Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2014 | |
Document and entity information: | |
Entity Registrant Name | Golar LNG Partners LP |
Entity Central Index Key | 1415916 |
Current Fiscal Year End Date | -19 |
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 | 45,663,096 |
Document Fiscal Year Focus | 2014 |
Document Fiscal Period Focus | FY |
Document Type | 20-F |
Amendment Flag | FALSE |
Document Period End Date | 31-Dec-14 |
Consolidated_and_Combined_Carv
Consolidated and Combined Carve-Out Statements of Operations (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Operating revenues | ||||||
Time charter revenues | $396,026,000 | $329,190,000 | $286,630,000 | |||
Total operating revenues | 396,026,000 | 329,190,000 | 286,630,000 | |||
Operating expenses | ||||||
Vessel operating expenses | 59,191,000 | [1] | 52,390,000 | [1] | 45,474,000 | [1] |
Voyage and charter-hire expenses | 6,048,000 | 5,239,000 | 4,471,000 | |||
Administrative expenses | 5,757,000 | [2] | 5,194,000 | [2] | 7,269,000 | [2] |
Depreciation and amortization | 80,574,000 | 66,336,000 | 51,167,000 | |||
Total operating expenses | 151,570,000 | 129,159,000 | 108,381,000 | |||
Operating income (loss) | 244,456,000 | 200,031,000 | 178,249,000 | |||
Financial income (expenses) | ||||||
Interest income | 1,131,000 | 1,097,000 | 1,797,000 | |||
Interest expense | -43,781,000 | [3] | -43,195,000 | [3] | -38,090,000 | [3] |
Other financial items, net | -22,118,000 | -1,661,000 | -5,389,000 | |||
Net financial expenses | -64,768,000 | -43,759,000 | -41,682,000 | |||
Income (loss) before equity in net losses of affiliates, income taxes and non-controlling interests | 179,688,000 | 156,272,000 | 136,567,000 | |||
Income taxes | 5,047,000 | -5,453,000 | -9,426,000 | |||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 184,735,000 | 150,819,000 | 127,141,000 | [4] | ||
Net (income) loss attributable to non-controlling interests | -10,581,000 | -9,523,000 | -10,723,000 | |||
Net income attributable to Golar LNG Partners LP Owners | 174,154,000 | 141,296,000 | 116,418,000 | |||
Dropdown Predecessors Interest Net Income Loss | 0 | 0 | 28,015,000 | |||
General Partner’s interest in net income (4) | 23,908,000 | [5] | 13,796,000 | [5] | 2,750,000 | [5] |
Limited Partners’ interest in net income | 150,246,000 | 127,500,000 | 85,653,000 | |||
Per common share amounts: | ||||||
Cash dividends declared and paid (in dollars per share) | $2.14 | $2.05 | [6] | $1.78 | [6] | |
Costs and Expenses, Related Party | 7,746,000 | [7] | 6,701,000 | [7] | 4,222,000 | [7] |
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | 2,877,000 | [8] | 2,569,000 | [8] | 2,876,000 | [8] |
Interest Expense, Related Party | 0 | 2,000,000 | 18,100,000 | |||
Net income (loss) allocated to IDRs (P&L) | 18,300,000 | 11,000,000 | 0 | |||
Common Units [Member] | ||||||
Per common share amounts: | ||||||
Earnings Per Share, Basic and Diluted | $2.47 | $2.31 | $2.08 | |||
Golar Igloo [Member] | ||||||
Financial income (expenses) | ||||||
Net income (loss) | $22,300,000 | |||||
[1] | This includes related party ship management fee recharges of $7.7 million, $6.7 million and $4.2 million for the years ended December 31, 2014, 2013 and 2012, respectively. See note 25. | |||||
[2] | This includes related party management and administrative fee recharges of $2.9 million, $2.6 million and $2.9 million for the years ended December 31, 2014, 2013 and 2012, respectively. See note 25. | |||||
[3] | This includes related party interest expense of $nil, $2.0 million and $18.1 million for the years ended December 31, 2014, 2013 and 2012, respectively. See note 25. | |||||
[4] | The post acquisition net income in 2012 relating to the NR Satu (from July 19, 2012 to December 31, 2012) and the Golar Grand (from November 8, 2012 to December 31, 2012) included within net income amounted to $11.5 million and $4.8 million, respectively. | |||||
[5] | This includes net income attributable to IDR holders of $18.3 million, $11.0 million and $nil for the years ended December 31, 2014, 2013 and 2012, respectively.* 2014 and 2013 refers to the Consolidated Statements of Operations. ** 2012 refers to the Consolidated and Combined Carve-out Statement of Operations. | |||||
[6] | Refers to cash distributions declared and paid during the period. | |||||
[7] | Ship management fees - Golar and certain of its affiliates charged ship management fees to us for the provision of technical and commercial management of the vessels. Each of our vessels is subject to management agreements pursuant to which certain commercial and technical management services are provided by certain affiliates of Golar, including Golar Management and Golar Wilhelmsen AS ("Golar Wilhelmsen"), a partnership that is jointly controlled by Golar and by Wilhelmsen Ship Management (Norway) AS. | |||||
[8] | Management and administrative services agreement - On March 30, 2011, we entered into a management and administrative services agreement with Golar Management, a wholly-owned subsidiary of Golar, pursuant to which Golar Management will provide to us 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. We may terminate the agreement by providing 120 days' written notice. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
COMPREHENSIVE INCOME (LOSS) | ||||||
Net income (loss) | $184,735 | $150,819 | $127,141 | [1] | ||
Other comprehensive (loss) income: | ||||||
Unrealized net gain (loss) on qualifying cash flow hedging instruments | -1,031 | [2] | 7,370 | [2] | -3,950 | [2] |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 1,339 | [3] | -775 | [3] | 0 | [3] |
Other comprehensive income (loss) | 308 | 6,595 | -3,950 | |||
Comprehensive income (loss) | 185,043 | 157,414 | 123,191 | |||
Comprehensive income (loss) attributable to: | ||||||
Comprehensive Income Owners And Dropdown Predecessors Equity | 174,462 | 147,891 | 112,468 | |||
Non-controlling interests | $10,581 | $9,523 | $10,723 | |||
[1] | The post acquisition net income in 2012 relating to the NR Satu (from July 19, 2012 to December 31, 2012) and the Golar Grand (from November 8, 2012 to December 31, 2012) included within net income amounted to $11.5 million and $4.8 million, respectively. | |||||
[2] | There is no tax impact on any of the periods presented. | |||||
[3] | Amounts reclassified from accumulated other comprehensive income (loss) to 'Other financial items, net' on the consolidated and combined carve-out statements of operations relate to losses (gains) on cash flow hedges in respect of interest rate swaps. |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets | ||
Cash and cash equivalents | $98,998 | $103,100 |
Restricted cash and short-term investments | 25,831 | 24,451 |
Trade accounts receivable | 9,122 | 717 |
Other receivables, prepaid expenses and accrued income | 7,516 | 7,026 |
Inventories | 89 | 1,085 |
Total current assets | 141,556 | 136,379 |
Long-term assets | ||
Restricted Cash | 146,552 | 145,725 |
Vessels and equipment, net | 1,501,170 | 1,281,591 |
Vessels under capital leases, net | 122,253 | 127,693 |
Intangible Assets, Net | 16,032 | 0 |
Deferred charges | 13,356 | 14,270 |
Other non-current assets | 15,283 | 15,561 |
Total assets | 1,956,202 | 1,721,219 |
Current liabilities | ||
Short-Term Debt, Due To Related Parties, Current | 20,000 | 0 |
Current portion of long-term debt | 124,221 | 156,363 |
Trade accounts payable | 2,621 | 1,587 |
Accrued expenses | 21,700 | 20,088 |
Amounts due to related parties | 9,851 | 5,989 |
Other current liabilities | 99,481 | 57,045 |
Total current liabilities | 277,874 | 241,072 |
Long-term liabilities | ||
Long-term debt | 908,311 | 733,108 |
Obligations under capital leases | 150,997 | 159,008 |
Other long-term liabilities | 17,281 | 17,904 |
Total liabilities | 1,354,463 | 1,151,092 |
Common unitholders | 490,824 | 475,610 |
Subordinated unitholders | 12,063 | 6,900 |
General Partners' Capital Account | 33,320 | 19,234 |
Partners' Capital | 536,207 | 501,744 |
EQUITY | ||
Accumulated other comprehensive loss | -2,086 | -2,394 |
Total stockholders' equity | 534,121 | 499,350 |
Non-controlling interests | 67,618 | 70,777 |
Total equity | 601,739 | 570,127 |
Total liabilities and equity | $1,956,202 | $1,721,219 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (Parentheticals) | Dec. 31, 2014 | Dec. 31, 2013 |
Consolidated Balance Sheets (Parenthetical) [Abstract] | ||
Limited Partners' Capital Account, Units Issued | 45,663,096 | 45,663,096 |
Limited Partners' Capital Account, Units Outstanding | 45,663,096 | 45,663,096 |
Subordinated units, Units Issued | 15,949,831 | 15,949,831 |
Subordinated units, Units Outstanding | 15,949,831 | 15,949,831 |
General Partners' Capital Account, Units Issued | 1,257,408 | 1,257,408 |
General Partners' Capital Account, Units Outstanding | 1,257,408 | 1,257,408 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Operating activities | ||||||
Net income (loss) | $184,735 | $150,819 | $127,141 | [1] | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||
Depreciation and amortization | 80,574 | 66,336 | 51,167 | |||
Recognition of foreign tax losses | -11,832 | 0 | 0 | |||
Deferred Income Tax Expense (Benefit) | 2,308 | 0 | 0 | |||
Amortization of deferred tax benefit on intragroup transfers | 0 | 0 | -912 | |||
Amortization of deferred charges | 3,554 | 5,828 | 1,123 | |||
Unrealized foreign exchange losses (gains) | -674 | -7,435 | 13,893 | |||
Drydocking expenditure | -2,468 | -50,979 | -8,288 | |||
Interest element included in obligations under capital leases | 1,639 | 233 | 401 | |||
Trade accounts receivable | -1,989 | -717 | 173 | |||
Inventories | 1,005 | 971 | -849 | |||
Prepaid expenses, accrued income and other assets | 8,901 | -9,747 | -6,948 | |||
Amount due from/to related companies | 6,659 | 1,581 | 3,781 | |||
Trade accounts payable | 755 | -1,820 | 2,617 | |||
Accrued expenses | 24 | -6,632 | 14,015 | |||
Other current liabilities | 3,789 | 241 | -7,971 | |||
Net cash provided by operating activities | 276,980 | 148,679 | 189,343 | |||
Investing activities | ||||||
Additions to vessels and equipment | -1,293 | -18,152 | -72,286 | |||
Payments to Acquire Businesses, Net of Cash Acquired | -155,319 | [2] | -119,927 | [2] | 0 | [2] |
Restricted cash and short-term investments | -11,143 | 54,027 | -6,512 | |||
Net cash (used in) provided by investing activities | -167,755 | -84,052 | -78,798 | |||
Financing activities | ||||||
Proceeds from issuance of equity | 0 | 280,586 | 401,851 | |||
Proceeds from short-term debt due to related parties | 20,000 | 20,000 | 0 | |||
Proceeds from long-term debt (including related parties) | 115,000 | 230,000 | 537,194 | |||
Repayments of Related Party Debt | 0 | -20,000 | 0 | |||
Repayments of long-term debt (including related parties) | -93,558 | -149,822 | -427,217 | |||
Repayments of obligations under capital leases | -41 | -2,365 | -6,287 | |||
Cash Paid for Lease Termination | 0 | -250,980 | 0 | |||
Financing costs paid | -846 | -4,794 | -8,400 | |||
Non-controlling interest dividends | -13,740 | -10,604 | -1,799 | |||
Cash dividends paid | -140,142 | -119,875 | -77,588 | |||
Distribution to Golar for acquisition of the NR Satu | 0 | 0 | -387,993 | |||
Distribution to Golar for acquisition of the Golar Grand | 0 | 0 | -176,769 | |||
Contributions from ownerbs funding | 0 | 0 | 53,572 | |||
Net cash provided by (used in) financing activities | -113,327 | -27,854 | -93,436 | |||
Net increase (decrease) in cash and cash equivalents | -4,102 | 36,773 | 17,109 | |||
Cash and cash equivalents at beginning of period | 103,100 | 66,327 | 49,218 | |||
Cash and cash equivalents at end of period | 98,998 | 103,100 | 66,327 | |||
Cash paid during the year for: | ||||||
Interest paid, net of capitalized interest | 43,011 | 44,651 | 40,858 | |||
Income taxes paid | $2,707 | $5,575 | $1,444 | |||
[1] | The post acquisition net income in 2012 relating to the NR Satu (from July 19, 2012 to December 31, 2012) and the Golar Grand (from November 8, 2012 to December 31, 2012) included within net income amounted to $11.5 million and $4.8 million, respectively. | |||||
[2] | In addition to the cash consideration paid for the acquisition of the Golar Igloo and Golar Maria in 2014 and 2013 respectively, there was a non-cash consideration in relation to the assumption of bank debts of $161.3 million and $89.5 million, respectively (see note 10). |
Consolidated_and_Combined_Carv1
Consolidated and Combined Carve-Out Statements of Cash Flows (Parenthetical) (Parentheticals) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Golar Igloo [Member] | ||
Business Acquisition [Line Items] | ||
Noncash or Part Noncash Acquisition, Debt Assumed | $161.30 | |
Golar Maria [Member] | ||
Business Acquisition [Line Items] | ||
Noncash or Part Noncash Acquisition, Debt Assumed | $89.50 |
Consolidated_and_Combined_Carv2
Consolidated and Combined Carve-Out Statements of Changes in Partners' Capital / Owners' and Dropdown Predecessor Equity (USD $) | Total | Dropdown Predecessor Equity | Common Units | Subordinated Units | General Partner | Accumulated Other Comprehensive Income (loss) | Total before Non- controlling interest | Non- controlling Interest | ||||
In Thousands, unless otherwise specified | ||||||||||||
Partners' Capital, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2011 | $298,033 | $208,069 | $30,163 | $369 | $1,537 | ($5,039) | $235,099 | $62,934 | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||||||
Net Income (Loss) | [1] | 127,141 | 28,015 | 53,998 | 31,655 | 2,750 | 0 | 116,418 | 10,723 | |||
Movement in invested equity | 53,572 | 53,572 | 0 | 0 | 0 | 0 | 53,572 | 0 | ||||
Non-controlling interest dividend | -1,799 | 0 | 0 | 0 | 0 | 0 | 0 | -1,799 | ||||
Other comprehensive income (loss) | -3,950 | 0 | 0 | 0 | 0 | -3,950 | -3,950 | 0 | ||||
Dividends | -77,588 | 0 | -47,725 | -28,311 | -1,552 | 0 | -77,588 | 0 | ||||
Net proceeds from issuance of common units | 401,851 | 0 | 393,814 | 0 | 8,037 | 0 | 401,851 | 0 | ||||
Elimination of equity not transferred to the Partnership | 9,046 | 9,046 | 0 | 0 | 0 | 0 | 9,046 | 0 | ||||
Purchase of NR Satu from Golar (note 25(k)) | -387,993 | -387,993 | 0 | 0 | 0 | 0 | -387,993 | 0 | ||||
Allocation of Dropdown Predecessor equity - NR Satu (note 25(k)) | 0 | 132,321 | -129,671 | 0 | -2,650 | 0 | 0 | 0 | ||||
Purchase of Golar Grand from Golar (note 25(k)) | -176,769 | -176,769 | 0 | 0 | 0 | 0 | -176,769 | 0 | ||||
Allocation of Dropdown Predecessor equity - Golar Grand (note 25(k)) | 0 | 133,739 | -131,064 | 0 | -2,675 | 0 | 0 | 0 | ||||
Partners' Capital, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2012 | 241,544 | 0 | 169,515 | 3,713 | 5,447 | -8,989 | 169,686 | 71,858 | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||||||
Net Income (Loss) | 150,819 | 0 | 91,576 | [1] | 35,924 | [1] | 13,796 | [1] | 0 | 141,296 | 9,523 | |
Non-controlling interest dividend | -10,604 | 0 | 0 | 0 | 0 | 0 | 0 | -10,604 | ||||
Other comprehensive income (loss) | 6,595 | 0 | 0 | 0 | 0 | 6,595 | 6,595 | 0 | ||||
Dividends | [2] | -119,875 | 0 | -81,096 | -32,737 | -6,042 | 0 | -119,875 | 0 | |||
Net proceeds from issuance of common units | 280,586 | 0 | 274,974 | 0 | 5,612 | 0 | 280,586 | 0 | ||||
Contribution to equity | [3] | 21,062 | 0 | 20,641 | 0 | 421 | 0 | 21,062 | 0 | |||
Partners' Capital, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2013 | 570,127 | 0 | 475,610 | 6,900 | 19,234 | -2,394 | 499,350 | 70,777 | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||||||
Net Income (Loss) | 184,735 | 0 | 111,351 | [1] | 38,895 | [1] | 23,908 | [1] | 0 | 174,154 | 10,581 | |
