Table of Contents


 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 _________________________
FORM 6-K
 _________________________
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the quarterly period ended June 30, 2019
Commission file number 1- 12874
 _________________________
TEEKAY CORPORATION
(Exact name of Registrant as specified in its charter)
 _________________________
Suite 2000, Bentall 5
550 Burrard Street
Vancouver, BC, V6C 2K2, Canada
(Address of principal executive office)
 _________________________
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F  ý            Form 40- F  ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1).
Yes  ¨            No   ý
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7).
Yes  ¨            No   ý







 

Page 1
Table of Contents


TEEKAY CORPORATION AND SUBSIDIARIES
REPORT ON FORM 6-K FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2019
INDEX

 
PAGE
 
 


Page 2
Table of Contents



ITEM 1 - FINANCIAL STATEMENTS
TEEKAY CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF LOSS
(in thousands of U.S. Dollars, except share and per share amounts)
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
 
$
 
$
 
$
 
$
Revenues (note 3)
457,667

 
405,642

 
938,880

 
799,664

Voyage expenses
(98,680
)
 
(94,912
)
 
(201,803
)
 
(180,789
)
Vessel operating expenses
(162,621
)
 
(161,787
)
 
(319,613
)
 
(319,222
)
Time-charter hire expenses (note 6)
(28,817
)
 
(20,648
)
 
(58,655
)
 
(40,059
)
Depreciation and amortization
(73,849
)
 
(67,960
)
 
(145,956
)
 
(135,271
)
General and administrative expenses
(20,868
)
 
(24,470
)
 
(43,840
)
 
(49,153
)
Write-down and loss on sales of vessels (note 7)
—

 
(32,830
)
 
(3,328
)
 
(51,492
)
Restructuring charges (note 13)
(1,369
)
 
(1,114
)
 
(9,990
)
 
(3,252
)
Income from vessel operations
71,463

 
1,921

 
155,695

 
20,426

Interest expense
(70,205
)

(59,526
)
 
(143,876
)
 
(114,151
)
Interest income
2,233

 
2,095

 
4,922

 
3,772

Realized and unrealized (losses) gains on non-designated derivative instruments (note 15)
(10,964
)
 
10,723

 
(16,387
)
 
20,149

Equity (loss) income (note 4)
(6,284
)
 
837

 
(67,937
)
 
27,954

Foreign exchange (loss) gain (notes 9 and 15)
(5,851
)
 
12,529

 
(8,481
)
 
12,551

Loss on deconsolidation of Teekay Offshore (note 4)
—

 
—

 
—

 
(7,070
)
Other (loss) income (note 9)
(11,099
)

520


(11,071
)

(395
)
Loss before income taxes
(30,707
)
 
(30,901
)
 
(87,135
)
 
(36,764
)
Income tax expense (note 16)
(3,404
)
 
(8,746
)
 
(8,440
)
 
(12,863
)
Net loss
(34,111
)
 
(39,647
)
 
(95,575
)
 
(49,627
)
Net (income) loss attributable to non-controlling interests
(5,374
)
 
11,323

 
(28,167
)
 
748

Net loss attributable to the shareholders of Teekay Corporation
(39,485
)
 
(28,324
)
 
(123,742
)
 
(48,879
)
Per common share of Teekay Corporation (note 17)
 
 
 
 
 
 
 
•  Basic and diluted loss attributable to shareholders of Teekay Corporation
(0.39
)
 
(0.28
)
 
(1.23
)
 
(0.49
)
Weighted average number of common shares outstanding (note 17)
 
 
 
 
 
 
 
•  Basic and diluted
100,783,496

 
100,434,512

 
100,652,685

 
98,892,574


The accompanying notes are an integral part of the unaudited consolidated financial statements.

Page 3
Table of Contents


TEEKAY CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(in thousands of U.S. Dollars)
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
 
$
 
$
 
$
 
$
Net loss
(34,111
)
 
(39,647
)
 
(95,575
)
 
(49,627
)
Other comprehensive (loss) income:
 
 
 
 
 
 
 
Other comprehensive (loss) income before reclassifications
 
 
 
 
 
 
 
Unrealized (loss) gain on qualifying cash flow hedging instruments
(30,743
)
 
7,054

 
(52,252
)
 
9,676

Pension adjustments, net of taxes
(85
)
 
181

 
(172
)
 
376

Foreign exchange gain on currency translation
—

 
426

 
—

 
49

Amounts reclassified from accumulated other comprehensive (loss) income relating to:
 
 
 
 
 
 
 
Realized (gain) loss on qualifying cash flow hedging instruments
 
 
 
 
 
 
 
To interest expense (note 15)
(157
)
 
(2
)
 
(408
)
 
248

To equity income
(197
)
 
(521
)
 
(697
)
 
(598
)
Loss on deconsolidation of Teekay Offshore (note 4)
—

 
—

 
—

 
7,720

Other comprehensive (loss) income
(31,182
)
 
7,138

 
(53,529
)
 
17,471

Comprehensive loss
(65,293
)
 
(32,509
)
 
(149,104
)
 
(32,156
)
Comprehensive loss (income) attributable to non-controlling interests
15,789

 
6,910

 
8,096

 
(5,664
)
Comprehensive loss attributable to shareholders of Teekay Corporation
(49,504
)
 
(25,599
)
 
(141,008
)
 
(37,820
)
The accompanying notes are an integral part of the unaudited consolidated financial statements.

Page 4
Table of Contents


TEEKAY CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
(in thousands of U.S. Dollars, except share amounts)
 
 
As at
June 30,
2019
 
As at
December 31,
2018
 
$
 
$
ASSETS

 
 
Current

 
 
Cash and cash equivalents (note 9 and 18)
235,199

 
424,169

Restricted cash – current (note 18)
50,798

 
40,493

Accounts receivable, including non-trade of $10,988 (2018 – $7,883) and related party balance of $18,014 (2018 – $57,062)
187,088

 
174,031

Accrued revenue
48,531

 
20,249

Prepaid expenses and other (notes 3 and 15)
108,274

 
69,882

Current portion of loans to equity-accounted investments (note 4)
93,924

 
169,197

Vessel held for sale (note 7)
12,300

 
—

Total current assets
736,114

 
898,021

Restricted cash – non-current (note 18)
36,886

 
40,977

Vessels and equipment (note 9)


 
 
At cost, less accumulated depreciation of $1,348,665 (2018 – $1,270,460)
3,228,349

 
3,362,937

Vessels related to finance leases, at cost, less accumulated amortization of $214,256 (2018 – $178,178) (note 6)
2,234,194

 
2,067,254

Operating lease right-of-use assets (notes 2 and 6)
185,716

 
—

Advances on newbuilding contracts
—

 
86,942

Total vessels and equipment
5,648,259

 
5,517,133

Net investment in direct financing leases – non-current (notes 3 and 6)
551,603

 
562,528

Investment in and loans to equity-accounted investments (notes 4 and 11a)
1,011,530

 
1,193,741

Goodwill, intangibles and other non-current assets (note 15)
141,626

 
179,270

Total assets
8,126,018

 
8,391,670

LIABILITIES AND EQUITY


 
 
Current


 
 
Accounts payable, accrued liabilities and other (notes 8, 13 and 15)
356,022

 
254,380

Loans from equity-accounted investments
27,607

 
75,292

Current portion of derivative liabilities (note 15)
28,481

 
12,205

Current portion of long-term debt (note 9)
540,440

 
242,137

Current obligations related to finance leases (note 6)
89,922

 
102,115

Current portion of operating lease liabilities (notes 2 and 6)
59,554

 
—

Total current liabilities
1,102,026

 
686,129

Long-term debt (note 9)
2,302,885

 
3,077,386

Long-term obligations related to finance leases (note 6)
1,736,810

 
1,571,730

Long-term operating lease liabilities (notes 2 and 6)
113,922

 
—

Derivative liabilities (note 15)
56,172

 
56,352

Other long-term liabilities (note 16)
141,578

 
133,045

Total liabilities
5,453,393

 
5,524,642

Commitments and contingencies (notes 6, 9, 11, and 15)


 


Equity


 
 
Common stock and additional paid-in capital ($0.001 par value; 725,000,000 shares authorized; 100,784,431 shares outstanding and issued (2018 – 100,435,210)) (note 10)
1,049,531

 
1,045,659

Accumulated deficit
(361,162
)
 
(234,395
)
Non-controlling interest
2,005,399

 
2,058,037

Accumulated other comprehensive loss
(21,143
)
 
(2,273
)
Total equity
2,672,625

 
2,867,028

Total liabilities and equity
8,126,018

 
8,391,670

The accompanying notes are an integral part of the unaudited consolidated financial statements.

Page 5
Table of Contents


TEEKAY CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of U.S. Dollars)
 
Six Months Ended June 30,
 
2019
 
2018
 
$
 
$
Cash, cash equivalents and restricted cash provided by (used for)
 
 
 
OPERATING ACTIVITIES
 
 
 
Net loss
(95,575
)
 
(49,627
)
Non-cash and non-operating items:
 
 
 
Depreciation and amortization
145,956

 
135,271

Unrealized loss (gain) on derivative instruments and loss on sale of warrants (note 15)
14,933

 
(35,515
)
Write-down and loss on sales of vessels (note 7)
3,328

 
51,492

Equity loss (income), net of dividends received
85,211

 
(15,207
)
Income tax expense
8,440

 
12,863

Foreign currency exchange loss and other
26,304

 
9,269

Direct financing lease payments received
6,050

 
—

Change in operating assets and liabilities
18,427

 
14,325

Expenditures for dry docking
(34,150
)
 
(12,437
)
Net operating cash flow
178,924

 
110,434

FINANCING ACTIVITIES
 
 
 
Proceeds from issuance of long-term debt, net of issuance costs
376,658

 
409,793

Prepayments of long-term debt
(759,401
)
 
(295,914
)
Scheduled repayments of long-term debt (note 9)
(117,110
)
 
(171,433
)
Proceeds from short-term debt
65,000

 
—

Prepayment of short-term debt
(50,000
)
 
—

Proceeds from financing related to sale-leaseback of vessels
222,400

 
243,812

Repayments of obligations related to finance leases
(45,928
)
 
(28,819
)
Net proceeds from equity issuances of Teekay Corporation (note 10)
—

 
103,657

Repurchase of Teekay LNG common units
(12,056
)
 
—

Distributions paid from subsidiaries to non-controlling interests
(30,465
)
 
(33,872
)
Cash dividends paid
(5,523
)
 
(11,036
)
Other financing activities
(580
)
 
(566
)
Net financing cash flow
(357,005
)
 
215,622

INVESTING ACTIVITIES
 
 
 
Expenditures for vessels and equipment, net of warranty settlement $44,890 (2018 – $nil) (note 11a)
(89,120
)
 
(315,348
)
Proceeds from sale of equity-accounted investments and related assets (note 4)
100,000

 
54,438

Investment in equity-accounted investments
(15,555
)
 
(27,629
)
Loans to joint ventures and joint venture partners
—

 
(24,971
)
Cash of transferred subsidiaries on sale, net of proceeds received (note 4)
—

 
(25,254
)
Other investing activities
—

 
5,560

Net investing cash flow
(4,675
)
 
(333,204
)
Decrease in cash, cash equivalents and restricted cash
(182,756
)
 
(7,148
)
Cash, cash equivalents and restricted cash, beginning of the period
505,639

 
552,174

Cash, cash equivalents and restricted cash, end of the period
322,883

 
545,026

Supplemental cash flow information (note 18)
 
 
 
The accompanying notes are an integral part of the unaudited consolidated financial statements.

Page 6
Table of Contents


TEEKAY CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY
(in thousands of U.S. Dollars, except share amounts)
 
 
TOTAL EQUITY
 
Thousands
of Shares
of Common
Stock
Outstanding
#
 
Common
Stock and
Additional
Paid-in
Capital
$
 
Accumulated
Deficit
$
 
Accumulated
Other
Compre-
hensive
Loss
$
 
Non-
controlling
Interests
$
 
Total
$
Balance as at December 31, 2018
100,435

 
1,045,659

 
(234,395
)
 
(2,273
)
 
2,058,037

 
2,867,028

Net (loss) income
—

 
—

 
(84,257
)
 
—

 
22,793

 
(61,464
)
Other comprehensive loss
—

 
—

 
—

 
(7,247
)
 
(15,100
)
 
(22,347
)
Dividends declared:
 
 
 
 
 
 
 
 
 
 
 
Common stock ($0.055 per share)
—

 
—

 
(5,385
)
 
—

 
—

 
(5,385
)
Other dividends
—

 
—

 
—

 
—

 
(13,892
)
 
(13,892
)
Employee stock compensation and other (note 10)
264

 
2,964

 
—

 
—

 
—

 
2,964

Change in accounting policy (note 2)
—

 
—

 
606

 
(1,604
)
 
(1,993
)
 
(2,991
)
Changes to non-controlling interest from equity contributions and other (note 2)
—

 
—

 
1,526

 
—

 
(9,349
)
 
(7,823
)
Balance as at March 31, 2019
100,699

 
1,048,623

 
(321,905
)
 
(11,124
)
 
2,040,496

 
2,756,090

Net (loss) income
—

 
—

 
(39,485
)
 
—

 
5,374

 
(34,111
)
Other comprehensive loss
—

 
—

 
—

 
(10,019
)
 
(21,163
)
 
(31,182
)
Other dividends
—

 
—

 
—

 
—

 
(16,574
)
 
(16,574
)
Employee stock compensation and other (note 10)
85

 
908

 
—

 
—

 
—

 
908

Changes to non-controlling interest from equity contributions and other (note 2)
—

 
—

 
228

 
—

 
(2,734
)
 
(2,506
)
Balance as at June 30, 2019
100,784

 
1,049,531

 
(361,162
)
 
(21,143
)
 
2,005,399

 
2,672,625

























Page 7
Table of Contents


TEEKAY CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN TOTAL EQUITY
(in thousands of U.S. Dollars, except share amounts)

 
TOTAL EQUITY
 
Thousands
of Shares
of Common
Stock
Outstanding
#
 
Common
Stock and
Additional
Paid-in
Capital
$
 
Accumulated
Deficit
$
 
Accumulated
Other
Compre-
hensive
(Loss) Income
$
 
Non-
controlling
Interests
$
 
Total
$
Balance as at December 31, 2017
89,127

 
919,078

 
(135,892
)
 
(5,995
)
 
2,102,465

 
2,879,656

Net (loss) income
—

 
—

 
(20,555
)
 
—

 
10,575

 
(9,980
)
Other comprehensive income
—

 
—

 
—

 
8,334

 
1,999

 
10,333

Dividends declared:
 
 
 
 
 
 
 
 
 
 
 
Common stock ($0.055 per share)
—

 
—

 
(5,445
)
 
—

 
—

 
(5,445
)
Other dividends
—

 
—

 
—

 
—

 
(19,824
)
 
(19,824
)
Employee stock compensation and other (note 10)
180

 
4,430

 
—

 
—

 
—

 
4,430

Proceeds from equity offerings, net of offering costs (note 10)
11,127

 
103,696

 
—

 
—

 
—

 
103,696

Equity component of convertible notes (note 9)
—

 
16,099

 
—

 
—

 
—

 
16,099

Changes to non-controlling interest from equity contributions and other
—

 
—

 
1,988

 
99

 
3,059

 
5,146

Balance as at March 31, 2018
100,434

 
1,043,303

 
(159,904
)
 
2,438

 
2,098,274

 
2,984,111

Net loss
—

 
—

 
(28,324
)
 
—

 
(11,323
)
 
(39,647
)
Other comprehensive income
—

 
—

 
—

 
2,725

 
4,413

 
7,138

Dividends declared:
 
 
 
 
 
 
 
 
 
 
 
Common stock ($0.055 per share)
—

 
—

 
(5,604
)
 
—

 
—

 
(5,604
)
Other dividends
—

 
—

 
—

 
—

 
(14,048
)
 
(14,048
)
Employee stock compensation and other (note 10)
1

 
1,488

 
—

 
—

 
—

 
1,488

Proceeds from equity offerings, net of offering costs (note 10)
—

 
(39
)
 
—

 
—

 
—

 
(39
)
Changes to non-controlling interest from equity contributions and other
—

 
—

 
81

 
—

 
133

 
214

Balance as at June 30, 2018
100,435

 
1,044,752

 
(193,751
)
 
5,163

 
2,077,449

 
2,933,613

The accompanying notes are an integral part of the unaudited consolidated financial statements.

Page 8
Table of Contents
TEEKAY CORPORATION AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(all tabular amounts stated in thousands of U.S. Dollars, other than share and per share data)


1.
Basis of Presentation
The unaudited interim consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (or GAAP). They include the accounts of Teekay Corporation (or Teekay), which is incorporated under the laws of the Republic of the Marshall Islands, its wholly-owned or controlled subsidiaries and any variable interest entities (or VIEs) of which it is the primary beneficiary (collectively, the Company).

Certain of Teekay’s significant non-wholly owned subsidiaries are consolidated in these financial statements even though Teekay owns less than a 50% ownership interest in the subsidiaries. These significant subsidiaries include the publicly-traded subsidiaries Teekay LNG Partners L.P. (or Teekay LNG) and Teekay Tankers Ltd. (or Teekay Tankers).
 
Certain information and footnote disclosures required by GAAP for complete annual financial statements have been omitted from these unaudited interim consolidated financial statements and, therefore, these financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2018, included in the Company’s Annual Report on Form 20-F, filed with the U.S. Securities and Exchange Commission (or SEC) on April 1, 2019. In the opinion of management, these unaudited interim consolidated financial statements reflect all adjustments, consisting of a normal recurring nature, necessary to present fairly, in all material respects, the Company’s consolidated financial position, results of operations, cash flows and changes in total equity for the interim periods presented. The results of operations for the three and six months ended June 30, 2019, are not necessarily indicative of those for a full fiscal year. Significant intercompany balances and transactions have been eliminated upon consolidation.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. It is possible that the amounts recorded as derivative assets and liabilities could vary by material amounts prior to their settlement.
2. Recent Accounting Pronouncements
In February 2016, the Financial Accounting Standards Board (or FASB) issued Accounting Standards Update 2016-02, Leases (or ASU 2016-02). ASU 2016-02 establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. For lessees, leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 requires lessors to classify leases as a sales-type, direct financing or operating lease. A lease is a sales-type lease if any one of five criteria are met, each of which indicate that the lease, in effect, transfers control of the underlying asset to the lessee. If none of those five criteria are met, but two additional criteria are both met, indicating that the lessor has transferred substantially all of the risks and benefits of the underlying asset to the lessee and a third party, the lease is a direct financing lease. All leases that are not sales-type leases or direct financing leases are operating leases. ASU 2016-02 became effective for the Company on January 1, 2019. FASB issued an additional accounting standards update in July 2018 that made further amendments to accounting for leases, including allowing the use of a transition approach whereby a cumulative effect adjustment is made as of the effective date, with no retrospective effect and providing an optional practical expedient to lessors not to separate lease and non-lease components of a contract if certain criteria are met. In addition, the Company early adopted ASU 2019-01, which provides an exception for lessors who are not manufacturers or dealers to determine the fair value of leased property using the underlying asset's cost, instead of fair value. The Company has elected to use this new optional transitional approach. To determine the cumulative effect adjustment, the Company has not reassessed lease classification, initial direct costs for any existing leases, or whether any expired or existing contracts are or contain leases. The Company identified the following differences:

•
The adoption of ASU 2016-02 results in a change in the accounting method for the lease portion of the daily charter hire for the chartered-in vessels by the Company and the Company's equity-accounted joint ventures accounted for as operating leases with firm periods of greater than one year, as well as a small number of office leases. On January 1, 2019, a right-of-use asset of $170.0 million and a lease liability of $170.0 million were recognized, equal to the present value of future minimum lease payments. On June 30, 2019, the right-of-use asset relating to vessels was $173.5 million and the lease liability was $173.5 million. The carrying value of the Company's chartered-in vessels has also been reclassified from other non-current assets ($12.2 million – June 30, 2019 and $13.7 million – January 1, 2019) and from other long-term liabilities ($nil – June 30, 2019 and $0.9 million – January 1, 2019) to the right-of-use asset. In addition, on June 30, 2019 the right-of-use asset relating to office leases was $8.5 million and is presented in other non-current assets. The lease liability relating to office leases, presented in accounts payable, accrued liabilities and other and other long-term liabilities, was $8.7 million, and $0.2 million was reflected as a foreign exchange loss during the six months ended June 30, 2019. Under ASU 2016-02, the Company and the Company's equity-accounted joint ventures recognize a right-of-use asset and a lease liability on the balance sheet for these charters and office leases based on the present value of future minimum lease payments, whereas previously no right-of-use asset or lease liability was recognized. This resulted in an increase in the Company's and its equity-accounted joint ventures' assets and liabilities. The pattern of expense recognition of chartered-in vessels is expected to remain substantially unchanged from the prior policy, unless the right-of-use asset becomes impaired.


Page 9
Table of Contents
TEEKAY CORPORATION AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(all tabular amounts stated in thousands of U.S. Dollars, other than share and per share data)

•
The adoption of ASU 2016-02 results in the recognition of revenue from the reimbursement of scheduled dry-dock expenditures, where such charter contract is accounted for as an operating lease, occurring upon completion of the scheduled dry-dock, instead of ratably over the period between the previous scheduled dry-dock and the next scheduled dry-dock. This change decreased investment in and loans to equity-accounted investments by $3.0 million, and total equity by $3.0 million as at June 30, 2019. The cumulative decrease to opening equity as at January 1, 2019 was $3.0 million.

•
The adoption of ASU 2016-02 results in direct financing lease payments received being presented as an operating cash inflow instead of an investing cash inflow in the consolidated statement of cash flows. Direct financing lease payments received during the three and six months ended June 30, 2019 were $3.0 million and $6.1 million, respectively (three and six months ended June 30, 2018 – $2.8 million and $5.2 million, respectively).

•
The adoption of ASU 2016-02 results in sale and leaseback transactions where the seller lessee has a fixed price repurchase option or other situations where the leaseback would be classified as a finance lease being accounted for as a failed sale of the vessel and a failed purchase of the vessel by the buyer lessor. Prior to the adoption of ASU 2016-02 such transactions were accounted for as a completed sale and a completed purchase. Consequently, for such transactions, the Company does not derecognize the vessel sold and continues to depreciate the vessel as if it was the legal owner. Proceeds received from the sale of the vessel are recognized as an obligation related to finance lease, and bareboat charter hire payments made by the Company to the lessor are allocated between interest expense and principal repayments on the obligation related to finance lease. The adoption of ASU 2016-02 has resulted in the sale and leaseback of the Yamal Spirit, the Cascade Spirit and the Aspen Spirit during the first half of 2019 being accounted for as failed sales and unlike the 22 sale-leaseback transactions entered in prior years, the Company is not considered as holding a variable interest in the buyer lessor entity and thus, does not consolidate the buyer lessor entity (see Note 6).

The Company's floating production, storage and offloading (or FPSO) contracts, time charters and voyage charters include both a lease component, consisting of the lease of the vessel, and a non-lease component, consisting of the operation of the vessel for the customer. The Company has elected not to separate the non-lease component from the lease component for all such charters, where the lease component is classified as an operating lease and certain other required criteria are met, and to account for the combined component as an operating lease in accordance with Accounting Standards Codification (or ASC) 842 Leases.

In August 2017, the FASB issued Accounting Standards Update 2017-12, Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities (or ASU 2017-12). ASU 2017-12 eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires, for qualifying hedges, the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The guidance also modifies the accounting for components excluded from the assessment of hedge effectiveness, eases documentation and assessment requirements and modifies certain disclosure requirements. ASU 2017-12 became effective for the Company on January 1, 2019. This change decreased accumulated other comprehensive (loss) income by $4.8 million as at January 1, 2019, and correspondingly increased opening equity as at January 1, 2019 by $4.8 million.

In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (or ASU 2016-13). ASU 2016-13 replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This update is effective for the Company on January 1, 2020, with a modified-retrospective approach. The Company is currently evaluating the effect of adopting this new guidance.
3. Revenues
The Company’s primary source of revenue is chartering its vessels and offshore units to its customers. The Company utilizes four primary forms of contracts, consisting of time-charter contracts, voyage charter contracts, bareboat charter contracts and contracts for FPSO units. The Company also generates revenue from the management and operation of vessels owned by third parties and by equity-accounted investments as well as providing corporate management services to such entities. For a description of these contracts, see "Item 18 – Financial Statements: Note 2" in the Company’s Annual Report on Form 20-F for the year ended December 31, 2018.


Page 10
Table of Contents
TEEKAY CORPORATION AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(all tabular amounts stated in thousands of U.S. Dollars, other than share and per share data)

Revenue Table
The following tables contain the Company’s revenue for the three and six months ended June 30, 2019 and 2018, by contract type, by segment and by business lines within segments.
 
Three Months Ended June 30, 2019
 
Teekay LNG
Liquefied
Gas
Carriers
Teekay LNG
Conventional
Tankers
Teekay
Tankers
Conventional
Tankers
Teekay
Parent
Offshore
Production
Teekay
Parent
Other
Eliminations
and Other
Total
 
 
 
$
$
$
$
$
$
$
Time charters
133,684

2,369

1,456

—

8,078

(2,487
)
143,100

Voyage charters
8,858

—

186,805

—

—

—

195,663

Bareboat charters
6,129

—

—

—

—

—

6,129

FPSO contracts
—

—

—

57,828

—

—

57,828

Management fees and other
2,020

—

14,016

—

39,911

(1,000
)
54,947

 
150,691

2,369

202,277

57,828

47,989

(3,487
)
457,667


 
Three Months Ended June 30, 2018
 
Teekay LNG
Liquefied
Gas
Carriers
Teekay LNG
Conventional
Tankers
Teekay
Tankers
Conventional
Tankers
Teekay
Parent
Offshore
Production
Teekay
Parent
Other
Eliminations
and Other
Total
 
 
 
$
$
$
$
$
$
$
Time charters
96,857

4,316

17,384

—

7,588

(1,439
)
124,706

Voyage charters
6,767

5,719

144,328

—

—

—

156,814

Bareboat charters
5,734

—

—

—

—

—

5,734

FPSO contracts
—

—

—

66,429

—

—

66,429

Management fees and other
2,814

108

9,947

—

38,595

495

51,959

 
112,172

10,143

171,659

66,429

46,183

(944
)
405,642

 
Six Months Ended June 30, 2019
 
Teekay LNG
Liquefied
Gas
Carriers
Teekay LNG
Conventional
Tankers
Teekay
Tankers
Conventional
Tankers
Teekay
Parent
Offshore
Production
Teekay
Parent
Other
Eliminations
and Other
Total
 
 
 
$
$
$
$
$
$
$
Time charters
264,459

5,131

4,866

—

14,347

(2,487
)
286,316

Voyage charters
18,018

—

403,222

—

—

—

421,240

Bareboat charters
12,191

—

—

—

—

—

12,191

FPSO contracts
—

—

—

107,266

—

—

107,266

Management fees and other
3,005

—

26,690

—

84,301

(2,129
)
111,867

 
297,673

5,131

434,778

107,266

98,648

(4,616
)
938,880

 
Six Months Ended June 30, 2018
 
Teekay LNG
Liquefied
Gas
Carriers
Teekay LNG
Conventional
Tankers
Teekay
Tankers
Conventional
Tankers
Teekay
Parent
Offshore
Production
Teekay
Parent
Other
Eliminations
and Other
Total
 
 
 
$
$
$
$
$
$
$
Time charters
190,316

9,714

39,494

—

20,682

(9,418
)
250,788

Voyage charters
10,390

10,470

279,970

—

—

—

300,830

Bareboat charters
11,111

—

—

—

—

—

11,111

FPSO contracts
—

—

—

132,399

—

—

132,399

Management fees and other
5,404

216

20,660

—

77,445

811

104,536

 
217,221

20,400

340,124

132,399

98,127

(8,607
)
799,664



Page 11
Table of Contents
TEEKAY CORPORATION AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(all tabular amounts stated in thousands of U.S. Dollars, other than share and per share data)

The following table contains the Company's total revenue for the three and six months ended June 30, 2019 and 2018, by contracts or components of contracts accounted for as leases and those not accounted for as leases.
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2019
 
2018
 
2019
 
2018
 
 
$
 
$
 
$
 
$
Lease revenue
 
 
 
 
 
 
 
 
Lease revenue from lease payments of operating leases
 
354,410

 
302,010

 
737,553

 
596,565

Interest income on lease receivables
 
12,969

 
9,954

 
25,763

 
19,914

Variable lease payments – cost reimbursements (1)
 
13,307

 
10,169

 
25,314

 
18,677

Variable lease payments – other (2)
 
16,320

 
27,426

 
27,144

 
51,708

 
 
397,006

 
349,559

 
815,774

 
686,864

Non-lease revenue
 
 
 
 
 
 
 
 
Non-lease revenue – related to sales-type or direct financing leases
 
5,714

 
4,124

 
11,239

 
8,264

Management fees and other income
 
54,947

 
51,959

 
111,867

 
104,536

 
 
60,661

 
56,083

 
123,106

 
112,800

Total
 
457,667

 
405,642

 
938,880

 
799,664

(1)
Reimbursement for vessel operating expenditures and dry-docking expenditures received from the Company's customers relating to such costs incurred by the Company to operate the vessel for the customer.
(2)
Compensation from time-charter contracts based on spot market rates in excess of a base daily hire amount, production tariffs, which are based on the volume of oil produced, the price of oil, as well as other monthly or annual operational performance measures.
Operating Leases

As at June 30, 2019, the minimum scheduled future rentals to be received by the Company in each of the next five years for the lease and non-lease elements related to time-charters, bareboat charters and FPSO contracts that were accounted for as operating leases were approximately $387.5 million (remainder of 2019), $647.4 million (2020), $533.2 million (2021), $429.7 million (2022) and $319.7 million (2023).

As at December 31, 2018, the minimum scheduled future rentals to be received by the Company in each of the next five years for the lease and non-lease elements related to time-charters, bareboat charters and FPSO contracts that were accounted for as operating leases were approximately $630.8 million (2019), $524.6 million (2020), $457.5 million (2021), $382.0 million (2022) and $291.8 million (2023).

Minimum scheduled future revenues should not be construed to reflect total charter hire revenues for any of the years. Minimum scheduled future revenues do not include revenue generated from new contracts entered into after June 30, 2019 or after December 31, 2018, as applicable, revenue from unexercised option periods of contracts that existed on June 30, 2019 or on December 31, 2018, as applicable, revenue from vessels in the Company’s equity-accounted investments, or variable or contingent revenues accounted for under ASC 842 Leases. In addition, minimum scheduled future operating lease revenues presented in this paragraph have been reduced by estimated off-hire time for any periodic maintenance. The amounts may vary given unscheduled future events such as vessel maintenance.

The net carrying amount of the vessels employed on time-charter contracts, bareboat charter contracts and FPSO contracts that have been accounted for as operating leases at June 30, 2019, was $3.5 billion (December 31, 2018 – $3.4 billion). At June 30, 2019, the cost and accumulated depreciation of such vessels were $4.3 billion (December 31, 2018 – $4.3 billion) and $0.9 billion (December 31, 2018 – $0.8 billion), respectively.


Page 12
Table of Contents
TEEKAY CORPORATION AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(all tabular amounts stated in thousands of U.S. Dollars, other than share and per share data)

Net Investment in Direct Financing Leases
Teekay LNG's time-charter contracts accounted for as direct financing leases contain both a lease component (lease of the vessel) and a non-lease component (operation of the vessel). Teekay LNG has allocated the contract consideration between the lease component and non-lease component on a relative standalone selling price basis. The standalone selling price of the non-lease component has been determined using a cost-plus approach, whereby Teekay LNG estimates the cost to operate the vessel using cost benchmarking studies prepared by a third party, when available, or internal estimates when not available, plus a profit margin. The standalone selling price of the lease component has been determined using an adjusted market approach, whereby Teekay LNG calculates a rate excluding the operating component based on a market time-charter rate from published broker estimates, when available, or internal estimates when not available. Given that there are no observable standalone selling prices for either of these two components, judgment is required in determining the standalone selling price of each component.
Teekay LNG has three liquefied natural gas (or LNG) carriers, excluding vessels in its equity-accounted joint ventures, which are accounted for as direct financing leases. For a description of Teekay LNG's LNG carriers accounted for as direct financing leases, see "Item 18 – Financial Statements: Note 2" to the Company's Annual Report on Form 20-F for the year ended December 31, 2018. The following table lists the components of Teekay LNG's net investments in direct financing leases:
 
June 30, 2019
 
December 31, 2018
 
$
 
$
Total minimum lease payments to be received
865,333

 
897,130

Estimated unguaranteed residual value of leased properties
291,098

 
291,098

Initial direct costs and other
312

 
329

Less unearned revenue
(592,058
)
 
(613,394
)
Total
564,685

 
575,163

Less current portion
(13,082
)
 
(12,635
)
Long-term portion
551,603

 
562,528


As at June 30, 2019, estimated minimum lease payments to be received by Teekay LNG related to its direct financing leases in each of the next five years are approximately $32.3 million (2019), $64.2 million (2020), $64.2 million (2021), $64.2 million (2022), $64.0 million (2023) and an aggregate of $576.4 million thereafter. The leases are scheduled to end between 2029 and 2039.

As at December 31, 2018, estimated minimum lease payments to be received by Teekay LNG related to its direct financing leases in each of the next five years are approximately $64.2 million (2019), $64.3 million (2020), $64.2 million (2021), $64.2 million (2022), $64.0 million (2023) and an aggregate of $576.2 million thereafter. The leases are scheduled to end between 2029 and 2039.
Contract Liabilities

The Company enters into certain customer contracts that result in situations where the customer will pay consideration upfront for performance to be provided in the following month or months. These receipts are contract liabilities and are presented as deferred revenue until performance is provided. As at June 30, 2019, December 31, 2018, June 30, 2018 and on transition to ASC 606 on January 1, 2018, there were contract liabilities of $27.2 million, $26.4 million, $23.3 million and $29.5 million, respectively. During the three months ended June 30, 2019 and June 30, 2018, the Company recognized $20.4 million and $20.5 million of revenue, respectively, that was recognized as a contract liability at the beginning of such three-month periods. During the six months ended June 30, 2019 and June 30, 2018, the Company recognized $26.4 million and $28.9 million of revenue, respectively, that was recognized as a contract liability at the beginning of such six-month periods.
4. Related Party Transactions
On May 8, 2019, Teekay sold to Brookfield Business Partners L.P. (or Brookfield) all of the Company’s remaining interests in Teekay Offshore (or the 2019 Brookfield Transaction), which included the Company’s 49% general partner interest, common units, warrants, and an outstanding $25 million loan from the Company to Teekay Offshore (described below), for total cash proceeds of $100 million. Prior to the 2019 Brookfield Transaction, Teekay Offshore was a related party of Teekay.

Subsequent to the deconsolidation of Teekay Offshore in September 2017 and prior to the 2019 Brookfield Transaction, the Company accounted for its investment in Teekay Offshore's general partner and common units under the equity method of accounting. Based on the 2019 Brookfield Transaction, the Company remeasured its investment in Teekay Offshore to fair value at March 31, 2019 based on the Teekay Offshore publicly-traded unit price at that date, resulting in a write-down of $64.9 million reflected in equity loss on the Company's consolidated statements of loss for the six months ended June 30, 2019. The Company recognized a loss on sale of $8.9 million on completion of the 2019 Brookfield Transaction in May 2019.


Page 13
Table of Contents
TEEKAY CORPORATION AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(all tabular amounts stated in thousands of U.S. Dollars, other than share and per share data)

As at June 30, 2019, Teekay Offshore is no longer a party related to Teekay. Advances from Teekay to Teekay Offshore as at December 31, 2018 were $83.1 million and advances from Teekay Offshore to Teekay as at December 31, 2018 were $59.3 million. Such amounts were included in current portion of loans to equity-accounted investments and loans from equity-accounted investments, respectively, on the Company's consolidated balance sheet as at December 31, 2018. Advances from Teekay to Teekay Offshore and advances from Teekay Offshore to Teekay were included in accounts receivable and accounts payable, respectively, on the Company's consolidated balance sheet as at June 30, 2019.

In March 2018, Teekay Offshore entered into a loan agreement for a $125.0 million senior unsecured revolving credit facility, of which up to $25.0 million was provided by Teekay and up to $100.0 million was provided by Brookfield. Teekay’s $25.0 million loan to Teekay Offshore was among the assets sold by Teekay to Brookfield in the 2019 Brookfield Transaction.

On September 25, 2017, Teekay, Teekay Offshore and Brookfield completed a strategic partnership (or the 2017 Brookfield Transaction), which resulted in the deconsolidation of Teekay Offshore as of that date. Until December 31, 2017, Teekay and its wholly-owned subsidiaries directly and indirectly provided substantially all of Teekay Offshore’s ship management, commercial, technical, strategic, business development and administrative service needs. On January 1, 2018, as part of the 2017 Brookfield Transaction, Teekay Offshore acquired a 100% ownership interest in seven subsidiaries (or the Transferred Subsidiaries) of Teekay at carrying value. The Company recognized a loss of $7.1 million for the six months ended June 30, 2018 related to the sale of the Transferred Subsidiaries and the resultant release of accumulated pension losses from accumulated other comprehensive income, which is recorded in loss on deconsolidation of Teekay Offshore on the Company's consolidated statements of loss. Specifically, the Transferred Subsidiaries provided ship management, commercial, technical, strategic, business development and administrative services to Teekay Offshore, primarily related to Teekay Offshore's FPSO units, shuttle tankers and floating storage and offtake (or FSO) units.

Subsequent to their transfer to Teekay Offshore, the Transferred Subsidiaries continue to provide ship management, commercial, technical, strategic, business development and administrative services to Teekay, primarily related to Teekay's FPSO units. Teekay and certain of its subsidiaries, other than the Transferred Subsidiaries, continue to provide certain other ship management, commercial, technical, strategic and administrative services to Teekay Offshore.

Revenues recognized by the Company for services provided to Teekay Offshore for the periods from April 1, 2019 to May 8, 2019 and January 1, 2019 to May 8, 2019 were $2.3 million and $7.6 million, respectively (three and six months ended June 30, 2018 – $4.5 million and $11.1 million, respectively), which were recorded in revenues on the Company's consolidated statements of loss. Fees paid by the Company to Teekay Offshore for services provided by Teekay Offshore to the Company for the periods from April 1, 2019 to May 8, 2019 and January 1, 2019 to May 8, 2019 were $3.3 million and $9.6 million, respectively (three and six months ended June 30, 2018 – $6.8 million and $13.3 million, respectively), which were recorded in vessel operating expenses and general and administrative expenses on the Company's consolidated statements of loss.

As at June 30, 2019, two shuttle tankers and three FSO units of Teekay Offshore were employed on long-term time-charter-out or bareboat contracts to subsidiaries of Teekay. Time-charter hire expenses paid by the Company to Teekay Offshore for the periods from April 1, 2019 to May 8, 2019 and January 1, 2019 to May 8, 2019 were $6.1 million and $20.8 million, respectively (three and six months ended June 30, 2018 – $14.0 million and $28.0 million, respectively).

In September 2018, Teekay LNG entered into an agreement with its 52%-owned joint venture with Marubeni Corporation (or the Teekay LNG-Marubeni Joint Venture) to charter in one of Teekay LNG-Marubeni Joint Venture's LNG carriers, the Magellan Spirit, for a period of two years at a fixed-rate. Time-charter hire expense for the three and six months ended June 30, 2019 were $3.1 million and $8.7 million, respectively.

The Company provides ship management and corporate services to certain of its equity-accounted joint ventures that own and operate LNG carriers on long-term charters. In addition, the Company is reimbursed for costs incurred by the Company for its seafarers operating these LNG carriers. During the three and six months ended June 30, 2019, the Company earned $16.8 million and $32.6 million, respectively (three and six months ended June 30, 2018 – $13.1 million and $25.7 million, respectively), of fees pursuant to these management agreements and reimbursement of costs.
5. Segment Reporting
The Company’s segments are described in "Item 18 – Financial Statements: Note 3" to the Company’s Annual Report on Form 20-F for the year ended December 31, 2018. The Company allocates capital and assesses performance from the separate perspectives of its two publicly-traded subsidiaries Teekay LNG and Teekay Tankers (together, the Controlled Daughter Entities), Teekay and its remaining subsidiaries (or Teekay Parent), and, prior to the completion of the 2019 Brookfield Transaction, its equity-accounted investment in Teekay Offshore, as well as from the perspective of the Company's lines of business. The primary focus of the Company’s organizational structure, internal reporting and allocation of resources by the chief operating decision maker is on the Controlled Daughter Entities, Teekay Parent and, prior to the completion of the 2019 Brookfield Transaction, its equity-accounted investment in Teekay Offshore, (the Legal Entity approach), and its segments are presented accordingly on this basis. The Company (which excludes Teekay Offshore) has three primary lines of business: (1) offshore production (FPSO units), (2) LNG and liquefied petroleum gas (or LPG) carriers, and (3) conventional tankers. The Company manages these businesses for the benefit of all stakeholders. The Company incorporates the primary lines of business within its segments, as in certain cases there is more than one line of business in each Controlled Daughter Entity and the Company believes this information allows a better understanding of the Company’s performance and prospects for future net cash flows.

Page 14
Table of Contents
TEEKAY CORPORATION AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(all tabular amounts stated in thousands of U.S. Dollars, other than share and per share data)

The following table includes the Company’s revenues by segment for the three and six months ended June 30, 2019 and 2018:
 
Revenues
 
Three Months Ended June 30,
Six Months Ended June 30,
 
2019
2018
2019
2018
 
$
$
$
$
Teekay LNG
 
 
 
 
Liquefied Gas Carriers(1)
150,691

112,172

297,673

217,221

Conventional Tankers
2,369

10,143

5,131

20,400

 
153,060

122,315

302,804

237,621

 
 
 
 
 
Teekay Tankers
 
 
 
 
Conventional Tankers(1)
202,277

171,659

434,778

340,124

 
 
 
 
 
Teekay Parent
 
 
 
 
Offshore Production
57,828

66,429

107,266

132,399

Other
47,989

46,183

98,648

98,127

 
105,817

112,612

205,914

230,526

 
 
 
 
 
Eliminations and other
(3,487
)
(944
)
(4,616
)
(8,607
)
 
457,667

405,642

938,880

799,664


(1)
The amounts in the table below represent revenue earned by each segment from other segments within the group. During 2019, Teekay Tankers' ship-to-ship transfer business provided operational and maintenance services to Teekay LNG Bahrain Operations L.L.C., an entity wholly-owned by Teekay LNG, for the LNG receiving and regasification terminal in Bahrain. Also during 2019, the Magellan Spirit was chartered by Teekay LNG to Teekay Parent. During 2018, certain vessels were chartered by Teekay LNG to Teekay Parent. Such intersegment revenue for the three and six months ended June 30, 2019 and 2018 is as follows:
 
Three Months Ended June 30,
Six Months Ended June 30,
 
2019
2018
2019
2018
 
$
$
$
$
Teekay LNG - Liquefied Gas Carriers
2,487

1,439

2,487

9,418

Teekay Tankers - Conventional Tankers
1,000

—

2,129

—

 
3,487

1,439

4,616

9,418


The following table includes the Company’s income (loss) from vessel operations by segment for the three and six months ended June 30, 2019 and 2018:
 
Income (Loss) from Vessel Operations(1)
 
Three Months Ended June 30,
Six Months Ended June 30,
 
2019
2018
2019
2018
 
$
$
$
$
Teekay LNG
 
 
 
 
Liquefied Gas Carriers
74,244

9,445

144,687

53,990

Conventional Tankers
433

1,060

(649
)
(18,343
)
 
74,677

10,505

144,038

35,647

 
 
 
 
 
Teekay Tankers
 
 
 
 
Conventional Tankers
5,051

(13,415
)
37,148

(21,836
)
 
 
 
 
 
Teekay Parent
 
 
 
 
Offshore Production
(5,987
)
5,541

(18,544
)
12,423

Other
(2,278
)
(710
)
(6,947
)
(5,808
)
 
(8,265
)
4,831

(25,491
)
6,615

 
 
 
 
 
 
71,463

1,921

155,695

20,426



Page 15
Table of Contents
TEEKAY CORPORATION AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(all tabular amounts stated in thousands of U.S. Dollars, other than share and per share data)

(1)
Includes direct general and administrative expenses and indirect general and administrative expenses (allocated to each segment based on estimated use of corporate resources).
Prior to its sale in May 2019, the Company accounted for its investment in Teekay Offshore's general partner and common units using the equity method and recognized equity losses in respect of Teekay Offshore for the periods from April 1, 2019 to May 8, 2019 and January 1, 2019 to May 8, 2019 of $nil and $3.1 million, respectively (three and six months ended June 30, 2018 – equity losses of $9.3 million and $8.7 million, respectively). The Company wrote-down the investment in Teekay Offshore by $64.9 million in the six months ended June 30, 2019 and recognized a loss on sale of $8.9 million in the three and six months ended June 30, 2019.
A reconciliation of total segment assets to total assets presented in the accompanying unaudited consolidated balance sheets is as follows:
 
June 30, 2019
December 31, 2018
 
$
$
Teekay LNG – Liquefied Gas Carriers
5,207,739

5,188,088

Teekay LNG – Conventional Tankers
13,748

39,450

Teekay Tankers – Conventional Tankers
2,118,499

2,106,169

Teekay Parent – Offshore Production
361,785

311,550

Teekay Parent – Conventional Tankers
—

13,056

Teekay Parent – Other
91,683

25,224

Teekay Offshore
—

233,225

Cash and cash equivalents
235,199

424,169

Other assets not allocated
130,348

70,153

Eliminations
(32,983
)
(19,414
)
Consolidated total assets
8,126,018

8,391,670

6. Leases
Obligations Related to Finance Leases

June 30, 2019

December 31, 2018

$

$
Teekay LNG
 
 
 
LNG Carriers
1,399,796

 
1,274,569

Suezmax Tanker
—

 
23,987

Teekay Tankers
 
 
 
Suezmax Tankers
222,859

 
165,145

Aframax Tankers
178,518

 
184,021

LR2 Product Tanker
25,559

 
26,123

Total obligations related to finance leases
1,826,732

 
1,673,845

Less current portion
(89,922
)
 
(102,115
)
Long-term obligations related to finance leases
1,736,810

 
1,571,730


Teekay LNG

As at June 30, 2019, Teekay LNG was a party to finance leases on nine LNG carriers (December 31, 2018 – eight LNG carriers). Upon delivery of these nine LNG carriers between February 2016 and January 2019, Teekay LNG sold these vessels to third parties (or Lessors) and leased them back under 10- to 15-year bareboat charter contracts ending in 2026 through to 2034. At the inception of these leases, the weighted-average interest rate implicit in these leases was 5.2%. The bareboat charter contracts are presented as obligations related to finance leases on the Company's consolidated balance sheets and have purchase obligations at the end of the lease terms.

Teekay LNG consolidates eight of the nine Lessors for financial reporting purposes as variable interest entities. Teekay LNG understands that these vessels and lease operations are the only assets and operations of the Lessors. Teekay LNG operates the vessels during the lease term and as a result, is considered to be, under GAAP, the Lessor's primary beneficiary.

The liabilities of the eight Lessors are loans and are non-recourse to Teekay LNG. The amounts funded to the eight Lessors in order to purchase the vessels materially match the funding to be paid by Teekay LNG's subsidiaries under the sale-leaseback transactions. As a result, the amounts due by Teekay LNG's subsidiaries to the eight Lessors have been included in obligations related to finance leases as representing the Lessors' loans.

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Table of Contents
TEEKAY CORPORATION AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(all tabular amounts stated in thousands of U.S. Dollars, other than share and per share data)


During January 2019, Teekay LNG sold the Yamal Spirit and leased it back for a period of 15 years, with an option granted to Teekay LNG to extend the lease term by an additional five years. Teekay LNG is required to purchase the vessel at the end of the lease term. Subsequent to the adoption of ASU 2016-02 on January 1, 2019, sale-leaseback transactions where the lessee has a purchase obligation are treated as a failed sale. Consequently, Teekay LNG has not derecognized the vessel and continues to depreciate the asset as if Teekay LNG was the legal owner. Proceeds received from the sale are set up as a financial liability and bareboat charter hire payments made by Teekay LNG to the Lessor are allocated between interest expense and principal repayments on the financial liability.

The obligations of Teekay LNG under the bareboat charter contracts for the nine LNG carriers are guaranteed by Teekay LNG. In addition, the guarantee agreements require Teekay LNG to maintain minimum levels of tangible net worth and aggregate liquidity, and not to exceed a maximum amount of leverage. As at June 30, 2019, Teekay LNG was in compliance with all covenants in respect of the obligations related to its finance leases.

As at June 30, 2019 and December 31, 2018, the remaining commitments related to the financial liabilities of these nine LNG carriers (December 31, 2018 – eight LNG carriers) including the amounts to be paid for the related purchase obligations, approximated $1.9 billion (December 31, 2018 – $1.7 billion), including imputed interest of $495.6 million (December 31, 2018 – $435.3 million), repayable for the remainder of 2019 through 2034, as indicated below:


Commitments
 
 
At June 30, 2019
 
At December 31, 2018
Year

$
 
$
Remainder of 2019

67,962

 
119,517

2020

134,915

 
118,685

2021

133,542

 
117,772

2022

132,312

 
116,978

2023

131,237

 
116,338

Thereafter

1,295,440

 
1,120,670


As at December 31, 2018, Teekay LNG was a party, as lessee, to a finance lease on one Suezmax tanker, the Toledo Spirit. As at December 31, 2018, the remaining commitments related to the finance lease for the Suezmax tanker, including the related purchase obligation, approximated $24.2 million, including imputed interest of $0.2 million, repayable in 2019. In January 2019, the charterer, who is also the owner, sold the Toledo Spirit to a third party which resulted in Teekay LNG returning the vessel to its owner and the obligation related to finance lease concurrently being extinguished.

Teekay Tankers

In May 2019, Teekay Tankers completed a $63.7 million sale-leaseback financing transaction with a financial institution relating to two of Teekay Tankers' Suezmax tankers, the Aspen Spirit and Cascade Spirit.
In November 2018, Teekay Tankers completed an $84.7 million sale-leaseback financing transaction with a financial institution relating to four of Teekay Tankers' vessels, consisting of two Aframax tankers, one Suezmax tanker and one Long Range 2 (or LR2) product tanker, the Explorer Spirit, Navigator Spirit, Pinnacle Spirit and Trysil Spirit.

In September 2018, Teekay Tankers completed a $156.6 million sale-leaseback financing transaction with a financial institution relating to six of its Aframax tankers, the Blackcomb Spirit, Emerald Spirit, Garibaldi Spirit, Peak Spirit, Tarbet Spirit and Whistler Spirit.

In July 2017, Teekay Tankers completed a $153.0 million sale-leaseback financing transaction with a financial institution relating to four of its Suezmax tankers, the Athens Spirit, the Beijing Spirit, the Moscow Spirit and the Sydney Spirit.

Under these arrangements, Teekay Tankers transferred the vessels to subsidiaries of the financial institutions (or collectively, the Lessors), and leased the vessels back from the Lessors on bareboat charters ranging from nine- to 12-year terms. Teekay Tankers is obligated to purchase six of the Aframax vessels and two of the Suezmax vessels upon maturity of their respective bareboat charters. Teekay Tankers also has the option to purchase each of the 16 tankers at various times starting between July 2020 and November 2021 until the end of their respective lease terms.

Teekay Tankers consolidates 14 of the 16 Lessors for financial reporting purposes as VIEs. Teekay Tankers understands that these vessels and lease operations are the only assets and operations of the Lessors. Teekay Tankers operates the vessels during the lease terms, and as a result, is considered to be the Lessor's primary beneficiary.

The liabilities of the 14 Lessors are loans that are non-recourse to Teekay Tankers. The amounts funded to the 14 Lessors in order to purchase the vessels materially match the funding to be paid by Teekay Tankers' subsidiaries under these leaseback transactions. As a result, the amounts due by Teekay Tankers' subsidiaries to the 14 Lessors considered as VIEs have been included in obligations related to finance leases as representing the Lessors' loans.


Page 17
Table of Contents
TEEKAY CORPORATION AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(all tabular amounts stated in thousands of U.S. Dollars, other than share and per share data)

Subsequent to the adoption of ASU 2016-02 on January 1, 2019, sale and leaseback transactions where the lessee has a purchase obligation are treated as a failed sale. Consequently, Teekay Tankers has not derecognized the Aspen Spirit and Cascade Spirit and continues to depreciate the assets as if it was the legal owner. Proceeds received from the sale are set up as an obligation related to finance lease and bareboat charter hire payments made by Teekay Tankers to the Lessor are allocated between interest expense and principal repayments on the obligation related to finance lease.

The bareboat charters related to each of these vessels require that Teekay Tankers maintain minimum liquidity (cash, cash equivalents and undrawn committed revolving credit lines with at least six months to maturity) of $35.0 million and at least 5.0% of Teekay Tankers' consolidated debt and obligations related to finance leases (excluding applicable security deposits reflected in restricted cash – non-current on the Company's consolidated balance sheets).

Four of the bareboat charters require Teekay Tankers to maintain, for each vessel, a hull coverage ratio of 90% of the total outstanding principal balance during the first three years of the lease period and 100% of the total outstanding principal balance thereafter. As at June 30, 2019, this ratio was approximately 112% (December 31, 2018 – 101%).
 
Six of the bareboat charters require Teekay Tankers to maintain, for each vessel, a hull coverage ratio of 75% of the total outstanding principal balance during the first year of the lease period, 78% for the second year, 80% for the following two years and 90% of the total outstanding principal balance thereafter. As at June 30, 2019, this ratio was approximately 102% (December 31, 2018 – 91%).
 
Four of the bareboat charters also require Teekay Tankers to maintain, for each vessel, a hull overage ratio of 100% of the total outstanding principal balance. As at June 30, 2019, this ratio was approximately 133% (December 31, 2018 – 122%).

The remaining two bareboat charters also require Teekay Tankers to maintain, for each vessel, a minimum hull coverage ratio of 75% of the total outstanding principal balance during the first year of the lease period, 78% for the second year, 80% for the following two years and 90% of the total outstanding principal balance thereafter. As at June 30, 2019, this ratio was approximately 97%.

Such requirements are assessed annually with reference to vessel valuations compiled by one or more agreed upon third parties. As at June 30, 2019, Teekay Tankers was in compliance with all covenants in respect of its obligations related to finance leases.

The weighted average interest rate on Teekay Tankers’ obligations related to finance leases as at June 30, 2019 was 7.7% (December 31, 2018 – 7.5%).

As at June 30, 2019 and December 31, 2018, the total remaining commitments related to the financial liabilities of Teekay Tankers' Suezmax, Aframax and LR2 product tankers, including the amounts to be paid for the related purchase obligations, approximated $632.0 million (December 31, 2018 – $557.1 million), including imputed interest of $203.2 million (December 31, 2018 – $181.8 million), repayable from 2019 through 2030, as indicated below:


Commitments
 
 
At June 30, 2019
 
At December 31, 2018
Year

$
 
$
Remainder of 2019

30,336

 
47,962

2020

56,364

 
47,373

2021

56,202

 
47,237

2022

56,193

 
47,230

2023

56,184

 
47,222

Thereafter

376,750

 
320,064

Operating Lease Liabilities

The Company charters-in vessels from other vessel owners on time-charter-in and bareboat charter contracts, whereby the vessel owner provides use of the vessel to the Company, and, in the case of time-charter-in contracts, also operates the vessel for the Company. A time-charter-in contract is typically for a fixed period of time, although in certain cases the Company may have the option to extend the charter. The Company typically pays the owner a daily hire rate that is fixed over the duration of the charter. The Company is generally not required to pay the daily hire rate for time-charters during periods the vessel is not able to operate.


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Table of Contents
TEEKAY CORPORATION AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(all tabular amounts stated in thousands of U.S. Dollars, other than share and per share data)

The Company has determined that all of its time-charter-in contracts contain both a lease component (lease of the vessel) and a non-lease component (operation of the vessel). The Company has allocated the contract consideration between the lease component and non-lease component on a relative standalone selling price basis. The standalone selling price of the non-lease component has been determined using a cost-plus approach, whereby the Company estimates the cost to operate the vessel using cost benchmarking studies prepared by a third party, when available, or internal estimates when not available, plus a profit margin. The standalone selling price of the lease component has been determined using an adjusted market approach, whereby the Company calculates a rate excluding the operating component based on a market time-charter rate information from published broker estimates, when available, or internal estimates when not available. Given that there are no observable standalone selling prices for either of these two components, judgment is required in determining the standalone selling price of each component. The discount rate of the lease is determined using the Company’s incremental borrowing rate, which is based on the fixed interest rate the Company could obtain when entering into a secured loan facility of similar terms for an amount equal to the total minimum lease payments. The bareboat charter contracts contain only a lease component.

