5)(6)
 
$113.5 or 10%
 
$113.5 or 10%
 
$129.2 or 11%
(1)
Shuttle tanker and FPSO segments.
(2)
In February 2016, Royal Dutch Shell Plc acquired BG Group Plc; therefore the amount in the table for 2016 and 2015 includes revenues from both Royal Dutch Shell Plc and BG Group Plc.
(3)
Shuttle tanker segment and FSO segment.
(4)
Percentage of consolidated revenue was less than 10%.
(5)
In April 2016, Premier Oil acquired E.ON Ruhgras UK GP Limited's (or E.ON) UK North Sea assets where the Voyageur Spirit FPSO operates. Revenues up to April 2016 are attributable to E.ON.
(6)
FPSO segment.

The following tables include results for the Partnership’s FPSO unit segment; shuttle tanker segment; FSO unit segment; UMS segment; towage segment; and conventional tanker segment for the periods presented in these consolidated financial statements.
Year ended December 31, 2017
 
FPSO Segment

Shuttle Tanker Segment

FSO Segment

UMS Segment

Towage Segment

Conventional Tanker Segment
 
Eliminations(2)

Total
Revenues
 
458,388


536,852


66,901


4,236


38,771


14,022

 
(8,886
)

1,110,284

Voyage expenses
 
—


(80,964
)

(1,172
)

(1,152
)

(17,727
)

(359
)
 
1,930


(99,444
)
Vessel operating (expenses) recoveries
 
(149,153
)

(129,517
)

(25,241
)

(33,656
)

(21,074
)

10

 
5,067


(353,564
)
Time-charter hire expenses
 
—


(62,899
)

—


—


(925
)

(16,491
)
 
—


(80,315
)
Depreciation and amortization
 
(143,559
)

(125,648
)

(19,406
)

(6,566
)

(15,578
)

—

 
782


(309,975
)
General and administrative(1)
 
(33,046
)

(17,425
)

(1,864
)

(5,068
)

(4,486
)

(360
)
 
—


(62,249
)
(Write-down) & gain (loss) on sale of vessels
 
(265,229
)

(51,741
)

(1,108
)

—


—


—

 
—


(318,078
)
Restructuring charge
 
(450
)

(210
)

—


(2,004
)

—


—

 
—


(2,664
)
(Loss) income from vessel operations
 
(133,049
)

68,448


18,110


(44,210
)

(21,019
)

(3,178
)
 
(1,107
)
—

(116,005
)
Equity income
 
14,442


—


—


—


—


—

 
—


14,442

Investment in joint ventures
 
169,875


—


—


—


—


—

 
—


169,875

Expenditures for vessels and equipment, including advances on newbuilding contracts and conversion costs
 
193,817


216,157


88,039


3,931


31,316


—

 
—



533,260

Expenditures for dry docking
 
—


16,323


199


—


661


—

 
—



17,183

Year ended December 31, 2016
 
FPSO Segment

Shuttle Tanker Segment

FSO Segment

UMS Segment

Towage Segment

Conventional Tanker Segment
 
Eliminations
 
Total
Revenues(3)
 
495,223


509,596


54,440


34,433


37,952


20,746

 
—


1,152,390

Voyage expenses
 
—


(62,846
)

(1,517
)

—


(15,024
)

(1,363
)
 
—


(80,750
)
Vessel operating expenses
 
(165,346
)

(123,950
)

(23,167
)

(32,888
)

(17,524
)

(1,566
)
 
—


(364,441
)
Time-charter hire expenses
 
—


(62,511
)

—


—


—


(12,974
)
 
—


(75,485
)
Depreciation and amortization
 
(149,198
)

(122,822
)

(9,311
)

(6,660
)

(12,020
)

—

 
—


(300,011
)
General and administrative(1)
 
(35,971
)

(10,160
)

(836
)

(5,495
)

(3,307
)

(353
)
 
—


(56,122
)
Gain on sale and (write down) of vessels
 
—


4,554


(983
)

(43,650
)

—


—

 
—


(40,079
)
Restructuring charge
 
(4,444
)

(205
)