Non-controlling interest dividend | -13,740 | 0 | 0 | 0 | 0 | 0 | 0 | -13,740 | ||||
Other comprehensive income (loss) | 308 | 0 | 0 | 0 | 0 | 308 | 308 | 0 | ||||
Dividends | [2] | -140,142 | 0 | -96,577 | -33,732 | -9,833 | 0 | -140,142 | 0 | |||
Contribution to equity | [3] | 451 | 0 | 440 | 0 | 11 | 0 | 451 | 0 | |||
Partners' Capital, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2014 | $601,739 | $0 | $490,824 | $12,063 | $33,320 | ($2,086) | $534,121 | $67,618 | ||||
[1] | The post acquisition net income in 2012 relating to the NR Satu (from July 19, 2012 to December 31, 2012) and the Golar Grand (from November 8, 2012 to December 31, 2012) included within net income amounted to $11.5 million and $4.8 million, respectively. | |||||||||||
[2] | This includes cash distributions to IDR holders for the year ended December 31, 2014 and 2013 of $5.6 million and $3.7 million, respectively. | |||||||||||
[3] | In June 2013, the Golar Winter and the Golar Grand were refinanced. We made a cash payment of $251.0 million to the lessors to terminate the respective lease financing arrangements (including the associated Golar Winter currency swap of $25.3 million) and to acquire the legal title of both these vessels. The transaction to acquire the legal title of the vessels was between controlled entities, thus, the vessels continue to be recorded at their historical book values and the difference between the cash payment made and the carrying value of the vessels is an equity contribution. The contribution recognized was $21.1 million. |
Consolidated_and_Combined_Carv3
Consolidated and Combined Carve-Out Statements of Changes in Partners' Capital / Owners' and Dropdown Predecessor Equity (Parentheticals) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | |||
Net Income (Loss) Attributable to Parent | $174,154,000 | $141,296,000 | ||
Cash Paid for Lease Termination | 0 | -250,980,000 | ||
Fair value of swap at termination | 25,300,000 | |||
Contribution to equity | 451,000 | [1] | 21,062,000 | [1] |
NR Satu [Member] | ||||
Net Income (Loss) Attributable to Parent | 11,500,000 | |||
Golar Grand [Member] | ||||
Net Income (Loss) Attributable to Parent | 4,800,000 | |||
Incentive Distribution Rights [Member] | ||||
Partners' Capital Account, Distributions | $5,600,000 | $3,700,000 | ||
[1] | In June 2013, the Golar Winter and the Golar Grand were refinanced. We made a cash payment of $251.0 million to the lessors to terminate the respective lease financing arrangements (including the associated Golar Winter currency swap of $25.3 million) and to acquire the legal title of both these vessels. The transaction to acquire the legal title of the vessels was between controlled entities, thus, the vessels continue to be recorded at their historical book values and the difference between the cash payment made and the carrying value of the vessels is an equity contribution. The contribution recognized was $21.1 million. |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | GENERAL |
Golar LNG Partners LP (the "Partnership," "we," "our," or "us") was formed as an indirect wholly-owned subsidiary of Golar LNG Limited ("Golar") in September 2007 under the laws of the Marshall Islands for the purpose of acquiring the interests in wholly-owned and partially owned subsidiaries of Golar. | |
In November 2008, Golar transferred to us interests in certain of its wholly-owned and partially owned subsidiaries that owned a 60% interest in a liquefied natural gas ("LNG") carrier, the Golar Mazo, and which leased the LNG carrier, the Methane Princess, and the floating storage and regasification unit ("FSRU"), the Golar Spirit. | |
In April 2011, Golar contributed to us the shares of a subsidiary which leased the FSRU, the Golar Winter. | |
During April 2011, we completed our initial public offering ("IPO"). In connection with the IPO, (i) we issued to Golar 23,127,254 common units and 15,949,831 subordinated units, representing a 98% limited partner interest in us; (ii) we issued to Golar GP LLC, a wholly-owned subsidiary of Golar and our general partner (the "General Partner"), a 2% general partner interest in us and 81% of our incentive distribution rights ("IDRs"); (iii) we issued to Golar LNG Energy Limited, a subsidiary of Golar ("Golar Energy"), 19% of the IDRs; (iv) Golar sold 13,800,000 common units to the public in the IPO and received gross proceeds of $310.5 million, all as further described in Note 3. | |
The transfers and contributions of the subsidiaries holding interests in the Golar Mazo, the Methane Princess and the Golar Spirit in November 2008, and the Golar Winter in April 2011 from Golar to us were deemed to be a reorganization of entities under common control. As a result, we recorded these transactions at Golar’s historical book values. Accordingly, prior to April 13, 2011 (the closing date of the IPO), Golar LNG Partners LP and its subsidiaries that have interests in four vessels, the Golar Mazo, the Methane Princess, the Golar Spirit and the Golar Winter ("Initial Fleet"), are collectively referred to as the "Combined Entity". | |
In October 2011 and July 2012, we acquired from Golar interests in subsidiaries that own and operate the FSRUs, the Golar Freeze and the Nusantara Regas Satu ("NR Satu"), respectively. In addition, in November 2012, we acquired from Golar interests in subsidiaries that lease and operate the LNG carrier, the Golar Grand. These transactions are also deemed to be a reorganization of entities under common control. As a result, our financial statements prior to the date the vessels were acquired were retroactively adjusted to include these vessels (herein collectively referred to as the "Dropdown Predecessor") during the periods they and we were under common control of Golar. The excess of the consideration paid by us over Golar’s historical costs is accounted for as an equity distribution to Golar (refer to note 25(k)). | |
Under the Partnership Agreement, the general partner has irrevocably delegated to our board of directors the power to oversee and direct the operations, manage and determine the strategies and policies of Golar Partners. During the period from the IPO in April 2011 until the time of our first annual general meeting ("AGM") on December 13, 2012, Golar retained the sole power to appoint, remove and replace all members of our board of directors. From the first AGM, four of our seven board members became electable by the common unitholders and accordingly, from this date, Golar no longer retains the power to control the board of directors and, hence, the Partnership. As a result, we are no longer considered to be under common control of Golar, and from December 13, 2012, we no longer account for vessel acquisitions from Golar as transfers of equity interests between entities under common control. | |
In February 2013 and March 2014, we acquired from Golar 100% interests in the subsidiaries that own and operate the LNG carrier, the Golar Maria, and the FSRU, the Golar Igloo, respectively, which we accounted for as acquisitions of a business. Accordingly, the results of the Golar Maria and the Golar Igloo are consolidated into our results from the date of their acquisitions. There has been no retroactive restatement of our financial statements to reflect the historical results of the Golar Maria and the Golar Igloo prior to their acquisition. | |
As of December 31, 2014, we operated a fleet of five FSRUs and four LNG carriers. Our vessels operate under long-term charter contracts with expiration dates between 2017 and 2024, except for the Golar Grand, which operates on a medium-term charter with an initial term that expired in February 2015. Please see note 25. | |
The consolidated financial statements have been prepared assuming that we will continue as a going concern. As of December 31, 2014, we recorded net current liabilities of $136.3 million. Included in current liabilities are short term loan obligations that mature before December 31, 2015 and are therefore, presented as current debt. We have a debt facility in respect of the Golar Maria of $79.5 million that matures in December 2015 and the commercial loan tranche under the Golar Freeze facility of $39.6 million that matures in June 2015. | |
In April 2015, we obtained a signed term sheet from certain lenders in an amount equal to the lesser of $180 million or 60% of the combined fair market value of the Golar Maria and Golar Freeze (of which $120 million is a binding commitment), to refinance the Golar Maria credit facility and the commercial loan tranche of the Golar Freeze credit facility. The entry into the new credit agreement to refinance these facilities is subject to the negotiation and execution of a definitive credit agreement and the satisfaction of conditions ordinarily contained in these types of credit agreements. There is no assurance that such proposed new credit agreement will be executed or that it will become effective prior to the maturity of the Golar Maria facility and the commercial loan tranche of the Golar Freeze facility. In addition, the cash expected to be generated from operations (assuming the current market rates from existing charters) will be sufficient to cover our operational cash outflows and our ongoing obligations under our financing commitments to pay loan interest and make scheduled loan repayments. Furthermore, included within current liabilities as of December 31, 2014, are: (i) mark-to-market valuations of swap derivatives of $71.9 million (includes $56.6 million mark-to-market valuations for our cross-currency interest rate swap). The swaps mature between 2016 and 2020. We have no intention of terminating these swaps before their maturity and hence realizing these liabilities; (ii) deferred dry docking and operating cost revenue of $20.6 million which relates to charter hire received in advance from our charterers, thus, no cash outflows are expected in respect of these liabilities in the next twelve months. |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Accounting Policies [Abstract] | ||||||||||
ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES | |||||||||
Basis of accounting | ||||||||||
These consolidated and combined financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. Investments in entities 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 we are deemed to be the primary beneficiary. All intercompany balances and transactions are eliminated. The non-controlling interests of the above mentioned subsidiaries are included in the 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. | ||||||||||
The accompanying consolidated and combined financial statements include the financial statements of the entities listed in Note 4. | ||||||||||
As discussed in note 1, from December 13, 2012, we are no longer considered to be under common control with Golar. Any references to consolidated and combined financial statements and allocations to historical combined carve-out financial statements pertain to periods prior to November 2012, the date of our last common control dropdown (Golar Grand). | ||||||||||
The consolidated and combined financial statements reflect the results of operations, cash flows and net assets of the Combined Entity including the Dropdown Predecessor, which have been carved out of the consolidated financial statements of Golar. The historical combined financial statements include revenues, expenses and cash flows directly attributable to our interests in the four vessels in the Initial Fleet and the Dropdown Predecessor. Accordingly, the historical combined carve-out financial statements for the year ended December 31, 2012 reflect allocations of certain expenses, including that of administrative expenses including share options and pension costs, mark-to-market of interest rate and foreign currency swap derivatives and amortization of deferred tax benefits on intragroup transfers. Allocated costs (income) included in the accompanying consolidated and combined statements of income are as follows: | ||||||||||
(in thousands of $) | 2012 | |||||||||
Administrative expenses | 1,365 | |||||||||
Pension costs | 220 | |||||||||
Net financial income | (149 | ) | ||||||||
1,436 | ||||||||||
For the year ended December 31, 2012, the above table includes allocated costs (income) for the combined entity for the Dropdown Predecessor, for the periods prior to their acquisition from Golar. | ||||||||||
These consolidated and combined financial statements include the results of operations and cashflows of the Combined Entity and the Dropdown Predecessor. In the preparation of these consolidated and combined financial statements, general and administrative expenses (including pension and stock-based compensation), income tax expense, and certain derivatives’ related expenses which were not directly attributable to the respective vessels have been allocated to us on the following basis: | ||||||||||
Amortization of deferred tax benefits on intragroup transfers has been reflected in these financial statements at Golar’s book value, as it was readily separable and identifiable within the books of Golar. | ||||||||||
Vessel operating expenses includes ship management fees for the provision of technical and commercial management of vessels, which have been allocated to us based on intercompany charges invoiced by Golar. | ||||||||||
Vessel operating expenses include an allocation of Golar’s defined benefit pension plan costs. Golar operates two defined benefit pension plans for itself and its subsidiaries: one for the crews and one for administrative personnel. The pension cost is calculated in the subsidiaries on a contribution basis and relates principally to crew whose employment cannot be tied to a specific vessel, as they were a shared resource across all vessels. Accordingly, the pension costs have been allocated based on the number of vessels in Golar’s fleet. | ||||||||||
Administrative expenses (including stock-based compensation, which are described further below) of Golar that cannot be attributed to a specific vessel and for which we were deemed to have received benefit have been allocated based on the number of vessels in Golar’s fleet. | ||||||||||
Administrative expenses include an allocation of Golar’s stock-based compensation costs. In respect of options awarded to certain employees and directors of Golar, whose employment or service cannot be specifically attributed to any specific vessel. Therefore, it is considered that we, as a part of Golar, received benefit from their services, and so should recognize a share of the respective cost. Accordingly, stock-based compensation costs have been allocated based on the number of vessels in Golar’s fleet. | ||||||||||
Other financial items include an allocation of Golar’s mark-to-market adjustments for interest rate swap and foreign currency swap derivatives. In respect of mark-to-market adjustments for interest rate swap derivatives these have been allocated on the basis of our proportion of Golar’s debt including capital leases. For foreign currency derivatives and related adjustments to earnings, these have been allocated on the basis of being separately identifiable and specifically for our benefit. | ||||||||||
Income tax expense has been determined for us on a separate returns basis. | ||||||||||
