Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2015shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | GOLAR LNG LTD |
Entity Central Index Key | 1,207,179 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 93,546,663 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | FY |
Document Type | 20-F/A |
Amendment Flag | true |
Document Period End Date | Dec. 31, 2015 |
Amendment Description | Golar LNG Limited is filing this Amendment No.1 to the Annual Report on Form 20-F for the fiscal year ended December 31, 2015 originally filed with the Securities and Exchange Commission on May 3, 2016 (“2014 Form 20-F”) for the purpose of: · Restating our investment in Golar LNG Partners L.P. in light of recent clarifications contained in published comment letters from the Staff of the Securities and Exchange Commission (“SEC”); and · Indirect adjustments related to sales to Golar LNG Partners L.P. Other than as expressly set forth above, in our Explanatory Note and in note 35 of the amended consolidated financial statements, this Form 20-F/A does not, and does not purport to, amend, update or restate the information in any other item of the 2015 Form 20-F, or reflect any events that have occurred after the 2015 Form 20-F was originally filed. |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Operating revenues | ||||
Time and voyage charter revenues | $ 90,127 | $ 95,399 | $ 90,558 | |
Vessel and other management fees | [1] | 12,547 | 10,756 | 9,270 |
Total operating revenues | 102,674 | 106,155 | 99,828 | |
Operating expenses | ||||
Vessel operating expenses | 56,347 | 49,570 | 43,750 | |
Voyage, charter-hire and commission expenses | [1] | 69,042 | 27,340 | 14,259 |
Administrative expenses | 33,526 | 19,267 | 22,952 | |
Depreciation and amortization | 73,732 | 49,811 | 36,871 | |
Impairment of long-term assets | 1,957 | 500 | 500 | |
Total operating expenses | 234,604 | 146,488 | 118,332 | |
Gain on disposals to Golar Partners | [1] | 102,406 | 43,287 | 82,270 |
Other operating loss | 0 | (6,387) | 0 | |
Impairment of vessel held-for-sale | (1,032) | 0 | 0 | |
Other operating gains - LNG trade | 0 | 1,317 | 0 | |
Loss on disposal of vessel held-for-sale | (5,824) | 0 | 0 | |
Operating (loss) income | (36,380) | (2,116) | 63,766 | |
Total other non-operating (expense) income | (27) | 272 | (2,482) | |
Financial income (expense) | ||||
Interest income | [1] | 6,896 | 716 | 3,549 |
Interest expense | [1] | (62,911) | (14,474) | 0 |
Other financial items, net | (118,604) | (74,094) | 38,219 | |
Net financial (expense) income | (174,619) | (87,852) | 41,768 | |
(Loss) income before equity in net earnings of affiliates, income taxes and non-controlling interests | (211,026) | (89,696) | 103,052 | |
Income taxes | 3,053 | 1,114 | 3,404 | |
Equity in net earnings of affiliates | 55,985 | 42,220 | 3,099 | |
Net (loss) income | (151,988) | (46,362) | 109,555 | |
Net income attributable to non-controlling interests | (19,158) | (1,655) | 0 | |
Net (loss) income attributable to Golar LNG Ltd | $ (171,146) | $ (48,017) | $ 109,555 | |
Per common share amounts: | ||||
(Loss) earnings - Basic (in dollars per share) | $ (1.83) | $ (0.55) | $ 1.36 | |
(Loss) earnings - Diluted (in dollars per share) | (1.83) | (0.55) | 1.28 | |
Cash dividends declared and paid (in dollars per share) | $ 1.35 | $ 1.80 | $ 1.35 | |
[1] | This includes amounts arising from transactions with related parties (see note 31). |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
COMPREHENSIVE INCOME | ||||
Net (loss) income | $ (151,988) | $ (46,362) | $ 109,555 | |
Other comprehensive income: | ||||
Gain (loss) associated with pensions, net of tax | 2,851 | (2,520) | 5,078 | |
Net (loss) gain on qualifying cash flow hedging instruments | [1] | (4,440) | 6,669 | 9,015 |
Other comprehensive (loss) income | (1,589) | 4,149 | 14,093 | |
Comprehensive (loss) income | (153,577) | (42,213) | 123,648 | |
Comprehensive (loss) income attributable to: | ||||
Stockholders of Golar LNG Limited | (172,735) | (43,868) | 123,648 | |
Non-controlling interests | 19,158 | 1,655 | 0 | |
Comprehensive (loss) income | $ (153,577) | $ (42,213) | $ 123,648 | |
[1] | Includes share of net loss of $4.8 million, $nil and net gain of $4.9 million on qualifying cash flow hedging instruments held by an affiliate for the years ended December 31, 2015, 2014 and 2013, respectively. Refer to note 29. |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net gain (loss) on qualifying cash flow hedging instruments held by an affiliate | $ (4.8) | $ 0 | $ 4.9 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash and cash equivalents | $ 105,235 | $ 191,410 |
Restricted cash and short-term receivables | 228,202 | 74,162 |
Trade accounts receivable | 4,474 | 4,419 |
Other receivables, prepaid expenses and accrued income | 24,753 | 17,498 |
Amounts due from related parties | 0 | 9,967 |
Short-term debt due from related party | 0 | 20,000 |
Inventories | 8,650 | 8,317 |
Vessel held-for-sale | 0 | 132,110 |
Assets held-for-sale | 267,034 | 280,746 |
Total current assets | 638,348 | 738,629 |
Long-term assets | ||
Restricted cash | 180,361 | 425 |
Investments in affiliates | 541,565 | 746,263 |
Cost method investment | 7,347 | 7,347 |
Newbuildings | 13,561 | 344,543 |
Asset under development | 501,022 | 345,205 |
Vessels and equipment, net | 2,336,144 | 1,648,888 |
Other non-current assets | 50,850 | 68,442 |
Total assets | 4,269,198 | 3,899,742 |
Current liabilities | ||
Current portion of long-term debt and short-term debt, net of deferred finance charges | 491,398 | 112,853 |
Trade accounts payable | 53,281 | 10,811 |
Accrued expenses | 53,333 | 31,124 |
Amounts due to related parties | 7,128 | 0 |
Other current liabilities | 148,077 | 46,417 |
Liabilities held-for-sale | 201,213 | 160,192 |
Total current liabilities | 954,430 | 361,397 |
Long-term liabilities | ||
Long-term debt, net of deferred finance charges | 1,344,509 | 1,241,133 |
Other long-term liabilities | 54,080 | 59,790 |
Total liabilities | 2,353,019 | 1,662,320 |
Commitments and Contingencies | ||
EQUITY | ||
Share capital 93,546,663 common shares of $1.00 each issued and outstanding (2014: 93,414,672) | 93,547 | 93,415 |
Treasury shares | (12,269) | 0 |
Additional paid-in capital | 1,317,806 | 1,307,087 |
Contributed surplus | 200,000 | 200,000 |
Accumulated other comprehensive (loss) gain | (12,592) | (6,579) |
Retained earnings | 308,874 | 641,844 |
Total stockholders' equity | 1,895,366 | 2,235,767 |
Non-controlling interests | 20,813 | 1,655 |
Total equity | 1,916,179 | 2,237,422 |
Total liabilities and equity | $ 4,269,198 | $ 3,899,742 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
EQUITY | |||
Common shares, shares issued (in shares) | 93,546,663 | 93,414,672 | 80,579,295 |
Common shares, shares outstanding (in shares) | 93,546,663 | 93,414,672 | 80,579,295 |
Common shares, par value (in dollars per share) | $ 1 | $ 1 | $ 1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Operating activities | ||||
Net (loss) income | $ (151,988) | $ (46,362) | $ 109,555 | |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||||
Depreciation and amortization | 73,732 | 49,811 | 36,871 | |
Amortization of deferred charges and debt guarantee | (2,073) | 2,459 | 1,120 | |
Equity in net earnings of affiliates | (55,985) | (42,220) | (3,099) | |
Gain on disposals to Golar Partners | [1] | (102,406) | (43,287) | (82,270) |
Loss on sale of vessel | 5,824 | 0 | 0 | |
Impairment of vessel held-for-sale | 1,032 | 0 | 0 | |
Dividend income from available-for-sale and cost investments recognized in operating income | 0 | 0 | (9) | |
Dividends received | 52,800 | 61,967 | 64,198 | |
Gain on disposal of available-for-sale securities | 0 | 0 | (100) | |
Gain on disposal of high yield bond in Golar Partners | 0 | 0 | (841) | |
Compensation cost related to stock options | 4,125 | 1,619 | 500 | |
Net foreign exchange losses (gain) | 2,404 | 1,314 | (277) | |
Amortization of deferred tax benefits on intra-group transfers | (3,488) | (3,488) | (3,487) | |
Impairment of long-term assets | 1,957 | 500 | 500 | |
Impairment of loan receivable | 15,010 | 0 | 0 | |
Drydocking expenditure | (10,405) | (8,947) | (4,248) | |
Change in assets and liabilities, net of effects from the sale of Golar Eskimo, Golar Igloo and Golar Maria: | ||||
Restricted cash | (280,000) | 0 | 0 | |
Trade accounts receivable | 911 | (10,533) | 304 | |
Inventories | (2,252) | (809) | (10,137) | |
Prepaid expenses, accrued income and other assets | (6,361) | 27,612 | (50,877) | |
Amounts due from/to related companies | 15,259 | (6,003) | 3,497 | |
Trade accounts payable | 8,944 | (1,746) | 2,525 | |
Accrued expenses | 21,479 | 13,802 | 3,349 | |
Other current liabilities | [2] | 66,832 | 29,184 | 648 |
Net cash (used in) provided by operating activities | (344,649) | 24,873 | 67,722 | |
Investing activities | ||||
Additions to vessels and equipment | (26,110) | (2,359) | (802) | |
Additions to newbuildings | (559,667) | (1,150,669) | (733,353) | |
Additions to asset under development | (111,572) | (313,645) | 0 | |
Investment in subsidiary, net of cash acquired | (16) | 0 | 0 | |
Proceeds from disposal of investments in available-for-sale securities | 207,428 | 0 | 99,210 | |
Additions to investment in affiliates | (5,023) | 0 | (12,400) | |
Additions to investments | 0 | 0 | (5,649) | |
Short-term loan granted to third party | (2,000) | 0 | (11,960) | |
Repayment of short-term loan granted to third party | 400 | 0 | 2,469 | |
Proceeds from disposals to Golar Partners, net of cash disposed | 226,872 | 155,319 | 119,927 | |
Proceeds from disposal of high yield bond in Golar Partners | 0 | 0 | 34,483 | |
Short-term loan granted to Golar Partners | 0 | (20,000) | (20,000) | |
Additions to other long-term assets | 0 | (49,873) | 0 | |
Repayment of short-term loan granted to Golar Partners | 20,000 | 0 | 20,000 | |
Proceeds from disposal of fixed assets | 18,987 | 0 | 0 | |
Restricted cash and short-term receivables | (25,255) | (48,043) | (24,992) | |
Net cash used in investing activities | (255,956) | (1,429,270) | (533,067) | |
Financing activities | ||||
Proceeds from short-term and long-term debt (including related parties) | 918,801 | 1,222,746 | 306,358 | |
Repayments of short-term and long-term debt (including related parties) | (215,363) | (239,903) | (9,400) | |
Financing costs paid | (23,266) | (18,672) | (22,612) | |
Cash dividends paid | (121,358) | (155,996) | (108,976) | |
Proceeds from exercise of share options | 225 | 1,338 | 608 | |
Purchase of treasury shares | (12,269) | 0 | 0 | |
Proceeds from issuance of equity | 0 | 660,947 | 0 | |
Restricted cash and short-term receivables | (32,340) | 0 | 0 | |
Net cash provided by financing activities | 514,430 | 1,470,460 | 165,978 | |
Net (decrease) increase in cash and cash equivalents | (86,175) | 66,063 | (299,367) | |
Cash and cash equivalents at beginning of period | 191,410 | 125,347 | 424,714 | |
Cash and cash equivalents at end of period | 105,235 | 191,410 | 125,347 | |
Cash paid during the year for: | ||||
Interest paid, net of capitalized interest | 37,964 | 11,372 | 0 | |
Income taxes paid | $ 1,278 | $ 1,372 | $ 1,322 | |
[1] | This includes amounts arising from transactions with related parties (see note 31). | |||
[2] | Includes accretion of discount on convertible bonds of $5.3 million, $5.0 million and $4.7 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Consolidated Statements of Cas8
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Cash Flows [Abstract] | |||
Accretion of interest on bond | $ 5.3 | $ 5 | $ 4.7 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Share Capital | Treasury Shares | Additional Paid-in Capital | Contributed Surplus | Accumulated Other Comprehensive Loss | Accumulated Earnings | Non-controlling Interest |
Balance at beginning of the period at Dec. 31, 2012 | $ 1,755,947 | $ 80,504 | $ 0 | $ 654,042 | $ 200,000 | $ (24,821) | $ 846,222 | $ 0 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net (loss) income | 109,555 | 109,555 | ||||||
Dividends | (108,976) | (108,976) | ||||||
Exercise of share options | 608 | 76 | 1,476 | (944) | ||||
Grant of share options | 500 | 500 | ||||||
Other comprehensive income (loss) | 14,093 | 14,093 | ||||||
Balance at end of the period at Dec. 31, 2013 | 1,771,727 | 80,580 | 0 | 656,018 | 200,000 | (10,728) | 845,857 | 0 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net (loss) income | (46,362) | (48,017) | 1,655 | |||||
Dividends | (155,996) | (155,996) | ||||||
Exercise of share options | 1,338 | 185 | 1,153 | |||||
Grant of share options | 1,619 | 1,619 | ||||||
Net proceeds from issuance of shares | 660,947 | 12,650 | 648,297 | |||||
Other comprehensive income (loss) | 4,149 | 4,149 | ||||||
Balance at end of the period at Dec. 31, 2014 | 2,237,422 | 93,415 | 0 | 1,307,087 | 200,000 | (6,579) | 641,844 | 1,655 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net (loss) income | (151,988) | (171,146) | 19,158 | |||||
Dividends | (161,824) | (161,824) | ||||||
Exercise of share options | 225 | 132 | 93 | |||||
Grant of share options | 6,358 | 6,358 | ||||||
Forfeiture of share options | (2,521) | (2,521) | ||||||
Cancellation of share options | 786 | 786 | ||||||
Transfer of additional paid-in capital | 1,579 | 6,003 | (4,424) | |||||
Other comprehensive income (loss) | (1,589) | (1,589) | ||||||
Treasury shares | (12,269) | (12,269) | ||||||
Balance at end of the period at Dec. 31, 2015 | $ 1,916,179 | $ 93,547 | $ (12,269) | $ 1,317,806 | $ 200,000 | $ (12,592) | $ 308,874 | $ 20,813 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | 1. GENERAL Golar LNG Limited (the "Company" or "Golar") was incorporated in Hamilton, Bermuda on May 10, 2001 for the purpose of acquiring the liquefied natural gas ("LNG") shipping interests of Osprey Maritime Limited ("Osprey"), which was owned by World Shipholding Limited ("World Shipholding"). As of December 31, 2015, our fleet comprises of sixteen LNG carriers (including the Golar Grand chartered in from the Golar Partners) and one Floating Storage Regasification Unit ("FSRU"), and, under management agreements, operate Golar LNG Partners LP's ("Golar Partners" or the "Partnership") fleet of four LNG carriers (which includes the Golar Grand ) and six FSRUs. In addition, we have one new building commitment for the construction of a FSRU, which is expected to be delivered in the last quarter of 2017. In July 2014, we ordered our first Floating Liquefaction Natural Gas vessel ("FLNG") based on the conversion of our existing LNG carrier, the Hilli. The Hilli is currently undergoing its FLNG conversion with an expected completion and redelivery date in 2017. We signed agreements for the conversion of the LNG carriers, the Gimi and the Gandria to FLNGs in December 2014 and July 2015, respectively. However, we are yet to lodge our final notices to proceed on either of these vessels. The accompanying consolidated financial statements have been restated. The nature of the restatements and the effect on the financial statement line items are discussed in note 35 of the notes to these consolidated financial statements. In addition, certain disclosures in the following notes have been restated to be consistent with the consolidated financial statements. Except for the restated information in note 35 the consolidated financial statements continue to present information as of the date of the Form 20-F for the year ended December 31, 2015. Other events occurring after the filing of the Original Filing or other disclosures necessary to reflect subsequent events have been or will be addressed in other reports filed with or furnished to the SEC subsequent to the date of the Original Filing. We are listed on the Nasdaq under the symbol: GLNG. As used herein and unless otherwise required by the context, the terms "Golar", the "Company", "we", "our" and words of similar import refer to Golar or anyone or more of its consolidated subsidiaries, or to all such entities. Golar LNG Partners LP ("Golar Partners" or the "Partnership") Golar Partners is our former subsidiary, which is an owner and operator of FSRUs and LNG carriers under long-term charters (defined as five years or longer from the date of the dropdown). In April 2011, we completed the initial public offering ("IPO") of Golar Partners and its listing on the Nasdaq stock exchange. As a result of the offering, our ownership interest was reduced to 65.4% (including our 2% general partner interest). Our ownership interest in Golar Partners as of December 31, 2015 and 2014 is 30.7% and 41.4% , respectively. Under the provisions of the partnership agreement, the general partner irrevocably delegated the authority to the Partnership's board of directors to have the power to oversee and direct the operations of, manage and determine the strategies and policies of the Partnership. During the period from the IPO in April 2011 until the time of Golar Partners' first Annual General Meeting (''AGM'') on December 13, 2012, we retained the sole power to appoint, remove and replace all members of Golar Partners' board of directors. From the first Golar Partners' AGM, the majority of the board members became electable by the common unitholders and accordingly, from this date, we no longer retain the power to control the board of Golar Partners. As a result, from December 13, 2012, Golar Partners has been considered as an affiliate entity and not as our controlled subsidiary. Going Concern The financial statements have been prepared on a going concern basis. Our convertible bonds are due to mature in March 2017. As of December 31, 2015, the debt outstanding in respect of our convertible bonds was $243.4 million . Accordingly, we are progressing discussions with various financial institutions to explore our financing options. Several proposals including a possible extension have been tabled by both third parties and existing bondholders. Furthermore, other options being considered take into account that the bonds are currently secured by 13.0 million of our holdings in the subordinated units of Golar Partners. Our total holding of 15.9 million subordinated units are due to convert to common units in the second quarter of 2016. In addition, to address our anticipated working capital requirements over the next 12 months, we are currently in advanced stages of negotiations with financial institutions for the refinancing of an additional two vessels, which could release a further $100 million to liquidity.We may also look to refinance our other vessels. While we have no reason to believe that we will not be able to obtain the necessary funds from these refinancings, we cannot be certain that the proposed new credit facilities will be executed in time or at all. In addition, if market and economic conditions are favorable, we may also consider issuance of corporate debt. We are also considering the separation of a combined downstream business and FSRUs. The aim of this will be to explore and develop new LNG based power solutions. Such a concept could involve the sale of part of our interest in such franchise. This initiative has been discussed with various potential stakeholders who in turn have shown significant interest. Accordingly, we believe that, based on our plans as outlined above, we will have sufficient facilities to meet our anticipated liquidity requirements for our business for at least the next twelve months as of December 31, 2015 and that our working capital is sufficient for our present requirements. While we cannot be certain of execution or timing of all or any of the above financings, we are confident of our ability to do so. We have a proven track record of successfully financing and refinancing our vessels, even in the absence of term charter coverage. Recent successes include the refinancing of the Seal facility in March 2016 and the Viking facility in December 2015. Furthermore, we have performed stress testing of our forecast cash reserves under extreme and largely theoretical scenarios, which include assumptions such as $ nil revenue contributions from our fleet, full operating costs and maintaining our dividend payments based on our most recent payout, and accordingly are confident of our ability to manage through the near term cash requirements. |
ACCOUNTING POLICIES (Restated)
ACCOUNTING POLICIES (Restated) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
ACCOUNTING POLICIES (Restated) | 2. ACCOUNTING POLICIES (Restated) Basis of accounting and presentation The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. The accompanying consolidated financial statements present our financial position, our consolidated subsidiaries and our interest in associated entities. The year ended December 31, 2015 includes an out of period correction of $1.6 million additional expense captured in other financial items in the income statement, a decrease to accumulated other comprehensive income of $4.4 million , and an increase to additional paid in capital of $6 million . Management believes this out of period correction is not material to the annual consolidated financial statements for the year ended December 31, 2015, or any previously issued financial statements. The accounting policies set out below have been applied consistently to all periods in these consolidated financial statements, unless otherwise noted. Principles of consolidation Investments in companies in which we directly or indirectly hold more than 50% of the voting control are consolidated in the financial statements, as well as certain variable interest entities in which the Company is deemed to be subject to a majority of the risk of loss from the variable interest entity's activities or entitled to receive a majority of the entity's residual returns, or both. All inter-company balances and transactions are eliminated. The non-controlling interests of subsidiaries were included in the Consolidated Balance Sheets and Statements of Operations as "Non-controlling interests". A variable interest entity ("VIE"), is defined by the accounting standard as a legal entity where either (a) equity interest holders as a group lack the characteristics of a controlling financial interest, including decision making ability and an interest in the entity's residual risks and rewards, or (b) the equity holders have not provided sufficient equity investment to permit the entity to finance its activities without additional subordinated financial support, or (c) the voting rights of some investors are not proportional to their obligations to absorb the expected losses of the entity, their rights to receive the expected residual returns of the entity, or both and substantially all of the entity's activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. A party that is a variable interest holder is required to consolidate a VIE if the holder has both (a) the power to direct the activities that most significantly impact the entity's economic performance and (b) the obligation to absorb losses that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. Business combinations Business combinations of subsidiaries are accounted for under the acquisition method. On acquisition, the identifiable assets, liabilities and contingent liabilities of a subsidiary are measured at their fair values at the date of acquisition. Any excess of the cost of acquisition over the fair values of the identifiable net assets acquired is recognized as goodwill. Any deficiency of the cost of acquisition below the fair values of the identifiable net assets acquired (i.e. bargain purchase) is credited to the statement of operations in the period of acquisition. The consideration transferred for an acquisition is measured at fair value of the consideration given. Acquisition related costs are expensed as incurred. Identifiable assets acquired and liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The results of subsidiary undertakings are included from the date of acquisition. Reporting currency The consolidated financial statements are stated in U.S dollars. Our functional currency is the U.S. dollar as the majority of the revenues are received in U.S. dollars and a majority of our expenditures are made in U.S. dollars. Our reporting currency is U.S. dollars. Transactions in other currencies during the year are converted into U.S. dollars at the rates of exchange in effect at the date of the transaction. Non-monetary assets and liabilities are converted using historical rates of exchange. At the balance sheet date, monetary assets and liabilities that are denominated in currencies other than the U.S. dollar are translated to reflect the year-end exchange rates. Resulting gains or losses are reflected separately in the accompanying consolidated statements of operations. Use of estimates The preparation of financial statements in accordance with United States Generally Accepted Accounting Principles ("US GAAP") requires that management make estimates and assumptions affecting the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. As of December 31, 2015, we leased five vessels under finance leases from wholly owned special purpose vehicles (“lessor SPVs”) of financial institutions in connection with our sale and leaseback transactions. While we do not hold any equity investments in these lessor SPVs, we have determined that we are the primary beneficiary of these entities and accordingly, we are required to consolidate these VIEs into our financial results. The key line items impacted by our consolidation of these VIEs are short-term and long-term debt, restricted cash and interest expense. In consolidating these lessor VIEs, on a quarterly basis, we must make assumptions regarding the debt amortization profile and the interest rate to be applied against the VIEs’ debt principal. Our estimates are therefore dependent upon the timeliness of receipt and accuracy of financial information provided by these lessor VIE entities. Upon receipt of the audited annual financial statements of the lessor VIEs, we will make a true-up adjustment for any material differences. Fair value measurements We account for fair value measurement in accordance with the accounting standards guidance using fair value to measure assets and liabilities. The guidance provides a single definition of fair value, together with a framework for measuring it, and requires additional disclosure about the use of fair value to measure assets and liabilities. Revenue and related expense recognition Revenues include minimum lease payments under time charters, fees for repositioning vessels and gross pool revenues. Revenues generated from time charters, which we classify as operating leases, are recorded over the term of the charter as service is provided. However, we do not recognize revenue if a charter has not been contractually committed to by a customer and ourselves, even if the vessel has discharged its cargo and is sailing to the anticipated load port on its next voyage. Repositioning fees (which are included in time charter revenue) received in respect of time charters are recognized at the end of the charter when the fee becomes fixed and determinable. However, where there is a fixed amount specified in the charter, which is not dependent upon redelivery location, the fee will be recognized evenly over the term of the charter. Where a vessel undertakes multiple single voyage time charters, revenue is recognized, including the repositioning fee if fixed and determinable, on a discharge-to-discharge basis. Under this basis, revenue is recognized evenly over the period from departure of the vessel from its last discharge port to departure from the next discharge port. For arrangements where operating costs are borne by the charterer on a pass through basis, the pass through of operating costs is reflected in revenue and expenses. Pool revenues are recognized on a gross basis representing time charter revenues earned by our vessels participating in the pool. Revenue is recognized on a monthly basis, when the vessel is made available and services are provided to the charterer during the period, the amount can be estimated reliably and collection of the related revenue is reasonably assured. Revenues generated from management fees are recorded rateably over the term of the contract as services are provided. Under time charters, voyage expenses are generally paid by our customers. Voyage related expenses, principally fuel, may also be incurred when positioning or repositioning the vessel before or after the period of time charter and during periods when the vessel is not under charter or is offhire, for example when the vessel is undergoing repairs. These expenses are recognized as incurred. Vessel operating expenses, which are recognized when incurred, include crewing, repairs and maintenance, insurance, stores, lube oils, communication expenses and third party management fees. Bunkers consumption represents mainly bunkers consumed during unemployment and off-hire. Furthermore in relation to the vessels participating in the pool, voyage expenses and commissions include a net allocation from the pool participants' vessels less the other participants' share of the net revenues earned by our vessels included in the pool. Each participants' share of the net pool revenues is based on the number of pool points attributable to its vessels and the number of days such vessels participated in the pool. Cash and cash equivalents We consider all demand and time deposits and highly liquid investments with original maturities of three months or less to be equivalent to cash. Restricted cash and short-term receivables Restricted cash and short-term receivables consist of bank deposits which may only be used to settle certain pre-arranged loans, bid bonds in respect of tenders for projects we have entered into, cash collateral required for certain swaps and other claims which require us to restrict cash. Trade receivables Trade receivables are presented net of allowances for doubtful balances. At each balance sheet date, all potentially uncollectible accounts are assessed individually for purposes of determining the appropriate provision for doubtful accounts. Inventories Inventories, which are comprised principally of fuel, lubricating oils and ship spares, are stated at the lower of cost or market value. Cost is determined on a first-in, first-out basis. Investments in affiliates Affiliates are entities over which we generally have between 20% and 50% of the voting rights, or over which we have significant influence, but over which we do not exercise control, or have the power to control the financial and operational policies. Investments in these entities are accounted for by the equity method of accounting. This also extends to entities in which we hold a majority ownership interest, but we do not control, due to the participating rights of non-controlling interests. Under this method, we record an investment in the common stock (or “in-substance common stock”) of an affiliate at cost (or fair value if a consequence of deconsolidation), and adjust the carrying amount for our share of the earnings or losses of the affiliate subsequent to the date of the investment and report the recognized earnings or losses in income. Dividends received from an affiliate in connection with their common stock interest reduce the carrying amount of the investment. The excess, if any, of the purchase price over book value of our investments in equity method affiliates, or basis difference, is included in the consolidated balance sheet as "Investment in affiliates". We allocate the basis difference across the assets and liabilities of the affiliate, with the residual assigned to goodwill. The basis difference will then be amortized through the statement of operations as part of the equity method of accounting. When our share of losses in an affiliate equals or exceeds its interest, we do not recognize further losses, unless the Company has incurred obligations or made payments on behalf of the affiliate. Investments in Golar Partners are accounted for under the equity accounted method in accordance with ASC 323-30-25-1 and ASC 323-30-S99-1. We recognize gains and losses in earnings for the issuance of shares by our affiliates, provided that the issuance of such shares qualifies as a sale of such shares. Cost-method investments Cost-method investments are initially recorded at cost and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Dividends received from cost method investments are recorded in the consolidated statement of operations in the line item "Dividend income". Newbuildings Newbuilds are stated at cost. All pre-delivery costs incurred during the construction of newbuilds, including purchase installments, interest, supervision and technical costs, are capitalized. Capitalization ceases and depreciation commences when the vessel is available for its intended use. Vessels and equipment Vessels and equipment are stated at cost less accumulated depreciation. The cost of vessels and equipment less the estimated residual value is depreciated on a straight-line basis over the assets' remaining useful economic lives. Depreciation includes depreciation on all owned vessels and amortization of vessels accounted for as capital leases. Management estimates the residual values of our vessels based on a scrap value cost of steel and aluminium times the weight of the ship noted in lightweight ton. Residual values are periodically reviewed and revised to recognize changes in conditions, new regulations or other reasons. Refurbishment costs incurred during the period are capitalized as part of vessels and equipment and depreciated over the vessels' remaining useful economic lives. Refurbishment costs are costs that appreciably increase the capacity, or improve the efficiency or safety of vessels and equipment. Drydocking expenditures are capitalized when incurred and amortized over the period until the next anticipated drydocking, which is generally between two and five years. For vessels that are newly built or acquired, we have adopted the "built-in overhaul" method of accounting. The built-in overhaul method is based on the segregation of vessel costs into those that should be depreciated over the useful life of the vessel and those that require drydocking at periodic intervals to reflect the different useful lives of the components of the assets. The estimated cost of the drydocking component is amortized until the date of the first drydocking following acquisition, upon which the cost is capitalized and the process is repeated. When a vessel is disposed, any unamortized drydocking expenditure is charged against income in the period of disposal. Vessel reactivation costs incurred on vessels leaving lay-up include both costs of a capital and expense nature. The capital costs include the addition of new equipment or modifications to the vessel which enhance or increase the operational efficiency and functionality of the vessel. These expenditures are capitalized and depreciated over the remaining useful life of the vessel. Expenditures of a routine repairs and maintenance nature that do not improve the operating efficiency or extend the useful lives of the vessels are expensed as incurred as mobilization costs. Useful lives applied in depreciation are as follows: Vessels 40 to 50 years Deferred drydocking expenditure two to five years Office equipment and fittings three to six years Asset under development An asset is classified as asset under development when there is a firm commitment from us to proceed with the construction of the asset and the likelihood of conversion is virtually certain to occur. An asset under development is classified as non-current and is stated at cost. All costs incurred during the construction of the asset, including conversion installment payments, interest, supervision and technical costs are capitalized. Interest costs directly attributable to construction of the asset is added to the cost of the asset. Capitalization ceases and depreciation commences once the asset is completed and available for its intended use. Held-for-sale assets and disposal group Individual assets or subsidiaries to be disposed of, by sale or otherwise in a single transaction, are classified as “held-for-sale” if the following criteria are met at the period end: • Management, having the authority to approve the action, commits to a plan to sell the vessel; • The non-current asset or subsidiaries are available for immediate sale in its present condition subject only to terms that are usual and customary for such sales; • An active program to locate a buyer and other actions required to complete the plan to sell have been initiated; • The sale is highly probable; and • The transfer is expected to qualify for recognition as a completed sale, within one year. The term probable refers to a future sale that is likely to occur, the asset or subsidiaries (disposal group) is being actively marketed for sale at a price that is reasonable in relation to its current fair value and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. A disposal group is classified as discontinued operations if the following criteria are met: (1) a component of an entity or group of components that has been disposed of by sale, disposed of other than by sale or is classified as held-for-sale that represents a strategic shift that has or will have a major effect on our financial results or (2) an acquired business or non-profit activity (the entity to be sold) that is classified as held-for-sale on the date of the acquisition. Assets or subsidiaries held for sale are carried at the lower of their carrying amount and fair value less costs to sell. Interest and other expenses attributable to the liabilities of a disposal group classified as held-for-sale shall continue to be accrued. On classification as held-for-sale, the assets are no longer depreciated. Impairment of long-term assets We continually monitor events and changes in circumstances that could indicate carrying amounts of long-term assets may not be recoverable. When such events or changes in circumstances are present, we assess the recoverability of long-term assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, we recognize an impairment loss based on the excess of the carrying amount over the fair value of the assets. Other-than temporary impairment of investments Where there are indicators that fair value is below carrying value of our investments, we will evaluate these for other-than-temporary impairment. Consideration will be given to (1) the length of time and the extent to which fair value is below carrying value, (2) the financial condition and near-term prospects of the investee, and (3) our intent and ability to hold the investment until any anticipated recovery. Where determined other-than-temporary impairment, we will recognize an impairment loss in the period. Interest costs capitalized Interest costs are expensed as incurred except for interest costs that are capitalized. Interest is capitalized on all qualifying assets that require a period of time to get them ready for their intended use. Qualifying assets consist of vessels under construction, assets under development and vessels undergoing conversion into FSRUs for our own use. The interest capitalized is calculated using the rate of interest on the loan to fund the expenditure or our weighted average cost of borrowings where appropriate, from commencement of the newbuilding and conversion work until substantially all the activities necessary to prepare the assets for its intended use are complete. If our financing plans associate a specific borrowing with a qualifying asset, we use the rate on that borrowing as the capitali z ation rate to be applied to that portion of the average accumulated expenditures for the asset provided that does not exceed the amount of that borrowing. We do not capitali z e amounts beyond the actual interest expense incurred in the period. Deferred charges Costs associated with long-term financing, including debt arrangement fees are deferred and amortized over the term of the relevant loan. These costs are presented as a deduction from the corresponding liability, consistent with debt discounts. Derivatives We use derivatives to reduce market risks associated with our operations. We use interest rate swaps for the management of interest rate risk exposure. The interest rate swaps effectively convert a portion of our debt from a floating to a fixed rate over the life of the transactions without an exchange of underlying principal. We seek to reduce our exposure to fluctuations in foreign exchange rates through the use of foreign currency forward contracts. From time to time, we enter into equity swaps. Under these facilities, we swap with our counterparty (usually a major bank) the risk of fluctuations in our share price and the benefit of any dividends, for a fixed payment of LIBOR plus margin. The counterparty may acquire shares in the Company to hedge its own position. All derivative instruments are initially recorded at cost as either assets or liabilities in the accompanying Consolidated Balance Sheet and subsequently remeasured to fair value, regardless of the purpose or intent for holding the derivative. Where the fair value of a derivative instrument is a net liability, the derivative instrument is classified in "Other current liabilities" in the Consolidated Balance Sheet. Where the fair value of a derivative instrument is a net asset, the derivative instrument is classified in "Other non-current assets" in the Consolidated Balance Sheet. The method of recognizing the resulting gain or loss is dependent on whether the derivative contract is designed to hedge a specific risk and also qualifies for hedge accounting. The Company hedge accounts for certain of its interest rate swap arrangements designated as cash flow hedges. For derivative instruments that are not designated or do not qualify as hedges under the guidance, the changes in fair value of the derivative financial instrument are recognized each period in current earnings in "Other financial items" in the Consolidated Statement of Operations. When a derivative is designated as a cash flow hedge, we formally document the relationship between the derivative and the hedged item. This documentation includes the strategy risk and risk management for undertaking the hedge and the method that will be used to assess effectiveness of the hedge. If the derivative is an effective hedge, changes in the fair value are initially recorded as a component of accumulated other comprehensive income in equity. The ineffective portion of the hedge is recognized immediately in earnings, as are any gains or losses on the derivative that are excluded from the assessment of hedge effectiveness. We do not apply hedge accounting if we determine that the hedge was not effective or will no longer be effective, the derivative was sold or exercised, or the hedged item was sold or repaid. In the periods when the hedged items affect earnings, the associated fair value changes on the hedged derivatives are transferred from equity to the corresponding earnings line item on the settlement of a derivative. The ineffective portion of the change in fair value of the derivative financial instrument is immediately recognized in earnings. If a cash flow hedge is terminated and the originally hedged item is still considered probable of occurring, the gains and losses initially recognized in equity remain there until the hedged item impacts earnings at which point they are transferred to the corresponding earnings line item (i.e. interest expense). If the hedged items are no longer probable of occurring, amounts recognized in equity are immediately reclassified to earnings. Cash flows from derivative instruments that are accounted for as cash flow hedges are classified in the same category as the cash flows from the items being hedged. Cashflows from economic hedges are classified in the same category from the items subject to the economic hedging relationship. Convertible bonds In accordance with accounting guidance "Debt with conversion and other options", we account for debt instruments with convertible features in accordance with the details and substance of the instruments at the time of their issuance. For convertible debt instruments issued at a substantial premium to equivalent instruments without conversion features, or those that may be settled in cash upon conversion, it is presumed that the premium or cash conversion option represents an equity component. Accordingly, we determine the carrying amounts of the liability and equity components of such convertible debt instruments by first determining the carrying amount of the liability component by measuring the fair value of a similar liability that does not have an equity component. The carrying amount of the equity component representing the embedded conversion option is then determined by deducting the fair value of the liability component from the total proceeds from the issue. The resulting equity component is recorded, with a corresponding offset to debt discount which is subsequently amortized to interest cost using the effective interest method over the period the debt is expected to be outstanding as an additional non-cash interest expense. Transaction costs associated with the instrument are allocated pro-rata between the debt and equity components. For conventional convertible bonds which do not have a cash conversion option or where no substantial premium is received on issuance, it may not be appropriate to split the bond into the liability and equity components. Provisions In the ordinary course of business, we are subject to various claims, suits and complaints. Management, in consultation with internal and external advisers, will provide for a contingent loss in the financial statements if the contingency had occurred at the date of the financial statements and the likelihood of loss was probable and the amount can be reasonably estimated. If we determine that the reasonable estimate of the loss is a range and there is no best estimate within the range, we will provide the lower amount within the range. Pensions Defined benefit pension costs, assets and liabilities requires adjustment of the significant actuarial assumptions annually to reflect current market and economic conditions. Our accounting policy states that full recognition of the funded status of defined benefit pension plans is to be included within our balance sheet. The pension benefit obligation is calculated by using a projected unit credit method. Defined contribution pension costs represent the contributions payable to the scheme in respect of the accounting period and are recorded in the Consolidated Statement of Operations. Guarantees Guarantees issued by us, excluding those that are guaranteeing our own performance, are recognized at fair value at the time that the guarantees are issued, or upon the deconsolidation of a subsidiary, and reported in "Other long-term liabilities." A liability for the fair value of the obligation undertaken in issuing the guarantee is recognized. If it becomes probable that we will have to perform under a guarantee, we will recognize an additional liability if the amount of the loss can be reasonably estimated. The recognition of fair value is not required for certain guarantees such as the parent's guarantee of a subsidiary's debt to a third party. For those guarantees excluded from the above guidance requiring the fair value recognition provision of the liability, financial statement disclosures of such items are made. Treasury shares Treasury shares are recognized as a separate component of equity at cost. Upon subsequent disposal of treasury shares, any consideration is recognized directly in equity. Stock-based compensation In accordance with the guidance on "Share Based Payment", we are required to expense the fair value of stock options issued to employees over the period the options vest. We amortize stock-based compensation for awards on a straight-line basis over the period during which the employee is required to provide service in exchange for the reward - the requisite service (vesting) period. No compensation cost is recognized for stock options for which employees do not render the requisite service. The fair value of employee share options is estimated using the Black-Scholes option-pricing model. Earnings per share Basic earnings per share ("EPS") is computed based on the income available to common stockholders and the weighted average number of shares outstanding for basic EPS. Treasury shares are not included in the calculation. Diluted EPS includes the effect of the assumed conversion of potentially dilutive instruments. Such potentially dilutive common shares are excluded when the effect would be to increase earnings per share or reduce a loss per share. Operating leases Initial direct costs (those directly related to the negotiation and consummation of the lease) are deferred and allocated to earnings over the lease term. Rental income and expense are amortized over the lease term on a straight-line basis. Income taxes Income taxes are based on a separate return basis. The guidance on "Accounting for Income Taxes" prescribes a recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Deferred tax assets and liabilities are recognized principally for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Realization of the deferred income tax asset is dependent on generating sufficient taxable income in future years. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realized or the liability is settled, based on the tax rates and tax laws that have been enacted or substantively enacted at the balance sheet date. Income tax relating to items recognized directly in the statement of comprehensive income is recognized in the statement of changes in equity and not in the statement of operations. Related parties Parties are related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also related if they are subject to common control or significant influence. Gain on issuance of shares by subsidiaries We recognize a gain or loss when a subsidiary issues its stock to third parties at a price per share in excess or below its carrying value resulting in a reduction in our ownership interest in the subsidiary. The gain or loss is recorded in the line "Additional paid-in capital". Gain on disposals to Golar Partners Where we have a gain or loss upon disposal of a subsidiary or business to Golar Partners, or where a subsidiary or business is deconsolidated, the gain or loss is recognized in the income statement at the time of sale as a component of operating income. LNG trading We trade in physical cargoes, futures, swaps and options, all of which are traded on and recognized in liquid markets. Purchases and sales are recognized on the trade date. Open trading positions are stated at fair value based on closing market price on the balance sheet date. The market values of open positions are shown in debtors if positive or creditors if negative. Realized and unrealized gains and losses are recognized in current earnings in "Other operating gains and losses". The net transaction value of energy trading contracts that were physically settled for the years ending December 31, 2015 , 2014 and 2013 , was $ nil , $4.0 million and $ nil , respectively. Contracts to buy and sell physical cargoes for future delivery settled on the bill of lading da |
SUBSIDIARIES
SUBSIDIARIES | 12 Months Ended |
Dec. 31, 2015 | |
SUBSIDIARIES [Abstract] | |
SUBSIDIARIES | 3. SUBSIDIARIES The following table lists our significant subsidiaries and their purpose as at December 31, 2015 . Unless otherwise indicated, we own a 100% controlling interest in each of the following subsidiaries. Name Jurisdiction of Incorporation Purpose Golar LNG 2216 Corporation Marshall Islands Owns Golar Arctic Golar Management Limited United Kingdom Management company Golar GP LLC – Limited Liability Company Marshall Islands Holding company Golar LNG Energy Limited Bermuda Holding company Golar Gimi Corporation Marshall Islands Owns Gimi Golar Hilli Corporation (89%)* Marshall Islands Owns Hilli Golar Gandria N.V. Netherlands Owns and operates Gandria Golar Hull M2021 Corporation Marshall Islands Owns and operates Golar Seal Golar Hull M2022 Corporation Marshall Islands Owns and operates Golar Crystal Golar Hull M2023 Corporation Marshall Islands Owns and operates Golar Penguin LNG Power Limited United Kingdom Holding company Golar Hull M2026 Corporation Marshall Islands Owns and operates Golar Celsius Golar Hull M2027 Corporation Marshall Islands Owns and operates G olar Bear Golar Hull M2047 Corporation Marshall Islands Leases and operates Golar Snow*** Golar Hull M2048 Corporation Marshall Islands Leases and operates Golar Ice*** Golar LNG NB10 Corporation Marshall Islands Leases and operates Golar Glacier*** Golar LNG NB11 Corporation Marshall Islands Leases and operates Golar Kelvin*** Golar LNG NB12 Corporation Marshall Islands Owns and operates Golar Frost Golar LNG NB13 Corporation Marshall Islands Leases and operates Golar Tundra*** GVS Corporation Marshall Islands Owns and operates Golar Viking Golar Management Norway AS** Norway Management company Golar Commodities Limited Bermuda Trading company * The Hilli was sold to Golar Hilli Corporation prior to the commencement of her conversion to a FLNG. Keppel Shipyard Limited and Black & Veatch hold the remaining 10% and 1% interest, respectively, in the issued share capital of Golar Hilli Corporation. ** In September 2015, Golar acquired the remaining 40% interest in Golar Wilhelmsen Management AS. In December 2015, the company was renamed Golar Management Norway AS (or "GMN"). *** The above table excludes mention of the lessor variable interest entities (''lessor VIEs'') that we have leased vessels from under finance leases. The lessor VIEs are wholly-owned, newly formed special purpose vehicles ("SPVs") of financial institutions. While we do not hold any equity investments in these SPVs, we have concluded that we are the primary beneficiary of these lessor VIEs and accordingly have consolidated these entities into our financial results. Refer to note 4 for additional detail. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2015 | |
VARIABLE INTEREST ENTITIES [Abstract] | |
VARIABLE INTEREST ENTITIES (VIE) | 4. VARIABLE INTEREST ENTITIES ("VIE") As of December 31, 2015, we leased five vessels from VIEs under finance leases, of which four were with ICBC Finance Leasing Co. Ltd (''ICBCL'') entities and one with a subsidiary of CMBL. Each of the ICBCL and CMBL entities are wholly-owned, newly formed special purpose vehicles (“SPVs”). ICBCL Lessor VIEs Commencing in October 2014, we sold the Golar Glacier , followed by the remaining three newbuilds (the Golar Kelvin , Golar Snow and Golar Ice ) to ICBCL entities in the first quarter of 2015. The vessels were simultaneously leased back on bareboat charters for a term of ten years . We have several options to repurchase the vessels at fixed predetermined amounts during the charter periods with the earliest date from the fifth year anniversary of commencement of the bareboat charter, and an obligation to purchase the assets at the end of the ten year lease period. CMBL Lessor VIE In November 2015, we sold the Golar Tundra to a CMBL entity and subsequently leased back the vessel on a bareboat charter for a term of ten years . We have options to repurchase the vessel throughout the charter term at fixed pre-determined amounts, commencing from the third year anniversary of the commencement of the bareboat charter, with an obligation to repurchase the vessel at the end of the ten year lease period. While we do not hold any equity investments in the above ICBCL and CMBL SPVs, we have determined that we have a variable interest in these SPVs and that these lessor entities, that own the vessels, are VIEs. Based on our evaluation of the agreements we have concluded that we are the primary beneficiary of these VIEs and accordingly, these VIEs are consolidated into our financial results. We did not record any gains or losses from the sale of these vessels, as they continued to be reported as vessels at their original costs in our consolidated financial statements at the time of each transaction. The equity attributable to ICBCL and CMBL in their respective VIEs are included in non-controlling interests in our consolidated results. As of December 31, 2015 and 2014, the respective vessels are reported under “Vessels and equipment, net” in our consolidated balance sheet. The following table gives a summary of the sale and leaseback arrangements, including repurchase options and obligations as of December 31, 2015: Vessel Effective from Sales value (in $ millions) First repurchase option (in $ millions) Date of first repurchase option Repurchase obligation at end of lease term (in $ millions) End of lease term Golar Glacier October 2014 204.0 173.8 October 2019 142.7 October 2024 Golar Kelvin January 2015 204.0 173.8 January 2020 142.7 January 2025 Golar Snow January 2015 204.0 173.8 January 2020 142.7 January 2025 Golar Ice February 2015 204.0 173.8 February 2020 142.7 February 2025 Golar Tundra November 2015 254.6 194.1 November 2018 101.8 November 2025 A summary of our payment obligations (excluding repurchase options and obligations) under the bareboat charters with the lessor VIEs as of December 31, 2015, are shown below: (in $ thousands) 2016 2017 2018 2019 2020 2021+ Golar Glacier 17,147 17,100 17,100 17,100 17,147 64,137 Golar Kelvin 17,147 17,100 17,100 17,100 17,147 66,995 Golar Snow 17,147 17,100 17,100 17,100 17,147 66,995 Golar Ice 17,147 17,100 17,100 17,100 17,147 69,899 Golar Tundra 12,729 12,729 12,729 12,729 12,729 61,522 The assets and liabilities of the ICBCL and CMBL lessor VIEs that most significantly impact our consolidated balance sheet as of December 31, 2015 and 2014, are as follows: (in $ thousands) Golar Glacier Golar Kelvin Golar Snow Golar Ice Golar Tundra 2015 2014 Assets Total Total Restricted cash and short term receivables (see note 20) 7,132 16,942 8,648 2,728 — 35,450 — Restricted cash - held-for-sale current assets (1) (see note 19) — — — — 3,618 3,618 — 7,132 16,942 8,648 2,728 3,618 39,068 — Liabilities Debt: Short-term interest bearing debt (see note 25) 31,826 182,540 22,566 172,046 — 408,978 31,826 Long-term interest bearing debt - current portion (see note 25) 7,650 — 8,000 — — 15,650 7,650 Long-term interest bearing debt - non-current portion (see note 25) 137,700 — 148,000 — — 285,700 145,350 Short-term interest bearing debt - held-for-sale (1) (see note 19) — — — — 201,725 201,725 — 177,176 182,540 178,566 172,046 201,725 912,053 184,826 (1) The assets and liabilities relating to the Golar Tundra lessor VIE have been reclassified as “held-for-sale” in connection with the sale of our interests in the companies that own and operate the vessel to Golar Partners (see note 19). |
RECENTLY ISSUED ACCOUNTING STAN