—


—


—


—

 
—


(4,649
)
Income (loss) from vessel operations
 
140,264


131,656


18,626


(54,260
)

(9,923
)

4,490

 
—


230,853

Equity income
 
17,933


—


—


—


—


—

 
—


17,933

Investment in joint ventures
 
141,819


—


—


—


—


—

 
—


141,819

Expenditures for vessels and equipment, including advances on newbuilding contracts and conversion costs
 
66,234


40,584


101,347


9,742


76,674


—

 
—


294,581

Expenditures for dry docking
 
—


19,105


5,139


—


799


—

 
—


25,043


Year ended December 31, 2015
 
FPSO Segment

Shuttle Tanker Segment

FSO Segment

UMS Segment

Towage Segment

Conventional Tanker Segment
 
Eliminations

Total
Revenues(3)
 
531,554


541,792


57,391


28,334


40,112


30,230

 
—


1,229,413

Voyage expenses
 
—


(82,777
)

(851
)

—


(12,052
)

(2,326
)
 
—


(98,006
)
Vessel operating expenses
 
(189,900
)

(128,156
)

(26,394
)

(13,876
)

(13,920
)

(6,234
)
 
—


(378,480
)
Time-charter hire expenses
 
—


(51,088
)

—


—


(662
)

—

 
—


(51,750
)
Depreciation and amortization
 
(137,914
)

(106,190
)

(11,775
)

(3,775
)

(8,362
)

(6,583
)
 
—


(274,599
)
General and administrative(1)(4)
 
(38,588
)

(22,884
)

(1,372
)

(4,109
)

(4,598
)

(1,062
)
 
—


(72,613
)
(Write down) and gain on sale of vessels
 
—


(65,101
)

—


(1,000
)

—


(3,897
)
 
—


(69,998
)
Restructuring charge
 
—


(568
)

—


—


—


—

 
—


(568
)
Income (loss) from vessel operations
 
165,152


85,028


16,999


5,574


518


10,128

 
—


283,399

Equity income
 
7,672


—


—


—


—


—

 
—


7,672

Investment in joint ventures
 
77,647


—


—


—


—


—

 
—


77,647

Expenditures for vessels and equipment, including advances on newbuilding contracts and conversion costs(5)
 
116,473


26,980


94,317


183,364


243,436


97

 
—


664,667

Expenditures for dry docking
 
—


14,609


—


—


—


—

 
—


14,609


(1)
Includes direct general and administrative expenses and indirect general and administrative expenses (allocated to each segment based on estimated use of corporate resources).
(2)
Includes revenue and expenses earned and incurred between segments of the Partnership, during the year ended December 31, 2017.
(3)
Revenues for the year ended December 31, 2016, includes a $4.0 million early termination fee received from Teekay Corporation during 2016, which is included in the Partnership's conventional tanker segment (see note 18).
Revenues for the year ended December 31, 2015, includes $1.8 million net early termination fees paid to Teekay Corporation during 2015, which is included in the Partnership's conventional tanker segment (see note 18).
(4)
General and administrative expenses for the year ended December 31, 2015 includes business development fees of $9.7 million, $2.2 million and $2.0 million to Teekay Corporation in connection with the acquisitions of the Petrojarl Knarr FPSO unit in the FPSO segment, six long-distance towing and offshore installation vessels in the towage segment, and the Arendal Spirit UMS in the UMS segment, respectively (see notes 3 and 11i).
(5)
Excludes the purchase price of the Petrojarl Knarr FPSO unit (see note 3).

A reconciliation of total segment assets to total assets presented in the accompanying consolidated balance sheets is as follows:
 
 
December 31, 2017
$
 
December 31, 2016
$
FPSO segment
 
2,506,660

 
2,672,100

Shuttle tanker segment
 
1,765,664

 
1,673,348

FSO segment
 
516,567

 
407,634

UMS segment
 
190,440

 
213,829

Towage segment
 
398,610

 
382,973

Conventional tanker segment
 
3,360

 
4,818

Unallocated:
 


 


Cash and cash equivalents and restricted cash
 
250,294

 
342,287

Other assets
 
6,200

 
21,631

Consolidated total assets
 
5,637,795


5,718,620