Management has deemed the related allocation reasonable to present the results of operations, and cash flows of the Combined Entity and Dropdown Predecessor on a stand-alone basis. However, the results of operations and cash flows of the Combined Entity and Dropdown Predecessor, which are presented as part of the results for the year ended December 31, 2012, may differ from those that would have been achieved had we operated autonomously for that year as we would have had additional administrative expenses, including legal, accounting, treasury and regulatory compliance and other costs normally incurred by a listed public entity for the periods prior to the IPO. Accordingly, the financial statements do not purport to be indicative of our future financial position, results of operations or cash flows. | ||||||||||
Business combinations | ||||||||||
Reorganization of entities under common control are accounted for similar to the pooling of interests method of accounting. Under this method, the carrying amount of net assets recognized in the balance sheets of each combining entity are carried forward to the balance sheet of the combined entity, and no other assets or liabilities are recognized as a result of the combination. The excess of the proceeds paid, if any, over the historical cost of the combining entity is accounted for as an equity distribution. In addition, re-organization of entities under common control are accounted for as if the transfer occurred from the date that both the combining entity and combined entity were both under the common control of Golar. Therefore, our financial statements prior to the date the interests in the combining entity were actually acquired are retroactively adjusted to include the results of the Combined Entity during the periods it was under common control of Golar. | ||||||||||
As discussed in note 1, following the first AGM of common unitholders on December 13, 2012, Golar ceased to control the board of directors as the majority of board members became electable by the common unitholders. As a result, we are no longer considered to be under common control with Golar. As a consequence, effective from December 13, 2012, we no longer account for vessel acquisitions from Golar as a transfer of equity interest between entities under common control. | ||||||||||
Business combinations are accounted for under the acquisition method. On acquisition, the identifiable assets, liabilities and contingent liabilities 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. The results of subsidiary undertakings are included from the date of acquisition. | ||||||||||
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the acquisition is recorded based on provisional amounts. During the measurement period, we will retrospectively adjust the provisional amounts recognized at the acquisition date reflecting new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. However, the measurement period does not exceed one year from the acquisition date. During the measurement period, we recognize adjustments to the provisional amounts as if the accounting for the business combination had been completed at the acquisition date and we revise comparative information for prior periods presented in financial statements as needed, including making any change in depreciation, amortization, or other income effects recognized in completing the initial accounting. | ||||||||||
Revenue and expense recognition | ||||||||||
Revenues include minimum lease payments under time charters, fees for repositioning vessels as well as the reimbursement of certain vessel operating and drydocking costs. Revenues generated from time charters, which we classified as operating leases, are recorded over the term of the charter as service is provided. We do not recognize revenues during days that the vessel is off-hire. Incentives for charterers to enter into lease agreements are spread evenly over the lease term. | ||||||||||
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. | ||||||||||
Reimbursement for drydocking costs is recognized evenly over the period to the next drydocking, which is generally between two to five years. | ||||||||||
Under our time charters, the majority of voyage expenses are 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 off-hire, 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. | ||||||||||
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 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. | ||||||||||
We use a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return regarding uncertainties in income tax positions. The first step is recognition: we determine whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The second step is measurement: a tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. | ||||||||||
Penalties and interest related to uncertain tax positions are recognized in "Income taxes" in the Consolidated and Carve-out Statements of Operations. | ||||||||||
Comprehensive Income | ||||||||||
As of December 31, 2014, 2013 and 2012, our accumulated other comprehensive loss consisted of the following components: | ||||||||||
(in thousands of $) | 2014 | 2013 | 2012 | |||||||
Unrealized net loss on qualifying cash flow hedging instruments | (2,086 | ) | (2,394 | ) | (8,989 | ) | ||||
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 investments | ||||||||||
Restricted cash and short-term investments consist of bank deposits, which may only be used to settle certain pre-arranged loan or lease payments and which are held as cash collateral required for certain swaps. We consider all short-term investments as held to maturity. These investments are carried at amortized cost. We place our short-term investments primarily in fixed term deposits with high credit quality financial institutions. | ||||||||||
Trade accounts 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. | ||||||||||
Vessels and equipment | ||||||||||
Vessels are stated at cost less accumulated depreciation. The cost of vessels less the estimated residual value is depreciated on a straight-line basis over the assets’ remaining useful economic lives. 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. | ||||||||||
Cost of building the mooring equipment is capitalized and depreciated over the initial lease term of the related charter. | ||||||||||
Refurbishment costs incurred during the period are capitalized as part of vessels 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. | ||||||||||
Useful lives applied in depreciation are as follows: | ||||||||||
Vessels | 40 to 55 years | |||||||||
Drydocking expenditure | two to five years | |||||||||
Mooring equipment | 11 years | |||||||||
Vessel under capital lease | ||||||||||
We lease a vessel under an agreement that has been accounted for as a capital lease. Obligation under capital lease is carried at the present value of future minimum lease payments, and the asset balance is amortized on a straight-line basis over the remaining economic useful life of the vessel. Interest expense is calculated at a constant rate over the term of the lease. | ||||||||||
Depreciation of the vessel under capital lease is included within depreciation and amortization expense in the statement of operations. The vessel under capital lease is depreciated on a straight-line basis over the vessel's remaining useful economic life, based on a useful life of 40 years. Refurbishment costs and drydocking expenditures incurred in respect of vessel under capital lease is accounted for consistently as that of an owned vessel. | ||||||||||
Our capital lease is ‘funded’ via long term cash deposits which closely match the lease liability. Future changes in the lease liability arising from interest rate changes are only partially offset by changes in interest income on the cash deposits, and where differences arise, this is funded by, or released to, available working capital. | ||||||||||
Income derived from the sale of subsequently leased assets is deferred and amortized in proportion to the amortization of the leased assets (see note 23). Amortization of deferred income is offset against depreciation and amortization expense in the statement of operations. | ||||||||||
Intangible assets | ||||||||||
Intangible assets pertain to customer related and contract based assets representing primarily long-term time charter party agreements acquired in connection with the acquisition of certain subsidiaries from Golar. Intangible assets identified are recorded at fair value. Fair value is determined by reference to the discounted amount of expected future cash flows. These intangible assets are amortized over the term of the time charter party agreement and the amortization expense is included in the statement of operations in the depreciation and amortization line item. Impairment testing is performed when events or changes in circumstances indicate that the carrying amount of the intangible asset may not be recoverable. | ||||||||||
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 and includes vessels undergoing retrofitting 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, over the term period from commencement of the conversion work until substantially all the activities necessary to prepare the assets for its intended use are complete. | ||||||||||
Impairment of long-lived assets | ||||||||||
We continually monitor events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. In assessing the recoverability of our vessels’ carrying amounts, we make assumptions regarding estimated future cash flows and estimates in respect of residual or scrap value. 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. | ||||||||||
The following table presents the market values and carrying values of certain of our vessels that we have determined to have a market value that is less than their carrying value as of December 31, 2014. However, it should be noted that these vessels have existing operating contracts where the remaining term is significant and the estimated future undiscounted cash flows relating to such contracts are sufficiently greater than the carrying value of the vessels. While the market values of these vessels are below their carrying values, no vessel impairment has been recognized on any of these vessels as the estimated future undiscounted cash flows relating to such vessels are greater than their carrying values. | ||||||||||
(in thousands of $) | ||||||||||
Vessel | 2014 Market value(1) | 2014 Carrying value | ||||||||
Nusantara Regas Satu | 169,000 | 220,000 | ||||||||
Golar Mazo | 125,000 | 154,000 | ||||||||
Golar Winter | 196,000 | 248,000 | ||||||||
Golar Maria | 146,000 | 202,000 | ||||||||
(1) Market values are determined using reference to market comparable values as provided by independent valuators as at December 31, 2014. 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. | ||||||||||
Deferred charges | ||||||||||
Costs associated with long-term financing, including debt arrangement fees, are deferred and amortized over the term of the relevant loan. Amortization of deferred loan costs is included in "Other financial items, net" in the statement of operations. If a loan is repaid early, any unamortized portion of the related deferred charges is charged against income in the period in which the loan is repaid. | ||||||||||
Provisions | ||||||||||
We, in the ordinary course of business, 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 was present at the date of the financial statements and the likelihood of loss was probable and the amount can be reasonably estimated. If we have determined 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. See Note 26, "Other Commitments and Contingencies" for further discussion. | ||||||||||
Derivatives | ||||||||||
We use derivatives to reduce market risks associated with our operations. We use interest rate swaps for the management of interest | ||||||||||
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. | ||||||||||
All derivative instruments are initially recorded at cost as either assets or liabilities in the accompanying balance sheets 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 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 balance sheet, except if the current portion is a liability, in which case the current portion is included in "Other current liabilities." 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. We have adopted hedge accounting for certain of our interest rate swap arrangements designated as cash flow hedges. For derivative instruments that are not designated or do not qualify as hedges, the changes in fair value of the derivative financial instrument are recognized in earnings and recorded each period in current earnings in "Other financial items, net". | ||||||||||
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 it is determined 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. Cash flows from economic hedges are classified in the same category as the items subject to the economic hedging relationship. | ||||||||||
Foreign currencies | ||||||||||
Our and our subsidiaries’ 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 incurred in U.S. dollars. Our reporting currency is U.S. dollars. | ||||||||||
Transactions in foreign currencies during the year are translated into U.S. dollars at the rates of exchange in effect at the date of the transaction. Foreign currency monetary assets and liabilities are translated using rates of exchange at the balance sheet date. Foreign currency non-monetary assets and liabilities are translated using historical rates of exchange. Foreign currency transaction and translation gains or losses are included in the statements of operations. | ||||||||||
Fair value measurements | ||||||||||
We account for fair value measurements 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. | ||||||||||
Use of estimates | ||||||||||
The preparation of financial statements in accordance with U.S. 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. |
FORMATION_TRANSACTIONS_AND_INI
FORMATION TRANSACTIONS AND INITIAL PUBLIC OFFERING (Notes) | 12 Months Ended | |
Dec. 31, 2014 | ||
Formation Transactions and Initial Public Offering [Abstract] | ||
FORMATION TRANSACTIONS AND INITIAL PUBLIC OFFERING [Text Block] | FORMATION TRANSACTIONS AND INITIAL PUBLIC OFFERING | |
During April 2011, the following transactions in connection with the transfer of the interests in the Golar Winter and the subsequent IPO occurred: | ||
Capital contribution | ||
(i) | Golar contributed to us its 100% interest in the subsidiary which leased the Golar Winter. This has been accounted for as a capital contribution by Golar to us. | |
Recapitalization of the Partnership | ||
(ii) | We issued to Golar 23,127,254 common units and 15,949,831 subordinated units, representing a 98% limited partner interest in us, in exchange for Golar’s existing 98% limited partner interest in us; and | |
(iii) | We issued 797,492 general partner units to the General Partner, representing a 2% general partner interest in us, and 81% of the IDRs. The remaining 19% of the IDRs were issued to Golar Energy. The IDRs entitle the holder to increasing percentages of the cash we distribute in excess of $0.4428 per unit per quarter. | |
Initial Public Offering | ||
(iv) | In the IPO, Golar sold 13,800,000 of our common units to the public at a price of $22.50 per unit, raising gross proceeds of $310.5 million. 1,800,000 of our common units were sold pursuant to the exercise of the overallotment option granted to the underwriters. Expenses relating to the IPO were borne by Golar. | |
Rights and Obligations of Partnership Units | ||
