XML 47 R17.htm IDEA: XBRL DOCUMENT
v3.19.2

INVESTMENT IN ASSOCIATED COMPANIES | 6 Months Ended
--- | ---
Jun. 30, 2019
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] |
INVESTMENT IN ASSOCIATED COMPANIES | INVESTMENTS IN ASSOCIATED COMPANIES The Company has certain wholly-owned subsidiaries which are accounted for using the equity method, as it has been determined under ASC 810 that they are variable interest entities in which SFL is not the primary beneficiary. At June 30, 2019, June 30, 2018 and December 31, 2018, the Company had the following participation in investments that were recorded using the equity method:
| June 30, 2019 |  |  | June 30, 2018 |  |  | December 31, 2018 |
SFL Deepwater Ltd (“SFL Deepwater”) | 100 | % |  | 100 | % |  | 100 | %
SFL Hercules Ltd (“SFL Hercules”) | 100 | % |  | 100 | % |  | 100 | %
SFL Linus Ltd (“SFL Linus”) | 100 | % |  | 100 | % |  | 100 | %
Summarized balance sheet information of the Company’s wholly-owned equity method investees is as follows:
| As of June 30, 2019
(in thousands of $) | TOTAL |  |  | SFL Deepwater |  |  | SFL Hercules |  |  | SFL Linus |
Current assets | 60,007 |  |  | 24,028 |  |  | 18,848 |  |  | 17,131 |
Non-current assets | 944,994 |  |  | 294,563 |  |  | 282,125 |  |  | 368,306 |
Total assets | 1,005,001 |  |  | 318,591 |  |  | 300,973 |  |  | 385,437 |
Current liabilities | 60,345 |  |  | 18,019 |  |  | 19,088 |  |  | 23,238 |
Non-current liabilities | 910,558 |  |  | 291,692 |  |  | 273,846 |  |  | 345,020 |
Total liabilities | 970,903 |  |  | 309,711 |  |  | 292,934 |  |  | 368,258 |
Total stockholders’ equity | 34,098 |  |  | 8,880 |  |  | 8,039 |  |  | 17,179 |
| As of December 31, 2018
(in thousands of $) | TOTAL |  |  | SFL Deepwater |  |  | SFL Hercules |  |  | SFL Linus |
Current assets | 58,089 |  |  | 19,558 |  |  | 16,858 |  |  | 21,673 |
Non-current assets | 967,954 |  |  | 302,362 |  |  | 290,370 |  |  | 375,222 |
Total assets | 1,026,043 |  |  | 321,920 |  |  | 307,228 |  |  | 396,895 |
Current liabilities | 69,181 |  |  | 18,252 |  |  | 19,487 |  |  | 31,442 |
Non-current liabilities | 931,755 |  |  | 297,060 |  |  | 281,627 |  |  | 353,068 |
Total liabilities | 1,000,936 |  |  | 315,312 |  |  | 301,114 |  |  | 384,510 |
Total stockholders’ equity | 25,107 |  |  | 6,608 |  |  | 6,114 |  |  | 12,385 |
Summarized statement of operations information of the Company’s wholly-owned equity method investees is as follows:
| Six months ended June 30, 2019
(in thousands of $) | TOTAL |  |  | SFL Deepwater |  |  | SFL Hercules |  |  | SFL Linus |
Operating revenues | 33,289 |  |  | 9,817 |  |  | 9,536 |  |  | 13,936 |
Net operating revenues | 33,289 |  |  | 9,817 |  |  | 9,536 |  |  | 13,936 |
Net income | 8,991 |  |  | 2,272 |  |  | 1,925 |  |  | 4,794 |
| Six months ended June 30, 2018
(in thousands of $) | TOTAL |  |  | SFL Deepwater |  |  | SFL Hercules |  |  | SFL Linus |
Operating revenues | 32,271 |  |  | 9,651 |  |  | 9,552 |  |  | 13,068 |
Net operating revenues | 32,271 |  |  | 9,651 |  |  | 9,552 |  |  | 13,068 |
Net income | 7,451 |  |  | 1,964 |  |  | 1,821 |  |  | 3,666 |
| Year ended December 31, 2018
(in thousands of $) | TOTAL |  |  | SFL Deepwater |  |  | SFL Hercules |  |  | SFL Linus |
Operating revenues | 64,572 |  |  | 19,594 |  |  | 19,126 |  |  | 25,852 |
Net operating revenues | 64,410 |  |  | 19,540 |  |  | 19,049 |  |  | 25,821 |
Net income | 14,635 |  |  | 3,973 |  |  | 3,372 |  |  | 7,290 |