With respect to time-charter-in and bareboat charter contracts with an original term of more than one year, for the three and six months ended June 30, 2019, the Company incurred $23.7 million and $48.8 million, respectively, of time-charter and bareboat hire expense related to these time-charter and bareboat charter contracts, of which $16.4 million and $33.7 million, respectively, were allocable to the lease component, and $7.3 million and $15.1 million, respectively, were allocable to the non-lease component. The amounts allocable to the lease component approximates the cash paid for the amounts included in lease liabilities and is reflected as a reduction in operating cash flows for the three and six months ended June 30, 2019. Two of Teekay Tankers' time-charter-in contracts each have an option to extend the charter for an additional one-year term. Since it is not reasonably certain that Teekay Tankers will exercise the options, the lease components of the options are not recognized as part of the right-of-use assets and lease liabilities. As at June 30, 2019, the weighted-average remaining lease term and weighted-average discount rate for these time-charter-in and bareboat charter contracts were 3.0 years and 6.2%, respectively.

The Company has elected to recognize the lease payments of short-term leases in its consolidated statements of loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred, which is consistent with the recognition of payment for the non-lease component. The Company considers as short-term leases those with an original term of one year or less, excluding leases with an option to extend the lease for greater than one year or an option to purchase the underlying asset where the lessee is deemed reasonably certain to exercise the applicable option. For the three and six months ended June 30, 2019, the Company incurred $4.9 million and $9.2 million, respectively, of time-charter hire expense related to time-charter-in contracts classified as short-term leases.

During the six months ended June 30, 2019, Teekay Tankers chartered in two LR2 vessels each for a period of 24 months, which resulted in the Company recognizing right-of-use assets of $14.7 million on the lease commencement dates.

A maturity analysis of the Company’s operating lease liabilities from time-charter-in and bareboat charter contracts (excluding short-term leases) at June 30, 2019 is as follows:

 
Lease Commitment

Non-Lease Commitment
 
Total Commitment
Year
 
$

$
 
$
Payments
 
 
 
 
 
 
Remainder of 2019
 
36,398

 
17,112

 
53,510

2020
 
65,362

 
33,659

 
99,021

2021
 
51,672

 
24,913

 
76,585

2022
 
22,978

 
8,189

 
31,167

2023
 
9,227

 
—

 
9,227

Thereafter
 
5,712

 
—

 
5,712

Total payments
 
191,349

 
83,873

 
275,222

Less: imputed interest
 
(17,873
)
 
 
 
 
Carrying value of operating lease liabilities
 
173,476

 
 
 
 
Less current portion
 
(59,554
)
 
 
 
 
Carrying value of long-term operating lease liabilities
 
113,922

 
 
 
 

As at June 30, 2019, minimum commitments to be incurred by the Company under short-term time-charter-in contracts were approximately $6.0 million (remainder of 2019) and $0.6 million (2020).
As at December 31, 2018, minimum commitments to be incurred by the Company under vessel operating leases by which the Company charters-in vessels were approximately $116.3 million (2019), $90.4 million (2020), $53.4 million (2021), $9.1 million (2022), $9.1 million (2023) and $5.6 million thereafter.
7. Write-down and Loss on Sales of Vessels
The Company's write-downs and vessel sales generally relate to vessels approaching the end of their useful lives as well as other vessels it strategically sells to reduce exposure to a certain vessel class.


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Table of Contents
TEEKAY CORPORATION AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(all tabular amounts stated in thousands of U.S. Dollars, other than share and per share data)

The following tables contain the write-downs and loss on sales of vessels for the three and six months ended June 30, 2019 and 2018:
 
 
 
 
 
 
Three Months Ended June 30,
Segment

Asset Type

Completion of Sale Date

2019
$

2018
$
Teekay LNG Segment – Liquefied Gas Carriers (1)
 
4 Multi-gas Carriers
 
N/A
 
—

 
(33,000
)
Other
 
 
 
 
 
—

 
170

Total
 
 
 
 
 
—

 
(32,830
)

 
 
 
 
 
 
Six Months Ended June 30,
Segment
 
Asset Type
 
Completion of Sale Date
 
2019
$
 
2018
$
Teekay Parent Segment - Offshore Production (2)
 
FPSO
 
N/A
 
(3,328
)
 
—

Teekay LNG Segment - Conventional Tankers (3)
 
Handymax
 
N/A
 
—

 
(13,000
)
Teekay LNG Segment - Liquefied Gas Carriers (1)
 
4 Multi-gas Carriers
 
N/A
 
—

 
(33,000
)
Teekay LNG Segment - Conventional Tankers (4)
 
2 Suezmaxes
 
Oct/Dec-2018
 
—

 
(5,662
)
Other
 
 
 
 
 
—

 
170

Total
 
 
 
 
 
(3,328
)
 
(51,492
)

(1)
In June 2018, the carrying value for four of Teekay LNG's seven wholly-owned Multi-gas carriers, the Napa Spirit, Pan Spirit, Cathinka Spirit and Camilla Spirit, were written down to their estimated fair value, using appraised values, as a result of Teekay LNG's evaluation of alternative strategies for these assets, the current charter rate environment and the outlook for charter rates for these vessels.
(2)
In March 2019, the Company took an impairment charge in respect of certain of its FPSO-related assets.
(3)
In March 2018, the carrying value of the Alexander Spirit conventional tanker was written down to its estimated fair value, using an appraised value, as a result of changes in the Company's expectations of the vessel's future opportunities once its current charter contract ends in 2019. Teekay LNG commenced marketing the vessel for sale in 2019 and it is presented as held for sale in the consolidated balance sheets as at June 30, 2019.
(4)
In June and August 2017, the charterer for the European Spirit and African Spirit Suezmax tankers gave formal notices to Teekay LNG that it would not exercise its one-year extension option under the charter contracts and redelivered the tankers in August 2017 and November 2017, respectively. Upon receiving these notifications, Teekay LNG commenced marketing the vessels for sale. Based on second-hand market comparable values at the time, Teekay LNG wrote down the vessels to their estimated resale values and they were presented as held for sale on the consolidated balance sheets as at December 31, 2017. During the six months ended June 30, 2018, Teekay LNG recorded a further write-down of the vessels to their estimated resale value. In the fourth quarter of 2018, Teekay LNG sold the European Spirit and African Spirit for net proceeds of $15.7 million and $12.8 million, respectively, using the net proceeds from the sales primarily to repay its existing term loans associated with the vessels.
8. Accounts Payable, Accrued Liabilities and Other
 
June 30, 2019
 
December 31, 2018
 
$
 
$
Accounts payable
117,408

 
31,201

Accrued liabilities
 
 
 
Voyage and vessel expenses
113,748

 
98,135

Interest
31,582

 
47,731

Payroll and related liabilities
31,623

 
34,849

Distributions payable
6,486

 
6,426

Short-term debt
15,000

 
—

Deferred revenues – current
31,012

 
30,108

In-process revenue contracts – current
5,933

 
5,930

Office lease liability – current (note 2)
3,230

 
—

 
356,022

 
254,380



Page 20
Table of Contents
TEEKAY CORPORATION AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(all tabular amounts stated in thousands of U.S. Dollars, other than share and per share data)

9. Long-Term Debt
 
June 30, 2019
 
December 31, 2018
 
$
 
$
Revolving Credit Facilities
500,930

 
642,997

Senior Notes (8.5%) due January 15, 2020
36,712

 
508,577

Senior Notes (9.25%) due November 15, 2022
250,000

 
—

Convertible Senior Notes (5%) due January 15, 2023
125,000

 
125,000

Norwegian Krone-denominated Bonds due through August 2023
357,454

 
352,973

U.S. Dollar-denominated Term Loans due through 2030
1,437,688

 
1,536,499

Euro-denominated Term Loans due through 2024
180,115

 
193,781

Other U.S. Dollar-denominated loan
3,300

 
3,300

Total principal
2,891,199

 
3,363,127

Less unamortized discount and debt issuance costs
(47,874
)
 
(43,604
)
Total debt
2,843,325

 
3,319,523

Less current portion
(540,440
)
 
(242,137
)
Long-term portion
2,302,885

 
3,077,386


As of June 30, 2019, the Company had five revolving credit facilities (or the Revolvers) available, which, as at such date, provided for aggregate borrowings of up to $886.8 million, of which $385.8 million was undrawn. Interest payments are based on LIBOR plus margins; the margins ranged between 1.40% and 3.95% at June 30, 2019 and at December 31, 2018. The aggregate amount available under the Revolvers is scheduled to decrease by $17.4 million (remainder of 2019), $372.4 million (2020), $329.2 million (2021) and $167.8 million (2022). The Revolvers are collateralized by first-priority mortgages granted on 36 of the Company’s vessels, together with other related security, and include a guarantee from Teekay or its subsidiaries for all but one of the Revolvers' outstanding amounts. Included in other related security are 25.2 million common units in Teekay LNG and 40.3 million Class A common shares in Teekay Tankers to secure a $150 million credit facility.

The Company’s 8.5% senior unsecured notes are due January 15, 2020 with an original aggregate principal amount of $450 million (the Original Notes). The Original Notes issued on January 27, 2010 were sold at a price equal to 99.2% of par. During 2014, the Company repurchased $57.3 million of the Original Notes. In November 2015, the Company issued an aggregate principal amount of $200 million of the Company’s 8.5% senior unsecured notes due on January 15, 2020 (or the Additional Notes) at 99.01% of face value, plus accrued interest from July 15, 2015. The Additional Notes were an additional issuance of the Company's Original Notes (collectively referred to as the 2020 Notes). The Additional Notes were issued under the same indenture governing the Original Notes, and are fungible with the Original Notes. The discount on the 2020 Notes is accreted through the maturity date of the notes using the effective interest rate of 8.67% per year. During 2018, the Company repurchased $84.1 million in aggregate principal amount of the 2020 Notes. During the first quarter of 2019, the Company repurchased an additional $10.9 million in aggregate principal amount of the 2020 Notes.

In May 2019, the Company completed a cash tender offer and purchased $460.9 million in aggregate principal amount of the 2020 Notes and issued $250.0 million in aggregate principal amount of 9.25% senior secured notes at par due November 2022 (or the 2022 Notes). The Company recognized a loss of $10.7 million on the purchase of the 2020 Notes in the second quarter of 2019 which is included in other (loss) income in the consolidated statements of loss. The 2022 Notes are guaranteed on a senior secured basis by certain of our subsidiaries and are secured by first-priority liens on two of Teekay's FPSO units, a pledge of the equity interests of Teekay's subsidiary that owns all of Teekay's common units of Teekay LNG Partners L.P. and all of Teekay’s Class A common shares of Teekay Tankers Ltd. and a pledge of the equity interests in Teekay's subsidiaries that own Teekay Parent's three FPSO units.

The 2020 Notes rank equally in right of payment with all of Teekay's existing and future senior unsecured debt and senior to any future subordinated debt of Teekay. The 2020 Notes are not guaranteed by any of Teekay's subsidiaries and effectively rank behind all existing and future secured debt of Teekay and other liabilities of its subsidiaries.
 
The Company may redeem the 2020 Notes in whole or in part at any time before their maturity date at a redemption price equal to the greater of (i) 100% of the principal amount of the 2020 Notes to be redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the 2020 Notes to be redeemed (excluding accrued interest), discounted to the redemption date on a semi-annual basis, at the treasury yield plus 50 basis points, plus accrued and unpaid interest to the redemption date.

The Company may redeem the 2022 Notes in whole or in part at any time prior to November 15, 2020 at a redemption price equal to 100% of the principal amount of the 2022 Notes to be redeemed, plus the greater of (i) 1.0% of the principal amount of such 2022 Notes and (ii) the excess, if any, of the sum of the present values of the remaining scheduled payments of principal and interest on the 2022 Notes to be redeemed (excluding accrued interest), discounted to the redemption date on a semi-annual basis, at the treasury yield plus 50 basis points over the principal amount of such 2022 Notes, plus accrued and unpaid interest to, but excluding, the redemption date.


Page 21
Table of Contents
TEEKAY CORPORATION AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(all tabular amounts stated in thousands of U.S. Dollars, other than share and per share data)

The Company may redeem the 2022 Notes in whole or in part at a redemption price equal to a percentage of the principal amount of the 2022 Notes to be redeemed plus accrued and unpaid interest to, but excluding, the redemption date, as follows: 104.625% at any time on or after November 15, 2020, but prior to November 15, 2021; 102.313% at any time on or after November 15, 2021, but prior to August 15, 2022; and 100% at any time on or after August 15, 2022.

On January 26, 2018, Teekay Parent completed a private offering of $125.0 million in aggregate principal amount of 5% Convertible Senior Notes due January 15, 2023 (the Convertible Notes). The Convertible Notes are convertible into Teekay’s common stock, initially at a rate of 85.4701 shares of common stock per $1,000 principal amount of Convertible Notes. This represents an initial effective conversion price of $11.70 per share of common stock. The initial conversion price represents a premium of 20% to the concurrent common stock offering price of $9.75 per share. The conversion rate is subject to customary adjustments for, among other things, payments of dividends by Teekay Parent beyond the current quarterly dividend of $0.055 per share of common stock. On issuance of the Convertible Notes, $104.6 million of the net proceeds was reflected in long-term debt, including unamortized discount, and is being accreted to $125.0 million over its five-year term through interest expense. The remaining amount of the net proceeds of $16.1 million was allocated to the conversion feature and reflected in additional paid-in capital.

Teekay LNG has a total of Norwegian Krone (or NOK) 3.1 billion in senior unsecured bonds issued in the Norwegian bond market at June 30, 2019 that mature through August 2023. As of June 30, 2019, the total carrying amount of the senior unsecured bonds was $357.5 million (December 31, 2018 – $353.0 million). The bonds are listed on the Oslo Stock Exchange. The interest payments on the bonds are based on NIBOR plus a margin, which ranges from 3.70% to 6.00%. The Company entered into cross currency rate swaps to swap all interest and principal payments of the bonds into U.S. Dollars, with the interest payments fixed at rates ranging from 5.92% to 7.89%, and the transfer of the principal amount fixed at $382.5 million upon maturity in exchange for NOK 3.1 billion (see Note 15).

As of June 30, 2019, the Company had 10 U.S. Dollar-denominated term loans outstanding, which totaled $1.4 billion in aggregate principal amount (December 31, 2018 – $1.5 billion). Interest payments on the term loans are based on LIBOR plus a margin, of which two of the term loans have additional tranches with a weighted average fixed rate of 4.49%. At June 30, 2019, the margins ranged between 0.30% and 3.25% and at December 31, 2018, the margins ranged between 0.30% and 3.50%. Term loans require payments in quarterly or semi-annual installments commencing three or six months after delivery of each newbuilding vessel financed thereby, and eight of the term loans have balloon or bullet repayments due at maturity. The term loans are collateralized by first-priority mortgages on 24 (December 31, 2018 – 24) of the Company’s vessels, together with certain other security.
 
Teekay LNG has two Euro-denominated term loans outstanding, which, as at June 30, 2019, totaled 158.4 million Euros ($180.1 million) (December 31, 2018 – 169.0 million Euros ($193.8 million)). Teekay LNG is servicing the loans with funds generated by two Euro-denominated, long-term time-charter contracts. Interest payments on the loans are based on EURIBOR plus a margin. At June 30, 2019 and December 31, 2018, the margins ranged between 0.60% and 1.95%. The Euro-denominated term loans reduce in monthly and semi-annual payments with varying maturities through 2024, are collateralized by first-priority mortgages on two of Teekay LNG's vessels, together with certain other security, and are guaranteed by Teekay LNG and one of its subsidiaries.

Both Euro-denominated term loans and NOK-denominated bonds are revalued at the end of each period using the then-prevailing U.S. Dollar exchange rate. Due primarily to the revaluation of the Company’s NOK-denominated bonds, the Company’s Euro-denominated term loans and restricted cash, and the change in the valuation of the Company’s cross currency swaps, the Company recognized a foreign exchange loss of $5.9 million (2018 – gain of $12.5 million) and a loss of $8.5 million (2018 – gain of $12.6 million) during the three and six months ended June 30, 2019 and 2018, respectively.

The weighted-average interest rate on the Company’s aggregate long-term debt as at June 30, 2019 was 4.9% (December 31, 2018 – 5.1%). This rate does not include the effect of the Company’s interest rate swap agreements (see Note 15).

Teekay has guaranteed obligations pursuant to certain credit facilities of Teekay Tankers. As at June 30, 2019, the aggregate outstanding balance on such credit facilities was $155.8 million.

The aggregate annual long-term debt principal repayments required to be made by the Company subsequent to June 30, 2019 are $120.1 million (remainder of 2019), $703.8 million (2020), $826.8 million (2021), $373.1 million (2022), $339.0 million (2023) and $528.4 million (thereafter).

The Company’s long-term debt agreements generally provide for maintenance of minimum consolidated financial covenants and five loan agreements require the maintenance of vessel market value to loan ratios. As at June 30, 2019, these ratios ranged from 135% to 511% compared to their minimum required ratios of 115% to 135%. The vessel values used in these ratios are the appraised values provided by third parties where available, or prepared by the Company based on second-hand sale and purchase market data. Changes in the LNG/LPG carrier and conventional tanker markets could negatively affect the Company's compliance with these ratios.


Page 22
Table of Contents
TEEKAY CORPORATION AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(all tabular amounts stated in thousands of U.S. Dollars, other than share and per share data)

Two of Teekay Tankers’ term loans, which are scheduled to mature between January 2021 and August 2021 are guaranteed by Teekay. One of the term loans contains covenants that require Teekay Parent to maintain the greater of (a) free cash (cash and cash equivalents) and undrawn committed revolving credit lines with at least six months to maturity of at least $50.0 million and (b) an aggregate of free cash and undrawn committed revolving credit lines with at least six months to maturity of at least 5.0% of Teekay’s total consolidated debt (excluding the debt Teekay LNG and its subsidiaries and Teekay Tankers and its subsidiaries which is non-recourse to Teekay). The other term loan requires Teekay Parent and Teekay Tankers collectively to maintain the greater of (a) free cash (cash and cash equivalents) of at least $100.0 million and (b) an aggregate of free cash and undrawn committed revolving credit lines with at least six months to maturity of at least 7.5% of Teekay's total consolidated debt (excluding the debt of Teekay LNG). In addition, certain loan agreements require Teekay Tankers to maintain minimum liquidity (cash, cash equivalents and undrawn committed revolving credit lines with at least six months to maturity) of $35.0 million and at least 5.0% of Teekay Tankers' total consolidated debt. Certain loan agreements require Teekay LNG to maintain a minimum level of tangible net worth, and minimum liquidity (cash, cash equivalents and undrawn committed revolving credit lines with at least six months to maturity) of $35.0 million, and not to exceed a maximum level of financial leverage.

As at June 30, 2019, the Company was in compliance with all covenants under its credit facilities and other long-term debt.
10. Capital Stock
The authorized capital stock of Teekay at June 30, 2019 and December 31, 2018 was 25 million shares of preferred stock, with a par value of $1 per share, and 725 million shares of common stock, with a par value of $0.001 per share. As at June 30, 2019, Teekay had no shares of preferred stock issued.

In April 2019, Teekay filed a continuous offering program (or COP) under which Teekay may issue shares of its common stock, at market prices up to a maximum aggregate amount of $63.0 million. No shares of common stock have been issued under this COP as of June 30, 2019.

During the six months ended June 30, 2018, Teekay completed a public offering of 10.0 million common shares priced at $9.75 per share, raising net proceeds of approximately $93.0 million and issued 1.1 million shares of common stock as part of a COP initiated in 2016 generating net proceeds of $10.7 million.

During the six months ended June 30, 2019 and 2018, the Company granted 2,646,903 and 1,048,916 stock options with exercise prices of $3.98 and $8.67 per share, respectively, 796,733 and 625,878 restricted stock units with fair values of $3.3 million and $5.4 million, respectively, and 144,441 and 79,869 shares of restricted stock awards with fair values of $0.5 million and $0.7 million, respectively, to certain of the Company’s employees and directors. Each stock option has a ten-year term and vests equally over three years from the grant date. Each restricted stock unit and restricted stock award is equal in value to one share of the Company’s common stock plus reinvested dividends from the grant date to the vesting date. The restricted stock units vest equally over three years from the grant date. Upon vesting, the value of the restricted stock units and restricted stock awards are paid to each grantee in the form of shares.

The weighted-average grant-date fair value of stock options granted during the six months ended June 30, 2019 was $1.47 per stock option. The fair value of each stock option granted was estimated on the grant date using the Black-Scholes option pricing model. The following weighted-average assumptions were used in computing the fair value of the stock options granted: expected volatility of 65.2%; expected life of 5.5 years; dividend yield of 5.9%; risk-free interest rate of 2.5%; and estimated forfeiture rate of 6.0%. The expected life of the stock options granted was estimated using the historical exercise behavior of employees. The expected volatility was generally based on historical volatility as calculated using historical data during the five years prior to the grant date.

Share-based Compensation of Subsidiaries

During the six months ended June 30, 2019 and 2018, 35,419 and 17,498 common units of Teekay LNG, respectively, and 159,375 and 168,029 shares of Class A common stock of Teekay Tankers, respectively, with aggregate values of $0.7 million and $0.5 million, respectively, were granted and issued to the non-management directors of the general partner of Teekay LNG and the non-management directors of Teekay Tankers as part of their annual compensation for 2019 and 2018.

Teekay LNG and Teekay Tankers grant equity-based compensation awards as incentive-based compensation to certain employees of Teekay’s subsidiaries that provide services to Teekay LNG and Teekay Tankers. During the six months ended June 30, 2019 and 2018, Teekay LNG and Teekay Tankers granted restricted unit/stock-based compensation awards with respect to 80,100 and 62,283 common units of Teekay LNG and 633,134 and 762,640 Class A common shares of Teekay Tankers, respectively, with aggregate grant date fair values of $1.8 million and $2.1 million, respectively, based on Teekay LNG and Teekay Tankers’ closing unit or stock prices on the grant dates. Each restricted stock unit is equal in value to one of Teekay LNG’s or Teekay Tankers’ common units or common shares plus reinvested distributions or dividends from the grant date to the vesting date. The awards vest equally over three years from the grant date. Upon vesting, the awards are paid to a substantial majority of the grantees in the form of common units or common shares, net of withholding tax.

During the six months ended June 30, 2019, Teekay Tankers granted 1,380,173 and 470,765 stock options with an exercise price of $1.00 per share to officers and non-management directors of Teekay Tankers, respectively. During March 2018, Teekay Tankers granted 736,327 and 504,097 stock options with an exercise price of $1.22 per share to officers and non-management directors of Teekay Tankers, respectively. Each stock option has a ten-year term and vests equally over three years from the grant date.
 

Page 23
Table of Contents
TEEKAY CORPORATION AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(all tabular amounts stated in thousands of U.S. Dollars, other than share and per share data)

11. Commitments and Contingencies
a)
Vessels Under Construction

Teekay LNG's share of commitments to fund newbuilding and other construction contract costs as at June 30, 2019 are as follows:
 
Total
$
Remainder of
2019
$
2020
$
2021
$
2022
$
Consolidated LNG carriers (i)
60,586

9,984

9,733

27,191

13,678

Equity-accounted joint ventures (ii)
349,681

349,681

—

—

—

 
410,267

359,665

9,733

27,191

13,678


(i)
In May 2019, Teekay LNG received approximately $45 million from a shipyard related to warranty claims on certain of Teekay LNG's LNG carriers and recognized the amounts as reductions to the carrying values of the applicable LNG carriers. In connection with the warranty settlement, Teekay LNG entered into an agreement in June 2019 with a contractor to supply equipment on certain of its LNG carriers in 2021 and 2022 for an estimated cost of approximately $61 million.

(ii)
The commitment amounts relating to Teekay LNG’s share of costs for newbuilding and other construction contracts in Teekay LNG’s equity-accounted joint ventures are based on Teekay LNG’s ownership percentage in each respective joint venture as of June 30, 2019. These commitments are described in more detail in "Item 18 – Financial Statements: Note 16" of the Company’s Annual Report on Form 20-F for the year ended December 31, 2018. Based on Teekay LNG's ownership percentage in each respective joint venture, Teekay LNG's equity-accounted joint ventures have secured $301.0 million of undrawn financing related to Teekay LNG's proportionate share of the remaining commitments included in the table above.

b)
Liquidity

Management is required to assess whether the Company will have sufficient liquidity to continue as a going concern for the one-year period following the issuance of its financial statements. The Company had a consolidated net loss of $95.6 million and consolidated cash flows from operating activities of $178.9 million during the six months ended June 30, 2019, and had a working capital deficit of $365.9 million as at June 30, 2019. This working capital deficit included approximately $540.4 million related to scheduled maturities and repayments of debt in the next 12 months, of which some loan maturities relate to assets which are subject to purchase obligations of the charterer, and was classified as current liabilities as at June 30, 2019.

The Company's liquidity assessment was positively impacted in the second quarter of 2019 as a result of a number of completed transactions described below. In April 2019, Teekay Parent commenced a cash tender offer (or the Offer) to purchase any and all of its outstanding 2020 Notes. Teekay Parent completed the Offer and purchased $460.9 million in aggregate principal amount of the 2020 Notes in May 2019. The purchase was funded by the net proceeds from Teekay Parent's concurrent bond offering of the 2022 Notes and the proceeds from the sale of Teekay Offshore as noted below, as well as its existing cash. The Company recognized a loss of $10.7 million on the purchase of the 2020 Notes in the second quarter of 2019.

In May 2019, Teekay Parent sold to Brookfield all of its remaining interests in Teekay Offshore, which included the Company’s 49% general partner interest, common units, warrants, and an outstanding $25 million loan from the Company to Teekay Offshore, for total proceeds of $100 million in cash. The transaction was completed in May 2019. The Company recognized a loss on sale of $8.9 million upon completion of the transaction in the second quarter of 2019.

In May 2019, Teekay Parent completed a private offering of $250.0 million in aggregate principal amount of the 2022 Notes. The 2022 Notes are guaranteed on a senior secured basis by certain of Teekay's subsidiaries and are secured by first-priority liens on two of Teekay Parent's FPSO units, a pledge of the equity interests of Teekay Parent's subsidiary that owns all of Teekay Parent's common units of Teekay LNG Partners L.P. and all of Teekay’s Class A common shares of Teekay Tankers Ltd. and a pledge of the equity interests in Teekay's subsidiaries that own Teekay Parent's three FPSO units.

In connection with the Offer and issuance of the 2022 Notes, the Board of Directors approved the elimination of the quarterly dividend on Teekay Parent’s common stock commencing with the quarter ended March 31, 2019.

In April 2019, Teekay Parent filed a COP under which Teekay Parent may issue shares of its common stock, at market prices up to a maximum aggregate amount of $63.0 million. No shares of common stock have been issued under this COP as of June 30, 2019.

Based on the Company’s liquidity at the date these consolidated financial statements were issued, and the liquidity the Company expects to generate from operations over the following year assuming no significant decline in spot tanker rates, the Company expects that it will have sufficient liquidity to continue as a going concern for at least the one-year period following the issuance of these consolidated financial statements.


Page 24
Table of Contents
TEEKAY CORPORATION AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(all tabular amounts stated in thousands of U.S. Dollars, other than share and per share data)

c)
Legal Proceedings and Claims

The Company may, from time to time, be involved in legal proceedings and claims that arise in the ordinary course of business. The Company believes that any adverse outcome of existing claims, individually or in the aggregate, would not have a material effect on its financial position, results of operations or cash flows, when taking into account its insurance coverage and indemnifications from charterers.

d)
Other

The Company enters into indemnification agreements with certain officers and directors. In addition, the Company enters into other indemnification agreements in the ordinary course of business. The maximum potential amount of future payments required under these indemnification agreements is unlimited. However, the Company maintains what it believes is appropriate liability insurance that reduces its exposure and enables the Company to recover future amounts paid up to the maximum amount of the insurance coverage, less any deductible amounts pursuant to the terms of the respective policies, the amounts of which are not considered material.
12. Financial Instruments
a)
Fair Value Measurements

For a description of how the Company estimates fair value and for a description of the fair value hierarchy levels, see "Item 18 – Financial Statements: Note 11" in the Company’s Annual Report on Form 20-F for the year ended December 31, 2018.

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 fair value on a recurring basis.
 
 
 
June 30, 2019
 
December 31, 2018
 
Fair
Value
Hierarchy
Level
 
Carrying
Amount
Asset
(Liability)
$
 
Fair
Value
Asset
(Liability)
$
 
Carrying
Amount
Asset
(Liability)
$
 
Fair
Value
Asset
(Liability)
$
Recurring
 
 
 
 
 
 
 
 
 
Cash, cash equivalents and restricted cash (note 18)
Level 1
 
322,883

 
322,883

 
505,639

 
505,639

Derivative instruments (note 15)
 
 
 
 
 
 
 
 
 
Interest rate swap agreements – assets (1)
Level 2
 
1,896

 
1,896

 
9,640

 
9,640

Interest rate swap agreements – liabilities (1)
Level 2
 
(56,663
)
 
(56,663
)
 
(43,175
)
 
(43,175
)
Cross currency interest swap agreements – liabilities(1)
Level 2
 
(31,006
)
 
(31,006
)
 
(29,122
)
 
(29,122
)
Foreign currency contracts
Level 2
 
(101
)
 
(101
)
 
—

 
—

Stock purchase warrants
Level 3
 
—

 
—

 
12,026

 
12,026

Freight forward agreements
Level 2
 
61

 
61

 
(57
)
 
(57
)
Other
 
 
 
 
 
 
 
 
 
Loans to equity-accounted investments
(2)
 
93,924

 
(2
)
 
169,197

 
(2
)
Loans to equity-accounted investments – Long-term
(2)
 
62,196

 
(2
)
 
62,207

 
(2
)
Short-term debt
Level 2
 
(15,000
)
 
(15,000
)
 
—

 
—

Long-term debt – public (note 9)
Level 1
 
(627,981
)
 
(658,046
)
 
(856,986
)
 
(851,470
)
Long-term debt – non-public (note 9)
Level 2
 
(2,215,344
)
 
(2,168,252
)
 
(2,462,537
)
 
(2,395,300
)
Obligations related to finance leases, including current portion (note 6)
Level 2
 
(1,826,732
)
 
(1,872,238
)
 
(1,673,845
)
 
(1,652,345
)
 
(1)
The fair value of the Company's interest rate swap and cross currency swap agreements at June 30, 2019 includes $2.6 million (December 31, 2018 - $3.2 million) accrued interest expense which is recorded in accrued liabilities on the unaudited consolidated balance sheets.

(2)
In the unaudited interim consolidated financial statements, the Company’s loans to and investments in equity-accounted investments form the aggregate carrying value of the Company’s interests in entities accounted for by the equity method. The fair value of the individual components of such aggregate interests is not determinable.


Page 25
Table of Contents
TEEKAY CORPORATION AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(all tabular amounts stated in thousands of U.S. Dollars, other than share and per share data)

Stock purchase warrants - Prior to the 2019 Brookfield Transaction on May 8, 2019, Teekay held 15.5 million common unit warrants issued by Teekay Offshore to Teekay in connection with the 2017 Brookfield Transaction (or Brookfield Transaction Warrants) and 1,755,000 warrants to purchase common units of Teekay Offshore issued to Teekay in connection with Teekay Offshore's private placement of Series D Preferred Units in June 2016 (or the Series D Warrants) (see "Item 18 – Financial Statements: Note 4" of the Company’s Annual Report on Form 20-F for the year ended December 31, 2018). In May 2019, Teekay sold to Brookfield all of the Company’s remaining interests in Teekay Offshore, which included, among other things, both the Brookfield Transaction Warrants and Series D Warrants (see Note 4).

Changes in fair value during the three and six months ended June 30, 2019 and 2018 for the Company’s Brookfield Transaction Warrants and the Series D Warrants, which were measured at fair value using significant unobservable inputs (Level 3), are as follows: 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
 
$
 
$
 
$
 
$
Fair value at the beginning of the period
14,342

 
29,065

 
12,026

 
30,749

Unrealized gain included in earnings
24,584

 
6,206

 
26,900

 
4,522

Realized (loss) gain included in earnings
(25,559
)
 
—

 
(25,559
)
 
—

Settlements
(13,367
)
 
—

 
(13,367
)
 
—

Fair value at the end of the period
—

 
35,271

 
—

 
35,271


b)
Financing Receivables

The following table contains a summary of the Company’s carrying value of financing receivables by type of borrower and the method by which the Company monitors the credit quality of its financing receivables on a quarterly basis.
Class of Financing Receivable
 
Credit Quality Indicator
 
Grade
 
June 30, 2019
 
December 31, 2018
$
 
$
Direct financing leases
 
Payment activity
 
Performing
 
564,685

 
575,163

Other loan receivables
 
 
 
 
 
 
 
 
Loans to equity-accounted investments and joint venture partners
 
Other internal metrics
 
Performing
 
156,120

 
231,404

Long-term receivable and accrued revenue included in accounts receivable and other assets
 
Payment activity
 
Performing
 
6,857

 
15,694

 
 
 
 
 
 
727,662

 
822,261


13. Restructuring Charges
During the three and six months ended June 30, 2019, the Company recorded restructuring charges of $1.4 million and $10.0 million, respectively. The restructuring charges primarily related to severance costs resulting from the termination of certain management contracts in Teekay Parent of which the costs were fully recovered from the customer and the recovery is presented in revenue, as well as from the termination of the charter contract for the Toledo Spirit Suezmax tanker in Teekay LNG upon sale of the vessel.

During the three and six months ended June 30, 2018, the Company recorded restructuring charges of $1.1 million and $3.3 million, respectively. The restructuring charges primarily related to severance costs resulting from reorganization and realignment of resources of certain of the Company's business development, marine solutions and fleet operations functions to better respond to the changing business environment.

At June 30, 2019 and December 31, 2018, $1.3 million and $0.8 million, respectively, of restructuring liabilities were recorded in accounts payable, accrued liabilities and other on the consolidated balance sheets.


Page 26
Table of Contents
TEEKAY CORPORATION AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(all tabular amounts stated in thousands of U.S. Dollars, other than share and per share data)

14. Accumulated Other Comprehensive Loss
As at June 30, 2019 and December 31, 2018, the Company’s accumulated other comprehensive loss (or AOCI) consisted of the following components:
 
June 30,
 
December 31,
 
2019
 
2018
 
$
 
$
Unrealized (loss) gain on qualifying cash flow hedging instruments
(17,801
)
 
903

Pension adjustments, net of tax recoveries
(3,342
)
 
(3,176
)
 
(21,143
)
 
(2,273
)

15. Derivative Instruments and Hedging Activities
The Company uses derivative instruments to manage certain risks in accordance with its overall risk management policies.

Foreign Exchange Risk

From time to time the Company economically hedges portions of its forecasted expenditures denominated in foreign currencies with foreign currency forward contracts.

As at June 30, 2019, 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 (Liability)
$
 
 
 
 
 
 
Expected Maturity
 
 
 
 
2019
 
2020
 
 
 
 
$
 
$
Euro
9,240
 
0.86
 
(101)
 
3,952
 
6,750

(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 date of the swap, 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 2020, 2021 and 2023. In addition, the cross currency swaps economically hedge the interest rate exposure on the NOK bonds due in 2020, 2021 and 2023. The Company has not designated, for accounting purposes, these cross currency swaps as cash flow hedges of its NOK-denominated bonds due in 2020, 2021 and 2023. As at June 30, 2019, 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)
1,000,000
 
134,000

 
NIBOR
 
3.70%
 
5.92%
 
(17,133
)
 
0.9
1,200,000
 
146,500

 
NIBOR
 
6.00%
 
7.72%
 
(5,785
)
 
2.3
850,000
 
102,000

 
NIBOR
 
4.60%
 
7.89%
 
(8,088
)
 
4.2
 
 
 
 
 
 
 
 
 
 
(31,006
)
 
 

Interest Rate Risk

The Company enters into interest rate swap agreements, which exchange a receipt of floating interest for a payment of fixed interest, to reduce the Company’s exposure to interest rate variability on its outstanding floating-rate debt. The Company designates certain of its interest rate swap agreements as cash flow hedges for accounting purposes.
 

Page 27
Table of Contents
TEEKAY CORPORATION AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(all tabular amounts stated in thousands of U.S. Dollars, other than share and per share data)

As at June 30, 2019, 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 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
 
1,011,178

 
(44,855
)
 
3.6
 
3.0

EURIBOR-Based Debt:
 
 
 
 
 
 
 
 
 
Euro-denominated interest rate swaps
EURIBOR
 
81,059

 
(9,912
)
 
4.2
 
3.8

 
 
 
 
 
(54,767
)
 
 
 
 

(1)
Excludes the margins the Company pays on its variable-rate debt, which, as of June 30, 2019, ranged from 0.3% to 3.95%.
(2)
Includes interest rate swaps with the notional amount reducing quarterly or semi-annually. Two interest rate swaps are subject to mandatory early termination in 2020 and 2021, at which time the swaps will be settled based on their fair value.
Stock Purchase Warrants

Prior to the 2019 Brookfield Transaction on May 8, 2019, Teekay held 15.5 million Brookfield Transaction Warrants and 1,755,000 Series D Warrants of Teekay Offshore (see Note 12). As part of the 2019 Brookfield Transaction, Teekay sold to Brookfield all of the Company’s remaining interests in Teekay Offshore, which included, among other things, both the Brookfield Transaction Warrants and Series D Warrants.

Tabular Disclosure

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
 
Other Non-Current Assets
 
Accounts Payable, Accrued
Liabilities and Other
 
Current
Portion of
Derivative
Liabilities
 
Derivative
Liabilities
 
$
 
$
 
$
 
$
 
$
As at June 30, 2019
 
 
 
 
 
 
 
 
 
Derivatives designated as a cash flow hedge:
 
 
 
 
 
 
 
 
 
Interest rate swap agreements
—

 
—

 
3

 
(497
)
 
(3,758
)
Derivatives not designated as a cash flow hedge:
 
 
 
 
 
 
 
 
 
Foreign currency contracts
—

 
—

 
—

 
(101
)
 
—

Interest rate swap agreements
1,168

 
240

 
(2,094
)
 
(8,996
)
 
(40,833
)
Cross currency swap agreements
—

 
—

 
(538
)
 
(18,887
)
 
(11,581
)
Forward freight agreements
61

 
—

 
—

 
—

 


 
1,229

 
240

 
(2,629
)
 
(28,481
)
 
(56,172
)
 

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Table of Contents
TEEKAY CORPORATION AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(all tabular amounts stated in thousands of U.S. Dollars, other than share and per share data)

 
Prepaid Expenses and Other
 
Other Non-Current Assets
 
Accounts Payable, Accrued
Liabilities and Other
 
Current
Portion of
Derivative
Liabilities
 
Derivative
Liabilities
 
$
 
$
 
$
 
$
 
$
As at December 31, 2018
 
 
 
 
 
 
 
 
 
Derivatives designated as a cash flow hedge:
 
 
 
 
 
 
 
 
 
Interest rate swap agreements
784

 
2,362

 
20

 
—

 
—

Derivatives not designated as a cash flow hedge:
 
 
 
 
 
 
 
 
 
Interest rate swap agreements
2,915

 
2,973

 
(2,498
)
 
(7,419
)
 
(32,672
)
Cross currency swap agreements
—

 
—

 
(713
)
 
(4,729
)
 
(23,680
)
Stock purchase warrants
—

 
12,026

 
—

 
—

 
—

Forward freight agreements
—

 
—

 
—

 
(57
)
 
—

 
3,699

 
17,361

 
(3,191
)
 
(12,205
)
 
(56,352
)

As at June 30, 2019, the Company had multiple interest rate swaps and cross currency swaps with the same counterparty that are subject to the same master agreements. Each of these master agreements provides for the net settlement of all derivatives subject to that master agreement through a single payment in the event of default or termination of any one derivative. The fair value of these derivatives is presented on a gross basis in the Company’s unaudited consolidated balance sheets. As at June 30, 2019, these derivatives had an aggregate fair value asset amount of $1.9 million and an aggregate fair value liability amount of $66.2 million.

For the periods indicated, the following tables present the gains (losses) on interest rate swap agreements designated and qualifying as cash flow hedges (excluding such agreements in equity-accounted investments):
Three Months Ended June 30, 2019
 
Amount
 
Amount
 
Recognized in AOCI (1)
 
Reclassified from AOCI (2)
 
(4,570)
 
157
Interest expense
Three Months Ended June 30, 2018
 
Effective Portion
 
Effective Portion
Ineffective
 
Recognized in AOCI (1)
 
Reclassified from AOCI (2)
Portion (3)
 
1,534
 
2
—
Interest expense
Six Months Ended June 30, 2019
 
Effective Portion
 
Amount
 
Recognized in AOCI (1)
 
Reclassified from AOCI (2)
 
(7,402)
 
408
Interest expense
Six Months Ended June 30, 2018
 
Effective Portion
 
Effective Portion
Ineffective
 
Recognized in AOCI (1)
 
Reclassified from AOCI (2)
Portion (3)
 
5,090
 
(248)
740
Interest expense

(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 gains (losses) on derivative instruments designated and qualifying as cash flow hedges.

Realized and unrealized (losses) and 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 gains (losses) on non-designated derivatives in the unaudited consolidated statements of loss as follows:

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TEEKAY CORPORATION AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(all tabular amounts stated in thousands of U.S. Dollars, other than share and per share data)


Three Months Ended June 30,
 
Six Months Ended June 30,

2019

2018
 
2019
 
2018

$

$
 
$
 
$
Realized losses relating to:





 
 
 
 
Interest rate swap agreements
(1,785
)

(4,031
)
 
(3,473
)
 
(8,840
)
Stock purchase warrants
(25,559
)
 
—

 
(25,559
)
 
—

Forward freight agreements
(29
)

(18
)
 
(42
)
 
(18
)

(27,373
)

(4,049
)
 
(29,074
)
 
(8,858
)
Unrealized gains (losses) relating to:





 
 
 
 
Interest rate swap agreements
(8,195
)

8,532

 
(14,216
)
 
24,451

Foreign currency forward contracts
(101
)

—

 
(101
)
 
—

Stock purchase warrants
24,584


6,206

 
26,900

 
4,522

Forward freight agreements
121


34

 
104

 
34


16,409


14,772

 
12,687

 
29,007

Total realized and unrealized (losses) gains on derivative instruments
(10,964
)

10,723

 
(16,387
)
 
20,149


Realized and unrealized gains and losses from cross currency swaps are recognized in earnings and reported in foreign exchange (loss) gain in the consolidated statements of loss as follows:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
 
$
 
$
 
$
 
$
Realized losses
(1,087
)
 
(1,798
)
 
(2,521
)
 
(3,182
)
Unrealized (losses) gains
(140
)
 
(16,566
)
 
(2,060
)
 
5,768

Total realized and unrealized (losses) gains on cross currency swaps
(1,227
)
 
(18,364
)
 
(4,581
)
 
2,586


The Company is exposed to credit loss to the extent the fair value represents an asset in the event of non-performance by the counterparties to the foreign currency forward contracts, and cross currency and interest rate swap agreements; however, the Company does not anticipate non-performance by any of the counterparties. In order to minimize counterparty risk, the Company only enters into derivative transactions with counterparties that are rated A- or better by Standard & Poor’s or A3 or better by Moody’s at the time of the transaction. In addition, to the extent possible and practical, interest rate swaps are entered into with different counterparties to reduce concentration risk.

16. Income Tax Expense
The components of the provision for income tax expense are as follows:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019

2018
 
$
 
$
 
$

$
Current
(3,219
)
 
(8,410
)
 
(8,072
)
 
(11,221
)
Deferred
(185
)
 
(336
)
 
(368
)
 
(1,642
)
Income tax expense
(3,404
)
 
(8,746
)
 
(8,440
)
 
(12,863
)

The following table reflects changes in uncertain tax positions relating to freight tax liabilities, which are recorded in other long-term liabilities on the Company's consolidated balance sheets:
 
Six Months Ended June 30,
 
2019
 
2018
 
$
 
$
Balance of unrecognized tax benefits as at January 1
40,556

 
31,061

Increases for positions related to the current year
2,106

 
2,047

Changes for positions taken in prior periods
4,121

 
2,337

Decrease related to statute limitations
—

 
(312
)
Balance of unrecognized tax benefits as at June 30
46,783

 
35,133


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TEEKAY CORPORATION AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(all tabular amounts stated in thousands of U.S. Dollars, other than share and per share data)


The Company does not presently anticipate its uncertain tax positions will significantly increase in the next 12 months; however, this is dependent on the jurisdictions of the trading activity of its vessels. The Company reviews its freight tax obligations on a regular basis and may update its assessment of its tax positions based on available information at that time. Such information may include legal advice as to applicability of freight taxes in relevant jurisdictions. Freight tax regulations are subject to change and interpretation; therefore, the amounts recorded by the Company may change accordingly.
17. Net Loss Per Share
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
 
$
 
$
 
$
 
$
Net loss attributable to the shareholders of Teekay Corporation – basic and diluted
(39,485
)
 
(28,324
)
 
(123,742
)
 
(48,879
)
Weighted average number of common shares
100,783,496

 
100,434,512

 
100,652,685

 
98,892,574

Common stock and common stock equivalents
100,783,496

 
100,434,512

 
100,652,685

 
98,892,574

Loss per common share – basic and diluted
(0.39
)
 
(0.28
)
 
(1.23
)
 
(0.49
)

The Company intends to settle the principal of the Convertible Notes in cash on conversion and calculates diluted earnings per share using the treasury-stock method. Stock-based awards and the conversion feature on the Convertible Notes that have an anti-dilutive effect on the calculation of diluted loss per common share, are excluded from this calculation. For the three and six months ended June 30, 2019, options to acquire 6.1 million shares of Teekay Common Stock had an anti-dilutive effect on the calculation of diluted income per common share (three and six months ended June 30, 2018 – 3.9 million). In periods where a loss attributable to shareholders of Teekay has been incurred, all stock-based awards and the conversion feature on the Convertible Notes are anti-dilutive.

18. Supplemental Cash Flow Information
Total cash, cash equivalents and restricted cash are as follows:
 
June 30, 2019
 
December 31, 2018
 
June 30, 2018
 
December 31, 2017
 
$
 
$
 
$
 
$
Cash and cash equivalents
235,199

 
424,169

 
454,933

 
445,452

Restricted cash – current
50,798

 
40,493

 
55,466

 
38,179

Restricted cash – non-current
36,886

 
40,977

 
34,627

 
68,543

 
322,883

 
505,639

 
545,026

 
552,174


The Company maintains restricted cash deposits relating to certain term loans, collateral for cross currency swaps (see Note 15), leasing arrangements, project tenders and amounts received from charterers to be used only for dry-docking expenditures and emergency repairs.

The non-cash item related to operating lease right-of-use assets and operating lease liabilities for the six months ended June 30, 2019 was $211.6 million.

The associated sales of the Toledo Spirit and Teide Spirit by its owner during the six months ended June 30, 2019 and 2018, respectively, resulted in the vessels being returned to their owner with the obligations related to finance lease being concurrently extinguished. As a result, the sales of the vessels and the concurrent extinguishment of the corresponding obligations related to finance lease of $23.6 million and $23.1 million for the six months ended June 30, 2019 and 2018, respectively, were treated as non-cash transactions in the Company's consolidated statements of cash flows.

ITEM 2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the unaudited consolidated financial statements and accompanying notes contained in “Item 1 – Financial Statements” of this Report on Form 6-K and with our audited consolidated financial statements contained in “Item 18 – Financial Statements” and with Management’s Discussion and Analysis of Financial Condition and Results of Operations in “Item 5 – Operating and Financial Review and Prospects” of our Annual Report on Form 20-F for the year ended December 31, 2018. Included in our Annual Report on Form 20-F is important information about items that you should consider when evaluating our results, an explanation of our organizational structure, information about the types of contracts we enter into and certain non-GAAP measures we utilize to measure our performance. Unless otherwise indicated, references in this Report to “Teekay,” the “Company,” “we,” “us” and “our” and similar terms refer to Teekay Corporation and its subsidiaries.

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Overview
Teekay Corporation (or Teekay) is an operational leader and project developer in the marine midstream space. Teekay provides a comprehensive set of marine services to the world's leading oil and gas companies. We have a 100% general partnership interest in one publicly-listed master limited partnership, Teekay LNG Partners L.P. (or Teekay LNG), and a controlling interest in publicly-listed Teekay Tankers Ltd. (or Teekay Tankers), and we directly own three floating production storage and offloading (or FPSO) units. Until May 2019, when we sold our remaining interest, we had a 49% general partnership interest and other equity and debt interests in another publicly-listed master limited partnership, Teekay Offshore Partners L.P. (or Teekay Offshore).
ITEMS YOU SHOULD CONSIDER WHEN EVALUATING OUR RESULTS
There are a number of factors that should be considered when evaluating our historical financial performance and assessing our future prospects and we use a variety of financial and operational terms and concepts when analyzing our results of operations. These items can be found in "Item 5 – Operating and Financial Review and Prospects” in our Annual Report on Form 20-F for the year ended December 31, 2018.

RECENT DEVELOPMENTS AND RESULTS OF OPERATIONS

To understand our financial condition and results of operations, a general understanding of our organizational structure is required. Our organizational structure can be divided into (a) our controlling interests in our two publicly-traded subsidiaries, Teekay LNG and Teekay Tankers (together, the Controlled Daughter Entities), (b) Teekay and its remaining subsidiaries, which is referred to herein as Teekay Parent, and (c) until May 2019, our equity-accounted investment in Teekay Offshore. For further information on our organizational structure, please read “Item 5. Operating and Financial Review and Prospects – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Structure”, in our Annual Report on Form 20-F for the year ended December 31, 2018.

The results of operations that follow have first been divided into (a) our controlling interests in our publicly-traded subsidiaries Teekay LNG and Teekay Tankers, (b) Teekay Parent, and (c) the results of Teekay Offshore, which we accounted for under the equity method until May 2019. Within the first two of these three groups, we have further subdivided the results into their respective lines of business. The following table (a) presents revenues and income (loss) from vessel operations for each of the Controlled Daughter Entities and for Teekay Parent, and (b) reconciles these amounts to our unaudited consolidated financial statements. Please read "Item 1 - Financial Statements: Note 5 – Segment Reporting" for information about our lines of business and segments.

Revenues
 
Income (Loss) from Vessel Operations
Three Months Ended
 
Six Months Ended
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
June 30,
 
June 30,
(in thousands of U.S. dollars)
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Teekay LNG
153,060

 
122,315

 
302,804

 
237,621

 
74,677

 
10,505

 
144,038

 
35,647

Teekay Tankers
202,277

 
171,659

 
434,778

 
340,124

 
5,051

 
(13,415
)
 
37,148

 
(21,836
)
Teekay Parent
105,817

 
112,612

 
205,914

 
230,526

 
(8,265
)
 
4,831

 
(25,491
)
 
6,615

Elimination of intercompany (1)
(3,487
)
 
(944
)
 
(4,616
)
 
(8,607
)
 
—

 
—

 
—

 
—

Teekay Corporation Consolidated
457,667

 
405,642

 
938,880

 
799,664

 
71,463

 
1,921

 
155,695

 
20,426

(1)
During 2019, Teekay Tankers' ship-to-ship transfer business provided operational and maintenance services to Teekay LNG Bahrain Operations L.L.C., an entity wholly-owned by Teekay LNG, for the LNG receiving and regasification terminal in Bahrain. Also during 2019, the Magellan Spirit was chartered by Teekay LNG to Teekay Parent. During 2018, certain vessels were chartered by Teekay LNG to Teekay Parent.


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SUMMARY
Teekay's consolidated income from vessel operations increased to $155.7 million for the six months ended June 30, 2019 compared to $20.4 million for the same period last year. The primary reasons for this increase in our consolidated results are as follows:


•
an increase in income from vessel operations in Teekay LNG of $108.4 million due to deliveries to Teekay LNG of the Magdala, Myrina, Megara, Bahrain Spirit, Sean Spirit and Yamal Spirit LNG carrier newbuildings between February 2018 and January 2019, the charter-in of the Magellan Spirit LNG carrier, the write-downs of the Alexander Spirit, European Spirit and African Spirit in 2018 and the seven multi-gas carriers earning higher spot market rates in 2019, partially offset by off-hire days of the Galicia Spirit and Madrid Spirit in the first quarter of 2019 for a scheduled dry docking and unscheduled repairs, net of the Catalunya Spirit being off-hire during the same period in 2018 for a scheduled dry docking; and
•
an increase in income from vessel operations in Teekay Tankers of $59.0 million due to higher average realized time-charter equivalent (or TCE) rates earned in the spot tanker market, improved results from the full service lightering (or FSL) and ship-to-ship (or STS) transfer businesses and the addition of two Aframax and two Long Range 2 (or LR2) chartered-in tankers, partially offset by an increase in off-hire days and off-hire bunker expenses, and an increase in amortization of new dry dockings with higher costs and completing the first dry dockings for various former Tanker Investments Ltd. (or TIL) vessels;
partially offset by
•
a decrease in income from vessel operations in Teekay Parent of $32.1 million due to lower revenues from Teekay Parent's three FPSO units as a result of lower oil production, unplanned maintenance shutdowns on the Petrojarl Foinaven and Petrojarl Banff FPSO units, timing differences due to the adoption of Accounting Standards Codification (or ASC) 842 Leases in the first quarter of 2019, lower oil prices and the termination of contracts for managing drybulk entities, partially offset by a decrease in corporate expenses and by the redelivery of two in-chartered LNG carriers to Teekay LNG in 2018.

Teekay LNG
Recent Developments in Teekay LNG
In June 2019, Teekay LNG's 50/50 joint venture with China LNG (or the Yamal LNG Joint Venture) took delivery of its third ARC7 LNG carrier newbuilding, the Nikolay Yevgenov. Upon delivery, the vessel commenced its 27-year charter contract with Yamal Trade Pte. Ltd.

In May 2019, Teekay LNG extended the fixed-rate charter contract of the 1993-built Polar Spirit LNG carrier for three additional years at a charter rate in excess of the previous fixed rate. The charter extension commenced on May 7, 2019.

In May 2019, Teekay LNG received approximately $45 million from a shipyard related to warranty claims on certain of its LNG carriers and recognized the amounts as reductions to the carrying values of the applicable LNG carriers. In connection with the warranty settlement, Teekay LNG entered into an agreement in June 2019 with a contractor to supply equipment to enhance vessel performance on certain of its LNG carriers in 2021 and 2022, for an estimated installed cost of approximately $61 million.

In February 2019, Teekay LNG entered into a commercial management agreement with a third-party commercial manager (or the Manager) pursuant to which the Manager will commercially manage Teekay LNG's seven multi-gas vessels. In May 2019, Teekay LNG completed the transition of the commercial management of all seven multi-gas vessels to the Manager. Teekay LNG has the ability to withdraw the vessels from the Manager at any time subject to the requirements provided for in the management agreement.

In January 2019, the Yamal Spirit LNG carrier newbuilding was delivered, which concurrently commenced its 15-year charter time-contract with Yamal Trade Pte. Ltd. Upon delivery of the vessel, Teekay LNG entered into a 15-year sale-leaseback financing arrangement with a lessor for $158.7 million. The proceeds were used to pay the shipyard for construction costs upon delivery of the LNG carrier newbuilding.

In January 2019, Teekay LNG's joint venture with China LNG Shipping (Holdings) Limited (or China LNG), CETS Investment Management (HK) Co. Ltd. and BW Investments Pte. Ltd. (or the Pan Union Joint Venture) took delivery of its fourth LNG carrier newbuilding, the Pan Africa. Upon delivery, the vessel commenced its 20-year charter contract with Shell. Teekay LNG has a 20% ownership interest in this vessel through Teekay LNG's interest in the joint venture.

In January 2019, Compania Espanole de Petroleos, S.A (or CEPSA), the charterer and owner of Teekay LNG's finance leased vessel, the Toledo Spirit, sold the vessel to a third party. As a result of the sale, Teekay LNG returned the vessel to CEPSA and the full amount of Teekay LNG's associated obligation related to the finance lease related to the vessel was concurrently extinguished. In addition, Teekay LNG incurred associated seafarer severance costs of $3.0 million in 2019 related to the sale of the Toledo Spirit.