• | Common units. These represent limited partner interests in us. During the subordination period, the common units have preferential dividend and liquidation rights over the subordinated units as described in note 28. Each outstanding common unit is entitled to one vote on matters subject to a vote of common unitholders. However, if at any time, any person or group owns beneficially more than 4.9% or more of any class of units outstanding, any such units owned by that person or group in excess of 4.9% may not be voted (except for purposes of nominating a person for election to our board). The voting rights of any such common unitholder in excess of 4.9% will effectively be redistributed pro rata among the other common unitholders holding less than 4.9% of the voting power of such class of units. The General Partner, its affiliates and persons who acquired common units with the prior approval of the board of directors will not be subject to this 4.9% limit except with respect to voting their common units in the election of the four elected directors. | |
• | Subordinated units. These represent limited partner interests in us. Subordinated units have limited voting rights and most notably are excluded from voting in the election of the elected directors. During the subordination period, the common units have preferential dividend rights to the subordinated units (see note 28). 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 the removal of the General Partner as the general partner. Upon the expiration of the subordination period, the subordinated units will convert into common units and will be subject to the same rights as common units. | |
• | General Partner units. General partner units have preferential liquidation and dividend rights over the subordinated units. There is a limitation on the transferability of the general partner interest such that the General Partner may not transfer all or any part of its general partner interest to another person (except to an affiliate of the General Partner or another entity as part of the merger or consolidation of the General Partner with or into another entity or the transfer by the General Partner of all or substantially all of its assets to another entity) prior to March 31, 2021 without the approval of the holders of at least a majority of the outstanding common units, excluding common units held by the General Partner and its affiliates. The general partner units are not entitled to vote in the election of the four elected directors. However, the General Partner in their sole discretion appoints three of the seven board directors. | |
• | IDRs. The IDRs are non-voting and represent rights to receive an increasing percentage of quarterly distributions of available cash from operating surplus after the minimum quarterly distribution and the target distribution levels have been achieved as described in note 28. The General Partner (including Golar Energy) or its affiliates may not transfer all or any part of its IDRs to another person (except to an affiliate of the General Partner or another entity as part of the merger or consolidation of the General Partner with or into another entity or the transfer by the General Partner of all or substantially all of its assets to another entity) prior to March 31, 2016 without the approval of the holders of at least a majority of the outstanding common units, excluding common units held by the General Partner and its affiliates. | |
The Partnership Agreement provides that if the General Partner is removed as a general partner under circumstances where cause does not exist and units held by the General Partner and its affiliates are not voted in favor of that removal: | ||
• | the subordination period will end and all outstanding subordinated units will immediately convert into common units on a one-for-one basis; | |
• | any existing arrearages in payment of the minimum quarterly distribution on the common units will be extinguished; and | |
• | the General Partner will have the right to convert its general partner interest and its IDRs (and Golar Energy will have the right to convert its IDRs) into common units or to receive cash in exchange for those interests based on the fair market value of the interests at the time. | |
Agreements | ||
In connection with the IPO, we entered into several agreements including: | ||
• | A management and administrative services agreement with Golar Management Limited, a subsidiary of Golar ("Golar Management"), pursuant to which Golar Management agreed to provide certain management and administrative services to us; | |
• | A $20.0 million revolving credit agreement with Golar; and | |
• | An Omnibus Agreement with Golar, the General Partner and others governing, among other things: | |
• | To what extent we and Golar may compete with each other; | |
• | Certain rights of first offer on certain FSRUs and LNG carriers operating under charters for five or more years; and | |
• | The provision of certain indemnities to us by Golar. | |
We exercised our option under the Omnibus Agreement to purchase the Golar Freeze from Golar in October 2011 and the NR Satu in July 2012. |
SUBSIDIARIES
SUBSIDIARIES | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
SUBSIDIARIES [Abstract] | |||||||
SUBSIDIARIES [Text Block] | SUBSIDIARIES | ||||||
The following table lists our significant subsidiaries and their purpose as of December 31, 2014. Unless otherwise indicated, we own 100% of each subsidiary. | |||||||
Name | Jurisdiction of | Purpose | |||||
Incorporation | |||||||
Golar Partners Operating LLC | Marshall Islands | Holding Company | |||||
Golar LNG Holding Corporation | Marshall Islands | Holding Company | |||||
Golar Maritime (Asia) Inc. | Republic of Liberia | Holding Company | |||||
Oxbow Holdings Inc. | British Virgin Islands | Holding Company | |||||
Faraway Maritime Shipping Company (60% ownership) | Republic of Liberia | Owns and operates Golar Mazo | |||||
Golar LNG 2215 Corporation | Marshall Islands | Leases Methane Princess | |||||
Golar Spirit Corporation | Marshall Islands | Owns Golar Spirit | |||||
Golar Freeze Holding Corporation | Marshall Islands | Owns Golar Freeze | |||||
Golar 2215 UK Ltd | United Kingdom | Operates Methane Princess | |||||
Golar Spirit UK Ltd | United Kingdom | Operates Golar Spirit | |||||
Golar Winter UK Ltd | United Kingdom | Operates Golar Winter | |||||
Golar Freeze UK Ltd | United Kingdom | Operates Golar Freeze | |||||
Golar Servicos de Operacao de Embaracaoes Limited | Brazil | Management Company | |||||
Golar Khannur Corporation | Marshall Islands | Holding Company | |||||
Golar LNG (Singapore) Pte.Ltd. | Singapore | Holding Company | |||||
PT Golar Indonesia* | Indonesia | Owns and operates NR Satu | |||||
Golar 2226 UK Ltd | United Kingdom | Operates Golar Grand | |||||
Golar LNG 2234 Corporation | Republic of Liberia | Owns and operates Golar Maria | |||||
Golar Winter Corporation | Marshall Islands | Owns Golar Winter | |||||
Golar Grand Corporation | Marshall Islands | Owns Golar Grand | |||||
Golar Hull M2031 Corporation | Marshall Islands | Owns and operates Golar Igloo | |||||
__________________________________________ | |||||||
* We hold all of the voting stock and control all of the economic interests in PT Golar Indonesia ("PTGI") pursuant to a Shareholder's Agreement with the other shareholder of PTGI, PT Pesona Sentra Utama ("PT Pesona"). PT Pesona holds the remaining 51% interest in the issued share capital of PTGI. | |||||||
We consolidated PTGI, which owns the NR Satu, in our consolidated financial statements effective September 28, 2011. PTGI became a VIE and we became its primary beneficiary upon our agreement to acquire all of Golar's interests in certain subsidiaries that own and operate the NR Satu (see note 25(k)) on July 19, 2012. We consolidate PTGI as we hold all of the voting stock and control all of the economic interests in PTGI. | |||||||
The following table summarizes the balance sheets of PTGI as of December 31, 2014 and 2013: | |||||||
(in thousands of $) | 2014 | 2013 | |||||
ASSETS | |||||||
Cash | 17,181 | 8,225 | |||||
Restricted cash | 10,152 | 9,980 | |||||
Vessels and equipment, net* | 333,152 | 354,255 | |||||
Other assets | 13,545 | 9,056 | |||||
Total assets | 374,030 | 381,516 | |||||
LIABILITIES AND EQUITY | |||||||
Accrued liabilities | 6,307 | 25,020 | |||||
Current portion of long-term debt | 14,300 | 14,300 | |||||
Amounts due to related parties | 188,323 | 189,835 | |||||
Long-term debt | 112,100 | 126,400 | |||||
Other liabilities | 8,693 | 6,283 | |||||
Total liabilities | 329,723 | 361,838 | |||||
Total equity | 44,307 | 19,678 | |||||
Total liabilities and equity | 374,030 | 381,516 | |||||
*PTGI recorded the NR Satu at acquisition price when it purchased the vessel from a Golar related party entity. However, as the acquisition of the subsidiaries which own and operate the NR Satu was deemed to be a reorganization of entities under common control, we recorded the NR Satu at historical book values. | |||||||
Trade creditors of PTGI have no recourse to our general credit. | |||||||
The long-term debt of PTGI is secured against the NR Satu and has been guaranteed by us. |
RECENTLY_ISSUED_ACCOUNTING_STA
RECENTLY ISSUED ACCOUNTING STANDARDS | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENTLY ISSUED ACCOUNTING STANDARDS | RECENTLY ISSUED ACCOUNTING STANDARDS |
Adoption of new accounting standards | |
In February 2013, the Financial Accounting Standards Board ("FASB") issued guidance for the recognition, measurement and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date, including debt arrangements, other contractual obligations and settled litigation and judicial rulings. The guidance requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, as the sum of (a) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and (b) any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendment did not have a material impact on our consolidated financial statements. | |
In February 2013, further guidance was provided relating to the reporting of the effects on net income of significant amounts reclassified out of each component of accumulated other comprehensive income. Under the updated guidance, the effects on net income of significant amounts reclassified out of each component of accumulated other comprehensive income shall be shown, in one location, either on the face of the statement where net income is presented or as a separate disclosure in the notes to the financial statements. The amendment resulted in additional disclosures in our consolidated and combined carve-out statement of comprehensive income. | |
In July 2013, the FASB issued guidance for the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists to provide guidance on the presentation of unrecognized tax benefits. The guidance requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, to the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendment did not have a material impact on our consolidated financial statements. | |
In July 2013, the FASB amended ASC Topic 815 permitting the Fed Funds Effective Swap Rate to be used as a U.S. benchmark interest rate for hedge accounting purposes, in addition to U.S. Treasury interest rates and the London Interbank Offered Rate. The amendments also remove the restriction on using different benchmark rates for similar hedges. The amendments shall be applied prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. We did not enter into any qualifying new or redesignated hedging relationships after July 17, 2013 up to the date of these consolidated financial statements and the adoption of this guidance did not have a material effect in our consolidated financial statements. | |
Accounting pronouncements to be adopted | |
In January 2014, the FASB issued guidance for derivatives and hedging, accounting for certain receive-variable, pay-fixed interest rate swaps - simplified hedge accounting approach. The guidance permits companies to recognize swaps at their settlement value rather than their fair value and to complete formal hedge documentation by the date on which the company’s annual financial statements are available to be issued. Companies can adopt the guidance using a modified retrospective approach or a full retrospective approach. The guidance is effective for annual periods beginning after 15 December 2014 and interim periods within annual periods beginning after 15 December 2015. Early adoption is permitted for any annual or interim period for which the entity’s financial statements have not yet been made available for issuance. Entities may elect the simplified hedge accounting approach for qualifying swaps existing at the date of adoption and new swaps. 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 April 2014, the FASB issued guidance that amends the definition of a discontinued operation and requires entities to provide additional disclosures about disposal transactions. The revised guidance will change how entities identify and disclose information about disposal transactions. The guidance is effective prospectively for all disposals (except disposals classified as held for sale before the adoption date) or components initially classified as held for sale in periods beginning on or after December 15, 2014, with early adoption permitted. Under the revised standard, a discontinued operation is defined as, (i) 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 an entity’s operations and financial results or (ii) an acquired business or nonprofit activity (the entity to be sold) that is classified as held for sale on the date of the acquisition. 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 May 2014, the FASB issued guidance that will supersede virtually all of the existing revenue recognition guidance. The standard is intended to increase comparability across industries and jurisdictions. The single, global revenue recognition model applies to most contracts with customers. Leases, insurance contracts, financial instruments, guarantees and certain non-monetary transactions are excluded from the scope of the guidance. Revenue will be recognized in a manner that depicts the transfer of goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled, subject to certain limitations. The guidance is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is prohibited for companies applying US GAAP. 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 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 period ending after December 15, 2016, and for annual periods and interim period thereafter. 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. |
SEGMENTAL_INFORMATION
SEGMENTAL INFORMATION | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||
SEGMENTAL INFORMATION | SEGMENTAL INFORMATION | ||||||||||||||||||
Operating segment, are components for an enterprise of which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Based on the Company’s methods of internal reporting and management structure, we consider that we operate in one segment, the LNG market. During 2014, our fleet operated under time charters and in particular with seven charterers, Petrobras, Dubai Supply Authority ("DUSUP"), Pertamina, PT Nusantara Regas ("PTNR"), BG Group plc, Eni S.p.A. and Kuwait National Petroleum Company ("KNPC"). Petrobras is a Brazilian energy company. DUSUP is a government entity which is the sole supplier of natural gas to the Emirates. Pertamina is the state-owned oil and gas company of Indonesia. PTNR is a joint venture company of Pertamina and Perusahaan Gas Negara, an Indonesian company engaged in the transport and distribution of natural gas in Indonesia. BG Group plc is headquartered in the United Kingdom. Eni S.p.A is an integrated energy company headquartered in Italy. KNPC is a subsidiary of Kuwait Petroleum Corporation, the state-owned oil and gas company of Kuwait. | |||||||||||||||||||
