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Derivative Instruments (Tables)
 12 Months Ended
Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Foreign Currency Forward Contracts
As at December 31, 2018, 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)
 
Average
Forward
Rate(1)
 
Expected Maturity
2019
 
2020
(in thousands of U.S. Dollars)
Norwegian Krone
425,000

 
(4,588
)
 
7.96

 
47,809


5,567

Euro
12,000

 
(62
)
 
0.86

 
13,977


—

 
 
 
(4,650
)
 
 
 
61,786

 
5,567

(1)
Average forward rate represents the contracted amount of foreign currency one U.S. Dollar will buy.
Summary of Cross Currency Swaps
As at December 31, 2018, 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
 
95,000


15,409


NIBOR

4.25
%

7.45
%

(4,538
)

0.1
 
 
 
 
 
 
 
 
 
 
 
 
 
Realized and unrealized (loss) gain of cross currency swaps are recognized in earnings and reported in foreign currency exchange loss in the consolidated statements of (loss) income for the years ended December 31, 2018, 2017 and 2016 as follows:

 
Year Ended
December 31,
2018
$
 
Year Ended
December 31,
2017
$
 
Year Ended
December 31,
2016
$
Realized loss
(39,647
)
 
(84,205
)
 
(53,497
)
Unrealized gain
38,648

 
91,914

 
46,127

Total realized and unrealized (loss) gain on cross currency swaps
(999
)
 
7,709

 
(7,370
)
Schedule of Interest Rate Swap Agreements
As at December 31, 2018, the Partnership and its consolidated subsidiaries were committed to the following interest rate swap agreements:

 




Fair Value /




 




Carrying

Weighted-


 




Amount of

Average

Fixed
 
Interest

Notional

Assets

Remaining

Interest
 
Rate

Amount

(Liability)

Term

Rate
 
Index

$

$

(years)

(%) (1)
U.S. Dollar-denominated interest rate swaps (2)
LIBOR
 
700,000

 
(83,965
)
 
6.5
 
4.1
%
U.S. Dollar-denominated interest rate swaps (3)
LIBOR
 
766,145

 
(23,109
)
 
3.6
 
3.2
%
 
 
 
1,466,145

 
(107,074
)
 
 
 
 
(1)
Excludes the margin the Partnership pays on its variable-rate debt, which as at December 31, 2018, ranged from 0.90% to 4.30%.
(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
The following tables exclude any interest rate swap agreements designated and qualifying as cash flow hedges in the Partnership’s equity accounted joint ventures.

Year Ended December 31, 2018
 
Year Ended December 31, 2017
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)
 
(2,495
)
 
102

 
—

 
Interest expense
 
(19
)
  
(1,186
)
  
(7
)
Interest expense
(2,495
)
 
102

 
—

 
 
 
(19
)
  
(1,186
)
  
(7
)
 
Year Ended December 31, 2016
 
 
 
 
 
 
 
Effective Portion Recognized in AOCI (1)
 
Effective Portion Reclassified from AOCI (2)
 
Ineffective Portion (3)
 
 
 
 
 
 
 
 
 
101

 
(64
)
 
681

 
Interest expense
 
 
 
 
 
 
 
101

 
(64
)
 
681

 
 
 
 
 
 
 
 
 
(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, 2018
 
 
 
 
 
 
 
 
 
Foreign currency contracts
—

 
—

 
—

 
(4,225
)
 
(425
)
Cross currency swaps
—

 
—

 
(96
)
 
(4,442
)
 
—

Interest rate swaps
1,028

 
2,075

 
(1,625
)
 
(14,623
)
 
(93,929
)
 
1,028

 
2,075

 
(1,721
)
 
(23,290
)
 
(94,354
)
As at December 31, 2017
 
 
 
 
 
 
 
 
 
Foreign currency contracts
347

 
28

 
—

 
(665
)
 
(67
)
Cross currency swaps
—

 
—

 
(916
)
 
(4,412
)
 
(38,678
)
Interest rate swaps
233

 
1,565

 
(3,883
)
 
(37,438
)
 
(128,724
)
 
580

 
1,593

 
(4,799
)
 
(42,515
)
 
(167,469
)
Effect of (Losses) Gains on Derivatives
Total realized and unrealized gain (loss) of interest rate swaps and foreign currency forward contracts that are not designated for accounting purposes as cash flow hedges are recognized in earnings and reported in realized and unrealized gain (loss) on derivative instruments in the consolidated statements of (loss) income for the years ended December 31, 2018, 2017 and 2016 as follows:

 
Year Ended
December 31,
2018
$

Year Ended
December 31,
2017
$

Year Ended
December 31,
2016
$
Realized (loss) gain on derivative instruments
 
 
 
 
 
Interest rate swaps
(38,011
)
 
(78,296
)
 
(52,819
)
Foreign currency forward contracts
(1,228
)
 
900

 
(7,153
)
 
(39,239
)
 
(77,396
)
 
(59,972
)
Unrealized gain (loss) on derivative instruments
 
 
 
 
 
Interest rate swaps
56,420

 
33,114

 
29,937

Foreign currency forward contracts
(4,373
)
 
1,429

 
9,722

 
52,047

 
34,543

 
39,659

Total realized and unrealized gain (loss) on derivative instruments
12,808

 
(42,853
)
 
(20,313
)