RECENTLY ISSUED ACCOUNTING STANDARDS (Restated) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENTLY ISSUED ACCOUNTING STANDARDS (Restated) | 5. RECENTLY ISSUED ACCOUNTING STANDARDS (Restated) Adoption of new accounting standards In April 2015, the FASB issued amendments to ASU 2015-03 "Interest- Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs". The guidance simplifies the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs is not affected. The guidance is effective for financial statements issued for annual periods beginning after December 15, 2015. The company early adopted ASU 2015-03 effective December 31, 2015 and applied this guidance retrospectively to all prior periods presented in the company's consolidated financial statements. In November 2015, the FASB issued amendments to ASC 740, requiring classification all of deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. Also, companies will no longer allocate valuation allowances between current and noncurrent deferred tax assets because those allowances also will be classified as noncurrent. The guidance is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. However, early adoption is permitted. We have elected to adopt the guidance prospectively for annual periods beginning January 1, 2015. Accounting pronouncements to be adopted In June 2014, the FASB issued guidance for compensation - stock compensation, accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. Under ASC 718, compensation - stock compensation, a performance target in a share-based payment that affects vesting and that could be achieved after the requisite service period should be accounted for as a performance condition. As a result, the target is not reflected in the estimation of the award’s grant date fair value. Compensation cost would be recognized over the required service period, if it is probable that the performance condition will be achieved. This guidance was issued to resolve diversity in practice. The guidance is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. Early adoption is permitted. The guidance should be applied prospectively to awards that are granted or modified on or after the effective date. Entities also have the option to apply the amendments on a modified retrospective basis for performance targets outstanding on or after the beginning of the first annual period presented as of the adoption date. An entity that elects to use this approach should record a cumulative-effect adjustment as of the beginning of the first period presented, and use of hindsight is permitted. We believe the adoption of this guidance will not have a material impact on our consolidated financial position, results of operations and cash flows. In August 2014, the FASB issued guidance for presentation of financial statement - going concern. The amendments in this update provide guidance in GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued or available to be issued and to provide related footnote disclosures. The amendments are effective for the annual periods beginning after December 15, 2016, and interim periods, and for the annual period ending after December 15, 2016 and interim periods within those periods. We believe the adoption of this guidance will not have a material impact on our consolidated financial position, results of operations and cash flows. In November 2014, the FASB issued guidance for derivatives and hedging where it eliminates different methods used in current practice in accounting for hybrid financial instruments issued in the form of a share. The amendments clarify how current GAAP should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Specifically, the amendments clarify that an entity should consider all relevant terms and features including embedded derivative feature being evaluated for bifurcation in evaluating the nature of the host contract. Furthermore, the amendments clarify that no single term or feature would necessarily determine the economic characteristics and risks of the host contract. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. We are assessing what impact, if any, the adoption of this guidance will have on our consolidated financial position, results of operations and cash flows. In January 2015, the Financial Accounting Standards Board ("FASB") issued guidance to simplify the income statement presentation requirements by eliminating the concept of extraordinary items. We believe the adoption of this guidance will not have a material impact on our consolidated financial position, results of operations and cash flows. In February 2015, the FASB issued amendments to ASC 810 requiring re-evaluation of all legal entities under the revised consolidation model. This is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Specifically, the amendments: • modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities; • eliminate the presumption that a general partner should consolidate a limited partnership; • affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and • provide a scope exception from consolidation guidance for reporting entities with interest in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. We are assessing what impact, if any, the adoption of this guidance will have on our consolidated financial position, results of operations and cash flows. ASC 820, Fair Value Measurement, permits a reporting entity, as a practical expedient, to measure the fair value of certain investments using the net asset value per share of the investment. Currently, investments using the practical expedient are categorized within the fair value hierarchy according to the date when the investment is redeemable. In May 2015, the FASB issued amendments to ASC 820 which have the effect of a) removing the requirement to categorize these investments and b) limiting disclosures of these investments. We believe the adoption of this guidance will not have a material impact on our consolidated financial position, results of operations and cash flows. In July 2015, the FASB issued amendments to ASC 330 that simplifies the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. The guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2016. We believe the adoption of this guidance will not have a material impact on our consolidated financial position, results of operations and cash flows. In May 2014, the FASB issued a new topic ASC 606, Revenue from Contracts With Customers. The intention of the topic is to harmonize revenue recognition requirements with the newly issued standard, IFRS 15, by the International Accounting Standards Board (IASB). The initial effective date for public business entities was for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. In August 2015, the FASB issued an amendment to ASC deferring the effective date to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. We are assessing what impact, if any, the adoption of this guidance will have on our consolidated financial position and results of operations. In September 2015, the FASB issued amendments to ASC 805. The guidance eliminates the requirement that an acquirer in a business combination account for measurement-period adjustments retrospectively. Instead, an acquirer will recognize a measurement-period adjustment during the period in which it determines the amount of the adjustment, including the effect on earnings of any amounts it would have recorded in previous periods if the accounting had been completed at the acquisition date. The guidance is effective for fiscal years, including interim periods within those fiscal years, beginning after 15 December 2015. We are assessing what impact, if any, the adoption of this guidance will have on our consolidated financial position and results of operations. In March 2016, the FASB issued guidance (“Topic 842”) to increase transparency and comparability among organizations by requiring i) recognition of lease assets and lease liabilities on the balance sheet and ii) disclosure of key information about leasing arrangements. The accounting applied by lessors under Topic 842 is largely unchanged from previous GAAP. Some changes to the lessor accounting guidance were made to align both of the following: i) the lessor accounting guidance with certain changes made to the lessee accounting guidance and ii) key aspects of the lessor accounting model with revenue recognition guidance. Topic 842 will be effective for fiscal years and interim periods beginning after December 15, 2018, and early adoption is permitted. A modified retrospective approach is required for adoption for all leases that exist at or commence after the date of initial application with an option to use certain practical expedients. We are currently assessing whether we will early adopt, and the impact on our financial statements is not currently estimable. |
DISPOSALS TO GOLAR PARTNERS (Re
DISPOSALS TO GOLAR PARTNERS (Restated) | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISPOSALS TO GOLAR PARTNERS (Restated) | 6. DISPOSALS TO GOLAR PARTNERS (Restated) In January 2015, we sold our interests in the company that owns and operates the Golar Eskimo to Golar Partners. (in thousands of $) Golar Eskimo Cash consideration received (1) 226,010 Carrying value of the net assets sold to Golar Partners (123,604 ) Gain on disposal 102,406 The gain from the sale of the Golar Eskimo in January 2015 was $102.4 million and has been recognized in the consolidated statements of operation under "Gain on disposals to Golar Partners" for the year ended December 31, 2015. (1) The cash consideration for the Golar Eskimo comprised of $390.0 million for the vessel and charter less the assumed bank debt of $162.8 million less purchase price adjustments of $1.2 million . In March 2014, we sold our interests in the company that owns and operates the Golar Igloo to Golar Partners. (in thousands of $) Golar Igloo Cash consideration received (2) 156,001 Carrying value of the net assets sold to Golar Partners (112,714 ) Gain on disposal 43,287 The gain from the sale of the Golar Igloo in March 2014 was $43.3 million and has been recognized in the consolidated statements of operation under "Gain on disposals to Golar Partners" for the year ended December 31, 2014. (2) The cash consideration for the Golar Igloo comprised of $ 310.0 million for the vessel and charter less the assumed bank debt of $ 161.3 million plus purchase price adjustments of $ 7.3 million . In February 2013, we sold our interests in the company that owns and operates the Golar Maria to Golar Partners. (in thousands of $) Golar Maria Restated Cash consideration received (3) 127,900 Carrying value of the net assets sold to Golar Partners (45,630 ) Gain on disposal 82,270 The gain from the sale of the Golar Maria in February 2013 was $ 82.3 million and has been recognized in the consolidated statements of operation under "Gain on disposals to Golar Partners" for the year ended December 31, 2013. (3) The cash consideration for the Golar Maria comprised of $215.0 million for the vessel less the assumed bank debt and interest rate swap liability of $89.5 million and $3.1 million , respectively, plus purchase price adjustments of $5.5 million . 19. HELD-FOR-SALE (Restated) a) Vessel held-for-sale In April 2015, we purchased the vessel LNG Abuja for a consideration of $20.0 million . In June 2015, we agreed the sale of the vessel to a third party for $19.0 million and the transaction was completed in July 2015. Accordingly, as of June 30, 2015, the vessel was classified as held-for-sale resulting in an impairment loss of $1.0 million recognized in 2015. In December 2014, we entered into an agreement to sell our LNG carrier the Golar Viking to Equinox at a sale price of $135.0 million , resulting in a loss on disposal of $5.8 million . This vessel was classified as held-for-sale in our consolidated balance sheet as at December 31, 2014. We completed the sale of the Golar Viking in February 2015. b) Assets and liabilities held-for-sale In February 2016, we entered into an agreement to sell our interests in the companies that own and operate the FSRU the Golar Tundra to Golar Partners. The assets and liabilities held within our consolidated balance sheet that are related to the disposal group have been reclassified as held-for-sale and depreciation has ceased for this vessel. The sale of the Golar Tundra is expected to be completed in May 2016 (see note 34). In December 2014, we entered into an agreement to sell our interests in the companies that own and operate the FSRU the Golar Eskimo to Golar Partners. The sale of the Golar Eskimo was completed in January 2015 (see note 6). Assets and liabilities included in our consolidated balance sheet presented as held-for-sale are shown below: (in thousands of $) 2015 2014 Restated Restated ASSETS Current assets Restricted cash 3,618 — Other receivables, prepaid expenses and accrued income 217 196 Inventories 572 266 Total current assets 4,407 462 Non-current assets Vessels and equipment, net 262,627 280,284 Total non-current assets 262,627 280,284 Total assets (2) 267,034 280,746 LIABILITIES Current liabilities Current portion of long-term debt — (13,074 ) Short-term debt, net of deferred finance charges (1) (199,300 ) — Trade accounts payable (844 ) (419 ) Accrued expenses (1,019 ) (786 ) Amounts due to related parties (50 ) (366 ) Total current liabilities (201,213 ) (14,645 ) Non-current liabilities Long-term debt — (145,547 ) Total non-current liabilities — (145,547 ) Total liabilities (2) (201,213 ) (160,192 ) (1) The short-term debt net of deferred finance charges of $199.3 million relates to a secured debt financing arrangement entered into by the CMBL lessor VIE in respect of the Golar Tundra . The debt facility is denominated in USD, bears interest at LIBOR plus a margin and is repayable with a final balloon payment of $199.3 million in 2016. Although we have no control over the funding arrangements of the CMBL lessor VIE, as we consider ourselves the primary beneficiary of the VIE, we are required to consolidate this loan facility into our financial results. Refer to note 4 for additional detail. (2) We have classified all assets and liabilities as current on the consolidated balance sheets. (3) We have not presented any of our held-for-sale assets or disposal groups as discontinued operations in our statements of operations as we consider ourselves a project development company, such that our strategy encompasses the disposal of vessels and related interests for the purpose of financing our projects, thus they do not represent a strategic shift and do not have a major effect on our operations and financial results. |
SEGMENTAL INFORMATION (Restated
SEGMENTAL INFORMATION (Restated) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
SEGMENTAL INFORMATION (Restated) | 7. SEGMENTAL INFORMATION (Restated) We own and operate LNG carriers and FSRUs and provide these services under time charters under varying periods, trades in physical and future LNG contracts, and are in the process of developing our first FLNG. Since the IPO of Golar Partners, we have become a project development company. Our reportable segments consist of the primary services each provides. Although our segments are generally influenced by the same economic factors, each represents a distinct product in the LNG industry. There have not been any intersegment sales during the periods presented. Segment results are evaluated based on net income. The accounting principles for the segments are the same as for our consolidated financial statements. Indirect general and administrative expenses are allocated to each segment based on estimated use. The split of the organization of the business into three reportable segments is based on differences in management structure and reporting, economic characteristics, customer base, asset class and contract structure. As of December 31, 2015 , we operate in the following three reportable segments: • Vessel operations – We operate and subsequently charter out LNG carriers and FSRUs on fixed terms to customers. • LNG trading – We provide physical and financial risk management in LNG and gas markets for customers around the world. Activities include structured services to outside customers, arbitrage service as well as proprietary trading. • FLNG – In 2014, we ordered our first FLNG based on the conversion of our existing LNG carrier, the Hilli. The Hilli FLNG conversion is expected to be completed and delivered in 2017. The costs associated with the conversion to a FLNG has been considered as a separate segment. The LNG trading operations meets the definition of an operating segment as the business is a financial trading business and its financial results are reported directly to the chief operating decision maker. The LNG trading segment is a distinguishable component of the business from which we earn revenues and incur expenses and whose operating results are regularly reviewed by the chief operating decision maker, and which is subject to risks and rewards different from the vessel operations segment. FLNG meets the definition of an operating segment as the business is a distinguishable component of the business from which, once the first FLNG is delivered to us, we will earn revenues and incur expenses and whose operating results will be regularly reviewed by the chief operating decision maker, and due to its nature is subject to risks and rewards different from the vessel operations segment or the LNG trading segment. (in thousands of $) 2015 - Restated 2014 - Restated 2013 - Restated Vessel operations LNG trading FLNG* Total Vessel LNG FLNG* Total Vessel operations LNG trading Total Time and voyage charter revenues 90,127 — — 90,127 95,399 — — 95,399 90,558 — 90,558 Vessel and other management fees 12,547 — — 12,547 10,756 — — 10,756 9,270 — 9,270 Vessel and voyage operating expenses (125,389 ) — — (125,389 ) (76,910 ) — — (76,910 ) (58,009 ) — (58,009 ) Administrative expenses (28,657 ) — (4,869 ) (33,526 ) (17,468 ) (64 ) (1,735 ) (19,267 ) (22,816 ) (136 ) (22,952 ) Impairment of long-term assets (1,957 ) — — (1,957 ) (500 ) — — (500 ) (500 ) — (500 ) Depreciation and amortization (73,732 ) — — (73,732 ) (49,561 ) (250 ) — (49,811 ) (36,562 ) (309 ) (36,871 ) Other operating loss — — — — (6,387 ) — — (6,387 ) — — — Other operating gains (losses) - LNG trade — — — — — 1,317 — 1,317 — — — Gain on disposals to Golar Partners (including amortization of deferred gain) 102,406 — — 102,406 43,287 — — 43,287 82,270 — 82,270 Impairment of vessel held-for-sale (1,032 ) — — (1,032 ) — — — — — — — Loss on disposal of vessel (5,824 ) — — (5,824 ) — — — — — — — Operating (loss) income (31,511 ) — (4,869 ) (36,380 ) (1,384 ) 1,003 (1,735 ) (2,116 ) 64,211 (445 ) 63,766 Total other non-operating income (expense) (27 ) — (27 ) (446 ) 718 — 272 (2,482 ) — (2,482 ) Net financial (expenses) income (174,619 ) — — (174,619 ) (87,600 ) (252 ) — (87,852 ) 41,768 — 41,768 Income taxes 3,053 — — 3,053 1,114 — — 1,114 3,404 — 3,404 Equity in net earnings (losses) of affiliates 55,985 — — 55,985 42,220 — — 42,220 3,099 — 3,099 Net (loss) income (147,119 ) — (4,869 ) (151,988 ) (46,096 ) 1,469 (1,735 ) (46,362 ) 110,000 (445 ) 109,555 Non-controlling interests (19,158 ) — — (19,158 ) (1,655 ) — — (1,655 ) — — — Net (loss) income attributable to Golar LNG Ltd (166,277 ) — (4,869 ) (171,146 ) (47,751 ) 1,469 (1,735 ) (48,017 ) 110,000 (445 ) 109,555 Total assets 3,398,394 — 870,804 4,269,198 3,538,287 1,335 360,120 3,899,742 2,591,398 268 2,591,666 Investment in affiliates 541,565 — — 541,565 746,263 — — 746,263 766,024 — 766,024 Capital expenditures 565,777 — 111,572 677,349 1,202,901 — 313,645 1,516,546 734,155 — 734,155 * The Hilli conversion into a FLNG commenced in 2014. Therefore no comparative segmental information for the year ended December 31, 2013 was presented. We incurred FLNG project costs of $7.7 million for the year ended December 31, 2013. These were included in administrative expenses. Revenues from external customers During December 31, 2015 and 2014 , our vessels operated under charters with three main charterers: a major Japanese trading company, a major commodity trading company, and Nigeria LNG Ltd. In time and voyage charters, the charterer, not us, controls the routes of our vessels. These routes can be worldwide as determined by the charterers, except for the FSRUs, which operate at specific locations where the charterers are based. Accordingly, our management, including the chief operating decision maker, do not evaluate our performance either according to customer or geographical region. In the years ended December 31, 2015 , 2014 and 2013 , revenues from the following customers accounted for over 10% of our consolidated time charter revenues: (in thousands of $) 2015 2014 2013 Nigeria LNG Ltd 37,994 42 % — — % — — % Major commodity trading company 16,167 18 % 15,761 17 % — — % Major Japanese trading company — — % 55,975 59 % 47,744 53 % Gdf Suez Gas — — % — — % 10,015 11 % Eni Spa — — % — — % 8,912 10 % BG Group plc — — % — — % 13,114 14 % Geographical segment data The following geographical data presents our revenues with respect only to our FSRUs, operating under long-term charters, at specific locations. LNG vessels operate on a worldwide basis and are not restricted to specific locations. Revenues (in thousands of $) 2015 2014 2013 Kuwait* — 4,182 — * This relates to revenues from the Golar Igloo prior to her disposal to Golar Partners on March 28, 2014. In 2013, we did not own any operating FSRUs. In February 2014, the FSRU, Golar Igloo , was delivered to us which we subsequently sold to Golar Partners in March 2014. The vessel was chartered by KNPC, a subsidiary of Kuwait Petroleum Corporation, the state-owned oil and gas company of Kuwait, during the period under Golar ownership. |
IMPAIRMENT OF LONG-TERM ASSETS
IMPAIRMENT OF LONG-TERM ASSETS | 12 Months Ended |
Dec. 31, 2015 | |
IMPAIRMENT OF LONG-TERM ASSETS [Abstract] | |
IMPAIRMENT OF LONG-TERM ASSETS | 8. IMPAIRMENT OF LONG-TERM ASSETS Vessels The following table presents the market value and carrying value of one of our vessels that we have determined to have a market value that is less than their carrying value as of December 31, 2015. Based on the estimated future undiscounted cash flows of the vessel, which are significantly greater than the respective carrying value, no impairment was recognized on this vessel. (in thousands of $) Vessel 2015 Market value (1) 2015 Carrying value Deficit Golar Arctic 115,000 149,600 34,600 (1) Market values are determined using reference to market comparable values as provided by independent brokers. Since vessel values can be volatile, our estimates of market value may not be indicative of either the current or future prices we could obtain if we sold any of the vessels. In addition, the determination of estimated market values may involve considerable judgment, given the illiquidity of the second-hand markets for these types of vessels. Long-lived assets The following table presents the impairment charge recognized in relation to surplus FSRU equipment acquired in connection with the initial conversion of the Golar Spirit to a FSRU. (in thousands of $) 2015 2014 2013 Impairment charge 1,957 500 500 As of December 31, 2015, given the current offshore environment and lack of demand for this equipment, we recognized a full impairment charge against this item. |
OTHER FINANCIAL ITEMS, NET
OTHER FINANCIAL ITEMS, NET | 12 Months Ended |
Dec. 31, 2015 | |
OTHER FINANCIAL ITEMS, NET [Abstract] | |
OTHER FINANCIAL ITEMS, NET | 9. OTHER FINANCIAL ITEMS, NET (in thousands of $) 2015 2014 2013 Mark-to-market adjustment for interest rate swap derivatives (see note 30) (12,798 ) (28,996 ) 56,461 Interest rate swap cash settlements (see note 30) (15,797 ) (20,424 ) (10,626 ) Mark-to-market adjustment for equity derivatives (see note 30) (67,925 ) (13,657 ) — Mark-to-market adjustment for foreign currency derivatives (see note 30) — 94 719 Impairment of loan (15,010 ) — — Financing arrangement fees and other costs (1,841 ) (7,157 ) (5,632 ) Amortization of deferred financing costs and debt guarantee (3,082 ) (2,459 ) (1,120 ) Foreign exchange loss on operations (2,126 ) (1,200 ) (1,583 ) Other (25 ) (295 ) — (118,604 ) (74,094 ) 38,219 The impairment loss on loan arose on certain loan facilities granted to PT Perusahaan Pelayaran Equinox (or Equinox) in March 2015, in connection with their acquisition of the vessel, the Golar Viking . This initially comprised of (i) a short-term $80.0 million bridging loan facility maturing in March 2016; (ii) a $53.0 million , 10 year term loan; and (iii) a $5.0 million revolving credit facility. Given Equinox’s difficulties in realizing any short-haul cabotage trade opportunities in Indonesia as originally envisaged, this raised concerns as to the recoverability of these loans, and thus we agreed to the repossession of the vessel (based on a current vessel market valuation of $125.0 million ) in consideration for extinguishment of the total outstanding balance on the loan receivables of $138.5 million . Accordingly, we recognized an impairment provision (net of repossession costs) of $15.0 million in 2015. Financing arrangement fees and other costs of $7.2 million in 2014 arose mainly from commitment fees incurred on our $1.125 billion debt facility to fund eight of our newbuild vessels. All of the newbuild vessels had been delivered by the end of 2014, and thus funds drawn down on the debt facilities. |
TAXATION
TAXATION | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
TAXATION | 10. TAXATION The components of income tax expense/(credit) are as follows: (in thousands of $) 2015 2014 2013 Current tax expense/(credit): U.K. 435 2,212 (27 ) Total current tax expense/(credit) 435 2,212 (27 ) Deferred tax expense: U.K. — 161 110 Amortization of tax benefit arising on intra-group transfers of long-term assets (3,488 ) (3,487 ) (3,487 ) Total income tax credit (3,053 ) (1,114 ) (3,404 ) The income taxes for the years ended December 31, 2015, 2014 and 2013 differed from the amount computed by applying the Bermuda statutory income tax rate of 0% as follows: Year ended December 31 (in thousands of $) 2015 2014 2013 Income taxes at statutory rate — — — Effect of deferred tax benefit on intra-group transfers of long-term assets (3,488 ) (3,487 ) (3,487 ) Effect of adjustments in respect of current tax in prior periods (330 ) 1,411 (188 ) Effect of taxable income in various countries 765 962 271 Total tax credit (3,053 ) (1,114 ) (3,404 ) Bermuda Under current Bermuda law, we are not required to pay corporate income taxes or other taxes (other than duty on goods imported into Bermuda and payroll tax in respect of any Bermuda-resident employees). We have received written assurance from the Minister of Finance in Bermuda that, in the event of any such taxes being imposed, we will be exempted from taxation until March 31, 2035. United States Pursuant to the Internal Revenue Code of the United States (the "Code"), U.S. source income from the international operations of ships is generally exempt from U.S. tax if the company operating the ships meets certain requirements. Among other things, in order to qualify for this exemption, the company operating the ships must be incorporated in a country which grants an equivalent exemption from income taxes to U.S. citizens and U.S. corporations and must be more than 50% owned by individuals who are residents, as defined, in such country or another foreign country that grants an equivalent exemption to U.S. citizens and U.S. corporations. The management of the company believes that we satisfied these requirements and therefore by virtue of the above provisions, we were not subject to tax on our U.S. source income. United Kingdom Current taxation of $ 0.4 million , $2.2 million and $ nil for the years ended December 31, 2015 , 2014 and 2013 , respectively, relates to taxation of the operations of our United Kingdom subsidiaries, which includes amounts paid by one of our U.K. subsidiary's branch offices in Oslo. Taxable revenues in the U.K. are generated by our U.K. subsidiary companies and are comprised of management fees received from Golar group companies as well as revenues from the operation of certain of Golar's vessels. These vessels are sub-leased from other non-U.K Golar companies. As at December 31, 2015 , our 2015 and 2014 U.K. income tax returns have not been filed. Accordingly, once filed, the tax years 2012 to 2015 remain open for examination by the U.K. tax authorities. As at December 31, 2015, the statutory rate in the U.K. was 20% . There are ongoing inquiries and discussions with the U.K. tax authorities for certain subsidiaries in relation to tax depreciation claims. If the U.K. tax authorities successfully challenged the availability of the tax depreciation claims, this would impact ours or that of the lessor banks' tax returns from 2003 onwards. Further detail on this matter is included within ''Other commitments and contingencies'' (see note 33). Deferred income tax assets are summarized as follows: (in thousands of $) 2015 2014 Deferred tax assets, gross and net 260 260 We recorded deferred tax assets of $0.3 million and $0.3 million as of December 31, 2015 and 2014 , respectively, which have been classified as non-current and included within ''Other non-current assets''. These assets relate to differences for depreciation and other temporary differences. Other jurisdictions No tax has been levied on income derived from our subsidiaries registered in Liberia, the Marshall Islands and the British Virgin Islands. Under the Consolidated Tax Amendments Act of 2010, our Liberian subsidiaries should be considered non-resident Liberian corporations which are wholly exempted from Liberian taxation effective as of 1977. There are no potential deferred tax liabilities arising on undistributed earnings within the Company. This is because no tax should arise on the distribution of any retained earnings. |
EARNINGS PER SHARE (Restated)
EARNINGS PER SHARE (Restated) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE (Restated) | 11. EARNINGS PER SHARE (Restated) Basic earnings per share ("EPS") are calculated with reference to the weighted average number of common shares outstanding during the year. Treasury shares are not included in the calculation. The computation of diluted EPS for the years ended December 31, 2015 , 2014 and 2013 , assumes the conversion of potentially dilutive instruments. The components of the numerator for the calculation of basic and diluted EPS are as follows: (in thousands of $) 2015 2014 2013 Restated Restated Restated Net (loss) income attributable to Golar LNG Ltd stockholders - basic and diluted (171,146 ) (48,017 ) 109,555 The components of the denominator for the calculation of basic and diluted EPS are as follows: (in thousands) 2015 2014 2013 Basic earnings per share: Weighted average number of common shares outstanding 93,357 87,013 80,530 Diluted earnings per share: Weighted average number of common shares outstanding 93,357 87,013 80,530 Effect of dilutive share options — — 381 Effect of dilutive convertible bonds — — 4,545 Common stock and common stock equivalents 93,357 87,013 85,456 (Loss) earnings per share are as follows: 2015 2014 2013 Restated Restated Restated Basic $ (1.83 ) $ (0.55 ) $ 1.36 Diluted $ (1.83 ) $ (0.55 ) $ 1.28 |
OPERATING LEASES
OPERATING LEASES | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
OPERATING LEASES | 12. OPERATING LEASES Rental income The minimum contractual future revenues to be received on time charters in respect of vessels owned and operated as of December 31, 2015 , were as follows: Year ending December 31 Total (in thousands of $) 2016 12,260 2017 and thereafter 12,852 Total 25,112 The cost and accumulated depreciation of vessels leased to third parties at December 31, 2015 and 2014 were $416.9 million and $15.2 million , and $471.5 million and $35.5 million , respectively. The above table excludes the contracted revenues arising under the contract with West Africa Gas Limited (''WAGL'') for FSRU services provided by the Golar Tundra . The charter is expected to commence in the second quarter of 2016. This is by virtue that we expect to complete the dropdown of the Golar Tundra to Golar Partners in May 2016. Rental expense Charter hire payments for certain contracted-in vessels are accounted for as operating leases. Additionally, we are committed to making rental payments under operating leases for office premises. The future minimum rental payments under our non-cancellable operating leases are as follows: Year ending December 31 Total (in thousands of $) 2016 27,786 2017 23,238 2018 770 2019 599 2020 50 2021 and thereafter — Total minimum lease payments (1) 52,443 (1) The above table includes operating lease charter-hire payments to Golar Partners relating to the Option Agreement entered into in connection with the disposal of the Golar Grand in November 2012. In the event that the charterer does not renew or extend its charter beyond February 2015, Golar Partners has the option to require us to charter the vessel through to October 2017. Golar Partners exercised this option in February 2015 (see note 31). Total rental expense for operating leases was $42.8 million , $0.6 million and $0.7 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. |
INVESTMENTS IN AFFILIATES (Rest
INVESTMENTS IN AFFILIATES (Restated) | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS IN AFFILIATES (Restated) | 13. INVESTMENTS IN AFFILIATES (Restated) At December 31, 2015 and 2014 , we have the following participation in investments that are recorded using the equity method: 2015 2014 Restated Restated Golar Partners (1) 30.7 % 41.4 % The Cool Pool Limited ("Pool Manager") 33 % — % Egyptian Company for Gas Services S.A.E ("ECGS") 50 % 50 % Golar Wilhelmsen Management AS ("Golar Wilhelmsen") 100 % 60 % (1) As of December 31, 2015, we held a 30.7% (2014: 41.4% ) ownership interest in Golar Partners and 100% (2014: 100% ) of IDR's. The carrying amounts of our investments in our equity method investments as at December 31, 2015 and 2014 are as follows: (in thousands of $) 2015 2014 Restated Restated Golar Partners 536,090 739,744 ECGS 5,475 5,942 Golar Wilhelmsen (1) — 577 Equity in net assets of affiliates 541,565 746,263 (1) Effective September 4, 2015, we ceased equity accounting for our interests in Golar Wilhelmsen, pursuant to the acquisition of the remaining 40% interest in the entity. Accordingly, as of this date, Golar Wilhelmsen became a wholly-owned subsidiary. The components of equity in net assets of non-consolidated affiliates are as follows: (in thousands of $) 2015 2014 Restated Restated Cost 635,714 805,595 Dividend (179,079 ) (126,281 ) Equity in net earnings of other affiliates 85,122 62,319 Share of other comprehensive (loss) income in affiliate (192 ) 4,630 Equity in net assets of affiliates 541,565 746,263 Quoted market prices for ECGS, the Pool Manager and Golar Wilhelmsen are not available because these companies are not publicly traded. Golar Partners Golar Partners is an owner and operator of FSRUs and LNG carriers under long-term charters. As of December 31, 2015, it had a fleet of ten vessels which are managed by the Company (2014: nine vessels). We hold the following interests in Golar Partners: (i) Subordinated units For the period presented we held 15.9 million units, representing 100% of the subordinated units. The initial carrying value of these units was based on the fair value on the deconsolidation date. The fair value was determined based on the quoted market price of the listed common units as of December 13, 2012, but discounted principally for their non-tradability and subordinated dividend and liquidation rights during the subordination period. The subordination period will end on the satisfaction of various tests as prescribed in the Partnership Agreement, but will not end before March 31, 2016, except with our removal as general partner. Upon expiration of the subordination period, the subordinated units will convert to common units subject to passing certain conditions. (ii) Common units Represent our holding in the voting common units of Golar Partners, during the subordination period the common units have preferential dividend and liquidation rights. (iii) General Partner units and IDRs Represents our 2% general partner interest and 100% of the IDRs in Golar Partners. . The carrying value of the IDRs was based on the fair value as of the deconsolidation date of Golar Partners, December 13, 2012. The fair value of the IDRs was determined using a Monte Carlo simulation method. This simulation was performed within the Black Scholes option pricing model then solved via an iterative process by applying the Newton-Raphson method for the fair value of the IDRs, such that the price of a unit output by the Monte Carlo simulation equalled the price observed in the market. The method took into account the historical volatility, dividend yield as well as the share price of the units as of the deconsolidation date. As of December 31, 2015, the aggregate carrying value of our investments in Golar Partners was $536.1 million , which represents our total ownership interest in the Partnership of 30.7% and the IDRs. The estimated market value of our investments in Golar Partners are determined with reference to the quoted price of the common units, but adjusted to reflect the different rights associated with each class of investment. Due to the decline in the quoted price of the common units since the third quarter of 2015 , the fair value of our investments in Golar Partners has been below its carrying value. As of December 31, 2015 , the quoted unit price was $13.38 , subsequently increasing to a high of $18.03 and a low of $8.02 . In relation to our investments we are required to recognize an impairment loss where it is determined to be “other than temporary.” However, we believe the volatility and the decline in the unit price is temporary. This is on the basis that the decline is being driven by industry trends, specifically the decline in oil prices, which has resulted in a general negative sentiment towards oil and gas stocks and its status as a MLP which has suffered in response to cuts in distributions by other MLPs in the sector. We believe this is not a reflection of the Partnership’s profitability, strong financial position or its ability to maintain distributions given the Partnership’s fleet currently all operate under medium and long-term charters with fixed charter rates, which has historically contributed to secure and stable operating cashflows. Thus, as we have both the ability and intent to hold our investments in the Partnership, no impairment has been recognized in 2015 in relation to these investments. Dividends received for the year ended December 31, 2015 and 2014, in relation to our investment in Golar Partners amounted to $52.1 million and $61.3 million , respectively. ECGS In December 2005, we entered into an agreement with the Egyptian Natural Gas Holding Company ("EGAS") and HK Petroleum Services to establish a jointly owned company ECGS, to develop operations in Egypt particularly in hydrocarbon and LNG related areas. In March 2006, we acquired 0.5 million common shares in ECGS at a subscription price of $1 per share. This represents a 50% interest in the voting rights of ECGS and in December 2011, ECGS called up its remaining share capital amounting to $7.5 million . Of this, we paid $3.75 million to maintain our 50% equity interest. As ECGS is jointly owned and operated together with other third parties, we have adopted the equity method of accounting for our 50% investment in ECGS, as we consider we have joint significant influence. Dividends received for each of the years ended December 31, 2015 and 2014 were $0.7 million and $0.6 million , respectively. Golar Wilhelmsen During 2010 Golar Management Ltd and Wilhelmsen Ship Management AS ("WSM") incorporated a Norwegian private limited company with the name Golar Wilhelmsen Management AS, or Golar Wilhelmsen. The purpose was to build an organization specialized in the technical management of gas carriers. The company's focus was LNG carriers, FSRUs, floating LNG terminals and other gas carrying vessels which included both our and Golar Partners' fleet of vessels and eventually vessels from third parties. In September 2010, we entered into new ship management agreements with Golar Wilhelmsen for our fleet, cancelling our previous arrangements, and WSM serves as the technical manager for our vessels. Both we and WSM had joint control over the operational and financial policies of Golar Wilhelmsen. Accordingly, we had adopted the equity method of accounting for our interest in Golar Wilhelmsen as we considered we had joint significant influence by virtue of significant participating rights of the non-controlling interest, WSM. As of September 4, 2015, pursuant to the acquisition of the remaining 40% interest, we held 100% ownership interest in Golar Wilhemsen, thus making it a controlled and fully consolidated subsidiary from that date. Subsequent to the acquisition, Golar Wilhelmsen was renamed Golar Management Norway AS. Pool Manager (Cool Pool) In October 2015, we entered into an LNG carrier pooling arrangement with GasLog Carriers Ltd ("GasLog") and Dynagas Ltd ("Dynagas") to market our vessels which are currently operating in the LNG shipping spot market. As of December 31, 2015, the Cool Pool comprised of fourteen vessels, of which eight vessels were contributed by us, three vessels by GasLog and three vessels by Dynagas. The vessel owner continues to be fully responsible for the manning and the technical management of their respective vessels. For the operation of the Cool Pool, a Marshall Islands service company ("Pool Manager") was established in September 2015. The Pool Manager is jointly owned and controlled by us, GasLog and Dynagas. Summarized financial information of the affiliated undertakings shown on a 100% basis are as follows: (in thousands of $) December 31, 2015 December 31, 2014 ECGS Golar Partners Pool Manager Golar Wilhelmsen ECGS Golar Partners Balance Sheet Current assets 35,042 131,851 4,901 2,096 37,159 141,556 Non-current assets 3,200 2,113,487 — 5 3,224 1,814,646 Current liabilities 27,272 266,012 216 1,044 28,711 277,874 Non-current liabilities 20 1,382,811 — — 20 1,076,589 Non-controlling interest — 66,765 — — — 67,618 Statement of Operations Revenue 72,294 434,687 8,356 6,732 78,946 396,026 Net income 730 172,683 — 479 1,508 184,735 |
TRADE ACCOUNTS RECEIVABLE
TRADE ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
TRADE ACCOUNTS RECEIVABLE | 14. TRADE ACCOUNTS RECEIVABLE Trade accounts receivable are presented net of allowances for doubtful accounts. The provision for doubtful debts was $ nil for both the years ended December 31, 2015 and 2014 , respectively. |
OTHER RECEIVABLES, PREPAID EXPE
OTHER RECEIVABLES, PREPAID EXPENSES AND ACCRUED INCOME | 12 Months Ended |
Dec. 31, 2015 | |
OTHER RECEIVABLES, PREPAID EXPENSES AND ACCRUED INCOME [Abstract] | |
OTHER RECEIVABLES, PREPAID EXPENSES AND ACCRUED INCOME | 15. OTHER RECEIVABLES, PREPAID EXPENSES AND ACCRUED INCOME (in thousands of $) 2015 2014 Prepaid expenses 3,580 3,119 Other receivables 17,697 12,102 Corporation tax receivable 3,476 2,277 24,753 17,498 As of December 31, 2015 and 2014, included in other receivables is a short-term loan receivable balance of $6.4 million and $8.1 million , respectively, provided to one of our partners in the Douglas Channel project in May 2013. The loan granted was for an original sum of $12.0 million to Douglas Channel LNG Assets Partnership ("DCLAP") as part of the potential FLNG project in Douglas Channel, British Columbia. The General Partner of DCLAP is a company wholly-owned by LNG Partner LLC ("LNGP"). The loan had a maturity date of September 30, 2013 and is secured by a general security agreement over the pipeline transportation capacity on the pipeline system that delivers natural gas to the area where the FLNG project is intended to operate. In September 2013, LNGP filed for bankruptcy. We commenced legal proceedings against LNGP seeking to have a receiver appointed over the secured assets. As court proceedings progressed during 2014, the parties negotiated a reorganization plan where we are no longer a participant in the project but became a creditor. The reorganization plan comprised of a new consortium of parties involved in the project has been finalized and approved by the Supreme Court of British Columbia. We retain security of the assets until the project reaches final investment decision. Of the $12.0 million short-term loan, we have, after settlements, a balance of $6.4 million remaining as of December 31, 2015. |
NEWBUILDINGS
NEWBUILDINGS | 12 Months Ended |
Dec. 31, 2015 | |
Newbuildings [Abstract] | |
NEWBUILDINGS | 16. NEWBUILDINGS (in thousands of $) 2015 2014 Purchase price installments 12,375 312,160 Interest costs capitalized 1,139 17,806 Other costs capitalized 47 14,577 13,561 344,543 As at December 31, 2015 we have remaining commitments of $ 235.1 million due to our newbuilding contract to construct one FSRU at a total contract cost of $ 247.5 million . See note 32 for the expected timing of the remaining installments to be paid. Interest costs capitalized in connection with the newbuildings for the years ended December 31, 2015 , 2014 and 2013 were $3.9 million , $21.1 million and $22.5 million , respectively. Other capitalized costs include site supervision and other miscellaneous construction costs. In 2015, we took delivery of four newbuilds. Upon delivery of these vessels, their total costs of $374.3 million were transferred to ''Vessels and equipment, net'' (see note 18). Included within this amount is Golar Tundra , which is shown as "held-for-sale". |
ASSET UNDER DEVELOPMENT
ASSET UNDER DEVELOPMENT | 12 Months Ended |
Dec. 31, 2015 | |
Extractive Industries [Abstract] | |
ASSET UNDER DEVELOPMENT | 17. ASSET UNDER DEVELOPMENT (in thousands of $) 2015 2014 Purchase price installments 495,518 344,386 Interest costs capitalized 4,187 443 Other costs capitalized 1,317 376 501,022 345,205 In May 2014, we entered into agreements for the conversion of the Hilli to a FLNG. The primary contract was entered into with Keppel Shipyard Limited ("Keppel"). Following our payment of the initial milestone installment, these agreements became fully effective on July 2, 2014. The Hilli was delivered to the Keppel shipyard in Singapore to undergo her conversion in September 2014. We expect the conversion will require 31 months to complete, followed by mobilization to a project for full commissioning. Accordingly, the carrying value of the Hilli of $31.0 million , was reclassified from "Vessels and equipment, net" to "Asset under development". The total estimated conversion and vessel and site commissioning cost for the Hilli , is approximately $1.3 billion . Interest costs capitalized in connection with the Hilli conversion for the year ended December 31, 2015 was $3.7 million (2014: $0.4 million ). |
VESSELS AND EQUIPMENT, NET
VESSELS AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
VESSELS AND EQUIPMENT, NET | 18. VESSELS AND EQUIPMENT, NET (in thousands of $) 2015 2014 Cost 2,572,740 1,813,170 Accumulated depreciation (236,596 ) (164,282 ) Net book value 2,336,144 1,648,888 As at December 31, 2015 , we owned sixteen (2014: thirteen ) vessels including the Golar Tundra . During the year ended December 31, 2015, we took delivery of four newbuildings. However, as of December 31, 2015, the Golar Tundra's carrying value has been excluded as she was classified as "held-for-sale". Drydocking costs of $43.1 million and $43.9 million are included in the cost amounts above as of December 31, 2015 and 2014 , respectively. Accumulated amortization of those costs as of December 31, 2015 and 2014 were $18.2 million and $11.3 million , respectively. Depreciation and amortization expense for each of the years ended December 31, 2015 , 2014 and 2013 was $73.7 million , $49.8 million and $36.9 million , respectively. As at December 31, 2015 and 2014 , vessels with a net book value of $ 2,543.0 million and $1,997.7 million , respectively, were pledged as security for certain debt facilities (see note 33). These totals include vessels classified as held-for-sale which included the Golar Tundra with respect to 2015, and both the Golar Eskimo and the Golar Viking in 2014. As at December 31, 2015 and 2014 , included in the above amounts is office equipment with a net book value of $2.8 million and $1.4 million , respectively. |
HELD-FOR-SALE (Restated)
HELD-FOR-SALE (Restated) | 12 Months Ended |
Dec. 31, 2015 | |
HELD FOR SALE [Abstract] | |
HELD-FOR-SALE (Restated) | 6. DISPOSALS TO GOLAR PARTNERS (Restated) In January 2015, we sold our interests in the company that owns and operates the Golar Eskimo to Golar Partners. (in thousands of $) Golar Eskimo Cash consideration received (1) 226,010 Carrying value of the net assets sold to Golar Partners (123,604 ) Gain on disposal 102,406 The gain from the sale of the Golar Eskimo in January 2015 was $102.4 million and has been recognized in the consolidated statements of operation under "Gain on disposals to Golar Partners" for the year ended December 31, 2015. (1) The cash consideration for the Golar Eskimo comprised of $390.0 million for the vessel and charter less the assumed bank debt of $162.8 million less purchase price adjustments of $1.2 million . In March 2014, we sold our interests in the company that owns and operates the Golar Igloo to Golar Partners. (in thousands of $) Golar Igloo Cash consideration received (2) 156,001 Carrying value of the net assets sold to Golar Partners (112,714 ) Gain on disposal 43,287 The gain from the sale of the Golar Igloo in March 2014 was $43.3 million and has been recognized in the consolidated statements of operation under "Gain on disposals to Golar Partners" for the year ended December 31, 2014. (2) The cash consideration for the Golar Igloo comprised of $ 310.0 million for the vessel and charter less the assumed bank debt of $ 161.3 million plus purchase price adjustments of $ 7.3 million . In February 2013, we sold our interests in the company that owns and operates the Golar Maria to Golar Partners. (in thousands of $) Golar Maria Restated Cash consideration received (3) 127,900 Carrying value of the net assets sold to Golar Partners (45,630 ) Gain on disposal 82,270 The gain from the sale of the Golar Maria in February 2013 was $ 82.3 million and has been recognized in the consolidated statements of operation under "Gain on disposals to Golar Partners" for the year ended December 31, 2013. (3) The cash consideration for the Golar Maria comprised of $215.0 million for the vessel less the assumed bank debt and interest rate swap liability of $89.5 million and $3.1 million , respectively, plus purchase price adjustments of $5.5 million . 19. HELD-FOR-SALE (Restated) a) Vessel held-for-sale In April 2015, we purchased the vessel LNG Abuja for a consideration of $20.0 million . In June 2015, we agreed the sale of the vessel to a third party for $19.0 million and the transaction was completed in July 2015. Accordingly, as of June 30, 2015, the vessel was classified as held-for-sale resulting in an impairment loss of $1.0 million recognized in 2015. In December 2014, we entered into an agreement to sell our LNG carrier the Golar Viking to Equinox at a sale price of $135.0 million , resulting in a loss on disposal of $5.8 million . This vessel was classified as held-for-sale in our consolidated balance sheet as at December 31, 2014. We completed the sale of the Golar Viking in February 2015. b) Assets and liabilities held-for-sale In February 2016, we entered into an agreement to sell our interests in the companies that own and operate the FSRU the Golar Tundra to Golar Partners. The assets and liabilities held within our consolidated balance sheet that are related to the disposal group have been reclassified as held-for-sale and depreciation has ceased for this vessel. The sale of the Golar Tundra is expected to be completed in May 2016 (see note 34). In December 2014, we entered into an agreement to sell our interests in the companies that own and operate the FSRU the Golar Eskimo to Golar Partners. The sale of the Golar Eskimo was completed in January 2015 (see note 6). Assets and liabilities included in our consolidated balance sheet presented as held-for-sale are shown below: (in thousands of $) 2015 2014 Restated Restated ASSETS Current assets Restricted cash 3,618 — Other receivables, prepaid expenses and accrued income 217 196 Inventories 572 266 Total current assets 4,407 462 Non-current assets Vessels and equipment, net 262,627 280,284 Total non-current assets 262,627 280,284 Total assets (2) 267,034 280,746 LIABILITIES Current liabilities Current portion of long-term debt — (13,074 ) Short-term debt, net of deferred finance charges (1) (199,300 ) — Trade accounts payable (844 ) (419 ) Accrued expenses (1,019 ) (786 ) Amounts due to related parties (50 ) (366 ) Total current liabilities (201,213 ) (14,645 ) Non-current liabilities Long-term debt — (145,547 ) Total non-current liabilities — (145,547 ) Total liabilities (2) (201,213 ) (160,192 ) (1) The short-term debt net of deferred finance charges of $199.3 million relates to a secured debt financing arrangement entered into by the CMBL lessor VIE in respect of the Golar Tundra . The debt facility is denominated in USD, bears interest at LIBOR plus a margin and is repayable with a final balloon payment of $199.3 million in 2016. Although we have no control over the funding arrangements of the CMBL lessor VIE, as we consider ourselves the primary beneficiary of the VIE, we are required to consolidate this loan facility into our financial results. Refer to note 4 for additional detail. (2) We have classified all assets and liabilities as current on the consolidated balance sheets. (3) We have not presented any of our held-for-sale assets or disposal groups as discontinued operations in our statements of operations as we consider ourselves a project development company, such that our strategy encompasses the disposal of vessels and related interests for the purpose of financing our projects, thus they do not represent a strategic shift and do not have a major effect on our operations and financial results. |
COST METHOD INVESTMENT (Restate
COST METHOD INVESTMENT (Restated) | 12 Months Ended |
Dec. 31, 2015 | |
Cost Method Investments Disclosure [Abstract] | |
COST METHOD INVESTMENTS (Restated) | 21. COST METHOD INVESTMENT (Restated) (in thousands of $) 2015 2014 Restated Restated OLT Offshore LNG Toscana S.p.A ("OLT–O") 7,347 7,347 OLT-O is an Italian incorporated unlisted company, which is involved in the construction, development, operation and maintenance of an FSRU terminal to be situated off the Livorno coast of Italy. As of December 31, 2015 , our investment in OLT-O was $7.3 million , representing 2.7% interest in OLT–O's issued share capital. We received no dividends from our investment in OLT-O for either of the years ended December 31, 2015 and 2014. |
RESTRICTED CASH AND SHORT-TERM
RESTRICTED CASH AND SHORT-TERM RECEIVABLES | 12 Months Ended |
Dec. 31, 2015 | |
Restricted Cash and Investments [Abstract] | |
RESTRICTED CASH AND SHORT-TERM RECEIVABLES | 20. RESTRICTED CASH AND SHORT-TERM RECEIVABLES Our restricted cash and short-term investment balances are as follows: (in thousands of $) 2015 2014 Restricted cash relating to the total return equity swap (see note 30) 92,752 46,051 Restricted cash in relation to the Golar Viking — 25,000 Restricted cash in relation to the Hilli 280,000 — Restricted cash and short-term receivables held by ICBC lessor VIEs (see note 4) 35,450 — Restricted cash relating to projects — 3,111 Restricted cash relating to office lease 361 425 Total restricted cash 408,563 74,587 Less: Amounts included in short-term restricted cash and short-term receivables 228,202 74,162 Long-term restricted cash 180,361 425 Restricted cash relating to the share repurchase forward swap refers to the collateral required by the bank with whom we entered into a total return equity swap requiring a collateral of 20% of the total purchase price and subsequently adjusted with reference to the Company's share price. In December 2014, Qatar Gas Trading Company Limited requested a bank guarantee for $25 million in relation to a legal dispute related to the Golar Viking to which we agreed to provide this security. The guarantee was released subsequently in January 2015 following the execution of the settlement agreement. In November 2015, in connection with the issuance of a $400 million letter of credit by a financial institution to our project partner involved in the Hilli FLNG project, we posted an initial cash collateral sum of $305 million to support the performance guarantee. Of this amount, pursuant to progression with the syndication process, $25 million was released to us in December 2015 as free cash. Accordingly, as of December 31, 2015, the restricted cash balance amounted to $280 million . Furthermore, under the provisions of the $400 million letter of credit, the terms allow for a stepped reduction in the value of the guarantee over time and thus conversely a reduction in the cash collateral requirements. After one year of full production, following conversion and commissioning, the cash collateral requirements will reduce to $112.5 million and again to $45 million potentially in 2019 after the second year of full production. ICBC restricted cash are amounts held by ICBC lessor VIE entities that we are required to consolidate under US GAAP into our financial statements as VIEs (see note 4). Restricted cash relating to projects relates to Performance and Delivery Bonds (the "Bonds") for our FSRU contracts in Kuwait and Jordan, respectively. We issued the Bonds to the charterers to guarantee against our failure to meet our obligations as specified in the contracts. The Performance Bond is valid for the duration of the contract or, in the case of the Delivery Bond, until the vessel is delivered to the charterer. The Bonds are cash collateralized but we have the option to restructure these as non-cash backed bonds. Restricted cash does not include minimum consolidated cash balances of $50.0 million (see note 25) required to be maintained as part of the financial covenants for our loan facilities, as these amounts are included in "Cash and cash equivalents". |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2015 | |
OTHER NON-CURRENT ASSETS [Abstract] | |
OTHER NON-CURRENT ASSETS | 22. OTHER NON-CURRENT ASSETS (in thousands of $) 2015 2014 Mark-to-market interest rate swaps valuation (see note 30) 5,330 12,603 Other long-term assets 45,520 55,839 50,850 68,442 Included within "Other long-term assets" are: (i) $41.0 million of payments made relating to long lead items ordered in preparation for the conversion of the Gimi to a FLNG following agreements to convert her were made effective in December 2014 ( December 31, 2014 : $49.9 million ). The decrease of $8.9 million to $41.0 million in 2015 is mainly due to an agreement with Keppel to allow $10.0 million of the payments earmarked for the Gimi to be utilized against the Hilli conversion to a FLNG. These agreements include certain cancellation provisions, which if exercised prior to December 2016, will allow the termination of the contracts and the recovery of previous milestone payments, less a cancellation fee. If we do not issue our final notice to proceed for the Gimi conversion, we would have to pay termination fees; and (ii) unutilized parts originally ordered for the Golar Spirit FSRU retrofitting following changes to the original project specification. Since acquisition, we have recognized total impairment charges of $7.0 million (see note 8). As of December 31, 2015 and 2014 , the carrying value of these parts was $ nil and $2.0 million , respectively. |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | 23. ACCRUED EXPENSES (in thousands of $) 2015 2014 Vessel operating and drydocking expenses 5,003 13,443 Administrative expenses 11,460 6,054 Interest expense 36,870 11,627 53,333 31,124 Vessel operating and drydocking expense related accruals are composed of vessel operating expenses including direct vessel operating costs associated with operating a vessel, such as crew wages, vessel supplies, routine repairs, maintenance, drydocking, lubricating oils, insurances and management fees for the provision of commercial and technical management services. Administrative expense related accruals are composed of general overhead, including personnel costs, legal and professional fees, costs associated with project development, property costs and other general expenses. |