In the years ended December 31, 2014, 2013 and 2012, revenues from each of the following customers accounted for over 10% of our consolidated and combined revenues: | |||||||||||||||||||
(in thousands of $) | 2014 | 2013 | 2012 | ||||||||||||||||
Petrobras | 99,976 | 25 | % | 85,899 | 26 | % | 92,952 | 32 | % | ||||||||||
DUSUP | 48,392 | 12 | % | 48,029 | 15 | % | 48,328 | 17 | % | ||||||||||
Pertamina | 40,004 | 10 | % | 37,302 | 11 | % | 37,300 | 13 | % | ||||||||||
BG Group plc | 68,884 | 17 | % | 66,341 | 20 | % | 66,148 | 23 | % | ||||||||||
PTNR | 66,345 | 17 | % | 65,478 | 20 | % | 41,902 | 15 | % | ||||||||||
KNPC | 43,220 | 11 | % | — | — | % | — | — | % | ||||||||||
Geographic segment data | |||||||||||||||||||
The following geographical data presents our revenues and fixed assets with respect only to our FSRUs, operating under long-term charters, at specific locations. LNG carriers operate on a worldwide basis and are not restricted to specific locations. Accordingly, it is not possible to allocate the assets of these operations to specific countries: | |||||||||||||||||||
Revenues | 2014 | 2013 | 2012 | ||||||||||||||||
Brazil | 99,976 | 85,899 | 92,952 | ||||||||||||||||
United Arab Emirates | 48,392 | 48,029 | 48,328 | ||||||||||||||||
Indonesia | 66,345 | 65,478 | 41,902 | ||||||||||||||||
Kuwait | 43,220 | — | — | ||||||||||||||||
Fixed assets | 2014 | 2013 | |||||||||||||||||
Brazil | 392,132 | 413,967 | |||||||||||||||||
United Arab Emirates | 133,082 | 142,757 | |||||||||||||||||
Indonesia | 219,610 | 233,734 | |||||||||||||||||
Kuwait | 281,946 | — | |||||||||||||||||
OTHER_FINANCIAL_ITEMS_NET
OTHER FINANCIAL ITEMS, NET | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
OTHER FINANCIAL ITEMS, NET [Abstract] | ||||||||||
OTHER FINANCIAL ITEMS, NET | OTHER FINANCIAL ITEMS, NET | |||||||||
(in thousands of $) | 2014 | 2013 | 2012 | |||||||
Amortization of deferred financing costs | (3,554 | ) | (5,828 | ) | (1,123 | ) | ||||
Financing arrangement fees and other costs | (147 | ) | (2,101 | ) | (411 | ) | ||||
Interest expense on un-designated interest rate swaps | (12,163 | ) | (8,188 | ) | (6,609 | ) | ||||
Mark-to-market adjustment for interest rate swap derivatives (see note 24) | (5,953 | ) | 12,845 | 1,328 | ||||||
Mark-to-market adjustment for currency swap derivatives (see note 24) | — | (4,839 | ) | 7,204 | ||||||
Foreign exchange gain (loss) on capital lease obligations and related restricted cash | 677 | 7,084 | (5,602 | ) | ||||||
Foreign exchange loss on operations | (978 | ) | (634 | ) | (176 | ) | ||||
Total | (22,118 | ) | (1,661 | ) | (5,389 | ) | ||||
Amortization of deferred financing costs amount to $3.6 million, $5.8 million and $1.1 million for the years ended December 31, 2014, 2013 and 2012, respectively. The higher charge in 2013 included a write-off of deferred charges of $2.7 million relating to the refinancing of the Golar Winter and the Golar Grand in June 2013. | ||||||||||
Financing arrangement fees and other costs of $2.1 million in 2013 included $1.2 million of commitment fees in relation to the Golar Partners Operating credit facility. | ||||||||||
As discussed in note 2, mark-to-market adjustments on interest rate and currency swap derivatives also include an allocation of Golar's mark-to-market adjustments on derivatives entered into by Golar. For the year ended December 31, 2012, the amount allocated to the Partnership was a gain of $0.1 million. |
TAXATION
TAXATION | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Tax Disclosure [Abstract] | ||||||||||
TAXATION | TAXATION | |||||||||
The components of income tax (credit)/expense are as follows: | ||||||||||
(in thousands of $) | 2014 | 2013 | 2012 | |||||||
Current tax expense (credit): | ||||||||||
U.K. | 852 | (373 | ) | 1,888 | ||||||
Indonesia | 544 | 5,047 | 7,395 | |||||||
Brazil | 1,136 | 779 | 1,055 | |||||||
Kuwait | 1,945 | — | — | |||||||
Total current tax expense | 4,477 | 5,453 | 10,338 | |||||||
Deferred tax income: | ||||||||||
Indonesia | (9,524 | ) | — | — | ||||||
Amortization of deferred tax benefit on intra-group transfer (Note 2) | — | — | (912 | ) | ||||||
Total income tax (credit) expense | (5,047 | ) | 5,453 | 9,426 | ||||||
The income taxes for the years ended December 31, 2014, 2013 and 2012 differed from the amount computed by applying the Marshall Islands statutory income tax rate of 0% as follows: | ||||||||||
Year ended December 31, | ||||||||||
(In thousands of $) | 2014 | 2013 | 2012 | |||||||
Income taxes at statutory rate | — | — | — | |||||||
Effect of carved-out deferred tax benefit on intra-group transfer | — | — | (912 | ) | ||||||
Effect of change on uncertain tax positions relating to prior year | (5,042 | ) | — | — | ||||||
Effect of recognition of previously unrecognized deferred tax asset | (9,524 | ) | — | — | ||||||
Effect of taxable income in various countries | 9,519 | 5,453 | 10,338 | |||||||
Total tax (credit) expense | (5,047 | ) | 5,453 | 9,426 | ||||||
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. Our management believes that we satisfied these requirements and therefore by virtue of the above provisions, we were not subject to tax on its U.S. source income. | ||||||||||
United Kingdom | ||||||||||
Current taxation charge of $0.9 million, credit of $0.4 million and charge of $1.9 million for the years ended December 31, 2014, 2013 and 2012, respectively, relates to taxation of the operations of our United Kingdom subsidiaries. Taxable revenues in the United Kingdom are generated by our UK subsidiary companies and are comprised of revenues from the operation of five of our vessels. The statutory tax rate in the United Kingdom as of December 31, 2014 was 21% and will be reduced to 20% with effect from 1 April 2015. | ||||||||||
We record deferred income taxes to reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. We did not have any deferred tax assets at December 31, 2014 or 2013. | ||||||||||
Brazil | ||||||||||
Current taxation charges of $1.1 million, $0.8 million and $1.1 million for the years ended December 31, 2014, 2013 and 2012, respectively, refer to taxation levied on the operations of our Brazilian subsidiary. | ||||||||||
Indonesia | ||||||||||
Current taxation charges of $0.5 million, $5.0 million and $7.4 million for the years ended December 31, 2014, 2013 and 2012, respectively, refer to taxation levied on the operations of our Indonesian subsidiary. However, the tax exposure in Indonesia is intended to be mitigated by revenue due under the time charter. This tax element of the time charter rate was established at the beginning of the time charter, and shall be adjusted only where there is a change in Indonesian tax laws or the invalidity of certain stipulated tax assumptions. | ||||||||||
We record deferred income taxes to reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The net tax benefit for the year ended December 31, 2014 principally related to the recognition of certain historical tax positions related to foreign tax net operating losses that due to previous uncertainty as to realization, were not recognized until the current year. The historical foreign net operating losses relating to these positions recognized in the year ended December 31, 2014 was $9.5 million. | ||||||||||
Kuwait | ||||||||||
Current taxation charges of $1.9 million, $nil and $nil for the years ended December 31, 2014, 2013 and 2012, respectively, relates to taxation levied on our Marshall Island operating company which is deemed a tax resident in Kuwait in connection with our charter with KNPC. | ||||||||||
Other jurisdictions | ||||||||||
No tax has been levied on income derived from our subsidiaries registered in the Marshall Islands, Liberia and the British Virgin Islands. | ||||||||||
The following table summarizes the earliest tax year that remain subject to examination by the major taxable jurisdictions in which we operate: | ||||||||||
Jurisdiction | Earliest | |||||||||
U.K. | 2011 | |||||||||
Brazil | 2009 | |||||||||
Indonesia | 2013 | |||||||||
Kuwait | 2014 | |||||||||
Interest and penalties charged to "Income taxes" on our statement of operations amounted to $0.3 million, $0.8 million and $nil for the years ended December 31, 2014, 2013 and 2012 respectively. | ||||||||||
Deferred income taxes reflect the impact of temporary differences between the amount of assets and liabilities recognized for financial reporting purposes and such amounts recognized for tax purposes. The net deferred tax assets (liabilities) consist of the following: | ||||||||||
(in thousands of $) | 2014 | 2013 | ||||||||
Net operating loss carried forward | 9,524 | 6,070 | ||||||||
Gross deferred tax asset | 9,524 | 6,070 | ||||||||
Valuation allowance | — | (6,070 | ) | |||||||
Deferred tax assets, net | 9,524 | — | ||||||||
Net deferred taxes are classified as follows: | ||||||||||
(in thousands of $) | 2014 | 2013 | ||||||||
Short-term deferred tax asset | 3,085 | — | ||||||||
Long-term deferred tax asset | 6,439 | — | ||||||||
Net deferred tax | 9,524 | — | ||||||||
As of December 31, 2014, deferred tax assets related to net operating loss ("NOL") carryforwards was $38.1 million, which can be used to offset future taxable income. NOL carryforwards were generated from our Indonesian subsidiary, which includes $1.6 million that will not expire until 2017 and $7.9 million that will expire in 2018, if not utilized. | ||||||||||
A reconciliation of deferred tax assets, net, is shown below: | ||||||||||
(in thousands of $) | 2014 | 2013 | 2012 | |||||||
Balance at January 1 | — | — | — | |||||||
Additions for tax positions of prior years | 13,920 | 6,070 | — | |||||||
Release of deferred tax asset | (4,396 | ) | — | — | ||||||
Movement in valuation allowance | — | (6,070 | ) | — | ||||||
Balance at December 31 | 9,524 | — | — | |||||||
Deferred tax assets, gross relate to net operating losses carried forward for the NR Satu. The deferred tax asset as of December 31, 2014 solely related to the recognition of certain historical tax positions related to foreign tax net operating losses that due to previous uncertainty as to realization, were not recognized until the current year. Deferred tax assets of $9.5 million, $nil and $nil were recognized in our consolidated and combined carve-out statements of operations for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||
There are no potential deferred tax liabilities arising on undistributed earnings within the Partnership. This is because either: (i) no tax would arise on distribution, or (ii) in the case of PTGI, the Partnership intends to utilise surplus earnings to reduce borrowings, as opposed to making any distribution. | ||||||||||
Expiry of net operating losses carried forward relating to the NR Satu is as follows: | ||||||||||
(in thousands of $) | Amount | Date of expiry | ||||||||
Net operating losses in 2012 | 6,335 | 2017 | ||||||||
Net operating losses in 2013 | 31,761 | 2018 | ||||||||
Uncertainty in tax positions | ||||||||||
The Partnership’s Indonesian subsidiary which owns the NR Satu, is a party to an on-going tax examination by the Indonesian tax authorities with regard to its reported taxable operating losses for the year ended December 31, 2013. A tax examination with regard to its 2012 tax returns was concluded in September 2014. Following completion of the tax examination of the 2012 tax returns, we recognized deferred tax assets of $9.5 million for the year ended December 31, 2014. | ||||||||||
As of December 31, 2014, $5.3 million of foreign tax operating losses were not recognized due to uncertainty of realization. |
OPERATING_LEASES
OPERATING LEASES | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases [Abstract] | |||||
OPERATING LEASES | OPERATING LEASES | ||||
Rental income | |||||
The minimum contractual future revenues to be received on time charters as of December 31, 2014, were as follows: | |||||
Year ending December 31, | Total | ||||
(in thousands of $) | |||||
2015 | 380,508 | ||||
2016 | 388,234 | ||||
2017 | 383,203 | ||||
2018 | 253,663 | ||||
2019 | 199,393 | ||||
2020 and later | 586,686 | ||||
Total | 2,191,687 | -1 | |||
____________________________________ | |||||
(1) This includes revenues from Golar relating to the Option Agreement entered into in connection with the acquisition of the Golar Grand in November 2012. Prior to February 2015, the Golar Grand operated under a time charter with BG Group which was not extended beyond its initial term and expired in the middle of February 2015. In February 2015, we exercised our option to require Golar to charter in the vessel until October 2017 at approximately 75% of the hire rate paid by BG Group representing an approximate 25% loss of daily revenue to us with respect to the Golar Grand. | |||||
Minimum lease revenues are calculated based on certain assumptions such as those relating to expected off-hire days and, for those days on-hire, estimates of the operating component of the charter rate (where applicable) which includes assumptions as to forecast foreign currency rates, changes in the specified consumer price index, amongst others. For those charters containing provisions for reimbursement for drydocking expenditure, these revenues have not been reflected in minimum lease revenues above. | |||||
PTNR has the right to purchase the NR Satu at any time after the first anniversary of the commencement date of its charter at a price that must be agreed upon between us and PTNR. We have assumed that this option will not be exercised. Accordingly, the minimum lease revenues set out above include revenues arising within the option period. | |||||
The cost and accumulated depreciation of vessels leased to third parties at December 31, 2014 and 2013 were $2,121.0 million and $1,858.3 million; and $497.5 million and $449.0 million, respectively. For arrangements where operating costs are borne by the charterer on a pass through basis, the pass through of operating costs are reflected in both revenue and expenses. |
BUSINESS_COMBINATION_BUSINESS_
BUSINESS COMBINATION BUSINESS COMBINATION | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Business Combinations [Abstract] | ||||||
Business Combination Disclosure [Text Block] | BUSINESS COMBINATION | |||||
We acquired from Golar equity interests in the subsidiaries which own and operate the Golar Igloo and the Golar Maria on March 28, 2014 and February 7, 2013, respectively. | ||||||
The Board and the Conflicts Committee of the Board (the "Conflicts Committee") approved the purchase price for each transactions. The Conflicts Committee retained a financial advisor to assist the evaluation of each transaction. The details of each transaction are as follows: | ||||||
Golar Igloo | Golar Maria | |||||
(in thousands of $) | 28-Mar-14 | 7-Feb-13 | ||||
Purchase consideration (1) | 156,001 | 127,910 | ||||
Less: Fair value of net assets (liabilities) acquired: | ||||||
Vessel and equipment | 287,542 | 215,000 | ||||
Intangible asset | 19,099 | — | ||||
Cash | 682 | 7,981 | ||||
Fair value of interest rate swap | 3,636 | (3,096 | ) | |||
Other assets and liabilities | 6,312 | (2,450 | ) | |||
Long-term debt | (161,270 | ) | (89,525 | ) | ||
Subtotal | (156,001 | ) | (127,910 | ) | ||
Difference between the purchase price and fair value of net assets acquired | — | — | ||||
__________________________________________ | ||||||
(1) The purchase consideration comprises the following: | ||||||
(in thousands of $) | Golar Igloo | Golar Maria | ||||