Two of the six LNG carriers (or MALT LNG Carriers) in Teekay LNG's 52 percent-owned joint venture with Marubeni Corporation (or the Teekay LNG-Marubeni Joint Venture), the Arwa Spirit and Marib Spirit, are under long-term contracts expiring in 2029 with Yemen LNG Company Limited (or YLNG), a consortium led by Total SA. Due to the political situation in Yemen, YLNG decided to temporarily close operation of its LNG plant in Yemen in 2015. As a result, commencing January 1, 2016, the Teekay LNG-Marubeni Joint Venture agreed to successive deferral arrangements with YLNG pursuant to which a portion of the charter payments were deferred. Concurrently with the expiration of the most current deferral arrangement, in April 2019 the Teekay LNG-Marubeni Joint Venture entered into a suspension agreement with YLNG (or the Suspension Agreement) pursuant to which the Teekay LNG-Marubeni Joint Venture and YLNG agreed to suspend the two charter contracts for a period of up to three years from the date of the agreement. Should the LNG plant in Yemen resume operations during the term of the Suspension Agreement, YLNG will be required to repay the applicable deferred amounts plus interest over a period of installments. However, there are no assurances if or when the LNG plant will resume operations and, accordingly, if YLNG will be able to repay all or any portion of the deferred amounts. Pursuant to the Suspension Agreement, the Teekay LNG-Marubeni Joint Venture is permitted to directly charter the Arwa Spirit and Marib Spirit for its own account to third parties. In May 2019, the Teekay LNG-Marubeni Joint Venture secured one-year, fixed-rate charter contracts on the Arwa Spirit and Marib Spirit, which commenced in June and July 2019, respectively.

In September 2018, Teekay LNG-Marubeni Joint Venture agreed to charter its LNG carrier, the Magellan Spirit, to Teekay LNG for two years at a fixed rate. Teekay LNG subsequently chartered-out the Magellan Spirit to third parties at charter rates that were higher than the charter-in rate that Teekay LNG is required to pay. In March 2019, the Magellan Spirit completed its most recent charter contract with a third party and was redelivered to Teekay LNG, at which time the vessel proceeded to its scheduled drydock which completed in May 2019. In April 2019, Teekay LNG secured a three-year fixed-rate charter contract for the Magellan Spirit, which commenced in late-May 2019. In connection with this new three-year charter, one of our subsidiaries agreed to charter-in the vessel from Teekay LNG in order to facilitate the charter-out of the vessel to the third-party customer on back-to-back terms. The in-charter by us is expected to be in place for a temporary basis until the out-charter contract is novated to Teekay LNG, at which time Teekay LNG expects to continue to directly charter the vessel to the third-party customer for the duration of the remaining three-year charter. In connection with this arrangement, the Teekay LNG-Marubeni Joint Venture extended its existing charter-out contract to Teekay LNG for the same three-year period to cover the entire charter period with the third-party customer.

In December 2018, Teekay LNG announced that its General Partner's Board of Directors had authorized a common unit repurchase program for the repurchase of up to $100 million of Teekay LNG's common units. During the three and six months ended June 30, 2019, Teekay LNG repurchased 0.2 million common units and 1.0 million common units, respectively, for $2.5 million and $11.8 million, respectively, and associated 2% general partnership interest of $0.1 million and $0.2 million, respectively. As at June 30, 2019 the maximum dollar value of units that may yet be purchased under the program is approximately $84.5 million.



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Operating Results – Teekay LNG
The following tables compare Teekay LNG’s operating results, equity income and number of calendar-ship-days for its vessels for the three and six months ended June 30, 2019 and 2018.
(in thousands of U.S. Dollars, except calendar-ship-days)
Liquefied Gas
 
Conventional
 
Teekay LNG
Carriers
 
Tankers
 
Total
 
Three Months Ended June 30,
 
2019

2018

2019

2018

2019

2018
Revenues
150,691

 
112,172

 
2,369

 
10,143

 
153,060

 
122,315

Voyage expenses
(6,026
)
 
(4,445
)
 
3

 
(3,506
)
 
(6,023
)
 
(7,951
)
Vessel operating expenses
(26,776
)
 
(29,672
)
 
(681
)
 
(3,547
)
 
(27,457
)
 
(33,219
)
Time-charter hire expense
(3,080
)
 
—

 
—

 
—

 
(3,080
)
 
—

Depreciation and amortization
(35,169
)
 
(28,661
)
 
(169
)
 
(1,133
)
 
(35,338
)
 
(29,794
)
General and administrative expenses (1)(2)
(5,396
)
 
(6,949
)
 
(271
)
 
(897
)
 
(5,667
)
 
(7,846
)
Write-down of vessels
—

 
(33,000
)
 
—

 
—

 
—

 
(33,000
)
Restructuring charges
—

 
—

 
(818
)
 
—

 
(818
)
 
—

Income from vessel operations
74,244

 
9,445

 
433

 
1,060

 
74,677

 
10,505

 
 
 
 
 
 
 
 
 
 
 
 
Equity income
1,738

 
11,194

 
—

 
—

 
1,738

 
11,194

 
 
 
 
 
 
 
 
 
 
 
 
Calendar-Ship-Days (3)
 
 
 
 
 
 
 
 
 
 
 
Liquefied Gas Carriers
2,912

 
2,419

 
—

 
—

 
2,912

 
2,419

Conventional Tankers
—

 
—

 
91

 
455

 
91

 
455


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(in thousands of U.S. Dollars, except calendar-ship-days)
Liquefied Gas
 
Conventional
 
Teekay LNG
Carriers
 
Tankers
 
Total
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Revenues
297,673

 
217,221

 
5,131

 
20,400

 
302,804

 
237,621

Voyage expenses
(11,934
)
 
(7,253
)
 
136

 
(6,499
)
 
(11,798
)
 
(13,752
)
Vessel operating expenses
(51,683
)
 
(53,860
)
 
(1,875
)
 
(7,326
)
 
(53,558
)
 
(61,186
)
Time-charter hire expense
(8,671
)
 
—

 
—

 
—

 
(8,671
)
 
—

Depreciation and amortization
(68,776
)
 
(55,882
)
 
(688
)
 
(3,179
)
 
(69,464
)
 
(59,061
)
General and administrative expenses (1)(2)
(11,922
)
 
(13,236
)
 
(377
)
 
(1,681
)
 
(12,299
)
 
(14,917
)
Write-down of vessels
—

 
(33,000
)
 
—

 
(18,662
)
 
—

 
(51,662
)
Restructuring charges
—

 
—

 
(2,976
)
 
(1,396
)
 
(2,976
)
 
(1,396
)
Income (loss) from vessel operations
144,687

 
53,990

 
(649
)
 
(18,343
)
 
144,038

 
35,647

 
 
 
 
 
 
 
 
 
 
 
 
Equity income
7,316

 
37,918

 
—

 
—

 
7,316

 
37,918

 
 
 
 
 
 
 
 
 
 
 
 
Calendar-Ship-Days (3)
 
 
 
 
 
 
 
 
 
 
 
Liquefied Gas Carriers
5,762

 
4,719

 
—

 
—

 
5,762

 
4,719

Conventional Tankers
—

 
—

 
204

 
854

 
204

 
854


(1)
Includes direct general and administrative expenses and indirect general and administrative expenses allocated to the liquefied gas carriers and conventional tankers based on estimated use of corporate resources.
(2)
Commencing in the fourth quarter of 2018, an adjustment was made to reclassify ship management cost recovery from general and administrative expenses to vessel operating expenses. The results of the three and six months ended June 30, 2018 have been reclassified to conform to the presentation adopted in the fourth quarter of 2018.
(3)
Calendar-ship-days presented relate to consolidated vessels.
Teekay LNG – Liquefied Gas Carriers
As at June 30, 2019, Teekay LNG’s liquefied gas fleet, including newbuildings, included 49 LNG carriers, 29 LPG/multi-gas carriers and one LNG regasification terminal under construction in Bahrain, in which its ownership interests ranged from 20% to 100%. However, the table above only includes the financial results of the 24 LNG carriers and seven LPG/multi-gas carriers that are accounted for under the consolidation method of accounting and the Magellan Spirit, a vessel chartered-in from the Teekay LNG-Marubeni Joint Venture. The financial results of Teekay LNG's other vessels accounted for under the equity method are explained in the equity income section below.

The number of total calendar-ship-days for Teekay LNG’s liquefied gas carriers consolidated in its financial results increased to 5,762 days for the six months ended June 30, 2019 from 4,719 days for the same period in 2018, as a result of the deliveries of the Magdala, Myrina, Megara, Bahrain Spirit, Sean Spirit and Yamal Spirit LNG carrier newbuildings and the Magellan Spirit chartered-in from the Teekay LNG-Marubeni Joint Venture commencing in September 2018. During the six months ended June 30, 2019, vessels in this segment were off-hire for 137 days for scheduled dry dockings, 31 days for unscheduled repairs and idle for 22 days for repositioning to other charters; compared to vessels in this segment being off-hire for 100 days for scheduled dry dockings, 38 days for unscheduled repairs and idle for 12 days for repositioning to other charters in the same period of the prior year.

Income from vessel operations for Teekay LNG’s liquefied gas carriers increased to $74.2 million and $144.7 million for the three and six months ended June 30, 2019, respectively, compared to $9.4 million and $54.0 million in the same periods in the prior year, primarily as a result of:

•
an increase of $33.0 million for the three and six months ended June 30, 2019 due to a write-down of the Napa Spirit, Camilla Spirit, Cathinka Spirit and Pan Spirit in the second quarter of 2018 as a result of Teekay LNG's evaluation of alternative strategies for these assets, the current charter rate environment and outlook for charter rates for these vessels at that time.

•
increases of $14.0 million and $27.5 million for the three and six months ended June 30, 2019, respectively, due to the deliveries of the Sean Spirit, Bahrain Spirit and Yamal Spirit and commencement of their charter contracts;

•
increases of $9.4 million and $22.2 million for the three and six months ended June 30, 2019, respectively, due to the delivery of the Torben Spirit, Magdala, Myrina and Megara following the commencement of their charter contracts in 2018;


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•
increases of $7.3 million and $10.9 million for the three and six months ended June 30, 2019, respectively, due to seven Multi-gas carriers previously on bareboat charter contracts to wholly-owned subsidiaries of I.M. Skaugen SE (or Skaugen) being redelivered to Teekay LNG from Skaugen during 2017, which earned higher spot revenues and incurred lower operating expenses for the three and six months ended June 30, 2019 compared to the same periods in the prior year.

•
increases of $2.3 million and $1.6 million for the three and six months ended June 30, 2019, respectively, due to the Catalunya Spirit being off-hire for 28 days in the second quarter of 2018 for a scheduled dry docking; and

•
an increase of $3.0 million for the six months ended June 30, 2019 due to the Magellan Spirit being chartered-in from the Teekay LNG-Marubeni Joint Venture since September 2018 and commencing its charter-out employment in October 2018;

partially offset by

•
a decrease of $1.5 million for the three months ended June 30, 2019 due to the Magellan Spirit being off-hire for 70 days between March and May 2019 for repositioning and a scheduled dry docking of the vessel; and

•
decreases of $1.2 million and $5.6 million for the three and six months ended June 30, 2019 due to the Galicia Spirit and Madrid Spirit being off-hire for 37 days and 20 days, respectively, and the impact of the depreciation of the Euro on Teekay LNG's Euro-denominated revenue in the first half of 2019.

Equity income related to Teekay LNG’s liquefied gas carriers decreased to $1.7 million and $7.3 million for the three and six months ended June 30, 2019, respectively, compared to income of $11.2 million and $37.9 million for the same periods in the prior year, as set forth in the table below:
(in thousands of U.S. Dollars)
 
 
 
 
 
 
 
 
 
 
Pan
 
 
 
Bahrain
 
Angola
 
Exmar
 
Exmar
 
MALT
 
RasGas 3
 
Union
 
Yamal
 
LNG
Total
 
LNG
 
LNG
 
LPG
 
LNG
 
LNG
 
LNG
 
LNG
 
Joint
Equity
Three Months Ended
Carriers
 
Carriers
 
Carriers
 
Carriers
 
Carriers
 
Carriers
 
Carriers
 
Venture
Income
June 30, 2019
386

 
955

 
(1,639
)
 
(3,826
)
 
2,743

 
2,660

 
5,634

 
(5,175
)
1,738

June 30, 2018
4,824

 
723

 
(1,425
)
 
(2,276
)
 
3,310

 
1,503

 
4,867

 
(332
)
11,194

Difference
(4,438
)
 
232

 
(214
)
 
(1,550
)
 
(567
)
 
1,157

 
767

 
(4,843
)
(9,456
)
(in thousands of U.S. Dollars)
 
 
 
 
 
 
 
 
 
 
Pan
 
 
 
Bahrain
 
Angola
 
Exmar
 
Exmar
 
MALT
 
RasGas 3
 
Union
 
Yamal
 
LNG
Total
 
LNG
 
LNG
 
LPG
 
LNG
 
LNG
 
LNG
 
LNG
 
Joint
Equity
Six Months Ended
Carriers
 
Carriers
 
Carriers
 
Carriers
 
Carriers
 
Carriers
 
Carriers
 
Venture
Income
June 30, 2019
1,120

 
1,684

 
(3,554
)
 
(3,062
)
 
5,193

 
5,307

 
11,264

 
(10,636
)
7,316

June 30, 2018
13,310

 
7,439

 
(2,105
)
 
(1,712
)
 
7,505

 
2,577

 
5,639

 
5,265

37,918

Difference
(12,190
)
 
(5,755
)
 
(1,449
)
 
(1,350
)
 
(2,312
)
 
2,730

 
5,625

 
(15,901
)
(30,602
)

Angola LNG Carriers. The decreases in equity income of $4.4 million and $12.2 million for the three and six months ended June 30, 2019, respectively, from Teekay LNG's 33% investment in the four LNG carriers relating to the Angola Project (or the Angola LNG Carriers) in Teekay LNG's joint venture with Mitsui & Co. Ltd. and NYK Energy Transport (Atlantic) Ltd (or the Angola LNG Joint Venture) were primarily due to mark-to-market changes on non-designated derivative instruments, where unrealized losses were recognized during the three and six months ended June 30, 2019 compared to unrealized gains in the same periods in 2018. The mark-to-market changes resulted from decreases in long-term LIBOR benchmark interest rates for interest rate swaps relative to the beginning of the second quarter of 2019 and the beginning of 2019.

Exmar LNG Carriers. The decrease in equity income of $5.8 million for the six months ended June 30, 2019, from Teekay LNG's 50%-owned investment in the LNG carriers relating to its LNG joint venture with Exmar NV (or the Exmar LNG Carriers) was primarily due to the gain on sale of Teekay LNG's interest in its 50%-owned joint venture with Exmar NV (or the Excelsior Joint Venture) recorded in the first quarter of 2018 and lower earnings due to such sale.
Exmar LPG Carriers. The decreases in equity income of $0.2 million and $1.4 million for the three and six months ended June 30, 2019, respectively, from Teekay LNG's 50% ownership interest in Exmar LPG BVBA (or the Exmar LPG Joint Venture) was primarily due to unrealized losses on non-designated derivative instruments recorded in earnings during the three and six months ended June 30, 2019 compared to unrealized gains recorded in earnings in the same periods in 2018 due to mark-to-market changes.

Malt LNG Carriers. The decreases in equity income of $1.6 million and $1.4 million for the three and six months ended June 30, 2019, respectively, from Teekay LNG's 52%-owned investment in the LNG carriers relating to its Teekay LNG-Marubeni Joint Venture (or the MALT LNG Carriers) were primarily due to a scheduled dry docking and main engine overhauls for certain vessels during the second quarter of 2019; partially offset by an increase in the charter rate earned on the Magellan Spirit upon commencement of the charter-out contract with Teekay LNG in the third quarter of 2018.


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RasGas 3 LNG Carriers. The decrease in equity income of $2.3 million for the six months ended June 30, 2019, from Teekay LNG's 40% investment in the four LNG carriers relating to its joint venture with QGTC Nakilat (1643-6) Holdings Corporation (or the RasGas 3 LNG Carriers) was primarily due to higher interest expense due to an increase in LIBOR and ineffectiveness recovery of hedge-accounted swaps being recognized through earnings during the six months ended June 30, 2018 compared to any ineffectiveness being recognized directly to accumulated other comprehensive (loss) income (or AOCI) upon adoption of ASU 2017-12 regarding hedge accounting in 2019. Please read "Item 1 - Financial Statements: Note 2 – Recent Accounting Pronouncements".
Pan Union LNG Carriers. The increases in equity income of $1.2 million and $2.7 million for the three and six months ended June 30, 2019, respectively, from Teekay LNG's investment in the four LNG carriers relating to the Pan Union Joint Venture (or the Pan Union LNG Carriers) were primarily due to the deliveries of its three LNG carrier newbuildings, the Pan Americas, Pan Europe and Pan Africa, in January 2018, July 2018 and January 2019, respectively, in which Teekay LNG has ownership interests ranging from 20% to 30%.
Yamal LNG Carriers. The increases in equity income of $0.8 million and $5.6 million for the three and six months ended June 30, 2019, respectively, from Teekay LNG's 50%-owned investment in the six ARC7 LNG carriers (or the Yamal LNG Carriers) relating to the Yamal LNG Joint Venture were primarily due to the delivery of its second and third ARC7 LNG carrier newbuildings, the Rudolf Samoylovich and Nikolay Yevgenov, in September 2018 and June 2019, respectively, and ineffectiveness of hedge-accounted swaps being recognized through earnings during 2018 compared to any ineffectiveness being recognized directly to accumulated other comprehensive (loss) income upon adoption of ASU 2017-12 in 2019.
Bahrain LNG Joint Venture. The decreases in equity income of $4.8 million and $15.9 million for the three and six months ended June 30, 2019, respectively, in Teekay LNG's 30%-owned investment in the joint venture with National Oil and Gas Authority, Gulf Investment Corporation, and Samsung C&T (or the Bahrain LNG Joint Venture) was primarily due to unrealized losses on derivative instruments recorded during the three and six months ended June 30, 2019 compared to gains in the same periods in 2018 and due to the Bahrain Spirit floating storage unit (or FSU) being chartered-in to the Bahrain LNG Joint Venture from Teekay LNG commencing September 2018.
Teekay LNG – Conventional Tankers
As at June 30, 2019, Teekay LNG’s conventional tanker fleet included one Handymax product tanker while as at June 30, 2018, Teekay LNG's conventional tanker fleet included three Suezmax tankers and one Handymax product tanker.

The number of calendar-ship-days for Teekay LNG’s conventional tankers decreased by 76.1% to 204 days for the six months ended June 30, 2019 from 854 days for the same period in 2018, primarily as a result of the sales of the Teide Spirit, European Spirit, African Spirit and Toledo Spirit in February 2018, October 2018, December 2018 and January 2019, respectively.

Income from vessel operations for Teekay LNG’s conventional tankers decreased to $0.4 million for the three months ended June 30, 2019 compared to income of $1.1 million for the same period in the prior year, primarily as a result of lower earnings after the vessel sales noted above.

Loss from vessel operations for Teekay LNG’s conventional tankers decreased to $0.6 million for the six months ended June 30, 2019 compared to a loss of $18.3 million for the same period in the prior year, primarily as a result of write-downs of the Alexander Spirit, European Spirit and African Spirit for the six months ended June 30, 2018, partially offset by lower earnings after the vessel sales noted above.
Teekay Tankers
Recent Developments in Teekay Tankers
In the second quarter of 2019, Teekay Tankers entered into a time charter-in contract for one Aframax tanker for a firm period of two years at a daily rate of $21,000 with an option period of one year at $22,000 per day. The vessel is expected to be delivered to Teekay Tankers during the third quarter of 2019.

In June 2019, the charterer of one Suezmax vessel exercised its one year option period at a daily rate of $22,750. The option period will commence in August 2019.

In May 2019, Teekay Tankers completed a $63.7 million sale-leaseback financing transaction for two of its Suezmax tankers. Each vessel is leased on a bareboat charter for nine years, with a fixed daily rate of $12,300, with purchase options throughout the lease term commencing at the end of the second year, and a purchase obligation at the end of the lease term. Proceeds from the sale-leaseback transaction were used to prepay a portion of one of Teekay Tankers' loan facilities. The vessels were delivered to the buyer in May 2019.

In the first quarter of 2019, Teekay Tankers entered into time charter-in contracts for two LR2 product tankers, each of which has a two-year term with a one-year extension option. The two time charter-in contracts have a weighted-average daily rate of $20,500 and Teekay Tankers entered into a risk-sharing agreement with a third party for one of the vessels, whereby an agreed portion of net profit or loss is shared with the third party. Both vessels delivered in January 2019 and have been trading in the Taurus LR2 revenue sharing arrangement.

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Operating Results – Teekay Tankers
The following table compares Teekay Tankers’ operating results, equity income and number of calendar-ship-days for its vessels for the three and six months ended June 30, 2019 and 2018.
(in thousands of U.S. Dollars, except calendar-ship-days)
Three Months Ended
 
Six Months Ended
June 30,
 
June 30,
 
2019
 
2018
 
2019
 
2018
Revenues
202,277

 
171,659

 
434,778

 
340,124

Voyage expenses
(92,668
)
 
(86,933
)
 
(190,007
)
 
(166,926
)
Vessel operating expenses
(53,600
)
 
(52,652
)
 
(108,187
)
 
(105,647
)
Time-charter hire expense
(10,792
)
 
(5,697
)
 
(20,240
)
 
(10,380
)
Depreciation and amortization
(30,658
)
 
(29,573
)
 
(60,523
)
 
(59,003
)
General and administrative
(9,508
)
 
(9,407
)
 
(18,673
)
 
(19,192
)
Gain on sale of vessel
—

 
170

 
—

 
170

Restructuring charges
—

 
(982
)
 
—

 
(982
)
Income (loss) from vessel operations
5,051

 
(13,415
)
 
37,148

 
(21,836
)
 
 
 
 
 
 
 
 
Equity (loss) income
(169
)
 
(70
)
 
584

 
624

 
 
 
 
 
 
 
 
Calendar-Ship-Days (1)
 
 
 
 
 
 
 
Conventional Tankers
5,582

 
5,360

 
11,041

 
10,580


(1)
Calendar-ship-days presented relate to owned and in-chartered consolidated vessels.
Tanker Market
Crude tanker spot rates declined during the second quarter of 2019 compared to the first quarter of 2019 primarily due to seasonal factors, as well as some near-term headwinds which have continued into the beginning of the third quarter.

Lower OPEC oil production has impacted crude tanker demand during the first half of 2019, with OPEC crude oil production down by around 2.5 million barrels per day (mb/d) since November 2018. This reduction is due to both over-compliance with the 1.2 mb/d of supply cuts announced in early-2019 and reduced volumes from Iran and Venezuela due to U.S. sanctions. In addition, the elimination of Venezuelan oil shipments to the U.S. has resulted in a reduction in shipping activity in the U.S. Gulf / Caribbean Aframax market.

Tanker rates have also been impacted by heavier than normal refinery maintenance in the first half of the year as refiners prepare for the upcoming IMO 2020 regulations. According to the IEA, global refining throughput fell by 0.7 mb/d year-on-year in the second quarter of 2019, the largest annual decline in 10 years. This led to reduced crude tanker demand, which has carried over into the early part of the third quarter.

Finally, the first half of 2019 saw relatively high tanker fleet growth of 20.5 million deadweight tonnes (mdwt), or 3.5 percent, which was the highest level of fleet growth in a six-month period since the first half of 2011. This high fleet growth was a result of a heavy newbuilding delivery schedule since the start of the year and a lack of tanker scrapping, with just 2.7 mdwt of vessels removed in the first half of the year compared to 21.5 mdwt for the full year of 2018.

Despite some near-term headwinds, the tanker market fundamentals continue to support a market recovery in the latter part of the year and into 2020. First, refinery throughput is expected to increase significantly in the coming months as refiners ramp up activity in order to produce sufficient low sulphur fuels ahead of the impending IMO 2020 regulations. According to the IEA, global refinery throughput is estimated to increase by over 3 mb/d in the third quarter of 2019 compared to the second quarter, which is expected to be positive for crude tanker demand. The new IMO 2020 regulations could create additional volatility for the tanker market through new trade patterns and arbitrage movements, floating storage demand, and a potential increase in port congestion as the market adjusts to the change.

U.S. crude oil exports have averaged 2.8 mb/d in 2019 to date, up from 2.0 mb/d last year. However, further increases are being hampered by a lack of pipeline capacity to the Gulf coast. This is expected to be alleviated in the coming months when three large pipelines with a combined capacity of around 2 mb/d are planned to come online, allowing U.S. crude exports to increase significantly. This is expected to be positive for mid-size tanker demand due to both direct exports to Europe on Aframax and Suezmax tankers, and increased Aframax lightering demand for transportation on Very Large Crude Carriers to Asia.

Finally, the tanker fleet is set for a period of much lower fleet growth over the next two years due to a relatively small orderbook. The tanker orderbook currently totals 53 mdwt, or 8.7 percent of the existing fleet size, which is the lowest tanker fleet-to-orderbook ratio since early-1997.

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Fleet growth could be further offset by an increase in vessel off-hire time in the coming months as ships are taken out of service for scrubber retrofitting in anticipation of IMO 2020 regulations. As a result, lower fleet growth levels are expected in the second half of the year, with continued low fleet growth during 2020.

In summary, the tanker market is currently at a seasonal low point, which is compounded by some near-term factors. However, the fundamentals continue to point towards a stronger tanker market during the latter part of 2019 and into 2020 due to a tighter tanker supply / demand balance.

Teekay Tankers – Conventional Tankers
As at June 30, 2019, Teekay Tankers owned 56 double-hulled conventional oil and product tankers and time chartered-in three Aframax and two LR2 tankers, and owned a 50% interest in one Very Large Crude Carrier. The average fleet size (including in-chartered vessels), as measured by calendar-ship-days, increased during the six months ended June 30, 2019, compared to the same period in the prior year, primarily due to the addition of two Aframax and two LR2 in-chartered tankers that were delivered to Teekay Tankers in the fourth quarter of 2018 and first quarter of 2019, partially offset by the redeliveries of three in-chartered vessels to their owners at various times during 2018.

Income from vessel operations was $5.1 million and $37.1 million for the three and six months ended June 30, 2019, respectively, compared to losses from vessel operations of $13.4 million and $21.8 million for the same periods in the prior year, primarily as a result of:

•
increases of $20.3 million and $61.7 million for the three and six months ended June 30, 2019, respectively, due to higher overall average realized spot tanker rates earned by Teekay Tankers' Suezmax, Aframax and LR2 fleets during 2019;
•
increases of $5.4 million and $8.1 million for the three and six months ended June 30, 2019, respectively, due to improved net results from Teekay Tankers' FSL and STS transfer businesses; and
•
an increase of $1.3 million for the six months ended June 30, 2019 due to the addition of two Aframax and two LR2 in-chartered tankers that were delivered to Teekay Tankers in the fourth quarter of 2018 and first quarter of 2019;
partially offset by
•
decreases of $5.5 million and $10.7 million for the three and six months ended June 30, 2019, respectively, due a higher number of off-hire days and higher off-hire bunker expenses compared to the same periods in the prior year; and
•
decreases of $1.4 million and $2.2 million for the three and six months ended June 30, 2019, respectively, primarily due to the amortization of new dry dockings with higher costs and completing the first dry dockings for various former TIL vessels subsequent to Teekay Tankers' acquisition of TIL in late 2017.
Teekay Parent
Recent Developments in Teekay Parent
In May 2019, Teekay Parent sold to Brookfield Business Partners L.P. (or Brookfield) all of our remaining interests in Teekay Offshore (or the 2019 Brookfield Transaction), which included our 49% general partner interest, common units, warrants, and an outstanding $25.0 million loan from us to Teekay Offshore, for total proceeds of $100.0 million in cash. As a result of the transaction, we recorded an impairment charge of $64.9 million during the six months ended June 30, 2019, and we recognized a loss on sale of $8.9 million in the second quarter of 2019.

The Petrojarl Banff FPSO unit has been operating on the Banff field since its delivery nearly 20 years ago under a charter contract with Canadian Natural Resources (or CNR) that permitted CNR to terminate the contact at any time with six months’ notice. In January 2017, Teekay Parent entered into a contract amendment with CNR to ensure the unit would stay on the current field at least until the third quarter of 2018 and to revise the charter rate structure to include a variable component (through an oil price and oil production tariff) in addition to a fixed charter rate. In July 2018, Teekay Parent secured a one-year contract extension with CNR to extend the employment of the Petrojarl Banff FPSO to August 2019. In May 2019, Teekay Parent entered into a further contract extension with CNR to extend the employment of the Petrojarl Banff FPSO for a period of one year to the end of August 2020.


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Operating Results – Teekay Parent

The following tables compare Teekay Parent’s operating results, equity (loss) income and the number of calendar-ship-days for its vessels for the three and six months ended June 30, 2019 and 2018.
 
(in thousands of U.S. Dollars, except calendar-ship-days)
Offshore
 
Other and
 
Teekay Parent
Production
 
Corporate G&A
 
Total
 
Three Months Ended June 30,
 
2019

2018

2019

2018

2019

2018
Revenues
57,828

 
66,429

 
47,989

 
46,183

 
105,817

 
112,612

Voyage expenses
(9
)
 
(208
)
 
—

 
(22
)
 
(9
)
 
(230
)
Vessel operating expenses
(41,229
)
 
(37,650
)
 
(41,335
)
 
(37,569
)
 
(82,564
)
 
(75,219
)
Time-charter hire expense
(11,512
)
 
(11,515
)
 
(5,920
)
 
(4,875
)
 
(17,432
)
 
(16,390
)
Depreciation and amortization
(7,811
)
 
(8,593
)
 
(42
)
 
—

 
(7,853
)
 
(8,593
)
General and administrative expenses (1)
(3,254
)
 
(2,922
)
 
(2,819
)
 
(4,295
)
 
(6,073
)
 
(7,217
)
Asset impairments
—

 
—

 
—

 
—

 
—

 
—

Restructuring charges (2)
—

 
—

 
(151
)
 
(132
)
 
(151
)
 
(132
)
(Loss) income from vessel operations
(5,987
)
 
5,541

 
(2,278
)
 
(710
)
 
(8,265
)
 
4,831

 
 
 
 
 
 
 
 
 


 


Equity (loss) income
—

 
583

 
—

 
(1,523
)
 
—

 
(940
)
 
 
 
 
 
 
 
 
 
 
 
 
Calendar-Ship-Days (3)
 
 
 
 
 
 
 
 
 
 
 
FPSO Units
273

 
273

 
—

 
—

 
273

 
273

Gas Carriers
—

 
—

 
31

 
30

 
31

 
30

FSO Units
91

 
91

 
113

 
182

 
204

 
273

Shuttle Tankers
182

 
182

 
—

 
—

 
182

 
182

Bunker Barges
—

 
—

 
91

 
91

 
91

 
91


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(in thousands of U.S. Dollars, except calendar-ship-days)
Offshore
 
Other and
 
Teekay Parent
Production
 
Corporate G&A
 
Total
 
Six Months Ended June 30,
 
2019

2018

2019

2018

2019

2018
Revenues (1)
107,266

 
132,399

 
98,648

 
98,127

 
205,914

 
230,526

Voyage expenses
(18
)
 
(380
)
 
—

 
(108
)
 
(18
)
 
(488
)
Vessel operating expenses
(78,154
)
 
(73,563
)
 
(81,843
)
 
(77,649
)
 
(159,997
)
 
(151,212
)
Time-charter hire expense
(22,614
)
 
(23,002
)
 
(9,617
)
 
(16,095
)
 
(32,231
)
 
(39,097
)
Depreciation and amortization
(15,847
)
 
(17,187
)
 
(122
)
 
(20
)
 
(15,969
)
 
(17,207
)
General and administrative expenses (2)
(5,849
)
 
(5,844
)
 
(7,399
)
 
(9,189
)
 
(13,248
)
 
(15,033
)
Write-down and loss on sales of vessels
(3,328
)
 
—

 
—

 
—

 
(3,328
)
 
—

Restructuring charges (1)
—

 
—

 
(6,614
)
 
(874
)
 
(6,614
)
 
(874
)
(Loss) income from vessel operations
(18,544
)
 
12,423

 
(6,947
)
 
(5,808
)
 
(25,491
)
 
6,615

 
 
 
 
 
 
 
 
 
 
 
 
Equity income (loss)
—

 
(9
)
 
—

 
(1,912
)
 
—

 
(1,921
)
 
 
 
 
 
 
 
 
 
 
 
 
Calendar-Ship-Days (3)
 
 
 
 
 
 
 
 
 
 
 
FPSO Units
543

 
543

 
—

 
—

 
543

 
543

Gas Carriers
—

 
—

 
31

 
185

 
31

 
185

FSO Units
181

 
181

 
293

 
362

 
474

 
543

Shuttle Tankers
362

 
362

 
—

 
—

 
362

 
362

Bunker Barges
—

 
—

 
181

 
181

 
181

 
181


(1)
Restructuring charges for the six months ended June 30, 2019 included approximately $6.5 million related to severance costs resulting from the termination of certain management services contracts in Teekay Parent, which were fully recovered from the customer and such recovery is included in Revenues.
(2)
Includes direct general and administrative expenses and indirect general and administrative expenses allocated to offshore production, and other and corporate G&A based on estimated use of corporate resources.
(3)
Apart from three FPSO units in 2019 and 2018, all remaining calendar-ship-days presented relate to in-chartered vessels.
Teekay Parent – Offshore Production

Offshore Production consists primarily of Teekay Parent's FPSO units. As at June 30, 2019, Teekay Parent had direct interests in three 100%-owned operating FPSO units, and in-chartered two shuttle tankers and one FSO unit from Teekay Offshore.

The charter contracts for the Hummingbird Spirit FPSO unit and the Petrojarl Banff FPSO unit include an incentive compensation component based on production and oil price. In addition, the Petrojarl Foinaven FPSO unit’s charter contract includes incentives based on total oil production for the year, certain operational measures, and the average annual oil price. As such, changes in oil prices impact Teekay Parent's incentive compensation under these contracts and may negatively impact its future revenues if oil prices fall below current levels.
Loss from vessel operations for Teekay Parent’s Offshore Production business was $6.0 million and $18.5 million for the three and six months ended June 30, 2019, respectively, compared to income from vessel operations of $5.5 million and $12.4 million for the same periods in the prior year. The changes were primarily as a result of:
•
decreases of $9.4 million and $14.3 million for the three and six months ended June 30, 2019, respectively, related to the Petrojarl Foinaven FPSO unit, primarily due to lower production, higher shutdown days, and timing differences in revenue recognition due to the adoption of ASC 842 Leases in 2019;
•
a decrease of $9.6 million for the six months ended June 30, 2019, related to the Petrojarl Banff FPSO unit, primarily due to lower production, higher shutdown days, timing differences in revenue recognition due to the adoption of ASC 842 Leases in 2019, lower oil prices and a lower day rate commencing in 2019; and
•
decreases of $1.3 million and $3.1 million for the three and six months ended June 30, 2019, respectively, related to the Hummingbird Spirit FPSO unit, primarily due to lower tariff revenue earned in 2019 due to lower oil prices and lower production.
Teekay Parent – Other and Corporate G&A
As at June 30, 2019, Teekay Parent had one FSO unit in-chartered from Teekay Offshore, one chartered-in LNG unit owned by Teekay LNG, and one bunker barge in-chartered from a third party. Teekay Parent redelivered two in-chartered LNG carriers to Teekay LNG in March 2018 and May 2018, respectively. The contract for one FSO unit terminated in April 2019 whereupon the unit was sold to the customer.

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Loss from vessel operations for Teekay Parent’s Other and Corporate G&A segment was $2.3 million and $6.9 million for the three and six months ended June 30, 2019, respectively, compared to losses from vessel operations of $0.7 million and $5.8 million in the same periods in the prior year. The increase in loss was primarily due to the termination of contracts for managing drybulk vessels, partially offset by a decrease in corporate expenses and the redelivery of the two in-chartered LNG carriers to Teekay LNG in 2018.

Teekay Parent – Equity Loss

Equity income was $nil for both the three and six months ended June 30, 2019, compared to an equity loss of $0.9 million and $1.9 million for the three and six months ended June 30, 2018. The change was primarily due to the sale of Teekay Parent's 50% ownership interest in KT Maritime Services Australia Pty Ltd in April 2018.
Equity-Accounted Investment in Teekay Offshore
Recent Developments in Teekay Offshore
In May 2019, we sold to Brookfield all of our remaining interests in Teekay Offshore, which included our 49% general partner interest, common units, warrants, and an outstanding $25 million loan from us to Teekay Offshore, for total proceeds of $100 million.

Operating Results – Teekay Offshore
Subsequent to the deconsolidation of Teekay Offshore in September 2017 and prior to the sale in May 2019, we accounted for our investment in Teekay Offshore's general partner and common units using the equity method. For the periods from April 1, 2019 to May 8, 2019 and January 1, 2019 to May 8, 2019, respectively, we recognized equity losses in respect of Teekay Offshore of $nil and $3.1 million (three and six months ended June 30, 2018 – equity losses of $9.3 million and $8.7 million, respectively). We wrote-down the investment in Teekay Offshore by $64.9 million in the six months ended June 30, 2019 and recognized a loss on sale of $8.9 million in the three and six months ended June 30, 2019.
Other Consolidated Operating Results
The following table compares our other consolidated operating results for the three and six months ended June 30, 2019 and 2018:
 
Three Months Ended
 
Six Months Ended
June 30,
 
June 30,
(in thousands of U.S. dollars)
2019
 
2018
 
2019
 
2018
 
$
 
$
 
$
 
$
Interest expense
(70,205
)
 
(59,526
)
 
(143,876
)
 
(114,151
)
Interest income
2,233

 
2,095

 
4,922

 
3,772

Realized and unrealized (losses) gains on non-designated derivative instruments
(10,964
)
 
10,723

 
(16,387
)
 
20,149

Foreign exchange (loss) gain
(5,851
)
 
12,529

 
(8,481
)
 
12,551

Loss on deconsolidation of Teekay Offshore
—

 
—

 
—

 
(7,070
)
Other (loss) income
(11,099
)
 
520

 
(11,071
)
 
(395
)
Income tax expense
(3,404
)
 
(8,746
)
 
(8,440
)
 
(12,863
)
Interest Expense. Interest expense increased to $70.2 million and $143.9 million for the three and six months ended June 30, 2019, respectively, from $59.5 million and $114.2 million for the same periods in the prior year, primarily due to:
•
increases of $10.1 million and $21.0 million for the three and six months ended June 30, 2019, respectively, relating to interest incurred by Teekay LNG on the debt and obligations related to the deliveries of the Myrina, Megara and Bahrain Spirit, Sean Spirit and Yamal Spirit LNG carriers;
•
increases of $2.7 million and $6.8 million for the three and six months ended June 30, 2019, respectively, primarily due to the additional interest expense incurred by Teekay Tankers with respect to three sale-leaseback transactions completed in September 2018, November 2018 and May 2019.
•
increases of $3.0 million and $5.4 million for the three and six months ended June 30, 2019, respectively, due to decreases in capitalized interest in Teekay LNG as a result of vessels delivered during 2018 and 2019;

•
an increase of $2.1 million for the six months ended June 30, 2019 relating to interest incurred by Teekay LNG as a result of higher LIBOR rates, as compared to the same period of the prior year, net of principal repayments; and

•
an increase of $2.0 million for the six months ended June 30, 2019 relating to Teekay LNG's write-off of debt issuance costs upon completion of debt refinancing in January 2019 on the Sean Spirit;

partially offset by

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•
decreases of $1.1 million and $2.5 million for the three and six months ended June 30, 2019, respectively, relating to interest incurred by Teekay Parent as a result of the prepayment of the outstanding amounts under one revolving credit facility and lower debt issuance cost amortization on an amendment of another revolving credit facility; and
•
net decreases of $3.7 million and $4.9 million for the three and six months ended June 30, 2019, respectively, as a result of the repurchase of the 8.5% senior notes (or the 2020 Notes), partially offset by an increase in debt issuance cost amortization and the higher interest rate for the 9.25% senior secured notes due November 2022 (or the 2022 Notes) issued by Teekay Parent in May 2019.
Realized and unrealized (losses) gains on non-designated derivative instruments. Realized and unrealized (losses) gains related to derivative instruments that are not designated in qualifying hedging relationships for accounting purposes are included as a separate line item in the consolidated statements of loss. Net realized and unrealized (losses) gains on non-designated derivatives were losses of $11.0 million and $16.4 million for the three and six months ended June 30, 2019, respectively, compared to net realized and unrealized gains of $10.7 million and $20.1 million for the three and six months ended June 30, 2018, respectively, as detailed in “Financial Statements: Note 15 – Derivative Instruments and Hedging Activities.”
For the six months ended June 30, 2019 and 2018, we had interest rate swap agreements with aggregate average net outstanding notional amounts of approximately $1.1 billion and $1.4 billion, respectively, with average fixed rates of approximately 3.0% and 2.9%, respectively. Short-term variable benchmark interest rates during these periods were generally less than 3.0% and, as such, we incurred realized losses of $1.8 million and $3.5 million during the three and six months ended June 30, 2019, respectively, compared to $4.0 million and $8.8 million for the same periods in the prior year under the interest rate swap agreements.
Primarily as a result of significant changes in the long-term benchmark interest rates during the three and six months ended June 30, 2019, compared with the same periods in 2018, we recognized unrealized losses of $8.2 million and $14.2 million in the three and six months ended June 30, 2019, respectively, compared to unrealized gains of $8.5 million and $24.5 million for the same periods in the prior year under the interest rate swap agreements.
Prior to the 2019 Brookfield Transaction on May 8, 2019, Teekay held 15.5 million common unit warrants issued by Teekay Offshore to Teekay in connection with the 2017 Brookfield Transaction (or the Brookfield Transaction Warrants) and 1,755,000 warrants to purchase common units of Teekay Offshore issued to Teekay in connection with Teekay Offshore's private placement of Series D Preferred Units in June 2016 (or the Series D Warrants). In May 2019, Teekay sold to Brookfield all of the Company’s remaining interests in Teekay Offshore, which included, among other things, both the Brookfield Transaction Warrants and Series D Warrants. During the periods from April 1, 2019 to May 8, 2019 and January 1, 2019 to May 8, 2019, we recognized unrealized gains of $24.6 million and $26.9 million, respectively, on the Brookfield Transaction Warrants and Series D Warrants and as a result of the sale of the Warrants to Brookfield, we recognized a realized loss of $25.6 million during the same periods. During the three and six months ended June 30, 2018, we recognized unrealized gains $6.0 million and $4.4 million, respectively, on the Brookfield Transaction Warrants, and unrealized gains of $0.2 million and $0.1 million, respectively, on the Series D Warrants. Please read “Financial Statements: Note 12 – Financial Instruments.”
Foreign Exchange (Loss) Gain. Foreign currency exchange losses were $5.9 million and $8.5 million, respectively, for the three and six months ended June 30, 2019, compared to gains of $12.5 million and $12.6 million, respectively, for the same periods in the prior year. Our foreign currency exchange gains and losses, substantially all of which are unrealized, are due primarily to the relevant period-end revaluation of our NOK-denominated debt and our Euro-denominated term loans, finance leases and restricted cash for financial reporting purposes and the realized losses on our cross currency swaps. Gains on NOK-denominated and Euro-denominated monetary liabilities reflect a stronger U.S. Dollar against the NOK and Euro on the date of revaluation or settlement compared to the rate in effect at the beginning of the period. Losses on NOK-denominated and Euro-denominated monetary liabilities reflect a weaker U.S. Dollar against the NOK and Euro on the date of revaluation or settlement compared to the rate in effect at the beginning of the period. For the three and six months ended June 30, 2019, foreign currency exchange losses include realized losses of $1.1 million (2018 – $1.8 million) and $2.5 million (2018 – $3.2 million), respectively, and unrealized losses of $0.1 million (2018 – losses of $16.6 million) and $2.1 million (2018 – gains of $5.8 million), respectively, on our cross currency swaps, and unrealized losses of $3.9 million (2018 – gain of $14.9 million) and $4.5 million (2018 – loss of $2.6 million), respectively, on the revaluation of our NOK-denominated debt.
Loss on deconsolidation of Teekay Offshore. During the six months ended June 30, 2018, we recognized a loss of $7.1 million on the deconsolidation of Teekay Offshore. Please read “Financial Statements: Note 4 – Related Party Transactions".
Other (loss) income. Other loss was $11.1 million for the three and six months ended June 30, 2019 compared to income of $0.5 million and a loss of $0.4 million for the three and six months ended June 30, 2018, respectively. Other loss for the three and six months ended June 30, 2019 was primarily due to losses on the repurchase of 2020 Notes.
Income Tax Expense. Income tax expense was $3.4 million and $8.4 million for the three and six months ended June 30, 2019, respectively, compared to $8.7 million and $12.9 million for the same periods in the prior year. The decrease for the three and six months ended June 30, 2019 compared to the same periods in the prior year was primarily due to decreases in freight tax accruals in 2019.


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LIQUIDITY AND CAPITAL RESOURCES
Liquidity and Cash Needs
Teekay Corporation – Consolidated
Overall, our consolidated operations are capital intensive. We finance the purchase of our vessels primarily through a combination of borrowings from commercial banks or our joint venture partners, the issuance of equity and debt securities (primarily by our publicly-traded subsidiaries) and cash generated from operations. In addition, we may use sale and leaseback arrangements as a source of long-term liquidity. We use certain of our revolving credit facilities to temporarily finance capital expenditures until longer-term financing is obtained, at which time we typically use all or a portion of the proceeds from the longer-term financings to prepay outstanding amounts under revolving credit facilities. As at June 30, 2019, Teekay Corporation’s total consolidated cash and cash equivalents were $235.2 million, compared to $424.2 million at December 31, 2018. Teekay Corporation’s total consolidated liquidity, including cash, cash equivalents, undrawn credit facilities and the undrawn portion of a loan, which is determined based on certain borrowing criteria, to finance Teekay Tankers' pool management operations, was $643.7 million as at June 30, 2019 and $724.7 million as at December 31, 2018.

Our revolving credit facilities and term loans are described in “Item 1 – “Financial Statements: Note 9 – Long-Term Debt.” They contain covenants and other restrictions typical of debt financing secured by vessels that restrict the ship-owning subsidiaries from, among other things: incurring or guaranteeing indebtedness; changing ownership or structure, including mergers, consolidations, liquidations and dissolutions; making dividends or distributions if we are in default; making capital expenditures in excess of specified levels; making certain negative pledges and granting certain liens; selling, transferring, assigning or conveying assets; making certain loans and investments; or entering into new lines of business.
 
The Company's long-term debt agreements generally provide for maintenance of minimum consolidated financial covenants and five loan agreements require the maintenance of vessel market value to loan ratios. As at June 30, 2019, these vessel market value to loan ratios ranged from 135% to 511% compared to their minimum required ratios of 115% to 135%. The vessel values used in these ratios are the appraised values provided by third parties where available, or prepared by us, based on second-hand sale and purchase market data. Changes in the LNG/LPG carrier or conventional tanker markets could negatively affect our compliance with these ratios. Two of Teekay Tankers’ term loans, which are scheduled to mature between January 2021 and August 2021 are guaranteed by Teekay. One of the term loans contains covenants that require Teekay to maintain the greater of (a) free cash (cash and cash equivalents) and undrawn committed revolving credit lines with at least six months to maturity of at least $50.0 million and (b) an aggregate of free cash and undrawn committed revolving credit lines with at least six months to maturity of at least 5.0% of Teekay’s total consolidated debt (excluding the debt Teekay LNG and its subsidiaries and Teekay Tankers and its subsidiaries which is non-recourse to Teekay). The other term loan requires Teekay and Teekay Tankers collectively to maintain the greater of (a) free cash (cash and cash equivalents) of at least $100.0 million and (b) an aggregate of free cash and undrawn committed revolving credit lines with at least six months to maturity of at least 7.5% of Teekay's total consolidated debt (excluding the debt of Teekay LNG). Certain loan agreements require Teekay LNG to maintain a minimum level of tangible net worth, and minimum liquidity (cash, cash equivalents and undrawn committed revolving credit lines with at least six months to maturity) of $35.0 million, and not to exceed a maximum level of financial leverage. As at June 30, 2019, the Company was in compliance with all covenants under its credit facilities, finance leases and other long-term debt.

The indenture that governs our 2022 Notes (further described in the Teekay Parent section below) contains covenants that, among other things, include certain financial covenants and certain restrictions on our and the guarantors’ ability to: incur additional indebtedness and guarantee indebtedness; pay dividends or make other distributions or repurchase or redeem our equity interests; prepay, redeem or repurchase certain debt; issue certain preferred stock or similar equity securities; make investments; sell assets; incur liens, including the granting of any lien on any of the 2022 Note collateral, or further pledging any of the 2022 Note collateral as security, subject to permitted liens; enter into transactions with affiliates; and consolidate, merge or sell all or substantially all of our assets. The indenture also provides that under specific circumstances we may be required to offer to use all or a portion of the net proceeds of sales of our FPSO units or sales of Class B common stock of Teekay Tankers consummated prior to a specified date to repurchase 2022 Notes at a premium. The indenture further provides that we may be required under certain circumstances to offer to use all or a portion of the net proceeds of certain asset sales (other than a sale of an FPSO unit or shares of Class B common stock of Teekay Tankers prior to the specified date) to repurchase 2022 Notes.

The consolidated annual long-term debt principal repayments, excluding payments made on our obligations related to finance lease, required to be made by us subsequent to June 30, 2019 are $120.1 million (remainder of 2019), $703.8 million (2020), $826.8 million (2021), $373.1 million (2022), $339.0 million (2023) and $528.4 million (thereafter).

We conduct our funding and treasury activities based on corporate policies designed to minimize borrowing costs and maximize investment returns while maintaining the safety of the funds and appropriate levels of liquidity for our purposes. We hold cash and cash equivalents primarily in U.S. Dollars, with some balances held in Australian Dollars, British Pounds, Canadian Dollars, Euros, Japanese Yen, Norwegian Kroner and Singapore Dollars.

We are exposed to market risk from foreign currency fluctuations and changes in interest rates, spot tanker market rates for vessels and bunker fuel prices. We use forward foreign currency contracts, cross currency and interest rate swaps and forward freight agreements to manage currency, interest rate and spot tanker rates.


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Teekay Parent
Teekay Parent primarily owns an equity ownership interest in the Controlled Daughter Entities, owns 100% ownership interests in the general partner and incentive distribution rights relating to Teekay LNG and three FPSO units, provides management services to the Controlled Daughter Entities, Teekay Offshore and other third-parties, and in-charters a small number of vessels. Teekay Parent’s primary short-term liquidity needs are the payment of operating expenses, debt servicing costs and scheduled repayments of long-term debt, as well as funding its other working capital requirements. Teekay Parent’s primary sources of liquidity are cash and cash equivalents, cash flows provided by operations, dividends/distributions and management fees received from the Controlled Daughter Entities and other investments, its undrawn credit facilities and proceeds from the sale of vessels to external parties (and in the past, to Teekay LNG, Teekay Tankers and Teekay Offshore). As at June 30, 2019, Teekay Parent’s total cash and cash equivalents was $74.9 million, compared to $220.7 million at December 31, 2018. Teekay Parent’s total liquidity, including cash, cash equivalents and undrawn credit facilities, was $186.8 million as at June 30, 2019, compared to $333.4 million as at December 31, 2018.

In May 2019, Teekay Parent sold to Brookfield all of its remaining interests in Teekay Offshore for $100 million, which included, among other things, a $25 million loan. We recognized a loss on sale of $8.9 million on completion of the transaction in May 2019.

In May 2019, Teekay Parent completed a private offering of $250 million in aggregate principal amount of the 2022 Notes. The 2022 Notes are guaranteed on a senior secured basis by certain of our subsidiaries and are secured by first-priority liens on two of our FPSO units, a pledge of the equity interests of our subsidiary that owns all of our common units of Teekay LNG and all of our Class A common shares of Teekay Tankers and a pledge of the equity interests in our subsidiaries that own Teekay Parent's three FPSO units.

During the first quarter of 2019, Teekay Parent repurchased $10.9 million in aggregate principal amount of its 2020 Notes. In April 2019, Teekay Parent commenced a cash tender offer (or the Offer) to purchase any and all of the 2020 Notes for cash consideration of $1,032.50 (for notes tendered in the early tender period) or $982.50 (for notes tendered after the early tender period) per $1,000 in principal amount of 2020 Notes. In May 2019, Teekay Parent completed the Offer and purchased $460.9 million in aggregate principal amount of the 2020 Notes. Teekay Parent funded the Offer with a combination of the net proceeds from its issuance of 2022 Notes, the proceeds from the 2019 Brookfield Transaction, and our existing cash. We recognized a loss of $10.7 million on the repurchase of the 2020 Notes in the second quarter of 2019. For more information, please read "Item 1 - Financial Statements: Note 9 – Long-Term Debt."

In connection with the offering of the 2022 Notes and the Offer, our Board of Directors approved the elimination of the quarterly dividend on Teekay’s common stock commencing with the quarter ended March 31, 2019. 

In April 2019, Teekay filed a continuous offering program (or COP) under which Teekay may issue shares of its common stock, at market prices up to a maximum aggregate amount of $63.0 million. No shares of common stock have been issued under this COP as of June 30, 2019.

In January 2018, Teekay Parent completed a private offering of $125 million in aggregate principal amount of 5% Convertible Senior Notes due 2023 (Convertible Notes), raising net proceeds of approximately $121.0 million. The Convertible Notes are convertible into Teekay’s common stock, initially at a rate of 85.4701 shares of common stock per $1,000 principal amount of Convertible Notes. This represents an initial effective conversion price of $11.70 per share of common stock. The conversion rate is subject to customary adjustments for, among other things, payments of dividends by us beyond the current quarterly rate of $0.055 per share of common stock, other distributions of Teekay Parent’s common stock, other securities, assets or rights to Teekay Parent’s shareholders or certain Teekay Parent tender or exchange offers. In addition, following certain corporate events that occur prior to the maturity date of the Convertible Notes or following any notice of optional redemption given by Teekay Parent, Teekay Parent will, under certain circumstances, increase the conversion rate for a holder who elects to convert its notes in connection with such a corporate event or for Convertible Notes that are surrendered for conversion following such notice of redemption.

Teekay Parent's equity margin revolving credit facility is secured by common units of Teekay LNG and shares of Class A common stock of Teekay Tankers that are owned by Teekay Parent, and until the 2019 Brookfield Transaction was also secured by common units of Teekay Offshore owned by Teekay Parent. The facility was amended in December 2018, which extended the maturity date of the facility from December 2018 to December 2020 and decreased the aggregate potential borrowings from $200 million to $150 million. In addition, Teekay Parent pledged additional common units of Teekay Offshore and Teekay LNG and shares of Class A common stock of Teekay Tankers as collateral. As of June 30, 2019, Teekay Parent did not have any amounts drawn on this facility, and had $111.9 million available to be drawn based on the value of the collateral as of that date. As a result of the 2019 Brookfield Transaction, the equity margin revolving facility is no longer secured by common units of Teekay Offshore.

Teekay Parent has guaranteed obligations of Teekay Tankers pursuant to certain of its credit facilities. As at June 30, 2019, the aggregate outstanding balance on such credit facilities was $155.8 million.

We believe that Teekay Parent’s existing cash and cash equivalents and undrawn long-term borrowings following the 2019 transactions described above, in addition to all other sources of cash including cash from operations, will be sufficient to meet its existing liquidity needs for at least the next 12 months.

Teekay LNG
Teekay LNG's business strategy is to employ a substantial majority of its vessels on fixed-rate contracts, primarily with large energy companies and their transportation subsidiaries.


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Teekay LNG's primary liquidity needs for the remainder of 2019 through 2020 include payment of its operating expenses, dry-docking expenditures, the funding of general working capital requirements, scheduled repayments and maturities of long-term debt and obligations related to finance leases, debt service costs, committed capital expenditures, its quarterly distributions, including payments of distributions on its Series A and Series B Preferred Units and common units and funding any common unit repurchases Teekay LNG may undertake. Teekay LNG anticipates that its primary sources of funds for its short-term liquidity needs will be cash flows from operations, proceeds from debt financings and dividends that it expects to receive from its equity-accounted joint ventures. For the next 12 months, Teekay LNG expects that its existing liquidity, combined with the cash flow Teekay LNG expects to generate from its operations and receive as dividends from its equity-accounted joint ventures, will be sufficient to finance the majority of its liquidity needs, including the equity portion of its committed capital expenditures.

Teekay LNG's remaining liquidity needs include the requirement to refinance certain of its loan facilities and bonds maturing during 2020. Teekay LNG already has committed debt financing in place for all of its existing growth projects, including its three remaining ARC7 LNG carriers under construction for the Yamal LNG Joint Venture and the assets of the Bahrain LNG Joint Venture formed for the development of an LNG receiving and regasification terminal in Bahrain.

Teekay LNG's ability to continue to expand the size of its fleet over the long-term is dependent upon its ability to generate operating cash flow, obtain long-term bank borrowings, sale-leaseback financing and other debt, as well as its ability to raise debt or equity financing through public or private offerings.

As at June 30, 2019, Teekay LNG's consolidated cash and cash equivalents were $124.9 million, compared to $149.0 million at December 31, 2018. Teekay LNG's total liquidity, which consists of cash, cash equivalents and undrawn credit facilities, was $337.4 million as at June 30, 2019, compared to $324.6 million as at December 31, 2018.

