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Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2021

Schedule of Foreign Exchange Contracts, Statement of Financial Position [Table Text Block]

As at September 30, 2021, the Company was committed to the following foreign currency forward contracts:


			Fair Value / Carrying Amount of Asset / (Liability) $
	Contract Amount in			Expected Maturity $
	Foreign Currency	Average Forward Rate (1)		2021	2022
GBP	4,000	0.73413	(56)	2,737	2,712

(1) Average contractual exchange rate represents the contracted amount of foreign currency one U.S. Dollar will buy.

The Company enters into cross currency swaps, and pursuant to these swaps the Company receives the principal amount in NOK on the maturity dates of the swaps, in exchange for payment of a fixed U.S. Dollar amount. In addition, the cross currency swaps exchange a receipt of floating interest in NOK based on NIBOR plus a margin for a payment of U.S. Dollar fixed interest. The purpose of the cross currency swaps is to economically hedge the foreign currency exposure on the payment of interest and principal amounts of the Company’s NOK-denominated bonds due in 2021, 2023 and 2025. In addition, the cross currency swaps economically hedge the interest rate exposure on the NOK bonds due in 2021, 2023 and 2025. The Company has not designated, for accounting purposes, these cross currency swaps as cash flow hedges of its NOK-denominated bonds due in 2021, 2023 and 2025. As at September 30, 2021, the Company was committed to the following cross currency swaps:


					Fair Value / Carrying Amount of Asset / (Liability) $
Notional Amount NOK	Notional Amount USD	Floating Rate Receivable
		Reference Rate	Margin	Fixed Rate Payable		Remaining Term (years)
1,200,000	146,500	NIBOR	6.00%	7.72%	(9,932)	0.1
850,000	102,000	NIBOR	4.60%	7.89%	(10,601)	1.9
1,000,000	112,000	NIBOR	5.15%	5.74%	3,891	3.9
					(16,642)

Schedule of Interest Rate Derivatives [Table Text Block]

As at September 30, 2021, 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 debts were swapped with fixed-rate obligations:


	Interest Rate Index	Principal Amount	Fair Value / Carrying Amount of Asset / (Liability) $	Weighted- Average Remaining Term (years)	Fixed Swap Rate (%)(1)
LIBOR-Based Debt:
U.S. Dollar-denominated interest rate swaps (2)	LIBOR	805,565	(29,799)	3.5	2.1



EURIBOR-Based Debt:
Euro-denominated interest rate swaps (3)	EURIBOR	58,613	(3,901)	1.9	3.9
			(33,700)

(1)Excludes the margins the Company pays on its variable-rate debt which, as of September 30, 2021, ranged from 0.6% to 4.25%.

(2)Includes interest rate swaps with the notional amount reducing quarterly. Two interest rate swaps are subject to mandatory early termination in 2024, at which time the swaps will be settled based on their fair value.

(3)Principal amount reduces monthly.

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

The following tables present the location and fair value amounts of derivative instruments, segregated by type of contract, on the Company’s unaudited consolidated balance sheets.


	Prepaid Expenses and Other	Goodwill, Intangibles and Other Non-Current Assets	Accrued Liabilities and Other (1)	Accrued Liabilities and Other (2)	Other Long-Term Liabilities
	$	$	$	$	$
As at September 30, 2021
Derivatives designated as a cash flow hedge:
Interest rate swap agreements	—	—	(62)	(3,037)	(4,674)
Derivatives not designated as a cash flow hedge:
Foreign currency contract	—	—	—	(56)	—
Interest rate swap agreements	—	2,004	(2,203)	(12,380)	(13,348)
Cross currency swap agreements	465	3,430	(740)	(11,908)	(7,889)
Forward freight agreements	—	—	—	(270)	—
	465	5,434	(3,005)	(27,651)	(25,911)


	Prepaid Expenses and Other	Goodwill, Intangibles and Other Non-Current Assets	Accrued Liabilities and Other (1)	Accrued Liabilities and Other (2)	Other Long-Term Liabilities
	$	$	$	$	$
As at December 31, 2020
Derivatives designated as a cash flow hedge:
Interest rate swap agreements	—	—	(70)	(3,162)	(9,631)
Derivatives not designated as a cash flow hedge:

Interest rate swap agreements	—	—	(5,372)	(43,590)	(16,048)
Cross currency swap agreements	—	4,505	(701)	(11,434)	(7,887)

	—	4,505	(6,143)	(58,186)	(33,566)

(1)Represents accrued interest related to derivative instruments presented in accrued liabilities and other on the consolidated balance sheets (see Note 7).

(2)Represents the current portion of derivative liabilities presented in accrued liabilities and other on the consolidated balance sheets (see Note 7).

Schedule of Cash Flow Hedges

For the periods indicated, the following tables present the (losses) gains on interest rate swap agreements designated and qualifying as cash flow hedges and their impact on other comprehensive income (loss) (or OCI) (excluding such agreements in equity-accounted investments):


	Three Months Ended September 30,		Nine Months Ended September 30,
	2021	2020	2021	2020
	$	$	$	$
Amount of gain (loss) recognized in OCI	1,040	616	5,080	(9,610)

Amount of loss reclassified from accumulated OCI to interest expense	(840)	(835)	(2,480)	(1,469)

Derivative Not Designated as Hedging Instruments [Table Text Block]

Realized and unrealized (losses) gains from derivative instruments that are not designated for accounting purposes as cash flow hedges are recognized in earnings and reported in realized and unrealized (losses) gains on non-designated derivatives in the unaudited consolidated statements of income (loss) as follows:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2021	2020	2021	2020
	$	$	$	$
Realized (losses) gains relating to:
Interest rate swap agreements	(4,238)	(5,349)	(13,509)	(11,905)
Interest rate swap agreement termination	—	—	(18,012)	—
Foreign currency forward contracts	—	379	—	138
Forward freight agreements	(359)	(183)	(420)	(433)
	(4,597)	(5,153)	(31,941)	(12,200)
Unrealized gains (losses) relating to:
Interest rate swap agreements	4,336	3,956	35,915	(20,107)
Foreign currency forward contracts	(56)	(53)	(56)	202
Forward freight agreements	136	(221)	(167)	(299)
	4,416	3,682	35,692	(20,204)
Total realized and unrealized (losses) gains on derivative instruments	(181)	(1,471)	3,751	(32,404)

Schedule of Derivative Gains and Losses in Consolidated Statements of Financial Performance [Table Text Block]

Realized and unrealized (losses) gains from cross currency swaps are recognized in earnings and reported in foreign exchange gain (loss) in the unaudited consolidated statements of income (loss) as follows:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2021	2020	2021	2020
	$	$	$	$
Realized losses on maturity and termination of cross currency swaps	—	—	—	(33,844)
Realized losses	(1,595)	(1,669)	(4,233)	(4,915)
Unrealized (losses) gains	(3,953)	1,489	(1,084)	(2,169)
Total realized and unrealized losses on cross currency swaps	(5,548)	(180)	(5,317)	(40,928)