Cash consideration paid to Golar | 148,730 | 125,500 | ||||
Adjustment for the interest rate swap asset (liability) assumed | 3,636 | (3,096 | ) | |||
Purchase price adjustments | 3,635 | 5,506 | ||||
156,001 | 127,910 | |||||
Golar Igloo | ||||||
On March 28, 2014, we acquired Golar's 100% interest in the company that owns and operates the FSRU, the Golar Igloo pursuant to a Purchase, Sale and Contribution Agreement that we entered into on December 5, 2013. The purchase consideration was $310.0 million less the assumed bank debt of $161.3 million, plus the fair value of the interest rate swap asset of $3.6 million and other purchase price adjustments of $3.6 million. The Golar Igloo was delivered to its current charterer, KNPC, the national oil refining company of Kuwait in March 2014 under a charter expiring in December 2018. The purchase price of the acquisition has been allocated to the identifiable assets acquired. The allocation of the purchase price to acquired identifiable assets was based on their estimated fair values at the date of acquisition. The acquisition of the Golar Igloo was deemed accretive to our distributions. | ||||||
Revenue and profit contributions | ||||||
The Golar Igloo contributed revenues of $43.2 million and net income of $22.3 million to the financial results for the period from March 28, 2014 to December 31, 2014. | ||||||
The table below shows our summarized consolidated pro forma consolidated annual financial information for the year ended December 31, 2014, giving effect to our acquisition of the Golar Igloo as if it had taken place on January 1, 2014. | ||||||
Unaudited | ||||||
(in thousands of $, except per unit data) | 2014 | |||||
Revenues | 400,209 | |||||
Net income | 184,751 | |||||
Earnings per unit (basic and diluted): | ||||||
Common unitholders | $2.56 | |||||
The Golar Igloo was under construction and not operational during the year ended December 31, 2013. As a result, we have evaluated that had the acquisition been consummated as of January 1, 2013, Golar Igloo's pro forma revenue and net income effect for the year ended December 31, 2013 would be immaterial and thus, have not been presented here. | ||||||
Golar Maria | ||||||
On February 7, 2013, we acquired Golar's 100% interest in the company that owns and operates the Golar Maria. The purchase consideration was $215 million for the vessel less the assumed bank debt of $89.5 million and the fair value of the interest rate swap liability of $3.1 million plus other purchase price adjustments of $5.5 million. The Golar Maria was delivered to its current charterer, LNG Shipping S.p.A. ("LNG Shipping"), a subsidiary of Eni S.p.A in November 2012 under a charter expiring in December 2017. The acquisition of the Golar Maria was deemed accretive to our distributions. | ||||||
Revenue and profit contributions | ||||||
The table below shows our comparative summarized consolidated pro forma financial information for the years ended December 31, 2013 and 2012, giving effect to our acquisition of the Golar Maria as if it had taken place on January 1, 2012. | ||||||
Unaudited | Unaudited | |||||
(in thousands of $, except per unit data) | 2013 | 2012 | ||||
Revenues | 332,150 | 308,617 | ||||
Net income | 152,388 | 135,472 | ||||
Earnings per unit (basic and diluted): | ||||||
Common unitholders | $2.33 | $2.52 |
TRADE_ACCOUNTS_RECEIVABLE
TRADE ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2014 | |
Receivables [Abstract] | |
TRADE ACCOUNTS RECEIVABLE | TRADE ACCOUNTS RECEIVABLE |
Trade accounts receivable are presented net of provisions for doubtful accounts. As of December 31, 2014 and 2013, there was no provision for doubtful accounts. The increase in trade accounts receivable as of December 31, 2014 is due to the invoicing of charterhire revenues relating to the Golar Igloo in arrears as agreed on the time charter party agreement. |
OTHER_RECEIVABLES_PREPAID_EXPE
OTHER RECEIVABLES, PREPAID EXPENSES AND ACCRUED INCOME | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
OTHER RECEIVABLES, PREPAID EXPENSES AND ACCRUED INCOME [Abstract] | |||||||
OTHER RECEIVABLES, PREPAID EXPENSES AND ACCRUED INCOME | OTHER RECEIVABLES, PREPAID EXPENSES AND ACCRUED INCOME | ||||||
(in thousands of $) | 2014 | 2013 | |||||
Other receivables | 2,174 | 2,937 | |||||
Deferred tax asset (see note 8) | 3,085 | — | |||||
Prepaid expenses | 2,257 | 4,089 | |||||
7,516 | 7,026 | ||||||
As of December 31, 2013, included in other receivables was an amount for an indemnification receivable of $2 million. This was settled in December 2014 (see note 26). |
VESSELS_AND_EQUIPMENT_NET
VESSELS AND EQUIPMENT, NET | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Property, Plant and Equipment [Abstract] | |||||||
VESSELS AND EQUIPMENT, NET [Text Block] | VESSELS AND EQUIPMENT, NET | ||||||
(in thousands of $) | 2014 | 2013 | |||||
Cost | 1,952,390 | 1,665,039 | |||||
Accumulated depreciation | (451,220 | ) | (383,448 | ) | |||
Net book value | 1,501,170 | 1,281,591 | |||||
As of December 31, 2014 and 2013, we owned nine and eight vessels, respectively. | |||||||
The increase in the number of vessels in the year ended December 31, 2014 is due to the acquisition of the Golar Igloo in March 2014 (see note 10). | |||||||
Drydocking costs of $72.6 million and $68.7 million are included in the vessel cost for December 31, 2014 and 2013, respectively. Accumulated amortization of those costs at December 31, 2014 and 2013 was $27.9 million and $16.6 million, respectively. | |||||||
Mooring equipment of $38.1 million is included in the cost for December 31, 2014 and 2013. Accumulated depreciation of the mooring equipment at December 31, 2014 and 2013 was $9.6 million and $6.0 million, respectively. | |||||||
Interest costs capitalized in connection with the conversion of the NR Satu into an FSRU for the years ended December 31, 2014, 2013 and 2012 were $nil, $nil and $1.8 million, respectively. | |||||||
Depreciation and amortization expense for the years ended December 31, 2014, 2013 and 2012 was $72.6 million, $55.1 million and $35.2 million, respectively. | |||||||
As of December 31, 2014 and 2013, vessels and equipment with a net book value of $1,501.2 million and $1,281.6 million, respectively, were pledged as security for certain debt facilities (see note 26). |
VESSELS_UNDER_CAPITAL_LEASES_N
VESSELS UNDER CAPITAL LEASES, NET | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Property, Plant and Equipment [Abstract] | |||||||
VESSELS UNDER CAPITAL LEASES, NET | VESSEL UNDER CAPITAL LEASE, NET | ||||||
(in thousands of $) | 2014 | 2013 | |||||
Cost | 168,577 | 168,492 | |||||
Accumulated depreciation | (46,324 | ) | (40,799 | ) | |||
Net book value | 122,253 | 127,693 | |||||
As of December 31, 2014 and 2013, we operated one vessel, the Methane Princess, under capital lease. The lease is in respect of a refinancing transaction undertaken during 2003, as described in note 22. | |||||||
Drydocking costs of $8.1 million are included in the cost amounts above as of December 31, 2014 and 2013. Accumulated amortization of those costs at December 31, 2014 and 2013 was $2.5 million and $0.9 million, respectively. | |||||||
Depreciation and amortization expense for vessels under capital leases for the years ended December 31, 2014, 2013 and 2012 was $5.5 million, $11.9 million and $16.6 million, respectively. |
INTANGIBLE_ASSETS_NET_Notes
INTANGIBLE ASSETS, NET (Notes) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||
Intangible Assets Disclosure [Text Block] | INTANGIBLE ASSETS, NET | ||||||
(in thousands of $) | 2014 | 2013 | |||||
Cost | 19,096 | — | |||||
Accumulated amortization | (3,064 | ) | — | ||||
Net book value | 16,032 | — | |||||
The intangible assets pertain to customer related and contract based assets representing primarily the long-term time charter party agreement acquired in connection with the acquisition of the Golar Igloo in March 2014 (see note 10). The intangible asset is amortized over the term of the contract with KNPC of five years. As of December 31, 2014, there was no impairment of intangible assets. | |||||||
The estimated future amortization for the intangible assets as of December 31, 2014 is as follows: | |||||||
Year Ending December 31, | |||||||
(in thousands of $) | |||||||
2015 | 3,820 | ||||||
2016 | 3,820 | ||||||
2017 | 3,820 | ||||||
2018 | 3,820 | ||||||
2019 | 752 | ||||||
Total | 16,032 | ||||||
DEFERRED_CHARGES
DEFERRED CHARGES | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||
Deferred Finance Costs Disclosures | DEFERRED CHARGES | ||||||
Deferred charges represent financing costs, principally bank fees that are capitalized and amortized to other financial items over the life of the debt instrument. If a loan is repaid early, any unamortized portion of the related deferred charges is charged against income in the period in which the loan is repaid. The deferred charges are comprised of the following amounts: | |||||||
(in thousands of $) | 2014 | 2013 | |||||
Debt arrangement fees and other deferred financing charges | 23,384 | 20,677 | |||||
Accumulated amortization | (10,028 | ) | (6,407 | ) | |||
13,356 | 14,270 | ||||||
Amortization expense of deferred charges, for the years ended December 31, 2014, 2013 and 2012 was $3.6 million, $5.8 million and $1.1 million, respectively. |
RESTRICTED_CASH_AND_SHORTTERM_
RESTRICTED CASH AND SHORT-TERM INVESTMENTS | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
RESTRICTED CASH AND SHORT-TERM INVESTMENTS [Abstract] | |||||||
RESTRICTED CASH AND SHORT-TERM INVESTMENTS | RESTRICTED CASH AND SHORT-TERM INVESTMENTS | ||||||
Our short-term restricted cash and investment balances in respect of our debt and lease obligations are as follows: | |||||||
(in thousands of $) | 2014 | 2013 | |||||
Total security lease deposits for lease obligations | 5,671 | 5,639 | |||||
Restricted cash relating to the Golar Freeze facility (see note 21) | 10,008 | 8,832 | |||||
Restricted cash relating to the NR Satu facility (see note 21) | 10,152 | 9,980 | |||||
25,831 | 24,451 | ||||||
Restricted cash does not include minimum consolidated cash balances of $30 million required to be maintained as part of the financial covenants in some of our loan facilities, as these amounts are included in "Cash and cash equivalents" (see note 21). | |||||||
As of December 31, 2014 and 2013, the value of deposits used to obtain letters of credit to secure the obligations for the lease arrangements described in note 22 was $142.5 million and $151.4 million, respectively. These security deposits are referred to in these financial statements as restricted cash. The Methane Princess Lease security deposit earns interest based upon GBP LIBOR. | |||||||
Our restricted cash balances in respect of our debt and capital lease obligations are as follows: | |||||||
(in thousands of $) | 2014 | 2013 | |||||
Methane Princess Lease security deposits | 142,513 | 151,364 | |||||
Restricted cash relating to the cross currency interest rate swap (see note 24) | 9,710 | — | |||||
Total security deposits for lease obligations | 152,223 | 151,364 | |||||
Included in short-term restricted cash and short-term investments | (5,671 | ) | (5,639 | ) | |||
Long-term restricted cash | 146,552 | 145,725 | |||||
OTHER_NONCURRENT_ASSETS
OTHER NON-CURRENT ASSETS | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
OTHER NON-CURRENT ASSETS [Abstract] | |||||||
OTHER NON-CURRENT ASSETS | OTHER NON-CURRENT ASSETS | ||||||
(in thousands of $) | 2014 | 2013 | |||||
Mark-to-market interest rate swaps valuation (see note 24) | 3,617 | 5,335 | |||||
Methane Princess Lease security deposit movements (see note 25(h)) | — | 4,257 | |||||
Deferred tax asset (see notes 8 and 12) | 6,439 | — | |||||
Other long-term assets | 5,227 | 5,969 | |||||
15,283 | 15,561 | ||||||
Included within "Other long-term assets" are: (i) capitalized commission expenses and lease incentives incurred in connection with securing the NR Satu time charter amounting to $5.2 million and $6.0 million as of December 31, 2014 and 2013, respectively. These costs are amortized over the term of the NR Satu time charter. Amortization expense for the years ended December 31, 2014, 2013 and 2012 was $0.7 million, $0.7 million and $0.2 million, respectively, which are mainly recognized under the "Voyage and commission expenses" in the statement of operations. |
ACCRUED_EXPENSES_Notes
ACCRUED EXPENSES (Notes) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Payables and Accruals [Abstract] | |||||||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | ACCRUED EXPENSES | ||||||
(in thousands of $) | 2014 | 2013 | |||||
Vessel operating and drydocking expenses | 5,762 | 5,538 | |||||
Administrative expenses | 967 | 757 | |||||
Interest expense | 7,043 | 6,273 | |||||
Provision for tax | 7,928 | 7,520 | |||||
21,700 | 20,088 | ||||||
Provision for tax includes provision for interest and penalties of $1.1 million and $0.8 million as of December 31, 2014 and 2013, respectively. |
OTHER_CURRENT_LIABILITIES_Note
OTHER CURRENT LIABILITIES (Notes) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Other Liabilities Disclosure [Abstract] | |||||||
Other Current Liabilities [Table Text Block] | OTHER CURRENT LIABILITIES | ||||||
(in thousands of $) | 2014 | 2013 | |||||
Deferred revenue | 20,594 | 17,888 | |||||
Mark-to-market interest rate swaps valuation (see note 24) | 15,222 | 15,119 | |||||
Mark-to-market cross currency interest rate swaps valuation (see note 24) | 56,639 | 16,804 | |||||
Mark-to-market foreign exchange rate swaps valuation (see note 24) | 16 | — | |||||
Deferred credits from capital lease transactions (see note 23) | 625 | 625 | |||||
Other creditors | 6,385 | 6,609 | |||||
99,481 | 57,045 | ||||||
DEBT_Debt_Notes
DEBT Debt (Notes) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Debt Disclosure [Text Block] | DEBT | ||||||||
(in thousands of $) | 2014 | 2013 | |||||||
Total debt | 1,052,532 | 889,471 | |||||||
Less: Short-term debt due to related parties | (20,000 | ) | — | ||||||
Less: Current portion of long-term debt due to third parties | (124,221 | ) | (156,363 | ) | |||||
Long-term debt | 908,311 | 733,108 | |||||||
Our outstanding debt as of December 31, 2014 is repayable as follows: | |||||||||
Year Ending December 31, | |||||||||
(in thousands of $) | |||||||||
2015 | 144,221 | ||||||||
2016 | 87,989 | ||||||||
2017 | 262,439 | ||||||||
2018 | 393,906 | ||||||||
2019 | 44,122 | ||||||||
2020 and thereafter | 119,855 | ||||||||
Total | 1,052,532 | ||||||||
Excluding the high-yield bonds, our debt is denominated in U.S. dollars and bears interest at fixed or floating rates at a weighted average interest rate for the years ended December 31, 2014 and 2013 of 2.90% and 3.37%, respectively. | |||||||||
At December 31, 2014, the maturity dates for our debt were as follows: | |||||||||
(in thousands of $) | 2014 | 2013 | Maturity date | ||||||
Golar LNG revolving credit facility (see note 25 (i)) | 20,000 | — | 2015 | ||||||
Golar Maria facility | 79,525 | 84,525 | 2018* | ||||||
High-yield bonds | 174,450 | 214,100 | 2017 | ||||||
Golar LNG Partners credit facility | 203,500 | 160,500 | 2018 | ||||||
Golar Partners Operating credit facility | 235,000 | 215,000 | 2018 | ||||||
Golar Freeze facility | 59,107 | 74,646 | 2018** | ||||||
NR Satu facility | 126,400 | 140,700 | 2020 | ||||||
Golar Igloo debt | 154,550 | — | 2019/2026*** | ||||||
1,052,532 | 889,471 | ||||||||
__________________________________________ | |||||||||
* A final balloon payment is due on the facility in December 2015. In April 2015, we obtained a signed term sheet from certain lenders to refinance the Golar Maria credit facility (see "Golar Maria Facility" below). | |||||||||
