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Derivative Instruments and Hedging Activities (Tables)
 12 Months Ended
Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Commitment of Foreign Currency Forward Contracts
As at December 31, 2017, the Company was committed to the following foreign currency forward contracts:
 
Contract 
Amount in
Foreign Currency
 
Average Forward Rate (1)
 
Fair Value /
Carrying Amount
Of Asset
$
 
Expected Maturity
 
 
 
 
2018
 
 
 
 
$
Norwegian Kroner
100,000

 
8.23

 
81

 
12,153

(1)Average contractual exchange rate represents the contracted amount of foreign currency one U.S. Dollar will buy.
Commitment of Cross Currency Swaps
As at December 31, 2017, the Company was committed to the following cross currency swaps:
Notional Amount NOK
 
Notional Amount USD
 
 
 
 
 
 
 
Fair Value / Carrying Amount of (Liability) / Asset
 
Remaining
Term (years)
Floating Rate Receivable
 
 
 
Reference Rate
 
Margin
 
Fixed Rate Payable
 
900,000
 
150,000

 
NIBOR
 
4.35
%
 
6.43
%
 
(41,664
)
 
0.7
1,000,000
 
134,000

 
NIBOR
 
3.70
%
 
5.92
%
 
(12,553
)
 
2.4
1,200,000
 
146,500

 
NIBOR
 
6.00
%
 
7.72
%
 
3,758

 
3.8
 
 
 
 
 
 
 
 
 
 
(50,459
)
 
 
Interest Rate Swap Agreements
As at December 31, 2017, the Company was committed to the following interest rate swap agreements related to its LIBOR-based debt and EURIBOR-based debt, whereby certain of the Company’s floating-rate debt obligations were swapped with fixed-rate obligations:
 
Interest
Rate
Index
 
Principal
Amount
$
 
Fair Value /
Carrying
Amount of
Asset /
(Liability)
$
 
Weighted-
Average
Remaining
Term
(years)
 
Fixed
Interest
Rate
(%) (1)
LIBOR-Based Debt:
 
 
 
 
 
 
 
 
 
U.S. Dollar-denominated interest rate swaps (2)
LIBOR
 
1,137,671

 
(33,882
)
 
4.8
 
2.8
U.S. Dollar-denominated interest rate swaps (3)
LIBOR
 
160,000

 
(9,360
)
 
0.3
 
3.5
U.S. Dollar-denominated interest rate swaption (4)
LIBOR
 
160,000

 
(2
)
 
0.1
 
2.0
U.S. Dollar-denominated interest rate swaption (4)
LIBOR
 
160,000

 
—

 
0.1
 
3.1
EURIBOR-Based Debt:
 
 
 
 
 
 
 
 
 
Euro-denominated interest rate swaps (5) (6)
EURIBOR
 
232,957

 
(29,235
)
 
3.0
 
3.1
 
 
 
 
 
(72,479
)
 
 
 
 
(1)
Excludes the margins the Company pays on its variable-rate debt, which, as of December 31, 2017, ranged from 0.3% to 4.0%.
(2)
Includes interest rate swaps with the notional amount reducing quarterly or semi-annually.
(3)
Forward starting swap with inception date in April 2018. This interest rate swap is being used to economically hedge expected interest payments on new debt that is planned to be outstanding from 2018 to 2024. This interest rate swap is subject to mandatory early termination in 2018 whereby the swap will be settled based on its fair value at that time.
(4)
During August 2015, as part of its hedging program, Teekay LNG entered into interest rate swaption agreements whereby it has a one-time option in January 2018 to enter into an interest rate swap at a fixed rate of 3.10% with a third party, and the third party has a one-time option in January 2018 to require Teekay LNG to enter into an interest swap at a fixed rate of 1.97%. If Teekay LNG or the third party exercises its option, there will be a cash settlement in January 2018 for the fair value of the interest rate swap, in lieu of taking delivery of the actual interest rate swap. Neither party exercised their option in January 2018.
(5)
Principal amount reduces monthly to 70.1 million Euros ($84.2 million) by the maturity dates of the swap agreements.
(6)
Principal amount is the U.S. dollar equivalent of 194.1 million Euros.
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 Company’s consolidated balance sheets.
 
