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VARIABLE INTEREST ENTITIES ("VIEs") (Tables)

12 Months Ended

Dec. 31, 2020

Dec. 31, 2019

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, 2020:

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

Golar Bear

June 2020

AVIC

160.0

7 years

100.7

June 2021

45.0

June 2027

(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, 2020, are shown below:


(in thousands of $)	2021	2022	2023	2024	2025	2026+
Golar Glacier	17,100	17,100	17,100	12,884	—	—
Golar Kelvin	17,100	17,100	17,100	15,695	—	—
Golar Snow	17,100	17,100	17,100	15,695	—	—
Golar Ice	17,100	17,100	17,100	17,147	1,452	—
Golar Tundra (1)(2)	80,203	—	—	—	—	—
Golar Seal (2)	—	68,621	—	—	—	—
Golar Crystal (1)	9,903	9,932	9,951	9,979	9,982	12,499
Hilli (1)	102,874	99,645	96,416	93,265	89,958	190,590
Golar Bear (1)	13,923	13,490	13,058	12,635	12,193	14,081

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

(2) The payment obligations relating to the Golar Tundra and Golar Seal have been presented in 2021 and 2022 even though the maturities of the lease obligations are in November 2025 and March 2026, due to the call option and put option maturing in June 2021 and January 2022, respectively (note 18).

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, 2020 and 2019, are as follows:


(in thousands of $)	Golar Glacier	Golar Kelvin	Golar Snow	Golar Ice	Golar Tundra	Golar Seal	Golar Crystal	Hilli	Golar Bear	2020	2019
Assets										Total	Total
Restricted cash and short-term deposits (note 12)	69	11	1,467	1,521	—	3,432	4,990	16,670	8,715	36,875	34,947

Liabilities
Debt:
Current portion of long-term debt and short-term debt (1)	(110,625)	(128,563)	(111,108)	(83,857)	(10,215)	—	(8,220)	(413,394)	—	(865,982)	(963,005)
Long-term interest bearing debt - non-current portion (1)	—	—	—	—	(79,235)	(89,752)	(74,984)	(277,487)	(103,661)	(625,119)	(617,124)
	(110,625)	(128,563)	(111,108)	(83,857)	(89,450)	(89,752)	(83,204)	(690,881)	(103,661)	(1,491,101)	(1,580,129)

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

The most significant impact of the lessor VIE's operations on our consolidated statements of operations and consolidated statements of cash flows, for the years ended December 31, 2020, 2019 and 2018 are as follows:


(in thousands of $)	2020	2019	2018
Statement of income
Interest expense	34,733	69,373	61,502

Statement of cash flows
Net debt repayments	(550,663)	(410,737)	(299,776)
Net debt receipts	459,707	144,278	1,061,000

The assets and liabilities of Hilli LLC(1) that most significantly impacted our consolidated balance sheet as of December 31, 2020 and 2019, are as follows:


(in thousands of $)	2020	2019
Balance sheet
Current assets	65,629	64,507
Non-current assets	1,203,805	1,300,065
Current liabilities	(447,701)	(496,029)
Non-current liabilities	(345,058)	(418,578)

(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 operations and consolidated statements of cash flows, as of December 31, 2020 and 2019, are as follows:


(in thousands of $)	2020	2019
Statement of income
Liquefaction services revenue	226,061	218,096
Realized and unrealized losses on the oil derivative instrument	(42,561)	(26,001)

Statement of cash flows
Net debt repayments	(322,304)	(243,513)
Net debt receipts	230,721	129,454

The assets and liabilities of Gimi MS that most significantly impacted our consolidated balance sheet as of December 31, 2020 and 2019, are as follows:


(in thousands of $)	Notes	2020	2019
Balance sheet
Current assets		15,505	24,894
Non-current assets	15	658,247	434,248
Current liabilities		(33,844)	(9,697)
Non-current liabilities		(277,932)	(107,902)

The most significant impacts of Gimi MS VIE's operations on our consolidated statement of cash flows, as of December 31, 2020 and 2019, are as follows:


(in thousands of $)	2020	2019
Statement of cash flows
Additions to asset under development	217,590	376,276
Financing costs paid	(11,302)	(20,938)
Net debt receipts	170,000	130,000
Proceeds from subscription of equity interest	11,081	115,246

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 loss 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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