SEGMENT INFORMATION

We are a marine LNG infrastructure provider and a project development company. We own and operate LNG carriers, a FLNG and FSRUs and provide these services under time charters under varying periods. As of September 30, 2018, we have completed the commissioning of our first FLNG vessel and have entered the power market in an effort to become a midstream LNG solution provider. Our reportable segments consist of the primary services each provides. Although our segments are generally influenced by the same economic factors, each represents a distinct product in the LNG industry. Segment results are evaluated based on net income. The accounting principles for the segments are the same as for our consolidated financial statements. "Project development expenses" are allocated to each segment based on the nature of the project. Indirect general and administrative expenses are allocated to each segment based on estimated use.

The split of the organization of the business into three reportable segments is based on differences in management structure and reporting, economic characteristics, customer base, asset class and contract structure. As of September 30, 2018, we operate in the following three reportable segments:


•	Vessel operations – We operate and subsequently charter out vessels on fixed terms to customers.


•	FLNG – In 2014, we ordered our first FLNG based on the conversion of our existing LNG carrier, the Hilli. The Hilli FLNG conversion has been completed and the vessel has been accepted by the Customer under the LTA.

In July 2016, we entered into an agreement with Schlumberger B.V. ("Schlumberger") to form OneLNG, a joint venture, with the intention to offer an integrated upstream and midstream solution for the development of low cost gas reserves to LNG. As a result we report the equity in net losses of OneLNG in the FLNG segment. In May 2018, it was decided that Golar and Schlumberger will wind down OneLNG and work on FLNG projects as required on a case-by-case basis.


•	Power – In July 2016, we entered into certain agreements forming a 50/50 joint venture, Golar Power, with private equity firm Stonepeak. Golar Power offers integrated LNG based downstream solutions, through the ownership and operation of FSRUs and associated terminal and power generation infrastructure.



Statement of Operations:	Nine Months Ended September 30, 2018										Nine Months Ended September 30, 2017 ⁽³⁾
(in thousands of $)	Vessel operations		FLNG		Power		Other ⁽¹⁾		Total		Vessel operations		FLNG		Power		Other ⁽¹⁾		Total
Total operating revenues	175,564		73,101		—		—		248,665		85,950		—		—		—		85,950
Depreciation and amortization	(49,252	)	(16,142	)	—		—		(65,394	)	(59,937	)	—		—		—		(59,937	)
Other operating expenses	(158,964	)	(30,369	)	—		—		(189,333	)	(113,888	)	(381	)	—		—		(114,269	)
Other operating gains and losses	36,000		187,366		—		—		223,366		—		—		—		—		—
Operating income (loss)	3,348		213,956		—		—		217,304		(87,875	)	(381	)	—		—		(88,256	)

Inter segment operating income(loss) ⁽²⁾	269		—		—		(269	)	—		1,770		—		—		(1,770	)	—
Segment operating (loss) income	3,617		213,956		—		(269	)	217,304		(86,105	)	(381	)	—		(1,770	)	(88,256	)

Equity in net earnings (losses) of affiliates	15,485		(2,047	)	(16,985	)	—		(3,547	)	(1,359	)	(5,281	)	(12,460	)	—		(19,100	)

Balance Sheet:	September 30, 2018										December 31, 2017
(in thousands of $)	Vessel operations		FLNG		Power		Other ⁽¹⁾		Total		Vessel operations		FLNG		Power		Other ⁽¹⁾		Total
Total assets	3,008,178		1,925,688		258,599		(5,381	)	5,187,084		3,025,244		1,515,463		228,696		(5,116	)	4,764,287
Investments in affiliates	443,623		—		258,599		—		702,222		472,482		2,047		228,696		—		703,225

(1)Eliminations required for consolidation purposes.

(2) Inter segment operating income (loss) relates to management fee revenues and charter revenues between the segments.

(3) We no longer consider LNG trading a separate reportable segment. Given the previously reported segment information was immaterial for all periods presented, we have included these amounts within the vessel operations segment.

Revenues from external customers

During the nine months ended September 30, 2018, our vessels operated predominately under charters within the Cool Pool and under our LTA with Perenco and SNH.

For the nine months ended September 30, 2018 and 2017, revenues from the following customers accounted for over 10% of our total operating revenues, excluding vessel and other management fees:



	Nine Months Ended September 30,
(in thousands of $)	2018			2017
Cool Pool (note 16)	141,024	61	%	62,113	90	%
Perenco and SNH (note 5)	73,101	31	%	—	—	%
An energy and logistics company	6,907	3	%	6,907	10	%