**The Commercial Loan facility tranche matures in June 2015. In April 2015, we obtained a signed term sheet from certain lenders to refinance the Commercial Loan facility tranche (see "Golar Freeze Facility" below) . The Exportfinans Loan facility tranche matures in June 2018. | |||||||||
***The Kexim and K-sure tranches have a term of twelve years from the date of draw down and the Commercial tranche has a term of five years from the date of draw down. | |||||||||
Golar Maria Facility | |||||||||
The Golar Maria facility was assumed by us upon the acquisition of the company that owns and operates the vessel from Golar in February 2013. The amount originally drawn down under the facility was $120 million, but the balance outstanding under the facility at the date of acquisition was $89.5 million. The facility is secured against the Golar Maria. In December 2014, we accepted an offer from the incumbent lenders to extend the Golar Maria facility for up to 12 months from its original maturity of December 2014. In December 2014, we entered into a supplemental deed with the incumbent lenders which amended the existing loan agreement. The amended deed provided for the release of World Shipholding Ltd. and other related companies indirectly controlled by trusts established by Mr. John Fredriksen for the benefit of certain members of his immediate family, as guarantors to the facility and amended certain terms mainly extending the Golar Maria facility for up to 12 months from its original maturity of December 2014. In connection with the extension, the margin on LIBOR on this facility was increased from 0.95% to 1.65%. The facility is repayable in quarterly installments with a final balloon payment of $75.8 million due in December 2015. As of December 31, 2014, we had $79.5 million of borrowings outstanding under the Golar Maria facility. | |||||||||
In April 2015, we obtained a signed term sheet from certain lenders to refinance the Golar Maria credit facility (which matures in December 2015) and the commercial loan tranche of the Golar Freeze facility (which matures in June 2015). The entry into the new credit agreement to refinance the Golar Maria credit facility and the commercial loan tranche of the Golar Freeze facility is subject to the negotiation and execution of a definitive credit agreement and the satisfaction of certain conditions ordinarily contained in these types of credit agreements. We cannot assure you that such proposed new credit agreement will be executed or that it will be effective prior to the maturity date of the Golar Maria facility or the commercial loan tranche of the Golar Freeze facility. Based on the term sheet, we expect that the facility will be a senior secured amortizing term loan and revolving credit facility in an amount equal to the lesser of $180 million or 60% of the combined fair market value of the vessels, the Golar Maria and the Golar Freeze, of which $120 million is a binding commitment. We expect that the facility will be divided into a term loan facility and a revolving credit facility. We expect that the term loan will in an amount equal to the lower of $150 million or 50% of the combined fair market value of the vessels and will be repaid in 12 quarterly installments of $3 million plus a balloon payment of $114 million. We expect that the revolving credit facility will be in an amount equal to the lower of $30 million or 10% of the combined fair market value of the vessels. The revolving credit facility will be available for drawing on a full revolving basis from drawdown of the term loan, up to three months prior to the final maturity date, in minimum amount of $5 million. All amounts outstanding are subject to repayment by the final maturity date, which we expect will be in June 2018. We therefore classified the $73.5 million outstanding loan under the Golar Maria credit facility, under long-term debt in our consolidated balance sheet. | |||||||||
High-yield Bonds | |||||||||
In October 2012, we completed the issuance of NOK 1,300 million senior unsecured bonds that mature in October 2017. The aggregate principal amount of the bonds at the time of issuance is equivalent to approximately $227 million. The bonds bear interest at three months NIBOR plus a margin of 5.20% payable quarterly. All interest and principal payments on the bonds were swapped into U.S. dollars including fixing interest payments at 6.485%. The net proceeds from the bonds were used primarily to repay the $222.3 million 6.75% loan due October 2014 from Golar that was utilized to purchase the Golar Freeze (Golar LNG Vendor Financing Loan - Golar Freeze). The bonds were listed on the Oslo Bors ASA in December 2012. As of December 31, 2014, the U.S. dollar equivalent of the principal amount is $174.5 million. | |||||||||
Golar LNG Partners Credit Facility | |||||||||
In September 2008, we refinanced existing loan facilities in respect of two of our vessels, the Methane Princess and the Golar Spirit, and entered into a new $285 million revolving credit facility with a banking consortium. The loan is secured against the Golar Spirit and the assignment to the lending banks of a mortgage given to us by the lessors of the Methane Princess, with a second priority charge over the Golar Mazo. | |||||||||
The revolving credit facility accrued floating interest at a rate per annum equal to LIBOR plus a margin of 1.15% until November 2014. The margin on LIBOR was changed to 1.34% in November 2014 due to a change in covenant requirements. The initial draw down amounted to $250 million in November 2008. The total amount outstanding at the time of refinancing, in respect of the two vessels’ facilities was $202.3 million. The revolving credit facility is a reducing facility which decreases by $2.5 million per quarter from June 30, 2009 through December 31, 2012 and by $5.5 million per quarter from March 31, 2013 through December 31, 2017. As of December 31, 2013, we had an undrawn $65 million available to us under this revolving credit facility, which we drew down in March 2014. Accordingly, as of December 31, 2014, we have no ability to draw additional amounts under this facility. The loan has a term of ten years and is repayable in quarterly installments commencing in May 2009 with a final balloon payment of $137.5 million due in March 2018, its maturity date. As of December 31, 2014, $203.5 million was outstanding on the revolving credit facility. | |||||||||
Golar Partners Operating Credit Facility | |||||||||
In June 2013, we refinanced existing lease financing arrangements in respect of two vessels, the Golar Winter and the Golar Grand, and entered into a new five year, $275 million loan facility with a banking consortium. The loan facility is split into two tranches, a $225 million term loan facility and a $50 million revolving credit facility which matures in June 2018. In December 2014, we drew down $40 million on the revolving credit facility. As of December 31, 2014, we had an undrawn balance of $10 million available to us under this revolving credit facility. The loan facility is secured against the Golar Winter and the Golar Grand and is repayable in quarterly installments with a final balloon payment of $130 million payable in July 2018. The loan facility and the revolving credit facility bear interest at LIBOR plus a margin of 3% together with a commitment fee of 1.2% on any undrawn portion of the facility. As of December 31, 2014, we had $235.0 million of borrowings outstanding under the Golar Partners Operating credit facility. | |||||||||
Golar Freeze Facility | |||||||||
We assumed the Golar Freeze facility pursuant to the purchase of the Golar Freeze from Golar, in October 2011. The amount originally drawn down under the facility in June 2010 was $125 million. The amount outstanding under the facility at the time we assumed the debt was approximately $108.0 million. The Golar Freeze facility is secured against the Golar Freeze. The facility is with a syndicate of banks and financial institutions and bears interest at LIBOR plus a margin of 3%. The facility is split into two tranches, the commercial loan facility and the Exportfinans loan facility. The Exportfinans loan facility tranche is for $50 million with a term of eight years and repayable in equal quarterly installments with the final payment due in June 2018. The Golar Freeze facility requires certain balances to be held on deposit during the period of the loan (see note 17). The commercial loan facility tranche matures in May 2015 and the Exportfinans loan facility tranche matures in 2018. | |||||||||
Repayments under the commercial loan facility tranche are due quarterly based on an annuity profile with a final balloon payment of $34.8 million payable in May 2015 which is presented under current debt. As of December 31, 2014, we had $59.1 million of borrowings outstanding under the Golar Freeze facility. | |||||||||
In April 2015, we obtained a signed term sheet from certain lenders to refinance the Golar Maria credit facility (which matures in December 2015) and the commercial loan tranche of the Golar Freeze facility (which matures in June 2015). The entry into the new credit agreement to refinance the Golar Maria credit facility and the commercial loan tranche of the Golar Freeze facility is subject to the negotiation and execution of a definitive credit agreement and the satisfaction of certain conditions ordinarily contained in these types of credit agreements. We cannot assure you that such proposed new credit agreement will be executed or that it will become effective prior to the maturity date of the Golar Maria credit facility or the commercial loan tranche of the Golar Freeze facility. Based on the term sheet, we expect that the facility will be a senior secured amortizing term loan and revolving credit facility in an amount equal to the lesser of $180 million or 60% of the combined fair market value of the vessels, the Golar Maria and the Golar Freeze, of which $120 million is a binding commitment. We expect that the facility will be divided to a term loan facility and a revolving credit facility. We expect that the term loan will be in an amount equal to the lesser of $150 million or 50% of the combined fair market value of the vessels and will be repaid in 12 quarterly installments of $3 million plus a balloon payment of $114 million. We expect that the revolving credit facility will be equal to the lower of $30 million or 10% of the combined fair market value of the vessels. The revolving credit facility will be available for drawing on a full revolving basis from drawdown of the term loan, up to three months prior to the final maturity date, in a minimum amount of $5 million. All amounts outstanding will be subject to repayment by the final maturity date, which we expect will be June 30, 2018. We therefore classified $34.8 million due under the commercial loan tranche of the Golar Freeze credit facility under long term-debt in our consolidated balance sheet. | |||||||||
NR Satu Facility | |||||||||
In December 2012, PTGI, the company that owns and operates the FSRU, NR Satu, entered into a seven year secured loan facility. The total facility amount is $175 million and is split into two tranches, a $155 million term loan facility and a $20 million revolving facility. The facility is with a syndicate of banks and bears interest at LIBOR plus a margin of 3.5% together with a commitment fee of 1.4% on any undrawn portion of the facility. PTGI drew down $155 million on the term loan facility in December 2012. As of December 31, 2014, we had an undrawn balance of $20 million available to us under the revolving facility. The loan is payable on a quarterly basis with a final balloon payment of $52.5 million payable in March 2020. The NR Satu facility requires certain balances to be held on deposit during the period of the loan (see note 17). As of December 31, 2014, we had $126.4 million of borrowings outstanding under this facility. | |||||||||
Golar Igloo Debt | |||||||||
The Golar Igloo debt originally formed part of Golar's $1.125 billion facility to fund eight of its newbuildings. The portion of the debt secured against the Golar Igloo was assumed by us upon our acquisition of the vessel from Golar in March 2014. The amount drawn down under the original facility and the balance outstanding at the date of acquisition was $161.3 million. The Golar Igloo debt bears interest at LIBOR plus a margin. The debt is divided into three tranches, with the following general terms, in line with the original facility: | |||||||||
Tranche | Proportion of debt | Term of loan | Repayment terms | Margin on LIBOR | |||||
K-Sure | 40% | 12 years | Semi-annual installments | 2.10% | |||||
KEXIM | 40% | 12 years | Semi-annual installments | 2.75% | |||||
Commercial | 20% | 5 years | Semi-annual installments, unpaid balance to be refinanced after 5 years | 2.75% | |||||
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). The commercial tranche is funded by a syndicate of banks and is for a term of five years from the date of drawdown with a final balloon payment of $20.2 million due in February 2019. 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. As of December 31, 2014, we had $154.6 million of borrowings outstanding under the facility. | |||||||||
As of December 31, 2014, the margins we pay under our loan agreements are above LIBOR at a fixed or floating rate ranging from 1.34% to 3.50%. The margin related to our high-yield bond is 5.20% above NIBOR. | |||||||||
Debt and lease restrictions | |||||||||
Our loan debt is 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 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. Our various debt agreements contain certain covenants, which require compliance with certain financial ratios. Such ratios include equity ratio covenants, working capital ratios, net debt to EBITDA ratios and minimum free cash restrictions. With regards to cash restrictions, we have covenanted to retain at least $30 million of cash and cash equivalents on a consolidated group basis. In addition, there are cross default provisions in most of our and Golar's loan and lease agreements. | |||||||||
Schedule of Debt [Table Text Block] | |||||||||
(in thousands of $) | 2014 | 2013 | |||||||
Total debt | 1,052,532 | 889,471 | |||||||
Less: Short-term debt due to related parties | (20,000 | ) | — | ||||||
Less: Current portion of long-term debt due to third parties | (124,221 | ) | (156,363 | ) | |||||
Long-term debt | 908,311 | 733,108 | |||||||
CAPITAL_LEASES_Notes
CAPITAL LEASES (Notes) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Leases [Abstract] | |||||||
Capital Leases in Financial Statements of Lessee Disclosure [Text Block] | CAPITAL LEASES | ||||||
(in thousands of $) | 2014 | 2013 | |||||
Total obligations under capital leases | 150,997 | 159,008 | |||||
As of December 31, 2014 and 2013, we operated one vessel under capital lease. | |||||||
The leasing transaction, which occurred in August 2003, was in relation to the newbuilding, the Methane Princess. We novated the Methane Princess newbuilding contract prior to completion of construction and leased the vessel from the same financial institution in the United Kingdom (“The Methane Princess Lease”). The lessor of the Methane Princess has a second priority security interest in the Methane Princess and the Golar Spirit. Our obligation to the lessor under the Methane Princess Lease is secured by a letter of credit (“LC”) provided by other banks. Details of the security deposit provided by us to the bank providing the LC are given in note 17. | |||||||