Prepaid Expenses and Other
 
Other Non-Current Assets
 
Accrued Liabilities and Other
 
Current
Portion of
Derivative
Liabilities
 
Derivative
Liabilities
As at December 31, 2017
 
 
 
 
 
 
 
 
 
Derivatives designated as a cash flow hedge:
 
 
 
 
 
 
 
 
 
Interest rate swap agreements
—

 
1,037

 
(18
)
 
(751
)
 
(7
)
Derivatives not designated as a cash flow hedge:

 

 

 

 

Foreign currency contracts
96

 
—

 
—

 
(15
)
 
—

Interest rate swap agreements
1,124

 
4,319

 
(4,836
)
 
(35,134
)
 
(38,213
)
Cross currency swap agreements
—

 
5,042

 
(810
)
 
(44,523
)
 
(10,168
)
Stock purchase warrants
—

 
30,749

 
—

 
—

 
—

 
1,220

 
41,147

 
(5,664
)
 
(80,423
)
 
(48,388
)
As at December 31, 2016
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
Derivatives designated as a cash flow hedge:
 
 
 
 
 
 
 
 
 
Interest rate swap agreements
—

 
1,340

 
(363
)
 
(1,033
)
 
(52
)
Derivatives not designated as a cash flow hedge:
 
 
 
 
 
 
 
 
 
Foreign currency contracts
119

 
—

 
—

 
(2,601
)
 
(511
)
Interest rate swap agreements
212

 
9,839

 
(11,979
)
 
(59,055
)
 
(233,901
)
Cross currency swap agreements
—

 
—

 
(3,464
)
 
(53,124
)
 
(180,577
)
Stock purchase warrants
—

 
575

 
—

 
—

 
—

Time -charter swap agreement
875

 
—

 
(667
)
 
—

 
—

 
1,206

 
11,754

 
(16,473
)
 
(115,813
)
 
(415,041
)
Effective Portion of Gains (Losses) on Interest Rate Swap Agreements
For the periods indicated, the following table presents the effective portion of (losses) gains on consolidated interest rate swap agreements designated and qualifying as cash flow hedges:
Year Ended December 31, 2017
Effective Portion
 
Effective Portion
 
Ineffective
 
 
Recognized in AOCI (1)
 
Reclassified from AOCI (2)
 
Portion
 
 
$
 
$
 
$
 
 
(31
)
 
(1,614
)
 
(746
)
 
Interest expense
(31
)
 
(1,614
)
 
(746
)
 
 

Year Ended December 31, 2016
Effective Portion
 
Effective Portion
 
Ineffective
 
 
Recognized in AOCI (1)
 
Reclassified from AOCI (2)
 
Portion
 
 
$
 
$
 
$
 
 
691

 
(68
)
 
682

 
Interest expense
691

 
(68
)
 
682

 
 
(1) Recognized in accumulated other comprehensive loss (or AOCI).
(2) Recorded in AOCI during the term of the hedging relationship and reclassified to earnings.
(3) Recognized in the ineffective portion of (losses) gains on derivative instruments designated and qualifying as cash flow hedges.
Effect of Gain (Loss) on Derivatives Not Designated as Hedging Instruments
The effect of the (losses) and gains on derivatives not designated as hedging instruments in the consolidated statements of (loss) income are as follows:
 
Year Ended
December 31, 2017
$
 
Year Ended
December 31, 2016
$
 
Year Ended
December 31, 2015
$
Realized (losses) gains relating to:
 
 
 
 
 
Interest rate swap agreements
(53,921
)
 
(87,320
)
 
(108,036
)
Interest rate swap agreement terminations
(610
)
 
(8,140
)
 
(10,876
)
Foreign currency forward contracts
667

 
(11,186
)
 
(21,607
)
Time charter swap agreement
1,106

 
2,154

 
—

Forward freight agreements
270

 
—

 
—

 
(52,488
)
 
(104,492
)
 
(140,519
)
Unrealized gains (losses) relating to:
 
 
 
 
 
Interest rate swap agreements
17,005

 
62,446

 
37,723

Foreign currency forward contracts
3,925

 
15,833

 
(418
)
Stock purchase warrants
(6,421
)
 
(9,753
)
 
1,014

Time-charter swap agreement
(875
)
 
875

 
—

 
13,634

 
69,401

 
38,319

Total realized and unrealized losses on derivative instruments
(38,854
)
 
(35,091
)
 
(102,200
)
Effect of Gains (Losses) on Cross Currency Swaps
The effect of the gains (losses) on cross currency swaps on the consolidated statements of (loss) income is as follows:
 
Year Ended December 31,
 
2017
$
 
2016
$
 
2015
$
Realized losses on maturity and/or partial termination of cross currency swap
(25,733
)
 
(41,707
)
 
(36,155
)
Realized losses
(18,494
)
 
(38,564
)
 
(18,973
)
Unrealized gains (losses)
82,668

 
75,033

 
(89,178
)
Total realized and unrealized gains (losses) on cross currency swaps
38,441

 
(5,238
)
 
(144,306
)