As at June 30, 2019, Teekay LNG had a working capital deficit of $287.7 million. This working capital deficit primarily arose from $402.5 million of long-term debt being classified as current at June 30, 2019 relating to scheduled maturities and repayments in the 12 months following June 30, 2019. Scheduled maturities include $165.8 million under credit facilities maturing in June 2020 and $117.2 million for Teekay LNG's NOK bonds maturing in May 2020. Teekay LNG expects to repay the $165.8 million of credit facilities due in June 2020 with the proceeds from the sale of two LNG carriers, which the existing charterer is obligated to purchase between November 2019 and February 2020. Teekay LNG expects to manage its remaining working capital deficit primarily with net operating cash flow and dividends from its equity-accounted joint ventures, debt refinancings, and, to a lesser extent, existing undrawn revolving credit facilities. As at June 30, 2019, Teekay LNG had available liquidity from undrawn revolving credit facilities of $212.5 million.

As part of its balanced capital allocation strategy, Teekay LNG increased its quarterly cash distributions on common units by 36% in 2019 from $0.14 per common unit to $0.19 per common unit commencing with the quarterly distribution paid in May 2019.

Teekay Tankers
Teekay Tankers' primary sources of liquidity are cash and cash equivalents, cash flows provided by its operations, its undrawn credit facilities, and capital raised through financing transactions. As at June 30, 2019, Teekay Tankers' total consolidated cash and cash equivalents were $35.4 million, compared to $54.9 million at December 31, 2018. Teekay Tankers' cash balance as at June 30, 2019 decreased primarily as a result of higher net prepayments on its long-term debt.

Teekay Tankers' total liquidity, including cash, cash equivalents and undrawn credit facilities was $119.5 million as at June 30, 2019, compared to $66.7 million as at December 31, 2018. Teekay Tankers anticipates that its primary sources of funds for its short-term liquidity needs will be cash flows from operations based on an expected tanker market recovery, existing cash and cash equivalents and undrawn short-term and long-term borrowings, which Teekay Tankers believes will be sufficient to meet its existing liquidity needs for at least the next 12 months.

Teekay Tankers' short-term liquidity requirements include the payment of operating expenses, dry-docking expenditures, debt servicing costs, scheduled repayments of long-term debt, scheduled repayments of its obligations related to finance leases, as well as funding its other working capital requirements. Teekay Tankers' short-term charters and spot market tanker operations contribute to the volatility of its net operating cash flow, and thus impact its ability to generate sufficient cash flows to meet its short-term liquidity needs. Historically, the tanker industry has been cyclical, experiencing volatility in profitability and asset values resulting from changes in the supply of, and demand for, vessel capacity. In addition, tanker spot markets historically have exhibited seasonal variations in charter rates. Tanker spot markets are typically stronger in the winter months as a result of increased oil consumption in the northern hemisphere and unpredictable weather patterns that tend to disrupt vessel scheduling.

Teekay Tankers' long-term capital needs are primarily for capital expenditures and repayment of its loan facilities and obligations related to finance leases. Generally, Teekay Tankers expects that its long-term sources of funds will be cash from operations, cash balances, long-term bank borrowings and other debt or equity financings. Teekay Tankers expects that it will rely upon external financing sources, including bank borrowings and the issuance of debt and equity securities, to fund acquisitions and expansion capital expenditures, including opportunities Teekay Tankers may pursue to purchase additional vessels.

In May 2019, Teekay Tankers completed a $63.7 million sale-leaseback financing transaction for two of its Suezmax tankers. Each vessel will be leased on a bareboat charter for nine years, with a fixed daily rate of $12,300, purchase options throughout the lease term commencing at the end of the second year, and a purchase obligation at the end of the lease term. Proceeds from the sale-leaseback transaction were used to prepay a portion of one of Teekay Tankers' loan facilities.

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Cash Flows
The following table summarizes our consolidated cash and cash equivalents provided by (used for) operating, financing and investing activities for the periods presented:

(in thousands of U.S. Dollars)
Six Months Ended June 30,
 
2019
 
2018
 
$
 
$
Net operating cash flows
178,924

 
110,434

Net financing cash flows
(357,005
)
 
215,622

Net investing cash flows
(4,675
)
 
(333,204
)

Operating Cash Flows
Our consolidated net cash flow from operating activities fluctuates primarily as a result of changes in vessel utilization and TCE rates, changes in interest rates, fluctuations in working capital balances, the timing and amount of dry-docking expenditures, repairs and maintenance activities, vessel additions and dispositions, and foreign currency rates. Our exposure to the spot tanker market has contributed significantly to fluctuations in operating cash flows historically as a result of highly cyclical spot tanker rates. In addition, the production performance of certain of our FPSO units that operate under contracts with a production-based compensation component has contributed to fluctuations in operating cash flows. As the charter contracts of our FPSO units include incentives based on oil prices, changes in global oil prices during recent years have also impacted our operating cash flows.

Consolidated net cash flow from operating activities increased to $178.9 million for the six months ended June 30, 2019, from $110.4 million for the six months ended June 30, 2018. This increase was primarily due to a $103.4 million increase in income from operations (before depreciation, amortization, asset impairments and the amortization of in-process revenue contracts) of our businesses. For a further discussion of changes in income from operations from our businesses, please read “Results of Operations.” In addition, there was a $4.5 million increase in dividends received from joint ventures and a $4.1 million increase in cash flows from changes to non-cash working capital. These increases were partially offset by an increase in cash outflows of $21.7 million in dry-dock expenditures for the six months ended June 30, 2019, compared to the corresponding period of 2018. In addition, interest expense, including realized losses on interest rate swaps and cross currency swaps, increased by a net amount of $21.8 million for the six months ended June 30, 2019, compared to the corresponding period of 2018, primarily due to interest incurred by Teekay LNG on the debt and obligations related to the deliveries of new LNG carriers and by Teekay Tankers on the debt and obligations related to their finance leases on certain vessels.

Financing Cash Flows
The Controlled Daughter Entities hold all of our liquefied gas carriers (Teekay LNG) and all of our conventional tanker assets (Teekay Tankers). Historically, the Controlled Daughter Entities and, prior to the 2019 Brookfield Transaction, Teekay Offshore, have distributed operating cash flows to their owners in the form of distributions or dividends. Teekay Parent did not complete any issuances of new equity to the public in the six months ended June 30, 2019, compared to $103.7 million in the same period last year. Teekay LNG received $158.7 million from the sale-leaseback financing transaction completed on the Yamal Spirit in the six months ended June 30, 2019, compared to $243.8 million in the same period last year from the sale-leaseback financing transactions completed for the Magdala and Myrina. Teekay Tankers received $63.7 million from the sale-leaseback financing transactions completed on the Aspen Spirit and Cascade Spirit in the six months ended June 30, 2019.

We use our credit facilities to partially finance capital expenditures. Occasionally, we will use revolving credit facilities to finance these expenditures until longer-term financing is obtained, at which time we typically use all or a portion of the proceeds from the longer-term financings to prepay outstanding amounts under the revolving credit facilities. We actively manage the maturity profile of our outstanding financing arrangements. Our net payments on long-term debt, which is the proceeds from the issuance of long-term debt, net of debt issuance costs and prepayments of long-term debt, were $382.7 million in the six months ended June 30, 2019 compared to net proceeds from the issuance of long-term debt of $113.9 million in the same period last year. Scheduled debt repayments decreased by $54.3 million in the six months ended June 30, 2019, compared to the same period last year.

Investing Cash Flows
During the six months ended June 30, 2019, we received $100.0 million from Brookfield from the sale of our remaining interests in Teekay Offshore (please read "Item 1 - Financial Statements: Note 4 – Related Party Transactions). We incurred capital expenditures for vessels and equipment of $89.1 million (net of $45 million received from a shipyard related to warranty claims on certain vessels), primarily for capitalized vessel modifications and shipyard construction installment payments. Teekay LNG contributed $15.6 million to its equity-accounted joint ventures, primarily to fund project expenditures in the Yamal LNG Joint Venture, the Bahrain LNG project, and the Pan Union Joint Venture, and for working capital requirements for the Teekay LNG-Marubeni Joint Venture.


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During the six months ended June 30, 2018, we incurred capital expenditures for vessels and equipment of $315.3 million, primarily for capitalized vessel modifications and shipyard construction installment payments in Teekay LNG. Teekay Parent advanced $25.0 million to Teekay Offshore in the form of a senior unsecured revolving credit facility (which was purchased by Brookfield in 2019). Teekay LNG received proceeds of $54.4 million from the sale of Teekay LNG's 50% ownership interest in the Excelsior Joint Venture. Teekay LNG contributed $27.1 million to its equity-accounted joint ventures, primarily to fund project expenditures in the Yamal LNG Joint Venture, the Bahrain LNG project, and the Pan Union Joint Venture, and for working capital requirements for the Teekay LNG-Marubeni Joint Venture. Teekay incurred a net $25.3 million cash outflow as a result of cash balances of Transferred Subsidiaries which were sold to Teekay Offshore (please read "Item 1 - Financial Statements: Note 4 – Related Party Transactions).
CONTRACTUAL OBLIGATIONS AND CONTINGENCIES
The following table summarizes our long-term contractual obligations as at June 30, 2019:
 
 
 
Remainder of
 
 
 
 
 
 
 
 
 
Beyond
 
Total
 
2019
 
2020
 
2021
 
2022
 
2023
 
2023
 
In millions of U.S. Dollars
Teekay LNG
 
 
 
 
 
 
 
 
 
 
 
 
 
Bond repayments (1)(2)
357.5

 
—

 
117.2

 
140.7

 
—

 
99.6

 
—

Scheduled repayments of long-term debt (1)(3)
690.6

 
66.6

 
128.2

 
98.0

 
86.9

 
80.1

 
230.8

Repayments on maturity of long-term debt (1)(3)
833.5

 
3.4

 
320.8

 
172.4

 
5.0

 
34.3

 
297.6

Scheduled repayments of obligations related to finance leases (4)
1,895.4

 
68.0

 
134.9

 
133.6

 
132.3

 
131.2

 
1,295.4

Commitments under operating leases (5)
291.5

 
23.9

 
47.7

 
47.6

 
35.0

 
11.8

 
125.5

Newbuildings installments/shipbuilding supervision (6)
410.3

 
359.7

 
9.7

 
27.2

 
13.7

 
—

 
—

 
4,478.8

 
521.6


758.5


619.5


272.9


357.0


1,949.3

Teekay Tankers
 
 
 
 
 
 
 
 
 
 
 
 
 
Scheduled repayments of long-term debt (7)
164.6

 
50.8

 
101.8

 
12.0

 
—

 
—

 
—

Repayments on maturity of long-term debt (7)
448.3

 
15.0

 
—

 
402.1

 
31.2

 
—

 
—

Scheduled repayments of obligations related to finance leases (8)
426.9

 
12.1

 
25.4

 
27.3

 
29.5

 
31.9

 
300.7

Chartered-in vessels (operating leases) (9)
57.8

 
20.3

 
31.0

 
6.5

 
—

 
—

 
—

 
1,097.6

 
98.2

 
158.2

 
447.9

 
60.7

 
31.9

 
300.7

Teekay Parent
 
 
 
 
 
 
 
 
 
 
 
 
 
Bond repayments (10)
411.7

 
—

 
36.7

 
—

 
250.0

 
125.0

 
—

Chartered-in vessels (operating leases) (11)
168.9

 
29.8

 
52.6

 
51.5

 
20.1

 
9.2

 
5.7

Asset retirement obligation (12)
28.7

 
—

 
28.7

 
—

 
—

 
—

 
—

 
609.3

 
29.8

 
118.0

 
51.5

 
270.1

 
134.2

 
5.7

Total
6,185.7

 
649.6

 
1,034.7

 
1,118.9

 
603.7

 
523.1

 
2,255.7

 
(1)
Euro-denominated and NOK-denominated obligations are presented in U.S. Dollars and have been converted using the prevailing exchange rate as of June 30, 2019.

(2)
Excludes expected interest payments of $11.3 million (remainder of 2019), $19.5 million (2020), $11.3 million (2021), $6.1 million (2022) and $2.9 million (2023). Expected interest payments are based on NIBOR at June 30, 2019, plus margins that range up to 6.0%, as well as the prevailing U.S. Dollar/NOK exchange rate as of June 30, 2019. The expected interest payments do not reflect the effect of the related cross currency swaps that Teekay LNG has used as an economic hedge of its foreign exchange and interest rate exposure associated with its NOK-denominated long-term debt.
(3)
Excludes expected interest payments of $25.2 million (remainder of 2019), $40.4 million (2020), $27.1 million (2021), $21.6 million (2022), $19.3 million (2023) and $63.2 million (beyond 2023). Expected interest payments are based on the existing interest rates (fixed-rate loans), LIBOR or EURIBOR at June 30, 2019, plus margins on debt that has been drawn that range up to 3.25% (variable-rate loans), as well as the prevailing U.S. Dollar/Euro exchange rate as of June 30, 2019. The expected interest payments do not reflect the effect of related interest rate swaps that Teekay LNG has used as an economic hedge of certain of its variable-rate debt. In addition, the above table does not reflect scheduled debt repayments in Teekay LNG's equity-accounted joint ventures.
(4)
Includes, in addition to lease payments, amounts Teekay LNG is required to pay to purchase the leased assets at the end of their respective lease terms.
(5)
Teekay LNG has corresponding leases whereby it is the lessor and expects to receive approximately $207.2 million under those leases from the remainder of 2019 to 2029.


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(6)
In July 2014, the Yamal LNG Joint Venture, in which Teekay LNG has a 50% ownership interest, entered into agreements for the construction of six LNG carrier newbuildings, two of which delivered in 2018, one delivered in June 2019, with the remaining three expected to be delivered during the remainder of 2019. As at June 30, 2019, Teekay LNG's 50% share of the estimated remaining costs for the three remaining newbuildings totaled $294.2 million, of which the Yamal LNG Joint Venture had secured undrawn financing of $273.3 million based on Teekay LNG's proportionate share of the remaining newbuilding installments as of June 30, 2019.
The Bahrain LNG Joint Venture, in which Teekay LNG has a 30% ownership interest, is developing an LNG receiving and regasification terminal in Bahrain. The project will be owned and operated under a 20-year agreement, which is expected to commence in the second half of 2019, with an estimated fully-built up cost of approximately $906 million. As at June 30, 2019, Teekay LNG's 30% share of the estimated remaining costs is $55.5 million, of which the Bahrain LNG Joint Venture has secured undrawn debt financing of $27.8 million based on Teekay LNG's proportionate share as of June 30, 2019.
In June 2019, Teekay LNG entered into an agreement with a contractor to supply equipment on certain of Teekay LNG's LNG carriers in 2021 and 2022, for an estimated installed cost of approximately $61 million.
(7)
Excludes expected interest payments of $12.7 million (remainder of 2019), $21.7 million (2020), $10.5 million (2021) and $0.8 million (2022). Expected interest payments are based on the existing interest rates for variable-rate loans at LIBOR plus margins that range from 0.30% to 3.50% at June 30, 2019. The expected interest payments do not reflect the effect of related interest rate swaps that Teekay Tankers has used to hedge certain of its floating-rate debt.

(8)
Excludes imputed interest payments of $16.3 million (remainder of 2019), $31.0 million (2020), $28.9 million (2021), $26.7 million (2022), $24.3 million (2023) and $76.0 million (beyond 2023).
(9)
Excludes payments required if Teekay Tankers executes options to extend the terms of in-chartered leases signed as of June 30, 2019. If Teekay Tankers exercises all options to extend the terms of signed in-chartered leases, Teekay Tankers would expect total payments of $21.1 million (remainder of 2019), $36.6 million (2020), $25.5 million (2021) and $5.3 million (2022).

(10)
Excludes expected interest payments of $16.2 million (remainder of 2019), $30.9 million (2020), $29.4 million (2021), $17.8 million (2022) and $0.3 million (2023). Expected interest payments are based on the existing interest rate for fixed-rate loans at 9.25%, 8.5% and 5.0%, and the existing interest rate for the variable-rate loan that is based on LIBOR plus a margin which was 3.95% as at June 30, 2019. Expected interest payments and the repayment amounts give effect to the purchase of the 2020 Notes and the issuance of the 2022 Notes in May 2019.

(11)
Teekay Parent in-charters two FSO units and two shuttle tankers from Teekay Offshore. One of the FSO units are on back-to-back out-charters to third parties. One of the FSO units and the two shuttle tankers are part of the service contracts of the Petrojarl Banff FPSO unit and the Petrojarl Foinaven FPSO unit, respectively.

(12)
Teekay Parent has an asset retirement obligation (or ARO) relating to the sub-sea production facility associated with the Petrojarl Banff FPSO unit operating in the North Sea. This obligation generally involves the costs associated with the restoration of the environment surrounding the facility and removal and disposal of all production equipment. This obligation is expected to be settled at the end of the contract under which the FPSO unit currently operates. We expect that the ARO will be covered in part by contractual payments of $7.8 million, presented in other non-current assets on our balance sheets, to be received from FPSO contract counterparties.

Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future material effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources. The details of our equity-accounted investments are shown in “Item 18 – Financial Statements: Note 22 – Equity-Accounted Investments” of our Annual Report on Form 20-F for the year ended December 31, 2018.
CRITICAL ACCOUNTING ESTIMATES
We prepare our consolidated financial statements in accordance with GAAP, which require us to make estimates in the application of our accounting policies based on our best assumptions, judgments and opinions. On a regular basis, management reviews the accounting policies, assumptions, estimates and judgments to ensure that our consolidated financial statements are presented fairly and in accordance with GAAP. However, because future events and their effects cannot be determined with certainty, actual results could materially differ from our assumptions and estimates. Accounting estimates and assumptions that we consider to be the most critical to an understanding of our consolidated financial statements because they inherently involve significant judgments and uncertainties, are discussed in this section and “Item 5—Operating and Financial Review and Prospects” in our Annual Report on Form 20-F for the year ended December 31, 2018. There were no significant changes in accounting estimates and assumptions from those discussed in such Annual Report on Form 20-F.
Goodwill
Based on conditions that existed at June 30, 2019, we do not believe that there is a reasonable possibility that the goodwill attributable to our reporting units with goodwill might be impaired. However, certain factors that impact this assessment are inherently difficult to forecast and, as such, we cannot provide any assurance that an impairment will or will not occur in the future. An assessment for impairment involves a number of assumptions and estimates that are based on factors that are beyond our control. Some of these factors are referenced in the following section entitled “Forward-Looking Statements.”
FORWARD-LOOKING STATEMENTS
This Report on Form 6-K for the three and six months ended June 30, 2019, contains certain forward-looking statements (as such term is defined in Section 21A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and our operations, performance and financial condition, including, among others, statements regarding:


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•
our future financial condition and results of operations and our future revenues, expenses and capital expenditures, and our expected financial flexibility to pursue capital expenditures, acquisitions and other expansion opportunities, including vessel acquisitions;
•
meeting our going concern requirements and our liquidity needs, and the liquidity needs of Teekay LNG and Teekay Tankers, anticipated funds and sources of financing for liquidity needs and the sufficiency of cash flows, and our estimation that we will have sufficient liquidity for at least the next 12 months;
•
our ability and plans to obtain financing for new and existing projects, refinance existing debt obligations and fulfill our debt obligations;
•
conditions and fundamentals of the markets in which we operate, including the balance of supply and demand in these markets and spot tanker charter rates and oil production and competition for providing services;
•
our expectations regarding tax liabilities and classifications;
•
our expectations as to the useful lives of our vessels;
•
our future growth prospects;
•
the impact of future changes in the demand for and price of oil, and the related effects on the demand for and price of natural gas;
•
our expectations as to anticipated improvements to pipeline capacity to the U.S. Gulf coast and its effect on U.S. crude exports;
•
expected costs, capabilities, completion and delivery dates of newbuildings, acquisitions and conversions, and the commencement of any related charters or other contracts;
•
our ability to maximize the use of our vessels, including the re-deployment or disposition of vessels no longer under long-term time charter or on a short-term charter contract;
•
our expectations regarding the ability of our other customers to make charter payments to us, and the ability of our customers to fulfill purchase obligations at the end of charter contracts;
•
the expected timing of deliveries of the three remaining ARC7 LNG carrier newbuildings in the Yamal LNG Joint Venture;
•
the expected timing of delivery of an Aframax tanker under time charter-in contract;
•
the expected timing and cost relating to the additional equipment to be installed for certain of Teekay LNG's LNG carriers;
•
the expected ability of Awilco LNG ASA (or Awilco) to fulfill the purchase obligation relating to two of Teekay LNG's LNG carriers completing charters with Awilco in 2019;
•
the future resumption of a LNG plant in Yemen operated by YLNG and payment of deferred amounts for Teekay LNG's two 52%-owned vessels on charter to YLNG;
•
our expectations regarding the schedule and performance of the receiving and regasification terminal in Bahrain, which will be owned and operated by the Bahrain LNG Joint Venture;
•
Teekay LNG's novation and continued charter of the Magellan Spirit;
•
the future valuation or impairment of our assets, including our FPSO units and goodwill;
•
our expectations and estimates regarding future charter business, with respect to minimum charter hire payments, revenues and our vessels' ability to perform to specifications and maintain their hire rates in the future;
•
compliance with financing agreements and the expected effect of restrictive covenants in such agreements;
•
operating expenses, availability of crew and crewing costs, number of off-hire days, dry-docking requirements and durations and the adequacy and cost of insurance;
•
the effectiveness of our risk management policies and procedures and the ability of the counterparties to our derivative and other contracts to fulfill their contractual obligations;
•
the impact and expected cost of, and our ability to comply with, new and existing governmental regulations and maritime self-regulatory organization standards applicable to our business and the effect of IMO 2020;
•
expected uses of proceeds from vessel or securities transactions;
•
the expectations as to the chartering of unchartered vessels;
•
our hedging activities relating to foreign exchange, interest rate and spot market risks, and the effects of fluctuations in foreign exchange, interest rate and spot market rates on our business and results of operations;
•
our expectations regarding pattern of expense recognition of chartered-in vessels;
•
the potential impact of new accounting guidance; and
•
our business strategy and other plans and objectives for future operations.

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Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words “believe”, “anticipate”, “expect”, “estimate”, “project”, “will be”, “will continue”, “will likely result”, or words or phrases of similar meanings. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond our control. Actual results may differ materially from those expressed or implied by such forward-looking statements. The following factors are among those that could cause actual results to differ materially from the forward-looking statements, which involve risks and uncertainties, and that should be considered in evaluating any such statement: failure to achieve or the delay in achieving expected benefits of our financing initiatives; changes in oil prices; changes in vessel values; changes in production of or demand for oil, petroleum products, LNG and LPG, either generally or in particular regions; changes in anticipated improvements to pipeline capacity to the U.S. Gulf coast and its effect on U.S. crude exports; changes in anticipated levels of vessel newbuilding orders or rates of vessel scrapping; competitive factors in the markets in which we operate; loss of any customer, time-charter or vessel; potential delays or cancellations of anticipated vessel delivery; changes in the financial stability of our charterers; changes in trading patterns significantly affecting overall vessel tonnage requirements; the timing of implementation of new laws and regulations; the effects of the effectiveness of the IMO's 2020 fuel regulations; spot tanker market rate fluctuations; changes in the typical seasonal variations in tanker charter rates; changes in the offshore production of oil or demand for FPSOs, LNG or LPG carriers; effects of the issuance of additional shares of common stock and other equity securities on cash distributions by the Controlled Daughter Entities; the outcome of discussions or legal action with third parties relating to existing or potential disputes or claims; potential inability to obtain charters; decreases in oil production by or increased operating expenses for FPSO units; trends in prevailing charter rates for FPSO contract renewals; the potential for early termination of long-term contracts and our ability to renew or replace long-term contracts or complete existing contract negotiations; shipyard production or vessel conversion delays and cost overruns; our exposure to interest rate and currency exchange rate fluctuations; changes in our expenses; changes in tax regulations or the outcome of tax positions; our future capital expenditure requirements and the inability to secure financing for such requirements; our potential inability to raise financing to refinance debt maturities; potential delays or cancellation of the Yamal LNG Joint Venture’s project located on the Yamal Peninsula in Northern Russia; the potential inability of customers to make payments under charter contracts; the potential failure of the YLNG project in Yemen to recommence operations or for YLNG to pay deferred charter hire amounts; conditions in the capital markets and lending markets; potential inability to implement our growth strategy; and other factors discussed in our filings from time to time with the SEC, including our Report on Form 20-F for the fiscal year ended December 31, 2018. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.

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TEEKAY CORPORATION AND SUBSIDIARIES
JUNE 30, 2019
PART II – OTHER INFORMATION
Item 1 – Legal Proceedings
See “Part I – Item 1 – Financial Statements: Note 11c – Commitments and Contingencies – Legal Proceedings and Claims” in this Report.
Item 1A – Risk Factors
In addition to the other information set forth in this Report on Form 6-K, you should carefully consider the risk factor included below, the risk factors discussed in Part I, “Item 3. Key Information – Risk Factors” in our Annual Report on Form 20-F for the year ended December 31, 2018 and the risk factors discussed in our Report on Form 6-K dated May 1, 2019, which could materially affect our business, financial condition or results of operations and the price and value of our securities.
As a Marshall Islands corporation, and with a majority of our subsidiaries being Marshall Islands entities and also having subsidiaries in other offshore jurisdictions, our operations may be subject to economic substance requirements of the European Union, which could harm our business.
Finance ministers of the European Union (or EU) rate jurisdictions for tax transparency, governance, real economic activity and corporate tax rate. Countries that do not adequately cooperate with the finance ministers are put on a “grey list” or a “blacklist”. Various countries, including the Republic of the Marshall Islands, are currently on the blacklist. Bermuda has been removed from the list. EU member states have agreed upon a set of measures, which they can choose to apply against the listed countries, including increased monitoring and audits, withholding taxes, special documentation requirements and anti-abuse provisions. The European Commission has stated it will continue to support member states' efforts to develop a more coordinated approach to sanctions for the listed countries in 2019. EU legislation prohibits EU funds from being channeled or transited through entities in countries on the blacklist. In July 2019, the Registrar of Corporations for the Republic of the Marshall Islands announced that the Republic of the Marshall Islands expects to be removed from the blacklist following the September and October meetings of the EU Code of Conduct Group and the Economic and Financial Affairs Council. However, it is not assured that such removal will occur at that time, or at all.
The effect of the EU blacklist, and any noncompliance by us with any legislation adopted by applicable countries to achieve removal from the list, could have a material adverse effect on our business, financial condition and operating results.
Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds
None
Item 3 – Defaults Upon Senior Securities
None    
Item 4 – Mine Safety Disclosures
Not applicable
Item 5 – Other Information
Our 2019 Annual Meeting of Shareholders was held on June 10, 2019. The following persons were elected directors for a term of three years by the votes set forth opposite their names:
Terms Expiring in 2022
 
Votes For
 
Votes Against or Withheld
 
Shares which Abstained
 
Broker Non-Votes
Peter Antturi
 
44,814,041
 
734,558
 
N/A
 
N/A
David Schellenberg
 
40,943,265
 
4,605,334
 
N/A
 
N/A
Item 6 - Exhibits
None

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THIS REPORT ON FORM 6-K IS HEREBY INCORPORATED BY REFERENCE INTO THE FOLLOWING REGISTRATION STATEMENTS OF THE COMPANY:
 
•
REGISTRATION STATEMENT ON FORM F-3 (FILE NO. 033-97746) FILED WITH THE SEC ON OCTOBER 4, 1995;
•
REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-42434) FILED WITH THE SEC ON JULY 28, 2000;
•
REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-119564) FILED WITH THE SEC ON OCTOBER 6, 2004;
•
REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-147683) FILED WITH THE SEC ON NOVEMBER 28, 2007;
•
REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-166523) FILED WITH THE SEC ON MAY 5, 2010;
•
REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-187142) FILED WITH THE SEC ON MARCH 8, 2013;
•
REGISTRATION STATEMENT ON FORM F-3 (FILE NO. 333-212787) FILED WITH THE SEC ON JULY 29, 2016;
•
REGISTRATION STATEMENT ON FORM F-3 (FILE NO. 333-213213) FILED WITH THE SEC ON AUGUST 19, 2016;
•
REGISTRATION STATEMENT ON FORM F-3 (FILE NO. 333-221806) FILED WITH THE SEC ON NOVEMBER 29, 2017; AND
•
REGISTRATION STATEMENT ON FORM F-3 (FILE NO. 333-231003) FILED WITH THE SEC ON APRIL 24, 2019.


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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
TEEKAY CORPORATION
 
 
 
 
Date: August 12, 2019
By:
 
/s/ Vincent Lok
 
 
 
Vincent Lok
Executive Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)

Page 54
v3.19.2
Document and Entity Information
 6 Months Ended
Jun. 30, 2019
Document And Entity Information [Abstract]  
Document Type 6-K
Amendment Flag false
Document Period End Date Jun. 30, 2019
Document Fiscal Year Focus 2019
Document Fiscal Period Focus Q2
Trading Symbol TK
Entity Registrant Name TEEKAY CORP
Entity Central Index Key 0000911971
Current Fiscal Year End Date --12-31
v3.19.2
Unaudited Consolidated Statements of Loss - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Income Statement [Abstract]        
Revenues (note 3) $ 457,667,000 $ 405,642,000 $ 938,880,000 $ 799,664,000
Voyage expenses (98,680,000) (94,912,000) (201,803,000) (180,789,000)
Vessel operating expenses (162,621,000) (161,787,000) (319,613,000) (319,222,000)
Time-charter hire expenses (note 6) (28,817,000) (20,648,000) (58,655,000) (40,059,000)
Depreciation and amortization (73,849,000) (67,960,000) (145,956,000) (135,271,000)
General and administrative expenses (20,868,000) (24,470,000) (43,840,000) (49,153,000)
Write-down and loss on sales of vessels (note 7) 0 (32,830,000) (3,328,000) (51,492,000)
Restructuring charges (note 13) (1,369,000) (1,114,000) (9,990,000) (3,252,000)
Income from vessel operations 71,463,000 1,921,000 155,695,000 20,426,000
Interest expense (70,205,000) (59,526,000) (143,876,000) (114,151,000)
Interest income 2,233,000 2,095,000 4,922,000 3,772,000
Realized and unrealized (losses) gains on non-designated derivative instruments (note 15) (10,964,000) 10,723,000 (16,387,000) 20,149,000
Equity (loss) income (note 4) (6,284,000) 837,000 (67,937,000) 27,954,000
Foreign exchange (loss) gain (notes 9 and 15) (5,851,000) 12,529,000 (8,481,000) 12,551,000
Loss on deconsolidation of Teekay Offshore (note 4) 0 0 0 (7,070,000)
Other (loss) income (note 9) (11,099,000) 520,000 (11,071,000) (395,000)
Loss before income taxes (30,707,000) (30,901,000) (87,135,000) (36,764,000)
Income tax expense (note 16) (3,404,000) (8,746,000) (8,440,000) (12,863,000)
Net loss (34,111,000) (39,647,000) (95,575,000) (49,627,000)
Net (income) loss attributable to non-controlling interests (5,374,000) 11,323,000 (28,167,000) 748,000
Net loss attributable to the shareholders of Teekay Corporation $ (39,485,000) $ (28,324,000) $ (123,742,000) $ (48,879,000)
Basic and diluted loss attributable to shareholders of Teekay Corporation (in usd per share) $ (0.39) $ (0.28) $ (1.23) $ (0.49)
Per common share of Teekay Corporation (note 17)        
Common Stock, Dividends, Per Share, Declared   $ 0.055    
Weighted average number of common shares outstanding (note 17)        
Basic and Diluted (in shares) 100,783,496 100,434,512 100,652,685 98,892,574
v3.19.2
Unaudited Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Net loss $ (34,111) $ (39,647) $ (95,575) $ (49,627)
Other comprehensive (loss) income before reclassifications        
Unrealized (loss) gain on qualifying cash flow hedging instruments (30,743) 7,054 (52,252) 9,676
Pension adjustments, net of taxes (85) 181 (172) 376
Foreign exchange gain on currency translation 0 426 0 49
Amounts reclassified from accumulated other comprehensive (loss) income relating to:        
Loss on deconsolidation of Teekay Offshore (note 4) 0 0 0 7,720
Other comprehensive (loss) income (31,182) 7,138 (53,529) 17,471
Comprehensive loss (65,293) (32,509) (149,104) (32,156)
Comprehensive loss (income) attributable to non-controlling interests 15,789 6,910 8,096 (5,664)
Comprehensive loss attributable to shareholders of Teekay Corporation (49,504) (25,599) (141,008) (37,820)
Interest Expense        
Other comprehensive (loss) income before reclassifications        
Unrealized (loss) gain on qualifying cash flow hedging instruments       5,090
Amounts reclassified from accumulated other comprehensive (loss) income relating to:        
Realized loss on qualifying cash flow hedging instruments to equity income (157) (2) (408) 248
Equity Income        
Amounts reclassified from accumulated other comprehensive (loss) income relating to:        
Realized loss on qualifying cash flow hedging instruments to equity income $ (197) $ (521) $ (697) $ (598)
v3.19.2
Unaudited Consolidated Balance Sheets - USD ($)
$ in Thousands
Jun. 30, 2019
Dec. 31, 2018
Current    
Cash and cash equivalents (note 9 and 18) $ 235,199 $ 424,169
Restricted cash – current (note 18) 50,798 40,493
Accounts receivable, including non-trade of $10,988 (2018 – $7,883) and related party balance of $18,014 (2018 – $57,062) 187,088 174,031
Accrued revenue 48,531 20,249
Prepaid Expenses and Other 108,274 69,882
Current portion of loans to equity-accounted investments (note 4) 93,924 169,197
Assets Held-for-sale, Not Part of Disposal Group, Current 12,300 0
Total current assets 736,114 898,021
Restricted cash – non-current (note 18) 36,886 40,977
Vessels and equipment (note 9)    
At cost, less accumulated depreciation of $1,348,665 (2018 – $1,270,460) 3,228,349 3,362,937
Finance Lease, Right-of-Use Asset 2,234,194 2,067,254
Operating lease right-of-use assets (notes 2 and 6) 185,716 0
Advances on newbuilding contracts 0 86,942
Total vessels and equipment 5,648,259 5,517,133
Net investment in direct financing leases – non-current (notes 3 and 6) 551,603 562,528
Investment in and loans to equity-accounted investments (notes 4 and 11a) 1,011,530 1,193,741
Goodwill, intangibles and other non-current assets (note 15) 141,626 179,270
Total assets 8,126,018 8,391,670
Current    
Accounts payable, accrued liabilities and other (notes 8, 13 and 15) 356,022 254,380
Loans from equity-accounted investments 27,607 75,292
Derivative Liability, Current 28,481 12,205
Current portion of long-term debt (note 9) 540,440 242,137
Current obligations related to finance leases (note 6) 89,922 102,115
Current portion of operating lease liabilities (notes 2 and 6) 59,554 0
Total current liabilities 1,102,026 686,129
Long-term debt (note 9) 2,302,885 3,077,386
Long-term operating lease liabilities (notes 2 and 6) 113,922 0
Derivative Liability 56,172 56,352
Long-term obligations related to finance leases (note 6) 1,736,810 1,571,730
Other long-term liabilities (note 16) 141,578 133,045
Total liabilities 5,453,393 5,524,642
Commitments and contingencies (notes 6, 9, 11, and 15)
Equity    
Common stock and additional paid-in capital ($0.001 par value; 725,000,000 shares authorized; 100,784,431 shares outstanding and issued (2018 – 100,435,210)) (note 10) 1,049,531 1,045,659
Accumulated deficit (361,162) (234,395)
Non-controlling interest 2,005,399 2,058,037
Accumulated other comprehensive loss (21,143) (2,273)
Total equity 2,672,625 2,867,028
Total liabilities and equity $ 8,126,018 $ 8,391,670
v3.19.2
Unaudited Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Jun. 30, 2019
Dec. 31, 2018
Statement of Financial Position [Abstract]    
Accounts receivable, non-trade $ 10,988 $ 7,883
Accounts receivable, related party balance 18,014 57,062
Accumulated depreciation on vessels and equipment 1,294,622 1,293,447
Sale Leaseback Transaction, Accumulated Depreciation $ 93,858 $ 51,290
Common stock, par value (in usd per share) $ 0.001 $ 0.001
Common stock, share authorized (in shares) 725,000,000 725,000,000
Common stock, share outstanding (in shares) 100,699,409 100,435,210
Common stock, share issued (in shares) 100,699,409 100,435,210
v3.19.2
Unaudited Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Loss Contingency, Receivable, Proceeds   $ 0
OPERATING ACTIVITIES    
Net loss $ (95,575) (49,627)
Non-cash and non-operating items:    
Depreciation and amortization 145,956 135,271
Unrealized Gain (Loss) on Derivatives and Loss on Sale of Warrants (14,933)  
Unrealized loss (gain) on derivative instruments and loss on sale of warrants (note 15)   (35,515)
Write-down and loss on sales of vessels (note 7) 3,328 51,492
Loss on deconsolidation of Teekay Offshore (note 4) 0 7,070
Equity loss (income), net of dividends received 85,211 (15,207)
Income tax expense 8,440 12,863
Other (26,304) (9,269)
Proceeds from Lease Payments 6,050  
Change in operating assets and liabilities 18,427 14,325
Expenditures for dry docking (34,150) (12,437)
Net operating cash flow 178,924 110,434
Proceeds from Short-term Debt 65,000 0
FINANCING ACTIVITIES    
Proceeds from issuance of long-term debt, net of issuance costs 376,658 409,793
Payment for Debt Extinguishment or Debt Prepayment Cost 759,401  
Prepayments of long-term debt   (295,914)
Scheduled repayments of long-term debt (note 9) (117,110) (171,433)
Repayments of Short-term Debt (50,000) 0
Proceeds from financing related to sale-leaseback of vessels 222,400 243,812
Finance Lease, Principal Payments 45,928 28,819
Net proceeds from equity issuances of Teekay Corporation (note 10) 0 103,657
Repurchase of Teekay LNG common units (12,056) 0
Distributions paid from subsidiaries to non-controlling interests (30,465) (33,872)
Payments of Ordinary Dividends 5,523 11,036
Other financing activities (580) (566)
Net financing cash flow (357,005) 215,622
INVESTING ACTIVITIES    
Expenditures for vessels and equipment, net of warranty settlement $44,890 (2018 – $nil) (note 11a) (89,120) (315,348)
Proceeds from sale of equity-accounted investments and related assets (note 4) 100,000 54,438
Payments to Acquire Equity Method Investments 15,555 27,629
Loans to joint ventures and joint venture partners 0 (24,971)
Cash of transferred subsidiaries on sale, net of proceeds received (note 4) 0 (25,254)
Other investing activities 0 5,560
Net investing cash flow (4,675) (333,204)
Decrease in cash, cash equivalents and restricted cash (182,756) (7,148)
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning balance 505,639 552,174
Cash, cash equivalents, restricted cash and restricted cash equivalents, ending balance $ 322,883 545,026
Accounting Standards Update 2016-02 [Member]    
Non-cash and non-operating items:    
Proceeds from Lease Payments   $ 5,200
v3.19.2
Unaudited Consolidated Statement of Changes in Total Equity - USD ($)
$ in Thousands
Total
Common Stock
Common Stock and Additional Paid-in Capital
Retained Earnings (Accumulated Deficit)
AOCI Including Portion Attributable to Noncontrolling Interest [Member]
Accumulated Other Comprehensive Loss
Non-controlling Interests
Common Stock
Common Stock
Retained Earnings (Accumulated Deficit)
Accumulated other comprehensive loss         $ (5,995)        
Common Stock, Dividends, Per Share, Declared $ 0.055                
Net loss attributable to the shareholders of Teekay Corporation – basic and diluted       $ (20,555)          
Net Income (Loss) Attributable to Noncontrolling Interest             $ 10,575    
Beginning Balance (in shares) at Dec. 31, 2017   89,127,000              
Beginning Balance at Dec. 31, 2017 $ 2,879,656   $ 919,078 (135,892)     2,102,465    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net (loss) income (9,980)                
Other comprehensive loss 10,333         $ 8,334 1,999    
Dividends declared: (19,824)           (19,824) $ (5,445) $ (5,445)
Employee stock compensation and other (note 9) (in shares)   180,000              
Employee stock compensation and other (note 10) 4,430   4,430            
Proceeds from equity offerings, net of offering costs (note 9) (in shares)   11,127,000              
Proceeds from equity offerings, net of offering costs (note 10) (103,696)   (103,696)            
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Issuance of Equity by Subsidiary to Noncontrolling Interests (5,146)     (1,988)          
Changes to non-controlling interest from equity contributions and other (note 2)           99 3,059    
Ending Balance (in shares) at Mar. 31, 2018   100,434,000              
Ending Balance at Mar. 31, 2018 2,984,111   1,043,303 (159,904)     2,098,274    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt 16,099   16,099            
Net loss attributable to the shareholders of Teekay Corporation – basic and diluted (48,879)                
Net Income (Loss) Attributable to Noncontrolling Interest (748)                
Beginning Balance (in shares) at Dec. 31, 2017   89,127,000              
Beginning Balance at Dec. 31, 2017 2,879,656   919,078 (135,892)     2,102,465    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net (loss) income (49,627)                
Other comprehensive loss 17,471                
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification 295,914                
Ending Balance (in shares) at Jun. 30, 2018   100,435,000              
Ending Balance at Jun. 30, 2018 $ 2,933,613   1,044,752 (193,751)     2,077,449    
Accumulated other comprehensive loss         2,438        
Common Stock, Dividends, Per Share, Declared $ 0.055                
Net loss attributable to the shareholders of Teekay Corporation – basic and diluted $ (28,324)     (28,324)          
Net Income (Loss) Attributable to Noncontrolling Interest (11,323)           (11,323)    
Beginning Balance (in shares) at Mar. 31, 2018   100,434,000              
Beginning Balance at Mar. 31, 2018 2,984,111   1,043,303 (159,904)     2,098,274    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net (loss) income (39,647)                
Other comprehensive loss 7,138         2,725 4,413    
Dividends declared: (14,048)           (14,048) (5,604) $ (5,604)
Employee stock compensation and other (note 9) (in shares)   1,000              
Employee stock compensation and other (note 10) 1,488   1,488            
Proceeds from equity offerings, net of offering costs (note 10) (39)   (39)            
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Issuance of Equity by Subsidiary to Noncontrolling Interests (214)     (81)          
Changes to non-controlling interest from equity contributions and other (note 2)             133    
Ending Balance (in shares) at Jun. 30, 2018   100,435,000              
Ending Balance at Jun. 30, 2018 2,933,613   1,044,752 (193,751)     2,077,449    
Accumulated other comprehensive loss         5,163        
Accumulated other comprehensive loss $ (2,273)       (2,273)        
Common Stock, Dividends, Per Share, Declared $ 0.055                
Net loss attributable to the shareholders of Teekay Corporation – basic and diluted       (84,257)          
Net Income (Loss) Attributable to Noncontrolling Interest             22,793    
Beginning Balance (in shares) at Dec. 31, 2018 100,435,210 100,435,000              
Beginning Balance at Dec. 31, 2018 $ 2,867,028   1,045,659 (234,395)     2,058,037    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net (loss) income (61,464)                
Other comprehensive loss (22,347)         (7,247) (15,100)    
Dividends declared: (13,892)     (5,385)     (13,892) $ (5,385)  
Employee stock compensation and other (note 9) (in shares)   264,000              
Employee stock compensation and other (note 10) 2,964   2,964            
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification (2,991)     606   (1,604) (1,993)    
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Issuance of Equity by Subsidiary to Noncontrolling Interests (7,823)     (1,526)          
Changes to non-controlling interest from equity contributions and other (note 2)             (9,349)    
Ending Balance (in shares) at Mar. 31, 2019   100,699,000              
Ending Balance at Mar. 31, 2019 2,756,090   1,048,623 (321,905)     2,040,496    
Net loss attributable to the shareholders of Teekay Corporation – basic and diluted (123,742)                
Net Income (Loss) Attributable to Noncontrolling Interest $ 28,167                
Beginning Balance (in shares) at Dec. 31, 2018 100,435,210 100,435,000              
Beginning Balance at Dec. 31, 2018 $ 2,867,028   1,045,659 (234,395)     2,058,037    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net (loss) income (95,575)                
Other comprehensive loss $ (53,529)                
Ending Balance (in shares) at Jun. 30, 2019 100,699,409 100,784,000              
Ending Balance at Jun. 30, 2019 $ 2,672,625   1,049,531 (361,162)     2,005,399    
Accumulated other comprehensive loss         (11,124)        
Net loss attributable to the shareholders of Teekay Corporation – basic and diluted (39,485)     (39,485)          
Net Income (Loss) Attributable to Noncontrolling Interest 5,374           5,374    
Beginning Balance (in shares) at Mar. 31, 2019   100,699,000              
Beginning Balance at Mar. 31, 2019 2,756,090   1,048,623 (321,905)     2,040,496    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net (loss) income (34,111)                
Other comprehensive loss (31,182)         $ (10,019) (21,163)    
Dividends declared: (16,574)           (16,574)    
Employee stock compensation and other (note 9) (in shares)   85,000              
Employee stock compensation and other (note 10) 908   908            
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Issuance of Equity by Subsidiary to Noncontrolling Interests $ (2,506)     (228)          
Changes to non-controlling interest from equity contributions and other (note 2)             (2,734)    
Ending Balance (in shares) at Jun. 30, 2019 100,699,409 100,784,000              
Ending Balance at Jun. 30, 2019 $ 2,672,625   $ 1,049,531 $ (361,162)     $ 2,005,399    
Accumulated other comprehensive loss $ (21,143)       $ (21,143)        
v3.19.2
Basis of Presentation
 6 Months Ended
Jun. 30, 2019
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The unaudited interim consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (or GAAP). They include the accounts of Teekay Corporation (or Teekay), which is incorporated under the laws of the Republic of the Marshall Islands, its wholly-owned or controlled subsidiaries and any variable interest entities (or VIEs) of which it is the primary beneficiary (collectively, the Company).

Certain of Teekay’s significant non-wholly owned subsidiaries are consolidated in these financial statements even though Teekay owns less than a 50% ownership interest in the subsidiaries. These significant subsidiaries include the publicly-traded subsidiaries Teekay LNG Partners L.P. (or Teekay LNG) and Teekay Tankers Ltd. (or Teekay Tankers).
 
Certain information and footnote disclosures required by GAAP for complete annual financial statements have been omitted from these unaudited interim consolidated financial statements and, therefore, these financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2018, included in the Company’s Annual Report on Form 20-F, filed with the U.S. Securities and Exchange Commission (or SEC) on April 1, 2019. In the opinion of management, these unaudited interim consolidated financial statements reflect all adjustments, consisting of a normal recurring nature, necessary to present fairly, in all material respects, the Company’s consolidated financial position, results of operations, cash flows and changes in total equity for the interim periods presented. The results of operations for the three and six months ended June 30, 2019, are not necessarily indicative of those for a full fiscal year. Significant intercompany balances and transactions have been eliminated upon consolidation.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. It is possible that the amounts recorded as derivative assets and liabilities could vary by material amounts prior to their settlement.
v3.19.2
Accounting Pronouncements
 6 Months Ended
Jun. 30, 2019
Accounting Changes and Error Corrections [Abstract]  
New Accounting Pronouncements, Policy
Recent Accounting Pronouncements
In February 2016, the Financial Accounting Standards Board (or FASB) issued Accounting Standards Update 2016-02, Leases (or ASU 2016-02). ASU 2016-02 establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. For lessees, leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 requires lessors to classify leases as a sales-type, direct financing or operating lease. A lease is a sales-type lease if any one of five criteria are met, each of which indicate that the lease, in effect, transfers control of the underlying asset to the lessee. If none of those five criteria are met, but two additional criteria are both met, indicating that the lessor has transferred substantially all of the risks and benefits of the underlying asset to the lessee and a third party, the lease is a direct financing lease. All leases that are not sales-type leases or direct financing leases are operating leases. ASU 2016-02 became effective for the Company on January 1, 2019. FASB issued an additional accounting standards update in July 2018 that made further amendments to accounting for leases, including allowing the use of a transition approach whereby a cumulative effect adjustment is made as of the effective date, with no retrospective effect and providing an optional practical expedient to lessors not to separate lease and non-lease components of a contract if certain criteria are met. In addition, the Company early adopted ASU 2019-01, which provides an exception for lessors who are not manufacturers or dealers to determine the fair value of leased property using the underlying asset's cost, instead of fair value. The Company has elected to use this new optional transitional approach. To determine the cumulative effect adjustment, the Company has not reassessed lease classification, initial direct costs for any existing leases, or whether any expired or existing contracts are or contain leases. The Company identified the following differences:

•
The adoption of ASU 2016-02 results in a change in the accounting method for the lease portion of the daily charter hire for the chartered-in vessels by the Company and the Company's equity-accounted joint ventures accounted for as operating leases with firm periods of greater than one year, as well as a small number of office leases. On January 1, 2019, a right-of-use asset of $170.0 million and a lease liability of $170.0 million were recognized, equal to the present value of future minimum lease payments. On June 30, 2019, the right-of-use asset relating to vessels was $173.5 million and the lease liability was $173.5 million. The carrying value of the Company's chartered-in vessels has also been reclassified from other non-current assets ($12.2 million – June 30, 2019 and $13.7 million – January 1, 2019) and from other long-term liabilities ($nil – June 30, 2019 and $0.9 million – January 1, 2019) to the right-of-use asset. In addition, on June 30, 2019 the right-of-use asset relating to office leases was $8.5 million and is presented in other non-current assets. The lease liability relating to office leases, presented in accounts payable, accrued liabilities and other and other long-term liabilities, was $8.7 million, and $0.2 million was reflected as a foreign exchange loss during the six months ended June 30, 2019. Under ASU 2016-02, the Company and the Company's equity-accounted joint ventures recognize a right-of-use asset and a lease liability on the balance sheet for these charters and office leases based on the present value of future minimum lease payments, whereas previously no right-of-use asset or lease liability was recognized. This resulted in an increase in the Company's and its equity-accounted joint ventures' assets and liabilities. The pattern of expense recognition of chartered-in vessels is expected to remain substantially unchanged from the prior policy, unless the right-of-use asset becomes impaired.

•
The adoption of ASU 2016-02 results in the recognition of revenue from the reimbursement of scheduled dry-dock expenditures, where such charter contract is accounted for as an operating lease, occurring upon completion of the scheduled dry-dock, instead of ratably over the period between the previous scheduled dry-dock and the next scheduled dry-dock. This change decreased investment in and loans to equity-accounted investments by $3.0 million, and total equity by $3.0 million as at June 30, 2019. The cumulative decrease to opening equity as at January 1, 2019 was $3.0 million.

•
The adoption of ASU 2016-02 results in direct financing lease payments received being presented as an operating cash inflow instead of an investing cash inflow in the consolidated statement of cash flows. Direct financing lease payments received during the three and six months ended June 30, 2019 were $3.0 million and $6.1 million, respectively (three and six months ended June 30, 2018 – $2.8 million and $5.2 million, respectively).

•
The adoption of ASU 2016-02 results in sale and leaseback transactions where the seller lessee has a fixed price repurchase option or other situations where the leaseback would be classified as a finance lease being accounted for as a failed sale of the vessel and a failed purchase of the vessel by the buyer lessor. Prior to the adoption of ASU 2016-02 such transactions were accounted for as a completed sale and a completed purchase. Consequently, for such transactions, the Company does not derecognize the vessel sold and continues to depreciate the vessel as if it was the legal owner. Proceeds received from the sale of the vessel are recognized as an obligation related to finance lease, and bareboat charter hire payments made by the Company to the lessor are allocated between interest expense and principal repayments on the obligation related to finance lease. The adoption of ASU 2016-02 has resulted in the sale and leaseback of the Yamal Spirit, the Cascade Spirit and the Aspen Spirit during the first half of 2019 being accounted for as failed sales and unlike the 22 sale-leaseback transactions entered in prior years, the Company is not considered as holding a variable interest in the buyer lessor entity and thus, does not consolidate the buyer lessor entity (see Note 6).

The Company's floating production, storage and offloading (or FPSO) contracts, time charters and voyage charters include both a lease component, consisting of the lease of the vessel, and a non-lease component, consisting of the operation of the vessel for the customer. The Company has elected not to separate the non-lease component from the lease component for all such charters, where the lease component is classified as an operating lease and certain other required criteria are met, and to account for the combined component as an operating lease in accordance with Accounting Standards Codification (or ASC) 842 Leases.

In August 2017, the FASB issued Accounting Standards Update 2017-12, Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities (or ASU 2017-12). ASU 2017-12 eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires, for qualifying hedges, the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The guidance also modifies the accounting for components excluded from the assessment of hedge effectiveness, eases documentation and assessment requirements and modifies certain disclosure requirements. ASU 2017-12 became effective for the Company on January 1, 2019. This change decreased accumulated other comprehensive (loss) income by $4.8 million as at January 1, 2019, and correspondingly increased opening equity as at January 1, 2019 by $4.8 million.

In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (or ASU 2016-13). ASU 2016-13 replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This update is effective for the Company on January 1, 2020, with a modified-retrospective approach. The Company is currently evaluating the effect of adopting this new guidance.
v3.19.2
Revenue
 6 Months Ended
Jun. 30, 2019
Revenue from Contract with Customer [Abstract]  
Revenues
Revenues
The Company’s primary source of revenue is chartering its vessels and offshore units to its customers. The Company utilizes four primary forms of contracts, consisting of time-charter contracts, voyage charter contracts, bareboat charter contracts and contracts for FPSO units. The Company also generates revenue from the management and operation of vessels owned by third parties and by equity-accounted investments as well as providing corporate management services to such entities. For a description of these contracts, see "Item 18 – Financial Statements: Note 2" in the Company’s Annual Report on Form 20-F for the year ended December 31, 2018.

Revenue Table
The following tables contain the Company’s revenue for the three and six months ended June 30, 2019 and 2018, by contract type, by segment and by business lines within segments.
 
Three Months Ended June 30, 2019
 
Teekay LNG
Liquefied
Gas
Carriers
Teekay LNG
Conventional
Tankers
Teekay
Tankers
Conventional
Tankers
Teekay
Parent
Offshore
Production
Teekay
Parent
Other
Eliminations
and Other
Total
 
 
 
$
$
$
$
$
$
$
Time charters
133,684

2,369

1,456

—

8,078

(2,487
)
143,100

Voyage charters
8,858

—

186,805

—

—

—

195,663

Bareboat charters
6,129

—

—

—

—

—

6,129

FPSO contracts
—

—

—

57,828

—

—

57,828

Management fees and other
2,020

—

14,016

—

39,911

(1,000
)
54,947

 
150,691

2,369

202,277

57,828

47,989

(3,487
)
457,667


 
Three Months Ended June 30, 2018
 
Teekay LNG
Liquefied
Gas
Carriers
Teekay LNG
Conventional
Tankers
Teekay
Tankers
Conventional
Tankers
Teekay
Parent
Offshore
Production
Teekay
Parent
Other
Eliminations
and Other
Total
 
 
 
$
$
$
$
$
$
$
Time charters
96,857

4,316

17,384

—

7,588

(1,439
)
124,706

Voyage charters
6,767

5,719

144,328

—

—

—

156,814

Bareboat charters
5,734

—

—

—

—

—

5,734

FPSO contracts
—

—

—

66,429

—

—

66,429

Management fees and other
2,814

108

9,947

—

38,595

495

51,959

 
112,172

10,143

171,659

66,429

46,183

(944
)
405,642

 
Six Months Ended June 30, 2019
 
Teekay LNG
Liquefied
Gas
Carriers
Teekay LNG
Conventional
Tankers
Teekay
Tankers
Conventional
Tankers
Teekay
Parent
Offshore
Production
Teekay
Parent
Other
Eliminations
and Other
Total
 
 
 
$
$
$
$
$
$
$
Time charters
264,459

5,131

4,866

—

14,347

(2,487
)
286,316

Voyage charters
18,018

—

403,222

—

—

—

421,240

Bareboat charters
12,191

—

—

—

—

—

12,191

FPSO contracts
—

—

—

107,266

—

—

107,266

Management fees and other
3,005

—

26,690

—

84,301

(2,129
)
111,867

 
297,673

5,131

434,778

107,266

98,648

(4,616
)
938,880


 
Six Months Ended June 30, 2018
 
Teekay LNG
Liquefied
Gas
Carriers
Teekay LNG
Conventional
Tankers
Teekay
Tankers
Conventional
Tankers
Teekay
Parent
Offshore
Production
Teekay
Parent
Other
Eliminations
and Other
Total
 
 
 
$
$
$
$
$
$
$
Time charters
190,316

9,714

39,494

—

20,682

(9,418
)
250,788

Voyage charters
10,390

10,470

279,970

—

—

—

300,830

Bareboat charters
11,111

—

—

—

—

—

11,111

FPSO contracts
—

—

—

132,399

—

—

132,399

Management fees and other
5,404

216

20,660

—

77,445

811

104,536

 
217,221

20,400

340,124

132,399

98,127

(8,607
)
799,664



The following table contains the Company's total revenue for the three and six months ended June 30, 2019 and 2018, by contracts or components of contracts accounted for as leases and those not accounted for as leases.
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2019
 
2018
 
2019
 
2018
 
 
$
 
$
 
$
 
$
Lease revenue
 
 
 
 
 
 
 
 
Lease revenue from lease payments of operating leases
 
354,410

 
302,010

 
737,553

 
596,565

Interest income on lease receivables
 
12,969

 
9,954

 
25,763

 
19,914

Variable lease payments – cost reimbursements (1)
 
13,307

 
10,169

 
25,314

 
18,677

Variable lease payments – other (2)
 
16,320

 
27,426

 
27,144

 
51,708

 
 
397,006

 
349,559

 
815,774

 
686,864

Non-lease revenue
 
 
 
 
 
 
 
 
Non-lease revenue – related to sales-type or direct financing leases
 
5,714

 
4,124

 
11,239

 
8,264

Management fees and other income
 
54,947

 
51,959

 
111,867

 
104,536

 
 
60,661

 
56,083

 
123,106

 
112,800

Total
 
457,667

 
405,642

 
938,880

 
799,664

(1)
Reimbursement for vessel operating expenditures and dry-docking expenditures received from the Company's customers relating to such costs incurred by the Company to operate the vessel for the customer.
(2)
Compensation from time-charter contracts based on spot market rates in excess of a base daily hire amount, production tariffs, which are based on the volume of oil produced, the price of oil, as well as other monthly or annual operational performance measures.
Operating Leases

As at June 30, 2019, the minimum scheduled future rentals to be received by the Company in each of the next five years for the lease and non-lease elements related to time-charters, bareboat charters and FPSO contracts that were accounted for as operating leases were approximately $387.5 million (remainder of 2019), $647.4 million (2020), $533.2 million (2021), $429.7 million (2022) and $319.7 million (2023).

