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Variable Interest Entities ("VIE") | 9 Months Ended
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Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Variable Interest Entities ("VIE") | VARIABLE INTEREST ENTITIES ("VIEs") 12.1 Lessor VIEs As of September 30, 2022, we leased one (December 31, 2021: eight) vessel(s) from a VIE as part of sale and leaseback agreements. Following the disposals of certain vessels and associated lessor VIEs to CoolCo, our continuing lessor VIE as of September 30, 2022, is a China State Shipbuilding Corporation entity (the “CSSC” entity). The CSSC entity is a wholly-owned, newly formed special purpose vehicle (“Lessor SPV”). In this transaction, we sold our vessel, the Hilli, and then subsequently leased back the vessel on a bareboat charter for a term of ten years. We have an option to repurchase the vessel at a fixed predetermined amount during its charter period and an obligation to repurchase the vessel at the end of the vessel's lease period. As further discussed in note 11, during the nine months ended September 30, 2022, the Vessel SPA resulted in the disposal of eight of our subsidiaries, being the disponent owners of seven vessels (Golar Seal; Golar Crystal, Golar Bear, Golar Glacier, Golar Snow, Golar Ice and Golar Kelvin). Refer to note 5 to our consolidated financial statements filed with our 2021 Annual Report, for additional details on these Lessor VIEs. A summary of our payment obligations (excluding repurchase options and obligations) under the bareboat charter with the lessor VIE as of September 30, 2022, is shown below:
(in thousands of $) | 2022 (1) | 2023 | 2024 | 2025 | 2026 | 2027+
Hilli (2) | 30,247 | 117,704 | 112,347 | 106,726 | 101,237 | 118,810
(1) For the three months ending December 31, 2022. (2) The payment obligations above include variable rental payments due under the lease based on an assumed LIBOR plus margin. The assets and liabilities of the lessor VIE that most significantly impact our unaudited consolidated balance sheet as of September 30, 2022 and December 31, 2021, are as follows:
(in thousands of $) | September 30, 2022 | December 31, 2021
Assets |  |
Restricted cash and short-term deposits | 17,503 |  | 16,523 |
Liabilities |  |
Debt: |  |
Current portion of long-term debt and short-term debt (1) | (347,097) |  | (380,554) |
Long-term debt (1) | (171,687) |  | (216,313) |
| (518,784) |  | (596,867) |
(1) Where applicable, these balances are net of deferred finance charges. The most significant impact of the lessor VIE's operations on our unaudited consolidated statements of operations, and unaudited consolidated statements of cash flows are as follows:
(in thousands of $) | Nine months ended September 30,
| 2022 | 2021
Continuing operations
Statement of operations |  |
Interest expense | 5,280 |  | 3,995 |
Statement of cash flows |  |
Net debt repayments | (80,492) |  | (64,854) |
Net debt receipts | 2,287 |  | 2,848 |
(in thousands of $) | Nine months ended September 30,
| 2022 | 2021
Discontinued operations
Statement of operations |  |
Interest expense | 3,814 |  | 16,472 |
Statement of cash flows |  |
Net debt repayments | — |  | (132,454) |
Net debt receipts | — |  | 10,073 |
Financing costs paid | — |  | (700) |
12.2 Golar Hilli LLC Following the sale of common units in Hilli LLC, we have retained sole control over the most significant activities and the greatest exposure to variability in residual returns and expected losses from the Hilli. Accordingly, management has concluded that Hilli LLC is a VIE and that we are the primary beneficiary. Summarized financial information of Hilli LLC The assets and liabilities of Hilli LLC(1) that most significantly impact our unaudited consolidated balance sheet are as follows:
(in thousands of $) | September 30, 2022 | December 31, 2021
Balance sheet |  |
Current assets | 118,539 |  | 157,643 |
Non-current assets | 1,662,370 |  | 1,280,217 |
Current liabilities | (384,071) |  | (444,352) |
Non-current liabilities | (223,583) |  | (270,371) |
(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 impact of Hilli LLC VIE's operations on our unaudited consolidated statements of income, and unaudited consolidated statements of cash flows, are as follows:
(in thousands of $) | Nine months ended September 30,
| 2022 | 2021
Statement of operations |  |
Liquefaction services revenue | 178,314 |  | 164,614 |
Realized and unrealized gain on oil and gas derivative instruments | 516,668 |  | 157,119 |
Statement of cash flows |  |
Net debt repayments | (80,492) |  | (64,854) |
Net debt receipts | 2,287 |  | 2,848 |
Cash dividends paid | (39,293) |  | (24,437) |
12.3 Gimi MS Corporation Following the closing of the sale of 30% of the common units of Gimi MS Corporation (“Gimi MS”) to First FLNG Holdings in April 2019, we have determined that (i) Gimi MS is a VIE, (ii) we are the primary beneficiary and retain sole control over the most significant activities and the greatest exposure to variability in residual returns and expected losses from the Gimi. Thus, Gimi MS continues to be consolidated into our financial statements. Summarized financial information of Gimi MS The assets and liabilities of Gimi MS that most significantly impact our consolidated balance sheet are as follows:
(in thousands of $) | September 30, 2022 | December 31, 2021
Balance sheet |  |
Current assets | 12,048 |  | 7,107 |
Non-current assets | 1,153,984 |  | 877,835 |
Current liabilities | (12,837) |  | (18,127) |
Non-current liabilities | (515,732) |  | (389,244) |
The most significant impact of Gimi MS VIE's operations on our unaudited consolidated statements of cash flows, is as follows:
(in thousands of $) | Nine months ended September 30,
| 2022 | 2021
Statement of cash flows |  |
Additions to asset under development | (220,354) |  | (183,305) |
Capitalized financing costs | (2,748) |  | (4,432) |
Net debt receipts | 125,000 |  | 110,000 |
Proceeds from subscription of equity interest | 26,903 |  | 16,872 |

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- Definition The entire disclosure for a variable interest entity (VIE), including but not limited to, judgments and assumptions in determining whether to consolidate and in identifying the primary beneficiary, gain (loss) recognized on the initial consolidation of the VIE, terms of arrangements, amounts and classification of the VIE's assets and liabilities, and the entity's maximum exposure to loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -URI https://asc.fasb.org/topic&trid=2197479 + Details
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