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Segment Reporting
 12 Months Ended
Dec. 31, 2018
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 and offshore installation 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 and offshore installation vessels (or 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 and offshore installation vessels segment consists of long-distance towage and offshore installation vessels which operate on time-charter or voyage charter 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 during the periods presented.

(U.S. Dollars in millions)
 
Year Ended
December 31, 2018
 
Year Ended
December 31, 2017
 
Year Ended
December 31, 2016
Royal Dutch Shell Plc (1)(2)
 
$327.6 or 23%
 
$338.2 or 31%
 
$349.0 or 30%
Petroleo Brasileiro S.A.(1)
 
$254.8 or 18%
 
$190.7 or 17%
 
$222.0 or 19%
Equinor ASA (formerly Statoil ASA) (3)
 
$182.1 or 13%
 
$114.5 or 10%
 
—  (4)
Premier Oil (5)(6)
 
—  (4)
 
$113.5 or 10%
 
$113.5 or 10%
(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 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 unit 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 and offshore installation vessels segment; and conventional tanker segment for the periods presented in these consolidated financial statements.
Year ended December 31, 2018
 
FPSO Segment

Shuttle Tanker Segment

FSO Segment

UMS Segment

Towage Segment

Conventional Tanker Segment
 
Eliminations(3)

Total
Revenues(1)
 
533,186


636,413


136,557


36,536


53,327


21,325

 
(920
)

1,416,424

Voyage expenses
 
—


(109,796
)

(769
)

(47
)

(28,925
)

(12,453
)
 
182


(151,808
)
Vessel operating expenses
 
(214,623
)

(149,226
)

(42,913
)

(3,679
)

(27,346
)

—

 
116


(437,671
)
Time-charter hire expenses
 
—


(36,421
)

—


—


—


(16,195
)
 
—


(52,616
)
Depreciation and amortization
 
(145,451
)

(155,932
)

(44,077
)

(6,611
)

(20,323
)

—

 
104


(372,290
)
General and administrative(2)
 
(34,052
)

(21,763
)

(2,174
)

(3,547
)

(3,531
)

(360
)
 
—


(65,427
)
(Write-down) and gain on sale of vessels
 
(180,200
)

(43,155
)

—


—


—


—

 
—


(223,355
)
Restructuring charge
 
(1,520
)

—


—


—


—


—

 
—


(1,520
)
(Loss) income from vessel operations
 
(42,660
)

120,120


46,624


22,652


(26,798
)

(7,683
)
 
(518
)
 
111,737

Equity income
 
39,458


—


—


—


—


—

 
—


39,458

Investment in joint ventures
 
212,202


—


—


—


—


—

 
—


212,202

Expenditures for vessels and equipment, including advances on newbuilding contracts and conversion costs
 
54,371


147,540


6,987


—


24,838


—

 
—


233,736

Expenditures for dry docking
 
—


22,135


—


—


1,467


—

 
—


23,602

Year ended December 31, 2017
 
FPSO Segment

Shuttle Tanker Segment

FSO Segment

UMS Segment

Towage Segment

Conventional Tanker Segment
 
Eliminations(3)
 
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(2)
 
(33,046
)

(17,425
)

(1,864
)

(5,068
)

(4,486
)

(360
)
 
—


(62,249
)
(Write-down) and 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
 
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(2)
 
(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


(1)
Includes revenues of $55.0 million and $36.5 million in the shuttle tanker and UMS segments, respectively, during the year ended December 31, 2018 related to a settlement agreement with Petrobras and Petroleo Netherlands B.V. - PNBV S.A. (or Petrobras) in relation to the previously-terminated charter contracts of the HiLoad DP unit and Arendal Spirit UMS (see note 5).
(2)
Includes direct general and administrative expenses and indirect general and administrative expenses (allocated to each segment based on estimated use of corporate resources).
(3)
Includes revenue and expenses earned and incurred between segments of the Partnership, during the years ended December 31, 2018 and December 31, 2017.
A reconciliation of total segment assets to total assets presented in the accompanying consolidated balance sheets is as follows:
 
 
December 31, 2018
$
 
December 31, 2017
$
FPSO segment
 
2,279,277

 
2,506,660

Shuttle tanker segment
 
1,684,887

 
1,765,664

FSO segment
 
463,647

 
516,567

UMS segment
 
220,509

 
190,440

Towage segment
 
419,000

 
398,610

Conventional tanker segment
 
4,259

 
3,360

Unallocated:
 


 


Cash and cash equivalents and restricted cash
 
233,580

 
250,294

Other assets
 
6,893

 
6,200

Consolidated total assets
 
5,312,052


5,637,795