OTHER CURRENT LIABILITIES (Rest
OTHER CURRENT LIABILITIES (Restated) | 12 Months Ended |
Dec. 31, 2015 | |
OTHER CURRENT LIABILITIES [Abstract] | |
OTHER CURRENT LIABILITIES (Restated) | 24. OTHER CURRENT LIABILITIES (Restated) (in thousands of $) 2015 2014 Restated Restated Deferred drydocking, operating cost and charterhire revenue 1,327 9,514 Mark-to-market interest rate swaps valuation (see note 30) 4,597 3,038 Mark-to-market equity swaps valuation (see note 30) 81,581 13,656 Provision in relation to Golar Viking claim — 13,848 Guarantees issued to Golar Partners (see note 31) 6,096 2,246 Dividends payable 40,466 — Other 14,010 4,115 148,077 46,417 As of December 31, 2014, we had recorded a provision of $13.8 million relating to a Golar Viking legal claim on the basis of a compromise settlement agreement between all parties involved in the arbitration proceedings. Accordingly, during 2014, we recognized an operating loss of $6.4 million in the consolidated statements of operation. The claim was settled in January 2015. As of December 31, 2015, dividends payable of $40.5 million relating to the third quarter of 2015 were subsequently settled in January 2016. As of December 31, 2015, included within 'Other' is $9.0 million due to Keppel (see note 25). |
DEBT (Restated)
DEBT (Restated) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
DEBT (Restated) | 25. DEBT (Restated) (in thousands of $) 2015 2014 Restated Restated Total long-term and short-term debt, net of deferred finance charges 1,835,907 1,353,986 Less: current portion of long-term debt and short-term debt, net of deferred finance charges (491,398 ) (112,853 ) Long-term debt, net of deferred finance charges 1,344,509 1,241,133 The outstanding debt as of December 31, 2015 is repayable as follows: Year ending December 31 (in thousands of $) 2016 501,618 2017 386,008 2018 94,968 2019 145,968 2020 124,126 2021 and thereafter 625,373 Total 1,878,061 Deferred finance charges (42,154 ) Total, net of deferred finance charges 1,835,907 Our debt is denominated in U.S. dollars and bears floating interest rates. The weighted average interest rate for the years ended December 31, 2015 and 2014 was 3.50% and 3.35% , respectively. At December 31, 2015 and 2014, our debt was as follows: (in thousands of $) 2015 2014 Maturity date Golar Arctic facility 80,200 87,500 2019 Golar Viking facility — 82,000 2017 Golar Viking (2015) 62,500 — 2020 Convertible bonds 243,369 238,037 2017 GoFLNG Hilli facility 50,000 — 2017 Hilli shareholder loans: - Keppel loan 44,066 35,572 2027 - B&V loan 5,000 5,000 2027 $1.125 billion facility: - Golar Seal facility 106,612 117,273 2018/2025* - Golar Celsius facility 107,020 117,721 2018/2025* - Golar Crystal facility 111,941 122,602 2019/2026* - Golar Penguin facility 118,144 128,885 2019/2026* - Golar Bear facility 118,524 129,299 2019/2026* - Golar Frost facility 120,357 131,298 2019/2026* Subtotal 1,167,733 1,195,187 ICBC VIE loans: - Golar Glacier facility 177,176 185,600 2016/2024** - Golar Snow facility 178,566 — 2016/2025** - Golar Kelvin facility 182,540 — ** - Golar Ice facility 172,046 — ** Total debt 1,878,061 1,380,787 Deferred finance charge (42,154 ) (26,801 ) Total debt, net of deferred finance charge 1,835,907 1,353,986 * The commercial loan tranche matures earlier of the two dates, with the remaining balancing maturing at the latter date. ** This represents the total loan facilities drawn down by subsidiaries of ICBC which we consider as VIEs. We determined that we are the primary beneficiary of these VIEs, as we are expected to absorb the majority of the VIEs’ losses and residual gains associated with the vessels sold and leased backed from them. Accordingly, these VIEs and their related loan facilities are consolidated in our results. Golar Arctic facility In January 2008, we entered into a secured loan facility for an amount of $120.0 million , for the purpose of financing the purchase of the Golar Arctic . The facility bore interest at LIBOR plus a margin of 0.93% and is repayable in quarterly installments over a term of seven years with a final balloon payment of $86.3 million due in January 2015. In December 2014, this facility was fully repaid and we simultaneously entered into another loan facility with the same lender for $87.5 million . Under the new Golar Arctic facility, interest is at LIBOR plus a margin of 2.25% and is repayable in quarterly installments over a term of five years with a final balloon payment of $52.8 million due in December 2019. Golar Viking facility In January 2005, we entered into a $120.0 million secured loan facility with a bank for the purpose of financing the Golar Viking . This facility was refinanced in August 2007 for an amount of $120.0 million . The Golar Viking facility accrues floating interest at a rate of LIBOR plus a margin of 0.70% . The loan has a term of 10 years and is repayable in quarterly installments with a final balloon payment of $71.0 million due in August 2017. The loan is secured by a mortgage on this vessel. Following the decision to sell the Golar Viking to Equinox in December 2014, we prepaid the full outstanding amount of $82.0 million of the Golar Viking facility in February 2015. Golar Viking (2015) In December 2015, we entered into a $62.5 million secured loan facility, with certain lenders, to finance the Golar Viking upon repossession of the vessel from Equinox. The facility is repayable in quarterly installments over a term of five years with a final balloon payment of $37.8 million due in December 2020. This facility bears interest at LIBOR plus a margin of 2.5% . Convertible bonds In March 2012, we completed a private placement offering for convertible bonds, for gross proceeds of $250.0 million . On inception we recognized a liability of $ 221.9 million and an equity portion of $ 25.0 million . The liability component is recorded at its present value (discounted using an equivalent borrowing rate which does not include the conversion option) and the accretion from its initial discounted value to par. The equity component is valued as the residual of par less the liability value. The impact of this treatment over the life of the instrument is to increase the interest charge to a "normalized" interest rate as the discount on the liability unwinds over the period to settlement. The secured convertible bonds mature in March 2017 when the holder may convert the bonds into our common shares or redeem at 100% of the principal amount. The convertible bonds have an annual coupon rate of 3.75% which is payable quarterly in arrears and have a conversion price of $55.0 . We declared dividends of $1.40 and $1.80 relating to the years ended December 31, 2015 and 2014, respectively. The conversion price was adjusted from $48.40 to $45.82 effective on December 31, 2015. We have secured 13.0 million of our holdings in the subordinated units of Golar Partners against our Convertible Bonds which are due to mature in March 2017. In addition, please refer to note 20 for details of our restricted cash balances. We have a right to redeem the bonds at par plus accrued interest, provided that 90% or more of the bonds issued shall have been redeemed or converted to shares. Accordingly, if the bonds were converted, 5,456,132 shares would be issued if the bonds were converted at the conversion price of $45.82 as at December 31, 2015. The bond may be converted to our ordinary shares by the holders at any time starting on the forty-first business day of the issuance until the tenth business day prior to March 7, 2017. GoFLNG Hilli facility In September 2015, in connection with the conversion of the Hilli to a FLNG, we entered into agreements with a subsidiary of CSSCL for a pre-delivery credit facility and post-delivery sale and leaseback financing. Both the pre-delivery facility and the post-delivery sale and leaseback financings are dependent upon certain conditions precedent before drawing down, in the case of the pre-delivery financing, or execution of the sale and leaseback, in the case of the post-delivery financing. Hilli pre-delivery facility Under the pre-delivery credit facility, a subsidiary of CSSCL will lend us up to $700 million or 60% of the initial project budget for the conversion of the Hilli to partly finance the costs of conversion. The credit facility is non-amortizing with the principal payable at the earlier of August 30, 2018 or sale of the converted Hilli to a subsidiary of CSSCL under the sale and leaseback arrangement (described below under “Hilli post-delivery sale and leaseback financing”). The facility bears interest at a fixed rate of 6.25% per annum. Having satisfied all conditions precedent, we completed our first drawdown on the facility. Accordingly, as of December 31, 2015, the balance outstanding under the pre-delivery facility was $50 million . Subsequent drawdowns are dependent upon reaching further conversion milestones relating to project spend. Hilli post-delivery sale and leaseback financing Pursuant to a memorandum agreement with a subsidiary of CSSCL, we have agreed to sell the converted Hilli upon satisfaction of certain conditions precedent on or before August 30, 2018, for the purchase price of $1.2 billion net of 20% . The proceeds of this sale will be used, in part, to pay off the Hilli pre-delivery financing described above. We will subsequently lease back the vessel on a bareboat charter for a term of 10 years. We have options to repurchase the vessel throughout the charter term, commencing from the fifth year anniversary of the commencement of the bareboat charter, with an obligation to repurchase the vessel at the end of the ten year lease period. Hilli shareholder loans Keppel loan In September 2014, our subsidiary, Golar GHK Lessors Limited ("GGHK"), entered into a Sale and Purchase Agreement with KSI Production Pte Ltd (''KSI''), a subsidiary of Keppel, to sell 10% of its ownership in Golar Hilli Corporation ("Hilli Corp") for $21.7 million . The consideration paid by KSI comprised of the equity value of the shares and a portion of the loans made by GGHK to Hilli Corp. The loan amounted to $21.7 million and is shown under "Long-term debt" in our consolidated financial statements. The loan bears interest at 6% per annum. Installment payments of 2.5% of the value of the loan is payable on a six -monthly basis beginning 12 months after final acceptance of the FLNG with a balloon payment 120 months after final acceptance. Since September 2014 through to December 31, 2015, additional cash calls have been issued to meet funding requirements relating to the conversion of the Hilli to a FLNG. However, during 2015, due to surplus cash balances it was agreed by the Hilli Corp shareholders to return an amount of surplus cash to both KSI and Golar. The amount to be returned to KSI was $9 million and resulted in a decrease in the Keppel loan by the same 1 . Accordingly, as of December 31, 2015, the balance outstanding under the Keppel shareholder loan was $44.1 million . (1) The $9 million surplus cash to be returned to KSI remained outstanding as of December 31, 2015 and is captured within “Other current liabilities” (see note 24). B&V loan In November 2014, our subsidiary, GGHK, entered into a Sale and Purchase Agreement with Black & Veatch International Company (''B&V'') to sell 11 shares of the registered issued share capital of Hilli Corp for $5.0 million . The consideration paid by B&V comprised the equity value of the shares and a portion of the loans made by GGHK to Hilli Corp. The loan amounted to $5.0 million and is shown under "Long-term debt" in our consolidated financial statements. The loan bears interest at 6% per annum. Installment payments of 2.5% of the value of the loan is payable on a six -monthly basis beginning 12 months after final acceptance of the FLNG with a balloon payment 120 months after final acceptance. $1.125 billion facility In July 2013, we entered into a $1.125 billion facility to fund eight of our newbuildings. The facility bears interest at LIBOR plus a margin. The facility is divided into three tranches, with the following general terms: Tranche Amount Proportion of facility Term of loan from date of drawdown Repayment terms K-Sure $449.0 million 40% 12 years Six-monthly installments KEXIM $450.0 million 40% 12 years Six-monthly installments Commercial $226.0 million 20% 5 years Six-monthly installments, unpaid balance to be refinanced after 5 years The K-Sure tranche is funded by a consortium of lenders of which 95% is guaranteed by a Korean Trade Insurance Corporation (or K-Sure) policy; the KEXIM tranche is funded by the Export Import Bank of Korea (or KEXIM). Repayments under the K-Sure and KEXIM tranches are due semi-annually with a twelve year repayment profile. The commercial tranche is funded by a syndicate of banks and is for a term of five years from date of drawdown with a final balloon payment of $131.0 million depending on drawdown dates on certain vessels. In the event the commercial tranche is not refinanced prior to the end of the five years, KEXIM has an option to demand repayment of the balance outstanding under the KEXIM tranche. The facility is further divided into vessel-specific tranches dependent upon delivery and drawdown, with each borrower being the subsidiary owning the respective vessel. Upon delivery of a newbuild, we have the ability to drawdown on the facility. On drawdown, the vessel will become secured against the facility. A commitment fee is chargeable on any undrawn portion of this facility. As at December 2014, all eight vessels had been delivered and the facility had been fully drawn down. Date of drawdown Vessel $1.125 billion facility Amount drawn down October 2013 Golar Seal* $133.2 million $127.9 million October 2013 Golar Celsius $133.2 million $128.4 million May 2014 Golar Crystal $133.2 million $127.9 million September 2014 Golar Penguin $133.2 million $128.9 million September 2014 Golar Bear $133.2 million $129.3 million October 2014 Golar Frost $134.8 million $131.3 million February 2014 Golar Igloo** $161.3 million $161.3 million December 2014 Golar Eskimo*** $162.8 million $162.8 million As at December 2014 $1,125 million $1,098 million * In March 2016, we completed the refinancing of the Seal , which provided approximately $50 million excess cash to liquidity. ** In March 2014, we sold the Golar Igloo to Golar Partners. The Golar Igloo debt of $161.3 million was assumed by Golar Partners. *** In December 2014, we entered into a sale and purchase agreement with Golar Partners to sell the companies that own and operate the Golar Eskimo . Therefore, as of December 31, 2014, we classified the Golar Eskimo debt as "Liabilities held-for-sale" in our consolidated balance sheet. In January 2015, we completed the sale of our interests in the companies that own and operate the Golar Eskimo to Golar Partners. The adjusted consideration for the sale was $388.8 million less Golar Partners’ assumption of the Golar Eskimo debt (see note 6). ICBC VIE loans The following loans relate to ICBCL lessor entities that we consolidate as variable interest entities (“VIEs”). Although we have no control over the funding arrangements of these ICBCL entities, we consider ourselves the primary beneficiary of these VIEs and we are therefore required to consolidate these loan facilities into our financial results. Refer to note 4 for additional information. Golar Glacier facility In October 2014, the special purpose vehicle ("SPV"), Hai Jiao 1401 Limited, which owns the Golar Glacier , entered into secured financing agreements for $184.8 million consisting of a senior and junior facilities which are denominated in USD. The senior loan facility of $153 million is a 10 year non-recourse loan provided by ICBC Brussels, with first priority mortgage on the Golar Glacier. The facility bears interest at LIBOR plus a margin and is repayable in semi-annual installments with a balloon payment on maturity. The short-term junior loan facility of $31.8 million is provided by ICBCIL Finance Co., a related party of ICBCL. The junior loan facility bears interest at 6% and is repayable on demand. Golar Snow facility In January 2015, the SPV, Hai Jiao 1402 Limited, which owns the Golar Snow , entered into secured financing agreements for $182.6 million consisting of senior and junior loan facilities which are denominated in USD. The senior loan facility of $160.0 million is a 10 year non-recourse loan provided by ICBC Brussels, with a first priority mortgage on the Golar Snow . The senior loan facility bears interest at LIBOR plus a margin and is repayable in semi-annual installments with a balloon payment on maturity. The junior loan facility of $22.6 million is provided by ICBCIL Finance Co., a related party of ICBCL. The junior loan facility bears interest at 6% and is repayable on demand. Golar Kelvin facility In January 2015, the SPV, Hai Jiao 1405 Limited, which owns the Golar Kelvin , entered into a secured financing agreement for $182.5 million consisting only of a junior loan facility. The junior loan facility is provided by ICBCIL Finance Co., a related party of ICBCL. The loan facility is denominated in USD and bears interest at 6% and is repayable on demand. Golar Ice facility In February 2015, the SPV, Hai Jiao 1406 Limited, which owns the Golar Ice , entered into a secured financing agreement for $172.0 million consisting only of a junior loan facility. The junior loan facility is provided by Skysea Malta Capital, a related party of ICBCL. The loan facility is denominated in USD and bears interest at 3.00% and is repayable on demand. CMBL VIE Loan In November 2015, the SPV, Sea 24 Leasing Co Ltd, which owns the Golar Tundra , entered into a secured financing agreement. The loan facility is denominated in USD, bears interest at LIBOR plus a margin and is repayable in 2016. As of December 31, 2015, we have classified the debt associated with the Golar Tundra as "Liabilities held-for-sale" in our consolidated balance sheet. See note 19 for additional detail. Debt restrictions Certain of our debts are collateralized by ship mortgages and, in the case of some debt, pledges of shares by each guarantor subsidiary. The existing financing agreements impose operating and financing restrictions which may significantly limit or prohibit, among other things, our ability to incur additional indebtedness, create liens, sell capital shares of subsidiaries, make certain investments, engage in mergers and acquisitions, purchase and sell vessels, enter into time or consecutive voyage charters or pay dividends without the consent of the lenders. In addition, lenders may accelerate the maturity of indebtedness under financing agreements and foreclose upon the collateral securing the indebtedness upon the occurrence of certain events of default, including a failure to comply with any of the covenants contained in the financing agreements. Many of our debt agreements contain certain covenants, which require compliance with certain financial ratios. Such ratios include current assets: liabilities and equity ratio covenants and minimum free cash restrictions. With regards to cash restrictions, we have covenanted to retain at least $50.0 million of cash and cash equivalents on a consolidated group basis. In addition, there are cross default provisions in certain of our and Golar Partners loan and lease agreements. In addition to mortgage security, some of our debt is also collaterized through pledges of equity shares by our guarantor subsidiaries. In April 2016, we received a waiver relating to our requirement to comply with the financial covenant contained in our $1.125 billion facility relating specifically to the financing of the Golar Seal and the Golar Celsius . The covenant requires that on the second anniversary of drawdown under the facility, where we fall below a prescribed EBITDA to debt service ratio, additional cash deposits with the financial institution are required to be made or maintained. Subsequent to the year end, pursuant to the refinancing of the Golar Seal newbuild facility, this covenant is no longer applicable, and in relation to the Golar Celsius , the requisite cash deposit was made such that we were in compliance with this covenant. Except for this covenant, we were in compliance with all our covenants under our various loan agreements. |
OTHER LONG-TERM LIABILITIES (Re
OTHER LONG-TERM LIABILITIES (Restated) | 12 Months Ended |
Dec. 31, 2015 | |
OTHER LONG-TERM LIABILITIES [Abstract] | |
OTHER LONG-TERM LIABILITIES (Restated) | 26. OTHER LONG-TERM LIABILITIES (Restated) (in thousands of $) 2015 2014 Restated Restated Pension obligations (see note 27) 36,279 38,670 Guarantees issued to Golar Partners (see note 31) 16,493 19,271 Other 1,308 1,849 54,080 59,790 |
PENSIONS
PENSIONS | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
PENSIONS | 27. PENSIONS Defined contribution scheme We operate a defined contribution scheme. The pension cost for the period represents contributions payable by us to the scheme. The charge to net income for the years ended December 31, 2015 , 2014 and 2013 was $0.2 million , $0.9 million and $0.5 million , respectively. The total contributions to our defined contribution scheme were as follows: (in thousands of $) 2015 2014 2013 Employers' contributions 1,035 684 533 Defined benefit schemes We have two defined benefit pension plans both of which are closed to new entrants but which still cover certain of our employees. Benefits are based on the employee's years of service and compensation. Net periodic pension plan costs are determined using the Projected Unit Credit Cost method. Our plans are funded by us in conformity with the funding requirements of the applicable government regulations. Plan assets consist of both fixed income and equity funds managed by professional fund managers. We use December 31 as a measurement date for our pension plans. The components of net periodic benefit costs are as follows: (in thousands of $) 2015 2014 2013 Service cost 379 369 468 Interest cost 2,042 2,359 2,159 Expected return on plan assets (946 ) (984 ) (918 ) Recognized actuarial loss 1,195 998 1,415 Net periodic benefit cost 2,670 2,742 3,124 The estimated net loss for the defined benefit pension plans that will be amortized from accumulated other comprehensive income into net periodic pension benefit cost during the year ended December 31, 2016 is $1.1 million . The change in benefit obligation and plan assets and reconciliation of funded status as of December 31 are as follows: (in thousands of $) 2015 2014 Reconciliation of benefit obligation: Benefit obligation at January 1 53,166 50,564 Service cost 379 369 Interest cost 2,042 2,359 Actuarial (gain) loss (2,547 ) 3,700 Foreign currency exchange rate changes (509 ) (686 ) Benefit payments (3,058 ) (3,140 ) Benefit obligation at December 31 49,473 53,166 The accumulated benefit obligation at December 31, 2015 and 2014 was $48.5 million and $51.8 million , respectively. (in thousands of $) 2015 2014 Reconciliation of fair value of plan assets: Fair value of plan assets at January 1 14,496 14,919 Actual return on plan assets (155 ) 896 Employer contributions 2,411 2,459 Foreign currency exchange rate changes (500 ) (638 ) Benefit payments (3,058 ) (3,140 ) Fair value of plan assets at December 31 13,194 14,496 (in thousands of $) 2015 2014 Projected benefit obligation (49,473 ) (53,166 ) Fair value of plan assets 13,194 14,496 Funded status (1) (36,279 ) (38,670 ) Employer contributions and benefits paid under the pension plans include $2.4 million (2014: $2.5 million ) paid from employer assets for the year ended December 31, 2015 . (1) Our plans compose of two plans. The details of these plans are as follows: December 31, 2015 December 31, 2014 (in thousands of $) UK Scheme Marine Scheme Total UK Scheme Marine Scheme Total Projected benefit obligation (10,145 ) (39,328 ) (49,473 ) (11,163 ) (42,003 ) (53,166 ) Fair value of plan assets 10,277 2,917 13,194 10,383 4,113 14,496 Funded status at end of year 132 (36,411 ) (36,279 ) (780 ) (37,890 ) (38,670 ) The fair value of our plan assets, by category, as of December 31, 2015 and 2014 were as follows: (in thousands of $) 2015 2014 Equity securities 9,620 10,032 Debt securities 3,032 4,004 Cash 542 460 13,194 14,496 Our plan assets are primarily invested in funds holding equity and debt securities, which are valued at quoted market price. These plan assets are classified within Level 1 of the fair value hierarchy. The amounts recognized in accumulated other comprehensive income consist of: (in thousands of $) 2015 2014 Net actuarial loss 12,400 15,251 The actuarial loss recognized in the other comprehensive income is net of tax of $ nil , $0.2 million , and $0.1 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. The asset allocation for our Marine scheme at December 31, 2015 and 2014 , and the target allocation for 2016, by asset category are as follows: Marine scheme Target allocation 2016 (%) 2015 (%) 2014 (%) Equity 30-65 30-65 30-65 Bonds 10-50 10-50 10-50 Other 20-40 20-40 20-40 Total 100 100 100 The asset allocation for our UK scheme at December 31, 2015 and 2014 , and the target allocation for 2016, by asset category are as follows: UK scheme Target allocation 2016 (%) 2015 (%) 2014 (%) Equity 75.0 75.7 69.0 Bonds 25.0 24.3 31.0 Total 100 100 100 Our investment strategy is to balance risk and reward through the selection of professional investment managers and investing in pooled funds. We are expected to make the following contributions to the schemes during the year ended December 31, 2016, as follows: (in thousands of $) UK scheme Marine scheme Employer contributions 592 1,800 We are expected to make the following pension disbursements as follows: (in thousands of $) UK scheme Marine scheme 2016 444 3,000 2017 296 3,000 2018 444 3,000 2019 296 3,000 2020 370 3,000 2021 - 2025 2,590 15,000 The weighted average assumptions used to determine the benefit obligation for our plans for the years ended December 31 are as follows: 2015 2014 Discount rate 4.34 % 3.95 % Rate of compensation increase 2.07 % 2.21 % The weighted average assumptions used to determine the net periodic benefit cost for our plans for the years ended December 31 are as follows: 2015 2014 Discount rate 3.95 % 4.60 % Expected return on plan assets 6.75 % 6.75 % Rate of compensation increase 2.21 % 2.71 % The overall expected long-term rate of return on assets assumption used to determine the net periodic benefit cost for our plans for the years ending December 31, 2015 and 2014 is based on the weighted average of various returns on assets using the asset allocation as at the beginning of 2015 and 2014. For equities and other asset classes, we have applied an equity risk premium over ten year governmental bonds. |
SHARE CAPITAL AND SHARE OPTIONS
SHARE CAPITAL AND SHARE OPTIONS | 12 Months Ended |
Dec. 31, 2015 | |
SHARE CAPITAL AND SHARE OPTIONS [Abstract] | |
SHARE CAPITAL AND SHARE OPTIONS | 28. SHARE CAPITAL AND SHARE OPTIONS Our ordinary shares are listed on the Nasdaq Stock Exchange. As at December 31, 2015 and 2014 , our authorized and issued share capital is as follows: Authorized share capital: (in thousands of $, except per share data) 2015 2014 150,000,000 (2014: 150,000,000) common shares of $1.00 each 150,000 150,000 Issued share capital: (in thousands of $, except per share data) 2015 2014 93,546,663 (2014: 93,414,672) outstanding issued common shares of $1.00 each 93,547 93,415 We issued 0.1 million and 0.2 million common shares upon the exercise of stock options for the years ended December 31, 2015 and 2014 , respectively. On June 30, 2014, we closed a registered offering of 12,650,000 of our common shares, par value $1.00 per share, which included 1,650,000 common shares purchased pursuant to the underwriters' option to purchase additional common shares. We raised net proceeds of $660.9 million . In September 2014, we closed a secondary offering of 32,000,000 shares of our common stock (including 4,173,913 common shares exercised under the underwriter's option) held by our former principal shareholder, World Shipholding Limited ("World Shipholding"), at a price to the public of $ 58.50 per share. Following the offering, World Shipholding’s stake in us was reduced from 36.2% to 1.9% as of December 2014. At December 31, 2015, World Shipholding's stake in us was 0.0% . We did not receive any proceeds from the sale of common shares by World Shipholding. Treasury shares In November 2014, our board of directors approved a new share repurchase program under which we may repurchase up to 5% of Golar's outstanding stock over the next two years. As at December 31, 2015 , we had repurchased 0.3 million shares for a consideration of $12.3 million and was party to a total return swap ("TRS") indexed to 3.2 million of Golar's shares at an average price of $41.10 . There is at present no obligation for us to purchase any shares from the counterparty Share options Golar share options In February 2002, our board of directors approved the Golar LNG Limited Share Option Scheme ("Golar Scheme"). The Golar Scheme permits the board of directors, at its discretion, to grant options to acquire shares in the Company to employees and directors of the Company or its subsidiaries. Options granted under the scheme will vest at a date determined by the board at the date of the grant. The options granted under the plan to date have five year terms and vest equally over a period of three to four years. There is no maximum number of shares authorized for awards of equity share options, and either authorized unissued shares or treasury shares in the Company may be used to satisfy exercised options. During 2015 and 2014, the Company granted 0.9 million and 1.8 million share options, respectively, to directors and employees. As at December 31, 2015 , 2014 and 2013 , the number of options outstanding in respect of Golar shares was 2.2 million , 2.1 million and 0.5 million , respectively. The fair value of each option award is estimated on the grant date or modification date using the Black-Scholes option pricing model. The weighted average assumptions used are noted in the table below: 2015 2014 2013 Risk free interest rate 1.8 % 1.8 % 2.0 % Expected volatility of common stock 53.1 % 53.6 % 56.9 % Expected dividend yield 0.0 % 0.0 % 0.0 % Expected life of options (in years) 3.0 years 2.9 years 2.6 years The assumption for expected future volatility is based primarily on an analysis of historical volatility of our common stock. Historically, we used the simplified method to estimate the expected term of options, based on the vesting period of the award and this represents the period of time that options granted are expected to be outstanding. We ceased to use the simplified method for the share options awarded in 2015 because the exercise price of the options was higher than the market value of the Company's shares. The vesting period of the 2015 share options equates the contractual term. The dividend yield has been estimated at 0.0% as the exercise price of the options, granted in 2006 and later, are reduced by the value of dividends, declared and paid on a per share basis. A summary of option activity as at December 31, 2015 , 2014 and 2013 , and changes during the years then ended are presented below: (in thousands of $, except per share data) Shares (in '000s) Weighted average exercise price Weighted average remaining contractual term (years) Options outstanding at December 31, 2012 581 $ 7.86 0.8 Exercised during the year (76 ) $ 8.01 Forfeited during the year (7 ) $ 6.58 Options outstanding at December 31, 2013 498 $ 6.36 0.3 Granted during the year 1,793 $ 58.26 Exercised during the year (185 ) $ 7.20 Options outstanding at December 31, 2014 2,106 $ 49.75 4.4 Exercised during the year (132 ) $ 1.70 Forfeited during the year (685 ) $ 56.75 Granted during the year 906 $ 56.63 Options outstanding at December 31, 2015 2,195 $ 52.02 3.9 Options exercisable at: December 31, 2015 190 $ 3.97 0.87 December 31, 2014 317 $ 4.09 1.83 December 31, 2013 419 $ 6.50 0.10 The exercise price of all options except for those issued in 2001, is reduced by the amount of the dividends declared and paid; the above figures for options granted, exercised and forfeited show the average of the prices at the time of granting, exercising and forfeiting of the options, and for options outstanding at the beginning and end of the year, the average of the reduced option prices is shown. The intrinsic value of share options exercised in the years ended December 31, 2015 , 2014 and 2013 was $0.4 million , $7.8 million and $2.2 million , respectively. As at December 31, 2015 , the intrinsic value of share options that were both outstanding and exercisable was $ nil ( 2014 : $ nil ) as the exercise price was higher than the market value of the share options at year end. The total fair value of share options vested in the years ended December 31, 2015 , 2014 and 2013 was $0.1 million , $2.1 million and $3.8 million , respectively. Compensation cost of $3.7 million , $1.6 million and $0.5 million has been recognized in the consolidated statement of operations for the years ended December 31, 2015 , 2014 and 2013 , respectively. As of December 31, 2015 , the total unrecognized compensation cost amounted to $31.0 million ( 2014 : $28.0 million ) relating to options outstanding is expected to be recognized over a weighted average period of 3.9 years . |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Restated) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Restated) | 29. ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Restated) Accumulated Other Comprehensive (Loss) Income As at December 31, 2015 , 2014 and 2013 , our accumulated other comprehensive (loss) income balances consisted of the following components: (in thousands of $) 2015 2014 2013 Restated Restated Restated Net (loss) gain on qualifying cash flow hedging instruments, including share of affiliate (192 ) 8,672 2,003 Losses associated with pensions, net of tax recoveries of $nil (2014: $0.2 million) (12,400 ) (15,251 ) (12,731 ) Accumulated other comprehensive (loss) income (12,592 ) (6,579 ) (10,728 ) The components of accumulated other comprehensive (loss) income consisted of the following: Pension and post retirement benefit plan adjustments Gains (losses) on cash flow hedges Share of affiliates comprehensive income Total accumulated comprehensive (loss) income Restated Restated Balance at December 31, 2012 (17,809 ) (6,832 ) (180 ) (24,821 ) Other comprehensive income before reclassification 5,078 4,148 4,859 14,085 Amount reclassified from accumulated other comprehensive (loss) income — 8 — 8 Net current-period other comprehensive income 5,078 4,156 4,859 14,093 Balance at December 31, 2013 (12,731 ) (2,676 ) 4,679 (10,728 ) Other comprehensive income (loss) before reclassification (2,520 ) 3,483 (49 ) 914 Amount reclassified from accumulated other comprehensive income — 3,235 — 3,235 Net current-period other comprehensive income (loss) (2,520 ) 6,718 (49 ) 4,149 Balance at December 31, 2014 (15,251 ) 4,042 4,630 (6,579 ) Other comprehensive (loss) income before reclassification 2,851 — (4,822 ) (1,971 ) Amount reclassified from accumulated other comprehensive income — 382 — 382 Net current-period other comprehensive (loss) income 2,851 382 (4,822 ) (1,589 ) Transfer of additional paid in capital — (4,424 ) — (4,424 ) Balance at December 31, 2015 (12,400 ) — (192 ) (12,592 ) The amounts reclassified from accumulated other comprehensive (loss) income for the years ended December 31, 2015, 2014 and 2013 consisted of the following: Details of accumulated other comprehensive (loss) income components Amounts reclassified from accumulated other comprehensive (loss) income Affected line item in the statement of operations 2015 2014 2013 (Gains) losses on cash flow hedges: Foreign currency swap — — (718 ) Other financial items, net Interest rate swap 382 3,235 (1,644 ) Other financial items, net Interest rate swap — — 2,370 Gain on sale of Golar Maria Total reclassifications for the year 382 3,235 8 |
FINANCIAL INSTRUMENTS (Restated
FINANCIAL INSTRUMENTS (Restated) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS (Restated) | 30. FINANCIAL INSTRUMENTS (Restated) Interest rate risk management In certain situations, we may enter into financial instruments to reduce the risk associated with fluctuations in interest rates. We have entered into swaps that convert floating rate interest obligations to fixed rates, which from an economic perspective hedge the interest rate exposure. We do not hold or issue instruments for speculative or trading purposes. The counterparties to such contracts are major banking and financial institutions. Credit risk exists to the extent that the counterparties are unable to perform under the contracts; however we do not anticipate non-performance by any of our counterparties. We manage our debt portfolio with interest rate swap agreements in U.S. dollars to achieve an overall desired position of fixed and floating interest rates. We hedge account for certain of our interest rate swap arrangements designated as cash flow hedges. The net gains and losses have been reported in a separate component of accumulated other comprehensive income to the extent the hedges are effective. The amount recorded in accumulated other comprehensive income will subsequently be reclassified into earnings in the same period as the hedged items affect earnings. As at December 31, 2015, we do not expect any material amounts to be reclassified from accumulated other comprehensive income to earnings during the next twelve months. For the years ended December 31, 2015, 2014 and 2013 we recognized a net gain of $ nil , $0.9 million and net gain of $0.5 million , respectively, in earnings relating to the ineffective portion of our interest rate swap agreements designated as hedges. As of December 31, 2015, we have entered into the following interest rate swap transactions involving the payment of fixed rates in exchange for LIBOR as summarized below: Instrument (in thousands of $) Year end Notional value Maturity Dates Fixed Interest Rates Interest rate swaps: Receiving floating, pay fixed 2015 1,250,000 2018/ 2021 1.13% to 1.94% Receiving floating, pay fixed 2014 1,475,937 2015/ 2021 1.13% to 4.52% The effect of cash flow hedging relationships relating to swap agreements on the consolidated statements of operations is as follows: (in thousands of $) Effective portion gain/ (loss) reclassified from Accumulated Other Comprehensive Loss Ineffective Portion Derivatives designated as hedging instruments 2015 2014 2013 2015 2014 2013 Interest rate swaps Other financial items, net 382 3,235 (1,644 ) — 876 542 Interest rate swaps Gain on sale of the Golar Maria , net — — 2,370 — — — The effect of cash flow hedging relationships relating to interest rate swap agreements to the consolidated statements of changes in equity is as follows: (in thousands of $) Amount of gain recognized in other comprehensive income on derivative (effective portion) Derivatives designated as hedging instruments 2015 2014 2013 Interest rate swaps — 3,483 4,148 As of December 31, 2015 and 2014, our accumulated other comprehensive loss included $ nil and $ 4.0 million of unrealized losses, respectively, on interest rate swap agreements designated as cash flow hedges. Additionally, as of December 31, 2015, our accumulated other comprehensive loss included $0.2 million (2014: $ 4.6 million income) of unrealized losses being our share of Golar Partners' other comprehensive income or loss on swap agreements designated as cash flow hedges (see note 29). As of December 31, 2015, we do not expect any material amounts to be reclassified from accumulated other comprehensive income to earnings during the next twelve months. Foreign currency risk The majority of the vessels' gross earnings are receivable in U.S. dollars. The majority of our transactions, assets and liabilities are denominated in U.S. dollars, our functional currency. However, we incur expenditure in other currencies. There is a risk that currency fluctuations will have a negative effect on the value of our cash flows. Equity price risk Our Board of the Directors have approved a share repurchase scheme, which is being partly financed through the use of total return swap or equity swap facilities with third party banks, indexed to our own shares. We carry the risk of fluctuations in the share price of those acquired shares. The banks are compensated at their cost of funding plus a margin. As at December 31, 2015 , the counterparty to the equity swap transactions had acquired 3.2 million shares in the Company at an average price of $41.10 . In addition, we entered into a forward contract for the acquisition of 107,000 shares in Golar Partners at an average price of $18.75 . The effect of our total return swap facilities in our consolidated statement of operations as at December 31, 2015 is a loss of $67.9 million . There is at present no obligation for us to purchase any shares from the counterparty. In addition to the above equity swap transactions linked to our own securities, we may from time to time enter into short-term equity swap arrangements relating to securities of other companies. Fair values of financial instruments We recognize our fair value estimates using a fair value hierarchy based on the inputs used to measure fair value. The fair value hierarchy has three levels based on reliability of inputs used to determine fair value as follows: Level 1: Quoted market prices in active markets for identical assets and liabilities; Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data; and Level 3: Unobservable inputs that are not corroborated by market data. There have been no transfers between different levels in the fair value hierarchy during the year. The carrying value and fair value of our financial instruments, excluding short term receivables and payables, at December 31, 2015 and 2014 are as follows: Fair value 2015 2015 2014 2014 (in thousands of $) Hierarchy Carrying Value Fair Value Carrying Value Fair Value Restated Restated Restated Restated Restated Non-Derivatives: Cash and cash equivalents Level 1 105,235 105,235 191,410 191,410 Restricted cash and short-term receivables Level 1 408,563 408,563 74,587 74,587 Cost method investments (1) Level 3 7,347 7,347 7,347 7,347 Short-term debt due from related parties (2) Level 2 — — 20,000 20,000 Short-term loans receivable (2) Level 2 6,375 6,375 8,141 8,141 Short-term debt (2) Level 2 408,978 408,978 108,781 108,781 Current portion of long-term debt (3) Level 2 92,640 92,640 7,650 7,650 Long-term debt – convertible bond (3) Level 2 243,369 231,945 238,037 251,555 Long-term debt (3) Level 2 1,133,074 1,133,074 1,026,319 1,026,319 Derivatives: Interest rate swaps asset (4) (5) Level 2 5,330 5,330 12,603 12,603 Interest rate swaps liability (4) (5) Level 2 4,597 4,597 3,038 3,038 Total return equity swap liability (6) (7) Level 2 81,581 81,581 13,656 13,656 1. The carrying value of our cost method investments includes our holdings in OLT Offshore LNG Toscana S.p.A (or OLT-O), as we have no established method of determining the fair value of this investment, we have not estimated its fair value as of December 31, 2015, but have not identified any changes in circumstances which would alter our view of fair value as disclosed. 2. The carrying amounts of our short-term debts and loans receivable approximate their fair values because of the near term maturity of these instruments. 3. Our debt obligations are recorded at amortized cost in the consolidated balance sheets. 4. Derivative liabilities are captured within other current liabilities and derivative assets are captured within long-term assets on the balance sheet. 5. The fair value of our derivative instruments is the estimated amount that we would receive or pay to terminate the agreements at the reporting date, taking into account current interest rates, foreign exchange rates, closing quoted market prices and our creditworthiness and that of our counterparties. The fair value/carrying value of interest rate swap agreements that qualify and are designated as cash flow hedges for accounting purposes as of December 31, 2014 was $0.4 million (with a notional amount of $100.9 million ). We had no designated cash flow hedges for accounting purposes as of December 31, 2015. 6. The fair value of total return equity swaps is calculated using the closing prices of the underlying listed shares, dividends paid since inception and the interest rate charged by the counterparty. 7. The fair values of the equity derivatives are classified as other current liabilities in the balance sheet. The following methods and assumptions were used to estimate the fair value of each class of financial instrument: The carrying values of accounts receivable, accounts payable, accrued liabilities and working capital facilities approximate fair values because of the short maturity of these instruments. The carrying value of cash and cash equivalents, which are highly liquid, is a reasonable estimate of fair value. The carrying value for restricted cash and short-term receivables is considered to be equal to the estimated fair value because of their near term maturity. The estimated fair value for the liability component of the unsecured convertible bonds is based on the quoted market price as at the balance sheet date. The estimated fair values for both the floating long-term debt and long-term debt to a related party are considered to be equal to the carrying values since they bear variable interest rates, which are adjusted on a quarterly or six-monthly basis. The estimated fair value of the financial guarantees is considered to be equal to the carrying amount. The financial guarantees were fair valued as of the deconsolidation date, December 13, 2012 or inception date. We did not identify any material changes in the fair value of the financial guarantees as at December 31, 2015. The fair value measurement of a liability must reflect the non-performance of the entity. Therefore, the impact of our credit worthiness has also been factored into the fair value measurement of the derivative instruments in a liability position. The credit exposure of interest rate swap agreements is represented by the fair value of contracts with a positive value at the end of each period, reduced by the effects of master netting arrangements. It is our policy to enter into master netting agreements with counterparties to derivative financial instrument contracts, which give us the legal right to discharge all or a portion of the amounts owed to the counterparty by offsetting them against amounts that the counterparty owes to us. The following table summarizes the fair value of derivative instruments on a gross basis recorded in our consolidated balance sheets as of December 31, 2015 and 2014: Balance sheet classification 2015 2014 (in thousands of $) Asset Derivatives Interest rate swaps not designated as hedges Other non-current assets 5,330 12,603 Liability Derivatives Interest rate swaps designated as hedges Other current liabilities — 365 Interest rate swaps not designated as hedges Other current liabilities 4,597 2,673 Total return equity swap not designated as hedge Other current liabilities 81,581 13,656 Total liability derivatives 86,178 16,694 We have elected not to offset the fair values of derivative assets and liabilities executed with the same counterparty that are generally subject to enforceable master netting arrangements. However, if we were to offset and record the asset and liability balances of derivatives on a net basis, the amounts presented in our consolidated balance sheets as of December 31, 2015 and 2014 would be adjusted as detailed in the following table: 2015 2014 Gross amounts presented in the consolidated balance sheet Gross amounts not offset in the consolidated balance sheet subject to netting agreements Net amount Gross amounts presented in the consolidated balance sheet Gross amounts not offset in the consolidated balance sheet subject to netting agreements Net amount (in thousands of $) Total asset derivatives 5,330 (216 ) 5,114 12,603 (292 ) 12,311 Total liability derivatives 4,597 (216 ) 4,381 3,038 (292 ) 2,746 The total return equity swap has a credit arrangement that requires us to provide cash collateral equaling 20% of the initial purchase price and to subsequently post additional cash collateral that corresponds to any further unrealized loss. As at December 31, 2015 cash collateral amounting to $92.8 million has been provided (see note 20). Concentrations of risk There is a concentration of credit risk with respect to cash and cash equivalents and restricted cash to the extent that substantially all of the amounts are carried with Nordea Bank of Finland PLC, DNB Bank ASA, Citibank and Standard Chartered. However, we believe this risk is remote, as they are established and reputable establishments with no prior history of default. There is a concentration of financing risk with respect to our long-term debt to the extent that a substantial amount of our long-term debt is carried with K-Sure, KEXIM and commercial lenders of our $1.125 billion facility, as well as with ICBCL in regards to our VIE loans (see notes 4 and 25). We believe these counterparties to be sound financial institutions. Therefore, we believe this risk is remote. We have a substantial equity investment in our former subsidiary, Golar Partners, that from December 13, 2012 is considered as our affiliate and not our controlled subsidiary. As of December 31, 2015, our ownership interest was 30.7% and the aggregate value of the investments recorded in our balance sheet as of December 31, 2015 was $536.1 million being the aggregate of our ownership interest (common, subordinated and general partner interests) plus IDRs. Accordingly, the value of our investments and the income generated from Golar Partners is subject to specific risks associated with its business. Golar Partners operates in the same business as us and as of December 31, 2015 had a fleet of ten vessels managed by us, under contract, operating under medium to long-term charters with a concentrated number of charterers; BG Group, Petrobras, Pertamina, DUSUP, Nusantara Regas, KNPC, Eni and NEPCO. Furthermore, in the event the decline in the fair value of these investments to below the carrying value was determined to be other-than-temporary, we would be required to recognize an impairment loss (see note 13). A further concentration of supplier risk exists in relation to our vessels undergoing FLNG conversion with Keppel and Black and Veatch. However, we believe this risk is remote as Keppel are global leaders in the shipbuilding and vessel conversion sectors while B&V is a global engineering, procurement and construction company. As is typical with newbuilding and conversion contracts, we have entered into either refund guarantee agreements with several banks in respect of newbuilding yards or we have been given guarantees by conversion yards. |
RELATED PARTY TRANSACTIONS (Res
RELATED PARTY TRANSACTIONS (Restated) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS (Restated) | 31. RELATED PARTY TRANSACTIONS (Restated) a) Transactions with Golar Partners and subsidiaries: Income (expenses): (in thousands of $) 2015 2014 2013 Restated Transactions with Golar Partners and subsidiaries: Management and administrative services fees revenue (i) 2,949 2,877 2,569 Ship management fees revenue (ii) 7,577 7,746 6,701 Charter-hire expenses (iii) (41,555 ) — — Gain on disposals to Golar Partners (iv) 102,406 43,287 82,270 Interest income on vendor financing loan (v) 4,217 — — Interest expense on short-term credit facility (203 ) — — Interest income on high-yield bonds (vi) — — 1,972 Share options expense recharge (x) 297 — — Total 75,688 53,910 93,512 Receivables (payables): The balances with Golar Partners and subsidiaries as of December 31, 2015 and 2014 consisted of the following: (in thousands of $) 2015 2014 Trading balances (owing to) due from Golar Partners and subsidiaries (vii) (4,400 ) 13,453 Methane Princess lease security deposit movements (viii) (2,728 ) (3,486 ) $20.0 million revolving credit facility (ix) — 20,000 Total (7,128 ) 29,967 (i) Management and administrative services agreement - On March 30, 2011, Golar Partners entered into a management and administrative services agreement with Golar Management, a wholly-owned subsidiary of ours, pursuant to which Golar Management will provide to Golar Partners certain management and administrative services. The services provided by Golar Management are charged at cost plus a management fee equal to 5% of Golar Management’s costs and expenses incurred in connection with providing these services. Golar Partners may terminate the agreement by providing 120 days written notice. (ii) Ship management fees - Golar and certain of its affiliates charge ship management fees to Golar Partners for the provision of technical and commercial management of the vessels. Each of Golar Partners’ vessels is subject to management agreements pursuant to which certain commercial and technical management services are provided by Golar Management and Golar Wilhelmsen AS ("Golar Wilhelmsen"), a partnership that is jointly controlled by Golar and by Wilhelmsen Ship Management (Norway) AS. Golar Partners may terminate these agreements by providing 30 days written notice. On September 4, 2015, Golar Wilhelmsen became a wholly owned subsidiary of Golar as a result of our acquisition of the remaining 40% interest owned by Wilhelmsen Ship Management (Norway) AS. Accordingly, since this date these ship management fees have been eliminated on consolidation. (iii) Charter-hire expenses - This consists of the charter-hire expenses that we incurred for the charter back of the Golar Eskimo and the Golar Grand from Golar Partners in 2015. In connection with the disposal of the Golar Grand to Golar Partners in November 2012, we issued an option where in the event that the charterer did not renew or extend its charter for the Golar Grand beyond February 2015, the Partnership had the option to require us to charter the vessel through to October 2017. In February 2015, the option was exercised. Accordingly, we recognized charter-hire costs of $28.7 million in 2015 in respect of the Golar Grand . This excludes the expense of $3.9 million , representing the incremental liability recognized in 2015 upon re-measurement of the guarantee obligation, net of the impact of the respective amortization in 2015. In connection with the disposal of the Golar Eskimo in January 2015, we entered into an agreement with Golar Partners to pay $22 million to charter back the vessel until June 30, 2015. Accordingly, of these amounts payable, we recognized total charter-hire expenses of $12.9 million in relation to this agreement in 2015. For additional detail refer to to (iv) below. (iv) Gain on disposals - This refers to the gains arising on the disposals of the Golar Eskimo, the Golar Igloo and the Golar Maria to Golar Partners. These disposals are further described in note 6. In January 2015, we completed the disposal of our interests in the companies that own and operate the FSRU, the Golar Eskimo , which resulted in a gain on disposal of $102.4 million . In addition, we provided Golar Partners with a loan facility for an amount of $220.0 million to part fund their purchase. The loan was non-amortizing with a final balloon payment due in December 2016, and bore interest at a rate equal to LIBOR plus a blended margin of 2.84% . The loan was fully repaid by the end of 2015. In connection with the disposal of the Golar Eskimo , we also entered into an agreement to pay Golar Partners $22 million (of which $12.9 million was recognized as charter-hire expense) for the period from January 20, 2015 through to June 30, 2015 for the right to use the Golar Eskimo and receive all revenues earned from the vessel during this period. The balance of $8.1 million paid represented the financing of future operating leasing income to be received by Golar Partners. In addition, in exchange for entering into the charter back arrangement we agreed with Golar Partners that should we achieve a favorable renegotiation and extension of the charter with the charterer, which increased the value of the charter sold along with the vessel, Golar Partners would pay additional consideration to us equivalent to any increase in value. No charter renegotiation took place and no additional consideration was due or paid. In March 2014, we completed the sale of our interests in the company that owns and operates the FSRU, the Golar Igloo, which resulted in a gain on disposal of $43.3 million . In February 2013, we completed the disposal of our interests in the company that owns and operates the LNG carrier, the Golar Maria , which resulted in a gain on disposal of $82.3 million . (v) Golar Eskimo vendor loan - As discussed further in (iv) above, we granted the Partnership a loan facility for an amount of $220.0 million to part fund their purchase of the Golar Eskimo in January 2015. The loan was fully repaid by the end of 2015. (vi) High-yield bonds - In October 2012, Golar Partners completed the issuance of NOK 1,300.0 million in senior unsecured bonds that mature in October 2017. The aggregate principal amount of the bonds is equivalent to approximately $227.0 million . Of this amount, approximately $35.0 million , was issued to us. We sold our participation in the high yield bonds in November 2013. (vii) Trading balances - Receivables and payables with Golar Partners and its subsidiaries are comprised primarily of unpaid management fees, charter-hire expenses, advisory and administrative services and may include working capital adjustments in respect of disposals to the Partnership. In addition, certain receivables and payables arise when we pay an invoice on behalf of a related party and vice versa. Receivables and payables are generally settled quarterly in arrears. Trading balances owing to or due from Golar Partners and its subsidiaries are unsecured, interest-free and intended to be settled in the ordinary course of business. They primarily relate to recharges for trading expenses paid on behalf of Golar Partners, including ship management and administrative service fees due to us. In November 2015, we received funding from Golar Partners in the amount of $50 million for a fixed period of 28 days. Golar Partners charged interest on this balance at a rate of LIBOR plus 5.0% . (viii) Methane Princess lease security deposit movements - This represents net advances from Golar Partners since its IPO, which correspond with the net release of funds from the security deposits held relating to a lease for the Methane Princess . This is in connection with the Methane Princess tax lease indemnity provided to Golar Partners under the Omnibus Agreement. Accordingly, these amounts will be settled as part of the eventual termination of the Methane Princess lease. (ix) $20 million revolving credit facility - In April 2011, we entered into a $20.0 million revolving credit facility with Golar Partners. This facility is unsecured and interest-free, maturing in April 2015. However, this facility was extended until its repayment in June 2015. (x) Share options expense - This relates to a recharge of share option expense to Golar Partners in relation to share options in Golar granted to certain of Golar Partners directors and officers during 2015. Other transactions: Payment under Omnibus Agreement In 2013, Golar Partners incurred expenses of $3.3 million which were indemnified and settled by us in accordance with the terms of the Omnibus Agreement. This was recorded in our statement of operations as "Other non-operating expense". Accordingly, for each of the years ended December 31, 2015, 2014 and 2013, in respect of this indemnification, we recognized an expense in our statement of operations of $ nil , $0.5 million and $0.5 million , respectively. Golar Partners distributions to us Golar Partners has declared and paid quarterly distributions totaling $52.1 million , $61.3 million , and $63.7 million to us for each of the years ended December 31, 2015, 2014 and 2013, respectively. Indemnifications and guarantees: a) Tax lease indemnifications: Under the Omnibus Agreement, we have agreed to indemnify Golar Partners in the event of any tax liabilities in excess of scheduled or final settlement amounts arising from the Methane Princess leasing arrangement and the termination thereof. In addition, to the extent Golar Partners incurs any liabilities as a consequence of a successful challenge by the U.K. Tax Authorities with regard to the initial tax basis of the transactions relating to any of the U.K. tax leases or in relation to the lease restructuring terminations in 2010, we have agreed to indemnify Golar Partners. The maximum possible amount in respect of the tax lease indemnification is not known as the determination of this amount is dependent on our intention of terminating this lease and the various market factors present at the point of termination. As of December 31, 2015, we recognized a liability of $11.5 million in respect of the tax lease indemnification to Golar Partners representing the fair value at deconsolidation in December 2012 (2014: $11.5 million ). b) Environmental and other indemnifications: Under the Omnibus Agreement, we have agreed to indemnify Golar Partners until April 13, 2016, against certain environmental and toxic tort liabilities with respect to the assets that we contributed or sold to Golar Partners to the extent they arose prior to the time they were contributed or sold. However, claims are subject to a deductible of $0.5 million and an aggregate cap of $5.0 million . c) Performance guarantees: We issued performance guarantees to third party charterers in connection with the Time Charter Party agreements entered into with the vessel operating entities who are now subsidiaries of Golar Partners. These performance guarantees relate to the Golar Spirit , the Golar Freeze , the Methane Princess , the Golar Winter and the Golar Mazo . The maximum potential exposure in respect of the performance guarantees issued by the Company is not known as these matters cannot be absolutely determined. The likelihood of triggering the performance guarantees is remote based on the past performance of both our combined fleets. d) Debt guarantee: The debt guarantees were issued by us to third party banks in respect of certain secured debt facilities relating to Golar Partners and subsidiaries. The liability of $4.5 million , representing the fair value on deconsolidation, was being amortized over the remaining term of the respective debt facilities with the credit recognized in "Other financial items, net". As at December 31, 2015, the liability had been fully amortized. Golar Tundra financing related guarantees In November 2015, we sold the Golar Tundra to a CMBL entity (''CMBL lessor'') and subsequently leased back the vessel on a bareboat charter for a term of up to ten years through our subsidiary, Golar LNG NB13 Corporation, or Tundra Corp. Tundra Corp has options to repurchase the vessel throughout the charter term at fixed pre-determined amounts, commencing from the third anniversary of the commencement of the bareboat charter, with an obligation to repurchase the vessel at the end of the ten year lease period. In connection with this transaction, the Company has provided a guarantee to CMBL lessor that, in the event of default by Tundra Corp of its obligations under the lease, the Company will settle any liabilities due within 5 business days (“primary guarantor”). Golar Partners has provided a further guarantee that, in the event the Company is unable to satisfy its obligations as the primary guarantor, then CMBL lessor may look to Golar Partners as the deficiency guarantor. Under a separate side agreement, the Company has agreed to indemnify Golar Partners for any costs incurred with respect to its position as the deficiency guarantor. These agreements, including associated guarantees, contemplate that in the event the equity interests in Tundra Corp are sold by Golar to the Partnership, the guarantee between Golar and CMBL lessor will fall away. The guarantees cover the amounts under the bareboat charter, the details of which are disclosed in Note 4. "Variable Interest Entities." Omnibus Agreement In connection with the IPO of Golar Partners, we entered into an Omnibus Agreement with Golar Partners governing, among other things, when we and Golar Partners may compete against each other as well as rights of first offer on certain FSRUs and LNG carriers. Under the Omnibus Agreement, Golar Partners and its subsidiaries agreed to grant a right of first offer on any proposed sale, transfer or other disposition of any vessel it may own. Likewise, we agreed to grant a similar right of first offer to Golar Partners for any vessel under a charter for five or more years that it may own. These rights of first offer will not apply to a (a) sale, transfer or other disposition of vessels between any affiliated subsidiaries, or pursuant to the terms of any current or future charter or other agreement with a charter party or (b) merger with or into, or sale of substantially all of the assets to, an unaffiliated third-party. In addition, the Omnibus Agreement provides for certain indemnities to Golar Partners in connection with the assets transferred from us. b) Net income (expenses) from (due to) other related parties (excluding Golar Partners): On September 10, 2014 following a secondary offering of 32 million of our common shares by World Shipholding Limited (''World Shipholding''), its stake in us was reduced from 36.2% to 1.9% . As of December 31, 2015 and 2014, World Shipholding owned 0.0% and 1.9% of Golar, respectively. Following this, World Shipholding, Frontline Ltd (''Frontline''), Seatankers Management Company Limited (''Seatankers''), Ship Finance AS (''Ship Finance'') and Seadrill Ltd (''Seadrill''), ceased to be our related parties. Transactions with these companies until September 10, 2014 are presented below: (in thousands of $) 2015 2014 2013 Frontline (i) — 34 49 Seatankers (i) — (112 ) (45 ) Ship Finance (i) — 116 207 Seadrill (i) — (5 ) — Golar Wilhelmsen (ii) (2,246 ) (7,031 ) (4,899 ) World Shipholding (iii) — — (976 ) Payables to related parties (excluding Golar Partners): (in thousands of $) 2015 2014 Golar Wilhelmsen (ii) — (1,394 ) i. We used to transact business with the following parties, being companies in which World Shipholding and companies associated with World Shipholding have a significant interest: Frontline, Seatankers, Ship Finance and Seadrill. Net expense/income from Frontline, Seatankers and Ship Finance comprise fees for management support, corporate and insurance administrative services, net of income from supplier rebates and income from the provision of serviced offices and facilities. Receivables and payables with related parties comprise primarily of unpaid management fees, advisory and administrative services. ii. As of September 4, 2015, pursuant to the acquisition of the remaining 40% interest, we held a 100% ownership interest in Golar Wilhelmsen, thus making it a controlled and fully consolidated subsidiary from that date. Previous to that we held a 60% ownership interest in Golar Wilhelmsen, which we accounted for using the equity method (see note 13). Golar Wilhelmsen recharges management fees in relation to provision of technical and ship management services. Accordingly, from September 4, 2015, these management fees are eliminated on consolidation. iii. In April 2011, we entered into a revolving credit facility with a company related to our former major shareholder, World Shipholding. In December 31, 2013, the revolving credit facility was amended to $50 million . We repaid the $50 million borrowed under the facility in April 2014. This facility was subsequently terminated in August 2014. |