SFL Deepwater, SFL Hercules and SFL Linus each own drilling units which have been leased to subsidiaries of Seadrill Limited (“Seadrill”), a related party. Because the main assets of SFL Deepwater, SFL Hercules and SFL Linus are the subject of leases which includes both fixed price call options and a fixed price purchase obligation or put option, it has been determined that these subsidiaries of SFL are variable interest entities in which SFL is not the primary beneficiary. Each subsidiary has entered into a term loan and revolving credit facility as follows:
| Six months ended June 30, 2019
(in thousands of $) | TOTAL |  |  | SFL Deepwater |  |  | SFL Hercules |  |  | SFL Linus |
Loan balance outstanding | 645,918 |  |  | 195,801 |  |  | 210,000 |  |  | 240,117 |
Amount available to draw down | — |  |  | — |  |  | — |  |  | — |
Amount guaranteed by SFL | 266,114 |  |  | 84,697 |  |  | 78,947 |  |  | 102,470 |
| Year ended December 31, 2018
(in thousands of $) | TOTAL |  |  | SFL Deepwater |  |  | SFL Hercules |  |  | SFL Linus |
Loan balance outstanding | 655,186 |  |  | 203,686 |  |  | 210,000 |  |  | 241,500 |
Amount available to draw down | — |  |  | — |  |  | — |  |  | — |
Amount guaranteed by SFL | 266,114 |  |  | 84,697 |  |  | 78,947 |  |  | 102,470 |
In the six months ended June 30, 2019, the six months ended June 30, 2018 and the year ended December 31, 2018, SFL Deepwater, SFL Hercules and SFL Linus paid dividends as follows:
| Six months ended June 30, 2019
(in thousands of $) | TOTAL |  |  | SFL Deepwater |  |  | SFL Hercules |  |  | SFL Linus |
Dividends Paid | — |  |  | — |  |  | — |  |  | — |
| Six months ended June 30, 2018
(in thousands of $) | TOTAL |  |  | SFL Deepwater |  |  | SFL Hercules |  |  | SFL Linus |
Dividends Paid | — |  |  | — |  |  | — |  |  | — |
| Year ended December 31, 2018
(in thousands of $) | TOTAL |  |  | SFL Deepwater |  |  | SFL Hercules |  |  | SFL Linus |
Dividends Paid | — |  |  | — |  |  | — |  |  | — |
SFL Deepwater, SFL Hercules and SFL Linus have loan facilities for which SFL provides limited guarantees, as indicated above. These loan facilities originally contained financial covenants with which both SFL and Seadrill must comply. In September 2017, Seadrill announced that it had entered into a restructuring agreement (the “Restructuring Plan”) with more than 97% of its secured bank lenders, approximately 40% of its bondholders and a consortium of investors led by its largest shareholder, Hemen Holding Ltd (“Hemen”), who is also the largest shareholder in the Company. The Company, SFL Deepwater, SFL Hercules and SFL Linus have also entered into the Restructuring Plan, which has been implemented by way of prearranged Chapter 11 cases. As part of the Restructuring Plan, the financial covenants on Seadrill have been replaced by financial covenants on a newly established subsidiary of Seadrill, Seadrill Rig Holding Company Limited (“RigCo”), who also acts as guarantor for the obligations under the leases for the three drilling units, on a subordinated basis to the senior secured lenders in Seadrill and new secured notes. As at June 30, 2019, SFL and RigCo were in compliance with all of the covenants under these long-term debt facilities.

X
- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_VariableInterestEntityNotPrimaryBeneficiaryDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration