Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2016

Summary of Fair Value and Carrying Value of Assets and Liabilities Measured on Recurring and Non-recurring Basis

The following table includes the estimated fair value and carrying value of those assets and liabilities that are measured at fair value on a recurring and non-recurring basis as well as the estimated fair value of the Company’s financial instruments that are not accounted for at the fair value on a recurring basis.



		September 30, 2016				December 31, 2015
	Fair Value Hierarchy Level	Carrying Amount Asset / (Liability) $		Fair Value Asset / (Liability) $		Carrying Amount Asset / (Liability) $		Fair Value Asset / (Liability) $
Recurring:
Cash and cash equivalents and restricted cash	Level 1	60,237		60,237		97,287		97,287
Derivative instruments (note 8)
Interest rate swap agreements ⁽¹⁾	Level 2	(4,624	)	(4,624	)	(10,538	)	(10,538	)
Time-charter swap agreement ⁽¹⁾	Level 3	1,554		1,554		—		—
Stock purchase warrant	Level 3	717		717		5,164		5,164

Non-Recurring:
Vessel held for sale (note 13)	Level 2	13,151		13,151		—		—

Other:
Advances to equity accounted investments	Note (2)	11,480		Note (2)		13,980		Note (2)
Long-term debt, including current portion	Level 2	(966,651)		(955,596)		(1,164,605)		(1,140,135)


(1)	The fair value of the Company’s interest rate swap agreements and time-charter swap agreement at September 30, 2016 excludes accrued interest expense which is recorded in accrued liabilities on the unaudited consolidated balance sheets.

(2)

The advances to equity accounted investments together with the Company’s investments in the equity accounted investments form the net aggregate carrying value of the Company’s interests in the equity accounted investments in these consolidated financial statements. The fair values of the individual components of such aggregate interests as at September 30, 2016 and December 31, 2015 were not determinable.

Summary of Derivative Instrument Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs

Changes in fair value during the three and nine months ended September 30, 2016 for the Company’s time-charter swap agreement, which is described below and is measured at fair value on the recurring basis using significant unobservable inputs (Level 3), are as follows:



	Three Months	Nine Months
	Ended	Ended
	September 30, 2016	September 30, 2016
	$	$
Fair value asset - beginning of the period	1,345	—
Settlements	(1,096)	(1,222)
Realized and unrealized gain	1,305	2,776
Fair value asset - at the end of the period	1,554	1,554

Changes in fair value during the three and nine months ended September 30, 2016 and 2015 for the TIL stock purchase warrant, which is measured at fair value on a recurring basis using significant unobservable inputs (Level 3), are as follows:



	Three Months Ended				Nine Months Ended
	September 30, 2016		September 30, 2015		September 30, 2016		September 30, 2015
	$		$		$		$
Fair value at the beginning of the period	916		5,526		5,164		4,657
Unrealized (loss) gain included in earnings	(199	)	(105	)	(4,447	)	764
Fair value at the end of the period	717		5,421		717		5,421

Summary of Financing Receivables

The following table contains a summary of the Company’s financing receivables by type and the method by which the Company monitors the credit quality of its financing receivables on a quarterly basis.



			September 30, 2016	December 31, 2015
Class of Financing Receivable	Credit Quality Indicator	Grade	$	$
Advances to equity accounted investments	Other internal metrics	Performing	11,480	13,980
Total			11,480	13,980