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VARIABLE INTEREST ENTITIES ("VIE") (Tables)

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

VARIABLE INTEREST ENTITIES [Abstract]

The following table gives a summary of the sale and leaseback arrangements, including repurchase options and obligations as of December 31, 2019:

Vessel

Effective from

Lessor

Sales value (in $ millions)

Lease duration

First repurchase option (in $ millions)

Date of first repurchase option

Net repurchase obligation at end of lease term
(in $ millions)

End of lease term

Golar Glacier

October 2014

ICBCL

204.0

10 years

173.8

October 2019⁽¹⁾

116.7

October 2024

Golar Kelvin

January 2015

ICBCL

204.0

10 years

173.8

January 2020 ⁽¹⁾

116.7

January 2025

Golar Snow

January 2015

ICBCL

204.0

10 years

173.8

January 2020 ⁽¹⁾

116.7

January 2025

Golar Ice

February 2015

ICBCL

204.0

10 years

173.8

February 2020 ⁽¹⁾

116.7

February 2025

Golar Tundra

November 2015

CMBL

254.6

10 years

168.7

November 2018⁽¹⁾

51.3

November 2025

Golar Seal

March 2016

CCBFL

203.0

10 years

132.8

March 2018⁽¹⁾

63.4

March 2026

Golar Crystal

March 2017

COSCO

187.0

10 years

97.3

March 2020 ⁽¹⁾

50.0

March 2027

Hilli

June 2018

CSSC

1,200.0

10 years

633.2

June 2023

300.0

June 2028

(1) We did not exercise the first repurchase option.

Summary of the bareboat charter rates per day based on Base LIBOR Interest Rate for the next five years

A summary of our payment obligations (excluding repurchase options and obligations) under the bareboat charters with the lessor VIEs as of December 31, 2019, are shown below:


(in thousands of $)	2020	2021	2022	2023	2024	2025+
Golar Glacier	17,147	17,100	17,100	17,100	12,884	—
Golar Kelvin	17,147	17,100	17,100	17,100	15,695	—
Golar Snow	17,147	17,100	17,100	17,100	15,695	—
Golar Ice	17,147	17,100	17,100	17,100	17,147	1,452
Golar Tundra ⁽¹⁾	19,808	18,963	18,150	17,348	16,566	13,199
Golar Seal	13,717	13,717	13,717	13,754	13,717	13,717
Golar Crystal⁽¹⁾	11,058	10,979	10,935	10,877	10,827	24,067
Hilli ⁽¹⁾	112,959	109,101	105,244	101,479	97,528	290,361

(1) The payment obligations relating to the Golar Tundra, Golar Crystal and Hilli above includes variable rental payments due under the lease based on assumed LIBOR plus a margin.

Schedule of assets and liabilities of lessor VIEs

The assets and liabilities of the lessor VIEs that most significantly impact our consolidated balance sheets as of December 31, 2019 and 2018, are as follows:


(in thousands of $)	Golar Glacier	Golar Kelvin	Golar Snow	Golar Ice	Golar Tundra	Golar Seal	Golar Crystal	Hilli	2019	2018
Assets									Total	Total
Restricted cash and short-term deposits (see note 12)	28	1,481	1,481	1,471	—	3,470	4,881	22,135	34,947	176,428

Liabilities
Debt:
Current portion of long-term debt and short-term debt ⁽¹⁾	127,166	147,025	127,695	100,799	10,764	—	6,625	442,931	963,005	646,513
Long-term interest bearing debt - non-current portion ⁽¹⁾	—	—	—	—	94,120	100,359	84,145	338,500	617,124	1,200,774
	127,166	147,025	127,695	100,799	104,884	100,359	90,770	781,431	1,580,129	1,847,287

(1) Where applicable, these balances are net of deferred finance charges (see note 18).

The most significant impact of the lessor VIE's operations on our consolidated statements of income and consolidated statements of cash flows, for the years ended December 31, 2019, 2018 and 2017 are as follows:


(in thousands of $)	2019	2018	2017
Statement of income
Interest expense	69,373	61,502	37,383

Statement of cash flows
Net debt repayments	(410,737)	(299,776)	(60,549)
Net debt receipts	144,278	1,061,000	112,000

The assets and liabilities of Hilli LLC⁽¹⁾ that most significantly impacted our consolidated balance sheet as of December 31, 2019 and 2018, are as follows:


(in thousands of $)	2019	2018
Balance sheet
Current assets	64,507	172,554
Non-current assets	1,300,065	1,392,710
Current liabilities	(496,029)	(278,728)
Non-current liabilities	(418,578)	(842,786)

(1) As Hilli LLC is the primary beneficiary of the Hilli Lessor VIE (see above) the Hilli LLC balances include the Hilli Lessor VIE.

The most significant impacts of Hilli LLC VIE's operations on our consolidated statements of income and consolidated statements of cash flows, as of December 31, 2019 and 2018, are as follows:


(in thousands of $)	2019	2018
Statement of income
Liquefaction services revenue	218,096	127,625
Realized and unrealized (losses)/gains on the oil derivative instrument	(26,001)	16,767

Statement of cash flows
Net debt repayments	(243,513)	(30,300)
Net debt receipts	129,454	—

The assets and liabilities of Gimi MS that most significantly impacted our consolidated balance sheet as of December 31, 2019 are as follows:


(in thousands of $)	Notes	2019
Balance sheet
Current assets		24,894
Non-current assets	15	434,248
Current liabilities		(9,697)
Non-current liabilities		(107,902)

The most significant impacts of Gimi MS VIE's operations on our consolidated statement of cash flows, as of December 31, 2019 are as follows:


(in thousands of $)			2019
Statement of cash flows
Additions to asset under development			383,200
Net debt receipts			130,000

Changes in Ownership of a Subsidiary

The Hilli Disposal resulted in the following changes to our ownership interest in our consolidated subsidiary Hilli LLC in our equity:


(in thousands of $)			December 31, 2018
Net loss attributable to stockholders of Golar LNG Limited			(231,428)
Transfer to the non-controlling interests: increase in Golar LNG Limited’s paid-in capital for sale of 1096 Hilli Common Units in July 2018			304,468
Changes from net income attributable to stockholders of Golar LNG Limited and transfers to non-controlling interests			73,040

Schedule of Other Ownership Interests

The ownership interests in Hilli LLC are represented by three classes of units: the Hilli Common Units, the Series A Special Units and the Series B Special Units. After the Hilli Disposal, the ownership structure of Hilli LLC is as follows:


	Percentage ownership interest
	Common Units		Series A Special Units		Series B Special Units
Golar LNG Limited	44.6	%	89.1	%	89.1	%
Golar Partners	50.0	%	—	%	—	%
Keppel	5.0	%	10.0	%	10.0	%
B&V	0.4	%	0.9	%	0.9	%

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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