CAPITAL COMMITMENTS
CAPITAL COMMITMENTS | 12 Months Ended |
Dec. 31, 2015 | |
CAPITAL COMMITMENTS [Abstract] | |
CAPITAL COMMITMENTS | 32. CAPITAL COMMITMENTS FLNG conversions We entered into agreements for the conversion of the Hilli, the Gimi and the Gandria to FLNGs in May 2014, December 2014, and July 2015, respectively, with Keppel and B&V. As at December 31, 2015, the estimated timing of the outstanding payments in connection with the Hilli conversion are as follows: (in thousands of $) Payable within 12 months to December 31, 2016 306,082 Payable within 12 months to December 31, 2017 374,376 680,458 As we have not lodged our final notice to proceed on the Gimi and the Gandria conversion contracts, we have excluded the Gimi and the Gandria capital commitments in the above table. If we decide to lodge our final notice to proceed, we will have further contractual obligations of approximately $700.0 million and $1.0 billion for the Gimi and the Gandria , respectively. If we do not issue our final notice to proceed for the Gimi conversion, we would have to pay a maximum of $7.0 million in termination fees. Newbuilding contracts During the year, we entered into a newbuilding contract for the construction of a FSRU for a cost of approximately $247.5 million . As of December 31, 2015, $235.1 million remains to be paid in respect of this vessel. As at December 31, 2015 , the estimated timing of the installment payments for the newbuilding is due to be paid as follows: (in thousands of $) Payable within 12 months to December 31, 2016 49,500 Payable within 12 months to December 31, 2017 185,625 235,125 |
OTHER COMMITMENTS AND CONTINGEN
OTHER COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
OTHER COMMITMENTS AND CONTINGENCIES | 33. OTHER COMMITMENTS AND CONTINGENCIES Assets Pledged (in thousands of $) December 31, 2015 December 31, 2014 Book value of vessels secured against long-term loans* 2,543,012 1,997,657 * This includes the Golar Tundra which was classified as "held-for-sale" as at December 31, 2015 (see note 19). We have secured 13.0 million of our holdings in the subordinated units of Golar Partners against our convertible bonds which are due to mature in March 2017. See note 25 for further detail. In addition, please refer to note 20 for details of our restricted cash balances. Other Contractual Commitments and contingencies Insurance We insure the legal liability risks for our shipping activities with Gard and Skuld. Both are mutual protection and indemnity associations. As a member of a mutual association, we are subject to calls payable to the associations based on our claims record in addition to the claims records of all other members of the association. A contingent liability exists to the extent that the claims records of the members of the association in the aggregate show significant deterioration, which results in additional calls on the members. UK tax lease benefits During 2003 we entered into six UK tax leases. Under the terms of the leasing arrangements, the benefits are derived primarily from the tax depreciation assumed to be available to the lessors as a result of their investment in the vessels. As is typical in these leasing arrangements, as the lessee we are obligated to maintain the lessor’s after-tax margin. Accordingly, in the event of any adverse tax changes or a successful challenge by the UK Tax Authorities (''HMRC'') with regard to the initial tax basis of the transactions, or in relation to the 2010 lease restructurings, or in the event of an early termination of the Methane Princess lease, we may be required to make additional payments principally to the UK vessel lessor, which could adversely affect our earnings or financial position. We would be required to return all, or a portion of, or in certain circumstances significantly more than, the upfront cash benefits that we received in respect of our lease financing transactions, including the 2010 restructurings and subsequent termination transactions. The gross cash benefit we received upfront on these leases amounted to approximately £41 million British Pounds (before deduction of fees). Of these six leases we have since terminated five , with one lease remaining, being that of the Methane Princess lease. Pursuant to the deconsolidation of Golar Partners in 2012, Golar Partners is no longer considered a controlled entity but an affiliate and therefore as at December 31, 2015, the capital lease obligation relating to this remaining UK tax lease is not included on our consolidated balance sheet. However, under the indemnity provisions of the Omnibus Agreement or the respective share purchase agreements, we have agreed to indemnify Golar Partners in the event of any tax liabilities in excess of scheduled or final scheduled amounts arising from the Methane Princess leasing arrangements and termination thereof. HMRC has been challenging the use of similar lease structures and has been engaged in litigation of a test case for some years. In August 2015, following an appeal to the Court of Appeal by the HMRC which set aside previous judgments in favor of the tax payer, the First Tier Tribunal (UK court) ruled in favor of HMRC. The tax payer in this particular ruling has the election to appeal the courts’ decision, but no appeal has been filed.The judgments of the First Tier Tribunal do not create binding precedent for other UK court decisions and therefore the ruling in favor of HMRC is not binding in the context of our structures. Further, we consider there are differences in the fact pattern and structure between this case and our 2003 leasing arrangements and therefore is not necessarily indicative of any outcome should HMRC challenge us and we remain confident that our fact pattern is sufficiently different to succeed if we are challenged by HMRC. HMRC have written to our lessor to indicate that they believe our lease maybe similar to the case noted above. We have reviewed the details of the case and the basis of the judgment with our legal and tax advisers to ascertain what impact, if any, the judgment may have on us and the possible range of exposure has been estimated at approximately £ nil to £100 million British Pounds. Legal proceedings and claims We may, from time to time, be involved in legal proceedings and claims that arise in the ordinary course of business. A provision will be recognized in the financial statements only where we believe that a liability will be probable and for which the amounts are reasonably estimable, based upon the facts known prior to the issuance of the financial statements. Other In December 2005, we signed a shareholders' agreement in connection with the setting up of a jointly owned company to be named Egyptian Company for Gas Services S.A.E ("ECGS"), which was to be established to develop hydrocarbon business and in particular LNG related business in Egypt. As at December 31, 2015 , we had a commitment to pay $1.0 million to a third party, contingent upon the conclusion of a material commercial business transaction by ECGS as consideration for work performed in connection with the setting up and incorporation of ECGS. In July 2015, Golar, through a newly formed subsidiary, LNG Power, and Genpower Particapações SA (“Genpower”) entered into a strategic investment agreement which provided the framework for co-operation between Genpower and Golar to develop LNG power projects in Brazil through the formation of a joint venture commencing with the TPP Porto de Sergipe I Project (“Sergipe I”). The execution of the project has already been awarded by the Brazilian authorities to Genpower. In connection to the Sergipe I project, Genpower entered into an insurance agreement policy to cover the execution of the works for the implementation of the project for an amount of R$164.7 million , whilst a counter-guarantee agreement was concluded wherein we have agreed to act as a guarantor for 49% of the maximum liability. The present value of the guarantee of $1.2 million has been recognized as at December 31, 2015 . |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 34. SUBSEQUENT EVENTS On January 5, 2016, we repurchased 0.2 million of our own shares for a consideration of $8.2 million , reducing our exposure to the Total Return Swap (or TRS) Agreement to 3.0 million shares. On January 22, 2016 we signed a Memorandum of Understanding (''Memorandum'') with Schlumberger to co-operate on the global development of greenfield, brownfield and stranded gas reserves. Under the Memorandum, Golar and Schlumberger have agreed to jointly market gas monetization solutions to owners, investors and governments. We will contribute the Floating LNG assets and technology while Schlumberger, via its special project management division, will provide upstream development knowledge, resources and capital. On February 10, 2016, we entered into a purchase agreement to sell our equity interests in the disponent owner and operator of the Golar Tundra to Golar Partners for the price of $330.0 million , less the net lease obligations. In connection with the closing, the Partnership will receive a daily fee plus operating expenses, aggregating to approximately $2.6 million per month, for Golar's right to use the FSRU from the date of the closing until the date that the Golar Tundra commences operations under its time charter with West Africa Gas Limited ("WAGL"). In return, the Partnership will remit to Golar any hire income received with respect to the Golar Tundra during this period. The sale is expected to close in May 2016. However, once completed, by virtue of the put option in the agreements, we anticipate for accounting purposes that we will continue to consolidate the vessel until the charter with WAGL commences, which is expected in the second quarter of 2016. On February 29, 2016, we declared a dividend of $0.05 per share in respect of the quarter ended December 31, 2015 and paid this in March 2016. In addition, Golar Partners made a final cash distribution of $0.58 per unit in February 2016 in respect of the quarter ended December 31, 2015, of which we received $13.2 million of dividend income in relation to our common, subordinated and general partner units and IDRs held at the record date. On March 4, 2016, Golar GenPower Brasil Participações S.A., or Golar GenPower, a joint venture between LNG Power Limited (UK), a standalone non-recourse subsidiary of Golar LNG Limited and GenPower Participações S.A., signed a framework agreement for the supply of LNG to the natural gas fired power generation project it is developing in the Brazilian state of Sergipe. Golar GenPower and ExxonMobil Titan LNG Limited, or ExxonMobil, have agreed heads of terms covering the supply of LNG to the approximately 1,500MW Porto de Sergipe project. The agreement also establishes a framework for LNG to be supplied exclusively from ExxonMobil for expansion phases and other projects that Golar GenPower is pursuing in Brazil. The LNG supply is conditional on execution of a fully termed LNG Sale and Purchase Agreement. On March 17, 2016, we completed the refinancing of the Golar Seal. The financing structure funded 85% of the market value of the Golar Seal . At funding, the vessel was simultaneously bareboat chartered by the Company at a fixed rate for a firm period of 10 years. |
RESTATEMENT OF PREVIOUSLY ISSUE
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | 35. RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS 1. Investment in Affiliates - Golar LNG Partners L.P. We recently completed a review of our accounting for our investment in our affiliate Golar LNG Partners in light of recent clarifications contained in published comment letters from the Staff of the Securities and Exchange Commission (“SEC”). In our original evaluation, in considering the attributes of Golar Partners we determined that the substance of the Partnership’s ownership and governance structure was more similar to that of a corporation than it was to its legal form as a partnership. Therefore we historically applied the guidance contained in ASC 323-30-35-3 ("Investments — Equity Method and Joint Ventures") addressing limited liability companies that have characteristics of both corporations and partnerships in evaluating each interest in Golar Partners. Accordingly, since the deconsolidation date of the Partnership on December 13, 2012, we have accounted for our various unit interest holdings in Golar Partners according to their individual attributes as follows: • Common Units - accounted for as available-for-sale securities • Subordinated Units - accounted for under the equity method as investments in affiliates • General Partner Units and Incentive Distribution Rights - accounted for under the cost method Investment in available-for-sale securities - Common Units These securities have been carried at fair value, with unrealized gains and losses excluded from earnings and reported directly in stockholders' equity as a component of other comprehensive income (loss). Dividends received from our Common Units have been recorded in the consolidated statement of operations in the line item "Dividend income". Investments in affiliates - Subordinated Units These securities have been accounted for under the equity method of accounting. We recorded these investments initially at their fair value (as of the deconsolidation date), and subsequently adjusted the carrying amount for our share of Golar Partners earnings attributable to the subordinated units and other comprehensive income (loss) and reported the recognized earnings in income or in other comprehensive income, respectively. Dividends received reduced the carrying amount of the investment. Our investments in the subordinated units of Golar Partners include our share of the basis difference as calculated at the deconsolidation date; which represents the excess of the fair value over the underlying book value of Golar Partners net assets. The basis difference, relating to the Subordinated Units, has been amortized through the statement of operations as part of the equity method of accounting. Cost-method investments - General Partner Units and Incentive Distribution Rights We recorded these securities at cost. Dividends received have been recorded in the consolidated statement of operations in the line item "Dividend income". Whilst we believed that our historical accounting policies for our investments in our affiliate Golar Partners was appropriate, following our review we have concluded that our policies were not in accordance with ASC 323, in particular ASC 323-30-25-1 and ASC 323-30-S99-1 which requires us to account for all our interests in Golar Partners under the equity method of accounting. We have therefore restated our financial statements and have accounted for our Common Units, General Partner Units and Incentive Distribution rights in the same way we have accounted for our Subordinated Units as noted above, under the equity method of accounting. The change in accounting for our investment in Golar Partners does not affect the market value of our investment, our cash flows, our covenant compliance or our liquidity. 2. Indirect adjustments related to Golar LNG Partners L.P. Gain on disposal of the Golar Maria In conjunction with our review of our accounting for our investment in affiliates we have also revisited a related matter, being our accounting of the sale of the LNG carrier Golar Maria to Golar Partners in January 2013. We previously accounted the sale as an asset disposition and deferred a portion of the gain related to a indirectly retained interest in the Golar Maria through our equity interest in Golar Partners. Upon further review, we have concluded that the disposition should have been accounted for as the sale of a business whereby the element of the gain on disposal of the Golar Maria to Golar Partners that was deferred and amortized should have been recognized in full at the time of the disposal. This adjustment to our accounting for our disposal of the Golar Maria to Golar Partners does not affect our cash flows, our bank covenants compliance or our liquidity. As a result of the conclusions described above under 1 and 2, we are restating in this Form 20-F/A our historical consolidated financial statements as of, and for the three years ended December 31, 2015, and our selected financial data. The items had no material effect on our cash flows, our covenant compliance or our liquidity as a result of these adjustments for any of the years presented. Adoption of ASU 2015-03 "Interest- Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs" In addition, we historically presented deferred debt issuance costs or fees related to directly issuing debt, as long-term assets on the consolidated balance sheets. We adopted guidance codified in ASU 2015-03 . The guidance simplifies the presentation of debt issuance costs to be presented as a deduction from the corresponding liability consistent with debt discounts. The recognition and measurement guidance for debt issuance costs is not affected. Pursuant to SEC Financial Reporting Manual Topic 13, "Effects of Subsequent Events on Financial Statements Required in Filings" changes in accounting principles which require retrospective application require the reissuance of previously filed financial statements ("pre-event financial statements"). The reclassification does not impact net income as previously reported or any prior amounts reported in the Statements of Operations or the Consolidation Statements of Cash Flows. The effect of the retrospective application of this change in accounting principle on our Consolidated Balance Sheets as of December 31, 2015 and 2014 resulted in a reduction of "Total assets" in the amount of $42.2 million and $26.8 million , respectively, with a corresponding decrease in "Current portion of long-term debt and short-term debt" and "Long-term debt". The following table presents the effect of the restatement on our previously reported net income (loss), comprehensive income and total equity as of the date and for the periods shown (in thousands of US dollars): Golar LNG Limited Consolidated Statements of Operations for the years ended December 31, 2015 , 2014 , and 2013 (in thousands of $) 2015 2014 2013 As previously Adjustment As previously Adjustment As previously Adjustment Reported Restated Reported Restated Reported Restated Operating revenues Time and voyage charter revenues 90,127 — 90,127 95,399 — 95,399 90,558 — 90,558 Vessel and other management fees 12,547 — 12,547 10,756 — 10,756 9,270 — 9,270 Total operating revenues 102,674 — 102,674 106,155 — 106,155 99,828 — 99,828 Operating expenses Vessel operating expenses 56,347 — 56,347 49,570 — 49,570 43,750 — 43,750 Voyage, charter-hire and commission expenses 69,042 — 69,042 27,340 — 27,340 14,259 — 14,259 Administrative expenses 33,526 — 33,526 19,267 — 19,267 22,952 — 22,952 Depreciation and amortization 73,732 — 73,732 49,811 — 49,811 36,871 — 36,871 Impairment of long-term assets 1,957 — 1,957 500 — 500 500 — 500 Total operating expenses 234,604 — 234,604 146,488 — 146,488 118,332 — 118,332 Gain on disposals to Golar Partners (1) 102,884 (478 ) 102,406 43,783 (496 ) 43,287 65,619 16,651 82,270 Other operating loss — — — (6,387 ) — (6,387 ) — — — Impairment of vessel held-for-sale (1,032 ) — (1,032 ) — — — — — — Other operating gains - LNG trade — — — 1,317 — 1,317 — — — Loss on disposal of vessel held-for-sale (5,824 ) — (5,824 ) — — — — — — Operating (loss) income (35,902 ) (478 ) (36,380 ) (1,620 ) (496 ) (2,116 ) 47,115 16,651 63,766 Other non-operating income Dividend income (2) 15,524 (15,524 ) — 27,203 (27,203 ) — 30,960 (30,951 ) 9 Gain on sale of available-for-sale securities (2) (3,011 ) 3,011 — — — — (754 ) 854 100 Other non-operating income (expense) (1) — (27 ) (27 ) 281 (9 ) 272 (2,601 ) 10 (2,591 ) Total other non-operating income 12,513 (12,540 ) (27 ) 27,484 (27,212 ) 272 27,605 (30,087 ) (2,482 ) Financial income (expense) Interest income 6,896 — 6,896 716 — 716 3,549 — 3,549 Interest expense (62,911 ) — (62,911 ) (14,474 ) — (14,474 ) — — — Other financial items, net (118,604 ) — (118,604 ) (74,094 ) — (74,094 ) 38,219 — 38,219 Net financial (expense) income (174,619 ) — (174,619 ) (87,852 ) — (87,852 ) 41,768 — 41,768 (Loss) income before equity in net earnings of affiliates, income taxes and non-controlling interests (198,008 ) (13,018 ) (211,026 ) (61,988 ) (27,708 ) (89,696 ) 116,488 (13,436 ) 103,052 Income taxes 3,053 3,053 1,114 1,114 3,404 3,404 Equity in net earnings of affiliates (2) 16,454 39,531 55,985 19,408 22,812 42,220 15,821 (12,722 ) 3,099 Net (loss) income (178,501 ) 26,513 (151,988 ) (41,466 ) (4,896 ) (46,362 ) 135,713 (26,158 ) 109,555 Net income attributable to non-controlling interests (19,158 ) — (19,158 ) (1,655 ) — (1,655 ) — — — Net (loss) income attributable to Golar LNG Ltd (197,659 ) 26,513 (171,146 ) (43,121 ) (4,896 ) (48,017 ) 135,713 (26,158 ) 109,555 (Loss) earnings per share attributable to Golar LNG Ltd stockholders Per common share amounts: (Loss) earnings – Basic $ (2.12 ) $ 0.29 $ (1.83 ) $ (0.50 ) $ (0.05 ) $ (0.55 ) $ 1.69 $ (0.33 ) $ 1.36 (Loss) earnings – Diluted $ (2.12 ) $ 0.29 $ (1.83 ) $ (0.50 ) $ (0.05 ) $ (0.55 ) $ 1.59 $ (0.31 ) $ 1.28 Cash dividends declared and paid $ 1.35 $ — $ 1.35 $ 1.80 $ — $ 1.80 $ 1.35 $ — $ 1.35 (1) The adjustment pertains to an element of the gain on disposal of the Golar Maria to Golar Partners that was deferred and amortized however should have been recognized in full at the time of the disposal. See item 2 above (2) The adjustment is to account for the equity pick up relating to the various investments in Golar Partners being accounted for under the equity accounting method. See item 1 above Golar LNG Limited Consolidated Statements of Comprehensive Income for the years ended December 31, 2015 , 2014 and 2013 (in thousands of $) 2015 2014 2013 As previously Adjustment As previously Adjustment As previously Adjustment Reported Restated Reported Restated Reported Restated COMPREHENSIVE INCOME Net (loss) income (178,501 ) 26,513 (151,988 ) (41,466 ) (4,896 ) (46,362 ) 135,713 (26,158 ) 109,555 Other comprehensive income: Gain (loss) associated with pensions, net of tax 2,851 — 2,851 (2,520 ) — (2,520 ) 5,078 — 5,078 Net (loss) gain on qualifying cash flow hedging instruments (1) (493 ) (3,947 ) (4,440 ) 6,493 176 6,669 5,010 4,005 9,015 Net (loss) gain on investments in available-for-sale securities (1) (44,359 ) 44,359 — 7,955 (7,955 ) — 1,885 (1,885 ) — Other comprehensive (loss) income (42,001 ) 40,412 (1,589 ) 11,928 (7,779 ) 4,149 11,973 2,120 14,093 Comprehensive (loss) income (220,502 ) 66,925 (153,577 ) (29,538 ) (12,675 ) (42,213 ) 147,686 (24,038 ) 123,648 Comprehensive (loss) income attributable to: Stockholders of Golar LNG Limited (239,660 ) 66,925 (172,735 ) (31,193 ) (12,675 ) (43,868 ) 147,686 (24,038 ) 123,648 Non-controlling interests 19,158 — 19,158 1,655 — 1,655 — — — Comprehensive (loss) income (220,502 ) 66,925 (153,577 ) (29,538 ) (12,675 ) (42,213 ) 147,686 (24,038 ) 123,648 (1) The adjustment is to account for various investments in Golar Partners being accounted for under the equity accounting method. See item 1 above. Golar LNG Limited Consolidated Balance Sheets as of December 31, 2015 and 2014 (in thousands of $) 2015 2014 As previously Adjustment As previously Adjustment Reported Restated Reported Restated ASSETS Current Assets Cash and cash equivalents 105,235 — 105,235 191,410 — 191,410 Restricted cash and short-term receivables 228,202 — 228,202 74,162 — 74,162 Trade accounts receivable 4,474 — 4,474 4,419 — 4,419 Other receivables, prepaid expenses and accrued income 24,753 — 24,753 17,498 — 17,498 Amounts due from related parties — — — 9,967 — 9,967 Short-term debt due from related party — — — 20,000 — 20,000 Inventories 8,650 — 8,650 8,317 — 8,317 Vessel held-for-sale — — — 132,110 — 132,110 Assets held-for-sale (1) 269,459 (2,425 ) 267,034 284,955 (4,209 ) 280,746 Total current assets 640,773 (2,425 ) 638,348 742,838 (4,209 ) 738,629 Long-term assets Restricted cash 180,361 — 180,361 425 — 425 Investment in available-for-sale securities (2) 25,530 (25,530 ) — 275,307 (275,307 ) — Investments in affiliates (2) 313,021 228,544 541,565 335,372 410,891 746,263 Cost method investments (2) 204,172 (196,825 ) 7,347 204,172 (196,825 ) 7,347 Newbuildings 13,561 — 13,561 344,543 — 344,543 Asset under development 501,022 — 501,022 345,205 — 345,205 Vessels and equipment, net 2,336,144 — 2,336,144 1,648,888 — 1,648,888 Deferred charges (1) 42,154 (42,154 ) — 26,801 (26,801 ) — Other non-current assets 50,850 — 50,850 68,442 — 68,442 Total assets 4,307,588 (38,390 ) 4,269,198 3,991,993 (92,251 ) 3,899,742 LIABILITIES AND EQUITY Current liabilities Current portion of long-term debt and short-term debt, net of deferred finance charges (1) 501,618 (10,220 ) 491,398 116,431 (3,578 ) 112,853 Trade accounts payable 53,281 — 53,281 10,811 — 10,811 Accrued expenses 53,333 — 53,333 31,124 — 31,124 Amounts due to related parties 7,128 — 7,128 — — — Other current liabilities (3) 148,583 (506 ) 148,077 46,923 (506 ) 46,417 Liabilities held-for-sale (1) 203,638 (2,425 ) 201,213 164,401 (4,209 ) 160,192 Total current liabilities 967,581 (13,151 ) 954,430 369,690 (8,293 ) 361,397 Long-term liabilities Long-term debt, net of deferred finance charges (1) 1,376,443 (31,934 ) 1,344,509 1,264,356 (23,223 ) 1,241,133 Long-term debt due to related parties — — — — — — Other long-term liabilities (3) 69,225 (15,145 ) 54,080 75,440 (15,650 ) 59,790 Total liabilities 2,413,249 (60,230 ) 2,353,019 1,709,486 (47,166 ) 1,662,320 EQUITY Share capital 93,546,663 common shares 93,547 — 93,547 93,415 — 93,415 Treasury shares (12,269 ) — (12,269 ) — — — Additional paid-in capital 1,317,806 — 1,317,806 1,307,087 — 1,307,087 Contributed surplus 200,000 — 200,000 200,000 — 200,000 Accumulated other comprehensive (loss) gain (2) (41,254 ) 28,662 (12,592 ) 5,171 (11,750 ) (6,579 ) Retained earnings (2)(3) 315,696 (6,822 ) 308,874 675,179 (33,335 ) 641,844 Total stockholders' equity 1,873,526 21,840 1,895,366 2,280,852 (45,085 ) 2,235,767 Non-controlling interests 20,813 — 20,813 1,655 — 1,655 Total equity 1,894,339 21,840 1,916,179 2,282,507 (45,085 ) 2,237,422 Total liabilities and equity 4,307,588 (38,390 ) 4,269,198 3,991,993 (92,251 ) 3,899,742 (1) The adjustment is to account for the deferred finance charges in accordance with ASU 2015-3. See item 2 above. (2) The adjustment is to account for various investments in Golar Partners being accounted for under the equity accounting method. See item 1 above. (3) The adjustment pertains to an element of the gain on disposal of the Golar Maria to Golar Partners that was deferred and amortized however should have been recognized in full at the time of the disposal. See item 2 above. Golar LNG Limited Consolidated Statements of Cash Flows for the years ended December 31, 2015 , 2014 , and 2013 (in thousands of $) 2015 2014 2013 As previously Adjustment As previously Adjustment As previously Adjustment Reported Restated Reported Restated Reported Restated Operating activities Net (loss) income (178,501 ) 26,513 (151,988 ) (41,466 ) (4,896 ) (46,362 ) 135,713 (26,158 ) 109,555 Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: Depreciation and amortization 73,732 — 73,732 49,811 — 49,811 36,871 — 36,871 Amortization of deferred charges and debt guarantee (2,073 ) — (2,073 ) 2,459 — 2,459 1,120 — 1,120 Equity in net earnings of affiliates (1) (16,454 ) (39,531 ) (55,985 ) (19,408 ) (22,812 ) (42,220 ) (15,821 ) 12,722 (3,099 ) Gain on disposals to Golar Partners (2) (102,884 ) 478 (102,406 ) (43,783 ) 496 (43,287 ) (65,619 ) (16,651 ) (82,270 ) Loss on sale of vessel 5,824 — 5,824 — — — — — — Impairment of vessel held-for-sale 1,032 — 1,032 — — — — — — Dividend income from available-for-sale and cost investments recognized in operating income (1) (15,524 ) 15,524 — (27,203 ) 27,203 — (30,960 ) 30,951 (9 ) Dividends received 52,800 — 52,800 61,967 — 61,967 64,198 — 64,198 Loss on disposal of available-for-sale securities (1) 3,011 (3,011 ) — — — — 754 (854 ) (100 ) Gain on disposal of high yield bond in Golar Partners — — — — — — (841 ) — (841 ) Compensation cost related to stock options 4,125 — 4,125 1,619 — 1,619 500 — 500 Net foreign exchange losses (gain) 2,404 — 2,404 1,314 — 1,314 (277 ) — (277 ) Amortization of deferred tax benefits on intra-group transfers (3,488 ) — (3,488 ) (3,488 ) — (3,488 ) (3,487 ) — (3,487 ) Impairment of long-term assets 1,957 — 1,957 500 — 500 500 — 500 Impairment of loan receivable 15,010 — 15,010 — — — — — — Drydocking expenditure (10,405 ) — (10,405 ) (8,947 ) — (8,947 ) (4,248 ) — (4,248 ) Change in assets and liabilities, net of effects from the sale of Golar Eskimo , Golar Igloo and Golar Maria : Restricted cash (280,000 ) — (280,000 ) — — — — — — Trade accounts receivable 911 — 911 (10,533 ) — (10,533 ) 304 — 304 Inventories (2,252 ) — (2,252 ) (809 ) — (809 ) (10,137 ) — (10,137 ) Prepaid expenses, accrued income and other assets (6,361 ) — (6,361 ) 27,612 — 27,612 (50,877 ) — (50,877 ) Amounts due from/to related companies 15,259 — 15,259 (6,003 ) — (6,003 ) 3,497 — 3,497 Trade accounts payable 8,944 — 8,944 (1,746 ) — (1,746 ) 2,525 — 2,525 Accrued expenses 21,479 — 21,479 13,802 — 13,802 3,349 — 3,349 Other current liabilities (2) 66,805 27 66,832 29,175 9 29,184 658 (10 ) 648 Net cash (used in) provided by operating activities (344,649 ) — (344,649 ) 24,873 — 24,873 67,722 — 67,722 Investing activities Additions to vessels and equipment (26,110 ) — (26,110 ) (2,359 ) — (2,359 ) (802 ) — (802 ) Additions to newbuildings (559,667 ) — (559,667 ) (1,150,669 ) — (1,150,669 ) (733,353 ) — (733,353 ) Investing activities (continued) Additions to asset under development (111,572 ) — (111,572 ) (313,645 ) — (313,645 ) — — — Investment in subsidiary, net of cash acquired (16 ) — (16 ) — — — — — — Proceeds from disposal of investments in affiliates 207,428 — 207,428 — — — 99,210 — 99,210 Additions to investment in affiliates (5,023 ) — (5,023 ) — — — (12,400 ) — (12,400 ) Additions to investments — — — — — — (5,649 ) — (5,649 ) Short-term loan granted to third party (2,000 ) — (2,000 ) — — — (11,960 ) — (11,960 ) Repayment of short-term loan granted to third party 400 — 400 — — — 2,469 — 2,469 Proceeds from disposals to Golar Partners, net of cash disposed 226,872 — 226,872 155,319 — 155,319 119,927 — 119,927 Proceeds from disposal of high yield bond in Golar Partners — — — — — — 34,483 — 34,483 Short-term loan granted to Golar Partners — — — (20,000 ) — (20,000 ) (20,000 ) — (20,000 ) Additions to other long-term assets — — — (49,873 ) — (49,873 ) — — — Repayment of short-term loan granted to Golar Partners 20,000 — 20,000 — — — 20,000 — 20,000 Proceeds from disposal of fixed assets 18,987 — 18,987 — — — — — — Restricted cash and short-term receivables (25,255 ) — (25,255 ) (48,043 ) — (48,043 ) (24,992 ) — (24,992 ) Net cash used in investing activities (255,956 ) — (255,956 ) (1,429,270 ) — (1,429,270 ) (533,067 ) — (533,067 ) Financing activities Proceeds from short-term and long-term debt (including related parties) 918,801 — 918,801 1,222,746 — 1,222,746 306,358 — 306,358 Repayments of short-term and long-term debt (including related parties) (215,363 ) — (215,363 ) (239,903 ) — (239,903 ) (9,400 ) — (9,400 ) Financing costs paid (23,266 ) — (23,266 ) (18,672 ) — (18,672 ) (22,612 ) — (22,612 ) Cash dividends paid (121,358 ) — (121,358 ) (155,996 ) — (155,996 ) (108,976 ) — (108,976 ) Proceeds from exercise of share options 225 — 225 1,338 — 1,338 608 — 608 Purchase of treasury shares (12,269 ) — (12,269 ) — — — — — — Proceeds from issuance of equity — — — 660,947 — 660,947 — — — Restricted cash and short-term receivables (32,340 ) — (32,340 ) — — — — — — Net cash provided by financing activities 514,430 — 514,430 1,470,460 — 1,470,460 165,978 — 165,978 Net (decrease) increase in cash and cash equivalents (86,175 ) — (86,175 ) 66,063 — 66,063 (299,367 ) — (299,367 ) Cash and cash equivalents at beginning of period 191,410 — 191,410 125,347 — 125,347 424,714 — 424,714 Cash and cash equivalents at end of period 105,235 — 105,235 191,410 — 191,410 125,347 — 125,347 Supplemental disclosure of cash flow information: Cash paid during the year for: Interest paid, net of capitalized interest 37,964 — 37,964 11,372 — 11,372 — — — Income taxes paid 1,278 — 1,278 1,372 — 1,372 1,322 — 1,322 (1) The adjustment is to account for various investments in Golar Partners being accounted for under the equity accounting method. See item 1 above (2) The adjustment pertains to an element of the gain on disposal of the Golar Maria to Golar Partners that was deferred and amortized however should have been recognized in full at the time of the disposal. See item 2 above Golar LNG Limited Consolidated Statements of Changes in Equity for the years ended December 31, 2015 , 2014 and 2013 (in thousands of $) Share Capital Treasury Shares Additional Paid-in Capital Contributed Surplus Accumulated Other Comprehensive Loss (Restated) Accumulated Earnings (Restated) Non-controlling Interest Total Equity (Restated) Reported Adjustment Restated Reported Adjustment Restated Restated Balance at December 31, 2012 80,504 — 654,042 200,000 (18,730 ) (6,091 ) (24,821 ) 848,503 (2,281 ) 846,222 — 1,755,947 Net income (2)(3) — — — — — — 135,713 (26,158 ) 109,555 — 109,555 Dividends — — — — — — (108,976 ) (108,976 ) — (108,976 ) Exercise of share options 76 — 1,476 — — — (944 ) (944 ) — 608 Grant of share options — — 500 — — — — — — 500 Other comprehensive income (2) — — — — 11,973 2,120 14,093 — — — 14,093 Balance at December 31, 2013 80,580 — 656,018 200,000 (6,757 ) (3,971 ) (10,728 ) 874,296 (28,439 ) 845,857 — 1,771,727 Net (loss) income (2)(3) — — — — — — (43,121 ) (4,896 ) (48,017 ) 1,655 (46,362 ) Dividends — — — — — — (155,996 ) (155,996 ) — (155,996 ) Exercise of share options 185 — 1,153 — — — — — — 1,338 Grant of share options — — 1,619 — — — — — — 1,619 Net proceeds from issuance of shares 12,650 — 648,297 — — — — — — 660,947 Other comprehensive income (2) — — — — 11,928 (7,779 ) 4,149 — — — 4,149 Balance at December 31, 2014 93,415 — 1,307,087 200,000 5,171 (11,750 ) (6,579 ) 675,179 (33,334 ) 641,844 1,655 2,237,422 Net loss (2)(3) — — — — — — (197,659 ) 26,513 (171,146 ) 19,158 (151,988 ) Dividends — — — — — — (161,824 ) (161,824 ) — (161,824 ) Exercise of share options 132 — 93 — — — — — — 225 Grant of share options — — 6,358 — — — — — — 6,358 Forfeiture of share options — — (2,521 ) — — — — — — (2,521 ) Cancellation of share options — — 786 — — — — — — 786 Transfer of additional paid-in capital — — 6,003 — (4,424 ) (4,424 ) — — — 1,579 Other comprehensive loss (2) — — — — (42,001 ) 40,412 (1,589 ) — — — (1,589 ) Treasury shares — (12,269 ) — — — — — — — (12,269 ) Balance at December 31, 2015 93,547 (12,269 ) 1,317,806 200,000 (41,254 ) 28,662 (12,592 ) 315,696 (6,822 ) 308,874 20,813 1,916,179 (1) The adjustment is to account for the deferred finance charges in accordance with ASU 2015-3. See item 2 above (2) The adjustment is to account for various investments in Golar Partners being accounted for under the equity accounting method. See item 1 above (3) The adjustment pertains to an element of the gain on disposal of the Golar Maria to Golar Partners that was deferred and amortized however should have been recognized in full at the time of the disposal. See item 2 above |
ACCOUNTING POLICIES (Restated)
ACCOUNTING POLICIES (Restated) (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of accounting and presentation | Basis of accounting and presentation The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. The accompanying consolidated financial statements present our financial position, our consolidated subsidiaries and our interest in associated entities. The year ended December 31, 2015 includes an out of period correction of $1.6 million additional expense captured in other financial items in the income statement, a decrease to accumulated other comprehensive income of $4.4 million , and an increase to additional paid in capital of $6 million . Management believes this out of period correction is not material to the annual consolidated financial statements for the year ended December 31, 2015, or any previously issued financial statements. The accounting policies set out below have been applied consistently to all periods in these consolidated financial statements, unless otherwise noted. |
Principles of consolidation | Principles of consolidation Investments in companies in which we directly or indirectly hold more than 50% of the voting control are consolidated in the financial statements, as well as certain variable interest entities in which the Company is deemed to be subject to a majority of the risk of loss from the variable interest entity's activities or entitled to receive a majority of the entity's residual returns, or both. All inter-company balances and transactions are eliminated. The non-controlling interests of subsidiaries were included in the Consolidated Balance Sheets and Statements of Operations as "Non-controlling interests". A variable interest entity ("VIE"), is defined by the accounting standard as a legal entity where either (a) equity interest holders as a group lack the characteristics of a controlling financial interest, including decision making ability and an interest in the entity's residual risks and rewards, or (b) the equity holders have not provided sufficient equity investment to permit the entity to finance its activities without additional subordinated financial support, or (c) the voting rights of some investors are not proportional to their obligations to absorb the expected losses of the entity, their rights to receive the expected residual returns of the entity, or both and substantially all of the entity's activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. A party that is a variable interest holder is required to consolidate a VIE if the holder has both (a) the power to direct the activities that most significantly impact the entity's economic performance and (b) the obligation to absorb losses that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. |
Business combinations | Business combinations Business combinations of subsidiaries are accounted for under the acquisition method. On acquisition, the identifiable assets, liabilities and contingent liabilities of a subsidiary are measured at their fair values at the date of acquisition. Any excess of the cost of acquisition over the fair values of the identifiable net assets acquired is recognized as goodwill. Any deficiency of the cost of acquisition below the fair values of the identifiable net assets acquired (i.e. bargain purchase) is credited to the statement of operations in the period of acquisition. The consideration transferred for an acquisition is measured at fair value of the consideration given. Acquisition related costs are expensed as incurred. Identifiable assets acquired and liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The results of subsidiary undertakings are included from the date of acquisition. |
Reporting currency | Reporting currency The consolidated financial statements are stated in U.S dollars. Our functional currency is the U.S. dollar as the majority of the revenues are received in U.S. dollars and a majority of our expenditures are made in U.S. dollars. Our reporting currency is U.S. dollars. Transactions in other currencies during the year are converted into U.S. dollars at the rates of exchange in effect at the date of the transaction. Non-monetary assets and liabilities are converted using historical rates of exchange. At the balance sheet date, monetary assets and liabilities that are denominated in currencies other than the U.S. dollar are translated to reflect the year-end exchange rates. Resulting gains or losses are reflected separately in the accompanying consolidated statements of operations. |
Use of estimates | Use of estimates The preparation of financial statements in accordance with United States Generally Accepted Accounting Principles ("US GAAP") requires that management make estimates and assumptions affecting the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. As of December 31, 2015, we leased five vessels under finance leases from wholly owned special purpose vehicles (“lessor SPVs”) of financial institutions in connection with our sale and leaseback transactions. While we do not hold any equity investments in these lessor SPVs, we have determined that we are the primary beneficiary of these entities and accordingly, we are required to consolidate these VIEs into our financial results. The key line items impacted by our consolidation of these VIEs are short-term and long-term debt, restricted cash and interest expense. In consolidating these lessor VIEs, on a quarterly basis, we must make assumptions regarding the debt amortization profile and the interest rate to be applied against the VIEs’ debt principal. Our estimates are therefore dependent upon the timeliness of receipt and accuracy of financial information provided by these lessor VIE entities. Upon receipt of the audited annual financial statements of the lessor VIEs, we will make a true-up adjustment for any material differences. |
Fair value measurements | Fair value measurements We account for fair value measurement in accordance with the accounting standards guidance using fair value to measure assets and liabilities. The guidance provides a single definition of fair value, together with a framework for measuring it, and requires additional disclosure about the use of fair value to measure assets and liabilities. |
Revenue and related expense recognition | Revenue and related expense recognition Revenues include minimum lease payments under time charters, fees for repositioning vessels and gross pool revenues. Revenues generated from time charters, which we classify as operating leases, are recorded over the term of the charter as service is provided. However, we do not recognize revenue if a charter has not been contractually committed to by a customer and ourselves, even if the vessel has discharged its cargo and is sailing to the anticipated load port on its next voyage. Repositioning fees (which are included in time charter revenue) received in respect of time charters are recognized at the end of the charter when the fee becomes fixed and determinable. However, where there is a fixed amount specified in the charter, which is not dependent upon redelivery location, the fee will be recognized evenly over the term of the charter. Where a vessel undertakes multiple single voyage time charters, revenue is recognized, including the repositioning fee if fixed and determinable, on a discharge-to-discharge basis. Under this basis, revenue is recognized evenly over the period from departure of the vessel from its last discharge port to departure from the next discharge port. For arrangements where operating costs are borne by the charterer on a pass through basis, the pass through of operating costs is reflected in revenue and expenses. Pool revenues are recognized on a gross basis representing time charter revenues earned by our vessels participating in the pool. Revenue is recognized on a monthly basis, when the vessel is made available and services are provided to the charterer during the period, the amount can be estimated reliably and collection of the related revenue is reasonably assured. Revenues generated from management fees are recorded rateably over the term of the contract as services are provided. Under time charters, voyage expenses are generally paid by our customers. Voyage related expenses, principally fuel, may also be incurred when positioning or repositioning the vessel before or after the period of time charter and during periods when the vessel is not under charter or is offhire, for example when the vessel is undergoing repairs. These expenses are recognized as incurred. Vessel operating expenses, which are recognized when incurred, include crewing, repairs and maintenance, insurance, stores, lube oils, communication expenses and third party management fees. Bunkers consumption represents mainly bunkers consumed during unemployment and off-hire. Furthermore in relation to the vessels participating in the pool, voyage expenses and commissions include a net allocation from the pool participants' vessels less the other participants' share of the net revenues earned by our vessels included in the pool. Each participants' share of the net pool revenues is based on the number of pool points attributable to its vessels and the number of days such vessels participated in the pool. |
Cash and cash equivalents | Cash and cash equivalents We consider all demand and time deposits and highly liquid investments with original maturities of three months or less to be equivalent to cash. |
Restricted cash and short-term receivables | Restricted cash and short-term receivables Restricted cash and short-term receivables consist of bank deposits which may only be used to settle certain pre-arranged loans, bid bonds in respect of tenders for projects we have entered into, cash collateral required for certain swaps and other claims which require us to restrict cash. |
Trade receivables | Trade receivables Trade receivables are presented net of allowances for doubtful balances. At each balance sheet date, all potentially uncollectible accounts are assessed individually for purposes of determining the appropriate provision for doubtful accounts. |
Inventories | Inventories Inventories, which are comprised principally of fuel, lubricating oils and ship spares, are stated at the lower of cost or market value. Cost is determined on a first-in, first-out basis. |
Investments in affiliates | Investments in affiliates Affiliates are entities over which we generally have between 20% and 50% of the voting rights, or over which we have significant influence, but over which we do not exercise control, or have the power to control the financial and operational policies. Investments in these entities are accounted for by the equity method of accounting. This also extends to entities in which we hold a majority ownership interest, but we do not control, due to the participating rights of non-controlling interests. Under this method, we record an investment in the common stock (or “in-substance common stock”) of an affiliate at cost (or fair value if a consequence of deconsolidation), and adjust the carrying amount for our share of the earnings or losses of the affiliate subsequent to the date of the investment and report the recognized earnings or losses in income. Dividends received from an affiliate in connection with their common stock interest reduce the carrying amount of the investment. The excess, if any, of the purchase price over book value of our investments in equity method affiliates, or basis difference, is included in the consolidated balance sheet as "Investment in affiliates". We allocate the basis difference across the assets and liabilities of the affiliate, with the residual assigned to goodwill. The basis difference will then be amortized through the statement of operations as part of the equity method of accounting. When our share of losses in an affiliate equals or exceeds its interest, we do not recognize further losses, unless the Company has incurred obligations or made payments on behalf of the affiliate. Investments in Golar Partners are accounted for under the equity accounted method in accordance with ASC 323-30-25-1 and ASC 323-30-S99-1. We recognize gains and losses in earnings for the issuance of shares by our affiliates, provided that the issuance of such shares qualifies as a sale of such shares. |
Cost-method investments | Cost-method investments Cost-method investments are initially recorded at cost and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Dividends received from cost method investments are recorded in the consolidated statement of operations in the line item "Dividend income". |
Newbuildings | Newbuildings Newbuilds are stated at cost. All pre-delivery costs incurred during the construction of newbuilds, including purchase installments, interest, supervision and technical costs, are capitalized. Capitalization ceases and depreciation commences when the vessel is available for its intended use |
Vessels and equipment | Vessels and equipment Vessels and equipment are stated at cost less accumulated depreciation. The cost of vessels and equipment less the estimated residual value is depreciated on a straight-line basis over the assets' remaining useful economic lives. Depreciation includes depreciation on all owned vessels and amortization of vessels accounted for as capital leases. Management estimates the residual values of our vessels based on a scrap value cost of steel and aluminium times the weight of the ship noted in lightweight ton. Residual values are periodically reviewed and revised to recognize changes in conditions, new regulations or other reasons. Refurbishment costs incurred during the period are capitalized as part of vessels and equipment and depreciated over the vessels' remaining useful economic lives. Refurbishment costs are costs that appreciably increase the capacity, or improve the efficiency or safety of vessels and equipment. Drydocking expenditures are capitalized when incurred and amortized over the period until the next anticipated drydocking, which is generally between two and five years. For vessels that are newly built or acquired, we have adopted the "built-in overhaul" method of accounting. The built-in overhaul method is based on the segregation of vessel costs into those that should be depreciated over the useful life of the vessel and those that require drydocking at periodic intervals to reflect the different useful lives of the components of the assets. The estimated cost of the drydocking component is amortized until the date of the first drydocking following acquisition, upon which the cost is capitalized and the process is repeated. When a vessel is disposed, any unamortized drydocking expenditure is charged against income in the period of disposal. Vessel reactivation costs incurred on vessels leaving lay-up include both costs of a capital and expense nature. The capital costs include the addition of new equipment or modifications to the vessel which enhance or increase the operational efficiency and functionality of the vessel. These expenditures are capitalized and depreciated over the remaining useful life of the vessel. Expenditures of a routine repairs and maintenance nature that do not improve the operating efficiency or extend the useful lives of the vessels are expensed as incurred as mobilization costs. |
Asset under development | Asset under development An asset is classified as asset under development when there is a firm commitment from us to proceed with the construction of the asset and the likelihood of conversion is virtually certain to occur. An asset under development is classified as non-current and is stated at cost. All costs incurred during the construction of the asset, including conversion installment payments, interest, supervision and technical costs are capitalized. Interest costs directly attributable to construction of the asset is added to the cost of the asset. Capitalization ceases and depreciation commences once the asset is completed and available for its intended use. |
