Variable Interest Entities ("VIE") | VARIABLE INTEREST ENTITIES ("VIE") 9.1 Lessor VIEs As of September 30, 2020, we leased ten (December 31, 2019: eight) vessels from VIEs as part of sale and leaseback agreements, of which four were with ICBC Finance Leasing Co. Ltd (“ICBCL”) entities, one with a China Merchants Bank Co. Ltd. (“CMBL”) entity, one with a CCB Financial Leasing Corporation Limited (“CCBFL”) entity, one with a COSCO Shipping entity, two with China State Shipbuilding Corporation (“CSSC”) entities and one with a AVIC International Leasing Company Limited (“AVIC”) entity. Each of the ICBCL, CMBL, CCBFL, COSCO Shipping, CSSC and AVIC entities are wholly-owned, newly formed special purpose vehicles (“Lessor SPVs”). In each of these transactions, we sold our vessel and then subsequently leased back the vessel on a bareboat charter for a term of one While we do not hold any equity investments in the above Lessor 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 lessor 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. Similarly, the effect of the bareboat charter arrangement is eliminated upon consolidation of the Lessor SPV. The equity attributable to the respective lessor VIEs are included in non-controlling interests in our consolidated results. As of September 30, 2020 and December 31, 2019, the respective vessels are reported under “Vessels and equipment, net” or “Assets under development” in our consolidated balance sheets. A summary of our payment obligations (excluding repurchase options and obligations) under the bareboat charters with the lessor VIEs as of September 30, 2020, are shown below: (in thousands of $) 2020 (1) 2021 2022 2023 2024 2025+ Golar Glacier 4,310 17,100 17,100 17,100 12,884 — Golar Kelvin 4,310 17,100 17,100 17,100 15,695 — Golar Snow 4,310 17,100 17,100 17,100 15,695 — Golar Ice 4,310 17,100 17,100 17,100 17,147 1,452 Golar Tundra (2) 4,498 17,604 17,051 16,498 15,953 12,863 Golar Seal 3,382 13,717 13,717 13,754 13,717 13,717 Golar Crystal (2) 2,451 9,804 9,840 9,866 9,901 22,335 Hilli (2) 25,489 100,180 97,187 94,194 91,273 275,722 LNG Croatia (2) 114,497 — — — — — Golar Bear (2) 3,511 13,793 13,373 12,952 12,541 26,124 (1) For the three months ending December 31, 2020. (2) The payment obligations relating to the Golar Tundra , Golar Crystal, Hilli, LNG Croatia and Golar Bear above includes variable rental payments due under the lease based on an assumed LIBOR plus margin. The assets and liabilities of these lessor VIEs that most significantly impact our consolidated balance sheet as of September 30, 2020 and December 31, 2019, are as follows: (in thousands of $) Golar Glacier Golar Kelvin Golar Snow Golar Ice Golar Tundra Golar Seal Golar Crystal Hilli LNG Croatia Golar Bear September 30, 2020 December 31, 2019 Assets Total Total Restricted cash and short-term deposits 9 1,461 1,461 9 — 13,804 5,074 28,608 6,033 5,279 61,738 34,947 Liabilities Debt: Current portion of long-term debt and short-term debt (1) (114,875) (134,322) (115,408) (88,107) (10,293) — (8,092) (431,465) (115,225) — (1,017,787) (963,005) Long-term interest bearing debt - non-current portion (1) — — — — (82,406) (100,408) (77,135) (292,592) — (103,498) (656,039) (617,124) (114,875) (134,322) (115,408) (88,107) (92,699) (100,408) (85,227) (724,057) (115,225) (103,498) (1,673,826) (1,580,129) (1) Where applicable, these balances are net of deferred finance charges. The most significant impact of the lessor VIE's operations on our unaudited consolidated statements of income, and unaudited consolidated statements of cash flows, are as follows: (in thousands of $) Nine months ended September 30, 2020 2019 Statement of income Interest expense 27,752 51,445 Statement of cash flows Net debt repayments (352,046) (294,413) Net debt receipts 444,307 144,278 9.2 Golar Hilli LLC Following the sale of common units in Golar Hilli LLC ("Hilli LLC"), we have retained sole control over the most significant activities and the greatest exposure to variability in residual returns and expected losses from the Hilli . Accordingly, management has concluded that Hilli LLC is a VIE and that we are the primary beneficiary. Summarized financial information of Hilli LLC The assets and liabilities of Hilli LLC (1) that most significantly impact our consolidated balance sheet are as follows: (in thousands of $) September 30, 2020 December 31, 2019 Balance sheet Current assets 80,604 64,507 Non-current assets 1,223,490 1,300,605 Current liabilities (473,195) (496,029) Non-current liabilities (363,630) (418,578) (1) As Hilli LLC is the primary beneficiary of the Hilli Lessor VIE (see above) the Hilli LLC balances include the Hilli Lessor VIE. The most significant impact of Hilli LLC VIE's operations on our unaudited consolidated statements of income, and unaudited consolidated statements of cash flows, are as follows: (in thousands of $) Nine months ended September 30, 2020 2019 Statement of operations Liquefaction services revenue 163,572 163,572 Realized and unrealized (loss)/gain on oil derivative instrument (36,861) (31,441) Statement of cash flows Net debt repayments (281,972) (204,447) Net debt receipts 223,821 129,454 9.3 Gimi MS Corporation Following the closing of the sale of 30% of the common units of Gimi MS Corporation ("Gimi MS") to First FLNG Holdings in April 2019, we have determined that (i) Gimi MS is a VIE, (ii) we are the primary beneficiary and retain sole control over the most significant activities and the greatest exposure to variability in residual returns and expected losses from the Gimi . Thus Gimi MS continues to be consolidated into our financial statements. Summarized financial information of Gimi MS The assets and liabilities of Gimi MS that most significantly impact our consolidated balance sheet are as follows: (in thousands of $) September 30, 2020 December 31, 2019 Balance sheet Current assets 789 24,894 Non-current assets 598,678 434,248 Current liabilities (73,536) (9,697) Non-current liabilities (202,783) (107,902) The most significant impact of Gimi MS VIE's operations on our unaudited consolidated statements of cash flows, is as follows: (in thousands of $) Nine months ended September 30, 2020 2019 Statement of cash flows Additions to asset under development 142,397 145,358 Net debt receipts 95,000 — Proceeds from subscription of equity interest 7,098 77,086 |