As at December 31, 2018, the minimum scheduled future rentals to be received by the Company in each of the next five years for the lease and non-lease elements related to time-charters, bareboat charters and FPSO contracts that were accounted for as operating leases were approximately $630.8 million (2019), $524.6 million (2020), $457.5 million (2021), $382.0 million (2022) and $291.8 million (2023).

Minimum scheduled future revenues should not be construed to reflect total charter hire revenues for any of the years. Minimum scheduled future revenues do not include revenue generated from new contracts entered into after June 30, 2019 or after December 31, 2018, as applicable, revenue from unexercised option periods of contracts that existed on June 30, 2019 or on December 31, 2018, as applicable, revenue from vessels in the Company’s equity-accounted investments, or variable or contingent revenues accounted for under ASC 842 Leases. In addition, minimum scheduled future operating lease revenues presented in this paragraph have been reduced by estimated off-hire time for any periodic maintenance. The amounts may vary given unscheduled future events such as vessel maintenance.

The net carrying amount of the vessels employed on time-charter contracts, bareboat charter contracts and FPSO contracts that have been accounted for as operating leases at June 30, 2019, was $3.5 billion (December 31, 2018 – $3.4 billion). At June 30, 2019, the cost and accumulated depreciation of such vessels were $4.3 billion (December 31, 2018 – $4.3 billion) and $0.9 billion (December 31, 2018 – $0.8 billion), respectively.

Net Investment in Direct Financing Leases
Teekay LNG's time-charter contracts accounted for as direct financing leases contain both a lease component (lease of the vessel) and a non-lease component (operation of the vessel). Teekay LNG has allocated the contract consideration between the lease component and non-lease component on a relative standalone selling price basis. The standalone selling price of the non-lease component has been determined using a cost-plus approach, whereby Teekay LNG estimates the cost to operate the vessel using cost benchmarking studies prepared by a third party, when available, or internal estimates when not available, plus a profit margin. The standalone selling price of the lease component has been determined using an adjusted market approach, whereby Teekay LNG calculates a rate excluding the operating component based on a market time-charter rate from published broker estimates, when available, or internal estimates when not available. Given that there are no observable standalone selling prices for either of these two components, judgment is required in determining the standalone selling price of each component.
Teekay LNG has three liquefied natural gas (or LNG) carriers, excluding vessels in its equity-accounted joint ventures, which are accounted for as direct financing leases. For a description of Teekay LNG's LNG carriers accounted for as direct financing leases, see "Item 18 – Financial Statements: Note 2" to the Company's Annual Report on Form 20-F for the year ended December 31, 2018. The following table lists the components of Teekay LNG's net investments in direct financing leases:
 
June 30, 2019
 
December 31, 2018
 
$
 
$
Total minimum lease payments to be received
865,333

 
897,130

Estimated unguaranteed residual value of leased properties
291,098

 
291,098

Initial direct costs and other
312

 
329

Less unearned revenue
(592,058
)
 
(613,394
)
Total
564,685

 
575,163

Less current portion
(13,082
)
 
(12,635
)
Long-term portion
551,603

 
562,528


As at June 30, 2019, estimated minimum lease payments to be received by Teekay LNG related to its direct financing leases in each of the next five years are approximately $32.3 million (2019), $64.2 million (2020), $64.2 million (2021), $64.2 million (2022), $64.0 million (2023) and an aggregate of $576.4 million thereafter. The leases are scheduled to end between 2029 and 2039.

As at December 31, 2018, estimated minimum lease payments to be received by Teekay LNG related to its direct financing leases in each of the next five years are approximately $64.2 million (2019), $64.3 million (2020), $64.2 million (2021), $64.2 million (2022), $64.0 million (2023) and an aggregate of $576.2 million thereafter. The leases are scheduled to end between 2029 and 2039.
Contract Liabilities

The Company enters into certain customer contracts that result in situations where the customer will pay consideration upfront for performance to be provided in the following month or months. These receipts are contract liabilities and are presented as deferred revenue until performance is provided. As at June 30, 2019, December 31, 2018, June 30, 2018 and on transition to ASC 606 on January 1, 2018, there were contract liabilities of $27.2 million, $26.4 million, $23.3 million and $29.5 million, respectively. During the three months ended June 30, 2019 and June 30, 2018, the Company recognized $20.4 million and $20.5 million of revenue, respectively, that was recognized as a contract liability at the beginning of such three-month periods. During the six months ended June 30, 2019 and June 30, 2018, the Company recognized $26.4 million and $28.9 million of revenue, respectively, that was recognized as a contract liability at the beginning of such six-month periods.
v3.19.2
Related Party Tranactions
 6 Months Ended
Jun. 30, 2019
Business Combinations [Abstract]  
Deconsolidation of Teekay Offshore
Related Party Transactions
On May 8, 2019, Teekay sold to Brookfield Business Partners L.P. (or Brookfield) all of the Company’s remaining interests in Teekay Offshore (or the 2019 Brookfield Transaction), which included the Company’s 49% general partner interest, common units, warrants, and an outstanding $25 million loan from the Company to Teekay Offshore (described below), for total cash proceeds of $100 million. Prior to the 2019 Brookfield Transaction, Teekay Offshore was a related party of Teekay.

Subsequent to the deconsolidation of Teekay Offshore in September 2017 and prior to the 2019 Brookfield Transaction, the Company accounted for its investment in Teekay Offshore's general partner and common units under the equity method of accounting. Based on the 2019 Brookfield Transaction, the Company remeasured its investment in Teekay Offshore to fair value at March 31, 2019 based on the Teekay Offshore publicly-traded unit price at that date, resulting in a write-down of $64.9 million reflected in equity loss on the Company's consolidated statements of loss for the six months ended June 30, 2019. The Company recognized a loss on sale of $8.9 million on completion of the 2019 Brookfield Transaction in May 2019.

As at June 30, 2019, Teekay Offshore is no longer a party related to Teekay. Advances from Teekay to Teekay Offshore as at December 31, 2018 were $83.1 million and advances from Teekay Offshore to Teekay as at December 31, 2018 were $59.3 million. Such amounts were included in current portion of loans to equity-accounted investments and loans from equity-accounted investments, respectively, on the Company's consolidated balance sheet as at December 31, 2018. Advances from Teekay to Teekay Offshore and advances from Teekay Offshore to Teekay were included in accounts receivable and accounts payable, respectively, on the Company's consolidated balance sheet as at June 30, 2019.

In March 2018, Teekay Offshore entered into a loan agreement for a $125.0 million senior unsecured revolving credit facility, of which up to $25.0 million was provided by Teekay and up to $100.0 million was provided by Brookfield. Teekay’s $25.0 million loan to Teekay Offshore was among the assets sold by Teekay to Brookfield in the 2019 Brookfield Transaction.

On September 25, 2017, Teekay, Teekay Offshore and Brookfield completed a strategic partnership (or the 2017 Brookfield Transaction), which resulted in the deconsolidation of Teekay Offshore as of that date. Until December 31, 2017, Teekay and its wholly-owned subsidiaries directly and indirectly provided substantially all of Teekay Offshore’s ship management, commercial, technical, strategic, business development and administrative service needs. On January 1, 2018, as part of the 2017 Brookfield Transaction, Teekay Offshore acquired a 100% ownership interest in seven subsidiaries (or the Transferred Subsidiaries) of Teekay at carrying value. The Company recognized a loss of $7.1 million for the six months ended June 30, 2018 related to the sale of the Transferred Subsidiaries and the resultant release of accumulated pension losses from accumulated other comprehensive income, which is recorded in loss on deconsolidation of Teekay Offshore on the Company's consolidated statements of loss. Specifically, the Transferred Subsidiaries provided ship management, commercial, technical, strategic, business development and administrative services to Teekay Offshore, primarily related to Teekay Offshore's FPSO units, shuttle tankers and floating storage and offtake (or FSO) units.

Subsequent to their transfer to Teekay Offshore, the Transferred Subsidiaries continue to provide ship management, commercial, technical, strategic, business development and administrative services to Teekay, primarily related to Teekay's FPSO units. Teekay and certain of its subsidiaries, other than the Transferred Subsidiaries, continue to provide certain other ship management, commercial, technical, strategic and administrative services to Teekay Offshore.

Revenues recognized by the Company for services provided to Teekay Offshore for the periods from April 1, 2019 to May 8, 2019 and January 1, 2019 to May 8, 2019 were $2.3 million and $7.6 million, respectively (three and six months ended June 30, 2018 – $4.5 million and $11.1 million, respectively), which were recorded in revenues on the Company's consolidated statements of loss. Fees paid by the Company to Teekay Offshore for services provided by Teekay Offshore to the Company for the periods from April 1, 2019 to May 8, 2019 and January 1, 2019 to May 8, 2019 were $3.3 million and $9.6 million, respectively (three and six months ended June 30, 2018 – $6.8 million and $13.3 million, respectively), which were recorded in vessel operating expenses and general and administrative expenses on the Company's consolidated statements of loss.

As at June 30, 2019, two shuttle tankers and three FSO units of Teekay Offshore were employed on long-term time-charter-out or bareboat contracts to subsidiaries of Teekay. Time-charter hire expenses paid by the Company to Teekay Offshore for the periods from April 1, 2019 to May 8, 2019 and January 1, 2019 to May 8, 2019 were $6.1 million and $20.8 million, respectively (three and six months ended June 30, 2018 – $14.0 million and $28.0 million, respectively).

In September 2018, Teekay LNG entered into an agreement with its 52%-owned joint venture with Marubeni Corporation (or the Teekay LNG-Marubeni Joint Venture) to charter in one of Teekay LNG-Marubeni Joint Venture's LNG carriers, the Magellan Spirit, for a period of two years at a fixed-rate. Time-charter hire expense for the three and six months ended June 30, 2019 were $3.1 million and $8.7 million, respectively.

The Company provides ship management and corporate services to certain of its equity-accounted joint ventures that own and operate LNG carriers on long-term charters. In addition, the Company is reimbursed for costs incurred by the Company for its seafarers operating these LNG carriers. During the three and six months ended June 30, 2019, the Company earned $16.8 million and $32.6 million, respectively (three and six months ended June 30, 2018 – $13.1 million and $25.7 million, respectively), of fees pursuant to these management agreements and reimbursement of costs.
v3.19.2
Segment Reporting
 6 Months Ended
Jun. 30, 2019
Segment Reporting [Abstract]  
Segment Reporting
Segment Reporting
The Company’s segments are described in "Item 18 – Financial Statements: Note 3" to the Company’s Annual Report on Form 20-F for the year ended December 31, 2018. The Company allocates capital and assesses performance from the separate perspectives of its two publicly-traded subsidiaries Teekay LNG and Teekay Tankers (together, the Controlled Daughter Entities), Teekay and its remaining subsidiaries (or Teekay Parent), and, prior to the completion of the 2019 Brookfield Transaction, its equity-accounted investment in Teekay Offshore, as well as from the perspective of the Company's lines of business. The primary focus of the Company’s organizational structure, internal reporting and allocation of resources by the chief operating decision maker is on the Controlled Daughter Entities, Teekay Parent and, prior to the completion of the 2019 Brookfield Transaction, its equity-accounted investment in Teekay Offshore, (the Legal Entity approach), and its segments are presented accordingly on this basis. The Company (which excludes Teekay Offshore) has three primary lines of business: (1) offshore production (FPSO units), (2) LNG and liquefied petroleum gas (or LPG) carriers, and (3) conventional tankers. The Company manages these businesses for the benefit of all stakeholders. The Company incorporates the primary lines of business within its segments, as in certain cases there is more than one line of business in each Controlled Daughter Entity and the Company believes this information allows a better understanding of the Company’s performance and prospects for future net cash flows.
The following table includes the Company’s revenues by segment for the three and six months ended June 30, 2019 and 2018:
 
Revenues
 
Three Months Ended June 30,
Six Months Ended June 30,
 
2019
2018
2019
2018
 
$
$
$
$
Teekay LNG
 
 
 
 
Liquefied Gas Carriers(1)
150,691

112,172

297,673

217,221

Conventional Tankers
2,369

10,143

5,131

20,400

 
153,060

122,315

302,804

237,621

 
 
 
 
 
Teekay Tankers
 
 
 
 
Conventional Tankers(1)
202,277

171,659

434,778

340,124

 
 
 
 
 
Teekay Parent
 
 
 
 
Offshore Production
57,828

66,429

107,266

132,399

Other
47,989

46,183

98,648

98,127

 
105,817

112,612

205,914

230,526

 
 
 
 
 
Eliminations and other
(3,487
)
(944
)
(4,616
)
(8,607
)
 
457,667

405,642

938,880

799,664


(1)
The amounts in the table below represent revenue earned by each segment from other segments within the group. During 2019, Teekay Tankers' ship-to-ship transfer business provided operational and maintenance services to Teekay LNG Bahrain Operations L.L.C., an entity wholly-owned by Teekay LNG, for the LNG receiving and regasification terminal in Bahrain. Also during 2019, the Magellan Spirit was chartered by Teekay LNG to Teekay Parent. During 2018, certain vessels were chartered by Teekay LNG to Teekay Parent. Such intersegment revenue for the three and six months ended June 30, 2019 and 2018 is as follows:
 
Three Months Ended June 30,
Six Months Ended June 30,
 
2019
2018
2019
2018
 
$
$
$
$
Teekay LNG - Liquefied Gas Carriers
2,487

1,439

2,487

9,418

Teekay Tankers - Conventional Tankers
1,000

—

2,129

—

 
3,487

1,439

4,616

9,418


The following table includes the Company’s income (loss) from vessel operations by segment for the three and six months ended June 30, 2019 and 2018:
 
Income (Loss) from Vessel Operations(1)
 
Three Months Ended June 30,
Six Months Ended June 30,
 
2019
2018
2019
2018
 
$
$
$
$
Teekay LNG
 
 
 
 
Liquefied Gas Carriers
74,244

9,445

144,687

53,990

Conventional Tankers
433

1,060

(649
)
(18,343
)
 
74,677

10,505

144,038

35,647

 
 
 
 
 
Teekay Tankers
 
 
 
 
Conventional Tankers
5,051

(13,415
)
37,148

(21,836
)
 
 
 
 
 
Teekay Parent
 
 
 
 
Offshore Production
(5,987
)
5,541

(18,544
)
12,423

Other
(2,278
)
(710
)
(6,947
)
(5,808
)
 
(8,265
)
4,831

(25,491
)
6,615

 
 
 
 
 
 
71,463

1,921

155,695

20,426


(1)
Includes direct general and administrative expenses and indirect general and administrative expenses (allocated to each segment based on estimated use of corporate resources).
Prior to its sale in May 2019, the Company accounted for its investment in Teekay Offshore's general partner and common units using the equity method and recognized equity losses in respect of Teekay Offshore for the periods from April 1, 2019 to May 8, 2019 and January 1, 2019 to May 8, 2019 of $nil and $3.1 million, respectively (three and six months ended June 30, 2018 – equity losses of $9.3 million and $8.7 million, respectively). The Company wrote-down the investment in Teekay Offshore by $64.9 million in the six months ended June 30, 2019 and recognized a loss on sale of $8.9 million in the three and six months ended June 30, 2019.
A reconciliation of total segment assets to total assets presented in the accompanying unaudited consolidated balance sheets is as follows:
 
June 30, 2019
December 31, 2018
 
$
$
Teekay LNG – Liquefied Gas Carriers
5,207,739

5,188,088

Teekay LNG – Conventional Tankers
13,748

39,450

Teekay Tankers – Conventional Tankers
2,118,499

2,106,169

Teekay Parent – Offshore Production
361,785

311,550

Teekay Parent – Conventional Tankers
—

13,056

Teekay Parent – Other
91,683

25,224

Teekay Offshore
—

233,225

Cash and cash equivalents
235,199

424,169

Other assets not allocated
130,348

70,153

Eliminations
(32,983
)
(19,414
)
Consolidated total assets
8,126,018

8,391,670
v3.19.2
Leases
 6 Months Ended
Jun. 30, 2019
Obligations relating to Finance Leases [Line Items]  
Finance Lease, Liability, Maturity [Table Text Block]
As at June 30, 2019 and December 31, 2018, the total remaining commitments related to the financial liabilities of Teekay Tankers' Suezmax, Aframax and LR2 product tankers, including the amounts to be paid for the related purchase obligations, approximated $632.0 million (December 31, 2018 – $557.1 million), including imputed interest of $203.2 million (December 31, 2018 – $181.8 million), repayable from 2019 through 2030, as indicated below:


Commitments
 
 
At June 30, 2019
 
At December 31, 2018
Year

$
 
$
Remainder of 2019

30,336

 
47,962

2020

56,364

 
47,373

2021

56,202

 
47,237

2022

56,193

 
47,230

2023

56,184

 
47,222

Thereafter

376,750

 
320,064
Leases [Text Block]
6. Leases
Obligations Related to Finance Leases

June 30, 2019

December 31, 2018

$

$
Teekay LNG
 
 
 
LNG Carriers
1,399,796

 
1,274,569

Suezmax Tanker
—

 
23,987

Teekay Tankers
 
 
 
Suezmax Tankers
222,859

 
165,145

Aframax Tankers
178,518

 
184,021

LR2 Product Tanker
25,559

 
26,123

Total obligations related to finance leases
1,826,732

 
1,673,845

Less current portion
(89,922
)
 
(102,115
)
Long-term obligations related to finance leases
1,736,810

 
1,571,730



Teekay LNG

As at June 30, 2019, Teekay LNG was a party to finance leases on nine LNG carriers (December 31, 2018 – eight LNG carriers). Upon delivery of these nine LNG carriers between February 2016 and January 2019, Teekay LNG sold these vessels to third parties (or Lessors) and leased them back under 10- to 15-year bareboat charter contracts ending in 2026 through to 2034. At the inception of these leases, the weighted-average interest rate implicit in these leases was 5.2%. The bareboat charter contracts are presented as obligations related to finance leases on the Company's consolidated balance sheets and have purchase obligations at the end of the lease terms.

Teekay LNG consolidates eight of the nine Lessors for financial reporting purposes as variable interest entities. Teekay LNG understands that these vessels and lease operations are the only assets and operations of the Lessors. Teekay LNG operates the vessels during the lease term and as a result, is considered to be, under GAAP, the Lessor's primary beneficiary.

The liabilities of the eight Lessors are loans and are non-recourse to Teekay LNG. The amounts funded to the eight Lessors in order to purchase the vessels materially match the funding to be paid by Teekay LNG's subsidiaries under the sale-leaseback transactions. As a result, the amounts due by Teekay LNG's subsidiaries to the eight Lessors have been included in obligations related to finance leases as representing the Lessors' loans.

During January 2019, Teekay LNG sold the Yamal Spirit and leased it back for a period of 15 years, with an option granted to Teekay LNG to extend the lease term by an additional five years. Teekay LNG is required to purchase the vessel at the end of the lease term. Subsequent to the adoption of ASU 2016-02 on January 1, 2019, sale-leaseback transactions where the lessee has a purchase obligation are treated as a failed sale. Consequently, Teekay LNG has not derecognized the vessel and continues to depreciate the asset as if Teekay LNG was the legal owner. Proceeds received from the sale are set up as a financial liability and bareboat charter hire payments made by Teekay LNG to the Lessor are allocated between interest expense and principal repayments on the financial liability.

The obligations of Teekay LNG under the bareboat charter contracts for the nine LNG carriers are guaranteed by Teekay LNG. In addition, the guarantee agreements require Teekay LNG to maintain minimum levels of tangible net worth and aggregate liquidity, and not to exceed a maximum amount of leverage. As at June 30, 2019, Teekay LNG was in compliance with all covenants in respect of the obligations related to its finance leases.

As at June 30, 2019 and December 31, 2018, the remaining commitments related to the financial liabilities of these nine LNG carriers (December 31, 2018 – eight LNG carriers) including the amounts to be paid for the related purchase obligations, approximated $1.9 billion (December 31, 2018 – $1.7 billion), including imputed interest of $495.6 million (December 31, 2018 – $435.3 million), repayable for the remainder of 2019 through 2034, as indicated below:


Commitments
 
 
At June 30, 2019
 
At December 31, 2018
Year

$
 
$
Remainder of 2019

67,962

 
119,517

2020

134,915

 
118,685

2021

133,542

 
117,772

2022

132,312

 
116,978

2023

131,237

 
116,338

Thereafter

1,295,440

 
1,120,670



As at December 31, 2018, Teekay LNG was a party, as lessee, to a finance lease on one Suezmax tanker, the Toledo Spirit. As at December 31, 2018, the remaining commitments related to the finance lease for the Suezmax tanker, including the related purchase obligation, approximated $24.2 million, including imputed interest of $0.2 million, repayable in 2019. In January 2019, the charterer, who is also the owner, sold the Toledo Spirit to a third party which resulted in Teekay LNG returning the vessel to its owner and the obligation related to finance lease concurrently being extinguished.

Teekay Tankers

In May 2019, Teekay Tankers completed a $63.7 million sale-leaseback financing transaction with a financial institution relating to two of Teekay Tankers' Suezmax tankers, the Aspen Spirit and Cascade Spirit.
In November 2018, Teekay Tankers completed an $84.7 million sale-leaseback financing transaction with a financial institution relating to four of Teekay Tankers' vessels, consisting of two Aframax tankers, one Suezmax tanker and one Long Range 2 (or LR2) product tanker, the Explorer Spirit, Navigator Spirit, Pinnacle Spirit and Trysil Spirit.

In September 2018, Teekay Tankers completed a $156.6 million sale-leaseback financing transaction with a financial institution relating to six of its Aframax tankers, the Blackcomb Spirit, Emerald Spirit, Garibaldi Spirit, Peak Spirit, Tarbet Spirit and Whistler Spirit.

In July 2017, Teekay Tankers completed a $153.0 million sale-leaseback financing transaction with a financial institution relating to four of its Suezmax tankers, the Athens Spirit, the Beijing Spirit, the Moscow Spirit and the Sydney Spirit.

Under these arrangements, Teekay Tankers transferred the vessels to subsidiaries of the financial institutions (or collectively, the Lessors), and leased the vessels back from the Lessors on bareboat charters ranging from nine- to 12-year terms. Teekay Tankers is obligated to purchase six of the Aframax vessels and two of the Suezmax vessels upon maturity of their respective bareboat charters. Teekay Tankers also has the option to purchase each of the 16 tankers at various times starting between July 2020 and November 2021 until the end of their respective lease terms.

Teekay Tankers consolidates 14 of the 16 Lessors for financial reporting purposes as VIEs. Teekay Tankers understands that these vessels and lease operations are the only assets and operations of the Lessors. Teekay Tankers operates the vessels during the lease terms, and as a result, is considered to be the Lessor's primary beneficiary.

The liabilities of the 14 Lessors are loans that are non-recourse to Teekay Tankers. The amounts funded to the 14 Lessors in order to purchase the vessels materially match the funding to be paid by Teekay Tankers' subsidiaries under these leaseback transactions. As a result, the amounts due by Teekay Tankers' subsidiaries to the 14 Lessors considered as VIEs have been included in obligations related to finance leases as representing the Lessors' loans.

Subsequent to the adoption of ASU 2016-02 on January 1, 2019, sale and leaseback transactions where the lessee has a purchase obligation are treated as a failed sale. Consequently, Teekay Tankers has not derecognized the Aspen Spirit and Cascade Spirit and continues to depreciate the assets as if it was the legal owner. Proceeds received from the sale are set up as an obligation related to finance lease and bareboat charter hire payments made by Teekay Tankers to the Lessor are allocated between interest expense and principal repayments on the obligation related to finance lease.

The bareboat charters related to each of these vessels require that Teekay Tankers maintain minimum liquidity (cash, cash equivalents and undrawn committed revolving credit lines with at least six months to maturity) of $35.0 million and at least 5.0% of Teekay Tankers' consolidated debt and obligations related to finance leases (excluding applicable security deposits reflected in restricted cash – non-current on the Company's consolidated balance sheets).

Four of the bareboat charters require Teekay Tankers to maintain, for each vessel, a hull coverage ratio of 90% of the total outstanding principal balance during the first three years of the lease period and 100% of the total outstanding principal balance thereafter. As at June 30, 2019, this ratio was approximately 112% (December 31, 2018 – 101%).
 
Six of the bareboat charters require Teekay Tankers to maintain, for each vessel, a hull coverage ratio of 75% of the total outstanding principal balance during the first year of the lease period, 78% for the second year, 80% for the following two years and 90% of the total outstanding principal balance thereafter. As at June 30, 2019, this ratio was approximately 102% (December 31, 2018 – 91%).
 
Four of the bareboat charters also require Teekay Tankers to maintain, for each vessel, a hull overage ratio of 100% of the total outstanding principal balance. As at June 30, 2019, this ratio was approximately 133% (December 31, 2018 – 122%).

The remaining two bareboat charters also require Teekay Tankers to maintain, for each vessel, a minimum hull coverage ratio of 75% of the total outstanding principal balance during the first year of the lease period, 78% for the second year, 80% for the following two years and 90% of the total outstanding principal balance thereafter. As at June 30, 2019, this ratio was approximately 97%.

Such requirements are assessed annually with reference to vessel valuations compiled by one or more agreed upon third parties. As at June 30, 2019, Teekay Tankers was in compliance with all covenants in respect of its obligations related to finance leases.

The weighted average interest rate on Teekay Tankers’ obligations related to finance leases as at June 30, 2019 was 7.7% (December 31, 2018 – 7.5%).

As at June 30, 2019 and December 31, 2018, the total remaining commitments related to the financial liabilities of Teekay Tankers' Suezmax, Aframax and LR2 product tankers, including the amounts to be paid for the related purchase obligations, approximated $632.0 million (December 31, 2018 – $557.1 million), including imputed interest of $203.2 million (December 31, 2018 – $181.8 million), repayable from 2019 through 2030, as indicated below:


Commitments
 
 
At June 30, 2019
 
At December 31, 2018
Year

$
 
$
Remainder of 2019

30,336

 
47,962

2020

56,364

 
47,373

2021

56,202

 
47,237

2022

56,193

 
47,230

2023

56,184

 
47,222

Thereafter

376,750

 
320,064


Operating Lease Liabilities

The Company charters-in vessels from other vessel owners on time-charter-in and bareboat charter contracts, whereby the vessel owner provides use of the vessel to the Company, and, in the case of time-charter-in contracts, also operates the vessel for the Company. A time-charter-in contract is typically for a fixed period of time, although in certain cases the Company may have the option to extend the charter. The Company typically pays the owner a daily hire rate that is fixed over the duration of the charter. The Company is generally not required to pay the daily hire rate for time-charters during periods the vessel is not able to operate.

The Company has determined that all of its time-charter-in contracts contain both a lease component (lease of the vessel) and a non-lease component (operation of the vessel). The Company has allocated the contract consideration between the lease component and non-lease component on a relative standalone selling price basis. The standalone selling price of the non-lease component has been determined using a cost-plus approach, whereby the Company estimates the cost to operate the vessel using cost benchmarking studies prepared by a third party, when available, or internal estimates when not available, plus a profit margin. The standalone selling price of the lease component has been determined using an adjusted market approach, whereby the Company calculates a rate excluding the operating component based on a market time-charter rate information from published broker estimates, when available, or internal estimates when not available. Given that there are no observable standalone selling prices for either of these two components, judgment is required in determining the standalone selling price of each component. The discount rate of the lease is determined using the Company’s incremental borrowing rate, which is based on the fixed interest rate the Company could obtain when entering into a secured loan facility of similar terms for an amount equal to the total minimum lease payments. The bareboat charter contracts contain only a lease component.

With respect to time-charter-in and bareboat charter contracts with an original term of more than one year, for the three and six months ended June 30, 2019, the Company incurred $23.7 million and $48.8 million, respectively, of time-charter and bareboat hire expense related to these time-charter and bareboat charter contracts, of which $16.4 million and $33.7 million, respectively, were allocable to the lease component, and $7.3 million and $15.1 million, respectively, were allocable to the non-lease component. The amounts allocable to the lease component approximates the cash paid for the amounts included in lease liabilities and is reflected as a reduction in operating cash flows for the three and six months ended June 30, 2019. Two of Teekay Tankers' time-charter-in contracts each have an option to extend the charter for an additional one-year term. Since it is not reasonably certain that Teekay Tankers will exercise the options, the lease components of the options are not recognized as part of the right-of-use assets and lease liabilities. As at June 30, 2019, the weighted-average remaining lease term and weighted-average discount rate for these time-charter-in and bareboat charter contracts were 3.0 years and 6.2%, respectively.

The Company has elected to recognize the lease payments of short-term leases in its consolidated statements of loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred, which is consistent with the recognition of payment for the non-lease component. The Company considers as short-term leases those with an original term of one year or less, excluding leases with an option to extend the lease for greater than one year or an option to purchase the underlying asset where the lessee is deemed reasonably certain to exercise the applicable option. For the three and six months ended June 30, 2019, the Company incurred $4.9 million and $9.2 million, respectively, of time-charter hire expense related to time-charter-in contracts classified as short-term leases.

During the six months ended June 30, 2019, Teekay Tankers chartered in two LR2 vessels each for a period of 24 months, which resulted in the Company recognizing right-of-use assets of $14.7 million on the lease commencement dates.

A maturity analysis of the Company’s operating lease liabilities from time-charter-in and bareboat charter contracts (excluding short-term leases) at June 30, 2019 is as follows:

 
Lease Commitment

Non-Lease Commitment
 
Total Commitment
Year
 
$

$
 
$
Payments
 
 
 
 
 
 
Remainder of 2019
 
36,398

 
17,112

 
53,510

2020
 
65,362

 
33,659

 
99,021

2021
 
51,672

 
24,913

 
76,585

2022
 
22,978

 
8,189

 
31,167

2023
 
9,227

 
—

 
9,227

Thereafter
 
5,712

 
—

 
5,712

Total payments
 
191,349

 
83,873

 
275,222

Less: imputed interest
 
(17,873
)
 
 
 
 
Carrying value of operating lease liabilities
 
173,476

 
 
 
 
Less current portion
 
(59,554
)
 
 
 
 
Carrying value of long-term operating lease liabilities
 
113,922

 
 
 
 


As at June 30, 2019, minimum commitments to be incurred by the Company under short-term time-charter-in contracts were approximately $6.0 million (remainder of 2019) and $0.6 million (2020).
As at December 31, 2018, minimum commitments to be incurred by the Company under vessel operating leases by which the Company charters-in vessels were approximately $116.3 million (2019), $90.4 million (2020), $53.4 million (2021), $9.1 million (2022), $9.1 million (2023) and $5.6 million thereafter.
Teekay LNG  
Obligations relating to Finance Leases [Line Items]  
Finance Lease, Liability, Maturity [Table Text Block]
As at June 30, 2019 and December 31, 2018, the remaining commitments related to the financial liabilities of these nine LNG carriers (December 31, 2018 – eight LNG carriers) including the amounts to be paid for the related purchase obligations, approximated $1.9 billion (December 31, 2018 – $1.7 billion), including imputed interest of $495.6 million (December 31, 2018 – $435.3 million), repayable for the remainder of 2019 through 2034, as indicated below:


Commitments
 
 
At June 30, 2019
 
At December 31, 2018
Year

$
 
$
Remainder of 2019

67,962

 
119,517

2020

134,915

 
118,685

2021

133,542

 
117,772

2022

132,312

 
116,978

2023

131,237

 
116,338

Thereafter

1,295,440

 
1,120,670
v3.19.2
Write-down and Loss on Sales of Vessels
 6 Months Ended
Jun. 30, 2019
Property, Plant and Equipment [Abstract]  
Write-down and Loss on Sales of Vessels
Write-down and Loss on Sales of Vessels
The Company's write-downs and vessel sales generally relate to vessels approaching the end of their useful lives as well as other vessels it strategically sells to reduce exposure to a certain vessel class.

The following tables contain the write-downs and loss on sales of vessels for the three and six months ended June 30, 2019 and 2018:
 
 
 
 
 
 
Three Months Ended June 30,
Segment

Asset Type

Completion of Sale Date

2019
$

2018
$
Teekay LNG Segment – Liquefied Gas Carriers (1)
 
4 Multi-gas Carriers
 
N/A
 
—

 
(33,000
)
Other
 
 
 
 
 
—

 
170

Total
 
 
 
 
 
—

 
(32,830
)


 
 
 
 
 
 
Six Months Ended June 30,
Segment
 
Asset Type
 
Completion of Sale Date
 
2019
$
 
2018
$
Teekay Parent Segment - Offshore Production (2)
 
FPSO
 
N/A
 
(3,328
)
 
—

Teekay LNG Segment - Conventional Tankers (3)
 
Handymax
 
N/A
 
—

 
(13,000
)
Teekay LNG Segment - Liquefied Gas Carriers (1)
 
4 Multi-gas Carriers
 
N/A
 
—

 
(33,000
)
Teekay LNG Segment - Conventional Tankers (4)
 
2 Suezmaxes
 
Oct/Dec-2018
 
—

 
(5,662
)
Other
 
 
 
 
 
—

 
170

Total
 
 
 
 
 
(3,328
)
 
(51,492
)

(1)
In June 2018, the carrying value for four of Teekay LNG's seven wholly-owned Multi-gas carriers, the Napa Spirit, Pan Spirit, Cathinka Spirit and Camilla Spirit, were written down to their estimated fair value, using appraised values, as a result of Teekay LNG's evaluation of alternative strategies for these assets, the current charter rate environment and the outlook for charter rates for these vessels.
(2)
In March 2019, the Company took an impairment charge in respect of certain of its FPSO-related assets.
(3)
In March 2018, the carrying value of the Alexander Spirit conventional tanker was written down to its estimated fair value, using an appraised value, as a result of changes in the Company's expectations of the vessel's future opportunities once its current charter contract ends in 2019. Teekay LNG commenced marketing the vessel for sale in 2019 and it is presented as held for sale in the consolidated balance sheets as at June 30, 2019.
(4)
In June and August 2017, the charterer for the European Spirit and African Spirit Suezmax tankers gave formal notices to Teekay LNG that it would not exercise its one-year extension option under the charter contracts and redelivered the tankers in August 2017 and November 2017, respectively. Upon receiving these notifications, Teekay LNG commenced marketing the vessels for sale. Based on second-hand market comparable values at the time, Teekay LNG wrote down the vessels to their estimated resale values and they were presented as held for sale on the consolidated balance sheets as at December 31, 2017. During the six months ended June 30, 2018, Teekay LNG recorded a further write-down of the vessels to their estimated resale value. In the fourth quarter of 2018, Teekay LNG sold the European Spirit and African Spirit for net proceeds of $15.7 million and $12.8 million, respectively, using the net proceeds from the sales primarily to repay its existing term loans associated with the vessels.
v3.19.2
Long-Term Debt
 6 Months Ended
Jun. 30, 2019
Debt Disclosure [Abstract]  
Debt Disclosure [Text Block]
Long-Term Debt
 
June 30, 2019
 
December 31, 2018
 
$
 
$
Revolving Credit Facilities
500,930

 
642,997

Senior Notes (8.5%) due January 15, 2020
36,712

 
508,577

Senior Notes (9.25%) due November 15, 2022
250,000

 
—

Convertible Senior Notes (5%) due January 15, 2023
125,000

 
125,000

Norwegian Krone-denominated Bonds due through August 2023
357,454

 
352,973

U.S. Dollar-denominated Term Loans due through 2030
1,437,688

 
1,536,499

Euro-denominated Term Loans due through 2024
180,115

 
193,781

Other U.S. Dollar-denominated loan
3,300

 
3,300

Total principal
2,891,199

 
3,363,127

Less unamortized discount and debt issuance costs
(47,874
)
 
(43,604
)
Total debt
2,843,325

 
3,319,523

Less current portion
(540,440
)
 
(242,137
)
Long-term portion
2,302,885

 
3,077,386



As of June 30, 2019, the Company had five revolving credit facilities (or the Revolvers) available, which, as at such date, provided for aggregate borrowings of up to $886.8 million, of which $385.8 million was undrawn. Interest payments are based on LIBOR plus margins; the margins ranged between 1.40% and 3.95% at June 30, 2019 and at December 31, 2018. The aggregate amount available under the Revolvers is scheduled to decrease by $17.4 million (remainder of 2019), $372.4 million (2020), $329.2 million (2021) and $167.8 million (2022). The Revolvers are collateralized by first-priority mortgages granted on 36 of the Company’s vessels, together with other related security, and include a guarantee from Teekay or its subsidiaries for all but one of the Revolvers' outstanding amounts. Included in other related security are 25.2 million common units in Teekay LNG and 40.3 million Class A common shares in Teekay Tankers to secure a $150 million credit facility.

The Company’s 8.5% senior unsecured notes are due January 15, 2020 with an original aggregate principal amount of $450 million (the Original Notes). The Original Notes issued on January 27, 2010 were sold at a price equal to 99.2% of par. During 2014, the Company repurchased $57.3 million of the Original Notes. In November 2015, the Company issued an aggregate principal amount of $200 million of the Company’s 8.5% senior unsecured notes due on January 15, 2020 (or the Additional Notes) at 99.01% of face value, plus accrued interest from July 15, 2015. The Additional Notes were an additional issuance of the Company's Original Notes (collectively referred to as the 2020 Notes). The Additional Notes were issued under the same indenture governing the Original Notes, and are fungible with the Original Notes. The discount on the 2020 Notes is accreted through the maturity date of the notes using the effective interest rate of 8.67% per year. During 2018, the Company repurchased $84.1 million in aggregate principal amount of the 2020 Notes. During the first quarter of 2019, the Company repurchased an additional $10.9 million in aggregate principal amount of the 2020 Notes.

In May 2019, the Company completed a cash tender offer and purchased $460.9 million in aggregate principal amount of the 2020 Notes and issued $250.0 million in aggregate principal amount of 9.25% senior secured notes at par due November 2022 (or the 2022 Notes). The Company recognized a loss of $10.7 million on the purchase of the 2020 Notes in the second quarter of 2019 which is included in other (loss) income in the consolidated statements of loss. The 2022 Notes are guaranteed on a senior secured basis by certain of our subsidiaries and are secured by first-priority liens on two of Teekay's FPSO units, a pledge of the equity interests of Teekay's subsidiary that owns all of Teekay's common units of Teekay LNG Partners L.P. and all of Teekay’s Class A common shares of Teekay Tankers Ltd. and a pledge of the equity interests in Teekay's subsidiaries that own Teekay Parent's three FPSO units.

The 2020 Notes rank equally in right of payment with all of Teekay's existing and future senior unsecured debt and senior to any future subordinated debt of Teekay. The 2020 Notes are not guaranteed by any of Teekay's subsidiaries and effectively rank behind all existing and future secured debt of Teekay and other liabilities of its subsidiaries.
 
The Company may redeem the 2020 Notes in whole or in part at any time before their maturity date at a redemption price equal to the greater of (i) 100% of the principal amount of the 2020 Notes to be redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the 2020 Notes to be redeemed (excluding accrued interest), discounted to the redemption date on a semi-annual basis, at the treasury yield plus 50 basis points, plus accrued and unpaid interest to the redemption date.

The Company may redeem the 2022 Notes in whole or in part at any time prior to November 15, 2020 at a redemption price equal to 100% of the principal amount of the 2022 Notes to be redeemed, plus the greater of (i) 1.0% of the principal amount of such 2022 Notes and (ii) the excess, if any, of the sum of the present values of the remaining scheduled payments of principal and interest on the 2022 Notes to be redeemed (excluding accrued interest), discounted to the redemption date on a semi-annual basis, at the treasury yield plus 50 basis points over the principal amount of such 2022 Notes, plus accrued and unpaid interest to, but excluding, the redemption date.

The Company may redeem the 2022 Notes in whole or in part at a redemption price equal to a percentage of the principal amount of the 2022 Notes to be redeemed plus accrued and unpaid interest to, but excluding, the redemption date, as follows: 104.625% at any time on or after November 15, 2020, but prior to November 15, 2021; 102.313% at any time on or after November 15, 2021, but prior to August 15, 2022; and 100% at any time on or after August 15, 2022.

On January 26, 2018, Teekay Parent completed a private offering of $125.0 million in aggregate principal amount of 5% Convertible Senior Notes due January 15, 2023 (the Convertible Notes). The Convertible Notes are convertible into Teekay’s common stock, initially at a rate of 85.4701 shares of common stock per $1,000 principal amount of Convertible Notes. This represents an initial effective conversion price of $11.70 per share of common stock. The initial conversion price represents a premium of 20% to the concurrent common stock offering price of $9.75 per share. The conversion rate is subject to customary adjustments for, among other things, payments of dividends by Teekay Parent beyond the current quarterly dividend of $0.055 per share of common stock. On issuance of the Convertible Notes, $104.6 million of the net proceeds was reflected in long-term debt, including unamortized discount, and is being accreted to $125.0 million over its five-year term through interest expense. The remaining amount of the net proceeds of $16.1 million was allocated to the conversion feature and reflected in additional paid-in capital.

Teekay LNG has a total of Norwegian Krone (or NOK) 3.1 billion in senior unsecured bonds issued in the Norwegian bond market at June 30, 2019 that mature through August 2023. As of June 30, 2019, the total carrying amount of the senior unsecured bonds was $357.5 million (December 31, 2018 – $353.0 million). The bonds are listed on the Oslo Stock Exchange. The interest payments on the bonds are based on NIBOR plus a margin, which ranges from 3.70% to 6.00%. The Company entered into cross currency rate swaps to swap all interest and principal payments of the bonds into U.S. Dollars, with the interest payments fixed at rates ranging from 5.92% to 7.89%, and the transfer of the principal amount fixed at $382.5 million upon maturity in exchange for NOK 3.1 billion (see Note 15).

As of June 30, 2019, the Company had 10 U.S. Dollar-denominated term loans outstanding, which totaled $1.4 billion in aggregate principal amount (December 31, 2018 – $1.5 billion). Interest payments on the term loans are based on LIBOR plus a margin, of which two of the term loans have additional tranches with a weighted average fixed rate of 4.49%. At June 30, 2019, the margins ranged between 0.30% and 3.25% and at December 31, 2018, the margins ranged between 0.30% and 3.50%. Term loans require payments in quarterly or semi-annual installments commencing three or six months after delivery of each newbuilding vessel financed thereby, and eight of the term loans have balloon or bullet repayments due at maturity. The term loans are collateralized by first-priority mortgages on 24 (December 31, 2018 – 24) of the Company’s vessels, together with certain other security.
 
Teekay LNG has two Euro-denominated term loans outstanding, which, as at June 30, 2019, totaled 158.4 million Euros ($180.1 million) (December 31, 2018 – 169.0 million Euros ($193.8 million)). Teekay LNG is servicing the loans with funds generated by two Euro-denominated, long-term time-charter contracts. Interest payments on the loans are based on EURIBOR plus a margin. At June 30, 2019 and December 31, 2018, the margins ranged between 0.60% and 1.95%. The Euro-denominated term loans reduce in monthly and semi-annual payments with varying maturities through 2024, are collateralized by first-priority mortgages on two of Teekay LNG's vessels, together with certain other security, and are guaranteed by Teekay LNG and one of its subsidiaries.

Both Euro-denominated term loans and NOK-denominated bonds are revalued at the end of each period using the then-prevailing U.S. Dollar exchange rate. Due primarily to the revaluation of the Company’s NOK-denominated bonds, the Company’s Euro-denominated term loans and restricted cash, and the change in the valuation of the Company’s cross currency swaps, the Company recognized a foreign exchange loss of $5.9 million (2018 – gain of $12.5 million) and a loss of $8.5 million (2018 – gain of $12.6 million) during the three and six months ended June 30, 2019 and 2018, respectively.

The weighted-average interest rate on the Company’s aggregate long-term debt as at June 30, 2019 was 4.9% (December 31, 2018 – 5.1%). This rate does not include the effect of the Company’s interest rate swap agreements (see Note 15).

Teekay has guaranteed obligations pursuant to certain credit facilities of Teekay Tankers. As at June 30, 2019, the aggregate outstanding balance on such credit facilities was $155.8 million.

The aggregate annual long-term debt principal repayments required to be made by the Company subsequent to June 30, 2019 are $120.1 million (remainder of 2019), $703.8 million (2020), $826.8 million (2021), $373.1 million (2022), $339.0 million (2023) and $528.4 million (thereafter).

The Company’s long-term debt agreements generally provide for maintenance of minimum consolidated financial covenants and five loan agreements require the maintenance of vessel market value to loan ratios. As at June 30, 2019, these ratios ranged from 135% to 511% compared to their minimum required ratios of 115% to 135%. The vessel values used in these ratios are the appraised values provided by third parties where available, or prepared by the Company based on second-hand sale and purchase market data. Changes in the LNG/LPG carrier and conventional tanker markets could negatively affect the Company's compliance with these ratios.

Two of Teekay Tankers’ term loans, which are scheduled to mature between January 2021 and August 2021 are guaranteed by Teekay. One of the term loans contains covenants that require Teekay Parent to maintain the greater of (a) free cash (cash and cash equivalents) and undrawn committed revolving credit lines with at least six months to maturity of at least $50.0 million and (b) an aggregate of free cash and undrawn committed revolving credit lines with at least six months to maturity of at least 5.0% of Teekay’s total consolidated debt (excluding the debt Teekay LNG and its subsidiaries and Teekay Tankers and its subsidiaries which is non-recourse to Teekay). The other term loan requires Teekay Parent and Teekay Tankers collectively to maintain the greater of (a) free cash (cash and cash equivalents) of at least $100.0 million and (b) an aggregate of free cash and undrawn committed revolving credit lines with at least six months to maturity of at least 7.5% of Teekay's total consolidated debt (excluding the debt of Teekay LNG). In addition, certain loan agreements require Teekay Tankers to maintain minimum liquidity (cash, cash equivalents and undrawn committed revolving credit lines with at least six months to maturity) of $35.0 million and at least 5.0% of Teekay Tankers' total consolidated debt. Certain loan agreements require Teekay LNG to maintain a minimum level of tangible net worth, and minimum liquidity (cash, cash equivalents and undrawn committed revolving credit lines with at least six months to maturity) of $35.0 million, and not to exceed a maximum level of financial leverage.

As at June 30, 2019, the Company was in compliance with all covenants under its credit facilities and other long-term debt.
v3.19.2
Capital Stock
 6 Months Ended
Jun. 30, 2019
Share-based Payment Arrangement [Abstract]  
Capital Stock
Capital Stock
The authorized capital stock of Teekay at June 30, 2019 and December 31, 2018 was 25 million shares of preferred stock, with a par value of $1 per share, and 725 million shares of common stock, with a par value of $0.001 per share. As at June 30, 2019, Teekay had no shares of preferred stock issued.

In April 2019, Teekay filed a continuous offering program (or COP) under which Teekay may issue shares of its common stock, at market prices up to a maximum aggregate amount of $63.0 million. No shares of common stock have been issued under this COP as of June 30, 2019.

During the six months ended June 30, 2018, Teekay completed a public offering of 10.0 million common shares priced at $9.75 per share, raising net proceeds of approximately $93.0 million and issued 1.1 million shares of common stock as part of a COP initiated in 2016 generating net proceeds of $10.7 million.

During the six months ended June 30, 2019 and 2018, the Company granted 2,646,903 and 1,048,916 stock options with exercise prices of $3.98 and $8.67 per share, respectively, 796,733 and 625,878 restricted stock units with fair values of $3.3 million and $5.4 million, respectively, and 144,441 and 79,869 shares of restricted stock awards with fair values of $0.5 million and $0.7 million, respectively, to certain of the Company’s employees and directors. Each stock option has a ten-year term and vests equally over three years from the grant date. Each restricted stock unit and restricted stock award is equal in value to one share of the Company’s common stock plus reinvested dividends from the grant date to the vesting date. The restricted stock units vest equally over three years from the grant date. Upon vesting, the value of the restricted stock units and restricted stock awards are paid to each grantee in the form of shares.

The weighted-average grant-date fair value of stock options granted during the six months ended June 30, 2019 was $1.47 per stock option. The fair value of each stock option granted was estimated on the grant date using the Black-Scholes option pricing model. The following weighted-average assumptions were used in computing the fair value of the stock options granted: expected volatility of 65.2%; expected life of 5.5 years; dividend yield of 5.9%; risk-free interest rate of 2.5%; and estimated forfeiture rate of 6.0%. The expected life of the stock options granted was estimated using the historical exercise behavior of employees. The expected volatility was generally based on historical volatility as calculated using historical data during the five years prior to the grant date.

Share-based Compensation of Subsidiaries

During the six months ended June 30, 2019 and 2018, 35,419 and 17,498 common units of Teekay LNG, respectively, and 159,375 and 168,029 shares of Class A common stock of Teekay Tankers, respectively, with aggregate values of $0.7 million and $0.5 million, respectively, were granted and issued to the non-management directors of the general partner of Teekay LNG and the non-management directors of Teekay Tankers as part of their annual compensation for 2019 and 2018.

Teekay LNG and Teekay Tankers grant equity-based compensation awards as incentive-based compensation to certain employees of Teekay’s subsidiaries that provide services to Teekay LNG and Teekay Tankers. During the six months ended June 30, 2019 and 2018, Teekay LNG and Teekay Tankers granted restricted unit/stock-based compensation awards with respect to 80,100 and 62,283 common units of Teekay LNG and 633,134 and 762,640 Class A common shares of Teekay Tankers, respectively, with aggregate grant date fair values of $1.8 million and $2.1 million, respectively, based on Teekay LNG and Teekay Tankers’ closing unit or stock prices on the grant dates. Each restricted stock unit is equal in value to one of Teekay LNG’s or Teekay Tankers’ common units or common shares plus reinvested distributions or dividends from the grant date to the vesting date. The awards vest equally over three years from the grant date. Upon vesting, the awards are paid to a substantial majority of the grantees in the form of common units or common shares, net of withholding tax.

During the six months ended June 30, 2019, Teekay Tankers granted 1,380,173 and 470,765 stock options with an exercise price of $1.00 per share to officers and non-management directors of Teekay Tankers, respectively. During March 2018, Teekay Tankers granted 736,327 and 504,097 stock options with an exercise price of $1.22 per share to officers and non-management directors of Teekay Tankers, respectively. Each stock option has a ten-year term and vests equally over three years from the grant date.
v3.19.2
Commitments and Contingencies
 6 Months Ended
Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Commitments and Contingencies
a)
Vessels Under Construction

Teekay LNG's share of commitments to fund newbuilding and other construction contract costs as at June 30, 2019 are as follows:
 
Total
$
Remainder of
2019
$
2020
$
2021
$
2022
$
Consolidated LNG carriers (i)
60,586

9,984

9,733

27,191

13,678

Equity-accounted joint ventures (ii)
349,681

349,681

—

—

—

 
410,267

359,665

9,733

27,191

13,678


(i)
In May 2019, Teekay LNG received approximately $45 million from a shipyard related to warranty claims on certain of Teekay LNG's LNG carriers and recognized the amounts as reductions to the carrying values of the applicable LNG carriers. In connection with the warranty settlement, Teekay LNG entered into an agreement in June 2019 with a contractor to supply equipment on certain of its LNG carriers in 2021 and 2022 for an estimated cost of approximately $61 million.

(ii)
The commitment amounts relating to Teekay LNG’s share of costs for newbuilding and other construction contracts in Teekay LNG’s equity-accounted joint ventures are based on Teekay LNG’s ownership percentage in each respective joint venture as of June 30, 2019. These commitments are described in more detail in "Item 18 – Financial Statements: Note 16" of the Company’s Annual Report on Form 20-F for the year ended December 31, 2018. Based on Teekay LNG's ownership percentage in each respective joint venture, Teekay LNG's equity-accounted joint ventures have secured $301.0 million of undrawn financing related to Teekay LNG's proportionate share of the remaining commitments included in the table above.

b)
Liquidity

Management is required to assess whether the Company will have sufficient liquidity to continue as a going concern for the one-year period following the issuance of its financial statements. The Company had a consolidated net loss of $95.6 million and consolidated cash flows from operating activities of $178.9 million during the six months ended June 30, 2019, and had a working capital deficit of $365.9 million as at June 30, 2019. This working capital deficit included approximately $540.4 million related to scheduled maturities and repayments of debt in the next 12 months, of which some loan maturities relate to assets which are subject to purchase obligations of the charterer, and was classified as current liabilities as at June 30, 2019.

The Company's liquidity assessment was positively impacted in the second quarter of 2019 as a result of a number of completed transactions described below. In April 2019, Teekay Parent commenced a cash tender offer (or the Offer) to purchase any and all of its outstanding 2020 Notes. Teekay Parent completed the Offer and purchased $460.9 million in aggregate principal amount of the 2020 Notes in May 2019. The purchase was funded by the net proceeds from Teekay Parent's concurrent bond offering of the 2022 Notes and the proceeds from the sale of Teekay Offshore as noted below, as well as its existing cash. The Company recognized a loss of $10.7 million on the purchase of the 2020 Notes in the second quarter of 2019.

In May 2019, Teekay Parent sold to Brookfield all of its remaining interests in Teekay Offshore, which included the Company’s 49% general partner interest, common units, warrants, and an outstanding $25 million loan from the Company to Teekay Offshore, for total proceeds of $100 million in cash. The transaction was completed in May 2019. The Company recognized a loss on sale of $8.9 million upon completion of the transaction in the second quarter of 2019.

In May 2019, Teekay Parent completed a private offering of $250.0 million in aggregate principal amount of the 2022 Notes. The 2022 Notes are guaranteed on a senior secured basis by certain of Teekay's subsidiaries and are secured by first-priority liens on two of Teekay Parent's FPSO units, a pledge of the equity interests of Teekay Parent's subsidiary that owns all of Teekay Parent's common units of Teekay LNG Partners L.P. and all of Teekay’s Class A common shares of Teekay Tankers Ltd. and a pledge of the equity interests in Teekay's subsidiaries that own Teekay Parent's three FPSO units.

In connection with the Offer and issuance of the 2022 Notes, the Board of Directors approved the elimination of the quarterly dividend on Teekay Parent’s common stock commencing with the quarter ended March 31, 2019.

In April 2019, Teekay Parent filed a COP under which Teekay Parent may issue shares of its common stock, at market prices up to a maximum aggregate amount of $63.0 million. No shares of common stock have been issued under this COP as of June 30, 2019.

Based on the Company’s liquidity at the date these consolidated financial statements were issued, and the liquidity the Company expects to generate from operations over the following year assuming no significant decline in spot tanker rates, the Company expects that it will have sufficient liquidity to continue as a going concern for at least the one-year period following the issuance of these consolidated financial statements.

c)
Legal Proceedings and Claims

The Company may, from time to time, be involved in legal proceedings and claims that arise in the ordinary course of business. The Company believes that any adverse outcome of existing claims, individually or in the aggregate, would not have a material effect on its financial position, results of operations or cash flows, when taking into account its insurance coverage and indemnifications from charterers.

d)
Other

The Company enters into indemnification agreements with certain officers and directors. In addition, the Company enters into other indemnification agreements in the ordinary course of business. The maximum potential amount of future payments required under these indemnification agreements is unlimited. However, the Company maintains what it believes is appropriate liability insurance that reduces its exposure and enables the Company to recover future amounts paid up to the maximum amount of the insurance coverage, less any deductible amounts pursuant to the terms of the respective policies, the amounts of which are not considered material.
v3.19.2
Financial Instruments
 6 Months Ended
Jun. 30, 2019
Fair Value Disclosures [Abstract]  
Financial Instruments
Financial Instruments
a)
Fair Value Measurements

For a description of how the Company estimates fair value and for a description of the fair value hierarchy levels, see "Item 18 – Financial Statements: Note 11" in the Company’s Annual Report on Form 20-F for the year ended December 31, 2018.