Held-for-sale assets and disposal group | Held-for-sale assets and disposal group Individual assets or subsidiaries to be disposed of, by sale or otherwise in a single transaction, are classified as “held-for-sale” if the following criteria are met at the period end: • Management, having the authority to approve the action, commits to a plan to sell the vessel; • The non-current asset or subsidiaries are available for immediate sale in its present condition subject only to terms that are usual and customary for such sales; • An active program to locate a buyer and other actions required to complete the plan to sell have been initiated; • The sale is highly probable; and • The transfer is expected to qualify for recognition as a completed sale, within one year. The term probable refers to a future sale that is likely to occur, the asset or subsidiaries (disposal group) is being actively marketed for sale at a price that is reasonable in relation to its current fair value and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. A disposal group is classified as discontinued operations if the following criteria are met: (1) a component of an entity or group of components that has been disposed of by sale, disposed of other than by sale or is classified as held-for-sale that represents a strategic shift that has or will have a major effect on our financial results or (2) an acquired business or non-profit activity (the entity to be sold) that is classified as held-for-sale on the date of the acquisition. Assets or subsidiaries held for sale are carried at the lower of their carrying amount and fair value less costs to sell. Interest and other expenses attributable to the liabilities of a disposal group classified as held-for-sale shall continue to be accrued. On classification as held-for-sale, the assets are no longer depreciated. |
Impairment of long-term assets | Impairment of long-term assets We continually monitor events and changes in circumstances that could indicate carrying amounts of long-term assets may not be recoverable. When such events or changes in circumstances are present, we assess the recoverability of long-term assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, we recognize an impairment loss based on the excess of the carrying amount over the fair value of the assets. |
Other-than temporary impairment of investments | Other-than temporary impairment of investments Where there are indicators that fair value is below carrying value of our investments, we will evaluate these for other-than-temporary impairment. Consideration will be given to (1) the length of time and the extent to which fair value is below carrying value, (2) the financial condition and near-term prospects of the investee, and (3) our intent and ability to hold the investment until any anticipated recovery. Where determined other-than-temporary impairment, we will recognize an impairment loss in the period. |
Interest costs capitalized | Interest costs capitalized Interest costs are expensed as incurred except for interest costs that are capitalized. Interest is capitalized on all qualifying assets that require a period of time to get them ready for their intended use. Qualifying assets consist of vessels under construction, assets under development and vessels undergoing conversion into FSRUs for our own use. The interest capitalized is calculated using the rate of interest on the loan to fund the expenditure or our weighted average cost of borrowings where appropriate, from commencement of the newbuilding and conversion work until substantially all the activities necessary to prepare the assets for its intended use are complete. If our financing plans associate a specific borrowing with a qualifying asset, we use the rate on that borrowing as the capitali z ation rate to be applied to that portion of the average accumulated expenditures for the asset provided that does not exceed the amount of that borrowing. We do not capitali z e amounts beyond the actual interest expense incurred in the period. |
Deferred charges | Deferred charges Costs associated with long-term financing, including debt arrangement fees are deferred and amortized over the term of the relevant loan. These costs are presented as a deduction from the corresponding liability, consistent with debt discounts. |
Derivatives | Derivatives We use derivatives to reduce market risks associated with our operations. We use interest rate swaps for the management of interest rate risk exposure. The interest rate swaps effectively convert a portion of our debt from a floating to a fixed rate over the life of the transactions without an exchange of underlying principal. We seek to reduce our exposure to fluctuations in foreign exchange rates through the use of foreign currency forward contracts. From time to time, we enter into equity swaps. Under these facilities, we swap with our counterparty (usually a major bank) the risk of fluctuations in our share price and the benefit of any dividends, for a fixed payment of LIBOR plus margin. The counterparty may acquire shares in the Company to hedge its own position. All derivative instruments are initially recorded at cost as either assets or liabilities in the accompanying Consolidated Balance Sheet and subsequently remeasured to fair value, regardless of the purpose or intent for holding the derivative. Where the fair value of a derivative instrument is a net liability, the derivative instrument is classified in "Other current liabilities" in the Consolidated Balance Sheet. Where the fair value of a derivative instrument is a net asset, the derivative instrument is classified in "Other non-current assets" in the Consolidated Balance Sheet. The method of recognizing the resulting gain or loss is dependent on whether the derivative contract is designed to hedge a specific risk and also qualifies for hedge accounting. The Company hedge accounts for certain of its interest rate swap arrangements designated as cash flow hedges. For derivative instruments that are not designated or do not qualify as hedges under the guidance, the changes in fair value of the derivative financial instrument are recognized each period in current earnings in "Other financial items" in the Consolidated Statement of Operations. When a derivative is designated as a cash flow hedge, we formally document the relationship between the derivative and the hedged item. This documentation includes the strategy risk and risk management for undertaking the hedge and the method that will be used to assess effectiveness of the hedge. If the derivative is an effective hedge, changes in the fair value are initially recorded as a component of accumulated other comprehensive income in equity. The ineffective portion of the hedge is recognized immediately in earnings, as are any gains or losses on the derivative that are excluded from the assessment of hedge effectiveness. We do not apply hedge accounting if we determine that the hedge was not effective or will no longer be effective, the derivative was sold or exercised, or the hedged item was sold or repaid. In the periods when the hedged items affect earnings, the associated fair value changes on the hedged derivatives are transferred from equity to the corresponding earnings line item on the settlement of a derivative. The ineffective portion of the change in fair value of the derivative financial instrument is immediately recognized in earnings. If a cash flow hedge is terminated and the originally hedged item is still considered probable of occurring, the gains and losses initially recognized in equity remain there until the hedged item impacts earnings at which point they are transferred to the corresponding earnings line item (i.e. interest expense). If the hedged items are no longer probable of occurring, amounts recognized in equity are immediately reclassified to earnings. Cash flows from derivative instruments that are accounted for as cash flow hedges are classified in the same category as the cash flows from the items being hedged. Cashflows from economic hedges are classified in the same category from the items subject to the economic hedging relationship. |
Convertible bonds | Convertible bonds In accordance with accounting guidance "Debt with conversion and other options", we account for debt instruments with convertible features in accordance with the details and substance of the instruments at the time of their issuance. For convertible debt instruments issued at a substantial premium to equivalent instruments without conversion features, or those that may be settled in cash upon conversion, it is presumed that the premium or cash conversion option represents an equity component. Accordingly, we determine the carrying amounts of the liability and equity components of such convertible debt instruments by first determining the carrying amount of the liability component by measuring the fair value of a similar liability that does not have an equity component. The carrying amount of the equity component representing the embedded conversion option is then determined by deducting the fair value of the liability component from the total proceeds from the issue. The resulting equity component is recorded, with a corresponding offset to debt discount which is subsequently amortized to interest cost using the effective interest method over the period the debt is expected to be outstanding as an additional non-cash interest expense. Transaction costs associated with the instrument are allocated pro-rata between the debt and equity components. For conventional convertible bonds which do not have a cash conversion option or where no substantial premium is received on issuance, it may not be appropriate to split the bond into the liability and equity components. |
Provisions | Provisions In the ordinary course of business, we are subject to various claims, suits and complaints. Management, in consultation with internal and external advisers, will provide for a contingent loss in the financial statements if the contingency had occurred at the date of the financial statements and the likelihood of loss was probable and the amount can be reasonably estimated. If we determine that the reasonable estimate of the loss is a range and there is no best estimate within the range, we will provide the lower amount within the range. |
Pensions | Pensions Defined benefit pension costs, assets and liabilities requires adjustment of the significant actuarial assumptions annually to reflect current market and economic conditions. Our accounting policy states that full recognition of the funded status of defined benefit pension plans is to be included within our balance sheet. The pension benefit obligation is calculated by using a projected unit credit method. Defined contribution pension costs represent the contributions payable to the scheme in respect of the accounting period and are recorded in the Consolidated Statement of Operations. |
Guarantees | Guarantees Guarantees issued by us, excluding those that are guaranteeing our own performance, are recognized at fair value at the time that the guarantees are issued, or upon the deconsolidation of a subsidiary, and reported in "Other long-term liabilities." A liability for the fair value of the obligation undertaken in issuing the guarantee is recognized. If it becomes probable that we will have to perform under a guarantee, we will recognize an additional liability if the amount of the loss can be reasonably estimated. The recognition of fair value is not required for certain guarantees such as the parent's guarantee of a subsidiary's debt to a third party. For those guarantees excluded from the above guidance requiring the fair value recognition provision of the liability, financial statement disclosures of such items are made. |
Treasury shares | Treasury shares Treasury shares are recognized as a separate component of equity at cost. Upon subsequent disposal of treasury shares, any consideration is recognized directly in equity. |
Stock-based compensation | Stock-based compensation In accordance with the guidance on "Share Based Payment", we are required to expense the fair value of stock options issued to employees over the period the options vest. We amortize stock-based compensation for awards on a straight-line basis over the period during which the employee is required to provide service in exchange for the reward - the requisite service (vesting) period. No compensation cost is recognized for stock options for which employees do not render the requisite service. The fair value of employee share options is estimated using the Black-Scholes option-pricing model. |
Earnings per share | Earnings per share Basic earnings per share ("EPS") is computed based on the income available to common stockholders and the weighted average number of shares outstanding for basic EPS. Treasury shares are not included in the calculation. Diluted EPS includes the effect of the assumed conversion of potentially dilutive instruments. Such potentially dilutive common shares are excluded when the effect would be to increase earnings per share or reduce a loss per share. |
Operating leases | Operating leases Initial direct costs (those directly related to the negotiation and consummation of the lease) are deferred and allocated to earnings over the lease term. Rental income and expense are amortized over the lease term on a straight-line basis. |
Income taxes | Income taxes Income taxes are based on a separate return basis. The guidance on "Accounting for Income Taxes" prescribes a recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Deferred tax assets and liabilities are recognized principally for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Realization of the deferred income tax asset is dependent on generating sufficient taxable income in future years. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realized or the liability is settled, based on the tax rates and tax laws that have been enacted or substantively enacted at the balance sheet date. Income tax relating to items recognized directly in the statement of comprehensive income is recognized in the statement of changes in equity and not in the statement of operations. |
Related parties | Related parties Parties are related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also related if they are subject to common control or significant influence. |
Gain on issuance of shares by subsidiaries | Gain on issuance of shares by subsidiaries We recognize a gain or loss when a subsidiary issues its stock to third parties at a price per share in excess or below its carrying value resulting in a reduction in our ownership interest in the subsidiary. The gain or loss is recorded in the line "Additional paid-in capital". |
Gain on disposals to Golar Partners | Gain on disposals to Golar Partners Where we have a gain or loss upon disposal of a subsidiary or business to Golar Partners, or where a subsidiary or business is deconsolidated, the gain or loss is recognized in the income statement at the time of sale as a component of operating income. |
LNG trading | LNG trading We trade in physical cargoes, futures, swaps and options, all of which are traded on and recognized in liquid markets. Purchases and sales are recognized on the trade date. Open trading positions are stated at fair value based on closing market price on the balance sheet date. The market values of open positions are shown in debtors if positive or creditors if negative. Realized and unrealized gains and losses are recognized in current earnings in "Other operating gains and losses". The net transaction value of energy trading contracts that were physically settled for the years ending December 31, 2015 , 2014 and 2013 , was $ nil , $4.0 million and $ nil , respectively. Contracts to buy and sell physical cargoes for future delivery settled on the bill of lading date are recognized at their fair value at the balance sheet date. |
Segment reporting | Segment reporting A segment is a distinguishable component of the business that is engaged in business activities from which we earn revenues and incur expenses whose operating results are regularly reviewed by the chief operating decision maker, and which are subject to risks and rewards that are different from those of other segments. We have identified three reportable industry segments: vessel operations, LNG trading and FLNG (see note 7). |
Recently Issued Accounting Standards | Adoption of new accounting standards In April 2015, the FASB issued amendments to ASU 2015-03 "Interest- Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs". The guidance simplifies the presentation of debt issuance costs by requiring debt issuance costs to be presented as a deduction from the corresponding liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs is not affected. The guidance is effective for financial statements issued for annual periods beginning after December 15, 2015. The company early adopted ASU 2015-03 effective December 31, 2015 and applied this guidance retrospectively to all prior periods presented in the company's consolidated financial statements. In November 2015, the FASB issued amendments to ASC 740, requiring classification all of deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. Also, companies will no longer allocate valuation allowances between current and noncurrent deferred tax assets because those allowances also will be classified as noncurrent. The guidance is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. However, early adoption is permitted. We have elected to adopt the guidance prospectively for annual periods beginning January 1, 2015. Accounting pronouncements to be adopted In June 2014, the FASB issued guidance for compensation - stock compensation, accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. Under ASC 718, compensation - stock compensation, a performance target in a share-based payment that affects vesting and that could be achieved after the requisite service period should be accounted for as a performance condition. As a result, the target is not reflected in the estimation of the award’s grant date fair value. Compensation cost would be recognized over the required service period, if it is probable that the performance condition will be achieved. This guidance was issued to resolve diversity in practice. The guidance is effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods. Early adoption is permitted. The guidance should be applied prospectively to awards that are granted or modified on or after the effective date. Entities also have the option to apply the amendments on a modified retrospective basis for performance targets outstanding on or after the beginning of the first annual period presented as of the adoption date. An entity that elects to use this approach should record a cumulative-effect adjustment as of the beginning of the first period presented, and use of hindsight is permitted. We believe the adoption of this guidance will not have a material impact on our consolidated financial position, results of operations and cash flows. In August 2014, the FASB issued guidance for presentation of financial statement - going concern. The amendments in this update provide guidance in GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued or available to be issued and to provide related footnote disclosures. The amendments are effective for the annual periods beginning after December 15, 2016, and interim periods, and for the annual period ending after December 15, 2016 and interim periods within those periods. We believe the adoption of this guidance will not have a material impact on our consolidated financial position, results of operations and cash flows. In November 2014, the FASB issued guidance for derivatives and hedging where it eliminates different methods used in current practice in accounting for hybrid financial instruments issued in the form of a share. The amendments clarify how current GAAP should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Specifically, the amendments clarify that an entity should consider all relevant terms and features including embedded derivative feature being evaluated for bifurcation in evaluating the nature of the host contract. Furthermore, the amendments clarify that no single term or feature would necessarily determine the economic characteristics and risks of the host contract. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. We are assessing what impact, if any, the adoption of this guidance will have on our consolidated financial position, results of operations and cash flows. In January 2015, the Financial Accounting Standards Board ("FASB") issued guidance to simplify the income statement presentation requirements by eliminating the concept of extraordinary items. We believe the adoption of this guidance will not have a material impact on our consolidated financial position, results of operations and cash flows. In February 2015, the FASB issued amendments to ASC 810 requiring re-evaluation of all legal entities under the revised consolidation model. This is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Specifically, the amendments: • modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities; • eliminate the presumption that a general partner should consolidate a limited partnership; • affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and • provide a scope exception from consolidation guidance for reporting entities with interest in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. We are assessing what impact, if any, the adoption of this guidance will have on our consolidated financial position, results of operations and cash flows. ASC 820, Fair Value Measurement, permits a reporting entity, as a practical expedient, to measure the fair value of certain investments using the net asset value per share of the investment. Currently, investments using the practical expedient are categorized within the fair value hierarchy according to the date when the investment is redeemable. In May 2015, the FASB issued amendments to ASC 820 which have the effect of a) removing the requirement to categorize these investments and b) limiting disclosures of these investments. We believe the adoption of this guidance will not have a material impact on our consolidated financial position, results of operations and cash flows. In July 2015, the FASB issued amendments to ASC 330 that simplifies the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. The guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2016. We believe the adoption of this guidance will not have a material impact on our consolidated financial position, results of operations and cash flows. In May 2014, the FASB issued a new topic ASC 606, Revenue from Contracts With Customers. The intention of the topic is to harmonize revenue recognition requirements with the newly issued standard, IFRS 15, by the International Accounting Standards Board (IASB). The initial effective date for public business entities was for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. In August 2015, the FASB issued an amendment to ASC deferring the effective date to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. We are assessing what impact, if any, the adoption of this guidance will have on our consolidated financial position and results of operations. In September 2015, the FASB issued amendments to ASC 805. The guidance eliminates the requirement that an acquirer in a business combination account for measurement-period adjustments retrospectively. Instead, an acquirer will recognize a measurement-period adjustment during the period in which it determines the amount of the adjustment, including the effect on earnings of any amounts it would have recorded in previous periods if the accounting had been completed at the acquisition date. The guidance is effective for fiscal years, including interim periods within those fiscal years, beginning after 15 December 2015. We are assessing what impact, if any, the adoption of this guidance will have on our consolidated financial position and results of operations. In March 2016, the FASB issued guidance (“Topic 842”) to increase transparency and comparability among organizations by requiring i) recognition of lease assets and lease liabilities on the balance sheet and ii) disclosure of key information about leasing arrangements. The accounting applied by lessors under Topic 842 is largely unchanged from previous GAAP. Some changes to the lessor accounting guidance were made to align both of the following: i) the lessor accounting guidance with certain changes made to the lessee accounting guidance and ii) key aspects of the lessor accounting model with revenue recognition guidance. Topic 842 will be effective for fiscal years and interim periods beginning after December 15, 2018, and early adoption is permitted. A modified retrospective approach is required for adoption for all leases that exist at or commence after the date of initial application with an option to use certain practical expedients. We are currently assessing whether we will early adopt, and the impact on our financial statements is not currently estimable. |
ACCOUNTING POLICIES (Restated46
ACCOUNTING POLICIES (Restated) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of useful lives applied in depreciation | Useful lives applied in depreciation are as follows: Vessels 40 to 50 years Deferred drydocking expenditure two to five years Office equipment and fittings three to six years |
SUBSIDIARIES (Tables)
SUBSIDIARIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
SUBSIDIARIES [Abstract] | |
Listing of significant subsidiaries | The following table lists our significant subsidiaries and their purpose as at December 31, 2015 . Unless otherwise indicated, we own a 100% controlling interest in each of the following subsidiaries. Name Jurisdiction of Incorporation Purpose Golar LNG 2216 Corporation Marshall Islands Owns Golar Arctic Golar Management Limited United Kingdom Management company Golar GP LLC – Limited Liability Company Marshall Islands Holding company Golar LNG Energy Limited Bermuda Holding company Golar Gimi Corporation Marshall Islands Owns Gimi Golar Hilli Corporation (89%)* Marshall Islands Owns Hilli Golar Gandria N.V. Netherlands Owns and operates Gandria Golar Hull M2021 Corporation Marshall Islands Owns and operates Golar Seal Golar Hull M2022 Corporation Marshall Islands Owns and operates Golar Crystal Golar Hull M2023 Corporation Marshall Islands Owns and operates Golar Penguin LNG Power Limited United Kingdom Holding company Golar Hull M2026 Corporation Marshall Islands Owns and operates Golar Celsius Golar Hull M2027 Corporation Marshall Islands Owns and operates G olar Bear Golar Hull M2047 Corporation Marshall Islands Leases and operates Golar Snow*** Golar Hull M2048 Corporation Marshall Islands Leases and operates Golar Ice*** Golar LNG NB10 Corporation Marshall Islands Leases and operates Golar Glacier*** Golar LNG NB11 Corporation Marshall Islands Leases and operates Golar Kelvin*** Golar LNG NB12 Corporation Marshall Islands Owns and operates Golar Frost Golar LNG NB13 Corporation Marshall Islands Leases and operates Golar Tundra*** GVS Corporation Marshall Islands Owns and operates Golar Viking Golar Management Norway AS** Norway Management company Golar Commodities Limited Bermuda Trading company * The Hilli was sold to Golar Hilli Corporation prior to the commencement of her conversion to a FLNG. Keppel Shipyard Limited and Black & Veatch hold the remaining 10% and 1% interest, respectively, in the issued share capital of Golar Hilli Corporation. ** In September 2015, Golar acquired the remaining 40% interest in Golar Wilhelmsen Management AS. In December 2015, the company was renamed Golar Management Norway AS (or "GMN"). *** The above table excludes mention of the lessor variable interest entities (''lessor VIEs'') that we have leased vessels from under finance leases. The lessor VIEs are wholly-owned, newly formed special purpose vehicles ("SPVs") of financial institutions. While we do not hold any equity investments in these SPVs, we have concluded that we are the primary beneficiary of these lessor VIEs and accordingly have consolidated these entities into our financial results. Refer to note 4 for additional detail. |
VARIABLE INTEREST ENTITIES ("VI
VARIABLE INTEREST ENTITIES ("VIE") (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
VARIABLE INTEREST ENTITIES [Abstract] | |
Schedule of sale leaseback transactions | The following table gives a summary of the sale and leaseback arrangements, including repurchase options and obligations as of December 31, 2015: Vessel Effective from Sales value (in $ millions) First repurchase option (in $ millions) Date of first repurchase option Repurchase obligation at end of lease term (in $ millions) End of lease term Golar Glacier October 2014 204.0 173.8 October 2019 142.7 October 2024 Golar Kelvin January 2015 204.0 173.8 January 2020 142.7 January 2025 Golar Snow January 2015 204.0 173.8 January 2020 142.7 January 2025 Golar Ice February 2015 204.0 173.8 February 2020 142.7 February 2025 Golar Tundra November 2015 254.6 194.1 November 2018 101.8 November 2025 |
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, 2015, are shown below: (in $ thousands) 2016 2017 2018 2019 2020 2021+ Golar Glacier 17,147 17,100 17,100 17,100 17,147 64,137 Golar Kelvin 17,147 17,100 17,100 17,100 17,147 66,995 Golar Snow 17,147 17,100 17,100 17,100 17,147 66,995 Golar Ice 17,147 17,100 17,100 17,100 17,147 69,899 Golar Tundra 12,729 12,729 12,729 12,729 12,729 61,522 |
Schedule of assets and liabilities of lessor VIEs | The assets and liabilities of the ICBCL and CMBL lessor VIEs that most significantly impact our consolidated balance sheet as of December 31, 2015 and 2014, are as follows: (in $ thousands) Golar Glacier Golar Kelvin Golar Snow Golar Ice Golar Tundra 2015 2014 Assets Total Total Restricted cash and short term receivables (see note 20) 7,132 16,942 8,648 2,728 — 35,450 — Restricted cash - held-for-sale current assets (1) (see note 19) — — — — 3,618 3,618 — 7,132 16,942 8,648 2,728 3,618 39,068 — Liabilities Debt: Short-term interest bearing debt (see note 25) 31,826 182,540 22,566 172,046 — 408,978 31,826 Long-term interest bearing debt - current portion (see note 25) 7,650 — 8,000 — — 15,650 7,650 Long-term interest bearing debt - non-current portion (see note 25) 137,700 — 148,000 — — 285,700 145,350 Short-term interest bearing debt - held-for-sale (1) (see note 19) — — — — 201,725 201,725 — 177,176 182,540 178,566 172,046 201,725 912,053 184,826 (1) The assets and liabilities relating to the Golar Tundra lessor VIE have been reclassified as “held-for-sale” in connection with the sale of our interests in the companies that own and operate the vessel to Golar Partners (see note 19). |
DISPOSALS TO GOLAR PARTNERS (49
DISPOSALS TO GOLAR PARTNERS (Restated) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of disposal groups, including discontinued operations | In January 2015, we sold our interests in the company that owns and operates the Golar Eskimo to Golar Partners. (in thousands of $) Golar Eskimo Cash consideration received (1) 226,010 Carrying value of the net assets sold to Golar Partners (123,604 ) Gain on disposal 102,406 The gain from the sale of the Golar Eskimo in January 2015 was $102.4 million and has been recognized in the consolidated statements of operation under "Gain on disposals to Golar Partners" for the year ended December 31, 2015. (1) The cash consideration for the Golar Eskimo comprised of $390.0 million for the vessel and charter less the assumed bank debt of $162.8 million less purchase price adjustments of $1.2 million . In March 2014, we sold our interests in the company that owns and operates the Golar Igloo to Golar Partners. (in thousands of $) Golar Igloo Cash consideration received (2) 156,001 Carrying value of the net assets sold to Golar Partners (112,714 ) Gain on disposal 43,287 The gain from the sale of the Golar Igloo in March 2014 was $43.3 million and has been recognized in the consolidated statements of operation under "Gain on disposals to Golar Partners" for the year ended December 31, 2014. (2) The cash consideration for the Golar Igloo comprised of $ 310.0 million for the vessel and charter less the assumed bank debt of $ 161.3 million plus purchase price adjustments of $ 7.3 million . In February 2013, we sold our interests in the company that owns and operates the Golar Maria to Golar Partners. (in thousands of $) Golar Maria Restated Cash consideration received (3) 127,900 Carrying value of the net assets sold to Golar Partners (45,630 ) Gain on disposal 82,270 The gain from the sale of the Golar Maria in February 2013 was $ 82.3 million and has been recognized in the consolidated statements of operation under "Gain on disposals to Golar Partners" for the year ended December 31, 2013. (3) The cash consideration for the Golar Maria comprised of $215.0 million for the vessel less the assumed bank debt and interest rate swap liability of $89.5 million and $3.1 million , respectively, plus purchase price adjustments of $5.5 million . Assets and liabilities included in our consolidated balance sheet presented as held-for-sale are shown below: (in thousands of $) 2015 2014 Restated Restated ASSETS Current assets Restricted cash 3,618 — Other receivables, prepaid expenses and accrued income 217 196 Inventories 572 266 Total current assets 4,407 462 Non-current assets Vessels and equipment, net 262,627 280,284 Total non-current assets 262,627 280,284 Total assets (2) 267,034 280,746 LIABILITIES Current liabilities Current portion of long-term debt — (13,074 ) Short-term debt, net of deferred finance charges (1) (199,300 ) — Trade accounts payable (844 ) (419 ) Accrued expenses (1,019 ) (786 ) Amounts due to related parties (50 ) (366 ) Total current liabilities (201,213 ) (14,645 ) Non-current liabilities Long-term debt — (145,547 ) Total non-current liabilities — (145,547 ) Total liabilities (2) (201,213 ) (160,192 ) (1) The short-term debt net of deferred finance charges of $199.3 million relates to a secured debt financing arrangement entered into by the CMBL lessor VIE in respect of the Golar Tundra . The debt facility is denominated in USD, bears interest at LIBOR plus a margin and is repayable with a final balloon payment of $199.3 million in 2016. Although we have no control over the funding arrangements of the CMBL lessor VIE, as we consider ourselves the primary beneficiary of the VIE, we are required to consolidate this loan facility into our financial results. Refer to note 4 for additional detail. (2) We have classified all assets and liabilities as current on the consolidated balance sheets. (3) We have not presented any of our held-for-sale assets or disposal groups as discontinued operations in our statements of operations as we consider ourselves a project development company, such that our strategy encompasses the disposal of vessels and related interests for the purpose of financing our projects, thus they do not represent a strategic shift and do not have a major effect on our operations and financial results. |
SEGMENTAL INFORMATION (Restat50
SEGMENTAL INFORMATION (Restated) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment reporting information | (in thousands of $) 2015 - Restated 2014 - Restated 2013 - Restated Vessel operations LNG trading FLNG* Total Vessel LNG FLNG* Total Vessel operations LNG trading Total Time and voyage charter revenues 90,127 — — 90,127 95,399 — — 95,399 90,558 — 90,558 Vessel and other management fees 12,547 — — 12,547 10,756 — — 10,756 9,270 — 9,270 Vessel and voyage operating expenses (125,389 ) — — (125,389 ) (76,910 ) — — (76,910 ) (58,009 ) — (58,009 ) Administrative expenses (28,657 ) — (4,869 ) (33,526 ) (17,468 ) (64 ) (1,735 ) (19,267 ) (22,816 ) (136 ) (22,952 ) Impairment of long-term assets (1,957 ) — — (1,957 ) (500 ) — — (500 ) (500 ) — (500 ) Depreciation and amortization (73,732 ) — — (73,732 ) (49,561 ) (250 ) — (49,811 ) (36,562 ) (309 ) (36,871 ) Other operating loss — — — — (6,387 ) — — (6,387 ) — — — Other operating gains (losses) - LNG trade — — — — — 1,317 — 1,317 — — — Gain on disposals to Golar Partners (including amortization of deferred gain) 102,406 — — 102,406 43,287 — — 43,287 82,270 — 82,270 Impairment of vessel held-for-sale (1,032 ) — — (1,032 ) — — — — — — — Loss on disposal of vessel (5,824 ) — — (5,824 ) — — — — — — — Operating (loss) income (31,511 ) — (4,869 ) (36,380 ) (1,384 ) 1,003 (1,735 ) (2,116 ) 64,211 (445 ) 63,766 Total other non-operating income (expense) (27 ) — (27 ) (446 ) 718 — 272 (2,482 ) — (2,482 ) Net financial (expenses) income (174,619 ) — — (174,619 ) (87,600 ) (252 ) — (87,852 ) 41,768 — 41,768 Income taxes 3,053 — — 3,053 1,114 — — 1,114 3,404 — 3,404 Equity in net earnings (losses) of affiliates 55,985 — — 55,985 42,220 — — 42,220 3,099 — 3,099 Net (loss) income (147,119 ) — (4,869 ) (151,988 ) (46,096 ) 1,469 (1,735 ) (46,362 ) 110,000 (445 ) 109,555 Non-controlling interests (19,158 ) — — (19,158 ) (1,655 ) — — (1,655 ) — — — Net (loss) income attributable to Golar LNG Ltd (166,277 ) — (4,869 ) (171,146 ) (47,751 ) 1,469 (1,735 ) (48,017 ) 110,000 (445 ) 109,555 Total assets 3,398,394 — 870,804 4,269,198 3,538,287 1,335 360,120 3,899,742 2,591,398 268 2,591,666 Investment in affiliates 541,565 — — 541,565 746,263 — — 746,263 766,024 — 766,024 Capital expenditures 565,777 — 111,572 677,349 1,202,901 — 313,645 1,516,546 734,155 — 734,155 * The Hilli conversion into a FLNG commenced in 2014. Therefore no comparative segmental information for the year ended December 31, 2013 was presented. We incurred FLNG project costs of $7.7 million for the year ended December 31, 2013. These were included in administrative expenses. |
Revenue by major customer | In the years ended December 31, 2015 , 2014 and 2013 , revenues from the following customers accounted for over 10% of our consolidated time charter revenues: (in thousands of $) 2015 2014 2013 Nigeria LNG Ltd 37,994 42 % — — % — — % Major commodity trading company 16,167 18 % 15,761 17 % — — % Major Japanese trading company — — % 55,975 59 % 47,744 53 % Gdf Suez Gas — — % — — % 10,015 11 % Eni Spa — — % — — % 8,912 10 % BG Group plc — — % — — % 13,114 14 % |
Revenues and fixed assets with respect to geographical area | The following geographical data presents our revenues with respect only to our FSRUs, operating under long-term charters, at specific locations. LNG vessels operate on a worldwide basis and are not restricted to specific locations. Revenues (in thousands of $) 2015 2014 2013 Kuwait* — 4,182 — * This relates to revenues from the Golar Igloo prior to her disposal to Golar Partners on March 28, 2014. |
IMPAIRMENT OF LONG-TERM ASSETS
IMPAIRMENT OF LONG-TERM ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
IMPAIRMENT OF LONG-TERM ASSETS [Abstract] | |
Impairment of long-term assets | The following table presents the impairment charge recognized in relation to surplus FSRU equipment acquired in connection with the initial conversion of the Golar Spirit to a FSRU. (in thousands of $) 2015 2014 2013 Impairment charge 1,957 500 500 Based on the estimated future undiscounted cash flows of the vessel, which are significantly greater than the respective carrying value, no impairment was recognized on this vessel. (in thousands of $) Vessel 2015 Market value (1) 2015 Carrying value Deficit Golar Arctic 115,000 149,600 34,600 (1) Market values are determined using reference to market comparable values as provided by independent brokers. Since vessel values can be volatile, our estimates of market value may not be indicative of either the current or future prices we could obtain if we sold any of the vessels. In addition, the determination of estimated market values may involve considerable judgment, given the illiquidity of the second-hand markets for these types of vessels. |
OTHER FINANCIAL ITEMS, NET (Tab
OTHER FINANCIAL ITEMS, NET (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
OTHER FINANCIAL ITEMS, NET [Abstract] | |
Components of other financial items, net | (in thousands of $) 2015 2014 2013 Mark-to-market adjustment for interest rate swap derivatives (see note 30) (12,798 ) (28,996 ) 56,461 Interest rate swap cash settlements (see note 30) (15,797 ) (20,424 ) (10,626 ) Mark-to-market adjustment for equity derivatives (see note 30) (67,925 ) (13,657 ) — Mark-to-market adjustment for foreign currency derivatives (see note 30) — 94 719 Impairment of loan (15,010 ) — — Financing arrangement fees and other costs (1,841 ) (7,157 ) (5,632 ) Amortization of deferred financing costs and debt guarantee (3,082 ) (2,459 ) (1,120 ) Foreign exchange loss on operations (2,126 ) (1,200 ) (1,583 ) Other (25 ) (295 ) — (118,604 ) (74,094 ) 38,219 |
TAXATION (Tables)
TAXATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Components of income tax expense (benefit) | The components of income tax expense/(credit) are as follows: (in thousands of $) 2015 2014 2013 Current tax expense/(credit): U.K. 435 2,212 (27 ) Total current tax expense/(credit) 435 2,212 (27 ) Deferred tax expense: U.K. — 161 110 Amortization of tax benefit arising on intra-group transfers of long-term assets (3,488 ) (3,487 ) (3,487 ) Total income tax credit (3,053 ) (1,114 ) (3,404 ) |
Schedule of effective income tax rate reconciliation | The income taxes for the years ended December 31, 2015, 2014 and 2013 differed from the amount computed by applying the Bermuda statutory income tax rate of 0% as follows: Year ended December 31 (in thousands of $) 2015 2014 2013 Income taxes at statutory rate — — — Effect of deferred tax benefit on intra-group transfers of long-term assets (3,488 ) (3,487 ) (3,487 ) Effect of adjustments in respect of current tax in prior periods (330 ) 1,411 (188 ) Effect of taxable income in various countries 765 962 271 Total tax credit (3,053 ) (1,114 ) (3,404 ) |
Deferred income tax assets | Deferred income tax assets are summarized as follows: (in thousands of $) 2015 2014 Deferred tax assets, gross and net 260 260 |
EARNINGS PER SHARE (Restated) (
EARNINGS PER SHARE (Restated) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Components of earnings per share, basic and diluted | The components of the numerator for the calculation of basic and diluted EPS are as follows: (in thousands of $) 2015 2014 2013 Restated Restated Restated Net (loss) income attributable to Golar LNG Ltd stockholders - basic and diluted (171,146 ) (48,017 ) 109,555 The components of the denominator for the calculation of basic and diluted EPS are as follows: (in thousands) 2015 2014 2013 Basic earnings per share: Weighted average number of common shares outstanding 93,357 87,013 80,530 Diluted earnings per share: Weighted average number of common shares outstanding 93,357 87,013 80,530 Effect of dilutive share options — — 381 Effect of dilutive convertible bonds — — 4,545 Common stock and common stock equivalents 93,357 87,013 85,456 (Loss) earnings per share are as follows: 2015 2014 2013 Restated Restated Restated Basic $ (1.83 ) $ (0.55 ) $ 1.36 Diluted $ (1.83 ) $ (0.55 ) $ 1.28 |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Minimum contractual future revenues to be received on time charters | The minimum contractual future revenues to be received on time charters in respect of vessels owned and operated as of December 31, 2015 , were as follows: Year ending December 31 Total (in thousands of $) 2016 12,260 2017 and thereafter 12,852 Total 25,112 |
Future minimum rental payments under non-cancellable operating leases | The future minimum rental payments under our non-cancellable operating leases are as follows: Year ending December 31 Total (in thousands of $) 2016 27,786 2017 23,238 2018 770 2019 599 2020 50 2021 and thereafter — Total minimum lease payments (1) 52,443 (1) The above table includes operating lease charter-hire payments to Golar Partners relating to the Option Agreement entered into in connection with the disposal of the Golar Grand in November 2012. In the event that the charterer does not renew or extend its charter beyond February 2015, Golar Partners has the option to require us to charter the vessel through to October 2017. Golar Partners exercised this option in February 2015 (see note 31). |
INVESTMENTS IN AFFILIATES (Re56
INVESTMENTS IN AFFILIATES (Restated) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Participation percentages, carrying amounts and components of non-consolidated investees | At December 31, 2015 and 2014 , we have the following participation in investments that are recorded using the equity method: 2015 2014 Restated Restated Golar Partners (1) 30.7 % 41.4 % The Cool Pool Limited ("Pool Manager") 33 % — % Egyptian Company for Gas Services S.A.E ("ECGS") 50 % 50 % Golar Wilhelmsen Management AS ("Golar Wilhelmsen") 100 % 60 % (1) As of December 31, 2015, we held a 30.7% (2014: 41.4% ) ownership interest in Golar Partners and 100% (2014: 100% ) of IDR's. The carrying amounts of our investments in our equity method investments as at December 31, 2015 and 2014 are as follows: (in thousands of $) 2015 2014 Restated Restated Golar Partners 536,090 739,744 ECGS 5,475 5,942 Golar Wilhelmsen (1) — 577 Equity in net assets of affiliates 541,565 746,263 (1) Effective September 4, 2015, we ceased equity accounting for our interests in Golar Wilhelmsen, pursuant to the acquisition of the remaining 40% interest in the entity. Accordingly, as of this date, Golar Wilhelmsen became a wholly-owned subsidiary. The components of equity in net assets of non-consolidated affiliates are as follows: (in thousands of $) 2015 2014 Restated Restated Cost 635,714 805,595 Dividend (179,079 ) (126,281 ) Equity in net earnings of other affiliates 85,122 62,319 Share of other comprehensive (loss) income in affiliate (192 ) 4,630 Equity in net assets of affiliates 541,565 746,263 |
Summarized financial information of affiliated undertakings | Summarized financial information of the affiliated undertakings shown on a 100% basis are as follows: (in thousands of $) December 31, 2015 December 31, 2014 ECGS Golar Partners Pool Manager Golar Wilhelmsen ECGS Golar Partners Balance Sheet Current assets 35,042 131,851 4,901 2,096 37,159 141,556 Non-current assets 3,200 2,113,487 — 5 3,224 1,814,646 Current liabilities 27,272 266,012 216 1,044 28,711 277,874 Non-current liabilities 20 1,382,811 — — 20 1,076,589 Non-controlling interest — 66,765 — — — 67,618 Statement of Operations Revenue 72,294 434,687 8,356 6,732 78,946 396,026 Net income 730 172,683 — 479 1,508 184,735 |
OTHER RECEIVABLES, PREPAID EX57
OTHER RECEIVABLES, PREPAID EXPENSES AND ACCRUED INCOME (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
OTHER RECEIVABLES, PREPAID EXPENSES AND ACCRUED INCOME [Abstract] | |
Components of other receivables, prepaid expenses and accrued income | (in thousands of $) 2015 2014 Prepaid expenses 3,580 3,119 Other receivables 17,697 12,102 Corporation tax receivable 3,476 2,277 24,753 17,498 |
NEWBUILDINGS (Tables)
NEWBUILDINGS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Newbuildings [Abstract] | |
Components of newbuildings | (in thousands of $) 2015 2014 Purchase price installments 12,375 312,160 Interest costs capitalized 1,139 17,806 Other costs capitalized 47 14,577 13,561 344,543 |
ASSET UNDER DEVELOPMENT (Tables
ASSET UNDER DEVELOPMENT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Extractive Industries [Abstract] | |
Schedule of Asset Under Development | (in thousands of $) 2015 2014 Purchase price installments 495,518 344,386 Interest costs capitalized 4,187 443 Other costs capitalized 1,317 376 501,022 345,205 |
VESSELS AND EQUIPMENT, NET (Tab
VESSELS AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property and equipment: | |
Components of vessels and equipment, net | Useful lives applied in depreciation are as follows: Vessels 40 to 50 years Deferred drydocking expenditure two to five years Office equipment and fittings three to six years |
Vessels and equipment | |
Property and equipment: | |
Components of vessels and equipment, net | (in thousands of $) 2015 2014 Cost 2,572,740 1,813,170 Accumulated depreciation (236,596 ) (164,282 ) Net book value 2,336,144 1,648,888 |
HELD-FOR-SALE (Restated) (Table
HELD-FOR-SALE (Restated) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
HELD FOR SALE [Abstract] | |
Schedule of disposal groups, including discontinued operations | In January 2015, we sold our interests in the company that owns and operates the Golar Eskimo to Golar Partners. (in thousands of $) Golar Eskimo Cash consideration received (1) 226,010 Carrying value of the net assets sold to Golar Partners (123,604 ) Gain on disposal 102,406 The gain from the sale of the Golar Eskimo in January 2015 was $102.4 million and has been recognized in the consolidated statements of operation under "Gain on disposals to Golar Partners" for the year ended December 31, 2015. (1) The cash consideration for the Golar Eskimo comprised of $390.0 million for the vessel and charter less the assumed bank debt of $162.8 million less purchase price adjustments of $1.2 million . In March 2014, we sold our interests in the company that owns and operates the Golar Igloo to Golar Partners. (in thousands of $) Golar Igloo Cash consideration received (2) 156,001 Carrying value of the net assets sold to Golar Partners (112,714 ) Gain on disposal 43,287 The gain from the sale of the Golar Igloo in March 2014 was $43.3 million and has been recognized in the consolidated statements of operation under "Gain on disposals to Golar Partners" for the year ended December 31, 2014. (2) The cash consideration for the Golar Igloo comprised of $ 310.0 million for the vessel and charter less the assumed bank debt of $ 161.3 million plus purchase price adjustments of $ 7.3 million . In February 2013, we sold our interests in the company that owns and operates the Golar Maria to Golar Partners. (in thousands of $) Golar Maria Restated Cash consideration received (3) 127,900 Carrying value of the net assets sold to Golar Partners (45,630 ) Gain on disposal 82,270 The gain from the sale of the Golar Maria in February 2013 was $ 82.3 million and has been recognized in the consolidated statements of operation under "Gain on disposals to Golar Partners" for the year ended December 31, 2013. (3) The cash consideration for the Golar Maria comprised of $215.0 million for the vessel less the assumed bank debt and interest rate swap liability of $89.5 million and $3.1 million , respectively, plus purchase price adjustments of $5.5 million . Assets and liabilities included in our consolidated balance sheet presented as held-for-sale are shown below: (in thousands of $) 2015 2014 Restated Restated ASSETS Current assets Restricted cash 3,618 — Other receivables, prepaid expenses and accrued income 217 196 Inventories 572 266 Total current assets 4,407 462 Non-current assets Vessels and equipment, net 262,627 280,284 Total non-current assets 262,627 280,284 Total assets (2) 267,034 280,746 LIABILITIES Current liabilities Current portion of long-term debt — (13,074 ) Short-term debt, net of deferred finance charges (1) (199,300 ) — Trade accounts payable (844 ) (419 ) Accrued expenses (1,019 ) (786 ) Amounts due to related parties (50 ) (366 ) Total current liabilities (201,213 ) (14,645 ) Non-current liabilities Long-term debt — (145,547 ) Total non-current liabilities — (145,547 ) Total liabilities (2) (201,213 ) (160,192 ) (1) The short-term debt net of deferred finance charges of $199.3 million relates to a secured debt financing arrangement entered into by the CMBL lessor VIE in respect of the Golar Tundra . The debt facility is denominated in USD, bears interest at LIBOR plus a margin and is repayable with a final balloon payment of $199.3 million in 2016. Although we have no control over the funding arrangements of the CMBL lessor VIE, as we consider ourselves the primary beneficiary of the VIE, we are required to consolidate this loan facility into our financial results. Refer to note 4 for additional detail. (2) We have classified all assets and liabilities as current on the consolidated balance sheets. (3) We have not presented any of our held-for-sale assets or disposal groups as discontinued operations in our statements of operations as we consider ourselves a project development company, such that our strategy encompasses the disposal of vessels and related interests for the purpose of financing our projects, thus they do not represent a strategic shift and do not have a major effect on our operations and financial results. |
COST METHOD INVESTMENT (Resta62
COST METHOD INVESTMENT (Restated) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Cost Method Investments Disclosure [Abstract] | |
Schedule of Cost Method Investments | (in thousands of $) 2015 2014 Restated Restated OLT Offshore LNG Toscana S.p.A ("OLT–O") 7,347 7,347 |
RESTRICTED CASH AND SHORT-TER63
RESTRICTED CASH AND SHORT-TERM RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restricted Cash and Investments [Abstract] | |
Components of restricted cash and cash equivalents | Our restricted cash and short-term investment balances are as follows: (in thousands of $) 2015 2014 Restricted cash relating to the total return equity swap (see note 30) 92,752 46,051 Restricted cash in relation to the Golar Viking — 25,000 Restricted cash in relation to the Hilli 280,000 — Restricted cash and short-term receivables held by ICBC lessor VIEs (see note 4) 35,450 — Restricted cash relating to projects — 3,111 Restricted cash relating to office lease 361 425 Total restricted cash 408,563 74,587 Less: Amounts included in short-term restricted cash and short-term receivables 228,202 74,162 Long-term restricted cash 180,361 425 |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
OTHER NON-CURRENT ASSETS [Abstract] | |
Components of other non-current assets | (in thousands of $) 2015 2014 Mark-to-market interest rate swaps valuation (see note 30) 5,330 12,603 Other long-term assets 45,520 55,839 50,850 68,442 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Components of accrued expenses | (in thousands of $) 2015 2014 Vessel operating and drydocking expenses 5,003 13,443 Administrative expenses 11,460 6,054 Interest expense 36,870 11,627 53,333 31,124 |
OTHER CURRENT LIABILITIES (Re66
OTHER CURRENT LIABILITIES (Restated) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
OTHER CURRENT LIABILITIES [Abstract] | |
Components of other current liabilities | (in thousands of $) 2015 2014 Restated Restated Deferred drydocking, operating cost and charterhire revenue 1,327 9,514 Mark-to-market interest rate swaps valuation (see note 30) 4,597 3,038 Mark-to-market equity swaps valuation (see note 30) 81,581 13,656 Provision in relation to Golar Viking claim — 13,848 Guarantees issued to Golar Partners (see note 31) 6,096 2,246 Dividends payable 40,466 — Other 14,010 4,115 148,077 46,417 |
DEBT (Restated) (Tables)
DEBT (Restated) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Components of long-term debt (including related parties) | (in thousands of $) 2015 2014 Restated Restated Total long-term and short-term debt, net of deferred finance charges 1,835,907 1,353,986 Less: current portion of long-term debt and short-term debt, net of deferred finance charges (491,398 ) (112,853 ) Long-term debt, net of deferred finance charges 1,344,509 1,241,133 |
Future repayments of outstanding debt (including related parties) | The outstanding debt as of December 31, 2015 is repayable as follows: Year ending December 31 (in thousands of $) 2016 501,618 2017 386,008 2018 94,968 2019 145,968 2020 124,126 2021 and thereafter 625,373 Total 1,878,061 Deferred finance charges (42,154 ) Total, net of deferred finance charges 1,835,907 |
Components of debt | At December 31, 2015 and 2014, our debt was as follows: (in thousands of $) 2015 2014 Maturity date Golar Arctic facility 80,200 87,500 2019 Golar Viking facility — 82,000 2017 Golar Viking (2015) 62,500 — 2020 Convertible bonds 243,369 238,037 2017 GoFLNG Hilli facility 50,000 — 2017 Hilli shareholder loans: - Keppel loan 44,066 35,572 2027 - B&V loan 5,000 5,000 2027 $1.125 billion facility: - Golar Seal facility 106,612 117,273 2018/2025* - Golar Celsius facility 107,020 117,721 2018/2025* - Golar Crystal facility 111,941 122,602 2019/2026* - Golar Penguin facility 118,144 128,885 2019/2026* - Golar Bear facility 118,524 129,299 2019/2026* - Golar Frost facility 120,357 131,298 2019/2026* Subtotal 1,167,733 1,195,187 ICBC VIE loans: - Golar Glacier facility 177,176 185,600 2016/2024** - Golar Snow facility 178,566 — 2016/2025** - Golar Kelvin facility 182,540 — ** - Golar Ice facility 172,046 — ** Total debt 1,878,061 1,380,787 Deferred finance charge (42,154 ) (26,801 ) Total debt, net of deferred finance charge 1,835,907 1,353,986 * The commercial loan tranche matures earlier of the two dates, with the remaining balancing maturing at the latter date. ** This represents the total loan facilities drawn down by subsidiaries of ICBC which we consider as VIEs. We determined that we are the primary beneficiary of these VIEs, as we are expected to absorb the majority of the VIEs’ losses and residual gains associated with the vessels sold and leased backed from them. Accordingly, these VIEs and their related loan facilities are consolidated in our results. |
Schedule of tranches | The facility is divided into three tranches, with the following general terms: Tranche Amount Proportion of facility Term of loan from date of drawdown Repayment terms K-Sure $449.0 million 40% 12 years Six-monthly installments KEXIM $450.0 million 40% 12 years Six-monthly installments Commercial $226.0 million 20% 5 years Six-monthly installments, unpaid balance to be refinanced after 5 years |
Schedule of line of credit facilities | Date of drawdown Vessel $1.125 billion facility Amount drawn down October 2013 Golar Seal* $133.2 million $127.9 million October 2013 Golar Celsius $133.2 million $128.4 million May 2014 Golar Crystal $133.2 million $127.9 million September 2014 Golar Penguin $133.2 million $128.9 million September 2014 Golar Bear $133.2 million $129.3 million October 2014 Golar Frost $134.8 million $131.3 million February 2014 Golar Igloo** $161.3 million $161.3 million December 2014 Golar Eskimo*** $162.8 million $162.8 million As at December 2014 $1,125 million $1,098 million * In March 2016, we completed the refinancing of the Seal , which provided approximately $50 million excess cash to liquidity. ** In March 2014, we sold the Golar Igloo to Golar Partners. The Golar Igloo debt of $161.3 million was assumed by Golar Partners. *** In December 2014, we entered into a sale and purchase agreement with Golar Partners to sell the companies that own and operate the Golar Eskimo . Therefore, as of December 31, 2014, we classified the Golar Eskimo debt as "Liabilities held-for-sale" in our consolidated balance sheet. In January 2015, we completed the sale of our interests in the companies that own and operate the Golar Eskimo to Golar Partners. The adjusted consideration for the sale was $388.8 million less Golar Partners’ assumption of the Golar Eskimo debt (see note 6). |
OTHER LONG-TERM LIABILITIES (68
OTHER LONG-TERM LIABILITIES (Restated) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
OTHER LONG-TERM LIABILITIES [Abstract] | |
Components of other long-term liabilities | (in thousands of $) 2015 2014 Restated Restated Pension obligations (see note 27) 36,279 38,670 Guarantees issued to Golar Partners (see note 31) 16,493 19,271 Other 1,308 1,849 54,080 59,790 |
PENSIONS (Tables)
PENSIONS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of employer contributions to defined contributions | The total contributions to our defined contribution scheme were as follows: (in thousands of $) 2015 2014 2013 Employers' contributions 1,035 684 533 |
