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Variable Interest Entities ("VIE") (Tables)

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

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.

Schedule of variable interest entities

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)

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)

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

- 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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