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 fair value on a recurring basis.
 
 
 
June 30, 2019
 
December 31, 2018
 
Fair
Value
Hierarchy
Level
 
Carrying
Amount
Asset
(Liability)
$
 
Fair
Value
Asset
(Liability)
$
 
Carrying
Amount
Asset
(Liability)
$
 
Fair
Value
Asset
(Liability)
$
Recurring
 
 
 
 
 
 
 
 
 
Cash, cash equivalents and restricted cash (note 18)
Level 1
 
322,883

 
322,883

 
505,639

 
505,639

Derivative instruments (note 15)
 
 
 
 
 
 
 
 
 
Interest rate swap agreements – assets (1)
Level 2
 
1,896

 
1,896

 
9,640

 
9,640

Interest rate swap agreements – liabilities (1)
Level 2
 
(56,663
)
 
(56,663
)
 
(43,175
)
 
(43,175
)
Cross currency interest swap agreements – liabilities(1)
Level 2
 
(31,006
)
 
(31,006
)
 
(29,122
)
 
(29,122
)
Foreign currency contracts
Level 2
 
(101
)
 
(101
)
 
—

 
—

Stock purchase warrants
Level 3
 
—

 
—

 
12,026

 
12,026

Freight forward agreements
Level 2
 
61

 
61

 
(57
)
 
(57
)
Other
 
 
 
 
 
 
 
 
 
Loans to equity-accounted investments
(2)
 
93,924

 
(2
)
 
169,197

 
(2
)
Loans to equity-accounted investments – Long-term
(2)
 
62,196

 
(2
)
 
62,207

 
(2
)
Short-term debt
Level 2
 
(15,000
)
 
(15,000
)
 
—

 
—

Long-term debt – public (note 9)
Level 1
 
(627,981
)
 
(658,046
)
 
(856,986
)
 
(851,470
)
Long-term debt – non-public (note 9)
Level 2
 
(2,215,344
)
 
(2,168,252
)
 
(2,462,537
)
 
(2,395,300
)
Obligations related to finance leases, including current portion (note 6)
Level 2
 
(1,826,732
)
 
(1,872,238
)
 
(1,673,845
)
 
(1,652,345
)
 
(1)
The fair value of the Company's interest rate swap and cross currency swap agreements at June 30, 2019 includes $2.6 million (December 31, 2018 - $3.2 million) accrued interest expense which is recorded in accrued liabilities on the unaudited consolidated balance sheets.

(2)
In the unaudited interim consolidated financial statements, the Company’s loans to and investments in equity-accounted investments form the aggregate carrying value of the Company’s interests in entities accounted for by the equity method. The fair value of the individual components of such aggregate interests is not determinable.

Stock purchase warrants - Prior to the 2019 Brookfield Transaction on May 8, 2019, Teekay held 15.5 million common unit warrants issued by Teekay Offshore to Teekay in connection with the 2017 Brookfield Transaction (or Brookfield Transaction Warrants) and 1,755,000 warrants to purchase common units of Teekay Offshore issued to Teekay in connection with Teekay Offshore's private placement of Series D Preferred Units in June 2016 (or the Series D Warrants) (see "Item 18 – Financial Statements: Note 4" of the Company’s Annual Report on Form 20-F for the year ended December 31, 2018). In May 2019, Teekay sold to Brookfield all of the Company’s remaining interests in Teekay Offshore, which included, among other things, both the Brookfield Transaction Warrants and Series D Warrants (see Note 4).

Changes in fair value during the three and six months ended June 30, 2019 and 2018 for the Company’s Brookfield Transaction Warrants and the Series D Warrants, which were measured at fair value using significant unobservable inputs (Level 3), are as follows: 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
 
$
 
$
 
$
 
$
Fair value at the beginning of the period
14,342

 
29,065

 
12,026

 
30,749

Unrealized gain included in earnings
24,584

 
6,206

 
26,900

 
4,522

Realized (loss) gain included in earnings
(25,559
)
 
—

 
(25,559
)
 
—

Settlements
(13,367
)
 
—

 
(13,367
)
 
—

Fair value at the end of the period
—

 
35,271

 
—

 
35,271



b)
Financing Receivables

The following table contains a summary of the Company’s carrying value of financing receivables by type of borrower and the method by which the Company monitors the credit quality of its financing receivables on a quarterly basis.
Class of Financing Receivable
 
Credit Quality Indicator
 
Grade
 
June 30, 2019
 
December 31, 2018
$
 
$
Direct financing leases
 
Payment activity
 
Performing
 
564,685

 
575,163

Other loan receivables
 
 
 
 
 
 
 
 
Loans to equity-accounted investments and joint venture partners
 
Other internal metrics
 
Performing
 
156,120

 
231,404

Long-term receivable and accrued revenue included in accounts receivable and other assets
 
Payment activity
 
Performing
 
6,857

 
15,694

 
 
 
 
 
 
727,662

 
822,261
v3.19.2
Restructuring Reversals (Charges)
 6 Months Ended
Jun. 30, 2019
Restructuring and Related Activities [Abstract]  
Restructuring Charges
Restructuring Charges
During the three and six months ended June 30, 2019, the Company recorded restructuring charges of $1.4 million and $10.0 million, respectively. The restructuring charges primarily related to severance costs resulting from the termination of certain management contracts in Teekay Parent of which the costs were fully recovered from the customer and the recovery is presented in revenue, as well as from the termination of the charter contract for the Toledo Spirit Suezmax tanker in Teekay LNG upon sale of the vessel.

During the three and six months ended June 30, 2018, the Company recorded restructuring charges of $1.1 million and $3.3 million, respectively. The restructuring charges primarily related to severance costs resulting from reorganization and realignment of resources of certain of the Company's business development, marine solutions and fleet operations functions to better respond to the changing business environment.

At June 30, 2019 and December 31, 2018, $1.3 million and $0.8 million, respectively, of restructuring liabilities were recorded in accounts payable, accrued liabilities and other on the consolidated balance sheets.
v3.19.2
Accumulated Other Comprehensive Income (Loss)
 6 Months Ended
Jun. 30, 2019
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Loss
As at June 30, 2019 and December 31, 2018, the Company’s accumulated other comprehensive loss (or AOCI) consisted of the following components:
 
June 30,
 
December 31,
 
2019
 
2018
 
$
 
$
Unrealized (loss) gain on qualifying cash flow hedging instruments
(17,801
)
 
903

Pension adjustments, net of tax recoveries
(3,342
)
 
(3,176
)
 
(21,143
)
 
(2,273
)
v3.19.2
Derivative Instruments and Hedging Activities
 6 Months Ended
Jun. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities
Derivative Instruments and Hedging Activities
The Company uses derivative instruments to manage certain risks in accordance with its overall risk management policies.

Foreign Exchange Risk

From time to time the Company economically hedges portions of its forecasted expenditures denominated in foreign currencies with foreign currency forward contracts.

As at June 30, 2019, 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 (Liability)
$
 
 
 
 
 
 
Expected Maturity
 
 
 
 
2019
 
2020
 
 
 
 
$
 
$
Euro
9,240
 
0.86
 
(101)
 
3,952
 
6,750


(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 date of the swap, 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 2020, 2021 and 2023. In addition, the cross currency swaps economically hedge the interest rate exposure on the NOK bonds due in 2020, 2021 and 2023. The Company has not designated, for accounting purposes, these cross currency swaps as cash flow hedges of its NOK-denominated bonds due in 2020, 2021 and 2023. As at June 30, 2019, 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)
1,000,000
 
134,000

 
NIBOR
 
3.70%
 
5.92%
 
(17,133
)
 
0.9
1,200,000
 
146,500

 
NIBOR
 
6.00%
 
7.72%
 
(5,785
)
 
2.3
850,000
 
102,000

 
NIBOR
 
4.60%
 
7.89%
 
(8,088
)
 
4.2
 
 
 
 
 
 
 
 
 
 
(31,006
)
 
 


Interest Rate Risk

The Company enters into interest rate swap agreements, which exchange a receipt of floating interest for a payment of fixed interest, to reduce the Company’s exposure to interest rate variability on its outstanding floating-rate debt. The Company designates certain of its interest rate swap agreements as cash flow hedges for accounting purposes.
 
As at June 30, 2019, 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 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
 
1,011,178

 
(44,855
)
 
3.6
 
3.0

EURIBOR-Based Debt:
 
 
 
 
 
 
 
 
 
Euro-denominated interest rate swaps
EURIBOR
 
81,059

 
(9,912
)
 
4.2
 
3.8

 
 
 
 
 
(54,767
)
 
 
 
 

(1)
Excludes the margins the Company pays on its variable-rate debt, which, as of June 30, 2019, ranged from 0.3% to 3.95%.
(2)
Includes interest rate swaps with the notional amount reducing quarterly or semi-annually. Two interest rate swaps are subject to mandatory early termination in 2020 and 2021, at which time the swaps will be settled based on their fair value.
Stock Purchase Warrants

Prior to the 2019 Brookfield Transaction on May 8, 2019, Teekay held 15.5 million Brookfield Transaction Warrants and 1,755,000 Series D Warrants of Teekay Offshore (see Note 12). As part of the 2019 Brookfield Transaction, Teekay sold to Brookfield all of the Company’s remaining interests in Teekay Offshore, which included, among other things, both the Brookfield Transaction Warrants and Series D Warrants.

Tabular Disclosure

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
 
Other Non-Current Assets
 
Accounts Payable, Accrued
Liabilities and Other
 
Current
Portion of
Derivative
Liabilities
 
Derivative
Liabilities
 
$
 
$
 
$
 
$
 
$
As at June 30, 2019
 
 
 
 
 
 
 
 
 
Derivatives designated as a cash flow hedge:
 
 
 
 
 
 
 
 
 
Interest rate swap agreements
—

 
—

 
3

 
(497
)
 
(3,758
)
Derivatives not designated as a cash flow hedge:
 
 
 
 
 
 
 
 
 
Foreign currency contracts
—

 
—

 
—

 
(101
)
 
—

Interest rate swap agreements
1,168

 
240

 
(2,094
)
 
(8,996
)
 
(40,833
)
Cross currency swap agreements
—

 
—

 
(538
)
 
(18,887
)
 
(11,581
)
Forward freight agreements
61

 
—

 
—

 
—

 


 
1,229

 
240

 
(2,629
)
 
(28,481
)
 
(56,172
)

 
 
Prepaid Expenses and Other
 
Other Non-Current Assets
 
Accounts Payable, Accrued
Liabilities and Other
 
Current
Portion of
Derivative
Liabilities
 
Derivative
Liabilities
 
$
 
$
 
$
 
$
 
$
As at December 31, 2018
 
 
 
 
 
 
 
 
 
Derivatives designated as a cash flow hedge:
 
 
 
 
 
 
 
 
 
Interest rate swap agreements
784

 
2,362

 
20

 
—

 
—

Derivatives not designated as a cash flow hedge:
 
 
 
 
 
 
 
 
 
Interest rate swap agreements
2,915

 
2,973

 
(2,498
)
 
(7,419
)
 
(32,672
)
Cross currency swap agreements
—

 
—

 
(713
)
 
(4,729
)
 
(23,680
)
Stock purchase warrants
—

 
12,026

 
—

 
—

 
—

Forward freight agreements
—

 
—

 
—

 
(57
)
 
—

 
3,699

 
17,361

 
(3,191
)
 
(12,205
)
 
(56,352
)


As at June 30, 2019, the Company had multiple interest rate swaps and cross currency swaps with the same counterparty that are subject to the same master agreements. Each of these master agreements provides for the net settlement of all derivatives subject to that master agreement through a single payment in the event of default or termination of any one derivative. The fair value of these derivatives is presented on a gross basis in the Company’s unaudited consolidated balance sheets. As at June 30, 2019, these derivatives had an aggregate fair value asset amount of $1.9 million and an aggregate fair value liability amount of $66.2 million.

For the periods indicated, the following tables present the gains (losses) on interest rate swap agreements designated and qualifying as cash flow hedges (excluding such agreements in equity-accounted investments):
Three Months Ended June 30, 2019
 
Amount
 
Amount
 
Recognized in AOCI (1)
 
Reclassified from AOCI (2)
 
(4,570)
 
157
Interest expense
Three Months Ended June 30, 2018
 
Effective Portion
 
Effective Portion
Ineffective
 
Recognized in AOCI (1)
 
Reclassified from AOCI (2)
Portion (3)
 
1,534
 
2
—
Interest expense
Six Months Ended June 30, 2019
 
Effective Portion
 
Amount
 
Recognized in AOCI (1)
 
Reclassified from AOCI (2)
 
(7,402)
 
408
Interest expense
Six Months Ended June 30, 2018
 
Effective Portion
 
Effective Portion
Ineffective
 
Recognized in AOCI (1)
 
Reclassified from AOCI (2)
Portion (3)
 
5,090
 
(248)
740
Interest expense

(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 gains (losses) on derivative instruments designated and qualifying as cash flow hedges.

Realized and unrealized (losses) and 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 gains (losses) on non-designated derivatives in the unaudited consolidated statements of loss as follows:

Three Months Ended June 30,
 
Six Months Ended June 30,

2019

2018
 
2019
 
2018

$

$
 
$
 
$
Realized losses relating to:





 
 
 
 
Interest rate swap agreements
(1,785
)

(4,031
)
 
(3,473
)
 
(8,840
)
Stock purchase warrants
(25,559
)
 
—

 
(25,559
)
 
—

Forward freight agreements
(29
)

(18
)
 
(42
)
 
(18
)

(27,373
)

(4,049
)
 
(29,074
)
 
(8,858
)
Unrealized gains (losses) relating to:





 
 
 
 
Interest rate swap agreements
(8,195
)

8,532

 
(14,216
)
 
24,451

Foreign currency forward contracts
(101
)

—

 
(101
)
 
—

Stock purchase warrants
24,584


6,206

 
26,900

 
4,522

Forward freight agreements
121


34

 
104

 
34


16,409


14,772

 
12,687

 
29,007

Total realized and unrealized (losses) gains on derivative instruments
(10,964
)

10,723

 
(16,387
)
 
20,149



Realized and unrealized gains and losses from cross currency swaps are recognized in earnings and reported in foreign exchange (loss) gain in the consolidated statements of loss as follows:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
 
$
 
$
 
$
 
$
Realized losses
(1,087
)
 
(1,798
)
 
(2,521
)
 
(3,182
)
Unrealized (losses) gains
(140
)
 
(16,566
)
 
(2,060
)
 
5,768

Total realized and unrealized (losses) gains on cross currency swaps
(1,227
)
 
(18,364
)
 
(4,581
)
 
2,586



The Company is exposed to credit loss to the extent the fair value represents an asset in the event of non-performance by the counterparties to the foreign currency forward contracts, and cross currency and interest rate swap agreements; however, the Company does not anticipate non-performance by any of the counterparties. In order to minimize counterparty risk, the Company only enters into derivative transactions with counterparties that are rated A- or better by Standard & Poor’s or A3 or better by Moody’s at the time of the transaction. In addition, to the extent possible and practical, interest rate swaps are entered into with different counterparties to reduce concentration risk.
v3.19.2
Income Tax Expense (Recovery)
 6 Months Ended
Jun. 30, 2019
Income Tax Disclosure [Abstract]  
Income Tax Expense
Income Tax Expense
The components of the provision for income tax expense are as follows:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019

2018
 
$
 
$
 
$

$
Current
(3,219
)
 
(8,410
)
 
(8,072
)
 
(11,221
)
Deferred
(185
)
 
(336
)
 
(368
)
 
(1,642
)
Income tax expense
(3,404
)
 
(8,746
)
 
(8,440
)
 
(12,863
)


The following table reflects changes in uncertain tax positions relating to freight tax liabilities, which are recorded in other long-term liabilities on the Company's consolidated balance sheets:
 
Six Months Ended June 30,
 
2019
 
2018
 
$
 
$
Balance of unrecognized tax benefits as at January 1
40,556

 
31,061

Increases for positions related to the current year
2,106

 
2,047

Changes for positions taken in prior periods
4,121

 
2,337

Decrease related to statute limitations
—

 
(312
)
Balance of unrecognized tax benefits as at June 30
46,783

 
35,133



The Company does not presently anticipate its uncertain tax positions will significantly increase in the next 12 months; however, this is dependent on the jurisdictions of the trading activity of its vessels. The Company reviews its freight tax obligations on a regular basis and may update its assessment of its tax positions based on available information at that time. Such information may include legal advice as to applicability of freight taxes in relevant jurisdictions. Freight tax regulations are subject to change and interpretation; therefore, the amounts recorded by the Company may change accordingly.
v3.19.2
Net Loss Per Share
 6 Months Ended
Jun. 30, 2019
Earnings Per Share [Abstract]  
Net Loss Per Share
Net Loss Per Share
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
 
$
 
$
 
$
 
$
Net loss attributable to the shareholders of Teekay Corporation – basic and diluted
(39,485
)
 
(28,324
)
 
(123,742
)
 
(48,879
)
Weighted average number of common shares
100,783,496

 
100,434,512

 
100,652,685

 
98,892,574

Common stock and common stock equivalents
100,783,496

 
100,434,512

 
100,652,685

 
98,892,574

Loss per common share – basic and diluted
(0.39
)
 
(0.28
)
 
(1.23
)
 
(0.49
)


The Company intends to settle the principal of the Convertible Notes in cash on conversion and calculates diluted earnings per share using the treasury-stock method. Stock-based awards and the conversion feature on the Convertible Notes that have an anti-dilutive effect on the calculation of diluted loss per common share, are excluded from this calculation. For the three and six months ended June 30, 2019, options to acquire 6.1 million shares of Teekay Common Stock had an anti-dilutive effect on the calculation of diluted income per common share (three and six months ended June 30, 2018 – 3.9 million). In periods where a loss attributable to shareholders of Teekay has been incurred, all stock-based awards and the conversion feature on the Convertible Notes are anti-dilutive.
v3.19.2
Supplementary Cash Flow Information
 6 Months Ended
Jun. 30, 2019
Supplemental Cash Flow Elements [Abstract]  
Supplementary Cash Flow Information
Supplemental Cash Flow Information
Total cash, cash equivalents and restricted cash are as follows:
 
June 30, 2019
 
December 31, 2018
 
June 30, 2018
 
December 31, 2017
 
$
 
$
 
$
 
$
Cash and cash equivalents
235,199

 
424,169

 
454,933

 
445,452

Restricted cash – current
50,798

 
40,493

 
55,466

 
38,179

Restricted cash – non-current
36,886

 
40,977

 
34,627

 
68,543

 
322,883

 
505,639

 
545,026

 
552,174



The Company maintains restricted cash deposits relating to certain term loans, collateral for cross currency swaps (see Note 15), leasing arrangements, project tenders and amounts received from charterers to be used only for dry-docking expenditures and emergency repairs.

The non-cash item related to operating lease right-of-use assets and operating lease liabilities for the six months ended June 30, 2019 was $211.6 million.

The associated sales of the Toledo Spirit and Teide Spirit by its owner during the six months ended June 30, 2019 and 2018, respectively, resulted in the vessels being returned to their owner with the obligations related to finance lease being concurrently extinguished. As a result, the sales of the vessels and the concurrent extinguishment of the corresponding obligations related to finance lease of $23.6 million and $23.1 million for the six months ended June 30, 2019 and 2018, respectively, were treated as non-cash transactions in the Company's consolidated statements of cash flows.
v3.19.2
Basis of Presentation (Policies)
 6 Months Ended
Jun. 30, 2019
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The unaudited interim consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (or GAAP). They include the accounts of Teekay Corporation (or Teekay), which is incorporated under the laws of the Republic of the Marshall Islands, its wholly-owned or controlled subsidiaries and any variable interest entities (or VIEs) of which it is the primary beneficiary (collectively, the Company).

Certain of Teekay’s significant non-wholly owned subsidiaries are consolidated in these financial statements even though Teekay owns less than a 50% ownership interest in the subsidiaries. These significant subsidiaries include the publicly-traded subsidiaries Teekay LNG Partners L.P. (or Teekay LNG) and Teekay Tankers Ltd. (or Teekay Tankers).
 
Certain information and footnote disclosures required by GAAP for complete annual financial statements have been omitted from these unaudited interim consolidated financial statements and, therefore, these financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2018, included in the Company’s Annual Report on Form 20-F, filed with the U.S. Securities and Exchange Commission (or SEC) on April 1, 2019. In the opinion of management, these unaudited interim consolidated financial statements reflect all adjustments, consisting of a normal recurring nature, necessary to present fairly, in all material respects, the Company’s consolidated financial position, results of operations, cash flows and changes in total equity for the interim periods presented. The results of operations for the three and six months ended June 30, 2019, are not necessarily indicative of those for a full fiscal year. Significant intercompany balances and transactions have been eliminated upon consolidation.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. It is possible that the amounts recorded as derivative assets and liabilities could vary by material amounts prior to their settlement.
v3.19.2
Accounting Pronouncements Accounting Pronouncements (Policies)
 6 Months Ended
Jun. 30, 2019
Accounting Changes and Error Corrections [Abstract]  
New Accounting Pronouncements, Policy
Recent Accounting Pronouncements
In February 2016, the Financial Accounting Standards Board (or FASB) issued Accounting Standards Update 2016-02, Leases (or ASU 2016-02). ASU 2016-02 establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. For lessees, leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 requires lessors to classify leases as a sales-type, direct financing or operating lease. A lease is a sales-type lease if any one of five criteria are met, each of which indicate that the lease, in effect, transfers control of the underlying asset to the lessee. If none of those five criteria are met, but two additional criteria are both met, indicating that the lessor has transferred substantially all of the risks and benefits of the underlying asset to the lessee and a third party, the lease is a direct financing lease. All leases that are not sales-type leases or direct financing leases are operating leases. ASU 2016-02 became effective for the Company on January 1, 2019. FASB issued an additional accounting standards update in July 2018 that made further amendments to accounting for leases, including allowing the use of a transition approach whereby a cumulative effect adjustment is made as of the effective date, with no retrospective effect and providing an optional practical expedient to lessors not to separate lease and non-lease components of a contract if certain criteria are met. In addition, the Company early adopted ASU 2019-01, which provides an exception for lessors who are not manufacturers or dealers to determine the fair value of leased property using the underlying asset's cost, instead of fair value. The Company has elected to use this new optional transitional approach. To determine the cumulative effect adjustment, the Company has not reassessed lease classification, initial direct costs for any existing leases, or whether any expired or existing contracts are or contain leases. The Company identified the following differences:

•
The adoption of ASU 2016-02 results in a change in the accounting method for the lease portion of the daily charter hire for the chartered-in vessels by the Company and the Company's equity-accounted joint ventures accounted for as operating leases with firm periods of greater than one year, as well as a small number of office leases. On January 1, 2019, a right-of-use asset of $170.0 million and a lease liability of $170.0 million were recognized, equal to the present value of future minimum lease payments. On June 30, 2019, the right-of-use asset relating to vessels was $173.5 million and the lease liability was $173.5 million. The carrying value of the Company's chartered-in vessels has also been reclassified from other non-current assets ($12.2 million – June 30, 2019 and $13.7 million – January 1, 2019) and from other long-term liabilities ($nil – June 30, 2019 and $0.9 million – January 1, 2019) to the right-of-use asset. In addition, on June 30, 2019 the right-of-use asset relating to office leases was $8.5 million and is presented in other non-current assets. The lease liability relating to office leases, presented in accounts payable, accrued liabilities and other and other long-term liabilities, was $8.7 million, and $0.2 million was reflected as a foreign exchange loss during the six months ended June 30, 2019. Under ASU 2016-02, the Company and the Company's equity-accounted joint ventures recognize a right-of-use asset and a lease liability on the balance sheet for these charters and office leases based on the present value of future minimum lease payments, whereas previously no right-of-use asset or lease liability was recognized. This resulted in an increase in the Company's and its equity-accounted joint ventures' assets and liabilities. The pattern of expense recognition of chartered-in vessels is expected to remain substantially unchanged from the prior policy, unless the right-of-use asset becomes impaired.

•
The adoption of ASU 2016-02 results in the recognition of revenue from the reimbursement of scheduled dry-dock expenditures, where such charter contract is accounted for as an operating lease, occurring upon completion of the scheduled dry-dock, instead of ratably over the period between the previous scheduled dry-dock and the next scheduled dry-dock. This change decreased investment in and loans to equity-accounted investments by $3.0 million, and total equity by $3.0 million as at June 30, 2019. The cumulative decrease to opening equity as at January 1, 2019 was $3.0 million.

•
The adoption of ASU 2016-02 results in direct financing lease payments received being presented as an operating cash inflow instead of an investing cash inflow in the consolidated statement of cash flows. Direct financing lease payments received during the three and six months ended June 30, 2019 were $3.0 million and $6.1 million, respectively (three and six months ended June 30, 2018 – $2.8 million and $5.2 million, respectively).

•
The adoption of ASU 2016-02 results in sale and leaseback transactions where the seller lessee has a fixed price repurchase option or other situations where the leaseback would be classified as a finance lease being accounted for as a failed sale of the vessel and a failed purchase of the vessel by the buyer lessor. Prior to the adoption of ASU 2016-02 such transactions were accounted for as a completed sale and a completed purchase. Consequently, for such transactions, the Company does not derecognize the vessel sold and continues to depreciate the vessel as if it was the legal owner. Proceeds received from the sale of the vessel are recognized as an obligation related to finance lease, and bareboat charter hire payments made by the Company to the lessor are allocated between interest expense and principal repayments on the obligation related to finance lease. The adoption of ASU 2016-02 has resulted in the sale and leaseback of the Yamal Spirit, the Cascade Spirit and the Aspen Spirit during the first half of 2019 being accounted for as failed sales and unlike the 22 sale-leaseback transactions entered in prior years, the Company is not considered as holding a variable interest in the buyer lessor entity and thus, does not consolidate the buyer lessor entity (see Note 6).

The Company's floating production, storage and offloading (or FPSO) contracts, time charters and voyage charters include both a lease component, consisting of the lease of the vessel, and a non-lease component, consisting of the operation of the vessel for the customer. The Company has elected not to separate the non-lease component from the lease component for all such charters, where the lease component is classified as an operating lease and certain other required criteria are met, and to account for the combined component as an operating lease in accordance with Accounting Standards Codification (or ASC) 842 Leases.

In August 2017, the FASB issued Accounting Standards Update 2017-12, Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities (or ASU 2017-12). ASU 2017-12 eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires, for qualifying hedges, the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The guidance also modifies the accounting for components excluded from the assessment of hedge effectiveness, eases documentation and assessment requirements and modifies certain disclosure requirements. ASU 2017-12 became effective for the Company on January 1, 2019. This change decreased accumulated other comprehensive (loss) income by $4.8 million as at January 1, 2019, and correspondingly increased opening equity as at January 1, 2019 by $4.8 million.

In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (or ASU 2016-13). ASU 2016-13 replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This update is effective for the Company on January 1, 2020, with a modified-retrospective approach. The Company is currently evaluating the effect of adopting this new guidance.
v3.19.2
Revenue (Tables)
 6 Months Ended
Jun. 30, 2019
Revenue from Contract with Customer [Abstract]  
Direct Financing Lease, Lease Income [Table Text Block]
The following table lists the components of Teekay LNG's net investments in direct financing leases:
 
June 30, 2019
 
December 31, 2018
 
$
 
$
Total minimum lease payments to be received
865,333

 
897,130

Estimated unguaranteed residual value of leased properties
291,098

 
291,098

Initial direct costs and other
312

 
329

Less unearned revenue
(592,058
)
 
(613,394
)
Total
564,685

 
575,163

Less current portion
(13,082
)
 
(12,635
)
Long-term portion
551,603

 
562,528
Disaggregation of Revenue
The following tables contain the Company’s revenue for the three and six months ended June 30, 2019 and 2018, by contract type, by segment and by business lines within segments.
 
Three Months Ended June 30, 2019
 
Teekay LNG
Liquefied
Gas
Carriers
Teekay LNG
Conventional
Tankers
Teekay
Tankers
Conventional
Tankers
Teekay
Parent
Offshore
Production
Teekay
Parent
Other
Eliminations
and Other
Total
 
 
 
$
$
$
$
$
$
$
Time charters
133,684

2,369

1,456

—

8,078

(2,487
)
143,100

Voyage charters
8,858

—

186,805

—

—

—

195,663

Bareboat charters
6,129

—

—

—

—

—

6,129

FPSO contracts
—

—

—

57,828

—

—

57,828

Management fees and other
2,020

—

14,016

—

39,911

(1,000
)
54,947

 
150,691

2,369

202,277

57,828

47,989

(3,487
)
457,667


 
Three Months Ended June 30, 2018
 
Teekay LNG
Liquefied
Gas
Carriers
Teekay LNG
Conventional
Tankers
Teekay
Tankers
Conventional
Tankers
Teekay
Parent
Offshore
Production
Teekay
Parent
Other
Eliminations
and Other
Total
 
 
 
$
$
$
$
$
$
$
Time charters
96,857

4,316

17,384

—

7,588

(1,439
)
124,706

Voyage charters
6,767

5,719

144,328

—

—

—

156,814

Bareboat charters
5,734

—

—

—

—

—

5,734

FPSO contracts
—

—

—

66,429

—

—

66,429

Management fees and other
2,814

108

9,947

—

38,595

495

51,959

 
112,172

10,143

171,659

66,429

46,183

(944
)
405,642

 
Six Months Ended June 30, 2019
 
Teekay LNG
Liquefied
Gas
Carriers
Teekay LNG
Conventional
Tankers
Teekay
Tankers
Conventional
Tankers
Teekay
Parent
Offshore
Production
Teekay
Parent
Other
Eliminations
and Other
Total
 
 
 
$
$
$
$
$
$
$
Time charters
264,459

5,131

4,866

—

14,347

(2,487
)
286,316

Voyage charters
18,018

—

403,222

—

—

—

421,240

Bareboat charters
12,191

—

—

—

—

—

12,191

FPSO contracts
—

—

—

107,266

—

—

107,266

Management fees and other
3,005

—

26,690

—

84,301

(2,129
)
111,867

 
297,673

5,131

434,778

107,266

98,648

(4,616
)
938,880


 
Six Months Ended June 30, 2018
 
Teekay LNG
Liquefied
Gas
Carriers
Teekay LNG
Conventional
Tankers
Teekay
Tankers
Conventional
Tankers
Teekay
Parent
Offshore
Production
Teekay
Parent
Other
Eliminations
and Other
Total
 
 
 
$
$
$
$
$
$
$
Time charters
190,316

9,714

39,494

—

20,682

(9,418
)
250,788

Voyage charters
10,390

10,470

279,970

—

—

—

300,830

Bareboat charters
11,111

—

—

—

—

—

11,111

FPSO contracts
—

—

—

132,399

—

—

132,399

Management fees and other
5,404

216

20,660

—

77,445

811

104,536

 
217,221

20,400

340,124

132,399

98,127

(8,607
)
799,664



The following tables contain the Company’s revenue for the three and six months ended June 30, 2019 and 2018, by contract type, by segment and by business lines within segments.
 
Three Months Ended June 30, 2019
 
Teekay LNG
Liquefied
Gas
Carriers
Teekay LNG
Conventional
Tankers
Teekay
Tankers
Conventional
Tankers
Teekay
Parent
Offshore
Production
Teekay
Parent
Other
Eliminations
and Other
Total
 
 
 
$
$
$
$
$
$
$
Time charters
133,684

2,369

1,456

—

8,078

(2,487
)
143,100

Voyage charters
8,858

—

186,805

—

—

—

195,663

Bareboat charters
6,129

—

—

—

—

—

6,129

FPSO contracts
—

—

—

57,828

—

—

57,828

Management fees and other
2,020

—

14,016

—

39,911

(1,000
)
54,947

 
150,691

2,369

202,277

57,828

47,989

(3,487
)
457,667


 
Three Months Ended June 30, 2018
 
Teekay LNG
Liquefied
Gas
Carriers
Teekay LNG
Conventional
Tankers
Teekay
Tankers
Conventional
Tankers
Teekay
Parent
Offshore
Production
Teekay
Parent
Other
Eliminations
and Other
Total
 
 
 
$
$
$
$
$
$
$
Time charters
96,857

4,316

17,384

—

7,588

(1,439
)
124,706

Voyage charters
6,767

5,719

144,328

—

—

—

156,814

Bareboat charters
5,734

—

—

—

—

—

5,734

FPSO contracts
—

—

—

66,429

—

—

66,429

Management fees and other
2,814

108

9,947

—

38,595

495

51,959

 
112,172

10,143

171,659

66,429

46,183

(944
)
405,642

 
Six Months Ended June 30, 2019
 
Teekay LNG
Liquefied
Gas
Carriers
Teekay LNG
Conventional
Tankers
Teekay
Tankers
Conventional
Tankers
Teekay
Parent
Offshore
Production
Teekay
Parent
Other
Eliminations
and Other
Total
 
 
 
$
$
$
$
$
$
$
Time charters
264,459

5,131

4,866

—

14,347

(2,487
)
286,316

Voyage charters
18,018

—

403,222

—

—

—

421,240

Bareboat charters
12,191

—

—

—

—

—

12,191

FPSO contracts
—

—

—

107,266

—

—

107,266

Management fees and other
3,005

—

26,690

—

84,301

(2,129
)
111,867

 
297,673

5,131

434,778

107,266

98,648

(4,616
)
938,880


 
Six Months Ended June 30, 2018
 
Teekay LNG
Liquefied
Gas
Carriers
Teekay LNG
Conventional
Tankers
Teekay
Tankers
Conventional
Tankers
Teekay
Parent
Offshore
Production
Teekay
Parent
Other
Eliminations
and Other
Total
 
 
 
$
$
$
$
$
$
$
Time charters
190,316

9,714

39,494

—

20,682

(9,418
)
250,788

Voyage charters
10,390

10,470

279,970

—

—

—

300,830

Bareboat charters
11,111

—

—

—

—

—

11,111

FPSO contracts
—

—

—

132,399

—

—

132,399

Management fees and other
5,404

216

20,660

—

77,445

811

104,536

 
217,221

20,400

340,124

132,399

98,127

(8,607
)
799,664



The following table contains the Company's total revenue for the three and six months ended June 30, 2019 and 2018, by contracts or components of contracts accounted for as leases and those not accounted for as leases.
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2019
 
2018
 
2019
 
2018
 
 
$
 
$
 
$
 
$
Lease revenue
 
 
 
 
 
 
 
 
Lease revenue from lease payments of operating leases
 
354,410

 
302,010

 
737,553

 
596,565

Interest income on lease receivables
 
12,969

 
9,954

 
25,763

 
19,914

Variable lease payments – cost reimbursements (1)
 
13,307

 
10,169

 
25,314

 
18,677

Variable lease payments – other (2)
 
16,320

 
27,426

 
27,144

 
51,708

 
 
397,006

 
349,559

 
815,774

 
686,864

Non-lease revenue
 
 
 
 
 
 
 
 
Non-lease revenue – related to sales-type or direct financing leases
 
5,714

 
4,124

 
11,239

 
8,264

Management fees and other income
 
54,947

 
51,959

 
111,867

 
104,536

 
 
60,661

 
56,083

 
123,106

 
112,800

Total
 
457,667

 
405,642

 
938,880

 
799,664

(1)
Reimbursement for vessel operating expenditures and dry-docking expenditures received from the Company's customers relating to such costs incurred by the Company to operate the vessel for the customer.
(2)
Compensation from time-charter contracts based on spot market rates in excess of a base daily hire amount, production tariffs, which are based on the volume of oil produced, the price of oil, as well as other monthly or annual operational performance measures.
v3.19.2
Segment Reporting (Tables)
 6 Months Ended
Jun. 30, 2019
Segment Reporting [Abstract]  
Disaggregation of Revenue
The following table includes the Company’s revenues by segment for the three and six months ended June 30, 2019 and 2018:
 
Revenues
 
Three Months Ended June 30,
Six Months Ended June 30,
 
2019
2018
2019
2018
 
$
$
$
$
Teekay LNG
 
 
 
 
Liquefied Gas Carriers(1)
150,691

112,172

297,673

217,221

Conventional Tankers
2,369

10,143

5,131

20,400

 
153,060

122,315

302,804

237,621

 
 
 
 
 
Teekay Tankers
 
 
 
 
Conventional Tankers(1)
202,277

171,659

434,778

340,124

 
 
 
 
 
Teekay Parent
 
 
 
 
Offshore Production
57,828

66,429

107,266

132,399

Other
47,989

46,183

98,648

98,127

 
105,817

112,612

205,914

230,526

 
 
 
 
 
Eliminations and other
(3,487
)
(944
)
(4,616
)
(8,607
)
 
457,667

405,642

938,880

799,664


(1)
The amounts in the table below represent revenue earned by each segment from other segments within the group. During 2019, Teekay Tankers' ship-to-ship transfer business provided operational and maintenance services to Teekay LNG Bahrain Operations L.L.C., an entity wholly-owned by Teekay LNG, for the LNG receiving and regasification terminal in Bahrain. Also during 2019, the Magellan Spirit was chartered by Teekay LNG to Teekay Parent. During 2018, certain vessels were chartered by Teekay LNG to Teekay Parent. Such intersegment revenue for the three and six months ended June 30, 2019 and 2018 is as follows:
 
Three Months Ended June 30,
Six Months Ended June 30,
 
2019
2018
2019
2018
 
$
$
$
$
Teekay LNG - Liquefied Gas Carriers
2,487

1,439

2,487

9,418

Teekay Tankers - Conventional Tankers
1,000

—

2,129

—

 
3,487

1,439

4,616

9,418
Income (loss) from Vessel Operations by Segment
The following table includes the Company’s income (loss) from vessel operations by segment for the three and six months ended June 30, 2019 and 2018:
 
Income (Loss) from Vessel Operations(1)
 
Three Months Ended June 30,
Six Months Ended June 30,
 
2019
2018
2019
2018
 
$
$
$
$
Teekay LNG
 
 
 
 
Liquefied Gas Carriers
74,244

9,445

144,687

53,990

Conventional Tankers
433

1,060

(649
)
(18,343
)
 
74,677

10,505

144,038

35,647

 
 
 
 
 
Teekay Tankers
 
 
 
 
Conventional Tankers
5,051

(13,415
)
37,148

(21,836
)
 
 
 
 
 
Teekay Parent
 
 
 
 
Offshore Production
(5,987
)
5,541

(18,544
)
12,423

Other
(2,278
)
(710
)
(6,947
)
(5,808
)
 
(8,265
)
4,831

(25,491
)
6,615

 
 
 
 
 
 
71,463

1,921

155,695

20,426


(1)
Includes direct general and administrative expenses and indirect general and administrative expenses (allocated to each segment based on estimated use of corporate resources).
Reconciliation of Total Segment Assets
A reconciliation of total segment assets to total assets presented in the accompanying unaudited consolidated balance sheets is as follows:
 
June 30, 2019
December 31, 2018
 
$
$
Teekay LNG – Liquefied Gas Carriers
5,207,739

5,188,088

Teekay LNG – Conventional Tankers
13,748

39,450

Teekay Tankers – Conventional Tankers
2,118,499

2,106,169

Teekay Parent – Offshore Production
361,785

311,550

Teekay Parent – Conventional Tankers
—

13,056

Teekay Parent – Other
91,683

25,224

Teekay Offshore
—

233,225

Cash and cash equivalents
235,199

424,169

Other assets not allocated
130,348

70,153

Eliminations
(32,983
)
(19,414
)
Consolidated total assets
8,126,018

8,391,670
v3.19.2
Leases (Tables)
 6 Months Ended
Jun. 30, 2019
Lessee, Lease, Description [Line Items]  
Lease, Cost [Table Text Block]
Obligations Related to Finance Leases

June 30, 2019

December 31, 2018

$

$
Teekay LNG
 
 
 
LNG Carriers
1,399,796

 
1,274,569

Suezmax Tanker
—

 
23,987

Teekay Tankers
 
 
 
Suezmax Tankers
222,859

 
165,145

Aframax Tankers
178,518

 
184,021

LR2 Product Tanker
25,559

 
26,123

Total obligations related to finance leases
1,826,732

 
1,673,845

Less current portion
(89,922
)
 
(102,115
)
Long-term obligations related to finance leases
1,736,810

 
1,571,730
Finance Lease, Liability, Maturity [Table Text Block]
As at June 30, 2019 and December 31, 2018, the total remaining commitments related to the financial liabilities of Teekay Tankers' Suezmax, Aframax and LR2 product tankers, including the amounts to be paid for the related purchase obligations, approximated $632.0 million (December 31, 2018 – $557.1 million), including imputed interest of $203.2 million (December 31, 2018 – $181.8 million), repayable from 2019 through 2030, as indicated below:


Commitments
 
 
At June 30, 2019
 
At December 31, 2018
Year

$
 
$
Remainder of 2019

30,336

 
47,962

2020

56,364

 
47,373

2021

56,202

 
47,237

2022

56,193

 
47,230

2023

56,184

 
47,222

Thereafter

376,750

 
320,064
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]
A maturity analysis of the Company’s operating lease liabilities from time-charter-in and bareboat charter contracts (excluding short-term leases) at June 30, 2019 is as follows:

 
Lease Commitment

Non-Lease Commitment
 
Total Commitment
Year
 
$

$
 
$
Payments
 
 
 
 
 
 
Remainder of 2019
 
36,398

 
17,112

 
53,510

2020
 
65,362

 
33,659

 
99,021

2021
 
51,672

 
24,913

 
76,585

2022
 
22,978

 
8,189

 
31,167

2023
 
9,227

 
—

 
9,227

Thereafter
 
5,712

 
—

 
5,712

Total payments
 
191,349

 
83,873

 
275,222

Less: imputed interest
 
(17,873
)
 
 
 
 
Carrying value of operating lease liabilities
 
173,476

 
 
 
 
Less current portion
 
(59,554
)
 
 
 
 
Carrying value of long-term operating lease liabilities
 
113,922

 
 
 
 
Teekay LNG  
Lessee, Lease, Description [Line Items]  
Finance Lease, Liability, Maturity [Table Text Block]
As at June 30, 2019 and December 31, 2018, the remaining commitments related to the financial liabilities of these nine LNG carriers (December 31, 2018 – eight LNG carriers) including the amounts to be paid for the related purchase obligations, approximated $1.9 billion (December 31, 2018 – $1.7 billion), including imputed interest of $495.6 million (December 31, 2018 – $435.3 million), repayable for the remainder of 2019 through 2034, as indicated below:


Commitments
 
 
At June 30, 2019
 
At December 31, 2018
Year

$
 
$
Remainder of 2019

67,962

 
119,517

2020

134,915

 
118,685

2021

133,542

 
117,772

2022

132,312

 
116,978

2023

131,237

 
116,338

Thereafter

1,295,440

 
1,120,670
v3.19.2
Write-down and Loss on Sales of Vessels (Tables)
 6 Months Ended
Jun. 30, 2019
Property, Plant and Equipment [Abstract]  
Schedule of Impairment and Loss on Sale of Vessels, Equipment and Other Operating Assets
The following tables contain the write-downs and loss on sales of vessels for the three and six months ended June 30, 2019 and 2018:
 
 
 
 
 
 
Three Months Ended June 30,
Segment

Asset Type

Completion of Sale Date

2019
$

2018
$
Teekay LNG Segment – Liquefied Gas Carriers (1)
 
4 Multi-gas Carriers
 
N/A
 
—

 
(33,000
)
Other
 
 
 
 
 
—

 
170

Total
 
 
 
 
 
—

 
(32,830
)


 
 
 
 
 
 
Six Months Ended June 30,
Segment
 
Asset Type
 
Completion of Sale Date
 
2019
$
 
2018
$
Teekay Parent Segment - Offshore Production (2)
 
FPSO
 
N/A
 
(3,328
)
 
—

Teekay LNG Segment - Conventional Tankers (3)
 
Handymax
 
N/A
 
—

 
(13,000
)
Teekay LNG Segment - Liquefied Gas Carriers (1)
 
4 Multi-gas Carriers
 
N/A
 
—

 
(33,000
)
Teekay LNG Segment - Conventional Tankers (4)
 
2 Suezmaxes
 
Oct/Dec-2018
 
—

 
(5,662
)
Other
 
 
 
 
 
—

 
170

Total
 
 
 
 
 
(3,328
)
 
(51,492
)

(1)
In June 2018, the carrying value for four of Teekay LNG's seven wholly-owned Multi-gas carriers, the Napa Spirit, Pan Spirit, Cathinka Spirit and Camilla Spirit, were written down to their estimated fair value, using appraised values, as a result of Teekay LNG's evaluation of alternative strategies for these assets, the current charter rate environment and the outlook for charter rates for these vessels.
(2)
In March 2019, the Company took an impairment charge in respect of certain of its FPSO-related assets.
(3)
In March 2018, the carrying value of the Alexander Spirit conventional tanker was written down to its estimated fair value, using an appraised value, as a result of changes in the Company's expectations of the vessel's future opportunities once its current charter contract ends in 2019. Teekay LNG commenced marketing the vessel for sale in 2019 and it is presented as held for sale in the consolidated balance sheets as at June 30, 2019.
(4)
In June and August 2017, the charterer for the European Spirit and African Spirit Suezmax tankers gave formal notices to Teekay LNG that it would not exercise its one-year extension option under the charter contracts and redelivered the tankers in August 2017 and November 2017, respectively. Upon receiving these notifications, Teekay LNG commenced marketing the vessels for sale. Based on second-hand market comparable values at the time, Teekay LNG wrote down the vessels to their estimated resale values and they were presented as held for sale on the consolidated balance sheets as at December 31, 2017. During the six months ended June 30, 2018, Teekay LNG recorded a further write-down of the vessels to their estimated resale value. In the fourth quarter of 2018, Teekay LNG sold the European Spirit and African Spirit for net proceeds of $15.7 million and $12.8 million, respectively, using the net proceeds from the sales primarily to repay its existing term loans associated with the vessels.
v3.19.2
Accounts Payable, Accrued Liabilities and Other (Tables)
 6 Months Ended
Jun. 30, 2019
Payables and Accruals [Abstract]  
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]
Accounts Payable, Accrued Liabilities and Other
 
June 30, 2019
 
December 31, 2018
 
$
 
$
Accounts payable
117,408

 
31,201

Accrued liabilities
 
 
 
Voyage and vessel expenses
113,748

 
98,135

Interest
31,582

 
47,731

Payroll and related liabilities
31,623

 
34,849

Distributions payable
6,486

 
6,426

Short-term debt
15,000

 
—

Deferred revenues – current
31,012

 
30,108

In-process revenue contracts – current
5,933

 
5,930

Office lease liability – current (note 2)
3,230

 
—

 
356,022

 
254,380
v3.19.2
Long-Term Debt (Tables)
 6 Months Ended
Jun. 30, 2019
Debt Disclosure [Abstract]  
Summary of Long-Term Debt
 
June 30, 2019
 
December 31, 2018
 
$
 
$
Revolving Credit Facilities
500,930

 
642,997

Senior Notes (8.5%) due January 15, 2020
36,712

 
508,577

Senior Notes (9.25%) due November 15, 2022
250,000

 
—

Convertible Senior Notes (5%) due January 15, 2023
125,000

 
125,000

Norwegian Krone-denominated Bonds due through August 2023
357,454

 
352,973

U.S. Dollar-denominated Term Loans due through 2030
1,437,688

 
1,536,499

Euro-denominated Term Loans due through 2024
180,115

 
193,781

Other U.S. Dollar-denominated loan
3,300

 
3,300

Total principal
2,891,199

 
3,363,127

Less unamortized discount and debt issuance costs
(47,874
)
 
(43,604
)
Total debt
2,843,325

 
3,319,523

Less current portion
(540,440
)
 
(242,137
)
Long-term portion
2,302,885

 
3,077,386
v3.19.2
Commitments and Contingencies (Tables)
 6 Months Ended
Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Joint Ventures
a)
Vessels Under Construction

Teekay LNG's share of commitments to fund newbuilding and other construction contract costs as at June 30, 2019 are as follows:
 
Total
$
Remainder of
2019
$
2020
$
2021
$
2022
$
Consolidated LNG carriers (i)
60,586

9,984

9,733

27,191

13,678

Equity-accounted joint ventures (ii)
349,681

349,681

—

—

—

 
410,267

359,665

9,733

27,191

13,678


(i)
In May 2019, Teekay LNG received approximately $45 million from a shipyard related to warranty claims on certain of Teekay LNG's LNG carriers and recognized the amounts as reductions to the carrying values of the applicable LNG carriers. In connection with the warranty settlement, Teekay LNG entered into an agreement in June 2019 with a contractor to supply equipment on certain of its LNG carriers in 2021 and 2022 for an estimated cost of approximately $61 million.

(ii)
The commitment amounts relating to Teekay LNG’s share of costs for newbuilding and other construction contracts in Teekay LNG’s equity-accounted joint ventures are based on Teekay LNG’s ownership percentage in each respective joint venture as of June 30, 2019. These commitments are described in more detail in "Item 18 – Financial Statements: Note 16" of the Company’s Annual Report on Form 20-F for the year ended December 31, 2018. Based on Teekay LNG's ownership percentage in each respective joint venture, Teekay LNG's equity-accounted joint ventures have secured $301.0 million of undrawn financing related to Teekay LNG's proportionate share of the remaining commitments included in the table above.
v3.19.2
Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2019
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments and Other Non-Financial Assets
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 fair value on a recurring basis.
 
 
 
June 30, 2019
 
December 31, 2018
 
Fair
Value
Hierarchy
Level
 
Carrying
Amount
Asset
(Liability)
$
 
Fair
Value
Asset
(Liability)
$
 
Carrying
Amount
Asset
(Liability)
$
 
Fair
Value
Asset
(Liability)
$
Recurring
 
 
 
 
 
 
 
 
 
Cash, cash equivalents and restricted cash (note 18)
Level 1
 
322,883

 
322,883

 
505,639

 
505,639

Derivative instruments (note 15)
 
 
 
 
 
 
 
 
 
Interest rate swap agreements – assets (1)
Level 2
 
1,896

 
1,896

 
9,640

 
9,640

Interest rate swap agreements – liabilities (1)
Level 2
 
(56,663
)
 
(56,663
)
 
(43,175
)
 
(43,175
)
Cross currency interest swap agreements – liabilities(1)
Level 2
 
(31,006
)
 
(31,006
)
 
(29,122
)
 
(29,122
)
Foreign currency contracts
Level 2
 
(101
)
 
(101
)
 
—

 
—

Stock purchase warrants
Level 3
 
—

 
—

 
12,026

 
12,026

Freight forward agreements
Level 2
 
61

 
61

 
(57
)
 
(57
)
Other
 
 
 
 
 
 
 
 
 
Loans to equity-accounted investments
(2)
 
93,924

 
(2
)
 
169,197

 
(2
)
Loans to equity-accounted investments – Long-term
(2)
 
62,196

 
(2
)
 
62,207

 
(2
)
Short-term debt
Level 2
 
(15,000
)
 
(15,000
)
 
—

 
—

Long-term debt – public (note 9)
Level 1
 
(627,981
)
 
(658,046
)
 
(856,986
)
 
(851,470
)
Long-term debt – non-public (note 9)
Level 2
 
(2,215,344
)
 
(2,168,252
)
 
(2,462,537
)
 
(2,395,300
)
Obligations related to finance leases, including current portion (note 6)
Level 2
 
(1,826,732
)
 
(1,872,238
)
 
(1,673,845
)
 
(1,652,345
)
 
(1)
The fair value of the Company's interest rate swap and cross currency swap agreements at June 30, 2019 includes $2.6 million (December 31, 2018 - $3.2 million) accrued interest expense which is recorded in accrued liabilities on the unaudited consolidated balance sheets.

(2)
In the unaudited interim consolidated financial statements, the Company’s loans to and investments in equity-accounted investments form the aggregate carrying value of the Company’s interests in entities accounted for by the equity method. The fair value of the individual components of such aggregate interests is not determinable.
Stock Purchase Warrants Changes in Fair Value Measured on Recurring Basis Using Significant Unobservable Inputs (Level 3)
Changes in fair value during the three and six months ended June 30, 2019 and 2018 for the Company’s Brookfield Transaction Warrants and the Series D Warrants, which were measured at fair value using significant unobservable inputs (Level 3), are as follows: 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
 
$
 
$
 
$
 
$
Fair value at the beginning of the period
14,342

 
29,065

 
12,026

 
30,749

Unrealized gain included in earnings
24,584

 
6,206

 
26,900

 
4,522

Realized (loss) gain included in earnings
(25,559
)
 
—

 
(25,559
)
 
—

Settlements
(13,367
)
 
—

 
(13,367
)
 
—

Fair value at the end of the period
—

 
35,271

 
—

 
35,271
Summary of Financing Receivables
The following table contains a summary of the Company’s carrying value of financing receivables by type of borrower and the method by which the Company monitors the credit quality of its financing receivables on a quarterly basis.
Class of Financing Receivable
 
Credit Quality Indicator
 
Grade
 
June 30, 2019
 
December 31, 2018
$
 
$
Direct financing leases
 
Payment activity
 
Performing
 
564,685

 
575,163

Other loan receivables
 
 
 
 
 
 
 
 
Loans to equity-accounted investments and joint venture partners
 
Other internal metrics
 
Performing
 
156,120

 
231,404

Long-term receivable and accrued revenue included in accounts receivable and other assets
 
Payment activity
 
Performing
 
6,857

 
15,694

 
 
 
 
 
 
727,662

 
822,261
v3.19.2
Accumulated Other Comprehensive Loss (Tables)
 6 Months Ended
Jun. 30, 2019
Equity [Abstract]  
Schedule of Accumulated Other Comprehensive Loss
As at June 30, 2019 and December 31, 2018, the Company’s accumulated other comprehensive loss (or AOCI) consisted of the following components:
 
June 30,
 
December 31,
 
2019
 
2018
 
$
 
$
Unrealized (loss) gain on qualifying cash flow hedging instruments
(17,801
)
 
903

Pension adjustments, net of tax recoveries
(3,342
)
 
(3,176
)
 
(21,143
)
 
(2,273
)
v3.19.2
Derivative Instruments and Hedging Activities (Tables)
 6 Months Ended
Jun. 30, 2019
Derivative [Line Items]  
Schedule of Foreign Exchange Contracts, Statement of Financial Position [Table Text Block]
Foreign Exchange Risk

From time to time the Company economically hedges portions of its forecasted expenditures denominated in foreign currencies with foreign currency forward contracts.

As at June 30, 2019, 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 (Liability)
$
 
 
 
 
 
 
Expected Maturity
 
 
 
 
2019
 
2020
 
 
 
 
$
 
$
Euro
9,240
 
0.86
 
(101)
 
3,952
 
6,750


(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 date of the swap, 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 2020, 2021 and 2023. In addition, the cross currency swaps economically hedge the interest rate exposure on the NOK bonds due in 2020, 2021 and 2023. The Company has not designated, for accounting purposes, these cross currency swaps as cash flow hedges of its NOK-denominated bonds due in 2020, 2021 and 2023. As at June 30, 2019, 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)
1,000,000
 
134,000

 
NIBOR
 
3.70%
 
5.92%
 
(17,133
)
 
0.9
1,200,000
 
146,500

 
NIBOR
 
6.00%
 
7.72%
 
(5,785
)
 
2.3
850,000
 
102,000

 
NIBOR
 
4.60%
 
7.89%
 
(8,088
)
 
4.2
 
 
 
 
 
 
 
 
 
 
(31,006
)
 
 
Interest Rate Swap Agreements
As at June 30, 2019, 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 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
 
1,011,178

 
(44,855
)
 
3.6
 
3.0

EURIBOR-Based Debt:
 
 
 
 
 
 
 
 
 
Euro-denominated interest rate swaps
EURIBOR
 
81,059

 
(9,912
)
 
4.2
 
3.8

 
 
 
 
 
(54,767
)
 
 
 
 

(1)
Excludes the margins the Company pays on its variable-rate debt, which, as of June 30, 2019, ranged from 0.3% to 3.95%.
(2)
Includes interest rate swaps with the notional amount reducing quarterly or semi-annually. Two interest rate swaps are subject to mandatory early termination in 2020 and 2021, at which time the swaps will be settled based on their fair value.
Location and Fair Value Amounts of Derivative Instruments
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
 
Other Non-Current Assets
 
Accounts Payable, Accrued
Liabilities and Other
 
Current
Portion of
Derivative
Liabilities
 
Derivative
Liabilities
 
$
 
$
 
$
 
$
 
$
As at June 30, 2019
 
 
 
 
 
 
 
 
 
Derivatives designated as a cash flow hedge:
 
 
 
 
 
 
 
 
 
Interest rate swap agreements
—

 
—

 
3

 
(497
)
 
(3,758
)
Derivatives not designated as a cash flow hedge:
 
 
 
 
 
 
 
 
 
Foreign currency contracts
—

 
—

 
—

 
(101
)
 
—

Interest rate swap agreements
1,168

 
240

 
(2,094
)
 
(8,996
)
 
(40,833
)
Cross currency swap agreements
—

 
—

 
(538
)
 
(18,887
)
 
(11,581
)
Forward freight agreements
61

 
—

 
—

 
—

 


 
1,229

 
240

 
(2,629
)
 
(28,481
)
 
(56,172
)

 
 
Prepaid Expenses and Other
 
Other Non-Current Assets
 
Accounts Payable, Accrued
Liabilities and Other
 
Current
Portion of
Derivative
Liabilities
 
Derivative
Liabilities
 
$
 
$
 
$
 
$
 
$
As at December 31, 2018
 
 
 
 
 
 
 
 
 
Derivatives designated as a cash flow hedge:
 
 
 
 
 
 
 
 
 
Interest rate swap agreements
784

 
2,362

 
20

 
—

 
—

Derivatives not designated as a cash flow hedge:
 
 
 
 
 
 
 
 
 
Interest rate swap agreements
2,915

 
2,973

 
(2,498
)
 
(7,419
)
 
(32,672
)
Cross currency swap agreements
—

 
—

 
(713
)
 
(4,729
)
 
(23,680
)
Stock purchase warrants
—

 
12,026

 
—

 
—

 
—

Forward freight agreements
—

 
—

 
—

 
(57
)
 
—

 
3,699

 
17,361

 
(3,191
)
 
(12,205
)
 
(56,352
)
Schedule of Cash Flow Hedges
For the periods indicated, the following tables present the gains (losses) on interest rate swap agreements designated and qualifying as cash flow hedges (excluding such agreements in equity-accounted investments):
Three Months Ended June 30, 2019
 
Amount
 
Amount
 
Recognized in AOCI (1)
 
Reclassified from AOCI (2)
 
(4,570)
 
157
Interest expense
Three Months Ended June 30, 2018
 
Effective Portion
 
Effective Portion
Ineffective
 
Recognized in AOCI (1)
 
Reclassified from AOCI (2)
Portion (3)
 
1,534
 
2
—
Interest expense
Six Months Ended June 30, 2019
 
Effective Portion
 
Amount
 
Recognized in AOCI (1)
 
Reclassified from AOCI (2)
 
(7,402)
 
408
Interest expense
Six Months Ended June 30, 2018
 
Effective Portion
 
Effective Portion
Ineffective
 
Recognized in AOCI (1)
 
Reclassified from AOCI (2)
Portion (3)
 
5,090
 
(248)
740
Interest expense

(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 gains (losses) on derivative instruments designated and qualifying as cash flow hedges.
Effect of Gain (Loss) on Derivatives Not Designated as Hedging Instruments
as follows:

Three Months Ended June 30,
 
Six Months Ended June 30,

2019

2018
 
2019
 
2018

$

$
 
$
 
$
Realized losses relating to:





 
 
 
 
Interest rate swap agreements
(1,785
)

(4,031
)
 
(3,473
)
 
(8,840
)
Stock purchase warrants
(25,559
)
 
—

 
(25,559
)
 
—

Forward freight agreements
(29
)

(18
)
 
(42
)
 
(18
)

(27,373
)

(4,049
)
 
(29,074
)
 
(8,858
)
Unrealized gains (losses) relating to:





 
 
 
 
Interest rate swap agreements
(8,195
)

8,532

 
(14,216
)
 
24,451

Foreign currency forward contracts
(101
)

—

 
(101
)
 
—

Stock purchase warrants
24,584


6,206

 
26,900

 
4,522

Forward freight agreements
121


34

 
104

 
34


16,409


14,772

 
12,687

 
29,007

Total realized and unrealized (losses) gains on derivative instruments
(10,964
)

10,723

 
(16,387
)
 
20,149
Effect of Gains (Losses) on Cross Currency Swaps
as follows:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
 
$
 
$
 
$
 
$
Realized losses
(1,087
)
 
(1,798
)
 
(2,521
)
 
(3,182
)
Unrealized (losses) gains
(140
)
 
(16,566
)
 
(2,060
)
 
5,768

Total realized and unrealized (losses) gains on cross currency swaps
(1,227
)
 
(18,364
)
 
(4,581
)
 
2,586
v3.19.2
Income Tax Expense (Recovery) (Tables)
 6 Months Ended
Jun. 30, 2019
Income Tax Disclosure [Abstract]  
Components of Provision for Income Tax (Expense) Recovery
The components of the provision for income tax expense are as follows:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019

2018
 
$
 
$
 
$

$
Current
(3,219
)
 
(8,410
)
 
(8,072
)
 
(11,221
)
Deferred
(185
)
 
(336
)
 
(368
)
 
(1,642
)
Income tax expense
(3,404
)
 
(8,746
)
 
(8,440
)
 
(12,863
)
Unrecognized Tax Benefits, Recorded in Other Long-Term Liabilities
 
Six Months Ended June 30,
 
2019
 
2018
 
$
 
$
Balance of unrecognized tax benefits as at January 1
40,556

 
31,061

Increases for positions related to the current year
2,106

 
2,047

Changes for positions taken in prior periods
4,121

 
2,337

Decrease related to statute limitations
—

 
(312
)
Balance of unrecognized tax benefits as at June 30
46,783

 
35,133
v3.19.2
Net Loss Per Share (Tables)
 6 Months Ended
Jun. 30, 2019
Earnings Per Share [Abstract]  
Schedule of Net (Loss) Income Per Share
Net Loss Per Share
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
 
$
 
$
 
$
 
$
Net loss attributable to the shareholders of Teekay Corporation – basic and diluted
(39,485
)
 
(28,324
)
 
(123,742
)
 
(48,879
)
Weighted average number of common shares
100,783,496

 
100,434,512

 
100,652,685

 
98,892,574

Common stock and common stock equivalents
100,783,496

 
100,434,512

 
100,652,685

 
98,892,574

Loss per common share – basic and diluted
(0.39
)
 
(0.28
)
 
(1.23
)
 
(0.49
)
v3.19.2
Supplementary Cash Flow Information (Tables)
 6 Months Ended
Jun. 30, 2019
Supplemental Cash Flow Elements [Abstract]  
Schedule of Cash Flow, Supplemental Disclosures
Total cash, cash equivalents and restricted cash are as follows:
 
June 30, 2019
 
December 31, 2018
 
June 30, 2018
 
December 31, 2017
 
$
 
$
 
$
 
$
Cash and cash equivalents
235,199

 
424,169

 
454,933

 
445,452

Restricted cash – current
50,798

 
40,493

 
55,466

 
38,179

Restricted cash – non-current
36,886

 
40,977

 
34,627

 
68,543

 
322,883

 
505,639

 
545,026

 
552,174
v3.19.2
Basis of Presentation (Details)
Jun. 30, 2019
Subsidiaries  
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]  
Ownership percentage 50.00%
v3.19.2
Accounting Pronouncements (Details)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2019
USD ($)
vessel
Mar. 31, 2019
USD ($)
Jun. 30, 2018
USD ($)
Jun. 30, 2019
USD ($)
vessel
Jun. 30, 2018
USD ($)
Jan. 01, 2019
USD ($)
Dec. 31, 2018
USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Operating Lease, Liability $ 3,230     $ 3,230     $ 0
Foreign exchange (loss) gain (notes 9 and 15) (5,851)   $ 12,529 (8,481) $ 12,551    
Investment in and loans to equity-accounted investments (notes 4 and 11a) 1,011,530     1,011,530     1,193,741
Operating lease right-of-use assets (notes 2 and 6) $ 185,716     185,716     0
Scheduled repayments of long-term debt (note 8)       117,110 171,433    
Proceeds from Lease Payments       $ 6,050      
Finance Leased Assets, Number of Units | vessel 22     22      
Accumulated other comprehensive loss $ (21,143)     $ (21,143)     $ (2,273)
Accounting Standards Update 2016-02 [Member]              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Operating Lease, Liability 173,500     173,500      
Foreign exchange (loss) gain (notes 9 and 15)   $ 200          
Investment in and loans to equity-accounted investments (notes 4 and 11a) 3,000     3,000      
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets 3,000     3,000   $ 3,000  
Operating lease right-of-use assets (notes 2 and 6) 173,500     173,500   170,000  
Proceeds from Lease Payments 3,000   $ 2,800   $ 5,200    
Accounting Standards Update 2017-12 [Member]              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets           4,800  
Time-charter [Member] | Accounting Standards Update 2016-02 [Member]              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Operating lease right-of-use assets (notes 2 and 6) 12,200     12,200   13,700  
Office Building [Member] | Accounting Standards Update 2016-02 [Member]              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Operating lease right-of-use assets (notes 2 and 6) 8,500     8,500      
Time-charter [Member] | Accounting Standards Update 2016-02 [Member]              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Operating lease right-of-use assets (notes 2 and 6) 0     0   900  
Office Building [Member] | Accounting Standards Update 2016-02 [Member]              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Operating Lease, Liability $ 8,700     $ 8,700      
Accumulated Other Comprehensive Loss | Accounting Standards Update 2017-12 [Member]              
New Accounting Pronouncements or Change in Accounting Principle [Line Items]              
Accumulated other comprehensive loss           $ 4,800  
v3.19.2
Revenue (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Disaggregation of Revenue [Line Items]        
Revenues $ 457,667,000 $ 405,642,000 $ 938,880,000 $ 799,664,000
Lease revenue [Member]        
Disaggregation of Revenue [Line Items]        
Operating Leases, Income Statement, Lease Revenue 354,410,000 302,010,000 737,553,000 596,565,000
Sales-type Lease, Interest Income, Lease Receivable 12,969,000 9,954,000 25,763,000 19,914,000
Operating Lease, Variable Lease Income 13,307,000 10,169,000 25,314,000 18,677,000
Variable Lease, Payment 16,320,000 27,426,000 27,144,000 51,708,000
Revenues 397,006,000 349,559,000 815,774,000 686,864,000
Time charters        
Disaggregation of Revenue [Line Items]        
Revenues 143,100,000 124,706,000 286,316,000 250,788,000
Voyage charters        
Disaggregation of Revenue [Line Items]        
Revenues 195,663,000 156,814,000 421,240,000 300,830,000
Bareboat charters        
Disaggregation of Revenue [Line Items]        
Revenues 6,129,000 5,734,000 12,191,000 11,111,000
FPSO contracts        
Disaggregation of Revenue [Line Items]        
Revenues 57,828,000 66,429,000 107,266,000 132,399,000
Management fees and other        
Disaggregation of Revenue [Line Items]        
Revenues 54,947,000 51,959,000 111,867,000 104,536,000
Non-lease revenue        
Disaggregation of Revenue [Line Items]        
Revenues 60,661,000 56,083,000 123,106,000 112,800,000
Teekay Parent        
Disaggregation of Revenue [Line Items]        
Revenues 105,817,000 112,612,000 205,914,000 230,526,000
Operating Segments | Teekay LNG        
Disaggregation of Revenue [Line Items]        
Revenues 153,060,000 122,315,000 302,804,000 237,621,000
Operating Segments | Teekay LNG | Liquefied Gas Carriers        
Disaggregation of Revenue [Line Items]        
Revenues 150,691,000 112,172,000 297,673,000 217,221,000
Operating Segments | Teekay LNG | Liquefied Gas Carriers | Time charters        
Disaggregation of Revenue [Line Items]        
Revenues 133,684,000 96,857,000 264,459,000 190,316,000
Operating Segments | Teekay LNG | Liquefied Gas Carriers | Voyage charters        
Disaggregation of Revenue [Line Items]        
Revenues 8,858,000 6,767,000 18,018,000 10,390,000
Operating Segments | Teekay LNG | Liquefied Gas Carriers | Bareboat charters        
Disaggregation of Revenue [Line Items]        
Revenues 6,129,000 5,734,000 12,191,000 11,111,000
Operating Segments | Teekay LNG | Liquefied Gas Carriers | FPSO contracts        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating Segments | Teekay LNG | Liquefied Gas Carriers | Management fees and other        
Disaggregation of Revenue [Line Items]        
Revenues 2,020,000 2,814,000 3,005,000 5,404,000
Operating Segments | Teekay LNG | Conventional Tankers        
Disaggregation of Revenue [Line Items]        
Revenues 2,369,000 10,143,000 5,131,000 20,400,000
Operating Segments | Teekay LNG | Conventional Tankers | Time charters        
Disaggregation of Revenue [Line Items]        
Revenues 2,369,000 4,316,000 5,131,000 9,714,000
Operating Segments | Teekay LNG | Conventional Tankers | Voyage charters        
Disaggregation of Revenue [Line Items]        
Revenues 0 5,719,000 0 10,470,000
Operating Segments | Teekay LNG | Conventional Tankers | Bareboat charters        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating Segments | Teekay LNG | Conventional Tankers | FPSO contracts        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating Segments | Teekay LNG | Conventional Tankers | Management fees and other        
Disaggregation of Revenue [Line Items]        
Revenues 0 108,000 0 216,000
Operating Segments | Teekay Tankers [Member] | Conventional Tankers        
Disaggregation of Revenue [Line Items]        
Revenues 202,277,000 171,659,000 434,778,000 340,124,000
Operating Segments | Teekay Tankers [Member] | Conventional Tankers | Time charters        
Disaggregation of Revenue [Line Items]        
Revenues 1,456,000 17,384,000 4,866,000 39,494,000
Operating Segments | Teekay Tankers [Member] | Conventional Tankers | Voyage charters        
Disaggregation of Revenue [Line Items]        
Revenues 186,805,000 144,328,000 403,222,000 279,970,000
Operating Segments | Teekay Tankers [Member] | Conventional Tankers | Bareboat charters        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating Segments | Teekay Tankers [Member] | Conventional Tankers | FPSO contracts        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating Segments | Teekay Tankers [Member] | Conventional Tankers | Management fees and other        
Disaggregation of Revenue [Line Items]        
Revenues 14,016,000 9,947,000 26,690,000 20,660,000
Operating Segments | Teekay Parent        
Disaggregation of Revenue [Line Items]        
Revenues 47,989,000      
Operating Segments | Teekay Parent | Offshore Production        
Disaggregation of Revenue [Line Items]        
Revenues 57,828,000 66,429,000 107,266,000 132,399,000
Operating Segments | Teekay Parent | Offshore Production | Time charters        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating Segments | Teekay Parent | Offshore Production | Voyage charters        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating Segments | Teekay Parent | Offshore Production | Bareboat charters        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating Segments | Teekay Parent | Offshore Production | FPSO contracts        
Disaggregation of Revenue [Line Items]        
Revenues 57,828,000 66,429,000 107,266,000 132,399,000
Operating Segments | Teekay Parent | Offshore Production | Management fees and other        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Operating Segments | Teekay Parent | Teekay Parent | Time charters        
Disaggregation of Revenue [Line Items]        
Revenues 8,078,000      
Operating Segments | Teekay Parent | Teekay Parent | Voyage charters        
Disaggregation of Revenue [Line Items]        
Revenues 0      
Operating Segments | Teekay Parent | Teekay Parent | Bareboat charters        
Disaggregation of Revenue [Line Items]        
Revenues 0      
Operating Segments | Teekay Parent | Teekay Parent | FPSO contracts        
Disaggregation of Revenue [Line Items]        
Revenues 0      
Operating Segments | Teekay Parent | Teekay Parent | Management fees and other        
Disaggregation of Revenue [Line Items]        
Revenues 39,911,000      
Operating Segments | Teekay Parent | Other        
Disaggregation of Revenue [Line Items]        
Revenues   46,183,000 98,648,000 98,127,000
Operating Segments | Teekay Parent | Other | Time charters        
Disaggregation of Revenue [Line Items]        
Revenues   7,588,000 14,347,000 20,682,000
Operating Segments | Teekay Parent | Other | Voyage charters        
Disaggregation of Revenue [Line Items]        
Revenues   0 0 0
Operating Segments | Teekay Parent | Other | Bareboat charters        
Disaggregation of Revenue [Line Items]        
Revenues   0 0 0
Operating Segments | Teekay Parent | Other | FPSO contracts        
Disaggregation of Revenue [Line Items]        
Revenues   0 0 0
Operating Segments | Teekay Parent | Other | Management fees and other        
Disaggregation of Revenue [Line Items]        
Revenues   38,595,000 84,301,000 77,445,000
Intersegment Eliminations        
Disaggregation of Revenue [Line Items]        
Revenues (3,487,000) (944,000) (4,616,000) (8,607,000)
Intersegment Eliminations | Time charters        
Disaggregation of Revenue [Line Items]        
Revenues (2,487,000) (1,439,000) (2,487,000) (9,418,000)
Intersegment Eliminations | Voyage charters        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Intersegment Eliminations | Bareboat charters        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Intersegment Eliminations | FPSO contracts        
Disaggregation of Revenue [Line Items]        
Revenues 0 0 0 0
Intersegment Eliminations | Management fees and other        
Disaggregation of Revenue [Line Items]        
Revenues (1,000,000) 495,000 (2,129,000) 811,000
Intersegment Eliminations | Teekay LNG | Liquefied Gas Carriers        
Disaggregation of Revenue [Line Items]        
Revenues 2,487,000 1,439,000 2,487,000 9,418,000
Intersegment Eliminations | Teekay Tankers [Member] | Conventional Tankers        
Disaggregation of Revenue [Line Items]        
Revenues (1,000,000) 0 (2,129,000) 0
Non-lease [Member] | Management fees and other        
Disaggregation of Revenue [Line Items]        
Revenues 54,947,000 51,959,000 111,867,000 104,536,000
Non-lease [Member] | Non-lease revenue        
Disaggregation of Revenue [Line Items]        
Revenues $ 5,714,000 $ 4,124,000 $ 11,239,000 $ 8,264,000
v3.19.2
Revenue Operating Leases (Details) - USD ($)
$ in Thousands
Jun. 30, 2019
Dec. 31, 2018
Property Subject to or Available for Operating Lease [Line Items]    
Lessor, Operating Lease, Payments to be Received, Remainder of Fiscal Year $ 387,500  
Operating Leases, Future Minimum Payments Receivable, Remainder of Fiscal Year   $ 630,800
Lessor, Operating Lease, Payments to be Received, Two Years 647,400  
Lessor, Operating Lease, Payments to be Received, Three Years 533,200  
Lessor, Operating Lease, Payments to be Received, Rolling Year Four 429,700  
Lessor, Operating Lease, Payments to be Received, Five Years 319,700  
Operating Leases, Future Minimum Payments Receivable, in Two Years   524,600
Operating Leases, Future Minimum Payments Receivable, in Three Years   457,500
Operating Leases, Future Minimum Payments Receivable, in Four Years   382,000
Operating Leases, Future Minimum Payments Receivable, in Five Years   291,800
Property, Plant and Equipment, Net 5,648,259 5,517,133
Accumulated depreciation on vessels and equipment 1,294,622 1,293,447
Assets Leased to Others [Member]    
Property Subject to or Available for Operating Lease [Line Items]    
Property, Plant and Equipment, Net 3,500,000 3,400,000
Property, Plant and Equipment, Gross 4,300,000 4,300,000
Accumulated depreciation on vessels and equipment $ 900,000 $ 800,000
v3.19.2
Revenue Direct Financing Leases (Details) - USD ($)
$ in Thousands
Jun. 30, 2019
Dec. 31, 2018
Property Subject to or Available for Operating Lease [Line Items]    
Direct Financing Lease, Lease Receivable $ 865,333 $ 897,130
Residual Value of Leased Asset 291,098 291,098
Deferred Costs, Leasing, Net 312 329
Deferred Lease Income, after Accumulated Amortization 592,058 613,394
Direct Financing Lease, Net Investment in Lease 564,685 575,163
Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received, Four Years   64,200
Net Investment in Lease, Current (13,082) (12,635)
Net investment in direct financing leases – non-current (notes 3 and 6) 551,603 562,528
Teekay LNG    
Property Subject to or Available for Operating Lease [Line Items]    
Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received, Remainder of Fiscal Year 32,300  
Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received, Next Twelve Months   64,200
Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received, Two Years 64,200 64,300
Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received, Three Years 64,200 64,200
Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received, Four Years 64,200  
Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received, Five Years 64,000 64,000
Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received, Thereafter $ 576,400 $ 576,200
v3.19.2
Revenue Contract costs, assets and liabilities (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Dec. 31, 2018
Jan. 01, 2018
Contract with Customer, Asset and Liability [Abstract]            
Contract with Customer, Liability, Current $ 31,012   $ 31,012   $ 30,108  
Contract with Customer, Liability 27,200 $ 23,300 27,200 $ 23,300 $ 26,400 $ 29,500
Contract with customer, liability, revenue recognized $ 20,400 $ 20,500 $ 26,400 $ 28,900    
v3.19.2
Related Party Tranactions - Narrative (Details)
 1 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
May 08, 2019
vessel
Jan. 01, 2018
Subsidiaries
May 08, 2019
USD ($)
Sep. 30, 2018
Jun. 30, 2019
USD ($)
Jun. 30, 2018
USD ($)
May 08, 2019
USD ($)
Jun. 30, 2019
USD ($)
Jun. 30, 2018
USD ($)
Dec. 31, 2018
USD ($)
Mar. 31, 2018
USD ($)
Business Acquisition [Line Items]                      
Loss on deconsolidation of Teekay Offshore (note 4)         $ 0 $ 0   $ 0 $ 7,070,000    
Teekay Offshore [Member]                      
Business Acquisition [Line Items]                      
Due from Related Parties                   $ 83,100,000  
Due to Related Parties                   $ 59,300,000  
Revenue from Related Parties     $ 2,300,000     4,500,000 $ 7,600,000   11,100,000    
Teekay Offshore [Member] | Brookfield Business Partners L.P. [Member]                      
Business Acquisition [Line Items]                      
Percentage of ownership acquired   100.00%                  
Number of Subsidiaries | Subsidiaries   7                  
Revolving Credit Facilities                      
Business Acquisition [Line Items]                      
Credit facility, maximum borrowing capacity         886,779,169     886,779,169      
Revolving Credit Facilities | Teekay Offshore [Member]                      
Business Acquisition [Line Items]                      
Credit facility, maximum borrowing capacity                     $ 125,000,000
Revolving Credit Facilities | Teekay Offshore [Member] | Brookfield Business Partners L.P. [Member]                      
Business Acquisition [Line Items]                      
Credit facility, maximum borrowing capacity                     100,000,000
Parent Company [Member] | Revolving Credit Facilities | Teekay Offshore [Member]                      
Business Acquisition [Line Items]                      
Credit facility, maximum borrowing capacity                     $ 25,000,000
Technical Services [Member] | Teekay Offshore [Member]                      
Business Acquisition [Line Items]                      
Related Party Transaction, Expenses from Transactions with Related Party     3,300,000     6,800,000     13,300,000    
Time-Charter Hire Expense [Member] | Teekay Lng Marubeni Joint Venture [Member]                      
Business Acquisition [Line Items]                      
Additional Time Period For Fixed Rate Time Charters Contract       2 years              
Related Party Transaction, Expenses from Transactions with Related Party         3,100,000     8,700,000      
Time-Charter Hire Expense [Member] | Teekay Offshore [Member]                      
Business Acquisition [Line Items]                      
Related Party Transaction, Expenses from Transactions with Related Party     $ 6,100,000     14,000,000 $ 20,800,000   28,000,000    
Shuttle Tankers | Teekay Offshore [Member]                      
Business Acquisition [Line Items]                      
Number Of Vessels | vessel 2                    
FSO | Teekay Offshore [Member]                      
Business Acquisition [Line Items]                      
Number Of Vessels | vessel 3                    
LNG Carriers [Member] | Equity Method Investee [Member]                      
Business Acquisition [Line Items]                      
Revenue from Related Parties         $ 16,800,000 $ 13,100,000   $ 32,600,000 $ 25,700,000    
Teekay Lng Marubeni Joint Venture [Member]                      
Business Acquisition [Line Items]                      
Equity Method Investment, Ownership Percentage         52.00%     52.00%      
v3.19.2
Related Party Tranactions Related Party Transactions (Details)
 1 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
May 08, 2019
USD ($)
vessel
Jan. 01, 2018
Subsidiaries
May 31, 2019
USD ($)
May 08, 2019
USD ($)
Sep. 30, 2018
Jun. 30, 2019
USD ($)
Jun. 30, 2018
USD ($)
May 08, 2019
USD ($)
Jun. 30, 2019
USD ($)
Jun. 30, 2018
USD ($)
Dec. 31, 2018
USD ($)
Mar. 31, 2018
USD ($)
Related Party Transaction [Line Items]                        
Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest 49.00%                      
Proceeds from sale of equity-accounted investments and related assets (note 4)                 $ 100,000,000 $ 54,438,000    
Loss on deconsolidation of Teekay Offshore (note 4)           $ 0 $ 0   0 (7,070,000)    
Teekay Lng Marubeni Joint Venture [Member] | Time-Charter Hire Expense [Member]                        
Related Party Transaction [Line Items]                        
Related Party Transaction, Expenses from Transactions with Related Party           3,100,000     8,700,000      
Additional Time Period For Fixed Rate Time Charters Contract         2 years              
Technical Services [Member] | Teekay Offshore [Member]                        
Related Party Transaction [Line Items]                        
Related Party Transaction, Expenses from Transactions with Related Party               $ 9,600,000        
Teekay Offshore [Member]                        
Related Party Transaction [Line Items]                        
Revenue from Related Parties       $ 2,300,000     4,500,000 7,600,000   11,100,000    
Due from Related Parties                     $ 83,100,000  
Due to Related Parties                     $ 59,300,000  
Teekay Offshore [Member] | Technical Services [Member]                        
Related Party Transaction [Line Items]                        
Related Party Transaction, Expenses from Transactions with Related Party       3,300,000     6,800,000     13,300,000    
Teekay Offshore [Member] | Time-Charter Hire Expense [Member]                        
Related Party Transaction [Line Items]                        
Related Party Transaction, Expenses from Transactions with Related Party       6,100,000     14,000,000 20,800,000   28,000,000    
LNG Carriers [Member] | Equity Method Investee [Member]                        
Related Party Transaction [Line Items]                        
Revenue from Related Parties           $ 16,800,000 $ 13,100,000   $ 32,600,000 $ 25,700,000    
Shuttle Tankers | Teekay Offshore [Member]                        
Related Party Transaction [Line Items]                        
Number Of Vessels | vessel 2                      
FSO | Teekay Offshore [Member]                        
Related Party Transaction [Line Items]                        
Number Of Vessels | vessel 3                      
Teekay Lng Marubeni Joint Venture [Member]                        
Related Party Transaction [Line Items]                        
Equity Method Investment, Ownership Percentage           52.00%     52.00%      
Teekay Offshore [Member]                        
Related Party Transaction [Line Items]                        
Due from Affiliate, Noncurrent $ 25,000,000     $ 25,000,000       $ 25,000,000        
Proceeds from sale of equity-accounted investments and related assets (note 4) 100,000,000   $ 100,000,000                  
Equity Method Investment, Other than Temporary Impairment                 $ 64,900,000      
Gain (Loss) on Sale of Equity Investments $ 8,900,000                      
Teekay Offshore [Member] | Brookfield Business Partners L.P. [Member]                        
Related Party Transaction [Line Items]                        
Percentage of ownership acquired   100.00%                    
Number of Subsidiaries | Subsidiaries   7                    
Revolving Credit Facilities                        
Related Party Transaction [Line Items]                        
Credit facility, maximum borrowing capacity           $ 886,779,169     $ 886,779,169      
Revolving Credit Facilities | Teekay Offshore [Member]                        
Related Party Transaction [Line Items]                        
Credit facility, maximum borrowing capacity                       $ 125,000,000
Revolving Credit Facilities | Teekay Offshore [Member] | Brookfield Business Partners L.P. [Member]                        
Related Party Transaction [Line Items]                        
Credit facility, maximum borrowing capacity                       100,000,000
Parent Company [Member] | Revolving Credit Facilities | Teekay Offshore [Member]                        
Related Party Transaction [Line Items]                        
Credit facility, maximum borrowing capacity                       $ 25,000,000
v3.19.2
Segment Reporting - Narrative (Detail)
$ in Thousands
 1 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
May 08, 2019
USD ($)
Jun. 30, 2019
USD ($)
Jun. 30, 2018
USD ($)
May 08, 2019
USD ($)
Jun. 30, 2019
USD ($)
subsidiary
segment
Jun. 30, 2018
USD ($)
Segment Reporting Information [Line Items]            
Number of reportable segments | segment         3  
Number of lines of businesses, more than | segment         1  
Equity (loss) income (note 4) | $   $ (6,284) $ 837   $ (67,937) $ 27,954
Teekay Offshore [Member]            
Segment Reporting Information [Line Items]            
Equity (loss) income (note 4) | $ $ 0   $ (9,300) $ (3,000)   $ (8,700)
Subsidiaries            
Segment Reporting Information [Line Items]            
Number of Subsidiaries | subsidiary         2  
v3.19.2
Segment Reporting - Revenues (Detail) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Segment Reporting Information [Line Items]        
Revenues $ 457,667,000 $ 405,642,000 $ 938,880,000 $ 799,664,000
Intersegment Eliminations        
Segment Reporting Information [Line Items]        
Revenues (3,487,000) (944,000) (4,616,000) (8,607,000)
Teekay LNG | Operating Segments        
Segment Reporting Information [Line Items]        
Revenues 153,060,000 122,315,000 302,804,000 237,621,000
Teekay LNG | Liquefied Gas Carriers | Operating Segments        
Segment Reporting Information [Line Items]        
Revenues 150,691,000 112,172,000 297,673,000 217,221,000
Teekay LNG | Liquefied Gas Carriers | Intersegment Eliminations        
Segment Reporting Information [Line Items]        
Revenues 2,487,000 1,439,000 2,487,000 9,418,000
Teekay LNG | Conventional Tankers | Operating Segments        
Segment Reporting Information [Line Items]        
Revenues 2,369,000 10,143,000 5,131,000 20,400,000
Teekay Tankers [Member] | Conventional Tankers | Operating Segments        
Segment Reporting Information [Line Items]        
Revenues 202,277,000 171,659,000 434,778,000 340,124,000
Teekay Tankers [Member] | Conventional Tankers | Intersegment Eliminations        
Segment Reporting Information [Line Items]        
Revenues (1,000,000) 0 (2,129,000) 0
Teekay Parent        
Segment Reporting Information [Line Items]        
Revenues 105,817,000 112,612,000 205,914,000 230,526,000
Teekay Parent | Operating Segments        
Segment Reporting Information [Line Items]        
Revenues 47,989,000      
Teekay Parent | Offshore Production | Operating Segments        
Segment Reporting Information [Line Items]        
Revenues 57,828,000 66,429,000 107,266,000 132,399,000
Teekay Parent | Corporate and Other [Member]        
Segment Reporting Information [Line Items]        
Revenues 47,989,000 46,183,000 98,648,000 98,127,000
Teekay Corporation [Member] | Intersegment Eliminations        
Segment Reporting Information [Line Items]        
Revenues $ 3,487,000 $ 1,439,000 $ 4,616,000 $ 9,418,000
v3.19.2
Segment Reporting - Operating Income (Loss) (Detail) - USD ($)
$ in Thousands
 1 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended
May 08, 2019
May 08, 2019
Jun. 30, 2019
Jun. 30, 2018
May 08, 2019
Jun. 30, 2019
Jun. 30, 2018
Segment Reporting Information [Line Items]              
Equity (loss) income (note 4)     $ (6,284) $ 837   $ (67,937) $ 27,954
Operating Income (Loss)     71,463 1,921   155,695 20,426
Teekay LNG | Operating Segments              
Segment Reporting Information [Line Items]              
Operating Income (Loss)     74,677 10,505   144,038 35,647
Teekay LNG | Liquefied Gas Carriers | Operating Segments              
Segment Reporting Information [Line Items]              
Operating Income (Loss)     74,244 9,445   144,687 53,990
Teekay LNG | Conventional Tankers | Operating Segments              
Segment Reporting Information [Line Items]              
Operating Income (Loss)     433 1,060   (649) (18,343)
Teekay Tankers [Member] | Conventional Tankers | Operating Segments              
Segment Reporting Information [Line Items]              
Operating Income (Loss)     5,051 (13,415)   37,148 (21,836)
Teekay Parent              
Segment Reporting Information [Line Items]              
Operating Income (Loss)     (8,265) 4,831   (25,491) 6,615
Teekay Parent | Offshore Production | Operating Segments              
Segment Reporting Information [Line Items]              
Operating Income (Loss)     (5,987) 5,541   (18,544) 12,423
Teekay Parent | Corporate and Other [Member]              
Segment Reporting Information [Line Items]              
Operating Income (Loss)     $ (2,278) (710)   (6,947) (5,808)
Teekay Offshore [Member]              
Segment Reporting Information [Line Items]              
Gain (Loss) on Sale of Equity Investments $ 8,900            
Equity Method Investment, Other than Temporary Impairment           $ 64,900  
Teekay Offshore [Member]              
Segment Reporting Information [Line Items]              
Equity (loss) income (note 4)   $ 0   $ (9,300) $ (3,000)   $ (8,700)
v3.19.2
Segment Reporting - Reconciliation of Total Segment Assets (Detail) - USD ($)
$ in Thousands
Jun. 30, 2019
Dec. 31, 2018
Segment Reporting Information [Line Items]    
Total assets $ 8,126,018 $ 8,391,670
Segment Reconciling Items | Cash and cash equivalents    
Segment Reporting Information [Line Items]    
Total assets 235,199 424,169
Segment Reconciling Items | Other assets not allocated    
Segment Reporting Information [Line Items]    
Total assets 130,348 70,153
Eliminations    
Segment Reporting Information [Line Items]    
Total assets (32,983) (19,414)
Teekay LNG | Liquefied Gas Carriers | Operating Segments    
Segment Reporting Information [Line Items]    
Total assets 5,207,739 5,188,088
Teekay LNG | Conventional Tankers | Operating Segments    
Segment Reporting Information [Line Items]    
Total assets 13,748 39,450
Teekay Tankers [Member] | Conventional Tankers | Operating Segments    
Segment Reporting Information [Line Items]    
Total assets 2,118,499 2,106,169
Teekay Parent | Corporate, Non-Segment    
Segment Reporting Information [Line Items]    
Total assets 91,683 25,224
Teekay Parent | Conventional Tankers | Operating Segments    
Segment Reporting Information [Line Items]    
Total assets 0 13,056
Teekay Parent | Offshore Production | Operating Segments    
Segment Reporting Information [Line Items]    
Total assets 361,785 311,550
Teekay Offshore [Member] | Offshore Production | Operating Segments    
Segment Reporting Information [Line Items]    
Total assets $ 0 $ 233,225
v3.19.2
Leases Obligations relating to Finance Leases (Details)
 1 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended 35 Months Ended 36 Months Ended
May 31, 2019
USD ($)
Jan. 31, 2019
Nov. 30, 2018
USD ($)
vessel
Sep. 30, 2018
USD ($)
Jul. 31, 2017
USD ($)
Jun. 30, 2019
USD ($)
vessel
Jun. 30, 2019
USD ($)
vessel
lease
Jun. 30, 2018
USD ($)
Dec. 31, 2018
USD ($)
vessel
lease
Dec. 31, 2018
USD ($)
vessel
Jan. 31, 2019
company
lease
Jul. 01, 2019
vessel
Nov. 01, 2018
vessel
Obligations relating to Finance Leases [Line Items]                          
Finance Lease, Liability           $ 1,826,732,000 $ 1,826,732,000   $ 1,673,845,000 $ 1,673,845,000      
Proceeds from financing related to sale-leaseback of vessels             $ 222,400,000 $ 243,812,000          
Finance Leased Assets, Number of Units | vessel           22 22            
Current obligations related to finance leases (note 6)           $ (89,922,000) $ (89,922,000)   (102,115,000) (102,115,000)      
Long-term obligations related to finance leases (note 6)           $ 1,736,810,000 $ 1,736,810,000   $ 1,571,730,000 $ 1,571,730,000      
Teekay LNG                          
Obligations relating to Finance Leases [Line Items]                          
Sale Leaseback Transaction, Lease Terms   P15Y                      
Lessee, Finance Lease, Option to Extend   P5Y                      
Teekay Tankers [Member]                          
Obligations relating to Finance Leases [Line Items]                          
Finance Lease, Weighted Average Discount Rate, Percent           7.70% 7.70%   7.50% 7.50%      
Number Of Vessels | vessel                 6        
Suezmax Tankers [Member] | Teekay LNG                          
Obligations relating to Finance Leases [Line Items]                          
Finance Lease, Liability, Payment, Due                 $ 24,200,000 $ 24,200,000      
Lessee, Operating Lease, Liability, Undiscounted Excess Amount           $ 200,000 $ 200,000            
LNG Carriers [Member]                          
Obligations relating to Finance Leases [Line Items]                          
Sale Leaseback Transaction, Imputed Interest Rate                     5.20%    
Finance Lease Obligations [Member] | Teekay Tankers [Member]                          
Obligations relating to Finance Leases [Line Items]                          
Number of Lessors | vessel             16            
Actual Hull Coverage Ratio           133.00% 133.00%   122.00% 122.00%      
Debt Covenant Minimum Hull Coverage Ratio             100.00%            
Bareboat charters | Teekay Tankers [Member]                          
Obligations relating to Finance Leases [Line Items]                          
Debt Covenant Minimum Free Liquidity And Undrawn Revolving Credit Line           $ 35,000,000 $ 35,000,000            
Debt Covenant Minimum Free Liquidity And Undrawn Revolving Credit Line As Percentage Of Debt           5.00% 5.00%            
May 2019 Sale Leaseback [Member] | Teekay Tankers [Member]                          
Obligations relating to Finance Leases [Line Items]                          
Proceeds from financing related to sale-leaseback of vessels $ 63,700,000                        
Finance Leased Assets, Number of Units 0                        
November 2018 Sale-leaseback Transaction [Member] | Finance Lease Obligations [Member] | Teekay Tankers [Member]                          
Obligations relating to Finance Leases [Line Items]                          
Proceeds from financing related to sale-leaseback of vessels     $ 84,700,000                    
Finance Leased Assets, Number of Units | vessel     4                    
Aframax Tanker [Member] | Finance Lease Obligations [Member] | Teekay Tankers [Member]                          
Obligations relating to Finance Leases [Line Items]                          
Proceeds from financing related to sale-leaseback of vessels       $ 156,600,000                  
Suezmax Tanker Sale Leaseback [Member] | Teekay Tankers [Member]                          
Obligations relating to Finance Leases [Line Items]                          
Proceeds from financing related to sale-leaseback of vessels         $ 153,000,000                
July 2017 Sale Leaseback [Member] | Finance Lease Obligations [Member] | Teekay Tankers [Member]                          
Obligations relating to Finance Leases [Line Items]                          
Period Required to Maintain 90% Hull Coverage Ratio                 3 years        
July 2017 Sale Leaseback [Member] | Bareboat charters | Teekay Tankers [Member]                          
Obligations relating to Finance Leases [Line Items]                          
Number Of Vessels | vessel                 4        
Debt Covenant Minimum Hull Coverage Ratio, Years 1, 2 and 3             90.00%            
Minimum [Member] | Teekay Tankers [Member]                          
Obligations relating to Finance Leases [Line Items]                          
Sale Leaseback Transaction, Lease Terms         P9Y                
Minimum [Member] | LNG Carriers [Member]                          
Obligations relating to Finance Leases [Line Items]                          
Sale Leaseback Transaction, Lease Terms                     P10Y    
Maximum | Teekay Tankers [Member]                          
Obligations relating to Finance Leases [Line Items]                          
Sale Leaseback Transaction, Lease Terms         P12Y                
Maximum | LNG Carriers [Member]                          
Obligations relating to Finance Leases [Line Items]                          
Sale Leaseback Transaction, Lease Terms                     P15Y    
Vessels Four [Member] | Finance Lease Obligations [Member] | Teekay Tankers [Member]                          
Obligations relating to Finance Leases [Line Items]                          
Finance Leased Assets, Number of Units | vessel           4 4            
Suezmax, Aframax and LR2 Vessels [Member] | Teekay Tankers [Member]                          
Obligations relating to Finance Leases [Line Items]                          
Debt Covenant Minimum Hull Coverage Ratio, Year 2             78.00%            
Debt Covenant Minimum Hull Coverage Ratio, Years 3 and 4             80.00%            
Finance Lease, Liability, Payment, Due           $ 632,000,000 $ 632,000,000   $ 557,100,000 $ 557,100,000      
Debt Covenant Minimum Hull Coverage Ratio, Thereafter             90.00%            
Suezmax, Aframax and LR2 Vessels [Member] | Finance Lease Obligations [Member] | Teekay Tankers [Member]                          
Obligations relating to Finance Leases [Line Items]                          
Lessee, Operating Lease, Liability, Undiscounted Excess Amount           $ 203,200,000 $ 203,200,000   $ 181,800,000 $ 181,800,000      
Actual Hull Coverage Ratio                 96.50% 96.50%      
Debt Covenant Minimum Hull Coverage Ratio           75.00%              
Aframax Tanker [Member] | Teekay Tankers [Member]                          
Obligations relating to Finance Leases [Line Items]                          
Debt Covenant Minimum Hull Coverage Ratio, Year 1             75.00%            
Debt Covenant Minimum Hull Coverage Ratio, Year 2             78.00%            
Debt Covenant Minimum Hull Coverage Ratio, Years 3 and 4             80.00%            
Debt Covenant Minimum Hull Coverage Ratio, Thereafter             90.00%            
Actual Hull Coverage Ratio           102.00% 102.00%   91.00% 91.00%      
Aframax Tanker [Member] | Finance Lease Obligations [Member] | Teekay Tankers [Member]                          
Obligations relating to Finance Leases [Line Items]                          
Number Of Vessels Obligated to Purchase           $ 6 $ 6            
Aframax Tanker [Member] | November 2018 Sale-leaseback Transaction [Member] | Teekay Tankers [Member]                          
Obligations relating to Finance Leases [Line Items]                          
Finance Leased Assets, Number of Units | vessel                         2
Aframax Tanker [Member] | Aframax Tanker [Member] | Finance Lease Obligations [Member] | Teekay Tankers [Member]                          
Obligations relating to Finance Leases [Line Items]                          
Finance Leased Assets, Number of Units | vessel     6                    
Suezmax Tankers [Member] | Teekay LNG                          
Obligations relating to Finance Leases [Line Items]                          
Finance Leased Assets, Number of Units | vessel                 1 1      
Suezmax Tankers [Member] | Finance Lease Obligations [Member] | Teekay Tankers [Member]                          
Obligations relating to Finance Leases [Line Items]                          
Number Of Vessels Obligated to Purchase           $ 2 $ 2            
Debt Covenant Minimum Hull Coverage Ratio, Thereafter           100.00%              
Actual Hull Coverage Ratio           112.00% 112.00%   101.00% 101.00%      
Suezmax Tankers [Member] | November 2018 Sale-leaseback Transaction [Member] | Teekay Tankers [Member]                          
Obligations relating to Finance Leases [Line Items]                          
Finance Leased Assets, Number of Units | vessel                         1
Suezmax Tankers [Member] | Suezmax Tanker Sale Leaseback [Member] | Option to Purchase July 2020-2029 [Member]                          
Obligations relating to Finance Leases [Line Items]                          
Number Of Vessels | vessel             16            
Suezmax Tankers [Member] | Suezmax Tanker Sale Leaseback [Member] | Finance Lease Obligations [Member] | Teekay Tankers [Member]                          
Obligations relating to Finance Leases [Line Items]                          
Finance Leased Assets, Number of Units | vessel                       4  
LR2 Tankers [Member] | Teekay Tankers [Member]                          
Obligations relating to Finance Leases [Line Items]                          
Number Of Vessels | vessel             2            
LR2 Tankers [Member] | November 2018 Sale-leaseback Transaction [Member] | Teekay Tankers [Member]                          
Obligations relating to Finance Leases [Line Items]                          
Finance Leased Assets, Number of Units | vessel                         1
Vessel Two [Member] | Finance Lease Obligations [Member] | Teekay Tankers [Member]                          
Obligations relating to Finance Leases [Line Items]                          
Finance Leased Assets, Number of Units | vessel           2 2            
LNG Carriers [Member]                          
Obligations relating to Finance Leases [Line Items]                          
Finance Lease, Liability, Payments, Due Next Twelve Months           $ 67,962,000 $ 67,962,000   $ 119,517,000 $ 119,517,000      
Finance Lease, Liability, Payments, Due Year Two           134,915,000 134,915,000   118,685,000 118,685,000      
Finance Lease, Liability, Payments, Due Year Three           133,542,000 133,542,000   117,772,000 117,772,000      
Finance Lease, Liability, Payments, Due Year Four           132,312,000 132,312,000   116,978,000 116,978,000      
Finance Lease, Liability, Payments, Due Year Five           131,237,000 131,237,000   116,338,000 116,338,000      
Finance Lease, Liability, Payments, Due after Year Five           1,295,440,000 1,295,440,000   1,120,670,000 1,120,670,000      
LNG Carriers [Member] | Teekay LNG                          
Obligations relating to Finance Leases [Line Items]                          
Finance Lease, Liability           1,399,796,000 $ 1,399,796,000   $ 1,274,569,000 $ 1,274,569,000      
Number Of Vessels             9   8 8      
Number of Lessors | company                     9    
Finance Lease, Liability, Payment, Due           1,900,000,000 $ 1,900,000,000   $ 1,700,000,000 $ 1,700,000,000      
Lessee, Operating Lease, Liability, Undiscounted Excess Amount           495,600,000 495,600,000   435,300,000 435,300,000      
Suezmax, Aframax and LR2 Vessels [Member] | Teekay Tankers [Member]                          
Obligations relating to Finance Leases [Line Items]                          
Finance Lease, Liability, Payments, Due Next Twelve Months           30,336,000 30,336,000   47,962,000 47,962,000      
Finance Lease, Liability, Payments, Due Year Two           56,364,000 56,364,000   47,373,000 47,373,000      
Finance Lease, Liability, Payments, Due Year Three           56,202,000 56,202,000   47,237,000 47,237,000      
Finance Lease, Liability, Payments, Due Year Four           56,193,000 56,193,000   47,230,000 47,230,000      
Finance Lease, Liability, Payments, Due Year Five           56,184,000 56,184,000   47,222,000 47,222,000      
Finance Lease, Liability, Payments, Due after Year Five           376,750,000 376,750,000   320,064,000 320,064,000      
Suezmax Tankers [Member] | Teekay LNG                          
Obligations relating to Finance Leases [Line Items]                          
Finance Lease, Liability           0 0   23,987,000 23,987,000      
Suezmax Tankers [Member] | Teekay Tankers [Member]                          
Obligations relating to Finance Leases [Line Items]                          
Finance Lease, Liability           222,859,000 222,859,000   165,145,000 165,145,000      
Aframax Tanker [Member] | Teekay Tankers [Member]                          
Obligations relating to Finance Leases [Line Items]                          
Finance Lease, Liability           178,518,000 178,518,000   184,021,000 184,021,000      
LR2 Tankers [Member] | Teekay Tankers [Member]                          
Obligations relating to Finance Leases [Line Items]                          
Finance Lease, Liability           $ 25,559,000 $ 25,559,000   $ 26,123,000 $ 26,123,000      
Variable Interest Entity, Primary Beneficiary [Member] | Teekay LNG                          
Obligations relating to Finance Leases [Line Items]                          
Number of Lessors | lease                     8    
Variable Interest Entity, Primary Beneficiary [Member] | Suezmax, Aframax and LR2 Vessels [Member] | Finance Lease Obligations [Member] | Teekay Tankers [Member]                          
Obligations relating to Finance Leases [Line Items]                          
Number of Lessors | vessel             14            
v3.19.2
Leases Obligations relating to Operating leases (Details)
$ in Thousands
 3 Months Ended 6 Months Ended 12 Months Ended 35 Months Ended
Jun. 30, 2019
USD ($)
Jun. 30, 2018
USD ($)
Jun. 30, 2019
USD ($)
vessel
lease
Jun. 30, 2018
USD ($)
Dec. 31, 2018
USD ($)
vessel
lease
Dec. 31, 2018
USD ($)
vessel
Operating Leased Assets [Line Items]            
Current portion of operating lease liabilities (notes 2 and 6) $ (59,554)   $ (59,554)   $ 0 $ 0
Operating Leases, Rent Expense 28,817 $ 20,648 58,655 $ 40,059    
Operating Leases, Future Minimum Payments Receivable, Remainder of Fiscal Year         630,800 630,800
Operating Leases, Future Minimum Payments Receivable, in Two Years         524,600 524,600
Operating Leases, Future Minimum Payments Receivable, in Three Years         457,500 457,500
Operating Leases, Future Minimum Payments Receivable, in Four Years         382,000 382,000
Operating Leases, Future Minimum Payments Receivable, in Five Years         291,800 291,800
Operating lease right-of-use assets (notes 2 and 6) 185,716   185,716   0 0
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year 53,510   53,510      
Lessee, Operating Lease, Liability, Payments, Due Year Two 99,021   99,021      
Lessee, Operating Lease, Liability, Payments, Due Year Three 76,585   76,585      
Lessee, Operating Lease, Liability, Payments, Due Year Four 31,167   31,167      
Lessee, Operating Lease, Liability, Payments, Due Year Five 9,227   9,227      
Lessee, Operating Lease, Liability, Payments, Due after Year Five 5,712   5,712      
Lessee, Operating Lease, Liability, Payments, Due 275,222   275,222      
Operating Lease, Liability 3,230   3,230   0 0
Long-term operating lease liabilities (notes 2 and 6) 113,922   113,922   $ 0 0
Lease [Member]            
Operating Leased Assets [Line Items]            
Current portion of operating lease liabilities (notes 2 and 6) (59,554)   (59,554)      
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year 36,398   36,398      
Lessee, Operating Lease, Liability, Payments, Due Year Two 65,362   65,362      
Lessee, Operating Lease, Liability, Payments, Due Year Three 51,672   51,672      
Lessee, Operating Lease, Liability, Payments, Due Year Four 22,978   22,978      
Lessee, Operating Lease, Liability, Payments, Due Year Five 9,227   9,227      
Lessee, Operating Lease, Liability, Payments, Due after Year Five 5,712   5,712      
Lessee, Operating Lease, Liability, Payments, Due 191,349   191,349      
Lessee, Operating Lease, Liability, Undiscounted Excess Amount (17,873)   (17,873)      
Operating Lease, Liability 173,476   173,476      
Long-term operating lease liabilities (notes 2 and 6) 113,922   113,922      
Non-lease [Member]            
Operating Leased Assets [Line Items]            
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year 17,112   17,112      
Lessee, Operating Lease, Liability, Payments, Due Year Two 33,659   33,659      
Lessee, Operating Lease, Liability, Payments, Due Year Three 24,913   24,913      
Lessee, Operating Lease, Liability, Payments, Due Year Four 8,189   8,189      
Lessee, Operating Lease, Liability, Payments, Due Year Five 0   0      
Lessee, Operating Lease, Liability, Payments, Due after Year Five 0   0      
Lessee, Operating Lease, Liability, Payments, Due $ 83,873   $ 83,873      
Teekay Tankers [Member]            
Operating Leased Assets [Line Items]            
Number Of Vessels | vessel         6  
Lessor, Operating Lease, Term of Contract 24 months   24 months      
Lessee, Operating Sublease, Option to Extend     one-year      
Teekay Tankers [Member] | Time-charter [Member]            
Operating Leased Assets [Line Items]            
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year $ 6,000   $ 6,000      
Lessee, Operating Lease, Liability, Payments, Due Year Two $ 600   $ 600      
Teekay Corporation [Member]            
Operating Leased Assets [Line Items]            
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year         $ 116,300 116,300
Operating Leases, Future Minimum Payments, Due in Two Years         90,400 90,400
Lessee, Operating Lease, Liability, Payments, Due Year Three         53,400 53,400
Lessee, Operating Lease, Liability, Payments, Due Year Four         9,100 9,100
Lessee, Operating Lease, Liability, Payments, Due Year Five         9,100 9,100
Lessee, Operating Lease, Liability, Payments, Due after Year Five         $ 5,600 $ 5,600
Operating Lease, Weighted Average Remaining Lease Term 3 years 11 days   3 years 11 days      
Operating Lease, Weighted Average Discount Rate, Percent 6.20%   6.20%      
LR2 Tankers [Member] | Teekay Tankers [Member]            
Operating Leased Assets [Line Items]            
Number Of Vessels | vessel     2      
Operating lease right-of-use assets (notes 2 and 6) $ 14,700   $ 14,700      
Time-Charter Hire Expense [Member]            
Operating Leased Assets [Line Items]            
Short-term Lease, Cost 4,900   $ 9,200      
LNG Carriers [Member] | Teekay LNG            
Operating Leased Assets [Line Items]            
Number Of Vessels     9   8 8
Time Charter and Bare-boat Expenses [Member]            
Operating Leased Assets [Line Items]            
Operating Leases, Rent Expense 23,700   $ 48,800      
Time Charter and Bare-boat Expenses [Member] | Lease Component [Member]            
Operating Leased Assets [Line Items]            
Operating Leases, Rent Expense 16,400   33,700      
Time Charter and Bare-boat Expenses [Member] | Non-lease [Member]            
Operating Leased Assets [Line Items]            
Operating Leases, Rent Expense $ 7,300   $ 15,100      
v3.19.2
Write-down and Loss on Sales of Vessels (Detail)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2019
USD ($)
Dec. 31, 2018
USD ($)
Jun. 30, 2018
USD ($)
vessel
Jun. 30, 2019
USD ($)
vessel
Jun. 30, 2018
USD ($)
vessel
Long Lived Assets Held-for-sale [Line Items]          
Write-down and loss on sales of vessels (note 7) $ 0   $ (32,830) $ (3,328) $ (51,492)
Teekay Parent | FPSO contracts          
Long Lived Assets Held-for-sale [Line Items]          
Number Of Vessels Impaired | vessel       1  
LNG Segment [Member] | Liquefied Gas Carriers          
Long Lived Assets Held-for-sale [Line Items]          
Number Of Vessels Impaired     4   4
LNG Segment [Member] | Handymax          
Long Lived Assets Held-for-sale [Line Items]          
Number Of Vessels Impaired | vessel         1
LNG Segment [Member] | Suezmax Tankers          
Long Lived Assets Held-for-sale [Line Items]          
Number Of Vessels Impaired | vessel         2
Other          
Long Lived Assets Held-for-sale [Line Items]          
Write-Down and Loss on Sales of Vessels 0   $ 170 $ 0 $ 170
Teekay LNG | Conventional Tankers | European Spirit [Member]          
Long Lived Assets Held-for-sale [Line Items]          
Proceeds from Sale of Property, Plant, and Equipment   $ 15,700      
Teekay LNG | Conventional Tankers | Handymax          
Long Lived Assets Held-for-sale [Line Items]          
Asset Impairment Charges       0 13,000
Teekay LNG | Conventional Tankers | European Spirit and African Spirit          
Long Lived Assets Held-for-sale [Line Items]          
Asset Impairment Charges       0 5,662
Teekay LNG | Liquefied Gas Segment | LNG Carriers [Member]          
Long Lived Assets Held-for-sale [Line Items]          
Asset Impairment Charges       0 33,000
Teekay LNG | Conventional Tanker Segment [Member] | African Spirit [Member]          
Long Lived Assets Held-for-sale [Line Items]          
Proceeds from Sale of Property, Plant, and Equipment   $ 12,800      
Liquefied Gas Carriers | LNG Segment [Member]          
Long Lived Assets Held-for-sale [Line Items]          
Asset Impairment Charges $ 0   $ 33,000    
Teekay Parent | FPSO contracts          
Long Lived Assets Held-for-sale [Line Items]          
Asset Impairment Charges       $ 3,328 $ 0
v3.19.2
Accounts Payable, Accrued Liabilities and Other (Details) - USD ($)
$ in Thousands
Jun. 30, 2019
Dec. 31, 2018
Schedule of Accounts Payable, Accrued Liabilities and Other [Line Items]    
Accounts Payable $ 117,408 $ 31,201
Voyage And Vessel Accrued Liabilities Current 113,748 98,135
Interest Payable, Current 31,582 47,731
Employee-related Liabilities, Current 31,623 34,849
Other Accrued Liabilities 6,486 6,426
Short-term Debt 15,000 0
Contract with Customer, Liability, Current 31,012 30,108
Liabilities of Business Transferred under Contractual Arrangement, Current 5,933 5,930
Operating Lease, Liability 3,230 0
Accounts payable, accrued liabilities and other (notes 8, 13 and 15) $ 356,022 $ 254,380
v3.19.2
Long-Term Debt - Summary of Long-Term Debt (Detail)
$ / shares in Units, € in Millions, shares in Millions
 1 Months Ended 6 Months Ended 12 Months Ended
Jan. 31, 2018
USD ($)
Jan. 27, 2010
USD ($)
Nov. 30, 2015
USD ($)
Jun. 30, 2019
USD ($)
subsidiary
vessel
SecurityLoan
credit_facility
term_loan
$ / shares
shares
Dec. 31, 2018
USD ($)
vessel
Jun. 30, 2019
NOK (kr)
vessel
SecurityLoan
term_loan
shares
Jun. 30, 2019
EUR (€)
vessel
SecurityLoan
term_loan
shares
May 31, 2019
USD ($)
Dec. 31, 2018
EUR (€)
vessel
Jan. 26, 2018
USD ($)
$ / shares
May 31, 2015
NOK (kr)
Debt Instrument [Line Items]                      
Long-term Debt, Weighted Average Interest Rate, at Point in Time       4.90% 5.10% 4.90% 4.90%   5.10%    
Total principal       $ 2,891,199,000 $ 3,363,127,000            
Less unamortized discount and debt issuance costs       (47,874,000) (43,604,000)            
Total debt       2,843,325,000 3,319,523,000            
Less current portion       (540,440,000) (242,137,000)            
Long-term portion       2,302,885,000 3,077,386,000            
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year       120,100,000              
Long-term Debt, Maturities, Repayments of Principal in Year Two       703,800,000              
Long-term Debt, Maturities, Repayments of Principal in Year Three       826,800,000              
Long-term Debt, Maturities, Repayments of Principal in Year Four       373,100,000              
Long-term Debt, Maturities, Repayments of Principal in Year Five       339,000,000              
Long-term Debt, Maturities, Repayments of Principal after Year Five       $ 528,400,000              
Number Of Loan Agreements | SecurityLoan       5   5 5        
Secured Debt [Member]                      
Debt Instrument [Line Items]                      
Total principal       $ 1,400,000,000 $ 1,500,000,000            
Number Of Debt Instruments | term_loan       10              
Number Of Debt Instruments With Balloon Or Bullet Payments | term_loan       8   8 8        
Number Of Vessels Held As Collateral | vessel       24 24 24 24   24    
Senior Notes (8.5%) due January 15, 2020                      
Debt Instrument [Line Items]                      
Debt Instrument, Redemption Price, Percentage       100.00%              
Percentage Of Par At Which Notes Sold   99.20% 99.01%                
Long-term debt, percentage bearing fixed interest, percentage rate   8.50% 8.50% 8.50%   8.50% 8.50%        
Total principal       $ 36,712,000 $ 508,577,000            
Debt Instrument, Interest Rate, Effective Percentage       8.67%   8.67% 8.67%        
Debt instrument, principal amount   $ 450,000,000 $ 200,000,000                
Senior Notes due 2022 [Member]                      
Debt Instrument [Line Items]                      
Long-term debt, percentage bearing fixed interest, percentage rate       9.25%   9.25% 9.25% 9.25%      
Total principal       $ 250,000,000 0            
Debt instrument, principal amount               $ 250,000,000      
Convertible Senior Notes due 2023 [Member]                      
Debt Instrument [Line Items]                      
Long-term debt, percentage bearing fixed interest, percentage rate       5.00%   5.00% 5.00%        
Total principal       $ 125,000,000 125,000,000            
Norwegian Krone-denominated Bonds due through August 2023                      
Debt Instrument [Line Items]                      
Total principal       357,454,000 352,973,000            
U.S. Dollar-denominated Term Loans due through 2030                      
Debt Instrument [Line Items]                      
Total principal       1,437,688,000 1,536,499,000            
Euro-denominated Term Loans due through 2024                      
Debt Instrument [Line Items]                      
Total principal       180,115,000 193,781,000            
Other U.S. Dollar-denominated loan                      
Debt Instrument [Line Items]                      
Total principal       3,300,000 3,300,000            
Revolving Credit Facilities                      
Debt Instrument [Line Items]                      
Credit facility, maximum borrowing capacity       886,779,169              
Line of Credit Facility, Remaining Borrowing Capacity       $ 400,000,000              
Number Of Credit Facilities | term_loan       5   5 5        
Line Of Credit Reduction Of Available Borrowing Capacity In Year Four       $ 167,800,000              
Total principal       500,930,000 642,997,000            
Line Of Credit Reduction Of Available Borrowing Capacity Remainder Of Fiscal Year       17,400,000              
Line Of Credit Reduction Of Available Borrowing Capacity In Year Two       372,400,000              
Line Of Credit Reduction Of Available Borrowing Capacity In Year Three       $ 329,200,000              
Debt Instrument, Collateral, Number of Vessels | vessel       36   36 36        
Revolving Credit Facilities | Secured Debt [Member]                      
Debt Instrument [Line Items]                      
Credit facility, maximum borrowing capacity       $ 150,000,000.0              
Remaining Term Loans [Member] | Secured Debt [Member]                      
Debt Instrument [Line Items]                      
Debt Instrument, Interest Rate, Stated Percentage       4.49%   4.49% 4.49%        
Remaining Secured Debt [Member] | Secured Debt [Member]                      
Debt Instrument [Line Items]                      
Number Of Debt Instruments | credit_facility       2              
Term Loan Two [Member]                      
Debt Instrument [Line Items]                      
Minimum Level Of Free Cash Maintained Per Loan Agreements       $ 50,000,000              
Term Loan One [Member]                      
Debt Instrument [Line Items]                      
Minimum Level Of Free Cash Maintained Per Loan Agreements       $ 100,000,000              
Convertible Senior Notes due 2023 [Member] | Convertible Debt [Member]                      
Debt Instrument [Line Items]                      
Debt Instrument, Convertible, Conversion Ratio 85.4701                    
Debt Instrument, Convertible, If-converted Value in Excess of Principal $ 1,000                    
Debt Instrument, Convertible, Conversion Price | $ / shares                   $ 11.70  
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger 20.00%                    
Sale of Stock, Price Per Share | $ / shares                   9.75  
Common Stock | Convertible Senior Notes due 2023 [Member] | Convertible Debt [Member]                      
Debt Instrument [Line Items]                      
Dividends payable, amount per share (in USD per share) | $ / shares                   $ 0.055  
Minimum [Member]                      
Debt Instrument [Line Items]                      
Vessel Market Value To Loan Ratio       135.00%   135.00% 135.00%        
Vessel Market Value to Loan Required Ratio       115.00%   115.00% 115.00%        
Undrawn Revolving Credit Facilities Time To Maturity       6 months              
Minimum [Member] | Revolving Credit Facilities                      
Debt Instrument [Line Items]                      
Debt Instrument, Basis Spread on Variable Rate       1.40%              
Minimum [Member] | Term Loan One [Member]                      
Debt Instrument [Line Items]                      
Free Liquidity And Undrawn Revolving Credit Line As Percentage Of Debt       7.50%   7.50% 7.50%        
Maximum                      
Debt Instrument [Line Items]                      
Vessel Market Value To Loan Ratio       511.00%   511.00% 511.00%        
Vessel Market Value to Loan Required Ratio       135.00%   135.00% 135.00%        
Maximum | Revolving Credit Facilities                      
Debt Instrument [Line Items]                      
Debt Instrument, Basis Spread on Variable Rate       3.95%              
Teekay LNG                      
Debt Instrument [Line Items]                      
Minimum Level Of Free Cash Maintained Per Loan Agreements       $ 35,000,000.0              
Teekay LNG | Euro Denominated Term Loans Due Through Two Thousand Twenty Three [Member]                      
Debt Instrument [Line Items]                      
Total debt       $ 180,100,000 193,800,000   € 158.4   € 169.0    
Number Of Debt Instruments | term_loan       2              
Number Of Vessels Held As Collateral | vessel       2   2 2        
Number of Subsidiaries | subsidiary       1              
Teekay LNG | Common Class A [Member] | Revolving Credit Facilities                      
Debt Instrument [Line Items]                      
Common Unit, Issued | shares       25.2   25.2 25.2        
Teekay LNG | Minimum [Member] | Euro Denominated Term Loans Due Through Two Thousand Twenty Three [Member]                      
Debt Instrument [Line Items]                      
Debt Instrument, Basis Spread on Variable Rate       0.60%              
Teekay LNG | Maximum | Euro Denominated Term Loans Due Through Two Thousand Twenty Three [Member]                      
Debt Instrument [Line Items]                      
Debt Instrument, Basis Spread on Variable Rate       1.95%              
Teekay Tankers [Member] | Long-term Debt [Member]                      
Debt Instrument [Line Items]                      
Debt Guaranteed       $ 155,800,000              
Teekay Tankers [Member] | 2016 Debt Facility Maturing in January 2021 [Member]                      
Debt Instrument [Line Items]                      
Debt Covenant Minimum Free Liquidity And Undrawn Revolving Credit Line       $ 35,000,000.0              
Debt Covenant Minimum Free Liquidity And Undrawn Revolving Credit Line As Percentage Of Debt       5.00%   5.00% 5.00%        
Teekay Tankers [Member] | Common Class A [Member] | Revolving Credit Facilities                      
Debt Instrument [Line Items]                      
Common Unit, Issued | shares       40.3   40.3 40.3        
Teekay Tankers [Member] | Minimum [Member]                      
Debt Instrument [Line Items]                      
Free Liquidity And Undrawn Revolving Credit Line As Percentage Of Debt       5.00%   5.00% 5.00%        
Teekay Tankers [Member] | Minimum [Member] | 2016 Debt Facility Maturing in January 2021 [Member]                      
Debt Instrument [Line Items]                      
Debt Instrument, Term       6 months              
Parent Company [Member] | Convertible Senior Notes due 2023 [Member] | Convertible Debt [Member]                      
Debt Instrument [Line Items]                      
Proceeds from Convertible Debt $ 104,600,000                    
Debt instrument, principal amount                   $ 125,000,000  
Debt Instrument, Interest Rate, Stated Percentage                   5.00%  
Debt Instrument, Convertible Term 5 years                    
Debt Instrument, Convertible, Carrying Amount of Equity Component                   $ 16,100,000  
Parent Company [Member] | Common Stock                      
Debt Instrument [Line Items]                      
Sale of Stock, Price Per Share | $ / shares       $ 9.75              
Nibor Loan [Member] | Teekay LNG | Norwegian Kroner Denominated Bonds Due Through October Two Thousand Twenty One [Member] [Member]                      
Debt Instrument [Line Items]                      
Debt instrument, principal amount | kr                     kr 3,050,000,000
Unsecured Debt | kr           kr 3,100,000,000          
Senior Notes       $ 357,500,000 $ 353,000,000            
Derivative, Notional Amount       $ 382,500,000              
Nibor Loan [Member] | Teekay LNG | Minimum [Member] | Norwegian Kroner Denominated Bonds Due Through October Two Thousand Twenty One [Member] [Member]                      
Debt Instrument [Line Items]                      
Debt Instrument, Basis Spread on Variable Rate       3.70%              
Derivative, Fixed Interest Rate       5.92%   5.92% 5.92%        
Nibor Loan [Member] | Teekay LNG | Maximum | Norwegian Kroner Denominated Bonds Due Through October Two Thousand Twenty One [Member] [Member]                      
Debt Instrument [Line Items]                      
Debt Instrument, Basis Spread on Variable Rate       6.00%              
Derivative, Fixed Interest Rate       7.89%   7.89% 7.89%        
Fixed Rate [Member] | Remaining Term Loans [Member] | Secured Debt [Member]                      
Debt Instrument [Line Items]                      
Number Of Debt Instruments | term_loan       2              
Three Month London Interbank Offered Rate [Member] | Minimum [Member] | Remaining Term Loans [Member] | Secured Debt [Member]                      
Debt Instrument [Line Items]                      
Debt Instrument, Basis Spread on Variable Rate       0.30% 0.30%            
Three Month London Interbank Offered Rate [Member] | Maximum | Remaining Term Loans [Member] | Secured Debt [Member]                      
Debt Instrument [Line Items]                      
Debt Instrument, Basis Spread on Variable Rate       3.25% 3.50%            
Debt Instrument, Redemption, Period One [Member] | Senior Notes due 2022 [Member]                      
Debt Instrument [Line Items]                      
Debt Instrument, Redemption Price, Percentage       100.00%              
Debt Instrument, Redemption, Period Two [Member] | Senior Notes due 2022 [Member]                      
Debt Instrument [Line Items]                      
Debt Instrument, Redemption Price, Percentage       104.625%              
Debt Instrument, Redemption, Period Three [Member] | Senior Notes due 2022 [Member]                      
Debt Instrument [Line Items]                      
Debt Instrument, Redemption Price, Percentage       102.313%              
Debt Instrument, Redemption, Period Four [Member] | Senior Notes due 2022 [Member]                      
Debt Instrument [Line Items]                      
Debt Instrument, Redemption Price, Percentage       100.00%              
v3.19.2
Long-Term Debt Narrative (Details)
$ / shares in Units, € in Millions, shares in Millions
 1 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended
Jan. 31, 2018
USD ($)
Jan. 27, 2010
USD ($)
May 31, 2019
USD ($)
vessel
Nov. 30, 2015
USD ($)
Jun. 30, 2019
USD ($)
vessel
SecurityLoan
term_loan
$ / shares
shares
Mar. 31, 2019
USD ($)
Jun. 30, 2018
USD ($)
Jun. 30, 2019
USD ($)
subsidiary
vessel
SecurityLoan
credit_facility
term_loan
$ / shares
shares
Jun. 30, 2018
USD ($)
Dec. 31, 2018
USD ($)
vessel
Dec. 31, 2014
USD ($)
Jun. 30, 2019
NOK (kr)
vessel
SecurityLoan
term_loan
shares
Jun. 30, 2019
EUR (€)
vessel
SecurityLoan
term_loan
shares
Dec. 31, 2018
EUR (€)
vessel
Mar. 31, 2018
USD ($)
Jan. 26, 2018
USD ($)
$ / shares
May 31, 2015
NOK (kr)
Debt Instrument [Line Items]                                  
Long-term Debt, Maturities, Repayments of Principal after Year Five         $ 528,400,000     $ 528,400,000                  
Gain (Loss) on Extinguishment of Debt         (10,700,000)                        
Repayments of Senior Debt           $ 10,900,000                      
Long-term debt, gross         2,891,199,000     2,891,199,000   $ 3,363,127,000              
Long-term Debt         2,843,325,000     2,843,325,000   $ 3,319,523,000              
Foreign exchange (loss) gain (notes 9 and 15)         $ (5,851,000)   $ 12,529,000 $ (8,481,000) $ 12,551,000                
Long-term Debt, Weighted Average Interest Rate, at Point in Time         4.90%     4.90%   5.10%   4.90% 4.90% 5.10%      
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year         $ 120,100,000     $ 120,100,000                  
Long-term Debt, Maturities, Repayments of Principal in Year Two         703,800,000     703,800,000                  
Long-term Debt, Maturities, Repayments of Principal in Year Three         826,800,000     826,800,000                  
Long-term Debt, Maturities, Repayments of Principal in Year Four         373,100,000     373,100,000                  
Long-term Debt, Maturities, Repayments of Principal in Year Five         $ 339,000,000     $ 339,000,000                  
Number Of Loan Agreements | SecurityLoan         5     5       5 5        
Minimum [Member]                                  
Debt Instrument [Line Items]                                  
Vessel Market Value To Loan Ratio         135.00%     135.00%       135.00% 135.00%        
Vessel Market Value to Loan Required Ratio         115.00%     115.00%       115.00% 115.00%        
Undrawn Revolving Credit Facilities Time To Maturity               6 months                  
Maximum                                  
Debt Instrument [Line Items]                                  
Vessel Market Value To Loan Ratio         511.00%     511.00%       511.00% 511.00%        
Vessel Market Value to Loan Required Ratio         135.00%     135.00%       135.00% 135.00%        
Term Loan One [Member]                                  
Debt Instrument [Line Items]                                  
Minimum Level Of Free Cash Maintained Per Loan Agreements         $ 100,000,000     $ 100,000,000                  
Term Loan One [Member] | Minimum [Member]                                  
Debt Instrument [Line Items]                                  
Free Liquidity And Undrawn Revolving Credit Line As Percentage Of Debt         7.50%     7.50%       7.50% 7.50%        
Term Loan Two [Member]                                  
Debt Instrument [Line Items]                                  
Minimum Level Of Free Cash Maintained Per Loan Agreements         $ 50,000,000     $ 50,000,000                  
Secured Debt [Member]                                  
Debt Instrument [Line Items]                                  
Number Of Debt Instruments | term_loan               10                  
Long-term debt, gross         $ 1,400,000,000     $ 1,400,000,000   $ 1,500,000,000              
Number Of Debt Instruments With Balloon Or Bullet Payments | term_loan         8     8       8 8        
Number Of Vessels Held As Collateral | vessel         24     24   24   24 24 24      
Secured Debt [Member] | Remaining Term Loans [Member]                                  
Debt Instrument [Line Items]                                  
Debt Instrument, Interest Rate, Stated Percentage         4.49%     4.49%       4.49% 4.49%        
Secured Debt [Member] | Remaining Term Loans [Member] | Fixed Rate [Member]                                  
Debt Instrument [Line Items]                                  
Number Of Debt Instruments | term_loan               2                  
Secured Debt [Member] | Remaining Term Loans [Member] | Three Month London Interbank Offered Rate [Member] | Minimum [Member]                                  
Debt Instrument [Line Items]                                  
Debt Instrument, Basis Spread on Variable Rate               0.30%   0.30%              
Secured Debt [Member] | Remaining Term Loans [Member] | Three Month London Interbank Offered Rate [Member] | Maximum                                  
Debt Instrument [Line Items]                                  
Debt Instrument, Basis Spread on Variable Rate               3.25%   3.50%              
Secured Debt [Member] | Remaining Secured Debt [Member]                                  
Debt Instrument [Line Items]                                  
Number Of Debt Instruments | credit_facility               2                  
Senior Notes (8.5%) due January 15, 2020                                  
Debt Instrument [Line Items]                                  
Long-term debt, percentage bearing fixed interest, percentage rate   8.50%   8.50% 8.50%     8.50%       8.50% 8.50%        
Debt instrument, principal amount   $ 450,000,000   $ 200,000,000                          
Percentage Of Par At Which Notes Sold   99.20%   99.01%                          
Debt Instrument, Interest Rate, Effective Percentage         8.67%     8.67%       8.67% 8.67%        
Repayments of Senior Debt     $ 460,900,000             $ 84,100,000 $ 57,300,000            
Debt Instrument, Redemption Price, Percentage               100.00%                  
Long-term debt, gross         $ 36,712,000     $ 36,712,000   508,577,000              
Senior Notes due 2022 [Member]                                  
Debt Instrument [Line Items]                                  
Long-term debt, percentage bearing fixed interest, percentage rate     9.25%   9.25%     9.25%       9.25% 9.25%        
Debt instrument, principal amount     $ 250,000,000                            
Long-term debt, gross         $ 250,000,000     $ 250,000,000   0              
Convertible Debt [Member] | Convertible Senior Notes due 2023 [Member]                                  
Debt Instrument [Line Items]                                  
Debt Instrument, Convertible, Conversion Ratio 85.4701                                
Debt Instrument, Convertible, If-converted Value in Excess of Principal $ 1,000                                
Debt Instrument, Convertible, Conversion Price | $ / shares                               $ 11.70  
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger 20.00%                                
Sale of Stock, Price Per Share | $ / shares                               9.75  
Revolving Credit Facilities                                  
Debt Instrument [Line Items]                                  
Credit facility, maximum borrowing capacity         886,779,169     886,779,169                  
Line of Credit Facility, Remaining Borrowing Capacity         400,000,000     400,000,000                  
Line Of Credit Reduction Of Available Borrowing Capacity Remainder Of Fiscal Year         17,400,000     17,400,000                  
Line Of Credit Reduction Of Available Borrowing Capacity In Year Two         372,400,000     372,400,000                  
Line Of Credit Reduction Of Available Borrowing Capacity In Year Three         329,200,000     329,200,000                  
Line Of Credit Reduction Of Available Borrowing Capacity In Year Four         $ 167,800,000     $ 167,800,000                  
Debt Instrument, Collateral, Number of Vessels | vessel         36     36       36 36        
Long-term debt, gross         $ 500,930,000     $ 500,930,000   642,997,000              
Number Of Credit Facilities | term_loan         5     5       5 5        
Revolving Credit Facilities | Minimum [Member]                                  
Debt Instrument [Line Items]                                  
Debt Instrument, Basis Spread on Variable Rate               1.40%                  
Revolving Credit Facilities | Maximum                                  
Debt Instrument [Line Items]                                  
Debt Instrument, Basis Spread on Variable Rate               3.95%                  
Revolving Credit Facilities | Secured Debt [Member]                                  
Debt Instrument [Line Items]                                  
Credit facility, maximum borrowing capacity         $ 150,000,000.0     $ 150,000,000.0                  
Teekay Offshore [Member] | Revolving Credit Facilities                                  
Debt Instrument [Line Items]                                  
Credit facility, maximum borrowing capacity                             $ 125,000,000    
Teekay LNG                                  
Debt Instrument [Line Items]                                  
Minimum Level Of Free Cash Maintained Per Loan Agreements         35,000,000.0     35,000,000.0                  
Teekay LNG | Norwegian Kroner Denominated Bonds Due Through October Two Thousand Twenty One [Member] [Member] | Nibor Loan [Member]                                  
Debt Instrument [Line Items]                                  
Debt instrument, principal amount | kr                                 kr 3,050,000,000
Unsecured Debt | kr                       kr 3,100,000,000          
Senior Notes         357,500,000     357,500,000   353,000,000              
Notional Amount         $ 382,500,000     $ 382,500,000                  
Teekay LNG | Norwegian Kroner Denominated Bonds Due Through October Two Thousand Twenty One [Member] [Member] | Nibor Loan [Member] | Minimum [Member]                                  
Debt Instrument [Line Items]                                  
Debt Instrument, Basis Spread on Variable Rate               3.70%                  
Derivative, Fixed Interest Rate         5.92%     5.92%       5.92% 5.92%        
Teekay LNG | Norwegian Kroner Denominated Bonds Due Through October Two Thousand Twenty One [Member] [Member] | Nibor Loan [Member] | Maximum                                  
Debt Instrument [Line Items]                                  
Debt Instrument, Basis Spread on Variable Rate               6.00%                  
Derivative, Fixed Interest Rate         7.89%     7.89%       7.89% 7.89%        
Teekay LNG | Euro Denominated Term Loans Due Through Two Thousand Twenty Three [Member]                                  
Debt Instrument [Line Items]                                  
Number Of Debt Instruments | term_loan               2                  
Number Of Vessels Held As Collateral | vessel         2     2       2 2        
Long-term Debt         $ 180,100,000     $ 180,100,000   $ 193,800,000     € 158.4 € 169.0      
Number of Subsidiaries | subsidiary               1                  
Teekay LNG | Euro Denominated Term Loans Due Through Two Thousand Twenty Three [Member] | Minimum [Member]                                  
Debt Instrument [Line Items]                                  
Debt Instrument, Basis Spread on Variable Rate               0.60%                  
Teekay LNG | Euro Denominated Term Loans Due Through Two Thousand Twenty Three [Member] | Maximum                                  
Debt Instrument [Line Items]                                  
Debt Instrument, Basis Spread on Variable Rate               1.95%                  
Teekay Tankers [Member]                                  
Debt Instrument [Line Items]                                  
Number Of Vessels | vessel                   6              
Teekay Tankers [Member] | Minimum [Member]                                  
Debt Instrument [Line Items]                                  
Free Liquidity And Undrawn Revolving Credit Line As Percentage Of Debt         5.00%     5.00%       5.00% 5.00%        
Teekay Tankers [Member] | 2016 Debt Facility Maturing in January 2021 [Member]                                  
Debt Instrument [Line Items]                                  
Debt Covenant Minimum Free Liquidity And Undrawn Revolving Credit Line         $ 35,000,000.0     $ 35,000,000.0                  
Debt Covenant Minimum Free Liquidity And Undrawn Revolving Credit Line As Percentage Of Debt         5.00%     5.00%       5.00% 5.00%        
Teekay Tankers [Member] | 2016 Debt Facility Maturing in January 2021 [Member] | Minimum [Member]                                  
Debt Instrument [Line Items]                                  
Debt Instrument, Term               6 months                  
Teekay Tankers [Member] | Long-term Debt [Member]                                  
Debt Instrument [Line Items]                                  
Debt Guaranteed         $ 155,800,000     $ 155,800,000                  
Common Class A [Member] | Teekay LNG | Revolving Credit Facilities                                  
Debt Instrument [Line Items]                                  
Common Unit, Issued | shares         25.2     25.2       25.2 25.2        
Common Class A [Member] | Teekay Tankers [Member] | Revolving Credit Facilities                                  
Debt Instrument [Line Items]                                  
Common Unit, Issued | shares         40.3     40.3       40.3 40.3        
Common Stock | Convertible Debt [Member] | Convertible Senior Notes due 2023 [Member]                                  
Debt Instrument [Line Items]                                  
Dividends payable, amount per share (in USD per share) | $ / shares                               $ 0.055  
Parent Company [Member] | Convertible Debt [Member] | Convertible Senior Notes due 2023 [Member]                                  
Debt Instrument [Line Items]                                  
Debt instrument, principal amount                               $ 125,000,000  
Debt Instrument, Interest Rate, Stated Percentage                               5.00%  
Proceeds from Convertible Debt $ 104,600,000                                
Debt Instrument, Convertible Term 5 years                                
Debt Instrument, Convertible, Carrying Amount of Equity Component                               $ 16,100,000  
Parent Company [Member] | Teekay Offshore [Member] | Revolving Credit Facilities                                  
Debt Instrument [Line Items]                                  
Credit facility, maximum borrowing capacity                             $ 25,000,000    
Parent Company [Member] | Common Stock                                  
Debt Instrument [Line Items]                                  
Sale of Stock, Price Per Share | $ / shares         $ 9.75     $ 9.75                  
FPSO contracts                                  
Debt Instrument [Line Items]                                  
Number Of Vessels | vessel     2                            
FPSO contracts | Asset Pledged as Collateral [Member]                                  
Debt Instrument [Line Items]                                  
Number Of Vessels | vessel     3                            
v3.19.2
Capital Stock - Capital Stock (Detail) - USD ($)
$ / shares in Units, $ in Millions
 1 Months Ended 6 Months Ended
Apr. 30, 2019
Jun. 30, 2019
Jun. 30, 2018
Dec. 31, 2018
Class of Stock [Line Items]        
Preferred stock, share authorized (in shares)   25,000,000   25,000,000
Preferred stock, par value (in usd per share)   $ 1   $ 1
Common stock, share authorized (in shares)   725,000,000   725,000,000
Common stock, par value (in usd per share)   $ 0.001   $ 0.001
Preferred stock, share issued (in shares)   0    
Stock options granted (in shares)   2,646,903 1,048,916  
Stock option per share value (in usd per share)   $ 3.98 $ 8.67  
Restricted stock units        
Class of Stock [Line Items]        
Number of shares or units granted equity based compensation awards (in shares)   796,733 625,878  
Fair value of granted stock   $ 3.3 $ 5.4  
Vesting period   3 years    
Restricted stock awards        
Class of Stock [Line Items]        
Number of shares or units granted equity based compensation awards (in shares)   144,441 79,869  
Fair value of granted stock   $ 0.5 $ 0.7  
Stock option        
Class of Stock [Line Items]        
Period Of Historical Data Used To Calculate Expected Volatility In Year   5 years    
Stock option, term   10 years    
Vesting period   3 years    
Weighted-average grant-date fair value of options granted (in usd per share)   $ 1.47    
Expected volatility used in computing fair value of options granted   65.20%    
Expected life used in computing fair value of options granted, years   5 years 6 months    
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate   5.90%    
Risk-free interest rate used in computing fair value of options granted   2.50%    
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Estimated Forfeiture Rate   6.00%    
Parent Company [Member] | Common Stock        
Class of Stock [Line Items]        
Sale of stock, number of shares issued in transaction (in shares)   10,000,000    
Sale of Stock, Price Per Share   $ 9.75    
Net proceeds from equity issuances of subsidiaries   $ 93.0    
Continuous Offering Program [Member]        
Class of Stock [Line Items]        
Sale of Stock, Offering Amount $ 63.0      
Continuous Offering Program [Member] | Parent Company [Member]        
Class of Stock [Line Items]        
Sale of stock, number of shares issued in transaction (in shares)   1,100,000    
Sale of stock, consideration received per transaction   $ 10.7    
v3.19.2
Capital Stock - Share-based Compensation of Subsidiaries (Details) - USD ($)
$ / shares in Units, $ in Millions
 1 Months Ended 6 Months Ended
Mar. 31, 2018
Jun. 30, 2019
Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock options granted (in shares)   2,646,903 1,048,916
Stock option per share value (in usd per share)   $ 3.98 $ 8.67
Restricted stock units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares or units granted equity based compensation awards (in shares)   796,733 625,878
Vesting period   3 years  
Stock option      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period   3 years  
Teekay LNG | Phantom unit awards      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares or units granted equity based compensation awards (in shares)   80,100 62,283
Teekay LNG | Non-management directors      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of common shares or units issued related to the exercise of share based compensation during the period (in shares)   35,419 17,498
Teekay Tankers [Member] | Restricted stock units | Common Class A [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares or units granted equity based compensation awards (in shares)   633,134 762,640
Teekay Tankers [Member] | Non-management directors | Common Class A [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of common shares or units issued related to the exercise of share based compensation during the period (in shares)   159,375 168,029
Teekay Tankers [Member] | Non-management directors | Stock option      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock options granted (in shares) 504,097   470,765
Teekay Tankers [Member] | Officer | Stock option      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period 3 years    
Stock options granted (in shares) 736,327 1,380,173  
Stock option per share value (in usd per share) $ 1.22   $ 1.00
Maximum contractual term 10 years    
Teekay LNG and Teekay Tankers [Member] | Restricted Stock And Phantom Share Units [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Common units aggregate value, granted   $ 1.8 $ 2.1
Teekay LNG and Teekay Tankers [Member] | Non-management directors      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Common units aggregate value, granted   $ 0.7 $ 0.5
Teekay Offshore Teekay Lng And Teekay Tankers | Restricted Stock And Phantom Share Units [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period   3 years  
v3.19.2
Vessels Under Construction (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Dec. 31, 2018
Long-term Purchase Commitment [Line Items]      
Loss Contingency, Receivable, Proceeds $ 45,000 $ 0  
Payments made towards commitments for construction of certain carriers and tankers 0   $ 86,942
Teekay LNG      
Long-term Purchase Commitment [Line Items]      
Loss Contingency, Receivable, Proceeds 45,000    
Expected cost of project 410,267    
Estimated remaining payments required to be made under newbuilding contract remainder of 2018 359,665    
Estimated remaining payments required to be made under newbuilding contract in 2019 9,733    
Unrecorded Unconditional Purchase Obligation, Due within Three Years 27,191    
Unrecorded Unconditional Purchase Obligation, Due within Four Years 13,678    
Teekay LNG | Consolidated Entities [Member]      
Long-term Purchase Commitment [Line Items]      
Expected cost of project 60,586    
Estimated remaining payments required to be made under newbuilding contract remainder of 2018 9,984    
Estimated remaining payments required to be made under newbuilding contract in 2019 9,733    
Unrecorded Unconditional Purchase Obligation, Due within Three Years 27,191    
Unrecorded Unconditional Purchase Obligation, Due within Four Years 13,678    
Teekay LNG | Equity Method Investments [Member]      
Long-term Purchase Commitment [Line Items]      
Expected cost of project 349,681    
Purchase Commitment, Remaining Minimum Amount Committed 349,681    
Estimated remaining payments required to be made under newbuilding contract in 2019 0    
Unrecorded Unconditional Purchase Obligation, Due within Three Years 0    
Unrecorded Unconditional Purchase Obligation, Due within Four Years $ 0    
v3.19.2
Equity-Accounted Investments (Detail)
$ in Millions
Jun. 30, 2019
USD ($)
Equity Method Investments [Member] | Teekay LNG | Newbuildings | Supply Commitment  
Long-term Purchase Commitment [Line Items]  
Credit facility, maximum borrowing capacity $ 301
v3.19.2
Liquidity (Details)
 1 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended
May 08, 2019
USD ($)
May 31, 2019
USD ($)
vessel
Apr. 30, 2019
USD ($)
Jun. 30, 2019
USD ($)
Mar. 31, 2019
USD ($)
Jun. 30, 2018
USD ($)
Mar. 31, 2018
USD ($)
Jun. 30, 2019
USD ($)
Jun. 30, 2018
USD ($)
Dec. 31, 2018
USD ($)
Dec. 31, 2014
USD ($)
Nov. 30, 2015
USD ($)
Jan. 27, 2010
USD ($)
Debt Instrument [Line Items]                          
Gain (Loss) on Extinguishment of Debt       $ (10,700,000)                  
Net loss       34,111,000 $ 61,464,000 $ 39,647,000 $ 9,980,000 $ 95,575,000 $ 49,627,000        
Net operating cash flow               178,924,000 110,434,000        
Working capital deficit       365,900,000       365,900,000          
Current portion of long-term debt       540,440,000       540,440,000   $ 242,137,000      
Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest 49.00%                        
Current portion of loans to equity-accounted investments (note 4)       $ 93,924,000       93,924,000   169,197,000      
Proceeds from sale of equity-accounted investments and related assets (note 4)               $ 100,000,000 $ 54,438,000        
Repayments of Senior Debt         $ 10,900,000                
Senior Notes due 2022 [Member]                          
Debt Instrument [Line Items]                          
Debt instrument, principal amount   $ 250,000,000                      
Senior Notes (8.5%) due January 15, 2020                          
Debt Instrument [Line Items]                          
Debt instrument, principal amount                       $ 200,000,000 $ 450,000,000
Repayments of Senior Debt   460,900,000               $ 84,100,000 $ 57,300,000    
Teekay Offshore [Member]                          
Debt Instrument [Line Items]                          
Current portion of loans to equity-accounted investments (note 4) $ 25,000,000                        
Proceeds from sale of equity-accounted investments and related assets (note 4) 100,000,000 $ 100,000,000                      
Gain (Loss) on Sale of Equity Investments $ 8,900,000                        
FSO | Asset Pledged as Collateral [Member]                          
Debt Instrument [Line Items]                          
Number Of Vessels | vessel   2                      
FPSO contracts                          
Debt Instrument [Line Items]                          
Number Of Vessels | vessel   2                      
FPSO contracts | Asset Pledged as Collateral [Member]                          
Debt Instrument [Line Items]                          
Number Of Vessels | vessel   3                      
Continuous Offering Program [Member]                          
Debt Instrument [Line Items]                          
Sale of Stock, Offering Amount     $ 63,000,000                    
v3.19.2
Financial Instruments Fair Value of Financial Instruments and Other Non-Financial Assets (Detail)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2019
USD ($)
Jun. 30, 2018
USD ($)
Jun. 30, 2019
USD ($)
Jun. 30, 2018
USD ($)
May 08, 2019
USD ($)
Mar. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Mar. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]                  
Assets Held-for-sale, Not Part of Disposal Group, Current $ 12,300   $ 12,300       $ 0    
Cash, cash equivalents, restricted cash and restricted cash equivalents 322,883 $ 545,026 322,883 $ 545,026     505,639   $ 552,174
Interest rate swap agreements – liabilities (56,172)   (56,172)       (56,352)    
Cross currency interest swap agreements – liabilities (101)   (101)            
Derivative Liability, Current 28,481   28,481       12,205    
Other                  
Loans to equity-accounted investees and joint venture partners - Current 93,924   93,924       169,197    
Short-term Debt 15,000   15,000       0    
Long-term debt (2,843,325)   (2,843,325)       (3,319,523)    
Obligations related to finance leases, including current portion (note 6) (1,826,732)   (1,826,732)       (1,673,845)    
Accrued liabilities, fair value disclosure 2,600   2,600       3,200    
Recurring | Level 3 | Stock purchase warrants                  
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]                  
Fair Value, Net Derivative Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss) 24,584 6,206 26,900 4,522          
Unrealized gain included in earnings (25,559) 0 (25,559) 0          
Stock purchase warrants 0 $ 35,271 0 $ 35,271   $ 14,342 12,026 $ 29,065 $ 30,749
Carrying Amount Asset (Liability)                  
Other                  
Loans to equity-accounted investees and joint venture partners - Current 93,924   93,924       169,197    
Line of Credit, Amount Extended 62,196   62,196       62,207    
Carrying Amount Asset (Liability) | Level 1 | Public                  
Other                  
Long-term debt (627,981)   (627,981)       (856,986)    
Carrying Amount Asset (Liability) | Level 2 | Public                  
Other                  
Short-term Debt 15,000   15,000       0    
Carrying Amount Asset (Liability) | Level 2 | Non-public                  
Other                  
Long-term debt (2,215,344)   (2,215,344)       (2,462,537)    
Obligations related to finance leases, including current portion (note 6) (1,826,732)   (1,826,732)       (1,673,845)    
Carrying Amount Asset (Liability) | Recurring | Level 1                  
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]                  
Cash, cash equivalents, restricted cash and restricted cash equivalents 322,883   322,883       505,639    
Carrying Amount Asset (Liability) | Recurring | Level 2 | Interest rate swap agreements                  
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]                  
Interest rate swap agreements – assets 1,896   1,896       9,640    
Interest rate swap agreements – liabilities (56,663)   (56,663)       (43,175)    
Carrying Amount Asset (Liability) | Recurring | Level 2 | Cross currency interest swap agreement                  
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]                  
Cross currency interest swap agreements – liabilities (31,006)   (31,006)       (29,122)    
Carrying Amount Asset (Liability) | Recurring | Level 2 | Foreign currency contracts                  
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]                  
Cross currency interest swap agreement and Foreign currency contracts (101)   (101)       0    
Carrying Amount Asset (Liability) | Recurring | Level 2 | Freight forward agreements                  
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]                  
Derivative Asset, Current 61   61            
Derivative Liability, Current             (57)    
Carrying Amount Asset (Liability) | Recurring | Level 3 | Stock purchase warrants                  
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]                  
Stock purchase warrants 0   0       12,026    
Fair Value Asset (Liability) | Level 1 | Public                  
Other                  
Long-term debt (658,046)   (658,046)       (851,470)    
Fair Value Asset (Liability) | Level 2 | Public                  
Other                  
Short-term Debt, Fair Value 15,000   15,000       0    
Fair Value Asset (Liability) | Level 2 | Non-public                  
Other                  
Long-term debt (2,168,252)   (2,168,252)       (2,395,300)    
Obligations related to finance leases, including current portion (note 6) (1,872,238)   (1,872,238)       (1,652,345)    
Fair Value Asset (Liability) | Recurring | Level 1                  
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]                  
Cash, cash equivalents, restricted cash and restricted cash equivalents 322,883   322,883       505,639    
Fair Value Asset (Liability) | Recurring | Level 2 | Interest rate swap agreements                  
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]                  
Interest rate swap agreements – assets 1,896   1,896       9,640    
Interest rate swap agreements – liabilities (56,663)   (56,663)       (43,175)    
Fair Value Asset (Liability) | Recurring | Level 2 | Cross currency interest swap agreement                  
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]                  
Cross currency interest swap agreements – liabilities (31,006)   (31,006)       (29,122)    
Fair Value Asset (Liability) | Recurring | Level 2 | Foreign currency contracts                  
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]                  
Cross currency interest swap agreement and Foreign currency contracts (101)   (101)       0    
Fair Value Asset (Liability) | Recurring | Level 2 | Freight forward agreements                  
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]                  
Derivative Asset, Current 61   61            
Derivative Liability, Current             (57)    
Fair Value Asset (Liability) | Recurring | Level 3 | Stock purchase warrants                  
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]                  
Stock purchase warrants $ 0   $ 0       $ 12,026    
Measurement Input, Discount Rate | Royal Dutch Shell Plc [Member] | Supply Commitment                  
Other                  
Receivable measurement input             0.080    
Teekay Offshore [Member]                  
Other                  
Loans to equity-accounted investees and joint venture partners - Current         $ 25,000        
Line of Credit, Amount Extended         $ 25,000        
v3.19.2
Financial Instruments Narrative (Detail) - $ / shares
May 08, 2019
Jun. 30, 2019
Dec. 31, 2018
Derivative [Line Items]      
Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest 49.00%    
Common stock, par value (in usd per share)   $ 0.001 $ 0.001
Teekay Offshore [Member] | Stock purchase warrants | Brookfield Business Partners L.P. [Member]      
Derivative [Line Items]      
Number of shares available through exercise of stock purchase warrant (in shares) 15,500,000    
Teekay Offshore [Member] | Series D Warrant      
Derivative [Line Items]      
Number of shares available through exercise of stock purchase warrant (in shares) 1,755,000    
v3.19.2
Financial Instruments Warrants change in Fair Value (Detail) - USD ($)
$ in Thousands, shares in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
May 08, 2019
Mar. 31, 2019
Dec. 31, 2018
Mar. 31, 2018
Dec. 31, 2017
Level 3 | Recurring | Stock purchase warrants                  
Derivative [Line Items]                  
Stock purchase warrants $ 0 $ 35,271 $ 0 $ 35,271   $ 14,342 $ 12,026 $ 29,065 $ 30,749
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]                  
Unrealized gain included in earnings (25,559) 0 (25,559) 0          
Teekay Offshore [Member] | Stock purchase warrants | Brookfield Business Partners L.P. [Member]                  
Derivative [Line Items]                  
Number of shares available through exercise of stock purchase warrant (in shares)         15.5        
Stock purchase warrants | Level 3 | Recurring                  
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]                  
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Sales $ (13,367) $ 0 $ (13,367) $ 0          
v3.19.2
Financial Instruments Financing Receivables (Detail) - USD ($)
$ in Thousands
Jun. 30, 2019
Dec. 31, 2018
Financing Receivable, Credit Quality Indicator [Line Items]    
Direct Financing Lease, Net Investment in Lease $ 564,685 $ 575,163
Other loan receivables    
Total direct financing leases and other loan receivables 727,662 822,261
Performing | Payment activity    
Financing Receivable, Credit Quality Indicator [Line Items]    
Direct Financing Lease, Net Investment in Lease 564,685 575,163
Other loan receivables    
Long-term receivable and accrued revenue included in accounts receivable and other assets 6,857 15,694
Performing | Other internal metrics    
Other loan receivables    
Loans to equity-accounted investments and joint venture partners $ 156,120 $ 231,404
v3.19.2
Restructuring Reversals (Charges) (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Dec. 31, 2018
Restructuring and Related Activities [Abstract]          
Restructuring charges $ 1,369 $ 1,114 $ 9,990 $ 3,252  
Restructuring liability $ 1,300   $ 1,300   $ 800
v3.19.2
Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($)
$ in Thousands
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]            
Accumulated Other Comprehensive Loss $ 2,672,625 $ 2,756,090 $ 2,867,028 $ 2,933,613 $ 2,984,111 $ 2,879,656
Accumulated other comprehensive loss (21,143)   (2,273)      
Unrealized (loss) gain on qualifying cash flow hedging instruments            
Accumulated Other Comprehensive Income (Loss) [Line Items]            
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax (17,801)   903      
Pension adjustments, net of tax recoveries            
Accumulated Other Comprehensive Income (Loss) [Line Items]            
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax (3,342)   (3,176)      
AOCI Including Portion Attributable to Noncontrolling Interest [Member]            
Accumulated Other Comprehensive Income (Loss) [Line Items]            
Accumulated other comprehensive loss $ (21,143) $ (11,124) $ (2,273) $ 5,163 $ 2,438 $ (5,995)
v3.19.2
Derivative Instruments and Hedging Activities - Commitment of Cross Currency Swaps (Detail) - Cross Currency Interest Rate Contract [Member]
kr in Thousands, $ in Thousands
 3 Months Ended
Jun. 30, 2019
USD ($)
Jun. 30, 2019
NOK (kr)
Derivative [Line Items]    
Fair Value / Carrying Amount of Asset / (Liability) $ (31,006)  
NIBOR | Six Point Zero Margin [Member]    
Derivative [Line Items]    
Notional Amount $ 146,500 kr 1,200,000
Receivable Margin 6.00% 6.00%
Derivative, Fixed Interest Rate 7.72% 7.72%
Fair Value / Carrying Amount of Asset / (Liability) $ (5,785)  
Remaining Term (years) 2 years 3 months 18 days  
NIBOR | 4.60%    
Derivative [Line Items]    
Notional Amount $ 102,000 kr 850,000
Receivable Margin 4.60% 4.60%
Derivative, Fixed Interest Rate 7.89% 7.89%
Fair Value / Carrying Amount of Asset / (Liability) $ (8,088)  
Remaining Term (years) 4 years 2 months 12 days  
NIBOR | Three Point Seven Zero Margin [Member]    
Derivative [Line Items]    
Notional Amount $ 134,000 kr 1,000,000
Receivable Margin 3.70% 3.70%
Derivative, Fixed Interest Rate 5.92% 5.92%
Fair Value / Carrying Amount of Asset / (Liability) $ (17,133)  
Remaining Term (years) 10 months 24 days  
v3.19.2
Derivative Instruments and Hedging Activities - Interest Rate Swap Agreements (Detail)
$ in Thousands
 6 Months Ended
Jun. 30, 2019
USD ($)
interest_rate_swaps
U.S. Dollar-denominated interest rate swaps | LIBOR  
Derivative [Line Items]  
Principal Amount $ 1,011,178
Interest Rate Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net $ (44,855)
Weighted-Average Remaining Term (Years) 3 years 7 months 6 days
Derivative, Fixed Interest Rate 3.00%
Euro-denominated interest rate swaps | EURIBOR  
Derivative [Line Items]  
Principal Amount $ 81,059
Interest Rate Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net $ (9,912)
Weighted-Average Remaining Term (Years) 4 years 2 months 1 day
Derivative, Fixed Interest Rate 3.80%
Interest rate swap agreements  
Derivative [Line Items]  
Interest Rate Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net $ (54,767)
Derivative, Number of Instruments Held | interest_rate_swaps 2
Minimum [Member] | Interest rate swap agreements  
Derivative [Line Items]  
Debt Instrument, Basis Spread on Variable Rate 0.30%
Maximum | Interest rate swap agreements  
Derivative [Line Items]  
Debt Instrument, Basis Spread on Variable Rate 3.95%
v3.19.2
Derivative Instruments and Hedging Activities - Location and Fair Value Amounts of Derivative Instruments (Detail)
$ in Thousands
Jun. 30, 2019
USD ($)
€ / $
May 08, 2019
shares
Dec. 31, 2018
USD ($)
Derivatives, Fair Value [Line Items]      
Expected maturity amounts of foreign currency derivatives in year two $ 6,750    
Investment Foreign Currency, Contract, Foreign Currency Amount 9,240    
Prepaid Expenses and Other $ 108,274   $ 69,882
Derivative, Average Forward Exchange Rate | € / $ 1    
Foreign Currency Contracts, Liability, Fair Value Disclosure $ 101    
Expected maturity amount of foreign currency derivatives in next fiscal year 3,952    
Interest Rate Swaps, Cross Currency Swaps Agreement and Foreign Currency Forward Contracts [Member]      
Derivatives, Fair Value [Line Items]      
Derivative asset, fair value, gross asset 1,900    
Derivative liability, fair value, gross liability 66,200    
Derivatives not designated as a cash flow hedge | Forward freight agreements      
Derivatives, Fair Value [Line Items]      
Prepaid Expenses and Other     0
Other Non-Current Assets     0
Accounts Payable, Accrued Liabilities and Other     0
Current Portion of Derivative Liabilities     (57)
Derivative Liabilities     0
Derivative      
Derivatives, Fair Value [Line Items]      
Prepaid Expenses and Other 1,229   3,699
Other Non-Current Assets 240   17,361
Accounts Payable, Accrued Liabilities and Other (2,629)   (3,191)
Current Portion of Derivative Liabilities (28,481)   (12,205)
Derivative Liabilities (56,172)   (56,352)
Derivative | Derivatives designated as a cash flow hedge | Interest Rate Swaps      
Derivatives, Fair Value [Line Items]      
Prepaid Expenses and Other 0   784
Other Non-Current Assets 0   2,362
Accounts Payable, Accrued Liabilities and Other (3)   (20)
Current Portion of Derivative Liabilities (497)   0
Derivative Liabilities (3,758)   0
Derivative | Derivatives not designated as a cash flow hedge | Foreign Currency Contracts      
Derivatives, Fair Value [Line Items]      
Prepaid Expenses and Other 0    
Other Non-Current Assets 0    
Accounts Payable, Accrued Liabilities and Other 0    
Current Portion of Derivative Liabilities (101)    
Derivative Liabilities 0    
Derivative | Derivatives not designated as a cash flow hedge | Interest Rate Swaps      
Derivatives, Fair Value [Line Items]      
Prepaid Expenses and Other 1,168   2,915
Other Non-Current Assets 240   2,973
Accounts Payable, Accrued Liabilities and Other (2,094)   (2,498)
Current Portion of Derivative Liabilities (8,996)   (7,419)
Derivative Liabilities (40,833)   (32,672)
Derivative | Derivatives not designated as a cash flow hedge | Cross Currency Swap Agreements      
Derivatives, Fair Value [Line Items]      
Prepaid Expenses and Other 0   0
Other Non-Current Assets 0   0
Accounts Payable, Accrued Liabilities and Other (538)   (713)
Current Portion of Derivative Liabilities (18,887)   (4,729)
Derivative Liabilities (11,581)   (23,680)
Derivative | Derivatives not designated as a cash flow hedge | Stock Purchase Warrants      
Derivatives, Fair Value [Line Items]      
Prepaid Expenses and Other     0
Other Non-Current Assets     12,026
Accounts Payable, Accrued Liabilities and Other     0
Current Portion of Derivative Liabilities     0
Derivative Liabilities     $ 0
Derivative | Derivatives not designated as a cash flow hedge | Forward freight agreements      
Derivatives, Fair Value [Line Items]      
Prepaid Expenses and Other 61    
Other Non-Current Assets 0    
Accounts Payable, Accrued Liabilities and Other 0    
Current Portion of Derivative Liabilities 0    
Derivative Liabilities    
Series D Warrant | Teekay Offshore [Member]      
Derivatives, Fair Value [Line Items]      
Number of securities called by warrants or rights (in shares) | shares   1,755,000  
Brookfield Business Partners L.P. [Member] | Stock Purchase Warrants | Teekay Offshore [Member]      
Derivatives, Fair Value [Line Items]      
Number of securities called by warrants or rights (in shares) | shares   15,500,000  
v3.19.2
Derivative Instruments and Hedging Activities - Effective Portion of Gains (Losses) on Interest Rate Swap Agreements (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Derivative [Line Items]        
Unrealized (loss) gain on qualifying cash flow hedging instruments $ (30,743) $ 7,054 $ (52,252) $ 9,676
Interest Expense        
Derivative [Line Items]        
Unrealized (loss) gain on qualifying cash flow hedging instruments       5,090
Effective Portion Recognized in AOCI (4,570) 1,534 (7,402)  
Effective Portion Reclassified from AOCI $ 157 2 $ 408 248
Ineffective Portion   $ 0   $ 740
v3.19.2
Derivative Instruments and Hedging Activities - Effect of Gain (Loss) on Derivatives Not Designated as Hedging Instruments (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Dec. 31, 2018
Derivatives, Fair Value [Line Items]          
Prepaid Expenses and Other $ 108,274   $ 108,274   $ 69,882
Realized losses relating to          
Derivative instruments not designated as hedging instruments realized (loss) gain net (27,373) $ (4,049) (29,074) $ (8,858)  
Unrealized gains (losses) relating to          
Derivative instruments not designated as hedging instruments unrealized gain (loss) net 16,409 14,772 12,687 29,007  
Total realized and unrealized gains (losses) on derivative instruments (10,964) 10,723 (16,387) 20,149  
Interest rate swap agreements          
Realized losses relating to          
Derivative instruments not designated as hedging instruments realized (loss) gain net (1,785) (4,031) (3,473) (8,840)  
Unrealized gains (losses) relating to          
Derivative instruments not designated as hedging instruments unrealized gain (loss) net (8,195) 8,532 (14,216) 24,451  
Foreign currency forward contracts          
Unrealized gains (losses) relating to          
Derivative instruments not designated as hedging instruments unrealized gain (loss) net (101) 0 (101) 0  
Stock purchase warrants          
Realized losses relating to          
Derivative instruments not designated as hedging instruments realized (loss) gain net (25,559) 0 (25,559) 0  
Unrealized gains (losses) relating to          
Derivative instruments not designated as hedging instruments unrealized gain (loss) net 24,584 6,206 26,900 4,522  
Forward freight agreements          
Realized losses relating to          
Derivative instruments not designated as hedging instruments realized (loss) gain net (29) (18) (42) (18)  
Unrealized gains (losses) relating to          
Derivative instruments not designated as hedging instruments unrealized gain (loss) net $ 121 $ 34 $ 104 $ 34  
v3.19.2
Derivative Instruments and Hedging Activities - Effect of Gains (Losses) on Cross Currency Swaps (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Derivative Instruments, Gain (Loss) [Line Items]        
Total realized and unrealized gains (losses) on derivative instruments $ (10,964) $ 10,723 $ (16,387) $ 20,149
Cross Currency Interest Rate Contract [Member]        
Derivative Instruments, Gain (Loss) [Line Items]        
Realized losses (1,087) (1,798) (2,521) (3,182)
Unrealized (losses) gains (140) (16,566) (2,060) 5,768
Total realized and unrealized gains (losses) on derivative instruments $ (1,227) $ (18,364) $ (4,581) $ 2,586
v3.19.2
Derivative Instruments and Hedging Activities Derivatives and Hedging Activities - FX Forwards (Details)
$ in Thousands
Jun. 30, 2019
USD ($)
€ / $
Derivative [Line Items]  
Investment Foreign Currency, Contract, Foreign Currency Amount $ 9,240
Derivative, Average Forward Exchange Rate | € / $ 1
Expected maturity amounts of foreign currency derivatives in year two $ 6,750
v3.19.2
Income Tax Expense (Recovery) - Components of Provision for Income Tax (Expense) Recovery (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Income Tax Disclosure [Abstract]        
Current $ (3,219) $ (8,410) $ (8,072) $ (11,221)
Deferred (185) (336) (368) (1,642)
Income tax expense $ (3,404) $ (8,746) $ (8,440) $ (12,863)
v3.19.2
Income Tax Expense (Recovery) - Unrecognized Tax Benefits, Recorded in Other Long-Term Liabilities (Detail) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Income Tax Disclosure [Abstract]    
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities $ 2,106 $ 2,047
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]    
Beginning balance 40,556 31,061
Increases for positions related to the current year 4,121 2,337
Decrease related to statute of limitations 0 (312)
Ending balance $ 46,783 $ 35,133
v3.19.2
Net Loss Per Share - Schedule of Net Income (Loss) Per Share (Detail) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Jun. 30, 2019
Jun. 30, 2018
Earnings Per Share [Abstract]        
Net loss attributable to the shareholders of Teekay Corporation – basic and diluted $ (39,485) $ (28,324) $ (123,742) $ (48,879)
Basic and Diluted (in shares) 100,783,496 100,434,512 100,652,685 98,892,574
Common stock and common stock equivalents (in shares) 100,783,496 100,434,512 100,652,685 98,892,574
Loss per common share – basic and diluted        
Earnings Per Share, Basic and Diluted $ (0.39) $ (0.28) $ (1.23) $ (0.49)
v3.19.2
Net Loss Per Share - Additional Information (Detail) - shares
shares in Millions
 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Earnings Per Share [Abstract]    
Anti-dilutive effect on calculation of diluted loss per common share attributable to outstanding stock-based awards (in shares) 6.1 3.9
v3.19.2
Supplementary Cash Flow Information (Details) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Dec. 31, 2018
Dec. 31, 2017
Extinguishment of Debt [Line Items]        
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability $ 211,600      
Cash and cash equivalents 235,199 $ 454,933 $ 424,169 $ 445,452
Restricted cash – current (note 18) 50,798 55,466 40,493 38,179
Restricted cash – non-current (note 18) 36,886 34,627 40,977 68,543
Cash, cash equivalents, restricted cash and restricted cash equivalents 322,883 545,026 $ 505,639 $ 552,174
Toledo Spirit [Member] | Obligations [Member]        
Extinguishment of Debt [Line Items]        
Extinguishment of Debt, Amount $ 23,600      
Teide Spirit and Toledo Spirit [Member] | Obligations [Member]        
Extinguishment of Debt [Line Items]        
Extinguishment of Debt, Amount   $ 23,100