Components of net periodic benefit cost | The components of net periodic benefit costs are as follows: (in thousands of $) 2015 2014 2013 Service cost 379 369 468 Interest cost 2,042 2,359 2,159 Expected return on plan assets (946 ) (984 ) (918 ) Recognized actuarial loss 1,195 998 1,415 Net periodic benefit cost 2,670 2,742 3,124 |
Reconciliation of benefit obligation | The change in benefit obligation and plan assets and reconciliation of funded status as of December 31 are as follows: (in thousands of $) 2015 2014 Reconciliation of benefit obligation: Benefit obligation at January 1 53,166 50,564 Service cost 379 369 Interest cost 2,042 2,359 Actuarial (gain) loss (2,547 ) 3,700 Foreign currency exchange rate changes (509 ) (686 ) Benefit payments (3,058 ) (3,140 ) Benefit obligation at December 31 49,473 53,166 |
Reconciliation of fair value of plan assets | The accumulated benefit obligation at December 31, 2015 and 2014 was $48.5 million and $51.8 million , respectively. (in thousands of $) 2015 2014 Reconciliation of fair value of plan assets: Fair value of plan assets at January 1 14,496 14,919 Actual return on plan assets (155 ) 896 Employer contributions 2,411 2,459 Foreign currency exchange rate changes (500 ) (638 ) Benefit payments (3,058 ) (3,140 ) Fair value of plan assets at December 31 13,194 14,496 (in thousands of $) 2015 2014 Projected benefit obligation (49,473 ) (53,166 ) Fair value of plan assets 13,194 14,496 Funded status (1) (36,279 ) (38,670 ) Employer contributions and benefits paid under the pension plans include $2.4 million (2014: $2.5 million ) paid from employer assets for the year ended December 31, 2015 . (1) Our plans compose of two plans. |
Reconciliation of funded status | The details of these plans are as follows: December 31, 2015 December 31, 2014 (in thousands of $) UK Scheme Marine Scheme Total UK Scheme Marine Scheme Total Projected benefit obligation (10,145 ) (39,328 ) (49,473 ) (11,163 ) (42,003 ) (53,166 ) Fair value of plan assets 10,277 2,917 13,194 10,383 4,113 14,496 Funded status at end of year 132 (36,411 ) (36,279 ) (780 ) (37,890 ) (38,670 ) |
Pensions: | |
Asset allocation of retirement schemes | The fair value of our plan assets, by category, as of December 31, 2015 and 2014 were as follows: (in thousands of $) 2015 2014 Equity securities 9,620 10,032 Debt securities 3,032 4,004 Cash 542 460 13,194 14,496 |
Amounts recognized in accumulated other comprehensive income | The amounts recognized in accumulated other comprehensive income consist of: (in thousands of $) 2015 2014 Net actuarial loss 12,400 15,251 As at December 31, 2015 , 2014 and 2013 , our accumulated other comprehensive (loss) income balances consisted of the following components: (in thousands of $) 2015 2014 2013 Restated Restated Restated Net (loss) gain on qualifying cash flow hedging instruments, including share of affiliate (192 ) 8,672 2,003 Losses associated with pensions, net of tax recoveries of $nil (2014: $0.2 million) (12,400 ) (15,251 ) (12,731 ) Accumulated other comprehensive (loss) income (12,592 ) (6,579 ) (10,728 ) The components of accumulated other comprehensive (loss) income consisted of the following: Pension and post retirement benefit plan adjustments Gains (losses) on cash flow hedges Share of affiliates comprehensive income Total accumulated comprehensive (loss) income Restated Restated Balance at December 31, 2012 (17,809 ) (6,832 ) (180 ) (24,821 ) Other comprehensive income before reclassification 5,078 4,148 4,859 14,085 Amount reclassified from accumulated other comprehensive (loss) income — 8 — 8 Net current-period other comprehensive income 5,078 4,156 4,859 14,093 Balance at December 31, 2013 (12,731 ) (2,676 ) 4,679 (10,728 ) Other comprehensive income (loss) before reclassification (2,520 ) 3,483 (49 ) 914 Amount reclassified from accumulated other comprehensive income — 3,235 — 3,235 Net current-period other comprehensive income (loss) (2,520 ) 6,718 (49 ) 4,149 Balance at December 31, 2014 (15,251 ) 4,042 4,630 (6,579 ) Other comprehensive (loss) income before reclassification 2,851 — (4,822 ) (1,971 ) Amount reclassified from accumulated other comprehensive income — 382 — 382 Net current-period other comprehensive (loss) income 2,851 382 (4,822 ) (1,589 ) Transfer of additional paid in capital — (4,424 ) — (4,424 ) Balance at December 31, 2015 (12,400 ) — (192 ) (12,592 ) |
Expected contributions to pension schemes | We are expected to make the following contributions to the schemes during the year ended December 31, 2016, as follows: (in thousands of $) UK scheme Marine scheme Employer contributions 592 1,800 |
Expected pension disbursements | We are expected to make the following pension disbursements as follows: (in thousands of $) UK scheme Marine scheme 2016 444 3,000 2017 296 3,000 2018 444 3,000 2019 296 3,000 2020 370 3,000 2021 - 2025 2,590 15,000 |
Weighted average assumptions used | The weighted average assumptions used to determine the benefit obligation for our plans for the years ended December 31 are as follows: 2015 2014 Discount rate 4.34 % 3.95 % Rate of compensation increase 2.07 % 2.21 % The weighted average assumptions used to determine the net periodic benefit cost for our plans for the years ended December 31 are as follows: 2015 2014 Discount rate 3.95 % 4.60 % Expected return on plan assets 6.75 % 6.75 % Rate of compensation increase 2.21 % 2.71 % |
Marine Scheme | |
Pensions: | |
Asset allocation of retirement schemes | The asset allocation for our Marine scheme at December 31, 2015 and 2014 , and the target allocation for 2016, by asset category are as follows: Marine scheme Target allocation 2016 (%) 2015 (%) 2014 (%) Equity 30-65 30-65 30-65 Bonds 10-50 10-50 10-50 Other 20-40 20-40 20-40 Total 100 100 100 |
UK Scheme | |
Pensions: | |
Asset allocation of retirement schemes | The asset allocation for our UK scheme at December 31, 2015 and 2014 , and the target allocation for 2016, by asset category are as follows: UK scheme Target allocation 2016 (%) 2015 (%) 2014 (%) Equity 75.0 75.7 69.0 Bonds 25.0 24.3 31.0 Total 100 100 100 |
SHARE CAPITAL AND SHARE OPTIO70
SHARE CAPITAL AND SHARE OPTIONS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
SHARE CAPITAL AND SHARE OPTIONS [Abstract] | |
Authorized and issue share capital | As at December 31, 2015 and 2014 , our authorized and issued share capital is as follows: Authorized share capital: (in thousands of $, except per share data) 2015 2014 150,000,000 (2014: 150,000,000) common shares of $1.00 each 150,000 150,000 Issued share capital: (in thousands of $, except per share data) 2015 2014 93,546,663 (2014: 93,414,672) outstanding issued common shares of $1.00 each 93,547 93,415 |
Weighted average assumptions used | The weighted average assumptions used are noted in the table below: 2015 2014 2013 Risk free interest rate 1.8 % 1.8 % 2.0 % Expected volatility of common stock 53.1 % 53.6 % 56.9 % Expected dividend yield 0.0 % 0.0 % 0.0 % Expected life of options (in years) 3.0 years 2.9 years 2.6 years |
Summary of stock option activity | A summary of option activity as at December 31, 2015 , 2014 and 2013 , and changes during the years then ended are presented below: (in thousands of $, except per share data) Shares (in '000s) Weighted average exercise price Weighted average remaining contractual term (years) Options outstanding at December 31, 2012 581 $ 7.86 0.8 Exercised during the year (76 ) $ 8.01 Forfeited during the year (7 ) $ 6.58 Options outstanding at December 31, 2013 498 $ 6.36 0.3 Granted during the year 1,793 $ 58.26 Exercised during the year (185 ) $ 7.20 Options outstanding at December 31, 2014 2,106 $ 49.75 4.4 Exercised during the year (132 ) $ 1.70 Forfeited during the year (685 ) $ 56.75 Granted during the year 906 $ 56.63 Options outstanding at December 31, 2015 2,195 $ 52.02 3.9 Options exercisable at: December 31, 2015 190 $ 3.97 0.87 December 31, 2014 317 $ 4.09 1.83 December 31, 2013 419 $ 6.50 0.10 |
ACCUMULATED OTHER COMPREHENSI71
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Restated) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Amounts recognized in accumulated other comprehensive income | The amounts recognized in accumulated other comprehensive income consist of: (in thousands of $) 2015 2014 Net actuarial loss 12,400 15,251 As at December 31, 2015 , 2014 and 2013 , our accumulated other comprehensive (loss) income balances consisted of the following components: (in thousands of $) 2015 2014 2013 Restated Restated Restated Net (loss) gain on qualifying cash flow hedging instruments, including share of affiliate (192 ) 8,672 2,003 Losses associated with pensions, net of tax recoveries of $nil (2014: $0.2 million) (12,400 ) (15,251 ) (12,731 ) Accumulated other comprehensive (loss) income (12,592 ) (6,579 ) (10,728 ) The components of accumulated other comprehensive (loss) income consisted of the following: Pension and post retirement benefit plan adjustments Gains (losses) on cash flow hedges Share of affiliates comprehensive income Total accumulated comprehensive (loss) income Restated Restated Balance at December 31, 2012 (17,809 ) (6,832 ) (180 ) (24,821 ) Other comprehensive income before reclassification 5,078 4,148 4,859 14,085 Amount reclassified from accumulated other comprehensive (loss) income — 8 — 8 Net current-period other comprehensive income 5,078 4,156 4,859 14,093 Balance at December 31, 2013 (12,731 ) (2,676 ) 4,679 (10,728 ) Other comprehensive income (loss) before reclassification (2,520 ) 3,483 (49 ) 914 Amount reclassified from accumulated other comprehensive income — 3,235 — 3,235 Net current-period other comprehensive income (loss) (2,520 ) 6,718 (49 ) 4,149 Balance at December 31, 2014 (15,251 ) 4,042 4,630 (6,579 ) Other comprehensive (loss) income before reclassification 2,851 — (4,822 ) (1,971 ) Amount reclassified from accumulated other comprehensive income — 382 — 382 Net current-period other comprehensive (loss) income 2,851 382 (4,822 ) (1,589 ) Transfer of additional paid in capital — (4,424 ) — (4,424 ) Balance at December 31, 2015 (12,400 ) — (192 ) (12,592 ) |
Reclassification out of accumulated other comprehensive income | The amounts reclassified from accumulated other comprehensive (loss) income for the years ended December 31, 2015, 2014 and 2013 consisted of the following: Details of accumulated other comprehensive (loss) income components Amounts reclassified from accumulated other comprehensive (loss) income Affected line item in the statement of operations 2015 2014 2013 (Gains) losses on cash flow hedges: Foreign currency swap — — (718 ) Other financial items, net Interest rate swap 382 3,235 (1,644 ) Other financial items, net Interest rate swap — — 2,370 Gain on sale of Golar Maria Total reclassifications for the year 382 3,235 8 |
FINANCIAL INSTRUMENTS (Restat72
FINANCIAL INSTRUMENTS (Restated) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Interest rate derivatives | As of December 31, 2015, we have entered into the following interest rate swap transactions involving the payment of fixed rates in exchange for LIBOR as summarized below: Instrument (in thousands of $) Year end Notional value Maturity Dates Fixed Interest Rates Interest rate swaps: Receiving floating, pay fixed 2015 1,250,000 2018/ 2021 1.13% to 1.94% Receiving floating, pay fixed 2014 1,475,937 2015/ 2021 1.13% to 4.52% |
Effect of cash flow hedging relationships on statements of operations | The effect of cash flow hedging relationships relating to swap agreements on the consolidated statements of operations is as follows: (in thousands of $) Effective portion gain/ (loss) reclassified from Accumulated Other Comprehensive Loss Ineffective Portion Derivatives designated as hedging instruments 2015 2014 2013 2015 2014 2013 Interest rate swaps Other financial items, net 382 3,235 (1,644 ) — 876 542 Interest rate swaps Gain on sale of the Golar Maria , net — — 2,370 — — — |
Effect of cash flow hedging relationships on statements of changes in equity | The effect of cash flow hedging relationships relating to interest rate swap agreements to the consolidated statements of changes in equity is as follows: (in thousands of $) Amount of gain recognized in other comprehensive income on derivative (effective portion) Derivatives designated as hedging instruments 2015 2014 2013 Interest rate swaps — 3,483 4,148 |
Fair value hierarchy of derivative and non-derivative financial instruments | The carrying value and fair value of our financial instruments, excluding short term receivables and payables, at December 31, 2015 and 2014 are as follows: Fair value 2015 2015 2014 2014 (in thousands of $) Hierarchy Carrying Value Fair Value Carrying Value Fair Value Restated Restated Restated Restated Restated Non-Derivatives: Cash and cash equivalents Level 1 105,235 105,235 191,410 191,410 Restricted cash and short-term receivables Level 1 408,563 408,563 74,587 74,587 Cost method investments (1) Level 3 7,347 7,347 7,347 7,347 Short-term debt due from related parties (2) Level 2 — — 20,000 20,000 Short-term loans receivable (2) Level 2 6,375 6,375 8,141 8,141 Short-term debt (2) Level 2 408,978 408,978 108,781 108,781 Current portion of long-term debt (3) Level 2 92,640 92,640 7,650 7,650 Long-term debt – convertible bond (3) Level 2 243,369 231,945 238,037 251,555 Long-term debt (3) Level 2 1,133,074 1,133,074 1,026,319 1,026,319 Derivatives: Interest rate swaps asset (4) (5) Level 2 5,330 5,330 12,603 12,603 Interest rate swaps liability (4) (5) Level 2 4,597 4,597 3,038 3,038 Total return equity swap liability (6) (7) Level 2 81,581 81,581 13,656 13,656 1. The carrying value of our cost method investments includes our holdings in OLT Offshore LNG Toscana S.p.A (or OLT-O), as we have no established method of determining the fair value of this investment, we have not estimated its fair value as of December 31, 2015, but have not identified any changes in circumstances which would alter our view of fair value as disclosed. 2. The carrying amounts of our short-term debts and loans receivable approximate their fair values because of the near term maturity of these instruments. 3. Our debt obligations are recorded at amortized cost in the consolidated balance sheets. 4. Derivative liabilities are captured within other current liabilities and derivative assets are captured within long-term assets on the balance sheet. 5. The fair value of our derivative instruments is the estimated amount that we would receive or pay to terminate the agreements at the reporting date, taking into account current interest rates, foreign exchange rates, closing quoted market prices and our creditworthiness and that of our counterparties. The fair value/carrying value of interest rate swap agreements that qualify and are designated as cash flow hedges for accounting purposes as of December 31, 2014 was $0.4 million (with a notional amount of $100.9 million ). We had no designated cash flow hedges for accounting purposes as of December 31, 2015. 6. The fair value of total return equity swaps is calculated using the closing prices of the underlying listed shares, dividends paid since inception and the interest rate charged by the counterparty. 7. The fair values of the equity derivatives are classified as other current liabilities in the balance sheet. |
Summary of fair value of derivative instruments on a gross basis | The following table summarizes the fair value of derivative instruments on a gross basis recorded in our consolidated balance sheets as of December 31, 2015 and 2014: Balance sheet classification 2015 2014 (in thousands of $) Asset Derivatives Interest rate swaps not designated as hedges Other non-current assets 5,330 12,603 Liability Derivatives Interest rate swaps designated as hedges Other current liabilities — 365 Interest rate swaps not designated as hedges Other current liabilities 4,597 2,673 Total return equity swap not designated as hedge Other current liabilities 81,581 13,656 Total liability derivatives 86,178 16,694 |
Offsetting assets | We have elected not to offset the fair values of derivative assets and liabilities executed with the same counterparty that are generally subject to enforceable master netting arrangements. However, if we were to offset and record the asset and liability balances of derivatives on a net basis, the amounts presented in our consolidated balance sheets as of December 31, 2015 and 2014 would be adjusted as detailed in the following table: 2015 2014 Gross amounts presented in the consolidated balance sheet Gross amounts not offset in the consolidated balance sheet subject to netting agreements Net amount Gross amounts presented in the consolidated balance sheet Gross amounts not offset in the consolidated balance sheet subject to netting agreements Net amount (in thousands of $) Total asset derivatives 5,330 (216 ) 5,114 12,603 (292 ) 12,311 Total liability derivatives 4,597 (216 ) 4,381 3,038 (292 ) 2,746 |
RELATED PARTY TRANSACTIONS (R73
RELATED PARTY TRANSACTIONS (Restated) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related party transactions | a) Transactions with Golar Partners and subsidiaries: Income (expenses): (in thousands of $) 2015 2014 2013 Restated Transactions with Golar Partners and subsidiaries: Management and administrative services fees revenue (i) 2,949 2,877 2,569 Ship management fees revenue (ii) 7,577 7,746 6,701 Charter-hire expenses (iii) (41,555 ) — — Gain on disposals to Golar Partners (iv) 102,406 43,287 82,270 Interest income on vendor financing loan (v) 4,217 — — Interest expense on short-term credit facility (203 ) — — Interest income on high-yield bonds (vi) — — 1,972 Share options expense recharge (x) 297 — — Total 75,688 53,910 93,512 Receivables (payables): The balances with Golar Partners and subsidiaries as of December 31, 2015 and 2014 consisted of the following: (in thousands of $) 2015 2014 Trading balances (owing to) due from Golar Partners and subsidiaries (vii) (4,400 ) 13,453 Methane Princess lease security deposit movements (viii) (2,728 ) (3,486 ) $20.0 million revolving credit facility (ix) — 20,000 Total (7,128 ) 29,967 (i) Management and administrative services agreement - On March 30, 2011, Golar Partners entered into a management and administrative services agreement with Golar Management, a wholly-owned subsidiary of ours, pursuant to which Golar Management will provide to Golar Partners certain management and administrative services. The services provided by Golar Management are charged at cost plus a management fee equal to 5% of Golar Management’s costs and expenses incurred in connection with providing these services. Golar Partners may terminate the agreement by providing 120 days written notice. (ii) Ship management fees - Golar and certain of its affiliates charge ship management fees to Golar Partners for the provision of technical and commercial management of the vessels. Each of Golar Partners’ vessels is subject to management agreements pursuant to which certain commercial and technical management services are provided by Golar Management and Golar Wilhelmsen AS ("Golar Wilhelmsen"), a partnership that is jointly controlled by Golar and by Wilhelmsen Ship Management (Norway) AS. Golar Partners may terminate these agreements by providing 30 days written notice. On September 4, 2015, Golar Wilhelmsen became a wholly owned subsidiary of Golar as a result of our acquisition of the remaining 40% interest owned by Wilhelmsen Ship Management (Norway) AS. Accordingly, since this date these ship management fees have been eliminated on consolidation. (iii) Charter-hire expenses - This consists of the charter-hire expenses that we incurred for the charter back of the Golar Eskimo and the Golar Grand from Golar Partners in 2015. In connection with the disposal of the Golar Grand to Golar Partners in November 2012, we issued an option where in the event that the charterer did not renew or extend its charter for the Golar Grand beyond February 2015, the Partnership had the option to require us to charter the vessel through to October 2017. In February 2015, the option was exercised. Accordingly, we recognized charter-hire costs of $28.7 million in 2015 in respect of the Golar Grand . This excludes the expense of $3.9 million , representing the incremental liability recognized in 2015 upon re-measurement of the guarantee obligation, net of the impact of the respective amortization in 2015. In connection with the disposal of the Golar Eskimo in January 2015, we entered into an agreement with Golar Partners to pay $22 million to charter back the vessel until June 30, 2015. Accordingly, of these amounts payable, we recognized total charter-hire expenses of $12.9 million in relation to this agreement in 2015. For additional detail refer to to (iv) below. (iv) Gain on disposals - This refers to the gains arising on the disposals of the Golar Eskimo, the Golar Igloo and the Golar Maria to Golar Partners. These disposals are further described in note 6. In January 2015, we completed the disposal of our interests in the companies that own and operate the FSRU, the Golar Eskimo , which resulted in a gain on disposal of $102.4 million . In addition, we provided Golar Partners with a loan facility for an amount of $220.0 million to part fund their purchase. The loan was non-amortizing with a final balloon payment due in December 2016, and bore interest at a rate equal to LIBOR plus a blended margin of 2.84% . The loan was fully repaid by the end of 2015. In connection with the disposal of the Golar Eskimo , we also entered into an agreement to pay Golar Partners $22 million (of which $12.9 million was recognized as charter-hire expense) for the period from January 20, 2015 through to June 30, 2015 for the right to use the Golar Eskimo and receive all revenues earned from the vessel during this period. The balance of $8.1 million paid represented the financing of future operating leasing income to be received by Golar Partners. In addition, in exchange for entering into the charter back arrangement we agreed with Golar Partners that should we achieve a favorable renegotiation and extension of the charter with the charterer, which increased the value of the charter sold along with the vessel, Golar Partners would pay additional consideration to us equivalent to any increase in value. No charter renegotiation took place and no additional consideration was due or paid. In March 2014, we completed the sale of our interests in the company that owns and operates the FSRU, the Golar Igloo, which resulted in a gain on disposal of $43.3 million . In February 2013, we completed the disposal of our interests in the company that owns and operates the LNG carrier, the Golar Maria , which resulted in a gain on disposal of $82.3 million . (v) Golar Eskimo vendor loan - As discussed further in (iv) above, we granted the Partnership a loan facility for an amount of $220.0 million to part fund their purchase of the Golar Eskimo in January 2015. The loan was fully repaid by the end of 2015. (vi) High-yield bonds - In October 2012, Golar Partners completed the issuance of NOK 1,300.0 million in senior unsecured bonds that mature in October 2017. The aggregate principal amount of the bonds is equivalent to approximately $227.0 million . Of this amount, approximately $35.0 million , was issued to us. We sold our participation in the high yield bonds in November 2013. (vii) Trading balances - Receivables and payables with Golar Partners and its subsidiaries are comprised primarily of unpaid management fees, charter-hire expenses, advisory and administrative services and may include working capital adjustments in respect of disposals to the Partnership. In addition, certain receivables and payables arise when we pay an invoice on behalf of a related party and vice versa. Receivables and payables are generally settled quarterly in arrears. Trading balances owing to or due from Golar Partners and its subsidiaries are unsecured, interest-free and intended to be settled in the ordinary course of business. They primarily relate to recharges for trading expenses paid on behalf of Golar Partners, including ship management and administrative service fees due to us. In November 2015, we received funding from Golar Partners in the amount of $50 million for a fixed period of 28 days. Golar Partners charged interest on this balance at a rate of LIBOR plus 5.0% . (viii) Methane Princess lease security deposit movements - This represents net advances from Golar Partners since its IPO, which correspond with the net release of funds from the security deposits held relating to a lease for the Methane Princess . This is in connection with the Methane Princess tax lease indemnity provided to Golar Partners under the Omnibus Agreement. Accordingly, these amounts will be settled as part of the eventual termination of the Methane Princess lease. (ix) $20 million revolving credit facility - In April 2011, we entered into a $20.0 million revolving credit facility with Golar Partners. This facility is unsecured and interest-free, maturing in April 2015. However, this facility was extended until its repayment in June 2015. (x) Share options expense - This relates to a recharge of share option expense to Golar Partners in relation to share options in Golar granted to certain of Golar Partners directors and officers during 2015. Transactions with these companies until September 10, 2014 are presented below: (in thousands of $) 2015 2014 2013 Frontline (i) — 34 49 Seatankers (i) — (112 ) (45 ) Ship Finance (i) — 116 207 Seadrill (i) — (5 ) — Golar Wilhelmsen (ii) (2,246 ) (7,031 ) (4,899 ) World Shipholding (iii) — — (976 ) Payables to related parties (excluding Golar Partners): (in thousands of $) 2015 2014 Golar Wilhelmsen (ii) — (1,394 ) i. We used to transact business with the following parties, being companies in which World Shipholding and companies associated with World Shipholding have a significant interest: Frontline, Seatankers, Ship Finance and Seadrill. Net expense/income from Frontline, Seatankers and Ship Finance comprise fees for management support, corporate and insurance administrative services, net of income from supplier rebates and income from the provision of serviced offices and facilities. Receivables and payables with related parties comprise primarily of unpaid management fees, advisory and administrative services. ii. As of September 4, 2015, pursuant to the acquisition of the remaining 40% interest, we held a 100% ownership interest in Golar Wilhelmsen, thus making it a controlled and fully consolidated subsidiary from that date. Previous to that we held a 60% ownership interest in Golar Wilhelmsen, which we accounted for using the equity method (see note 13). Golar Wilhelmsen recharges management fees in relation to provision of technical and ship management services. Accordingly, from September 4, 2015, these management fees are eliminated on consolidation. iii. In April 2011, we entered into a revolving credit facility with a company related to our former major shareholder, World Shipholding. In December 31, 2013, the revolving credit facility was amended to $50 million . We repaid the $50 million borrowed under the facility in April 2014. This facility was subsequently terminated in August 2014. |
CAPITAL COMMITMENTS (Tables)
CAPITAL COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Hilli Conversion to FLNGV | |
Long-term Purchase Commitment [Line Items] | |
Schedule of capital commitments payments | As at December 31, 2015, the estimated timing of the outstanding payments in connection with the Hilli conversion are as follows: (in thousands of $) Payable within 12 months to December 31, 2016 306,082 Payable within 12 months to December 31, 2017 374,376 680,458 |
Newbuildings | |
Long-term Purchase Commitment [Line Items] | |
Schedule of capital commitments payments | As at December 31, 2015 , the estimated timing of the installment payments for the newbuilding is due to be paid as follows: (in thousands of $) Payable within 12 months to December 31, 2016 49,500 Payable within 12 months to December 31, 2017 185,625 235,125 |
OTHER COMMITMENTS AND CONTING75
OTHER COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Assets pledged as collateral | Assets Pledged (in thousands of $) December 31, 2015 December 31, 2014 Book value of vessels secured against long-term loans* 2,543,012 1,997,657 * This includes the Golar Tundra which was classified as "held-for-sale" as at December 31, 2015 (see note 19). |
RESTATEMENT OF PREVIOUSLY ISS76
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Restatement of Previously Issued Financial Statements | Golar LNG Limited Consolidated Statements of Operations for the years ended December 31, 2015 , 2014 , and 2013 (in thousands of $) 2015 2014 2013 As previously Adjustment As previously Adjustment As previously Adjustment Reported Restated Reported Restated Reported Restated Operating revenues Time and voyage charter revenues 90,127 — 90,127 95,399 — 95,399 90,558 — 90,558 Vessel and other management fees 12,547 — 12,547 10,756 — 10,756 9,270 — 9,270 Total operating revenues 102,674 — 102,674 106,155 — 106,155 99,828 — 99,828 Operating expenses Vessel operating expenses 56,347 — 56,347 49,570 — 49,570 43,750 — 43,750 Voyage, charter-hire and commission expenses 69,042 — 69,042 27,340 — 27,340 14,259 — 14,259 Administrative expenses 33,526 — 33,526 19,267 — 19,267 22,952 — 22,952 Depreciation and amortization 73,732 — 73,732 49,811 — 49,811 36,871 — 36,871 Impairment of long-term assets 1,957 — 1,957 500 — 500 500 — 500 Total operating expenses 234,604 — 234,604 146,488 — 146,488 118,332 — 118,332 Gain on disposals to Golar Partners (1) 102,884 (478 ) 102,406 43,783 (496 ) 43,287 65,619 16,651 82,270 Other operating loss — — — (6,387 ) — (6,387 ) — — — Impairment of vessel held-for-sale (1,032 ) — (1,032 ) — — — — — — Other operating gains - LNG trade — — — 1,317 — 1,317 — — — Loss on disposal of vessel held-for-sale (5,824 ) — (5,824 ) — — — — — — Operating (loss) income (35,902 ) (478 ) (36,380 ) (1,620 ) (496 ) (2,116 ) 47,115 16,651 63,766 Other non-operating income Dividend income (2) 15,524 (15,524 ) — 27,203 (27,203 ) — 30,960 (30,951 ) 9 Gain on sale of available-for-sale securities (2) (3,011 ) 3,011 — — — — (754 ) 854 100 Other non-operating income (expense) (1) — (27 ) (27 ) 281 (9 ) 272 (2,601 ) 10 (2,591 ) Total other non-operating income 12,513 (12,540 ) (27 ) 27,484 (27,212 ) 272 27,605 (30,087 ) (2,482 ) Financial income (expense) Interest income 6,896 — 6,896 716 — 716 3,549 — 3,549 Interest expense (62,911 ) — (62,911 ) (14,474 ) — (14,474 ) — — — Other financial items, net (118,604 ) — (118,604 ) (74,094 ) — (74,094 ) 38,219 — 38,219 Net financial (expense) income (174,619 ) — (174,619 ) (87,852 ) — (87,852 ) 41,768 — 41,768 (Loss) income before equity in net earnings of affiliates, income taxes and non-controlling interests (198,008 ) (13,018 ) (211,026 ) (61,988 ) (27,708 ) (89,696 ) 116,488 (13,436 ) 103,052 Income taxes 3,053 3,053 1,114 1,114 3,404 3,404 Equity in net earnings of affiliates (2) 16,454 39,531 55,985 19,408 22,812 42,220 15,821 (12,722 ) 3,099 Net (loss) income (178,501 ) 26,513 (151,988 ) (41,466 ) (4,896 ) (46,362 ) 135,713 (26,158 ) 109,555 Net income attributable to non-controlling interests (19,158 ) — (19,158 ) (1,655 ) — (1,655 ) — — — Net (loss) income attributable to Golar LNG Ltd (197,659 ) 26,513 (171,146 ) (43,121 ) (4,896 ) (48,017 ) 135,713 (26,158 ) 109,555 (Loss) earnings per share attributable to Golar LNG Ltd stockholders Per common share amounts: (Loss) earnings – Basic $ (2.12 ) $ 0.29 $ (1.83 ) $ (0.50 ) $ (0.05 ) $ (0.55 ) $ 1.69 $ (0.33 ) $ 1.36 (Loss) earnings – Diluted $ (2.12 ) $ 0.29 $ (1.83 ) $ (0.50 ) $ (0.05 ) $ (0.55 ) $ 1.59 $ (0.31 ) $ 1.28 Cash dividends declared and paid $ 1.35 $ — $ 1.35 $ 1.80 $ — $ 1.80 $ 1.35 $ — $ 1.35 (1) The adjustment pertains to an element of the gain on disposal of the Golar Maria to Golar Partners that was deferred and amortized however should have been recognized in full at the time of the disposal. See item 2 above (2) The adjustment is to account for the equity pick up relating to the various investments in Golar Partners being accounted for under the equity accounting method. See item 1 above Golar LNG Limited Consolidated Statements of Comprehensive Income for the years ended December 31, 2015 , 2014 and 2013 (in thousands of $) 2015 2014 2013 As previously Adjustment As previously Adjustment As previously Adjustment Reported Restated Reported Restated Reported Restated COMPREHENSIVE INCOME Net (loss) income (178,501 ) 26,513 (151,988 ) (41,466 ) (4,896 ) (46,362 ) 135,713 (26,158 ) 109,555 Other comprehensive income: Gain (loss) associated with pensions, net of tax 2,851 — 2,851 (2,520 ) — (2,520 ) 5,078 — 5,078 Net (loss) gain on qualifying cash flow hedging instruments (1) (493 ) (3,947 ) (4,440 ) 6,493 176 6,669 5,010 4,005 9,015 Net (loss) gain on investments in available-for-sale securities (1) (44,359 ) 44,359 — 7,955 (7,955 ) — 1,885 (1,885 ) — Other comprehensive (loss) income (42,001 ) 40,412 (1,589 ) 11,928 (7,779 ) 4,149 11,973 2,120 14,093 Comprehensive (loss) income (220,502 ) 66,925 (153,577 ) (29,538 ) (12,675 ) (42,213 ) 147,686 (24,038 ) 123,648 Comprehensive (loss) income attributable to: Stockholders of Golar LNG Limited (239,660 ) 66,925 (172,735 ) (31,193 ) (12,675 ) (43,868 ) 147,686 (24,038 ) 123,648 Non-controlling interests 19,158 — 19,158 1,655 — 1,655 — — — Comprehensive (loss) income (220,502 ) 66,925 (153,577 ) (29,538 ) (12,675 ) (42,213 ) 147,686 (24,038 ) 123,648 (1) The adjustment is to account for various investments in Golar Partners being accounted for under the equity accounting method. See item 1 above. Golar LNG Limited Consolidated Balance Sheets as of December 31, 2015 and 2014 (in thousands of $) 2015 2014 As previously Adjustment As previously Adjustment Reported Restated Reported Restated ASSETS Current Assets Cash and cash equivalents 105,235 — 105,235 191,410 — 191,410 Restricted cash and short-term receivables 228,202 — 228,202 74,162 — 74,162 Trade accounts receivable 4,474 — 4,474 4,419 — 4,419 Other receivables, prepaid expenses and accrued income 24,753 — 24,753 17,498 — 17,498 Amounts due from related parties — — — 9,967 — 9,967 Short-term debt due from related party — — — 20,000 — 20,000 Inventories 8,650 — 8,650 8,317 — 8,317 Vessel held-for-sale — — — 132,110 — 132,110 Assets held-for-sale (1) 269,459 (2,425 ) 267,034 284,955 (4,209 ) 280,746 Total current assets 640,773 (2,425 ) 638,348 742,838 (4,209 ) 738,629 Long-term assets Restricted cash 180,361 — 180,361 425 — 425 Investment in available-for-sale securities (2) 25,530 (25,530 ) — 275,307 (275,307 ) — Investments in affiliates (2) 313,021 228,544 541,565 335,372 410,891 746,263 Cost method investments (2) 204,172 (196,825 ) 7,347 204,172 (196,825 ) 7,347 Newbuildings 13,561 — 13,561 344,543 — 344,543 Asset under development 501,022 — 501,022 345,205 — 345,205 Vessels and equipment, net 2,336,144 — 2,336,144 1,648,888 — 1,648,888 Deferred charges (1) 42,154 (42,154 ) — 26,801 (26,801 ) — Other non-current assets 50,850 — 50,850 68,442 — 68,442 Total assets 4,307,588 (38,390 ) 4,269,198 3,991,993 (92,251 ) 3,899,742 LIABILITIES AND EQUITY Current liabilities Current portion of long-term debt and short-term debt, net of deferred finance charges (1) 501,618 (10,220 ) 491,398 116,431 (3,578 ) 112,853 Trade accounts payable 53,281 — 53,281 10,811 — 10,811 Accrued expenses 53,333 — 53,333 31,124 — 31,124 Amounts due to related parties 7,128 — 7,128 — — — Other current liabilities (3) 148,583 (506 ) 148,077 46,923 (506 ) 46,417 Liabilities held-for-sale (1) 203,638 (2,425 ) 201,213 164,401 (4,209 ) 160,192 Total current liabilities 967,581 (13,151 ) 954,430 369,690 (8,293 ) 361,397 Long-term liabilities Long-term debt, net of deferred finance charges (1) 1,376,443 (31,934 ) 1,344,509 1,264,356 (23,223 ) 1,241,133 Long-term debt due to related parties — — — — — — Other long-term liabilities (3) 69,225 (15,145 ) 54,080 75,440 (15,650 ) 59,790 Total liabilities 2,413,249 (60,230 ) 2,353,019 1,709,486 (47,166 ) 1,662,320 EQUITY Share capital 93,546,663 common shares 93,547 — 93,547 93,415 — 93,415 Treasury shares (12,269 ) — (12,269 ) — — — Additional paid-in capital 1,317,806 — 1,317,806 1,307,087 — 1,307,087 Contributed surplus 200,000 — 200,000 200,000 — 200,000 Accumulated other comprehensive (loss) gain (2) (41,254 ) 28,662 (12,592 ) 5,171 (11,750 ) (6,579 ) Retained earnings (2)(3) 315,696 (6,822 ) 308,874 675,179 (33,335 ) 641,844 Total stockholders' equity 1,873,526 21,840 1,895,366 2,280,852 (45,085 ) 2,235,767 Non-controlling interests 20,813 — 20,813 1,655 — 1,655 Total equity 1,894,339 21,840 1,916,179 2,282,507 (45,085 ) 2,237,422 Total liabilities and equity 4,307,588 (38,390 ) 4,269,198 3,991,993 (92,251 ) 3,899,742 (1) The adjustment is to account for the deferred finance charges in accordance with ASU 2015-3. See item 2 above. (2) The adjustment is to account for various investments in Golar Partners being accounted for under the equity accounting method. See item 1 above. (3) The adjustment pertains to an element of the gain on disposal of the Golar Maria to Golar Partners that was deferred and amortized however should have been recognized in full at the time of the disposal. See item 2 above. Golar LNG Limited Consolidated Statements of Cash Flows for the years ended December 31, 2015 , 2014 , and 2013 (in thousands of $) 2015 2014 2013 As previously Adjustment As previously Adjustment As previously Adjustment Reported Restated Reported Restated Reported Restated Operating activities Net (loss) income (178,501 ) 26,513 (151,988 ) (41,466 ) (4,896 ) (46,362 ) 135,713 (26,158 ) 109,555 Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: Depreciation and amortization 73,732 — 73,732 49,811 — 49,811 36,871 — 36,871 Amortization of deferred charges and debt guarantee (2,073 ) — (2,073 ) 2,459 — 2,459 1,120 — 1,120 Equity in net earnings of affiliates (1) (16,454 ) (39,531 ) (55,985 ) (19,408 ) (22,812 ) (42,220 ) (15,821 ) 12,722 (3,099 ) Gain on disposals to Golar Partners (2) (102,884 ) 478 (102,406 ) (43,783 ) 496 (43,287 ) (65,619 ) (16,651 ) (82,270 ) Loss on sale of vessel 5,824 — 5,824 — — — — — — Impairment of vessel held-for-sale 1,032 — 1,032 — — — — — — Dividend income from available-for-sale and cost investments recognized in operating income (1) (15,524 ) 15,524 — (27,203 ) 27,203 — (30,960 ) 30,951 (9 ) Dividends received 52,800 — 52,800 61,967 — 61,967 64,198 — 64,198 Loss on disposal of available-for-sale securities (1) 3,011 (3,011 ) — — — — 754 (854 ) (100 ) Gain on disposal of high yield bond in Golar Partners — — — — — — (841 ) — (841 ) Compensation cost related to stock options 4,125 — 4,125 1,619 — 1,619 500 — 500 Net foreign exchange losses (gain) 2,404 — 2,404 1,314 — 1,314 (277 ) — (277 ) Amortization of deferred tax benefits on intra-group transfers (3,488 ) — (3,488 ) (3,488 ) — (3,488 ) (3,487 ) — (3,487 ) Impairment of long-term assets 1,957 — 1,957 500 — 500 500 — 500 Impairment of loan receivable 15,010 — 15,010 — — — — — — Drydocking expenditure (10,405 ) — (10,405 ) (8,947 ) — (8,947 ) (4,248 ) — (4,248 ) Change in assets and liabilities, net of effects from the sale of Golar Eskimo , Golar Igloo and Golar Maria : Restricted cash (280,000 ) — (280,000 ) — — — — — — Trade accounts receivable 911 — 911 (10,533 ) — (10,533 ) 304 — 304 Inventories (2,252 ) — (2,252 ) (809 ) — (809 ) (10,137 ) — (10,137 ) Prepaid expenses, accrued income and other assets (6,361 ) — (6,361 ) 27,612 — 27,612 (50,877 ) — (50,877 ) Amounts due from/to related companies 15,259 — 15,259 (6,003 ) — (6,003 ) 3,497 — 3,497 Trade accounts payable 8,944 — 8,944 (1,746 ) — (1,746 ) 2,525 — 2,525 Accrued expenses 21,479 — 21,479 13,802 — 13,802 3,349 — 3,349 Other current liabilities (2) 66,805 27 66,832 29,175 9 29,184 658 (10 ) 648 Net cash (used in) provided by operating activities (344,649 ) — (344,649 ) 24,873 — 24,873 67,722 — 67,722 Investing activities Additions to vessels and equipment (26,110 ) — (26,110 ) (2,359 ) — (2,359 ) (802 ) — (802 ) Additions to newbuildings (559,667 ) — (559,667 ) (1,150,669 ) — (1,150,669 ) (733,353 ) — (733,353 ) Investing activities (continued) Additions to asset under development (111,572 ) — (111,572 ) (313,645 ) — (313,645 ) — — — Investment in subsidiary, net of cash acquired (16 ) — (16 ) — — — — — — Proceeds from disposal of investments in affiliates 207,428 — 207,428 — — — 99,210 — 99,210 Additions to investment in affiliates (5,023 ) — (5,023 ) — — — (12,400 ) — (12,400 ) Additions to investments — — — — — — (5,649 ) — (5,649 ) Short-term loan granted to third party (2,000 ) — (2,000 ) — — — (11,960 ) — (11,960 ) Repayment of short-term loan granted to third party 400 — 400 — — — 2,469 — 2,469 Proceeds from disposals to Golar Partners, net of cash disposed 226,872 — 226,872 155,319 — 155,319 119,927 — 119,927 Proceeds from disposal of high yield bond in Golar Partners — — — — — — 34,483 — 34,483 Short-term loan granted to Golar Partners — — — (20,000 ) — (20,000 ) (20,000 ) — (20,000 ) Additions to other long-term assets — — — (49,873 ) — (49,873 ) — — — Repayment of short-term loan granted to Golar Partners 20,000 — 20,000 — — — 20,000 — 20,000 Proceeds from disposal of fixed assets 18,987 — 18,987 — — — — — — Restricted cash and short-term receivables (25,255 ) — (25,255 ) (48,043 ) — (48,043 ) (24,992 ) — (24,992 ) Net cash used in investing activities (255,956 ) — (255,956 ) (1,429,270 ) — (1,429,270 ) (533,067 ) — (533,067 ) Financing activities Proceeds from short-term and long-term debt (including related parties) 918,801 — 918,801 1,222,746 — 1,222,746 306,358 — 306,358 Repayments of short-term and long-term debt (including related parties) (215,363 ) — (215,363 ) (239,903 ) — (239,903 ) (9,400 ) — (9,400 ) Financing costs paid (23,266 ) — (23,266 ) (18,672 ) — (18,672 ) (22,612 ) — (22,612 ) Cash dividends paid (121,358 ) — (121,358 ) (155,996 ) — (155,996 ) (108,976 ) — (108,976 ) Proceeds from exercise of share options 225 — 225 1,338 — 1,338 608 — 608 Purchase of treasury shares (12,269 ) — (12,269 ) — — — — — — Proceeds from issuance of equity — — — 660,947 — 660,947 — — — Restricted cash and short-term receivables (32,340 ) — (32,340 ) — — — — — — Net cash provided by financing activities 514,430 — 514,430 1,470,460 — 1,470,460 165,978 — 165,978 Net (decrease) increase in cash and cash equivalents (86,175 ) — (86,175 ) 66,063 — 66,063 (299,367 ) — (299,367 ) Cash and cash equivalents at beginning of period 191,410 — 191,410 125,347 — 125,347 424,714 — 424,714 Cash and cash equivalents at end of period 105,235 — 105,235 191,410 — 191,410 125,347 — 125,347 Supplemental disclosure of cash flow information: Cash paid during the year for: Interest paid, net of capitalized interest 37,964 — 37,964 11,372 — 11,372 — — — Income taxes paid 1,278 — 1,278 1,372 — 1,372 1,322 — 1,322 (1) The adjustment is to account for various investments in Golar Partners being accounted for under the equity accounting method. See item 1 above (2) The adjustment pertains to an element of the gain on disposal of the Golar Maria to Golar Partners that was deferred and amortized however should have been recognized in full at the time of the disposal. See item 2 above Golar LNG Limited Consolidated Statements of Changes in Equity for the years ended December 31, 2015 , 2014 and 2013 (in thousands of $) Share Capital Treasury Shares Additional Paid-in Capital Contributed Surplus Accumulated Other Comprehensive Loss (Restated) Accumulated Earnings (Restated) Non-controlling Interest Total Equity (Restated) Reported Adjustment Restated Reported Adjustment Restated Restated Balance at December 31, 2012 80,504 — 654,042 200,000 (18,730 ) (6,091 ) (24,821 ) 848,503 (2,281 ) 846,222 — 1,755,947 Net income (2)(3) — — — — — — 135,713 (26,158 ) 109,555 — 109,555 Dividends — — — — — — (108,976 ) (108,976 ) — (108,976 ) Exercise of share options 76 — 1,476 — — — (944 ) (944 ) — 608 Grant of share options — — 500 — — — — — — 500 Other comprehensive income (2) — — — — 11,973 2,120 14,093 — — — 14,093 Balance at December 31, 2013 80,580 — 656,018 200,000 (6,757 ) (3,971 ) (10,728 ) 874,296 (28,439 ) 845,857 — 1,771,727 Net (loss) income (2)(3) — — — — — — (43,121 ) (4,896 ) (48,017 ) 1,655 (46,362 ) Dividends — — — — — — (155,996 ) (155,996 ) — (155,996 ) Exercise of share options 185 — 1,153 — — — — — — 1,338 Grant of share options — — 1,619 — — — — — — 1,619 Net proceeds from issuance of shares 12,650 — 648,297 — — — — — — 660,947 Other comprehensive income (2) — — — — 11,928 (7,779 ) 4,149 — — — 4,149 Balance at December 31, 2014 93,415 — 1,307,087 200,000 5,171 (11,750 ) (6,579 ) 675,179 (33,334 ) 641,844 1,655 2,237,422 Net loss (2)(3) — — — — — — (197,659 ) 26,513 (171,146 ) 19,158 (151,988 ) Dividends — — — — — — (161,824 ) (161,824 ) — (161,824 ) Exercise of share options 132 — 93 — — — — — — 225 Grant of share options — — 6,358 — — — — — — 6,358 Forfeiture of share options — — (2,521 ) — — — — — — (2,521 ) Cancellation of share options — — 786 — — — — — — 786 Transfer of additional paid-in capital — — 6,003 — (4,424 ) (4,424 ) — — — 1,579 Other comprehensive loss (2) — — — — (42,001 ) 40,412 (1,589 ) — — — (1,589 ) Treasury shares — (12,269 ) — — — — — — — (12,269 ) Balance at December 31, 2015 93,547 (12,269 ) 1,317,806 200,000 (41,254 ) 28,662 (12,592 ) 315,696 (6,822 ) 308,874 20,813 1,916,179 (1) The adjustment is to account for the deferred finance charges in accordance with ASU 2015-3. See item 2 above (2) The adjustment is to account for various investments in Golar Partners being accounted for under the equity accounting method. See item 1 above (3) The adjustment pertains to an element of the gain on disposal of the Golar Maria to Golar Partners that was deferred and amortized however should have been recognized in full at the time of the disposal. See item 2 above |
GENERAL - Narrative (Details)
GENERAL - Narrative (Details) shares in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)newbuildcarriervesselshares | Dec. 31, 2014USD ($)vessel | Apr. 30, 2011 | |
Ownership interests: | |||
Minimum duration of long-term charter | 5 years | ||
Investments, ownership percentage | 100.00% | ||
Debt outstanding in respect of convertible bonds | $ 1,878,061,000 | $ 1,380,787,000 | |
Book value of vessels secured against long-term loans | $ 2,543,012,000 | 1,997,657,000 | |
Number of vessels potentially being refinanced | vessel | 2 | ||
Refinancing of vessels, potential release to liquidity | $ 100,000,000 | ||
Assumptions used in stress testing, revenue contributions from fleet | 0 | ||
Convertible Debt | Convertible Bonds | |||
Ownership interests: | |||
Debt outstanding in respect of convertible bonds | 243,369,000 | $ 238,037,000 | |
Equity Method Investments | Convertible Bonds | |||
Ownership interests: | |||
Book value of vessels secured against long-term loans | $ 13,000,000 | ||
Vessels and equipment | |||
Ownership interests: | |||
Number of carriers owned and operated | vessel | 16 | 13 | |
Golar Partners | |||
Ownership interests: | |||
Cost method investments, percentage of general partner interest | 2.00% | ||
Golar Partners | |||
Ownership interests: | |||
Percentage ownership in subsidiary | 65.40% | ||
Investments, ownership percentage | 30.70% | 41.40% | |
Golar Partners | |||
Ownership interests: | |||
Investments, ownership percentage | 30.70% | 41.40% | |
Golar Partners | Equity Method Investments | |||
Ownership interests: | |||
Total held subordinated units (in shares) | shares | 15.9 | ||
Golar Partners | Vessels and equipment | |||
Ownership interests: | |||
Number of carriers operated by other | vessel | 10 | 9 | |
LNG carrier | Vessels and equipment | |||
Ownership interests: | |||
Number of carriers owned and operated | carrier | 16 | ||
LNG carrier | Golar Partners | |||
Ownership interests: | |||
Number of carriers operated by other | carrier | 4 | ||
FSRU | |||
Ownership interests: | |||
Number of newbuild commitments contracted for construction | newbuild | 1 | ||
FSRU | Vessels and equipment | |||
Ownership interests: | |||
Number of carriers owned and operated | carrier | 1 | ||
FSRU | Golar Partners | |||
Ownership interests: | |||
Number of carriers operated by other | carrier | 6 |
ACCOUNTING POLICIES (Restated78
ACCOUNTING POLICIES (Restated) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)segmentvessel | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Trading activity: | |||
Transfer of additional paid in capital | $ (1,579) | ||
Percentage of voting interest acquired | 50.00% | ||
Number of vessels in sale and leaseback transaction | vessel | 5 | ||
Number of reportable segments | segment | 3 | ||
Other operating gains and losses | Energy trading contract | |||
Trading activity: | |||
Gains and losses on trading activity | $ 0 | $ 4,000 | $ 0 |
Minimum | Drydocking | |||
Trading activity: | |||
Period until next anticipated drydocking | 2 years | ||
Maximum | Drydocking | |||
Trading activity: | |||
Period until next anticipated drydocking | 5 years | ||
Accumulated Other Comprehensive Loss | |||
Trading activity: | |||
Transfer of additional paid in capital | $ 4,424 | ||
Additional Paid-in Capital | |||
Trading activity: | |||
Transfer of additional paid in capital | (6,003) | ||
Out of Period Correction | Other financial Items, net | |||
Trading activity: | |||
Transfer of additional paid in capital | 1,600 | ||
Out of Period Correction | Accumulated Other Comprehensive Loss | |||
Trading activity: | |||
Transfer of additional paid in capital | 4,400 | ||
Out of Period Correction | Additional Paid-in Capital | |||
Trading activity: | |||
Transfer of additional paid in capital | $ 6,000 |
ACCOUNTING POLICIES (Restated79
ACCOUNTING POLICIES (Restated) - Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Minimum | Vessels | |
Property and equipment: | |
Useful lives applied in depreciation | 40 years |
Minimum | Deferred drydocking expenditure | |
Property and equipment: | |
Useful lives applied in depreciation | 2 years |
Minimum | Office equipment and fittings | |
Property and equipment: | |
Useful lives applied in depreciation | 3 years |
Maximum | Vessels | |
Property and equipment: | |
Useful lives applied in depreciation | 50 years |
Maximum | Deferred drydocking expenditure | |
Property and equipment: | |
Useful lives applied in depreciation | 5 years |
Maximum | Office equipment and fittings | |
Property and equipment: | |
Useful lives applied in depreciation | 6 years |
SUBSIDIARIES - Narrative (Detai
SUBSIDIARIES - Narrative (Details) | Sep. 04, 2015 | Sep. 30, 2015 | Dec. 31, 2015 |
Ownership interests: | |||
Subsidiary ownership percentage | 100.00% | ||
Golar Wilhelmsen Management AS | |||
Ownership interests: | |||
Remaining interest acquired | 100.00% | 40.00% | |
Keppel Shipyard Limited | |||
Ownership interests: | |||
Investments percentage ownership in subsidiaries | 10.00% | ||
Black and Veatch | |||
Ownership interests: | |||
Investments percentage ownership in subsidiaries | 1.00% | ||
Golar LNG 2216 Corporation | |||
Ownership interests: | |||
Percentage ownership in subsidiary | 100.00% | ||
Golar Management Limited | |||
Ownership interests: | |||
Percentage ownership in subsidiary | 100.00% | ||
Golar GP LLC – Limited Liability Company | |||
Ownership interests: | |||
Percentage ownership in subsidiary | 100.00% | ||
Golar LNG Energy Limited | |||
Ownership interests: | |||
Percentage ownership in subsidiary | 100.00% | ||
Golar Gimi Corporation | |||
Ownership interests: | |||
Percentage ownership in subsidiary | 100.00% | ||
Golar Hilli Corporation | |||
Ownership interests: | |||
Percentage ownership in subsidiary | 89.00% | ||
Golar Gandria N.V. | |||
Ownership interests: | |||
Percentage ownership in subsidiary | 100.00% | ||
Golar Hull M2021 Corporation | |||
Ownership interests: | |||
Percentage ownership in subsidiary | 100.00% | ||
Golar Hull M2022 Corporation | |||
Ownership interests: | |||
Percentage ownership in subsidiary | 100.00% | ||
Golar Hull M2023 Corporation | |||
Ownership interests: | |||
Percentage ownership in subsidiary | 100.00% | ||
LNG Power Limited | |||
Ownership interests: | |||
Percentage ownership in subsidiary | 100.00% | ||
Golar Hull M2026 Corporation | |||
Ownership interests: | |||
Percentage ownership in subsidiary | 100.00% | ||
Golar Hull M2027 Corporation | |||
Ownership interests: | |||
Percentage ownership in subsidiary | 100.00% | ||
Golar Hull M2047 Corporation | |||
Ownership interests: | |||
Percentage ownership in subsidiary | 100.00% | ||
Golar Hull M2048 Corporation | |||
Ownership interests: | |||
Percentage ownership in subsidiary | 100.00% | ||
Golar LNG NB10 Corporation | |||
Ownership interests: | |||
Percentage ownership in subsidiary | 100.00% | ||
Golar LNG NB11 Corporation | |||
Ownership interests: | |||
Percentage ownership in subsidiary | 100.00% | ||
Golar LNG NB12 Corporation | |||
Ownership interests: | |||
Percentage ownership in subsidiary | 100.00% | ||
Golar LNG NB13 Corporation | |||
Ownership interests: | |||
Percentage ownership in subsidiary | 100.00% | ||
GVS Corporation | |||
Ownership interests: | |||
Percentage ownership in subsidiary | 100.00% | ||
Golar Management Norway AS | |||
Ownership interests: | |||
Percentage ownership in subsidiary | 100.00% | ||
Golar Commodities Limited | |||
Ownership interests: | |||
Percentage ownership in subsidiary | 100.00% |
VARIABLE INTEREST ENTITIES ("81
VARIABLE INTEREST ENTITIES ("VIE") - Narrative (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015newbuild | Dec. 31, 2015vessel | |
Variable Interest Entity [Line Items] | ||
Number of vessels in sale and leaseback transaction | 5 | |
CMBL Lessor VIE | Golar Tundra | ||
Variable Interest Entity [Line Items] | ||
Sale and leaseback term | 10 years | |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Number of vessels in sale and leaseback transaction | 5 | |
Variable Interest Entity, Primary Beneficiary | ICBC Finance Leasing Co. Ltd Agreement | ||
Variable Interest Entity [Line Items] | ||
Number of vessels in sale and leaseback transaction | 4 | |
Number of newbuilds in sale and leaseback transaction | newbuild | 3 | |
Sale and leaseback term | 10 years | |
Variable Interest Entity, Primary Beneficiary | CMBL Lessor VIE | ||
Variable Interest Entity [Line Items] | ||
Number of vessels in sale and leaseback transaction | 1 | |
Sale and leaseback term | 10 years |
VARIABLE INTEREST ENTITIES ("82
VARIABLE INTEREST ENTITIES ("VIE") - Summary of the Sale and Leaseback Arrangement (Details) - Variable Interest Entity, Primary Beneficiary $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
ICBC Finance Leasing Co. Ltd Agreement | Golar Glacier | |
Variable Interest Entity [Line Items] | |
Sales value | $ 204 |
First repurchase option | 173.8 |
Repurchase obligation at end of lease term | 142.7 |
ICBC Finance Leasing Co. Ltd Agreement | Golar Kelvin | |
Variable Interest Entity [Line Items] | |
Sales value | 204 |
First repurchase option | 173.8 |
Repurchase obligation at end of lease term | 142.7 |
ICBC Finance Leasing Co. Ltd Agreement | Golar Snow | |
Variable Interest Entity [Line Items] | |
Sales value | 204 |
First repurchase option | 173.8 |
Repurchase obligation at end of lease term | 142.7 |
ICBC Finance Leasing Co. Ltd Agreement | Golar Ice | |
Variable Interest Entity [Line Items] | |
Sales value | 204 |
First repurchase option | 173.8 |
Repurchase obligation at end of lease term | 142.7 |
CMBL Lessor VIE | Golar Tundra | |
Variable Interest Entity [Line Items] | |
Sales value | 254.6 |
First repurchase option | 194.1 |
Repurchase obligation at end of lease term | $ 101.8 |
VARIABLE INTEREST ENTITIES ("83
VARIABLE INTEREST ENTITIES ("VIE") - Summary of Bareboat Charters (Details) - Variable Interest Entity, Primary Beneficiary $ in Thousands | Dec. 31, 2015USD ($) |
ICBC Finance Leasing Co. Ltd Agreement | Golar Glacier | |
Variable Interest Entity [Line Items] | |
2,016 | $ 17,147 |
2,017 | 17,100 |
2,018 | 17,100 |
2,019 | 17,100 |
2,020 | 17,147 |
2021 and thereafter | 64,137 |
ICBC Finance Leasing Co. Ltd Agreement | Golar Kelvin | |
Variable Interest Entity [Line Items] | |
2,016 | 17,147 |
2,017 | 17,100 |
2,018 | 17,100 |
2,019 | 17,100 |
2,020 | 17,147 |
2021 and thereafter | 66,995 |
ICBC Finance Leasing Co. Ltd Agreement | Golar Snow | |
Variable Interest Entity [Line Items] | |
2,016 | 17,147 |
2,017 | 17,100 |
2,018 | 17,100 |
2,019 | 17,100 |
2,020 | 17,147 |
2021 and thereafter | 66,995 |
ICBC Finance Leasing Co. Ltd Agreement | Golar Ice | |
Variable Interest Entity [Line Items] | |
2,016 | 17,147 |
2,017 | 17,100 |
2,018 | 17,100 |
2,019 | 17,100 |
2,020 | 17,147 |
2021 and thereafter | 69,899 |
CMBL Lessor VIE | Golar Tundra | |
Variable Interest Entity [Line Items] | |
2,016 | 12,729 |
2,017 | 12,729 |
2,018 | 12,729 |
2,019 | 12,729 |
2,020 | 12,729 |
2021 and thereafter | $ 61,522 |
VARIABLE INTEREST ENTITIES ("84
VARIABLE INTEREST ENTITIES ("VIE") - Summary of assets and liabilities of lessor VIEs (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Variable Interest Entity [Line Items] | |||
Restricted cash | $ 408,563 | $ 74,587 | |
Total assets | 4,269,198 | 3,899,742 | $ 2,591,666 |
Long-term interest bearing debt - current portion | 491,398 | 112,853 | |
Long-term interest bearing debt - non-current portion | 1,344,509 | 1,241,133 | |
Liabilities | 2,353,019 | 1,662,320 | |
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Restricted cash | 35,450 | 0 | |
Total assets | 39,068 | 0 | |
Short-term interest bearing debt | 408,978 | 31,826 | |
Long-term interest bearing debt - current portion | 15,650 | 7,650 | |
Long-term interest bearing debt - non-current portion | 285,700 | 145,350 | |
Liabilities | 912,053 | 184,826 | |
Variable Interest Entity, Primary Beneficiary | Disposal Group, Held-for-sale, Not Discontinued Operations | |||
Variable Interest Entity [Line Items] | |||
Restricted cash | 3,618 | 0 | |
Short-term interest bearing debt | 201,725 | $ 0 | |
ICBC Finance Leasing Co. Ltd Agreement | Variable Interest Entity, Primary Beneficiary | Golar Glacier | |||
Variable Interest Entity [Line Items] | |||
Restricted cash | 7,132 | ||
Total assets | 7,132 | ||
Short-term interest bearing debt | 31,826 | ||
Long-term interest bearing debt - current portion | 7,650 | ||
Long-term interest bearing debt - non-current portion | 137,700 | ||
Liabilities | 177,176 | ||
ICBC Finance Leasing Co. Ltd Agreement | Variable Interest Entity, Primary Beneficiary | Golar Kelvin | |||
Variable Interest Entity [Line Items] | |||
Restricted cash | 16,942 | ||
Total assets | 16,942 | ||
Short-term interest bearing debt | 182,540 | ||
Long-term interest bearing debt - current portion | 0 | ||
Long-term interest bearing debt - non-current portion | 0 | ||
Liabilities | 182,540 | ||
ICBC Finance Leasing Co. Ltd Agreement | Variable Interest Entity, Primary Beneficiary | Golar Snow | |||
Variable Interest Entity [Line Items] | |||
Restricted cash | 8,648 | ||
Total assets | 8,648 | ||
Short-term interest bearing debt | 22,566 | ||
Long-term interest bearing debt - current portion | 8,000 | ||
Long-term interest bearing debt - non-current portion | 148,000 | ||
Liabilities | 178,566 | ||
ICBC Finance Leasing Co. Ltd Agreement | Variable Interest Entity, Primary Beneficiary | Golar Ice | |||
Variable Interest Entity [Line Items] | |||
Restricted cash | 2,728 | ||
Total assets | 2,728 | ||
Short-term interest bearing debt | 172,046 | ||
Long-term interest bearing debt - current portion | 0 | ||
Long-term interest bearing debt - non-current portion | 0 | ||
Liabilities | 172,046 | ||
ICBC Finance Leasing Co. Ltd Agreement | Variable Interest Entity, Primary Beneficiary | Disposal Group, Held-for-sale, Not Discontinued Operations | Golar Glacier | |||
Variable Interest Entity [Line Items] | |||
Restricted cash | 0 | ||
Short-term interest bearing debt | 0 | ||
ICBC Finance Leasing Co. Ltd Agreement | Variable Interest Entity, Primary Beneficiary | Disposal Group, Held-for-sale, Not Discontinued Operations | Golar Kelvin | |||
Variable Interest Entity [Line Items] | |||
Restricted cash | 0 | ||
Short-term interest bearing debt | 0 | ||
ICBC Finance Leasing Co. Ltd Agreement | Variable Interest Entity, Primary Beneficiary | Disposal Group, Held-for-sale, Not Discontinued Operations | Golar Snow | |||
Variable Interest Entity [Line Items] | |||
Restricted cash | 0 | ||
Short-term interest bearing debt | 0 | ||
ICBC Finance Leasing Co. Ltd Agreement | Variable Interest Entity, Primary Beneficiary | Disposal Group, Held-for-sale, Not Discontinued Operations | Golar Ice | |||
Variable Interest Entity [Line Items] | |||
Restricted cash | 0 | ||
Short-term interest bearing debt | 0 | ||
CMBL Lessor VIE | Variable Interest Entity, Primary Beneficiary | Golar Tundra | |||
Variable Interest Entity [Line Items] | |||
Restricted cash | 0 | ||
Total assets | 3,618 | ||
Short-term interest bearing debt | 0 | ||
Long-term interest bearing debt - current portion | 0 | ||
Long-term interest bearing debt - non-current portion | 0 | ||
Liabilities | 201,725 | ||
CMBL Lessor VIE | Variable Interest Entity, Primary Beneficiary | Disposal Group, Held-for-sale, Not Discontinued Operations | Golar Tundra | |||
Variable Interest Entity [Line Items] | |||
Restricted cash | 3,618 | ||
Short-term interest bearing debt | $ 201,725 |
DISPOSALS TO GOLAR PARTNERS (85
DISPOSALS TO GOLAR PARTNERS (Restated) - Narrative (Details) - Golar Partners - Retained Investment in Subsidiary - USD ($) $ in Thousands | 1 Months Ended | ||
Jan. 31, 2015 | Mar. 31, 2014 | Feb. 28, 2013 | |
Golar Eskimo | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash consideration received | $ 226,010 | ||
Carrying value of the net assets sold to Golar Partners | (123,604) | ||
Gain on disposal | 102,406 | ||
Cash consideration for vessel and charter | 390,000 | ||
Accumulated bank debt | 162,800 | ||
Purchase price adjustments | $ 1,200 | ||
Golar Igloo | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash consideration received | $ 156,001 | ||
Carrying value of the net assets sold to Golar Partners | (112,714) | ||
Gain on disposal | 43,287 | ||
Cash consideration for vessel and charter | 310,000 | ||
Accumulated bank debt | 161,300 | ||
Purchase price adjustments | $ 7,300 | ||
Golar Maria | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash consideration received | $ 127,900 | ||
Carrying value of the net assets sold to Golar Partners | (45,630) | ||
Gain on disposal | 82,270 | ||
Cash consideration for vessel and charter | 215,000 | ||
Accumulated bank debt | 89,500 | ||
Purchase price adjustments | 5,500 | ||
Interest rate swap liability assumed | $ 3,100 |
SEGMENTAL INFORMATION (Restat86
SEGMENTAL INFORMATION (Restated) (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | ||
Segment Reporting [Abstract] | ||||
Number of reportable segments | segment | 3 | |||
Segmental information: | ||||
Time and voyage charter revenues | $ 90,127 | $ 95,399 | $ 90,558 | |
Vessel and other management fees | [1] | 12,547 | 10,756 | 9,270 |
Vessel and voyage operating expenses | (125,389) | (76,910) | (58,009) | |
Administrative expenses | (33,526) | (19,267) | (22,952) | |
Impairment of long-term assets | (1,957) | (500) | (500) | |
Depreciation and amortization | (73,732) | (49,811) | (36,871) | |
Other operating loss | 0 | (6,387) | 0 | |
Other operating gains - LNG trade | 0 | 1,317 | 0 | |
Gain on disposals to Golar Partners (including amortization of deferred gain) | [1] | 102,406 | 43,287 | 82,270 |
Impairment of vessel held-for-sale | (1,032) | 0 | 0 | |
Loss on disposal of vessel held-for-sale | (5,824) | 0 | 0 | |
Operating (loss) income | (36,380) | (2,116) | 63,766 | |
Total other non-operating income (expense) | (27) | 272 | (2,482) | |
Net financial (expenses) income | (174,619) | (87,852) | 41,768 | |
Income taxes | 3,053 | 1,114 | 3,404 | |
Equity in net earnings (losses) of affiliates | 55,985 | 42,220 | 3,099 | |
Net (loss) income | (151,988) | (46,362) | 109,555 | |
Non-controlling interests | (19,158) | (1,655) | 0 | |
Net (loss) income attributable to Golar LNG Ltd | (171,146) | (48,017) | 109,555 | |
Total assets | 4,269,198 | 3,899,742 | 2,591,666 | |
Investment in affiliates | 541,565 | 746,263 | 766,024 | |
Capital expenditures | 677,349 | 1,516,546 | 734,155 | |
Vessel operations | ||||
Segmental information: | ||||
Time and voyage charter revenues | 90,127 | 95,399 | 90,558 | |
Vessel and other management fees | 12,547 | 10,756 | 9,270 | |
Vessel and voyage operating expenses | (125,389) | (76,910) | (58,009) | |
Administrative expenses | (28,657) | (17,468) | (22,816) | |
Impairment of long-term assets | (1,957) | (500) | (500) | |
Depreciation and amortization | (73,732) | (49,561) | (36,562) | |
Other operating loss | 0 | (6,387) | 0 | |
Other operating gains - LNG trade | 0 | 0 | 0 | |
Gain on disposals to Golar Partners (including amortization of deferred gain) | 102,406 | 43,287 | 82,270 | |
Impairment of vessel held-for-sale | (1,032) | 0 | 0 | |
Loss on disposal of vessel held-for-sale | (5,824) | 0 | 0 | |
Operating (loss) income | (31,511) | (1,384) | 64,211 | |
Total other non-operating income (expense) | (27) | (446) | (2,482) | |
Net financial (expenses) income | (174,619) | (87,600) | 41,768 | |
Income taxes | 3,053 | 1,114 | 3,404 | |
Equity in net earnings (losses) of affiliates | 55,985 | 42,220 | 3,099 | |
Net (loss) income | (147,119) | (46,096) | 110,000 | |
Non-controlling interests | (19,158) | (1,655) | 0 | |
Net (loss) income attributable to Golar LNG Ltd | (166,277) | (47,751) | 110,000 | |
Total assets | 3,398,394 | 3,538,287 | 2,591,398 | |
Investment in affiliates | 541,565 | 746,263 | 766,024 | |
Capital expenditures | 565,777 | 1,202,901 | 734,155 | |
LNG Trading | ||||
Segmental information: | ||||
Time and voyage charter revenues | 0 | 0 | 0 | |
Vessel and other management fees | 0 | 0 | 0 | |
Vessel and voyage operating expenses | 0 | 0 | 0 | |
Administrative expenses | 0 | (64) | (136) | |
Impairment of long-term assets | 0 | 0 | 0 | |
Depreciation and amortization | 0 | (250) | (309) | |
Other operating loss | 0 | 0 | 0 | |
Other operating gains - LNG trade | 0 | 1,317 | 0 | |
Gain on disposals to Golar Partners (including amortization of deferred gain) | 0 | 0 | 0 | |
Impairment of vessel held-for-sale | 0 | 0 | 0 | |
Loss on disposal of vessel held-for-sale | 0 | 0 | 0 | |
Operating (loss) income | 0 | 1,003 | (445) | |
Total other non-operating income (expense) | 718 | 0 | ||
Net financial (expenses) income | 0 | (252) | 0 | |
Income taxes | 0 | 0 | 0 | |
Equity in net earnings (losses) of affiliates | 0 | 0 | 0 | |
Net (loss) income | 0 | 1,469 | (445) | |
Non-controlling interests | 0 | 0 | 0 | |
Net (loss) income attributable to Golar LNG Ltd | 0 | 1,469 | (445) | |
Total assets | 0 | 1,335 | 268 | |
Investment in affiliates | 0 | 0 | 0 | |
Capital expenditures | 0 | 0 | 0 | |
FLNG | ||||
Segmental information: | ||||
Time and voyage charter revenues | 0 | 0 | ||
Vessel and other management fees | 0 | 0 | ||
Vessel and voyage operating expenses | 0 | 0 | ||
Administrative expenses | (4,869) | (1,735) | $ (7,700) | |
Impairment of long-term assets | 0 | 0 | ||
Depreciation and amortization | 0 | 0 | ||
Other operating loss | 0 | 0 | ||
Other operating gains - LNG trade | 0 | 0 | ||
Gain on disposals to Golar Partners (including amortization of deferred gain) | 0 | 0 | ||
Impairment of vessel held-for-sale | 0 | 0 | ||
Loss on disposal of vessel held-for-sale | 0 | 0 | ||
Operating (loss) income | (4,869) | (1,735) | ||
Total other non-operating income (expense) | 0 | 0 | ||
Net financial (expenses) income | 0 | 0 | ||
Income taxes | 0 | 0 | ||
Equity in net earnings (losses) of affiliates | 0 | 0 | ||
Net (loss) income | (4,869) | (1,735) | ||
Non-controlling interests | 0 | 0 | ||
Net (loss) income attributable to Golar LNG Ltd | (4,869) | (1,735) | ||
Total assets | 870,804 | 360,120 | ||
Investment in affiliates | 0 | 0 | ||
Capital expenditures | $ 111,572 | $ 313,645 | ||
[1] | This includes amounts arising from transactions with related parties (see note 31). |
SEGMENTAL INFORMATION (Restat87
SEGMENTAL INFORMATION (Restated) - Revenues from External Customers (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)charter | Dec. 31, 2014USD ($)charter | Dec. 31, 2013USD ($) | |
Segment Reporting [Abstract] | |||
Number of charterers during the year | charter | 3 | 3 | |
Benchmark percentage of revenue for major customer | 10.00% | 10.00% | 10.00% |
Nigeria LNG Ltd | Sales Revenue, net | Customer Concentration Risk | |||
Revenues from external customers: | |||
Concentration risk amount | $ 37,994 | $ 0 | $ 0 |
Concentration risk percentage | 42.00% | 0.00% | 0.00% |
Major commodity trading company | Sales Revenue, net | Customer Concentration Risk | |||
Revenues from external customers: | |||
Concentration risk amount | $ 16,167 | $ 15,761 | $ 0 |
Concentration risk percentage | 18.00% | 17.00% | 0.00% |
Major Japanese trading company | Sales Revenue, net | Customer Concentration Risk | |||
Revenues from external customers: | |||
Concentration risk amount | $ 0 | $ 55,975 | $ 47,744 |
Concentration risk percentage | 0.00% | 59.00% | 53.00% |
Gdf Suez Gas | Sales Revenue, net | Customer Concentration Risk | |||
Revenues from external customers: | |||
Concentration risk amount | $ 0 | $ 0 | $ 10,015 |
Concentration risk percentage | 0.00% | 0.00% | 11.00% |
Eni Spa | Sales Revenue, net | Customer Concentration Risk | |||
Revenues from external customers: | |||
Concentration risk amount | $ 0 | $ 0 | $ 8,912 |
Concentration risk percentage | 0.00% | 0.00% | 10.00% |
BG Group plc | Sales Revenue, net | Customer Concentration Risk | |||
Revenues from external customers: | |||
Concentration risk amount | $ 0 | $ 0 | $ 13,114 |
Concentration risk percentage | 0.00% | 0.00% | 14.00% |
SEGMENTAL INFORMATION (Restat88
SEGMENTAL INFORMATION (Restated) - Geographical Segment Data (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Geographical segment data: | |||
Revenues | $ 102,674 | $ 106,155 | $ 99,828 |
Kuwait | |||
Geographical segment data: | |||
Revenues | $ 0 | $ 4,182 | $ 0 |
IMPAIRMENT OF LONG-TERM ASSET89
IMPAIRMENT OF LONG-TERM ASSETS (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)vessel | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Impairment of long-term assets: | |||
Number of vessels | vessel | 1 | ||
Impairment of long-term assets | $ 1,957,000 | $ 500,000 | $ 500,000 |
Vessels, net | 2,336,144,000 | $ 1,648,888,000 | |
Golar Arctic | |||
Impairment of long-term assets: | |||
Impairment of long-term assets | 0 | ||
Market value | 115,000,000 | ||
Vessels, net | 149,600,000 | ||
Deficit | $ 34,600,000 |
OTHER FINANCIAL ITEMS, NET (Det
OTHER FINANCIAL ITEMS, NET (Details) | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)newbuild | Dec. 31, 2013USD ($) | Jul. 31, 2013USD ($) | |
Other financial items, net: | |||||
Impairment of loan | $ (15,010,000) | $ 0 | $ 0 | ||
Financing arrangement fees and other costs | (1,841,000) | (7,157,000) | (5,632,000) | ||
Amortization of deferred financing costs and debt guarantee | (3,082,000) | (2,459,000) | (1,120,000) | ||
Foreign exchange loss on operations | (2,126,000) | (1,200,000) | (1,583,000) | ||
Other | (25,000) | (295,000) | 0 | ||
Other financial items, net | (118,604,000) | (74,094,000) | 38,219,000 | ||
Current vessel market valuation | 125,000,000 | ||||
Repayment of short-term loan granted to third party | 400,000 | $ 0 | 2,469,000 | ||
Line of Credit | Secured debt | $1.125 billion newbuild facility | |||||
Other financial items, net: | |||||
Maximum borrowing capacity | 1,125,000,000 | $ 1,125,000,000 | |||
Number of newbuild vessels funded by debt facility | newbuild | 8 | ||||
PT Perusahaan Pelayaran Equinox | Loan Receivable, Bridge Loan Facility | Other Receivables, Prepaid Expenses and Accrued Income [Member] | |||||
Other financial items, net: | |||||
Face amount of note receivable | $ 80,000,000 | ||||
PT Perusahaan Pelayaran Equinox | Loans Receivable | |||||
Other financial items, net: | |||||
Note receivable, term | 10 years | ||||
Repayment of short-term loan granted to third party | 138,500,000 | ||||
PT Perusahaan Pelayaran Equinox | Loans Receivable | Other Noncurrent Assets | |||||
Other financial items, net: | |||||
Face amount of note receivable | $ 53,000,000 | ||||
PT Perusahaan Pelayaran Equinox | Notes Receivable | Other Receivables, Prepaid Expenses and Accrued Income [Member] | |||||
Other financial items, net: | |||||
Revolving credit facility, maximum available | $ 5,000,000 | ||||
Interest rate swap | |||||
Other financial items, net: | |||||
Mark-to-market adjustment on derivatives | (12,798,000) | $ (28,996,000) | 56,461,000 | ||
Interest rate swap cash settlements | (15,797,000) | (20,424,000) | (10,626,000) | ||
Equity | |||||
Other financial items, net: | |||||
Mark-to-market adjustment on derivatives | (67,925,000) | (13,657,000) | 0 | ||
Foreign exchange contract | |||||
Other financial items, net: | |||||
Mark-to-market adjustment on derivatives | $ 0 | $ 94,000 | $ 719,000 |
TAXATION (Details)
TAXATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Components of income tax expense: | |||
Current tax expense (credit) | $ 435 | $ 2,212 | $ (27) |
Amortization of tax benefit arising on intra-group transfers of long-term assets | (3,488) | (3,487) | (3,487) |
Total income tax credit | $ (3,053) | $ (1,114) | $ (3,404) |
Statutory tax rate | 0.00% | 0.00% | 0.00% |
Income taxes at statutory rate | $ 0 | $ 0 | $ 0 |
Effect of deferred tax benefit on intra-group transfers of long-term assets | (3,488) | (3,487) | (3,487) |
Effect of adjustments in respect of current tax in prior periods | (330) | 1,411 | (188) |
Effect of taxable income in various countries | 765 | 962 | 271 |
Deferred tax assets, gross and net | 260 | 260 | |
United Kingdom tax authority | |||
Components of income tax expense: | |||
Current tax expense (credit) | 435 | 2,212 | (27) |
Deferred tax expense | $ 0 | 161 | $ 110 |
Statutory tax rate | 20.00% | ||
Deferred tax assets, gross and net | $ 300 | $ 300 | |
Internal Revenue Service (IRS) | |||
Components of income tax expense: | |||
Minimum resident ownership percentage required for income tax exemption | 50.00% |
EARNINGS PER SHARE (Restated)92
EARNINGS PER SHARE (Restated) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Components of the numerator for the calculation of basic and diluted EPS: | |||
Net (loss) income attributable to Golar LNG Ltd stockholders - basic and diluted | $ (171,146) | $ (48,017) | $ 109,555 |
Components of the denominator for the calculation of basic and diluted EPS: | |||
Weighted average number of common shares outstanding | 93,357 | 87,013 | 80,530 |
Effect of dilutive share options (in shares) | 0 | 0 | 381 |
Effect of dilutive convertible bonds (in share) | 0 | 0 | 4,545 |
Common stock and common stock equivalents (in shares) | 93,357 | 87,013 | 85,456 |
Earnings per share, basic and diluted: | |||
Basic (USD per share) | $ (1.83) | $ (0.55) | $ 1.36 |
Diluted (USD per share) | $ (1.83) | $ (0.55) | $ 1.28 |
OPERATING LEASES (Details)
OPERATING LEASES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Future minimum payments under non-cancellable operating leases: | |||
2,016 | $ 27,786 | ||
2,017 | 23,238 | ||
2,018 | 770 | ||
2,019 | 599 | ||
2,020 | 50 | ||
2021 and thereafter | 0 | ||
Total minimum lease payments | 52,443 | ||
Total rental expense for operating leases | 42,800 | $ 600 | $ 700 |
Vessels leased to third parties | |||
Minimum contractual future revenues to be received: | |||
Cost | 416,900 | 15,200 | |
Accumulated depreciation | 471,500 | $ 35,500 | |
Time charters | |||
Minimum contractual future revenues to be received: | |||
2,016 | 12,260 | ||
2017 and thereafter | 12,852 | ||
Total | $ 25,112 |
INVESTMENTS IN AFFILIATES (Re94
INVESTMENTS IN AFFILIATES (Restated) - Ownership Percentage (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Equity method investments: | ||
Investments, ownership percentage | 100.00% | |
Golar Partners | ||
Equity method investments: | ||
Participation in equity method investment | 30.70% | 41.40% |
Investments, ownership percentage | 30.70% | 41.40% |
Percentage of IDRs | 100.00% | 100.00% |
The Cool Pool Limited (Pool Manager) | ||
Equity method investments: | ||
Participation in equity method investment | 33.00% | 0.00% |
Egyptian Company for Gas Services S.A.E (ECGS) | ||
Equity method investments: | ||
Participation in equity method investment | 50.00% | 50.00% |
Golar Wilhelmsen Management AS (Golar Wilhelmsen) | ||
Equity method investments: | ||
Participation in equity method investment | 100.00% | 60.00% |
INVESTMENTS IN AFFILIATES (Re95
INVESTMENTS IN AFFILIATES (Restated) - Carrying Amount (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Equity method investments: | |||
Investments in affiliates | $ 541,565 | $ 746,263 | $ 766,024 |
Golar Partners | |||
Equity method investments: | |||
Investments in affiliates | 536,090 | 739,744 | |
Egyptian Company for Gas Services S.A.E | |||
Equity method investments: | |||
Investments in affiliates | 5,475 | 5,942 | |
Golar Wilhelmsen Management AS | |||
Equity method investments: | |||
Investments in affiliates | $ 0 | $ 577 |
INVESTMENTS IN AFFILIATES (Re96
INVESTMENTS IN AFFILIATES (Restated) - Components (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Equity Method Investments and Joint Ventures [Abstract] | |||
Cost | $ 635,714 | $ 805,595 | |
Dividend | (179,079) | (126,281) | |
Equity in net earnings of other affiliates | 85,122 | 62,319 | |
Share of other comprehensive (loss) income in affiliate | (192) | 4,630 | |
Equity in net assets of affiliates | $ 541,565 | $ 746,263 | $ 766,024 |
INVESTMENTS IN AFFILIATES (Re97
INVESTMENTS IN AFFILIATES (Restated) - Narrative (Details) $ / shares in Units, $ in Thousands, shares in Millions | Dec. 31, 2015USD ($)vessel$ / sharesshares | Sep. 04, 2015 | Feb. 29, 2016USD ($) | Sep. 30, 2015 | Apr. 29, 2016$ / shares | Dec. 31, 2015USD ($)vesselshares | Dec. 31, 2014USD ($)vessel | Dec. 31, 2013USD ($) | Dec. 31, 2011USD ($) | Mar. 31, 2006$ / sharesshares |
Equity method investments acquired: | ||||||||||
Percentage of voting interest acquired | 50.00% | 50.00% | ||||||||
Investments, ownership percentage | 100.00% | 100.00% | ||||||||
Dividends received | $ 52,800 | $ 61,967 | $ 64,198 | |||||||
Egyptian Company for Gas Services S.A.E | ||||||||||
Equity method investments acquired: | ||||||||||
Common stock purchased (in shares) | shares | 0.5 | |||||||||
Common stock purchased, price per share (USD per share) | $ / shares | $ 1 | |||||||||
Percentage of voting interest acquired | 50.00% | 50.00% | 50.00% | |||||||
Investee capital share amount called | $ 7,500 | |||||||||
Cash paid to maintain equity interest | $ 3,750 | |||||||||
Ownership percentage, equity method investment | 50.00% | |||||||||
Proceeds from dividends | $ 700 | $ 600 | ||||||||
Golar Partners | ||||||||||
Equity method investments acquired: | ||||||||||
Investments, ownership percentage | 30.70% | 30.70% | 41.40% | |||||||
Golar Partners | ||||||||||
Equity method investments acquired: | ||||||||||
Percentage of IDRs | 100.00% | 100.00% | ||||||||
Investments | $ 536,100 | $ 536,100 | ||||||||
Ownership percentage, equity method investment | 30.70% | 30.70% | 41.40% | |||||||
Investments, ownership percentage | 30.70% | 30.70% | 41.40% | |||||||
Offered quote (in dollars per share) | $ / shares | $ 13.38 | |||||||||
Golar Wilhelmsen Management AS | ||||||||||
Equity method investments acquired: | ||||||||||
Remaining interest acquired | 40.00% | |||||||||
Ownership percentage, equity method investment | 100.00% | 100.00% | 60.00% | |||||||
Percent ownership | 100.00% | 40.00% | ||||||||
The Cool Pool Limited (Pool Manager) | ||||||||||
Equity method investments acquired: | ||||||||||
Ownership percentage, equity method investment | 33.00% | 33.00% | 0.00% | |||||||
Vessels and equipment | Golar Partners | ||||||||||
Equity method investments acquired: | ||||||||||
Number of vessels | vessel | 10 | 10 | 9 | |||||||
Vessels and equipment | The Cool Pool Limited (Pool Manager) | ||||||||||
Equity method investments acquired: | ||||||||||
Number of vessels | vessel | 14 | 14 | ||||||||
Number of vessels contributed | vessel | 8 | 8 | ||||||||
Vessels and equipment | The Cool Pool Limited (Pool Manager) | GasLog | ||||||||||
Equity method investments acquired: | ||||||||||
Number of vessels contributed | vessel | 3 | 3 | ||||||||
Vessels and equipment | The Cool Pool Limited (Pool Manager) | Dynagas | ||||||||||
Equity method investments acquired: | ||||||||||
Number of vessels contributed | vessel | 3 | 3 | ||||||||
Equity Method Investments | Golar Partners | ||||||||||
Equity method investments acquired: | ||||||||||
Units held (in shares) | shares | 15.9 | 15.9 | ||||||||
Percent of subordinated units held | 100.00% | 100.00% | ||||||||
Golar Partners | ||||||||||
Equity method investments acquired: | ||||||||||
Cost method investments, percentage of general partner interest | 2.00% | 2.00% | ||||||||
Percentage of IDRs | 100.00% | |||||||||
Subsequent event | Golar Partners | ||||||||||
Equity method investments acquired: | ||||||||||
Proceeds from dividends | $ 13,200 | |||||||||
Maximum | Subsequent event | Golar Partners | ||||||||||
Equity method investments acquired: | ||||||||||
Offered quote (in dollars per share) | $ / shares | $ 18.03 | |||||||||
Minimum | Subsequent event | Golar Partners | ||||||||||
Equity method investments acquired: | ||||||||||
Offered quote (in dollars per share) | $ / shares | $ 8.02 | |||||||||
Golar Partners | ||||||||||
Equity method investments acquired: | ||||||||||
Dividends received | $ 52,100 | $ 61,300 | $ 63,700 |
INVESTMENTS IN AFFILIATES (Re98
INVESTMENTS IN AFFILIATES (Restated) - Summarized Financial Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Golar Wilhelmsen | ||
Balance Sheet | ||
Current assets | $ 2,096 | |
Non-current assets | 5 | |
Current liabilities | 1,044 | |
Non-current liabilities | 0 | |
Non-controlling interest | 0 | |
Income statement | ||
Revenue | 6,732 | |
Net (loss) income | 479 | |
ECGS | ||
Balance Sheet | ||
Current assets | $ 35,042 | 37,159 |
Non-current assets | 3,200 | 3,224 |
Current liabilities | 27,272 | 28,711 |
Non-current liabilities | 20 | 20 |
Non-controlling interest | 0 | 0 |
Income statement | ||
Revenue | 72,294 | 78,946 |
Net (loss) income | 730 | 1,508 |
Golar Partners | ||
Balance Sheet | ||
Current assets | 131,851 | 141,556 |
Non-current assets | 2,113,487 | 1,814,646 |
Current liabilities | 266,012 | 277,874 |
Non-current liabilities | 1,382,811 | 1,076,589 |
Non-controlling interest | 66,765 | 67,618 |
Income statement | ||
Revenue | 434,687 | 396,026 |
Net (loss) income | 172,683 | $ 184,735 |
Pool Manager | ||
Balance Sheet | ||
Current assets | 4,901 | |
Non-current assets | 0 | |
Current liabilities | 216 | |
Non-current liabilities | 0 | |
Non-controlling interest | 0 | |
Income statement | ||
Revenue | 8,356 | |
Net (loss) income | $ 0 |
TRADE ACCOUNTS RECEIVABLE (Deta
TRADE ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Trade accounts receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Provision for doubtful accounts | $ 0 | $ 0 |
OTHER RECEIVABLES, PREPAID E100
OTHER RECEIVABLES, PREPAID EXPENSES AND ACCRUED INCOME (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | May 31, 2013 |
OTHER RECEIVABLES, PREPAID EXPENSES AND ACCRUED INCOME [Abstract] | |||
Prepaid expenses | $ 3,580 | $ 3,119 | |
Other receivables | 17,697 | 12,102 | |
Corporation tax receivable | 3,476 | 2,277 | |
Other receivables, prepaid expenses and accrued income | 24,753 | 17,498 | |
DCLAP claim | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans receivable, net | $ 6,400 | $ 8,100 | $ 12,000 |
NEWBUILDINGS (Details)
NEWBUILDINGS (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)newbuild | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Newbuildings: | |||
Newbuildings | $ 13,561 | $ 344,543 | |
Construction payable | 247,500 | ||
Total costs of newbuilds delivered | $ 374,300 | ||
FSRU | |||
Newbuildings: | |||
Number of vessels contracted for construction | newbuild | 1 | ||
LNG carrier | |||
Newbuildings: | |||
Number of newbuilds delivered | newbuild | 4 | ||
Purchase price installments | |||
Newbuildings: | |||
Newbuildings | $ 12,375 | 312,160 | |
Interest costs capitalized | |||
Newbuildings: | |||
Newbuildings | 1,139 | 17,806 | |
Other costs capitalized | |||
Newbuildings: | |||
Newbuildings | 47 | 14,577 | |
Newbuildings | |||
Newbuildings: | |||
Remaining commitments due to newbuilding contract | 235,125 | ||
Construction payable | 247,500 | ||
Newbuildings | |||
Newbuildings: | |||
Interest costs capitalized | $ 3,900 | $ 21,100 | $ 22,500 |
ASSET UNDER DEVELOPMENT (Detail
ASSET UNDER DEVELOPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Capitalized Costs, Oil and Gas Producing Activities, Net [Abstract] | ||
Asset under development | $ 501,022 | $ 345,205 |
Hilli Conversion to FLNGV | ||
Capitalized Costs, Oil and Gas Producing Activities, Net [Abstract] | ||
Purchase price installments | 495,518 | 344,386 |
Interest costs capitalized | 4,187 | 443 |
Other costs capitalized | 1,317 | 376 |
Asset under development | $ 501,022 | 345,205 |
Project completion period | 31 months | |
Carrying value of vessel reclassified into assets under development | $ 31,000 | |
Estimated cost to complete project | 1,300,000 | |
Interest costs capitalized during period | $ 3,700 | $ 400 |
VESSELS AND EQUIPMENT, NET (Det
VESSELS AND EQUIPMENT, NET (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)vesselbuilding | Dec. 31, 2014USD ($)vessel | Dec. 31, 2013USD ($) | |
Components of vessels and equipment, net: | |||
Cost | $ 2,572,740 | $ 1,813,170 | |
Accumulated depreciation | (236,596) | (164,282) | |
Net book value | 2,336,144 | 1,648,888 | |
Depreciation and amortization expense | $ 73,732 | $ 49,811 | $ 36,871 |
Vessels and equipment | |||
Components of vessels and equipment, net: | |||
Number of owned shipping vessels | vessel | 16 | 13 | |
Depreciation and amortization expense | $ 73,700 | $ 49,800 | $ 36,900 |
Vessels | |||
Components of vessels and equipment, net: | |||
Number of newbuilds delivered | building | 4 | ||
Amounts pledged as collateral | $ 2,543,000 | 1,997,700 | |
Drydocking | |||
Components of vessels and equipment, net: | |||
Cost | 43,100 | 43,900 | |
Accumulated depreciation | (18,200) | (11,300) | |
Office equipment | |||
Components of vessels and equipment, net: | |||
Cost | $ 2,800 | $ 1,400 |
HELD-FOR-SALE (Restated) (Detai
HELD-FOR-SALE (Restated) (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
Apr. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Long Lived Assets Held-for-sale [Line Items] | ||||||
Impairment of vessel held-for-sale | $ 1,032 | $ 0 | $ 0 | |||
Proceeds from sale of equipment | 18,987 | 0 | 0 | |||
Loss on disposal of vessel held-for-sale | (5,824) | 0 | $ 0 | |||
Total current assets | $ 280,746 | 267,034 | 280,746 | |||
Total current liabilities | (160,192) | (201,213) | (160,192) | |||
Golar Eskimo | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||
Long Lived Assets Held-for-sale [Line Items] | ||||||
Restricted cash | 0 | 3,618 | 0 | |||
Other receivables, prepaid expenses and accrued income | 196 | 217 | 196 | |||
Inventories | 266 | 572 | 266 | |||
Total current assets | 462 | 4,407 | 462 | |||
Vessels and equipment, net | 280,284 | 262,627 | 280,284 | |||
Total non-current assets | 280,284 | 262,627 | 280,284 | |||
Total assets | 280,746 | 267,034 | 280,746 | |||
Current portion of long-term debt | (13,074) | 0 | (13,074) | |||
Short-term debt, net of deferred finance charges | 0 | (199,300) | 0 | |||
Trade accounts payable | (419) | (844) | (419) | |||
Accrued expenses | (786) | (1,019) | (786) | |||
Amounts due to related parties | (366) | (50) | (366) | |||
Total current liabilities | (14,645) | (201,213) | (14,645) | |||
Long-term debt | (145,547) | 0 | (145,547) | |||
Total non-current liabilities | (145,547) | 0 | (145,547) | |||
Total liabilities | (160,192) | (201,213) | $ (160,192) | |||
Final payment amount | $ 199,300 | |||||
Vessels and equipment | LNG Abuja | ||||||
Long Lived Assets Held-for-sale [Line Items] | ||||||
Sale of vessel to third party | $ 19,000 | |||||
Impairment of vessel held-for-sale | $ 1,000 | |||||
Vessels and equipment | Golar Viking | ||||||
Long Lived Assets Held-for-sale [Line Items] | ||||||
Proceeds from sale of equipment | 135,000 | |||||
Loss on disposal of vessel held-for-sale | $ (5,800) | |||||
Nigeria LNG Ltd | Vessels and equipment | ||||||
Long Lived Assets Held-for-sale [Line Items] | ||||||
Payments to acquire equipment | $ 20,000 |
COST METHOD INVESTMENT (Rest105
COST METHOD INVESTMENT (Restated) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Cost method investments: | ||
Cost method investment | $ 7,347 | $ 7,347 |
OLT Offshore LNG Toscana S.p.A (OLT–O) | ||
Cost method investments: | ||
Cost method investment | $ 7,347 | $ 7,347 |
Cost method investment, ownership percentage | 2.70% |
RESTRICTED CASH AND SHORT-TE106
RESTRICTED CASH AND SHORT-TERM RECEIVABLES (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2015 | Nov. 30, 2015 | Dec. 31, 2014 | |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Total restricted cash | $ 408,563,000 | $ 408,563,000 | $ 74,587,000 | |
Less: Amounts included in short-term restricted cash and short-term receivables | 228,202,000 | 228,202,000 | 74,162,000 | |
Long-term restricted cash | 180,361,000 | 180,361,000 | 425,000 | |
Minimum consolidated cash balances | 50,000,000 | 50,000,000 | ||
Equity Swap | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Total restricted cash | 92,752,000 | 92,752,000 | 46,051,000 | |
Share Repurchase Forward Swap | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Total restricted cash | 92,800,000 | $ 92,800,000 | ||
Collateral required under share repurchase agreement, percentage of total purchase price | 20.00% | |||
ICBC Finance Leasing Co. Ltd Agreement | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Total restricted cash | 35,450,000 | $ 35,450,000 | 0 | |
Projects | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Total restricted cash | 0 | 0 | 3,111,000 | |
Office Lease | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Total restricted cash | 361,000 | 361,000 | 425,000 | |
Golar Viking facility | Bank Guarantee | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Total restricted cash | 0 | 0 | 25,000,000 | |
Hilli | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Letter of credit available to project partner | $ 400,000,000 | |||
Hilli | Bank Guarantee | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Total restricted cash | 280,000,000 | $ 280,000,000 | $ 305,000,000 | $ 0 |
Release of restricted cash | 25,000,000 | |||
Term of requirements | 1 year | |||
Cash collateral requirements after one year of full production | 112,500,000 | $ 112,500,000 | ||
Cash collateral requirements after second year of full production | $ 45,000,000 | $ 45,000,000 |
OTHER NON-CURRENT ASSETS (Detai
OTHER NON-CURRENT ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | 78 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | |
Components of other non-current assets: | ||||
Other long-term assets | $ 45,520 | $ 55,839 | $ 45,520 | |
Other non-current assets | 50,850 | 68,442 | 50,850 | |
Impairment of long-term assets | 1,957 | 500 | $ 500 | |
FSRU conversion parts | ||||
Components of other non-current assets: | ||||
Other long-term assets | 0 | 2,000 | 0 | |
FSRU conversion parts | ||||
Components of other non-current assets: | ||||
Impairment of long-term assets | 7,000 | |||
Hilli | Bank Guarantee | ||||
Components of other non-current assets: | ||||
Transfer from payments earmarked for Gimi to be utilized against Hilli conversion | 10,000 | |||
Golar Gimi | ||||
Components of other non-current assets: | ||||
Other long-term assets | 41,000 | 49,900 | 41,000 | |
Increase (decrease) in other noncurrent assets | 8,900 | |||
Interest rate swap | ||||
Components of other non-current assets: | ||||
Mark-to-market interest rate swap valuation | $ 5,330 | $ 12,603 | $ 5,330 |
ACCRUED EXPENSES - COMPONENTS O
ACCRUED EXPENSES - COMPONENTS OF ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Vessel operating and drydocking expenses | $ 5,003 | $ 13,443 |
Administrative expenses | 11,460 | 6,054 |
Interest expense | 36,870 | 11,627 |
Accrued expenses | $ 53,333 | $ 31,124 |
OTHER CURRENT LIABILITIES (R109
OTHER CURRENT LIABILITIES (Restated) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Mark-to-market swaps valuation: | |||
Deferred drydocking, operating cost and charterhire revenue | $ 1,327 | $ 9,514 | |
Provision in relation to Golar Viking claim | 0 | 13,848 | |
Dividends Payable | 40,466 | 0 | |
Other | 14,010 | 4,115 | |
Other current liabilities | 148,077 | 46,417 | |
Other operating loss | 0 | (6,387) | $ 0 |
Keppel | |||
Mark-to-market swaps valuation: | |||
Other | 9,000 | ||
Golar Partners | |||
Mark-to-market swaps valuation: | |||
Guarantees issued to Golar Partners (see note 31) | 6,096 | 2,246 | |
Interest rate swap | |||
Mark-to-market swaps valuation: | |||
Mark-to-market swaps valuation | 4,597 | 3,038 | |
Equity Swap | |||
Mark-to-market swaps valuation: | |||
Mark-to-market swaps valuation | $ 81,581 | $ 13,656 |
DEBT (Restated) - Schedule of L
DEBT (Restated) - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Components of long-term debt: | ||
Total long-term and short-term debt, net of deferred finance charges | $ 1,835,907 | $ 1,353,986 |
Less: current portion of long-term debt and short-term debt, net of deferred finance charges | (491,398) | (112,853) |
Long-term debt, net of deferred finance charges | 1,344,509 | 1,241,133 |
Repayments of long-term debt: | ||
2,016 | 501,618 | |
2,017 | 386,008 | |
2,018 | 94,968 | |
2,019 | 145,968 | |
2,020 | 124,126 | |
2021 and thereafter | 625,373 | |
Total | 1,878,061 | 1,380,787 |
Deferred finance charges | (42,154) | (26,801) |
Total debt, net of deferred finance charge | $ 1,835,907 | $ 1,353,986 |
DEBT (Restated) DEBT (Restated)
DEBT (Restated) DEBT (Restated) - Narrative (Details) | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Disclosure [Abstract] | ||
Weighted average interest rate | 3.50% | 3.35% |
DEBT (Restated) - Schedule of D
DEBT (Restated) - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Total debt | $ 1,878,061 | $ 1,380,787 |
Subtotal | 1,167,733 | 1,195,187 |
Deferred finance charges | (42,154) | (26,801) |
Total debt, net of deferred finance charge | 1,835,907 | 1,353,986 |
Secured Debt | Golar Arctic Facility | ||
Debt Instrument [Line Items] | ||
Total debt | 80,200 | 87,500 |
Secured Debt | Golar Viking Facility | ||
Debt Instrument [Line Items] | ||
Total debt | 0 | 82,000 |
Secured Debt | Golar Viking 2015 Facility | ||
Debt Instrument [Line Items] | ||
Total debt | 62,500 | 0 |
Secured Debt | GoFLNG Hilli Facility | ||
Debt Instrument [Line Items] | ||
Total debt | 50,000 | 0 |
Secured Debt | Golar Seal Facility | ||
Debt Instrument [Line Items] | ||
Total debt | 106,612 | 117,273 |
Secured Debt | Golar Celsius Facility | ||
Debt Instrument [Line Items] | ||
Total debt | 107,020 | 117,721 |
Secured Debt | Golar Crystal Facility | ||
Debt Instrument [Line Items] | ||
Total debt | 111,941 | 122,602 |
Secured Debt | Golar Penguin Facility | ||
Debt Instrument [Line Items] | ||
Total debt | 118,144 | 128,885 |
Secured Debt | Golar Bear Facility | ||
Debt Instrument [Line Items] | ||
Total debt | 118,524 | 129,299 |
Secured Debt | Golar Frost Facility | ||
Debt Instrument [Line Items] | ||
Total debt | 120,357 | 131,298 |
Secured Debt | Golar Glacier Facility | ||
Debt Instrument [Line Items] | ||
Total debt | 177,176 | 185,600 |
Secured Debt | Golar Snow Facility | ||
Debt Instrument [Line Items] | ||
Total debt | 178,566 | 0 |
Secured Debt | Golar Kelvin Facility | ||
Debt Instrument [Line Items] | ||
Total debt | 182,540 | 0 |
Secured Debt | Golar Ice Facility | ||
Debt Instrument [Line Items] | ||
Total debt | 172,046 | 0 |
Shareholder Notes Payable | Keppel Shareholder Loan | ||
Debt Instrument [Line Items] | ||
Total debt | 44,066 | 35,572 |
Shareholder Notes Payable | B&V Shareholder Loan | ||
Debt Instrument [Line Items] | ||
Total debt | 5,000 | 5,000 |
Convertible Debt | Convertible Bonds | ||
Debt Instrument [Line Items] | ||
Total debt | $ 243,369 | $ 238,037 |
DEBT (Restated) - Credit Facili
DEBT (Restated) - Credit Facilities Narrative (Details) $ in Thousands | Aug. 30, 2018USD ($) | Feb. 28, 2015USD ($) | Jul. 31, 2013USD ($)tranche | Jan. 31, 2008USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)vessel | Dec. 31, 2013USD ($) | Feb. 05, 2014USD ($) | Aug. 31, 2007USD ($) | Jan. 31, 2005USD ($) |
Debt Instrument [Line Items] | ||||||||||
Repayments of debt | $ 215,363 | $ 239,903 | $ 9,400 | |||||||
Secured Debt | Golar Arctic Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 120,000 | $ 87,500 | ||||||||
Description of variable rate basis | LIBOR | |||||||||
Basis spread on variable rate | 0.93% | 2.25% | ||||||||
Debt instrument, maturity term | 7 years | 5 years | ||||||||
Final payment amount | $ 86,300 | $ 52,800 | ||||||||
Secured Debt | Golar Viking Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 120,000 | |||||||||
Description of variable rate basis | LIBOR | |||||||||
Basis spread on variable rate | 0.70% | |||||||||
Debt instrument, maturity term | 10 years | |||||||||
Final payment amount | $ 71,000 | |||||||||
Current borrowing capacity | $ 120,000 | |||||||||
Repayments of debt | $ 82,000 | |||||||||
Secured Debt | Golar Viking 2015 Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 62,500 | |||||||||
Basis spread on variable rate | 2.50% | |||||||||
Debt instrument, maturity term | 5 years | |||||||||
Final payment amount | $ 37,800 | |||||||||
Secured Debt | GoFLNG Hilli Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 700,000 | |||||||||
Percentage of initial project budget | 60.00% | |||||||||
Interest rate | 6.25% | |||||||||
Balance outstanding under pre-delivery facility | $ 50,000 | |||||||||
Secured Debt | GoFLNG Hilli Facility | Scenario, Forecast | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Purchase price | $ 1,200,000 | |||||||||
Purchase price, net of percentage | 20.00% | |||||||||
Sale and leaseback term | 10 years | |||||||||
Secured Debt | Golar Igloo Facility | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 161,300 | |||||||||
Secured Debt | $1.125 billion newbuild facility | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 1,125,000 | $ 1,125,000 | ||||||||
Description of variable rate basis | LIBOR | |||||||||
Final payment amount | $ 131,000 | |||||||||
Number of vessels | vessel | 8 | |||||||||
Number of tranches | tranche | 3 | |||||||||
Secured Debt | $449 million newbuild facility | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 449,000 | |||||||||
Debt instrument, maturity term | 12 years | |||||||||
Percentage guaranteed | 95.00% |
DEBT (Restated) - Convertible B
DEBT (Restated) - Convertible Bonds Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | |||
Mar. 31, 2012 | Dec. 31, 2015 | Dec. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||||
Book value of vessels secured against long-term loans | $ 2,543,012 | $ 1,997,657 | ||
Declared dividend per share (in dollars per share) | $ 1.40 | $ 1.80 | ||
Minimum percentage for conversion | 90.00% | |||
Number of shares issuable if bonds are converted | 5,456,132 | |||
Convertible bonds | Equity Method Investments | ||||
Debt Instrument [Line Items] | ||||
Book value of vessels secured against long-term loans | $ 13,000 | |||
Convertible debt | Convertible bonds | ||||
Debt Instrument [Line Items] | ||||
Proceeds from issuance of convertible bonds | $ 250,000 | |||
Convertible debt | 221,900 | |||
Carrying amount of equity component | $ 25,000 | |||
Percentage of principal amount convertible | 100.00% | |||
Coupon rate | 3.75% | |||
Debt instrument conversion price (in dollars per share) | $ 55 | $ 45.82 | $ 48.40 |
DEBT (Restated) - Shareholder L
DEBT (Restated) - Shareholder Loans Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | |||
Nov. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||||
Long-term debt | $ 1,835,907 | $ 1,353,986 | ||
KSI Shareholder Loan | ||||
Debt Instrument [Line Items] | ||||
Balloon payment, period after final acceptance date | 120 months | |||
Black and Veatch Shareholder Loan | ||||
Debt Instrument [Line Items] | ||||
Balloon payment, period after final acceptance date | 120 months | |||
Shareholder Notes Payable | KSI Shareholder Loan | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 44,100 | |||
Interest rate | 6.00% | |||
Periodic payment, percentage of value of loan | 2.50% | |||
Frequency of periodic payments | 6 months | |||
Periodic payment commencement, period after final acceptance date | 12 months | |||
Shareholder Notes Payable | September 2014 - KSI Shareholder Loan | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 21,700 | |||
Shareholder Notes Payable | November 2014 - KSI Shareholder Loan | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 9,000 | |||
Shareholder Notes Payable | Black and Veatch Shareholder Loan | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 5,000 | |||
Interest rate | 6.00% | |||
Periodic payment, percentage of value of loan | 2.50% | |||
Frequency of periodic payments | 6 months | |||
Periodic payment commencement, period after final acceptance date | 12 months | |||
Golar GHK Lessors Limited | Keppel Shipyard Limited | ||||
Debt Instrument [Line Items] | ||||
Percentage ownership of subsidiary sold | 10.00% | |||
Consideration received on sale of subsidiary ownership interest | $ 21,700 | |||
Golar GHK Lessors Limited | Black and Veatch | ||||
Debt Instrument [Line Items] | ||||
Consideration received on sale of subsidiary ownership interest | $ 5,000 | |||
Number of subsidiary shares sold in transaction | 11 |
DEBT (Restated) - Schedule of T
DEBT (Restated) - Schedule of Tranches (Details) - Line of Credit - Secured Debt - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Jul. 31, 2013 | |
$449 million newbuild facility | ||
Debt Instrument [Line Items] | ||
Amount | $ 449 | |
Proportion of facility | 40.00% | |
Term of loan from date of drawdown | 12 years | |
Repayment terms | Six-monthly installments | |
$450 million newbuild facility | ||
Debt Instrument [Line Items] | ||
Amount | $ 450 | |
Proportion of facility | 40.00% | |
Term of loan from date of drawdown | 12 years | |
Repayment terms | Six-monthly installments | |
$226 million newbuild facility | ||
Debt Instrument [Line Items] | ||
Amount | $ 226 | |
Proportion of facility | 20.00% | |
Term of loan from date of drawdown | 5 years | |
Repayment terms | Six-monthly installments, unpaid balance to be refinanced after 5 years |
DEBT (Restated) - Schedule o117
DEBT (Restated) - Schedule of Line of Credit Facilities (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||
Mar. 31, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Mar. 31, 2016 | Jan. 31, 2015 | Dec. 22, 2014 | Oct. 16, 2014 | Sep. 18, 2014 | May 09, 2014 | Feb. 05, 2014 | Oct. 28, 2013 | Oct. 01, 2013 | Jul. 31, 2013 | |
Golar Eskimo | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Consideration for the sale | $ 388.8 | ||||||||||||||||
Line of Credit | Secured Debt | Golar Seal Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Maximum borrowing capacity | $ 133.2 | ||||||||||||||||
Proceeds from lines of credit | $ 127.9 | ||||||||||||||||
Line of Credit | Secured Debt | Golar Celsius Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Maximum borrowing capacity | $ 133.2 | ||||||||||||||||
Proceeds from lines of credit | $ 128.4 | ||||||||||||||||
Line of Credit | Secured Debt | Golar Crystal Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Maximum borrowing capacity | $ 133.2 | ||||||||||||||||
Proceeds from lines of credit | $ 127.9 | ||||||||||||||||
Line of Credit | Secured Debt | Golar Penguin Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Maximum borrowing capacity | $ 133.2 | ||||||||||||||||
Proceeds from lines of credit | $ 128.9 | ||||||||||||||||
Line of Credit | Secured Debt | Golar Bear Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Maximum borrowing capacity | $ 133.2 | ||||||||||||||||
Proceeds from lines of credit | $ 129.3 | ||||||||||||||||
Line of Credit | Secured Debt | Golar Frost Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Maximum borrowing capacity | $ 134.8 | ||||||||||||||||
Proceeds from lines of credit | $ 131.3 | ||||||||||||||||
Line of Credit | Secured Debt | Golar Igloo Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Maximum borrowing capacity | $ 161.3 | ||||||||||||||||
Proceeds from lines of credit | $ 161.3 | $ 161.3 | |||||||||||||||
Line of Credit | Secured Debt | Golar Eskimo Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Maximum borrowing capacity | $ 162.8 | ||||||||||||||||
Proceeds from lines of credit | $ 162.8 | ||||||||||||||||
Line of Credit | Secured Debt | $1.125 billion newbuild facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Maximum borrowing capacity | $ 1,125 | $ 1,125 | |||||||||||||||
Proceeds from lines of credit | $ 1,098 | ||||||||||||||||
Subsequent event | Line of Credit | Secured Debt | Golar Seal Facility | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Excess cash provided to liquidity | $ 50 |
DEBT (Restated) - ICBC VIE Loan
DEBT (Restated) - ICBC VIE Loans Narrative (Details) - USD ($) | 1 Months Ended | ||||
Jan. 31, 2015 | Oct. 31, 2014 | Dec. 31, 2015 | Feb. 28, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||||
Total debt | $ 1,878,061,000 | $ 1,380,787,000 | |||
Golar Glacier Facility | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Total debt | 177,176,000 | 185,600,000 | |||
Golar Snow Facility | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Total debt | 178,566,000 | 0 | |||
Golar Kelvin Facility | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Total debt | 182,540,000 | 0 | |||
Golar Ice Facility | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 172,046,000 | $ 0 | |||
Variable Interest Entity, Primary Beneficiary | Hai Jiao 1401 Limited | |||||
Debt Instrument [Line Items] | |||||
Maturity period of debt | 10 years | ||||
Variable Interest Entity, Primary Beneficiary | Hai Jiao 1401 Limited | Golar Glacier Facility | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 184,800,000 | ||||
Variable Interest Entity, Primary Beneficiary | Hai Jiao 1401 Limited | Golar Glacier Facility | Glacier Senior Facility | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Total debt | 153,000,000 | ||||
Variable Interest Entity, Primary Beneficiary | Hai Jiao 1401 Limited | Golar Glacier Facility | Golar Glacier Junior Facility | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 31,800,000 | ||||
Interest rate | 6.00% | ||||
Variable Interest Entity, Primary Beneficiary | Hai Jiao 1402 Limited | Golar Snow Facility | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 182,600,000 | ||||
Variable Interest Entity, Primary Beneficiary | Hai Jiao 1402 Limited | Golar Snow Facility | Junior Subordinated Debt | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 6.00% | ||||
Debt instrument, face amount | $ 22,600,000 | ||||
Variable Interest Entity, Primary Beneficiary | Hai Jiao 1402 Limited | Golar Snow Facility | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 160,000,000 | ||||
Senior loan facility term | 10 years | ||||
Variable Interest Entity, Primary Beneficiary | Hai Jiao 1405 Limited | Golar Kelvin Facility | Junior Subordinated Debt | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 6.00% | ||||
Debt instrument, face amount | $ 182,500,000 | ||||
Variable Interest Entity, Primary Beneficiary | Hai Jiao 1406 Limited | Golar Ice Facility | Junior Subordinated Debt | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 3.00% | ||||
Debt instrument, face amount | $ 172,000,000 |
DEBT (Restated) - Debt Restrict
DEBT (Restated) - Debt Restrictions Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Jul. 31, 2013 |
Debt Disclosure [Abstract] | ||
Restrictive covenants, minimum amount of cash and cash equivalents | $ 50 | |
Line of Credit | Secured debt | $1.125 billion newbuild facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 1,125 | $ 1,125 |
OTHER LONG-TERM LIABILITIES 120
OTHER LONG-TERM LIABILITIES (Restated) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Other long-term liabilities: | ||
Pension obligations | $ 36,279 | $ 38,670 |
Guarantees issued to Golar Partners | 16,493 | 19,271 |
Other | 1,308 | 1,849 |
Other long-term liabilities | $ 54,080 | $ 59,790 |
PENSIONS (Details)
PENSIONS (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)Defined_Benefit_Plan | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Defined contribution scheme: | |||
Defined contribution scheme, charge to net income | $ 200 | $ 900 | $ 500 |
Pensions | |||
Defined benefit schemes: | |||
Number of defined benefit schemes | Defined_Benefit_Plan | 2 | ||
Accumulated other comprehensive income, net actuarial loss | $ 12,400 | 15,251 | |
Other comprehensive income, tax on actuarial loss | $ 0 | $ 200 | $ 100 |
PENSIONS - Schedule of total co
PENSIONS - Schedule of total contributions to defined contribution scheme (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Employers' contributions | $ 1,035 | $ 684 | $ 533 |
PENSIONS - Net Periodic Benefit
PENSIONS - Net Periodic Benefit Costs (Details) - Pensions - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Components of net periodic benefit cost: | |||
Service cost | $ 379 | $ 369 | $ 468 |
Interest cost | 2,042 | 2,359 | 2,159 |
Expected return on plan assets | (946) | (984) | (918) |
Recognized actuarial loss | 1,195 | 998 | 1,415 |
Net periodic benefit cost | 2,670 | $ 2,742 | $ 3,124 |
Estimated net loss for defined benefit pension plans to be amortized from accumulated other comprehensive income into net periodic benefit cost in next fiscal year | $ 1,100 |
PENSIONS - Reconciliation of Be
PENSIONS - Reconciliation of Benefit Obligation (Details) - Pensions - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of benefit obligation: | |||
Benefit obligation at January 1 | $ 53,166 | $ 50,564 | |
Service cost | 379 | 369 | $ 468 |
Interest cost | 2,042 | 2,359 | 2,159 |
Actuarial (gain) loss | (2,547) | 3,700 | |
Foreign currency exchange rate changes | (509) | (686) | |
Benefit payments | (3,058) | (3,140) | |
Benefit obligation at December 31 | 49,473 | 53,166 | $ 50,564 |
Accumulated benefit obligation | $ 48,500 | $ 51,800 |
PENSIONS - Reconciliation of Fa
PENSIONS - Reconciliation of Fair Value of Plan Assets (Details) - Pensions - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of fair value of plan assets: | ||
Fair value of plan assets at January 1 | $ 14,496 | $ 14,919 |
Actual return on plan assets | (155) | 896 |
Employer contributions | 2,411 | 2,459 |
Foreign currency exchange rate changes | (500) | (638) |
Benefit payments | (3,058) | (3,140) |
Fair value of plan assets at December 31 | 13,194 | 14,496 |
Employer contributions and benefit payment amounts paid from employer assets | 2,400 | 2,500 |
Equity securities | ||
Reconciliation of fair value of plan assets: | ||
Fair value of plan assets at January 1 | 10,032 | |
Fair value of plan assets at December 31 | 9,620 | 10,032 |
Debt securities | ||
Reconciliation of fair value of plan assets: | ||
Fair value of plan assets at January 1 | 4,004 | |
Fair value of plan assets at December 31 | 3,032 | 4,004 |
Cash | ||
Reconciliation of fair value of plan assets: | ||
Fair value of plan assets at January 1 | 460 | |
Fair value of plan assets at December 31 | $ 542 | $ 460 |
PENSIONS - Reconciliation of Fu
PENSIONS - Reconciliation of Funded Status (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Pensions | |||
Reconciliation of funded status: | |||
Projected benefit obligation | $ (49,473) | $ (53,166) | $ (50,564) |
Fair value of plan assets | 13,194 | 14,496 | $ 14,919 |
Funded status at end of year | (36,279) | (38,670) | |
UK Scheme | |||
Reconciliation of funded status: | |||
Projected benefit obligation | (10,145) | (11,163) | |
Fair value of plan assets | 10,277 | 10,383 | |
Funded status at end of year | 132 | (780) | |
Marine Scheme | |||
Reconciliation of funded status: | |||
Projected benefit obligation | (39,328) | (42,003) | |
Fair value of plan assets | 2,917 | 4,113 | |
Funded status at end of year | $ (36,411) | $ (37,890) |
PENSIONS - Asset Allocation (De
PENSIONS - Asset Allocation (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Marine Scheme | |||
Pensions: | |||
Target allocation | 100.00% | 100.00% | |
Marine Scheme | Equity | |||
Pensions: | |||
Target allocation, minimum | 30.00% | 30.00% | |
Target allocation, maximum | 65.00% | 65.00% | |
Marine Scheme | Bonds | |||
Pensions: | |||
Target allocation, minimum | 10.00% | 10.00% | |
Target allocation, maximum | 50.00% | 50.00% | |
Marine Scheme | Other | |||
Pensions: | |||
Target allocation, minimum | 20.00% | 20.00% | |
Target allocation, maximum | 40.00% | 40.00% | |
UK Scheme | |||
Pensions: | |||
Target allocation | 100.00% | 100.00% | |
UK Scheme | Equity | |||
Pensions: | |||
Target allocation | 75.70% | 69.00% | |
UK Scheme | Bonds | |||
Pensions: | |||
Target allocation | 24.30% | 31.00% | |
Scenario, Forecast | Marine Scheme | |||
Pensions: | |||
Target allocation | 100.00% | ||
Scenario, Forecast | Marine Scheme | Equity | |||
Pensions: | |||
Target allocation, minimum | 30.00% | ||
Target allocation, maximum | 65.00% | ||
Scenario, Forecast | Marine Scheme | Bonds | |||
Pensions: | |||
Target allocation, minimum | 10.00% | ||
Target allocation, maximum | 50.00% | ||
Scenario, Forecast | Marine Scheme | Other | |||
Pensions: | |||
Target allocation, minimum | 20.00% | ||
Target allocation, maximum | 40.00% | ||
Scenario, Forecast | UK Scheme | |||
Pensions: | |||
Target allocation | 100.00% | ||
Scenario, Forecast | UK Scheme | Equity | |||
Pensions: | |||
Target allocation | 75.00% | ||
Scenario, Forecast | UK Scheme | Bonds | |||
Pensions: | |||
Target allocation | 25.00% |
PENSIONS - Employer Contributio
PENSIONS - Employer Contributions and Payments (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
UK Scheme | |
Pensions: | |
Employer contributions | $ 592 |
Estimated future benefit payments: | |
2,016 | 444 |
2,017 | 296 |
2,018 | 444 |
2,019 | 296 |
2,020 | 370 |
2021 - 2025 | 2,590 |
Marine Scheme | |
Pensions: | |
Employer contributions | 1,800 |
Estimated future benefit payments: | |
2,016 | 3,000 |
2,017 | 3,000 |
2,018 | 3,000 |
2,019 | 3,000 |
2,020 | 3,000 |
2021 - 2025 | $ 15,000 |
PENSIONS - Assumptions Used (De
PENSIONS - Assumptions Used (Details) - Pensions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Weighted average assumptions used in calculating benefit obligation: | ||
Discount rate | 4.34% | 3.95% |
Rate of compensation increase | 2.07% | 2.21% |
Weighted average assumptions used in calculating net periodic benefit cost: | ||
Discount rate | 3.95% | 4.60% |
Expected return on plan assets | 6.75% | 6.75% |
Rate of compensation increase | 2.21% | 2.71% |
SHARE CAPITAL AND SHARE OPTI130
SHARE CAPITAL AND SHARE OPTIONS - Share Capital (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 30, 2014 | Jun. 30, 2014 | Nov. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Share capital: | ||||||
Common stock, value, authorized | $ 150,000 | $ 150,000 | ||||
Common stock, value, issued | $ 93,547 | $ 93,415 | ||||
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 | ||||
Common shares, par value (in dollars per share) | $ 1 | $ 1 | $ 1 | |||
Common shares, shares issued (in shares) | 93,546,663 | 93,414,672 | 80,579,295 | |||
Common shares, shares outstanding (in shares) | 93,546,663 | 93,414,672 | 80,579,295 | |||
Shares issued upon exercise of share options (in shares) | 132,000 | 185,000 | 76,000 | |||
Net proceeds for shares issued | $ 660,900 | $ 0 | $ 660,947 | $ 0 | ||
Percent of stock outstanding | 5.00% | |||||
Repurchase period | 2 years | |||||
Remaining amount in share repurchase program (in shares) | 300,000 | |||||
Purchase of treasury shares | $ 12,269 | $ 0 | $ 0 | |||
Common Stock | ||||||
Share capital: | ||||||
Common shares, par value (in dollars per share) | $ 1 | |||||
Shares issued upon exercise of share options (in shares) | 100,000 | 200,000 | ||||
Shares issued in offering (in shares) | 12,650,000 | |||||
Common Stock | Underwriter's Option | ||||||
Share capital: | ||||||
Shares issued in offering (in shares) | 4,173,913 | 1,650,000 | ||||
Common Stock | Secondary Offering [Member] | ||||||
Share capital: | ||||||
Shares issued in offering (in shares) | 32,000,000 | |||||
Sale of common units price per share (USD per share) | $ 58.50 | |||||
World Shipholding | ||||||
Share capital: | ||||||
Percentage shareholders' ownership before transaction | 36.20% | 0.00% | ||||
Percentage shareholders' ownership after transaction | 1.90% | |||||
Equity Swap | ||||||
Share capital: | ||||||
Shares acquired by counterparty (in shares) | 3,200,000 | |||||
Shares acquired by counterparty, per share price (in dollars per share) | $ 41.10 |
SHARE CAPITAL AND SHARE OPTI131
SHARE CAPITAL AND SHARE OPTIONS - Share Options (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Feb. 28, 2002 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share options: | ||||||||
Options, outstanding (in shares) | 2,106,000 | 498,000 | 581,000 | 581,000 | 2,195,000 | 2,106,000 | 498,000 | |
Weighted average assumptions used: | ||||||||
Expected dividend yield | 0.00% | |||||||
Outstanding: | ||||||||
Options outstanding, beginning of year (in shares) | 2,106,000 | 498,000 | 581,000 | |||||
Options outstanding, granted in period (in shares) | 906,000 | 1,793,000 | ||||||
Options outstanding, exercises in period (in shares) | (132,000) | (185,000) | (76,000) | |||||
Options outstanding, forfeitures in period (in shares) | (685,000) | (7,000) | ||||||
Option outstanding, end of year (in shares) | 2,195,000 | 2,106,000 | 498,000 | 581,000 | ||||
Weighted average exercise price: | ||||||||
Weighted average exercise price, options, outstanding, beginning of year (USD per share) | $ 49.75 | $ 6.36 | $ 7.86 | |||||
Weighted average exercise price, options, grants in period (USD per share) | 56.63 | 58.26 | ||||||
Weighted average exercise price, options, exercises in period (USD per share) | 1.70 | 7.20 | 8.01 | |||||
Weighted average exercise price, options, forfeitures in period (USD per share) | 56.75 | 6.58 | ||||||
Weighted average exercise price, options, outstanding, end of year (USD per share) | $ 52.02 | $ 49.75 | $ 6.36 | $ 7.86 | ||||
Weighted average remaining contractual term, options, outstanding (in years) | 3 years 10 months 25 days | 4 years 4 months 26 days | 3 months 19 days | 9 months 18 days | ||||
Options exercisable, outstanding (in shares) | 190,000 | 317,000 | 419,000 | |||||
Options exercisable, weighted average exercise price (USD per share) | $ 3.97 | $ 4.09 | $ 6.50 | |||||
Options exercisable, weighted average remaining contractual term (in years) | 10 months 13 days | 1 year 10 months | 1 month 5 days | |||||
Intrinsic value of share options exercised | $ 0.4 | $ 7.8 | $ 2.2 | |||||
Intrinsic value of share options outstanding and exercisable | $ 0 | $ 0 | ||||||
Fair value of share options vested | 0.1 | 2.1 | 3.8 | |||||
Compensation cost | $ 3.7 | $ 1.6 | $ 0.5 | |||||
Golar Scheme | ||||||||
Share options: | ||||||||
Options, outstanding (in shares) | 2,100,000 | 500,000 | 500,000 | 2,200,000 | 2,100,000 | 500,000 | ||
Outstanding: | ||||||||
Options outstanding, beginning of year (in shares) | 2,100,000 | 500,000 | ||||||
Option outstanding, end of year (in shares) | 2,200,000 | 2,100,000 | 500,000 | |||||
Employee Stock Options | ||||||||
Weighted average assumptions used: | ||||||||
Risk free interest rate | 1.80% | 1.80% | 2.00% | |||||
Expected volatility of common stock | 53.10% | 53.60% | 56.90% | |||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | |||||
Expected life of options (in years) | 3 years | 2 years 11 months | 2 years 7 months 6 days | |||||
Outstanding: | ||||||||
Options outstanding, granted in period (in shares) | 900,000 | 1,800,000 | ||||||
Weighted average exercise price: | ||||||||
Total unrecognized compensation cost | $ 31 | $ 28 | ||||||
Weighted average period of recognition for unrecognized compensation cost (in years) | 3 years 11 months | |||||||
Employee Stock Options | Golar Scheme | ||||||||
Share options: | ||||||||
Award term until expiration | 5 years | |||||||
Number of shares authorized for grant | 0 | |||||||
Employee Stock Options | Golar Scheme | Minimum | ||||||||
Share options: | ||||||||
Award vesting period (in years) | 3 years | |||||||
Employee Stock Options | Golar Scheme | Maximum | ||||||||
Share options: | ||||||||
Award vesting period (in years) | 4 years |
ACCUMULATED OTHER COMPREHENS132
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Restated) - Schedules of Accumulate Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net (loss) gain on qualifying cash flow hedging instruments, including share of affiliate | $ (192) | $ 8,672 | $ 2,003 |
Losses associated with pensions, net of tax recoveries of $nil (2014: $0.2 million) | (12,400) | (15,251) | (12,731) |
Losses associated with pensions, tax recoveries | 0 | 200 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance at beginning of the period | 2,237,422 | 1,771,727 | 1,755,947 |
Other comprehensive (loss) income before reclassification | (1,971) | 914 | 14,085 |
Amount reclassified from accumulated other comprehensive income | 382 | 3,235 | 8 |
Net current-period other comprehensive income | (1,589) | 4,149 | 14,093 |
Transfer of additional paid in capital | 1,579 | ||
Balance at end of the period | 1,916,179 | 2,237,422 | 1,771,727 |
Pension and post retirement benefit plan adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance at beginning of the period | (15,251) | (12,731) | (17,809) |
Other comprehensive (loss) income before reclassification | 2,851 | (2,520) | 5,078 |
Amount reclassified from accumulated other comprehensive income | 0 | 0 | 0 |
Net current-period other comprehensive income | 2,851 | (2,520) | 5,078 |
Transfer of additional paid in capital | 0 | ||
Balance at end of the period | (12,400) | (15,251) | (12,731) |
Gains (losses) on cash flow hedges | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance at beginning of the period | 4,042 | (2,676) | (6,832) |
Other comprehensive (loss) income before reclassification | 0 | 3,483 | 4,148 |
Amount reclassified from accumulated other comprehensive income | 382 | 3,235 | 8 |
Net current-period other comprehensive income | 382 | 6,718 | 4,156 |
Transfer of additional paid in capital | (4,424) | ||
Balance at end of the period | 0 | 4,042 | (2,676) |
Share of affiliates comprehensive income | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance at beginning of the period | 4,630 | 4,679 | (180) |
Other comprehensive (loss) income before reclassification | (4,822) | (49) | 4,859 |
Amount reclassified from accumulated other comprehensive income | 0 | 0 | 0 |
Net current-period other comprehensive income | (4,822) | (49) | 4,859 |
Transfer of additional paid in capital | 0 | ||
Balance at end of the period | (192) | 4,630 | 4,679 |
Total accumulated comprehensive (loss) income | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance at beginning of the period | (6,579) | (10,728) | (24,821) |
Transfer of additional paid in capital | (4,424) | ||
Balance at end of the period | $ (12,592) | $ (6,579) | $ (10,728) |
ACCUMULATED OTHER COMPREHENS133
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Restated) - Reclassification from Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other financial items, net | $ 118,604 | $ 74,094 | $ (38,219) | |
Gain on sale of Golar Maria | [1] | (102,406) | (43,287) | (82,270) |
Amount reclassified from accumulated other comprehensive income | 382 | 3,235 | 8 | |
Gains (losses) on cash flow hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amount reclassified from accumulated other comprehensive income | 382 | 3,235 | 8 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amount reclassified from accumulated other comprehensive income | 382 | 3,235 | 8 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (losses) on cash flow hedges | Currency swap | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other financial items, net | 0 | 0 | (718) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (losses) on cash flow hedges | Interest rate swap | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other financial items, net | 382 | 3,235 | (1,644) | |
Gain on sale of Golar Maria | $ 0 | $ 0 | $ 2,370 | |
[1] | This includes amounts arising from transactions with related parties (see note 31). |
FINANCIAL INSTRUMENTS (Resta134
FINANCIAL INSTRUMENTS (Restated) - Interest Rate Risk Management (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivatives designated as hedging instruments location: | |||
Net (loss) gain on qualifying cash flow hedging instruments, including share of affiliate | $ (192) | $ 8,672 | $ 2,003 |
Accumulated other comprehensive (loss) gain | $ 12,592 | 6,579 | 10,728 |
Interest rate swap | Cash flow hedging | |||
Mark-to-market swaps valuation: | |||
Notional value | 100,900 | ||
Equity Swap | |||
Derivatives designated as hedging instruments location: | |||
Shares acquired by counterparty (in shares) | 3,200,000 | ||
Shares acquired by counterparty, per share price (in dollars per share) | $ 41.10 | ||
Loss on derivative | $ 67,900 | ||
Designated as Hedging Instrument | Interest rate swap | Cash flow hedging | |||
Mark-to-market swaps valuation: | |||
Notional value | 1,250,000 | 1,475,937 | |
Derivatives designated as hedging instruments location: | |||
Amount of gain recognized in other comprehensive income on derivative (effective portion) | 0 | 3,483 | 4,148 |
Net (loss) gain on qualifying cash flow hedging instruments, including share of affiliate | 0 | (4,000) | |
Designated as Hedging Instrument | Interest rate swap | Cash flow hedging | Other financial Items, net | |||
Derivatives designated as hedging instruments location: | |||
Effective portion gain/ (loss) reclassified from Accumulated Other Comprehensive Loss | 382 | 3,235 | (1,644) |
Ineffective Portion | 0 | 876 | 542 |
Designated as Hedging Instrument | Interest rate swap | Cash flow hedging | Gain on sale of Golar Maria | |||
Derivatives designated as hedging instruments location: | |||
Effective portion gain/ (loss) reclassified from Accumulated Other Comprehensive Loss | 0 | 0 | 2,370 |
Ineffective Portion | $ 0 | $ 0 | $ 0 |
Designated as Hedging Instrument | Interest rate swap | Cash flow hedging | Minimum | |||
Mark-to-market swaps valuation: | |||
Fixed interest rate | 1.13% | 1.13% | |
Designated as Hedging Instrument | Interest rate swap | Cash flow hedging | Maximum | |||
Mark-to-market swaps valuation: | |||
Fixed interest rate | 1.94% | 4.52% | |
Designated as Hedging Instrument | Accumulated Other Comprehensive Loss | Cash flow hedging | |||
Derivatives designated as hedging instruments location: | |||
Accumulated other comprehensive (loss) gain | $ 200 | $ (4,600) | |
Golar Partners | |||
Derivatives designated as hedging instruments location: | |||
Forward contract to purchase shares (in shares) | 107,000 | ||
Forward contract to purchase shares, average price per share (in dollars per share) | $ 18.75 |
FINANCIAL INSTRUMENTS (Resta135
FINANCIAL INSTRUMENTS (Restated) - Fair Values (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Carrying Value and Estimated Fair Values | ||
Gross amounts presented in the consolidated balance sheet, Total asset derivatives | $ 5,330 | $ 12,603 |
Gross amounts not offset in the consolidated balance sheet subject to netting agreements | (216) | (292) |
Net amount, Total asset derivatives | 5,114 | 12,311 |
Gross amounts presented in the consolidated balance sheet, Total liability derivatives | 4,597 | 3,038 |
Net amount, Total liability derivatives | 4,381 | 2,746 |
Cash collateral | $ 408,563 | 74,587 |
Share Repurchase Forward Swap | ||
Carrying Value and Estimated Fair Values | ||
Collateral required under share repurchase agreement, percentage of total purchase price | 20.00% | |
Cash collateral | $ 92,800 | |
Interest rate swap | ||
Carrying Value and Estimated Fair Values | ||
Derivative asset | 5,330 | 12,603 |
Interest rate swap | Not Designated as Hedging Instrument | ||
Carrying Value and Estimated Fair Values | ||
Derivative asset | 5,330 | 12,603 |
Derivative liability | 4,597 | 2,673 |
Interest rate swap | Designated as Hedging Instrument | ||
Carrying Value and Estimated Fair Values | ||
Derivative liability | 0 | 365 |
Interest rate swap | Cash flow hedging | ||
Carrying Value and Estimated Fair Values | ||
Fair value/carrying value of derivatives | 400 | |
Notional value | 100,900 | |
Interest rate swap | Cash flow hedging | Designated as Hedging Instrument | ||
Carrying Value and Estimated Fair Values | ||
Notional value | 1,250,000 | 1,475,937 |
Equity Swap | Not Designated as Hedging Instrument | ||
Carrying Value and Estimated Fair Values | ||
Derivative liability | 81,581 | 13,656 |
Currency swap | ||
Carrying Value and Estimated Fair Values | ||
Derivative liability | 86,178 | 16,694 |
Level 1 | Carrying Value | ||
Carrying Value and Estimated Fair Values | ||
Cash and cash equivalents | 105,235 | 191,410 |
Restricted cash and short-term receivables | 408,563 | 74,587 |
Level 1 | Fair Value | ||
Carrying Value and Estimated Fair Values | ||
Cash and cash equivalents | 105,235 | 191,410 |
Restricted cash and short-term receivables | 408,563 | 74,587 |
Level 3 | Carrying Value | ||
Carrying Value and Estimated Fair Values | ||
Cost method investments | 7,347 | 7,347 |
Level 3 | Fair Value | ||
Carrying Value and Estimated Fair Values | ||
Cost method investments | 7,347 | 7,347 |
Level 2 | Carrying Value | ||
Carrying Value and Estimated Fair Values | ||
Short-term debt due from related parties | 0 | 20,000 |
Short-term loans receivable | 6,375 | 8,141 |
Short-term debt | 408,978 | 108,781 |
Current portion of long-term debt | 92,640 | 7,650 |
Long-term debt - convertible bond | 243,369 | 238,037 |
Long-term debt | 1,133,074 | 1,026,319 |
Level 2 | Carrying Value | Interest rate swap | ||
Carrying Value and Estimated Fair Values | ||
Derivative asset | 5,330 | 12,603 |
Derivative liability | 4,597 | 3,038 |
Level 2 | Carrying Value | Equity Swap | ||
Carrying Value and Estimated Fair Values | ||
Derivative liability | 81,581 | 13,656 |
Level 2 | Fair Value | ||
Carrying Value and Estimated Fair Values | ||
Short-term debt due from related parties | 0 | 20,000 |
Short-term loans receivable | 6,375 | 8,141 |
Short-term debt | 408,978 | 108,781 |
Current portion of long-term debt | 92,640 | 7,650 |
Long-term debt - convertible bond | 231,945 | 251,555 |
Long-term debt | 1,133,074 | 1,026,319 |
Level 2 | Fair Value | Interest rate swap | ||
Carrying Value and Estimated Fair Values | ||
Derivative asset | 5,330 | 12,603 |
Derivative liability | 4,597 | 3,038 |
Level 2 | Fair Value | Equity Swap | ||
Carrying Value and Estimated Fair Values | ||
Derivative liability | $ 81,581 | $ 13,656 |
FINANCIAL INSTRUMENTS (Resta136
FINANCIAL INSTRUMENTS (Restated) - Concentrations of Risk (Details) $ in Millions | Dec. 31, 2015USD ($)vessel | Dec. 31, 2014 | Jul. 31, 2013USD ($) |
Concentration of risks: | |||
Investments, ownership percentage | 100.00% | ||
Golar Partners | |||
Concentration of risks: | |||
Investments, ownership percentage | 30.70% | 41.40% | |
Aggregate ownership interest | $ 536.1 | ||
Golar Partners | Vessels and equipment | |||
Concentration of risks: | |||
Vessels operated by affiliate | vessel | 10 | ||
Line of Credit | $1.125 billion newbuild facility | Secured debt | |||
Concentration of risks: | |||
Maximum borrowing capacity | $ 1,125 | $ 1,125 |
RELATED PARTY TRANSACTIONS (137
RELATED PARTY TRANSACTIONS (Restated) - Transactions With Golar Partners and Subsidiaries (Details) - Golar Partners - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | |||
Net (expenses) income (due to) from related parties | $ 75,688 | $ 53,910 | $ 93,512 |
Receivables (payables) from related parties | (7,128) | 29,967 | |
Management and administrative services fees | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 2,949 | 2,877 | 2,569 |
Ship management fees revenue | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 7,577 | 7,746 | 6,701 |
Charter-hire expenses | |||
Related Party Transaction [Line Items] | |||
Related party expense | (41,555) | 0 | 0 |
Gain on disposals to Golar Partners | |||
Related Party Transaction [Line Items] | |||
Related party transaction amount | 102,406 | 43,287 | 82,270 |
Interest income on vendor financing loan | |||
Related Party Transaction [Line Items] | |||
Interest income from related parties | 4,217 | 0 | 0 |
Interest expense on short-term credit facility | |||
Related Party Transaction [Line Items] | |||
Interest expense from related parties | (203) | 0 | 0 |
Interest income on high-yield bonds | |||
Related Party Transaction [Line Items] | |||
Interest income from related parties | 0 | 0 | 1,972 |
Share options expense recharge | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | 297 | 0 | $ 0 |
Trading balances due to Golar and affiliates | |||
Related Party Transaction [Line Items] | |||
Receivables (payables) from related parties | (4,400) | 13,453 | |
Methane Princess Lease security deposit movements | |||
Related Party Transaction [Line Items] | |||
Receivables (payables) from related parties | (2,728) | (3,486) | |
Short-term debt due from Golar Partners | |||
Related Party Transaction [Line Items] | |||
Receivables (payables) from related parties | $ 0 | $ 20,000 |
RELATED PARTY TRANSACTIONS (138
RELATED PARTY TRANSACTIONS (Restated) - Transactions with Golar Partners and Subsidiaries Narrative (Details) | Sep. 04, 2015 | Nov. 30, 2015USD ($) | Jan. 31, 2015USD ($) | Mar. 31, 2014USD ($) | Feb. 28, 2013USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Oct. 31, 2012USD ($) | Oct. 31, 2012NOK | Apr. 30, 2011USD ($) |
Golar Partners | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Related party transaction, rate | 5.00% | |||||||||||
Duration of notice required for contract termination | 120 days | |||||||||||
Golar Partners | Charter-hire expenses, Golar Grand | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Related party expense | $ 28,700,000 | |||||||||||
Golar Partners | Incremental liability recognized upon re-measurement of the guarantee obligation | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Related party expense | 3,900,000 | |||||||||||
Golar Partners | Agreement amount to charter back Golar Eskimo | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Related party transaction amount | $ 22,000,000 | $ 22,000,000 | ||||||||||
Golar Partners | Charter-hire expenses, Golar Eskimo | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Related party expense | 12,900,000 | 12,900,000 | ||||||||||
Golar Partners | Charter-hire revenues, Golar Eskimo | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Revenue from related parties | $ 8,100,000 | |||||||||||
Golar Partners | Gain on disposals | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Related party transaction amount | $ 102,406,000 | $ 43,287,000 | $ 82,270,000 | |||||||||
Golar Partners | Short-term credit facility to fund purchase Golar Eskimo | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Loan facility provided to Golar Partners | 220,000,000 | |||||||||||
Golar Partners | Revolving credit facility | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Maximum borrowing capacity | $ 20,000,000 | |||||||||||
Golar Wilhelmsen Management AS | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Remaining interest acquired | 40.00% | |||||||||||
Golar Wilhelmsen Management AS | Golar Partners | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Duration of notice required for contract termination | 30 days | |||||||||||
Unsecured debt | Senior Unsecured Bonds | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Debt instrument, face amount | $ 35,000,000 | |||||||||||
Unsecured debt | Senior Unsecured Bonds | Golar Partners | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Debt instrument, face amount | $ 227,000,000 | NOK 1,300,000,000 | ||||||||||
Golar Eskimo | Golar Partners | Gain on disposals | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Related party transaction amount | $ 102,400,000 | |||||||||||
Golar Igloo | Golar Partners | Gain on disposals | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Related party transaction amount | $ 43,300,000 | |||||||||||
Golar Maria | Golar Partners | Gain on disposals | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Related party transaction amount | $ 82,300,000 | |||||||||||
Line of Credit | Golar LNG Partners Credit Facility | Golar Partners | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Related party transaction, rate | 5.00% | |||||||||||
Proceeds from short-term credit facility with Golar Partners | $ 50,000,000 | |||||||||||
Line of Credit | Golar LNG Partners Credit Facility | Golar LNG Limited | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Shore-term credit facility repayment period | 28 days | |||||||||||
LIBOR | Golar Partners | Short-term credit facility to fund purchase Golar Eskimo | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Blended margin | 2.84% |
RELATED PARTY TRANSACTIONS (139
RELATED PARTY TRANSACTIONS (Restated) - Other Transactions, Indemnifications and Guarantees (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | |||
Dividends received | $ 52,800 | $ 61,967 | $ 64,198 |
Guarantees issued to Golar Partners | $ 16,493 | 19,271 | |
CMBL Lessor VIE | Variable Interest Entity, Primary Beneficiary | |||
Related Party Transaction [Line Items] | |||
Sale and leaseback term | 10 years | ||
Maximum liability settlement period in event of default | 5 days | ||
Golar Partners | |||
Related Party Transaction [Line Items] | |||
Indemnification under the Omnibus Agreement | 3,300 | ||
Dividends received | $ 52,100 | 61,300 | 63,700 |
Environmental Indemnification, deductible amount | 500 | ||
Environmental indemnification, aggregate cap | $ 5,000 | ||
Minimum charter term for rights of first offer | 5 years | ||
Other non-operating expense | Golar Partners | |||
Related Party Transaction [Line Items] | |||
Indemnification under the Omnibus Agreement | $ 0 | 500 | $ 500 |
Tax lease indemnification | Golar Partners | |||
Related Party Transaction [Line Items] | |||
Guarantees issued to Golar Partners | 11,500 | $ 11,500 | |
Golar Partners | Debt guarantees | |||
Related Party Transaction [Line Items] | |||
Guarantees issued to Golar Partners | $ 4,500 |
RELATED PARTY TRANSACTIONS (140
RELATED PARTY TRANSACTIONS (Restated) - Other Related Parties Excluding Golar Partners (Details) - USD ($) $ in Thousands | Sep. 04, 2015 | Sep. 10, 2014 | Apr. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ||||||
Total debt | $ 1,878,061 | $ 1,380,787 | ||||
World Shipholding | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership percentage | 0.00% | 1.90% | ||||
Common Stock | ||||||
Related Party Transaction [Line Items] | ||||||
Number of common units issued (in shares) | 32,000,000 | |||||
Principal Shareholder | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage shareholders' ownership before transaction | 36.20% | |||||
Percentage shareholders' ownership after transaction | 1.90% | |||||
Frontline | ||||||
Related Party Transaction [Line Items] | ||||||
Net (expenses) income (due to) from related parties | $ 0 | $ 34 | $ 49 | |||
Seatankers | ||||||
Related Party Transaction [Line Items] | ||||||
Net (expenses) income (due to) from related parties | 0 | (112) | (45) | |||
Ship Finance | ||||||
Related Party Transaction [Line Items] | ||||||
Net (expenses) income (due to) from related parties | 0 | 116 | 207 | |||
Seadrill | ||||||
Related Party Transaction [Line Items] | ||||||
Net (expenses) income (due to) from related parties | 0 | (5) | 0 | |||
Golar Wilhemsen | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage shareholders' ownership before transaction | 60.00% | |||||
Percentage shareholders' ownership after transaction | 100.00% | |||||
Net (expenses) income (due to) from related parties | (2,246) | (7,031) | (4,899) | |||
Receivables (payables) from related parties | 0 | (1,394) | ||||
Remaining interest acquired | 40.00% | |||||
World Shipholding | ||||||
Related Party Transaction [Line Items] | ||||||
Net (expenses) income (due to) from related parties | $ 0 | $ 0 | (976) | |||
World Shipholding | Unsecured debt | World Shipholding facility | ||||||
Related Party Transaction [Line Items] | ||||||
Total debt | $ 50,000 | |||||
Repayment of related party debt | $ 50,000 |
CAPITAL COMMITMENTS (Details)
CAPITAL COMMITMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Purchase obligation, fiscal year maturity: | ||
Long-term purchase commitment amount | $ 247,500 | |
Hilli Conversion to FLNGV | ||
Purchase obligation, fiscal year maturity: | ||
Payable within 12 months to December 31, 2016 | 306,082 | |
Payable within 12 months to December 31, 2017 | 374,376 | |
Total payable | 680,458 | |
Newbuildings | ||
Purchase obligation, fiscal year maturity: | ||
Payable within 12 months to December 31, 2016 | 49,500 | |
Payable within 12 months to December 31, 2017 | 185,625 | |
Total payable | 235,125 | |
Long-term purchase commitment amount | 247,500 | |
Long-term purchase commitment, amount outstanding | $ 235,100 | |
Scenario, Forecast | Gimi Conversion | ||
Purchase obligation, fiscal year maturity: | ||
Contractual obligation | $ 700,000 | |
Termination fees | 7,000 | |
Scenario, Forecast | Gandria Conversion | ||
Purchase obligation, fiscal year maturity: | ||
Contractual obligation | $ 1,000,000 |
OTHER COMMITMENTS AND CONTIN142
OTHER COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands, £ in Millions, BRL in Millions | 12 Months Ended | ||||
Dec. 31, 2015GBP (£)tax_lease | Dec. 31, 2003GBP (£)tax_lease | Dec. 31, 2015USD ($) | Dec. 31, 2015BRL | Dec. 31, 2014USD ($) | |
Tax lease benefits: | |||||
Book value of vessels secured against long-term loans | $ 2,543,012 | $ 1,997,657 | |||
Number of tax leases | tax_lease | 6 | ||||
Gross amount received from tax lease benefit (in GBP) | £ | £ 41 | ||||
Number of tax leases terminated | tax_lease | 5 | ||||
Other commitment to pay third party | $ 1,000 | ||||
Minimum | |||||
Tax lease benefits: | |||||
Estimate of possible exposure | £ | £ 0 | ||||
Maximum | |||||
Tax lease benefits: | |||||
Estimate of possible exposure | £ | £ 100 | ||||
Golar Partners | |||||
Tax lease benefits: | |||||
Number of tax leases remaining | tax_lease | 1 | ||||
Performance Guarantee | |||||
Tax lease benefits: | |||||
Guarantor Obligations, Maximum Exposure, Undiscounted | BRL | BRL 164.7 | ||||
Maximum percentage of guarantor liability | 49.00% | 49.00% | |||
Present value of the guarantee | $ 1,200 | ||||
Equity Method Investments | Convertible bonds | |||||
Tax lease benefits: | |||||
Book value of vessels secured against long-term loans | $ 13,000 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | Mar. 17, 2016 | Feb. 29, 2016 | Feb. 10, 2016 | Jan. 05, 2016 | Feb. 29, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Subsequent events: | ||||||||
Remaining amount in share repurchase program (in shares) | 0.3 | |||||||
Purchase of treasury shares | $ 12,269 | $ 0 | $ 0 | |||||
Equity Swap | ||||||||
Subsequent events: | ||||||||
Shares acquired by counterparty (in shares) | 3.2 | |||||||
Subsequent event | ||||||||
Subsequent events: | ||||||||
Remaining amount in share repurchase program (in shares) | 0.2 | |||||||
Purchase of treasury shares | $ 8,200 | |||||||
Dividend declared (in dollars per share) | $ 0.05 | |||||||
Subsequent event | Golar Partners | ||||||||
Subsequent events: | ||||||||
Cash distribution per share (in dollars per share) | $ 0.58 | $ 0.58 | ||||||
Proceeds from dividends | $ 13,200 | |||||||
Subsequent event | Line of Credit | Secured debt | Golar Seal Facility | ||||||||
Subsequent events: | ||||||||
Funding percentage of market value | 85.00% | |||||||
Duration of charter | 10 years | |||||||
Subsequent event | Affiliated Entity | FSRU monthly fee | ||||||||
Subsequent events: | ||||||||
Monthly expense for right to use FSRU | $ 2,600 | |||||||
Subsequent event | Golar Tundra | Affiliated Entity | Golar Partners | ||||||||
Subsequent events: | ||||||||
Consideration received on sale of subsidiary | $ 330,000 | |||||||
Subsequent event | Equity Swap | ||||||||
Subsequent events: | ||||||||
Shares acquired by counterparty (in shares) | 3 |
RESTATEMENT OF PREVIOUSLY IS144
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - NARRATIVE (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred debt issuance costs | $ 42,154 | $ 26,801 |
Total assets | Accounting Standards Update 2015-03 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred debt issuance costs | (42,200) | (26,800) |
Total debt | Accounting Standards Update 2015-03 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred debt issuance costs | $ 42,200 | $ 26,800 |
RESTATEMENT OF PREVIOUSLY IS145
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - CONSOLIDATED STATEMENTS OF OPERATIONS (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Operating revenues | ||||
Time and voyage charter revenues | $ 90,127 | $ 95,399 | $ 90,558 | |
Vessel and other management fees | [1] | 12,547 | 10,756 | 9,270 |
Total operating revenues | 102,674 | 106,155 | 99,828 | |
Operating expenses | ||||
Vessel operating expenses | 56,347 | 49,570 | 43,750 | |
Voyage, charter-hire and commission expenses | [1] | 69,042 | 27,340 | 14,259 |
Administrative expenses | 33,526 | 19,267 | 22,952 | |
Depreciation and amortization | 73,732 | 49,811 | 36,871 | |
Impairment of long-term assets | 1,957 | 500 | 500 | |
Total operating expenses | 234,604 | 146,488 | 118,332 | |
Gain on disposals to Golar Partners | [1] | 102,406 | 43,287 | 82,270 |
Other operating loss | 0 | (6,387) | 0 | |
Impairment of vessel held-for-sale | (1,032) | 0 | 0 | |
Other operating gains - LNG trade | 0 | 1,317 | 0 | |
Loss on disposal of vessel held-for-sale | (5,824) | 0 | 0 | |
Operating (loss) income | (36,380) | (2,116) | 63,766 | |
Other non-operating income | ||||
Dividend income | 0 | 0 | 9 | |
Gain on sale of available-for-sale securities | 0 | 0 | 100 | |
Other non-operating income (expense) | (27) | 272 | (2,591) | |
Total other non-operating (expense) income | (27) | 272 | (2,482) | |
Financial income (expense) | ||||
Interest income | [1] | 6,896 | 716 | 3,549 |
Interest expense | [1] | (62,911) | (14,474) | 0 |
Other financial items, net | (118,604) | (74,094) | 38,219 | |
Net financial (expense) income | (174,619) | (87,852) | 41,768 | |
(Loss) income before equity in net earnings of affiliates, income taxes and non-controlling interests | (211,026) | (89,696) | 103,052 | |
Income taxes | 3,053 | 1,114 | 3,404 | |
Equity in net earnings of affiliates | 55,985 | 42,220 | 3,099 | |
Net (loss) income | (151,988) | (46,362) | 109,555 | |
Net income attributable to non-controlling interests | (19,158) | (1,655) | 0 | |
Net (loss) income attributable to Golar LNG Ltd | $ (171,146) | $ (48,017) | $ 109,555 | |
Per common share amounts: | ||||
(Loss) earnings - Basic (in dollars per share) | $ (1.83) | $ (0.55) | $ 1.36 | |
(Loss) earnings - Diluted (in dollars per share) | (1.83) | (0.55) | 1.28 | |
Cash dividends declared and paid (in dollars per share) | $ 1.35 | $ 1.80 | $ 1.35 | |
As Previously Reported | ||||
Operating revenues | ||||
Time and voyage charter revenues | $ 90,127 | $ 95,399 | $ 90,558 | |
Vessel and other management fees | [1] | 12,547 | 10,756 | 9,270 |
Total operating revenues | 102,674 | 106,155 | 99,828 | |
Operating expenses | ||||
Vessel operating expenses | 56,347 | 49,570 | 43,750 | |
Voyage, charter-hire and commission expenses | [1] | 69,042 | 27,340 | 14,259 |
Administrative expenses | 33,526 | 19,267 | 22,952 | |
Depreciation and amortization | 73,732 | 49,811 | 36,871 | |
Impairment of long-term assets | 1,957 | 500 | 500 | |
Total operating expenses | 234,604 | 146,488 | 118,332 | |
Gain on disposals to Golar Partners | [1] | 102,884 | 43,783 | 65,619 |
Other operating loss | 0 | (6,387) | 0 | |
Impairment of vessel held-for-sale | (1,032) | 0 | 0 | |
Other operating gains - LNG trade | 0 | 1,317 | 0 | |
Loss on disposal of vessel held-for-sale | (5,824) | 0 | 0 | |
Operating (loss) income | (35,902) | (1,620) | 47,115 | |
Other non-operating income | ||||
Dividend income | [1] | 15,524 | 27,203 | 30,960 |
Gain on sale of available-for-sale securities | (3,011) | 0 | (754) | |
Other non-operating income (expense) | 0 | 281 | (2,601) | |
Total other non-operating (expense) income | 12,513 | 27,484 | 27,605 | |
Financial income (expense) | ||||
Interest income | [1] | 6,896 | 716 | 3,549 |
Interest expense | [1] | (62,911) | (14,474) | 0 |
Other financial items, net | (118,604) | (74,094) | 38,219 | |
Net financial (expense) income | (174,619) | (87,852) | 41,768 | |
(Loss) income before equity in net earnings of affiliates, income taxes and non-controlling interests | (198,008) | (61,988) | 116,488 | |
Income taxes | 3,053 | 1,114 | 3,404 | |
Equity in net earnings of affiliates | 16,454 | 19,408 | 15,821 | |
Net (loss) income | (178,501) | (41,466) | 135,713 | |
Net income attributable to non-controlling interests | (19,158) | (1,655) | 0 | |
Net (loss) income attributable to Golar LNG Ltd | $ (197,659) | $ (43,121) | $ 135,713 | |
Per common share amounts: | ||||
(Loss) earnings - Basic (in dollars per share) | $ (2.12) | $ (0.50) | $ 1.69 | |
(Loss) earnings - Diluted (in dollars per share) | (2.12) | (0.50) | 1.59 | |
Cash dividends declared and paid (in dollars per share) | $ 1.35 | $ 1.80 | $ 1.35 | |
Adjustment | ||||
Operating revenues | ||||
Time and voyage charter revenues | $ 0 | $ 0 | $ 0 | |
Vessel and other management fees | [1] | 0 | 0 | 0 |
Total operating revenues | 0 | 0 | 0 | |
Operating expenses | ||||
Vessel operating expenses | 0 | 0 | 0 | |
Voyage, charter-hire and commission expenses | [1] | 0 | 0 | 0 |
Administrative expenses | 0 | 0 | 0 | |
Depreciation and amortization | 0 | 0 | 0 | |
Impairment of long-term assets | 0 | 0 | 0 | |
Total operating expenses | 0 | 0 | 0 | |
Gain on disposals to Golar Partners | [1] | (478) | (496) | 16,651 |
Other operating loss | 0 | 0 | 0 | |
Impairment of vessel held-for-sale | 0 | 0 | 0 | |
Other operating gains - LNG trade | 0 | 0 | 0 | |
Loss on disposal of vessel held-for-sale | 0 | 0 | 0 | |
Operating (loss) income | (478) | (496) | 16,651 | |
Other non-operating income | ||||
Dividend income | [1] | (15,524) | (27,203) | (30,951) |
Gain on sale of available-for-sale securities | 3,011 | 0 | 854 | |
Other non-operating income (expense) | (27) | (9) | 10 | |
Total other non-operating (expense) income | (12,540) | (27,212) | (30,087) | |
Financial income (expense) | ||||
Interest income | [1] | 0 | 0 | 0 |
Interest expense | [1] | 0 | 0 | 0 |
Other financial items, net | 0 | 0 | 0 | |
Net financial (expense) income | 0 | 0 | 0 | |
(Loss) income before equity in net earnings of affiliates, income taxes and non-controlling interests | (13,018) | (27,708) | (13,436) | |
Income taxes | ||||
Equity in net earnings of affiliates | 39,531 | 22,812 | (12,722) | |
Net (loss) income | 26,513 | (4,896) | (26,158) | |
Net income attributable to non-controlling interests | 0 | 0 | 0 | |
Net (loss) income attributable to Golar LNG Ltd | $ 26,513 | $ (4,896) | $ (26,158) | |
Per common share amounts: | ||||
(Loss) earnings - Basic (in dollars per share) | $ 0.29 | $ (0.05) | $ (0.33) | |
(Loss) earnings - Diluted (in dollars per share) | 0.29 | (0.05) | (0.31) | |
Cash dividends declared and paid (in dollars per share) | $ 0 | $ 0 | $ 0 | |
[1] | This includes amounts arising from transactions with related parties (see note 31). |
RESTATEMENT OF PREVIOUSLY IS146
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
COMPREHENSIVE INCOME | ||||
Net (loss) income | $ (151,988) | $ (46,362) | $ 109,555 | |
Other comprehensive income: | ||||
Gain (loss) associated with pensions, net of tax | 2,851 | (2,520) | 5,078 | |
Net (loss) gain on qualifying cash flow hedging instruments | [1] | (4,440) | 6,669 | 9,015 |
Net (loss) gain on investments in available-for-sale securities | 0 | 0 | 0 | |
Other comprehensive (loss) income | (1,589) | 4,149 | 14,093 | |
Comprehensive (loss) income | (153,577) | (42,213) | 123,648 | |
Comprehensive (loss) income attributable to: | ||||
Stockholders of Golar LNG Limited | (172,735) | (43,868) | 123,648 | |
Non-controlling interests | 19,158 | 1,655 | 0 | |
Comprehensive (loss) income | (153,577) | (42,213) | 123,648 | |
As Previously Reported | ||||
COMPREHENSIVE INCOME | ||||
Net (loss) income | (178,501) | (41,466) | 135,713 | |
Other comprehensive income: | ||||
Gain (loss) associated with pensions, net of tax | 2,851 | (2,520) | 5,078 | |
Net (loss) gain on qualifying cash flow hedging instruments | [1] | (493) | 6,493 | 5,010 |
Net (loss) gain on investments in available-for-sale securities | (44,359) | 7,955 | 1,885 | |
Other comprehensive (loss) income | (42,001) | 11,928 | 11,973 | |
Comprehensive (loss) income | (220,502) | (29,538) | 147,686 | |
Comprehensive (loss) income attributable to: | ||||
Stockholders of Golar LNG Limited | (239,660) | (31,193) | 147,686 | |
Non-controlling interests | 19,158 | 1,655 | 0 | |
Comprehensive (loss) income | (220,502) | (29,538) | 147,686 | |
Adjustment | ||||
COMPREHENSIVE INCOME | ||||
Net (loss) income | 26,513 | (4,896) | (26,158) | |
Other comprehensive income: | ||||
Gain (loss) associated with pensions, net of tax | 0 | 0 | 0 | |
Net (loss) gain on qualifying cash flow hedging instruments | [1] | (3,947) | 176 | 4,005 |
Net (loss) gain on investments in available-for-sale securities | 44,359 | (7,955) | (1,885) | |
Other comprehensive (loss) income | 40,412 | (7,779) | 2,120 | |
Comprehensive (loss) income | 66,925 | (12,675) | (24,038) | |
Comprehensive (loss) income attributable to: | ||||
Stockholders of Golar LNG Limited | 66,925 | (12,675) | (24,038) | |
Non-controlling interests | 0 | 0 | 0 | |
Comprehensive (loss) income | $ 66,925 | $ (12,675) | $ (24,038) | |
[1] | Includes share of net loss of $4.8 million, $nil and net gain of $4.9 million on qualifying cash flow hedging instruments held by an affiliate for the years ended December 31, 2015, 2014 and 2013, respectively. Refer to note 29. |
RESTATEMENT OF PREVIOUSLY IS147
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - CONSOLIDATED BALANCE SHEETS (Details) (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current Assets | ||||
Cash and cash equivalents | $ 105,235 | $ 191,410 | $ 125,347 | $ 424,714 |
Restricted cash and short-term receivables | 228,202 | 74,162 | ||
Trade accounts receivable | 4,474 | 4,419 | ||
Other receivables, prepaid expenses and accrued income | 24,753 | 17,498 | ||
Amounts due from related parties | 0 | 9,967 | ||
Short-term debt due from related party | 0 | 20,000 | ||
Inventories | 8,650 | 8,317 | ||
Vessel held-for-sale | 0 | 132,110 | ||
Assets held-for-sale | 267,034 | 280,746 | ||
Total current assets | 638,348 | 738,629 | ||
Long-term assets | ||||
Restricted cash | 180,361 | 425 | ||
Investment in available-for-sale securities | 0 | 0 | ||
Investments in affiliates | 541,565 | 746,263 | 766,024 | |
Cost method investment | 7,347 | 7,347 | ||
Newbuildings | 13,561 | 344,543 | ||
Asset under development | 501,022 | 345,205 | ||
Vessels and equipment, net | 2,336,144 | 1,648,888 | ||
Deferred charges | 0 | 0 | ||
Other non-current assets | 50,850 | 68,442 | ||
Total assets | 4,269,198 | 3,899,742 | 2,591,666 | |
Current liabilities | ||||
Current portion of long-term debt and short-term debt, net of deferred finance charges | 491,398 | 112,853 | ||
Trade accounts payable | 53,281 | 10,811 | ||
Accrued expenses | 53,333 | 31,124 | ||
Amounts due to related parties | 7,128 | 0 | ||
Other current liabilities | 148,077 | 46,417 | ||
Liabilities held-for-sale | 201,213 | 160,192 | ||
Total current liabilities | 954,430 | 361,397 | ||
Long-term liabilities | ||||
Long-term debt, net of deferred finance charges | 1,344,509 | 1,241,133 | ||
Long-term debt due to related parties | 0 | 0 | ||
Other long-term liabilities | 54,080 | 59,790 | ||
Total liabilities | 2,353,019 | 1,662,320 | ||
EQUITY | ||||
Share capital 93,546,663 common shares of $1.00 each issued and outstanding (2014: 93,414,672 and 2013: 80,579,295) | 93,547 | 93,415 | ||
Treasury shares | (12,269) | 0 | ||
Additional paid-in capital | 1,317,806 | 1,307,087 | ||
Contributed surplus | 200,000 | 200,000 | ||
Accumulated other comprehensive (loss) gain | (12,592) | (6,579) | (10,728) | |
Retained earnings | 308,874 | 641,844 | ||
Total stockholders' equity | 1,895,366 | 2,235,767 | ||
Non-controlling interests | 20,813 | 1,655 | ||
Total equity | 1,916,179 | 2,237,422 | $ 1,771,727 | 1,755,947 |
Total liabilities and equity | $ 4,269,198 | $ 3,899,742 | ||
Common shares, shares issued (in shares) | 93,546,663 | 93,414,672 | 80,579,295 | |
Common shares, shares outstanding (in shares) | 93,546,663 | 93,414,672 | 80,579,295 | |
Common shares, par value (in dollars per share) | $ 1 | $ 1 | $ 1 | |
As Previously Reported | ||||
Current Assets | ||||
Cash and cash equivalents | $ 105,235 | $ 191,410 | $ 125,347 | 424,714 |
Restricted cash and short-term receivables | 228,202 | 74,162 | ||
Trade accounts receivable | 4,474 | 4,419 | ||
Other receivables, prepaid expenses and accrued income | 24,753 | 17,498 | ||
Amounts due from related parties | 0 | 9,967 | ||
Short-term debt due from related party | 0 | 20,000 | ||
Inventories | 8,650 | 8,317 | ||
Vessel held-for-sale | 0 | 132,110 | ||
Assets held-for-sale | 269,459 | 284,955 | ||
Total current assets | 640,773 | 742,838 | ||
Long-term assets | ||||
Restricted cash | 180,361 | 425 | ||
Investment in available-for-sale securities | 25,530 | 275,307 | ||
Investments in affiliates | 313,021 | 335,372 | ||
Cost method investment | 204,172 | 204,172 | ||
Newbuildings | 13,561 | 344,543 | ||
Asset under development | 501,022 | 345,205 | ||
Vessels and equipment, net | 2,336,144 | 1,648,888 | ||
Deferred charges | 42,154 | 26,801 | ||
Other non-current assets | 50,850 | 68,442 | ||
Total assets | 4,307,588 | 3,991,993 | ||
Current liabilities | ||||
Current portion of long-term debt and short-term debt, net of deferred finance charges | 501,618 | 116,431 | ||
Trade accounts payable | 53,281 | 10,811 | ||
Accrued expenses | 53,333 | 31,124 | ||
Amounts due to related parties | 7,128 | 0 | ||
Other current liabilities | 148,583 | 46,923 | ||
Liabilities held-for-sale | 203,638 | 164,401 | ||
Total current liabilities | 967,581 | 369,690 | ||
Long-term liabilities | ||||
Long-term debt, net of deferred finance charges | 1,376,443 | 1,264,356 | ||
Long-term debt due to related parties | 0 | 0 | ||
Other long-term liabilities | 69,225 | 75,440 | ||
Total liabilities | 2,413,249 | 1,709,486 | ||
EQUITY | ||||
Share capital 93,546,663 common shares of $1.00 each issued and outstanding (2014: 93,414,672 and 2013: 80,579,295) | 93,547 | 93,415 | ||
Treasury shares | (12,269) | 0 | ||
Additional paid-in capital | 1,317,806 | 1,307,087 | ||
Contributed surplus | 200,000 | 200,000 | ||
Accumulated other comprehensive (loss) gain | (41,254) | 5,171 | ||
Retained earnings | 315,696 | 675,179 | ||
Total stockholders' equity | 1,873,526 | 2,280,852 | ||
Non-controlling interests | 20,813 | 1,655 | ||
Total equity | 1,894,339 | 2,282,507 | ||
Total liabilities and equity | 4,307,588 | 3,991,993 | ||
Adjustment | ||||
Current Assets | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Restricted cash and short-term receivables | 0 | 0 | ||
Trade accounts receivable | 0 | 0 | ||
Other receivables, prepaid expenses and accrued income | 0 | 0 | ||
Amounts due from related parties | 0 | 0 | ||
Short-term debt due from related party | 0 | 0 | ||
Inventories | 0 | 0 | ||
Vessel held-for-sale | 0 | 0 | ||
Assets held-for-sale | (2,425) | (4,209) | ||
Total current assets | (2,425) | (4,209) | ||
Long-term assets | ||||
Restricted cash | 0 | 0 | ||
Investment in available-for-sale securities | (25,530) | (275,307) | ||
Investments in affiliates | 228,544 | 410,891 | ||
Cost method investment | (196,825) | (196,825) | ||
Newbuildings | 0 | 0 | ||
Asset under development | 0 | 0 | ||
Vessels and equipment, net | 0 | 0 | ||
Deferred charges | (42,154) | (26,801) | ||
Other non-current assets | 0 | 0 | ||
Total assets | (38,390) | (92,251) | ||
Current liabilities | ||||
Current portion of long-term debt and short-term debt, net of deferred finance charges | (10,220) | (3,578) | ||
Trade accounts payable | 0 | 0 | ||
Accrued expenses | 0 | 0 | ||
Amounts due to related parties | 0 | 0 | ||
Other current liabilities | (506) | (506) | ||
Liabilities held-for-sale | (2,425) | (4,209) | ||
Total current liabilities | (13,151) | (8,293) | ||
Long-term liabilities | ||||
Long-term debt, net of deferred finance charges | (31,934) | (23,223) | ||
Long-term debt due to related parties | 0 | 0 | ||
Other long-term liabilities | (15,145) | (15,650) | ||
Total liabilities | (60,230) | (47,166) | ||
EQUITY | ||||
Share capital 93,546,663 common shares of $1.00 each issued and outstanding (2014: 93,414,672 and 2013: 80,579,295) | 0 | 0 | ||
Treasury shares | 0 | 0 | ||
Additional paid-in capital | 0 | 0 | ||
Contributed surplus | 0 | 0 | ||
Accumulated other comprehensive (loss) gain | 28,662 | (11,750) | ||
Retained earnings | (6,822) | (33,335) | ||
Total stockholders' equity | 21,840 | (45,085) | ||
Non-controlling interests | 0 | 0 | ||
Total equity | 21,840 | (45,085) | ||
Total liabilities and equity | $ (38,390) | $ (92,251) |
RESTATEMENT OF PREVIOUSLY IS148
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - CONSOLIDATED STATEMENTS OF CASH FLOWS (Details) (Details) - USD ($) $ in Thousands | Jun. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities | |||||
Net (loss) income | $ (151,988) | $ (46,362) | $ 109,555 | ||
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||||
Depreciation and amortization | 73,732 | 49,811 | 36,871 | ||
Amortization of deferred charges and debt guarantee | (2,073) | 2,459 | 1,120 | ||
Equity in net earnings of affiliates | (55,985) | (42,220) | (3,099) | ||
Gain on disposals to Golar Partners | [1] | (102,406) | (43,287) | (82,270) | |
Loss on sale of vessel | 5,824 | 0 | 0 | ||
Impairment of vessel held-for-sale | 1,032 | 0 | 0 | ||
Dividend income from available-for-sale and cost investments recognized in operating income | 0 | 0 | (9) | ||
Dividends received | 52,800 | 61,967 | 64,198 | ||
Loss on disposal of available-for-sale securities | 0 | 0 | (100) | ||
Gain on disposal of high yield bond in Golar Partners | 0 | 0 | (841) | ||
Compensation cost related to stock options | 4,125 | 1,619 | 500 | ||
Net foreign exchange losses (gain) | 2,404 | 1,314 | (277) | ||
Amortization of deferred tax benefits on intra-group transfers | (3,488) | (3,488) | (3,487) | ||
Impairment of long-term assets | 1,957 | 500 | 500 | ||
Impairment of loan receivable | 15,010 | 0 | 0 | ||
Drydocking expenditure | (10,405) | (8,947) | (4,248) | ||
Change in assets and liabilities, net of effects from the sale of Golar Eskimo, Golar Igloo and Golar Maria: | |||||
Restricted cash | (280,000) | 0 | 0 | ||
Trade accounts receivable | 911 | (10,533) | 304 | ||
Inventories | (2,252) | (809) | (10,137) | ||
Prepaid expenses, accrued income and other assets | (6,361) | 27,612 | (50,877) | ||
Amounts due from/to related companies | 15,259 | (6,003) | 3,497 | ||
Trade accounts payable | 8,944 | (1,746) | 2,525 | ||
Accrued expenses | 21,479 | 13,802 | 3,349 | ||
Other current liabilities | [2] | 66,832 | 29,184 | 648 | |
Net cash (used in) provided by operating activities | (344,649) | 24,873 | 67,722 | ||
Investing activities | |||||
Additions to vessels and equipment | (26,110) | (2,359) | (802) | ||
Additions to newbuildings | (559,667) | (1,150,669) | (733,353) | ||
Additions to asset under development | (111,572) | (313,645) | 0 | ||
Investment in subsidiary, net of cash acquired | (16) | 0 | 0 | ||
Proceeds from disposal of investments in affiliates | 207,428 | 0 | 99,210 | ||
Additions to investment in affiliates | (5,023) | 0 | (12,400) | ||
Additions to investments | 0 | 0 | (5,649) | ||
Short-term loan granted to third party | (2,000) | 0 | (11,960) | ||
Repayment of short-term loan granted to third party | 400 | 0 | 2,469 | ||
Proceeds from disposals to Golar Partners, net of cash disposed | 226,872 | 155,319 | 119,927 | ||
Proceeds from disposal of high yield bond in Golar Partners | 0 | 0 | 34,483 | ||
Short-term loan granted to Golar Partners | 0 | (20,000) | (20,000) | ||
Additions to other long-term assets | 0 | (49,873) | 0 | ||
Repayment of short-term loan granted to Golar Partners | 20,000 | 0 | 20,000 | ||
Proceeds from disposal of fixed assets | 18,987 | 0 | 0 | ||
Restricted cash and short-term receivables | (25,255) | (48,043) | (24,992) | ||
Net cash used in investing activities | (255,956) | (1,429,270) | (533,067) | ||
Financing activities | |||||
Proceeds from short-term and long-term debt (including related parties) | 918,801 | 1,222,746 | 306,358 | ||
Repayments of short-term and long-term debt (including related parties) | (215,363) | (239,903) | (9,400) | ||
Financing costs paid | (23,266) | (18,672) | (22,612) | ||
Cash dividends paid | (121,358) | (155,996) | (108,976) | ||
Proceeds from exercise of share options | 225 | 1,338 | 608 | ||
Purchase of treasury shares | (12,269) | 0 | 0 | ||
Proceeds from issuance of equity | $ 660,900 | 0 | 660,947 | 0 | |
Restricted cash and short-term receivables | (32,340) | 0 | 0 | ||
Net cash provided by financing activities | 514,430 | 1,470,460 | 165,978 | ||
Net (decrease) increase in cash and cash equivalents | (86,175) | 66,063 | (299,367) | ||
Cash and cash equivalents at beginning of period | 191,410 | 125,347 | 424,714 | ||
Cash and cash equivalents at end of period | 105,235 | 191,410 | 125,347 | ||
Cash paid during the year for: | |||||
Interest paid, net of capitalized interest | 37,964 | 11,372 | 0 | ||
Income taxes paid | 1,278 | 1,372 | 1,322 | ||
As Previously Reported | |||||
Operating activities | |||||
Net (loss) income | (178,501) | (41,466) | 135,713 | ||
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||||
Depreciation and amortization | 73,732 | 49,811 | 36,871 | ||
Amortization of deferred charges and debt guarantee | (2,073) | 2,459 | 1,120 | ||
Equity in net earnings of affiliates | (16,454) | (19,408) | (15,821) | ||
Gain on disposals to Golar Partners | [1] | (102,884) | (43,783) | (65,619) | |
Loss on sale of vessel | 5,824 | 0 | 0 | ||
Impairment of vessel held-for-sale | 1,032 | 0 | 0 | ||
Dividend income from available-for-sale and cost investments recognized in operating income | (15,524) | (27,203) | (30,960) | ||
Dividends received | 52,800 | 61,967 | 64,198 | ||
Loss on disposal of available-for-sale securities | 3,011 | 0 | 754 | ||
Gain on disposal of high yield bond in Golar Partners | 0 | 0 | (841) | ||
Compensation cost related to stock options | 4,125 | 1,619 | 500 | ||
Net foreign exchange losses (gain) | 2,404 | 1,314 | (277) | ||
Amortization of deferred tax benefits on intra-group transfers | (3,488) | (3,488) | (3,487) | ||
Impairment of long-term assets | 1,957 | 500 | 500 | ||
Impairment of loan receivable | 15,010 | 0 | 0 | ||
Drydocking expenditure | (10,405) | (8,947) | (4,248) | ||
Change in assets and liabilities, net of effects from the sale of Golar Eskimo, Golar Igloo and Golar Maria: | |||||
Restricted cash | (280,000) | 0 | 0 | ||
Trade accounts receivable | 911 | (10,533) | 304 | ||
Inventories | (2,252) | (809) | (10,137) | ||
Prepaid expenses, accrued income and other assets | (6,361) | 27,612 | (50,877) | ||
Amounts due from/to related companies | 15,259 | (6,003) | 3,497 | ||
Trade accounts payable | 8,944 | (1,746) | 2,525 | ||
Accrued expenses | 21,479 | 13,802 | 3,349 | ||
Other current liabilities | 66,805 | 29,175 | 658 | ||
Net cash (used in) provided by operating activities | (344,649) | 24,873 | 67,722 | ||
Investing activities | |||||
Additions to vessels and equipment | (26,110) | (2,359) | (802) | ||
Additions to newbuildings | (559,667) | (1,150,669) | (733,353) | ||
Additions to asset under development | (111,572) | (313,645) | 0 | ||
Investment in subsidiary, net of cash acquired | (16) | 0 | 0 | ||
Proceeds from disposal of investments in affiliates | 207,428 | 0 | 99,210 | ||
Additions to investment in affiliates | (5,023) | 0 | (12,400) | ||
Additions to investments | 0 | 0 | (5,649) | ||
Short-term loan granted to third party | (2,000) | 0 | (11,960) | ||
Repayment of short-term loan granted to third party | 400 | 0 | 2,469 | ||
Proceeds from disposals to Golar Partners, net of cash disposed | 226,872 | 155,319 | 119,927 | ||
Proceeds from disposal of high yield bond in Golar Partners | 0 | 0 | 34,483 | ||
Short-term loan granted to Golar Partners | 0 | (20,000) | (20,000) | ||
Additions to other long-term assets | 0 | (49,873) | 0 | ||
Repayment of short-term loan granted to Golar Partners | 20,000 | 0 | 20,000 | ||
Proceeds from disposal of fixed assets | 18,987 | 0 | 0 | ||
Restricted cash and short-term receivables | (25,255) | (48,043) | (24,992) | ||
Net cash used in investing activities | (255,956) | (1,429,270) | (533,067) | ||
Financing activities | |||||
Proceeds from short-term and long-term debt (including related parties) | 918,801 | 1,222,746 | 306,358 | ||
Repayments of short-term and long-term debt (including related parties) | (215,363) | (239,903) | (9,400) | ||
Financing costs paid | (23,266) | (18,672) | (22,612) | ||
Cash dividends paid | (121,358) | (155,996) | (108,976) | ||
Proceeds from exercise of share options | 225 | 1,338 | 608 | ||
Purchase of treasury shares | (12,269) | 0 | 0 | ||
Proceeds from issuance of equity | 0 | 660,947 | 0 | ||
Restricted cash and short-term receivables | (32,340) | 0 | 0 | ||
Net cash provided by financing activities | 514,430 | 1,470,460 | 165,978 | ||
Net (decrease) increase in cash and cash equivalents | (86,175) | 66,063 | (299,367) | ||
Cash and cash equivalents at beginning of period | 191,410 | 125,347 | 424,714 | ||
Cash and cash equivalents at end of period | 105,235 | 191,410 | 125,347 | ||
Cash paid during the year for: | |||||
Interest paid, net of capitalized interest | 37,964 | 11,372 | 0 | ||
Income taxes paid | 1,278 | 1,372 | 1,322 | ||
Adjustment | |||||
Operating activities | |||||
Net (loss) income | 26,513 | (4,896) | (26,158) | ||
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||||
Depreciation and amortization | 0 | 0 | 0 | ||
Amortization of deferred charges and debt guarantee | 0 | 0 | 0 | ||
Equity in net earnings of affiliates | (39,531) | (22,812) | 12,722 | ||
Gain on disposals to Golar Partners | [1] | 478 | 496 | (16,651) | |
Loss on sale of vessel | 0 | 0 | 0 | ||
Impairment of vessel held-for-sale | 0 | 0 | 0 | ||
Dividend income from available-for-sale and cost investments recognized in operating income | 15,524 | 27,203 | 30,951 | ||
Dividends received | 0 | 0 | 0 | ||
Loss on disposal of available-for-sale securities | (3,011) | 0 | (854) | ||
Gain on disposal of high yield bond in Golar Partners | 0 | 0 | 0 | ||
Compensation cost related to stock options | 0 | 0 | 0 | ||
Net foreign exchange losses (gain) | 0 | 0 | 0 | ||
Amortization of deferred tax benefits on intra-group transfers | 0 | 0 | 0 | ||
Impairment of long-term assets | 0 | 0 | 0 | ||
Impairment of loan receivable | 0 | 0 | 0 | ||
Drydocking expenditure | 0 | 0 | 0 | ||
Change in assets and liabilities, net of effects from the sale of Golar Eskimo, Golar Igloo and Golar Maria: | |||||
Restricted cash | 0 | 0 | 0 | ||
Trade accounts receivable | 0 | 0 | 0 | ||
Inventories | 0 | 0 | 0 | ||
Prepaid expenses, accrued income and other assets | 0 | 0 | 0 | ||
Amounts due from/to related companies | 0 | 0 | 0 | ||
Trade accounts payable | 0 | 0 | 0 | ||
Accrued expenses | 0 | 0 | 0 | ||
Other current liabilities | 27 | 9 | (10) | ||
Net cash (used in) provided by operating activities | 0 | 0 | 0 | ||
Investing activities | |||||
Additions to vessels and equipment | 0 | 0 | 0 | ||
Additions to newbuildings | 0 | 0 | 0 | ||
Additions to asset under development | 0 | 0 | 0 | ||
Investment in subsidiary, net of cash acquired | 0 | 0 | 0 | ||
Proceeds from disposal of investments in affiliates | 0 | 0 | 0 | ||
Additions to investment in affiliates | 0 | 0 | 0 | ||
Additions to investments | 0 | 0 | 0 | ||
Short-term loan granted to third party | 0 | 0 | 0 | ||
Repayment of short-term loan granted to third party | 0 | 0 | 0 | ||
Proceeds from disposals to Golar Partners, net of cash disposed | 0 | 0 | 0 | ||
Proceeds from disposal of high yield bond in Golar Partners | 0 | 0 | 0 | ||
Short-term loan granted to Golar Partners | 0 | 0 | 0 | ||
Additions to other long-term assets | 0 | 0 | 0 | ||
Repayment of short-term loan granted to Golar Partners | 0 | 0 | 0 | ||
Proceeds from disposal of fixed assets | 0 | 0 | 0 | ||
Restricted cash and short-term receivables | 0 | 0 | 0 | ||
Net cash used in investing activities | 0 | 0 | 0 | ||
Financing activities | |||||
Proceeds from short-term and long-term debt (including related parties) | 0 | 0 | 0 | ||
Repayments of short-term and long-term debt (including related parties) | 0 | 0 | 0 | ||
Financing costs paid | 0 | 0 | 0 | ||
Cash dividends paid | 0 | 0 | 0 | ||
Proceeds from exercise of share options | 0 | 0 | 0 | ||
Purchase of treasury shares | 0 | 0 | 0 | ||
Proceeds from issuance of equity | 0 | 0 | 0 | ||
Restricted cash and short-term receivables | 0 | 0 | 0 | ||
Net cash provided by financing activities | 0 | 0 | 0 | ||
Net (decrease) increase in cash and cash equivalents | 0 | 0 | 0 | ||
Cash and cash equivalents at beginning of period | 0 | 0 | 0 | ||
Cash and cash equivalents at end of period | 0 | 0 | 0 | ||
Cash paid during the year for: | |||||
Interest paid, net of capitalized interest | 0 | 0 | 0 | ||
Income taxes paid | $ 0 | $ 0 | $ 0 | ||
[1] | This includes amounts arising from transactions with related parties (see note 31). | ||||
[2] | Includes accretion of discount on convertible bonds of $5.3 million, $5.0 million and $4.7 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
RESTATEMENT OF PREVIOUSLY IS149
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Details) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Increase (Decrease) in Stockholders' Equity | |||
Balance at beginning of the period | $ 2,237,422 | $ 1,771,727 | $ 1,755,947 |
Net (loss) income | (151,988) | (46,362) | 109,555 |
Dividends | (161,824) | (155,996) | (108,976) |
Exercise of share options | 225 | 1,338 | 608 |
Grant of share options | 6,358 | 1,619 | 500 |
Net proceeds from issuance of shares | 660,947 | ||
Forfeiture of share options | (2,521) | ||
Cancellation of share options | 786 | ||
Transfer of additional paid-in capital | 1,579 | ||
Other comprehensive income (loss) | (1,589) | 4,149 | 14,093 |
Treasury shares | (12,269) | ||
Balance at end of the period | 1,916,179 | 2,237,422 | 1,771,727 |
As Previously Reported | |||
Increase (Decrease) in Stockholders' Equity | |||
Balance at beginning of the period | 2,282,507 | ||
Net (loss) income | (178,501) | (41,466) | 135,713 |
Other comprehensive income (loss) | (42,001) | 11,928 | 11,973 |
Balance at end of the period | 1,894,339 | 2,282,507 | |
Adjustment | |||
Increase (Decrease) in Stockholders' Equity | |||
Balance at beginning of the period | (45,085) | ||
Net (loss) income | 26,513 | (4,896) | (26,158) |
Other comprehensive income (loss) | 40,412 | (7,779) | 2,120 |
Balance at end of the period | 21,840 | (45,085) | |
Share Capital | |||
Increase (Decrease) in Stockholders' Equity | |||
Balance at beginning of the period | 93,415 | 80,580 | 80,504 |
Exercise of share options | 132 | 185 | 76 |
Net proceeds from issuance of shares | 12,650 | ||
Balance at end of the period | 93,547 | 93,415 | 80,580 |
Treasury Shares | |||
Increase (Decrease) in Stockholders' Equity | |||
Balance at beginning of the period | 0 | 0 | 0 |
Treasury shares | (12,269) | ||
Balance at end of the period | (12,269) | 0 | 0 |
Additional Paid-in Capital | |||
Increase (Decrease) in Stockholders' Equity | |||
Balance at beginning of the period | 1,307,087 | 656,018 | 654,042 |
Exercise of share options | 93 | 1,153 | 1,476 |
Grant of share options | 6,358 | 1,619 | 500 |
Net proceeds from issuance of shares | 648,297 | ||
Forfeiture of share options | (2,521) | ||
Cancellation of share options | 786 | ||
Transfer of additional paid-in capital | 6,003 | ||
Balance at end of the period | 1,317,806 | 1,307,087 | 656,018 |
Contributed Surplus | |||
Increase (Decrease) in Stockholders' Equity | |||
Balance at beginning of the period | 200,000 | 200,000 | 200,000 |
Balance at end of the period | 200,000 | 200,000 | 200,000 |
Accumulated Other Comprehensive Loss | |||
Increase (Decrease) in Stockholders' Equity | |||
Balance at beginning of the period | (6,579) | (10,728) | (24,821) |
Transfer of additional paid-in capital | (4,424) | ||
Other comprehensive income (loss) | (1,589) | 4,149 | 14,093 |
Balance at end of the period | (12,592) | (6,579) | (10,728) |
Accumulated Other Comprehensive Loss | As Previously Reported | |||
Increase (Decrease) in Stockholders' Equity | |||
Balance at beginning of the period | 5,171 | (6,757) | (18,730) |
Transfer of additional paid-in capital | (4,424) | ||
Other comprehensive income (loss) | (42,001) | 11,928 | 11,973 |
Balance at end of the period | (41,254) | 5,171 | (6,757) |
Accumulated Other Comprehensive Loss | Adjustment | |||
Increase (Decrease) in Stockholders' Equity | |||
Balance at beginning of the period | (11,750) | (3,971) | (6,091) |
Other comprehensive income (loss) | 40,412 | (7,779) | 2,120 |
Balance at end of the period | 28,662 | (11,750) | (3,971) |
Accumulated Earnings | |||
Increase (Decrease) in Stockholders' Equity | |||
Balance at beginning of the period | 641,844 | 845,857 | 846,222 |
Net (loss) income | (171,146) | (48,017) | 109,555 |
Dividends | (161,824) | (155,996) | (108,976) |
Exercise of share options | (944) | ||
Balance at end of the period | 308,874 | 641,844 | 845,857 |
Accumulated Earnings | As Previously Reported | |||
Increase (Decrease) in Stockholders' Equity | |||
Balance at beginning of the period | 675,179 | 874,296 | 848,503 |
Net (loss) income | (197,659) | (43,121) | 135,713 |
Dividends | (161,824) | (155,996) | (108,976) |
Exercise of share options | (944) | ||
Balance at end of the period | 315,696 | 675,179 | 874,296 |
Accumulated Earnings | Adjustment | |||
Increase (Decrease) in Stockholders' Equity | |||
Balance at beginning of the period | (33,334) | (28,439) | (2,281) |
Net (loss) income | 26,513 | (4,896) | (26,158) |
Balance at end of the period | (6,822) | (33,334) | (28,439) |
Non-controlling Interest | |||
Increase (Decrease) in Stockholders' Equity | |||
Balance at beginning of the period | 1,655 | 0 | 0 |
Net (loss) income | 19,158 | 1,655 | |
Balance at end of the period | $ 20,813 | $ 1,655 | $ 0 |