As of December 31, 2014, we are committed to make quarterly minimum capital lease payments (including interest), as follows: | |||||||
Year ending December 31, | Methane | ||||||
(in thousands of $) | Princess Lease | ||||||
2015 | 7,579 | ||||||
2016 | 7,866 | ||||||
2017 | 8,163 | ||||||
2018 | 8,489 | ||||||
2019 | 8,814 | ||||||
2020 and thereafter | 163,895 | ||||||
Total minimum lease payments | 204,806 | ||||||
Less: Imputed interest | (53,809 | ) | |||||
Present value of minimum lease payments | 150,997 | ||||||
The Methane Princess Lease liability continues to increase until 2018 and thereafter decreases over the period to 2033, which is the end of the primary term of the lease. The interest element of the lease rentals is accrued at a floating rate based upon British Pound (GBP) LIBOR. | |||||||
We determined that the entities that owned the vessels were variable interest entities in which we had a variable interest and was the primary beneficiary. Upon the initial transfer of the vessels to the financial institutions, we measured the subsequently leased vessels at the same amounts as if the transfer had not occurred, which was cost less accumulated depreciation at the time of transfer. |
OTHER_LONGTERM_LIABILITIES_OTH
OTHER LONG-TERM LIABILITIES OTHER LONG-TERM LIABILITIES (Notes) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Other Long-term Liabilities Disclosure [Abstract] | |||||||
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Noncurrent [Text Block] | OTHER LONG-TERM LIABILITIES | ||||||
(in thousands of $) | 2014 | 2013 | |||||
Deferred credits from capital lease transactions | 17,281 | 17,904 | |||||
Deferred credits from capital lease transactions | |||||||
(in thousands of $) | 2014 | 2013 | |||||
Deferred credits from capital lease transactions | 24,691 | 24,691 | |||||
Less: Accumulated amortization | (6,785 | ) | (6,162 | ) | |||
17,906 | 18,529 | ||||||
Short-term (see note 20) | 625 | 625 | |||||
Long-term | 17,281 | 17,904 | |||||
17,906 | 18,529 | ||||||
In connection with the Methane Princess Lease (see note 22), we recorded an amount representing the difference between the net cash proceeds received upon sale of the vessel and the present value of the minimum lease payments. The amortization of the deferred credit for the year is offset against depreciation and amortization expense in the statement of operations. The deferred credits represent the upfront benefits derived from undertaking finance in the form of a UK lease. The deferred credits are amortized over the remaining estimated useful economic life of the Methane Princess on a straight-line basis. | |||||||
Amortization for each of the years ended December 31, 2014, 2013 and 2012 was $0.6 million. |
FINANCIAL_INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS | ||||||||||||||||||||
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. Certain interest rate swap agreements qualify and are designated, for accounting purposes, as cash flow hedges. 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 and capital lease 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. Accordingly, 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, within interest expense, in the same period as the hedged items affect earnings. | |||||||||||||||||||||
We have entered into the following interest rate swap transactions involving the payment of fixed rates in exchange for LIBOR: | |||||||||||||||||||||
Instrument | Year End | Notional Amount | Maturity | Fixed Interest | |||||||||||||||||
(in thousands of $) | Dates | Rate | |||||||||||||||||||
Interest rate swaps: | |||||||||||||||||||||
Receiving floating, pay fixed | 31-Dec-14 | 919,130 | 2015 | to | 2020 | 0.92 | % | to | 2.96% | ||||||||||||
Receiving floating, pay fixed | 31-Dec-13 | 997,607 | 2014 | to | 2020 | 0.92 | % | to | 5.04% | ||||||||||||
During the year ended December 31, 2014, in connection with the acquisition of the Golar Igloo in March 2014, we assumed Golar Igloo's bank debt and the related interest rate swap with a notional value of $100 million. Interest rate swaps with a notional value of $130 million expired during the year ended December 31, 2014. | |||||||||||||||||||||
As of December 31, 2014 and 2013 the notional principal amount of the debt and capital lease obligations outstanding subject to such swap agreements was $919.1 million and $997.6 million, respectively. | |||||||||||||||||||||
The effect of cash flow hedging relationships relating to interest rate swap agreements on the statements of operations is as follows: | |||||||||||||||||||||
Derivatives designated as | Effective | Ineffective Portion | |||||||||||||||||||
hedging instruments | portion gain/(loss) | ||||||||||||||||||||
reclassified from | |||||||||||||||||||||
Accumulated Other | |||||||||||||||||||||
Comprehensive Loss | |||||||||||||||||||||
(in thousands of $) | Location | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||
Interest rate swaps | Other financial items, net | (1,339 | ) | 775 | — | (1,210 | ) | 1,015 | (409 | ) | |||||||||||
The effect of cash flow hedging relationships relating to interest rate swap agreements excluding the cross currency interest rate swap on the other comprehensive income is as follows: | |||||||||||||||||||||
Derivatives designated as hedging instruments | Amount of gain/ | ||||||||||||||||||||
(loss) recognized in | |||||||||||||||||||||
OCI on derivative | |||||||||||||||||||||
(effective portion) | |||||||||||||||||||||
(in thousands of $) | 2014 | 2013 | 2012 | ||||||||||||||||||
Interest rate swaps | 492 | 5,515 | 1,113 | ||||||||||||||||||
As of December 31, 2014 and 2013, our accumulated other comprehensive income included $3.4 million and $1.6 million of unrealized gains, respectively, on interest rate swap agreements excluding the cross currency interest rate swap designated as cash flow hedges. | |||||||||||||||||||||
The amounts reclassified from accumulated other comprehensive income (loss) to "Other financial items, net" for the years ended December 31, 2014, 2013 and 2012 were $1.3 million loss, $0.8 million gain and $nil, respectively. | |||||||||||||||||||||
As of December 31, 2014, 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 | |||||||||||||||||||||
For the periods reported, the majority of the vessels’ gross earnings were receivable in U.S. dollars and the majority of our transactions, assets and liabilities were denominated in U.S. dollars, our functional currency. However, we incur expenditures in other currencies. Our capital lease obligation and related restricted cash deposit are denominated in British Pounds. There is a risk that currency fluctuations will have a negative effect on the value of our cash flows. | |||||||||||||||||||||
A net foreign exchange gain of $0.7 million, $2.3 million and $1.6 million arose in the years ended December 31, 2014, 2013 and 2012, respectively. The net foreign exchange gain of $0.7 million arose in the year ended December 31, 2014 as a result of the $0.7 million gain (2013: $7.1 million gain) on the retranslation of our capital lease obligations and the cash deposits securing those obligations offset by $nil (2013: $4.8 million loss) on the mark-to-market valuation on the Golar Winter currency swap. This swap was terminated and cash settled in June 2013 in connection with the termination of the Golar Winter lease. | |||||||||||||||||||||
We entered into the Golar Winter currency swap in connection with the lease arrangement in respect of the Golar Winter, the obligation in respect of which was denominated in GBP. In this transaction the restricted cash deposit, which secured the letter of credit given to the lessor to secure part of Golar’s obligations to the lessor, was much less than the obligation and therefore, unlike the Methane Princess Lease, did not provide a natural hedge. In order therefore, to hedge this exposure, we entered into a currency swap with a bank, who was also the lessor, to exchange GBP payment obligations into U.S. dollar payment obligations. The swap hedged the full amount of the GBP lease obligation. In June 2013, in connection with the termination of the lease financing arrangement in respect of the Golar Winter, the associated Golar Winter currency swap was also terminated. | |||||||||||||||||||||
As of December 31, 2014, we have the following foreign currency forward contract:. | |||||||||||||||||||||
Notional Amount | Average forward | ||||||||||||||||||||
Instrument | Receiving in | Pay in USD | Maturity | rate USD foreign | |||||||||||||||||
(in thousands) | foreign currency | Date | currency | ||||||||||||||||||
Currency rate swaps: | |||||||||||||||||||||
Singapore dollars | 563 | 441 | 2015 | 1.276 | |||||||||||||||||
As of December 31, 2013, we had no foreign currency forward contract. | |||||||||||||||||||||
Cross currency interest rate swap | |||||||||||||||||||||
As of December 31, 2014 and 2013, the details of our cross currency interest rate swap are as follows: | |||||||||||||||||||||
Interest rate element | Currency element | ||||||||||||||||||||
Notional Amount | Average forward | ||||||||||||||||||||
rate USD foreign | |||||||||||||||||||||
Instrument | Notional Amount | Fixed Interest Rate | Receiving in | Pay in USD | Maturity | currency | |||||||||||||||
(in thousands) | Norwegian Kroner | Date | |||||||||||||||||||
Cross currency interest rate swap | 227,193 | 6.485 | % | 1,300,000 | 227,193 | 2017 | 5.722 | ||||||||||||||
As described in note 21, we issued NOK denominated senior unsecured bonds. In order to hedge our exposure, we entered into a non-amortizing cross currency interest rate swap agreement. The swap hedges both the full redemption amount of the NOK obligation and the related quarterly interest payments. We designated the cross currency interest rate swap as a cash flow hedge. Accordingly, the net loss recognized in accumulated other comprehensive income is as follows: | |||||||||||||||||||||
Derivatives designated as hedging instruments | Amount of gain/ | ||||||||||||||||||||
(loss) recognized in | |||||||||||||||||||||
OCI on derivative | |||||||||||||||||||||
(effective portion) | |||||||||||||||||||||
(in thousands of $) | 2014 | 2013 | 2012 | ||||||||||||||||||
Cross currency interest rate swap | (184 | ) | 1,080 | (5,063 | ) | ||||||||||||||||
As of December 31, 2014 and 2013, our accumulated other comprehensive income included $4.2 million and $4.0 million of unrealized losses, respectively, on the cross currency interest rate swap designated as a cash flow hedge. There has been no ineffectiveness in any of the years presented. | |||||||||||||||||||||
The amount recorded in accumulated other comprehensive income will subsequently be reclassified into earnings in the same period as the hedged item affects earnings. As of December 31, 2014, we do not expect any material amounts to be reclassified from accumulated other comprehensive income to earnings during the next twelve months. | |||||||||||||||||||||
Fair values | |||||||||||||||||||||
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. | |||||||||||||||||||||
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 estimated fair value of our financial instruments at December 31, 2014 and 2013 are as follows: | |||||||||||||||||||||
(in thousands of $) | Fair Value | 2014 Carrying Value | 2014 Fair Value | 2013 Carrying Value | 2013 Fair Value | ||||||||||||||||
Hierarchy(1) | |||||||||||||||||||||
Non-Derivatives: | |||||||||||||||||||||
Cash and cash equivalents | Level 1 | 98,998 | 98,998 | 103,100 | 103,100 | ||||||||||||||||
Restricted cash and short-term investments | Level 1 | 172,383 | 172,383 | 170,176 | 170,176 | ||||||||||||||||
Short-term debt due to related party | Level 3 | 20,000 | 20,000 | — | — | ||||||||||||||||
High-yield bonds(1) | Level 1 | 174,450 | 173,578 | 214,100 | 221,166 | ||||||||||||||||
Long-term debt—floating(2) | Level 2 | 858,082 | 858,082 | 675,371 | 675,371 | ||||||||||||||||
Obligations under capital leases(2) | Level 2 | 150,997 | 150,997 | 159,008 | 159,008 | ||||||||||||||||
Derivatives: | |||||||||||||||||||||
Interest rate swaps asset(3)(4) | Level 2 | 3,617 | 3,617 | 5,335 | 5,335 | ||||||||||||||||
Interest rate swaps liability(3)(4) | Level 2 | 15,222 | 15,222 | 15,119 | 15,119 | ||||||||||||||||
Cross currency interest rate swap liability(3)(5) | Level 2 | 56,639 | 56,639 | 16,804 | 16,804 | ||||||||||||||||
Foreign currency swaps liability(3) | Level 2 | 16 | 16 | — | — | ||||||||||||||||
__________________________________________ | |||||||||||||||||||||
-1 | This pertains to high-yield bonds with a carrying value of $174.5 million as of December 31, 2014 which is included under long-term debt on the balance sheet. The fair value of the high-yield bonds as of December 31, 2014 was $173.6 million (2013: $221.2 million), which represents 99.5% (2013: 103.3%) of its face value. | ||||||||||||||||||||
-2 | Our debt and capital lease obligations are recorded at amortized cost in the consolidated balance sheets. | ||||||||||||||||||||
-3 | Derivative liabilities are captured within other current liabilities and derivative assets are captured within long-term assets on the balance sheet. | ||||||||||||||||||||
-4 | The fair value/carrying value of interest rate swap agreements (excluding the cross currency interest rate swap described in footnote 5) that qualify and are designated as cash flow hedges as of December 31, 2014 and 2013 was $2.0 million (with a notional amount of $211.6 million) and $3.5 million (with a notional amount of $287.1 million), respectively. The expected maturity of these interest rate agreements is from May 2015 to March 2018. | ||||||||||||||||||||
-5 | We issued NOK denominated senior unsecured bonds. In order to hedge our exposure, we entered into a non-amortizing cross currency interest rate swap agreement. The swap hedges both the full redemption amount of the NOK obligation and the related quarterly interest payments. We designated the cross currency interest rate swap as a cash flow hedge. | ||||||||||||||||||||
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. | |||||||||||||||||||||
Certain methods and assumptions were used to estimate the fair value of each class of financial instruments. The carrying amounts of accounts receivables, accounts payables and accrued liabilities approximate fair values because of the short maturity of those instruments. | |||||||||||||||||||||
The carrying value of cash and cash equivalents, which are highly liquid, is a reasonable estimate of fair value. | |||||||||||||||||||||
The estimated fair value for restricted cash and short-term investments is considered to be equal to the carrying value since they are placed for periods of less than six months. The estimated fair value for long-term restricted cash is considered to be equal to the carrying value since it bears variable interest rates which are reset on a quarterly basis. | |||||||||||||||||||||
The carrying value of short-term debt due to related party refers to our revolving credit facility with Golar. The carrying amount of this debt approximates its fair value because of the short maturity of this instrument. | |||||||||||||||||||||
The estimated fair value of our high yield bonds is based on the quoted market price as of the balance sheet date. | |||||||||||||||||||||
The estimated fair value for floating long-term debt is considered to be equal to the carrying value since it bears variable interest rates, which are reset on a quarterly basis. | |||||||||||||||||||||
The estimated fair values of long-term lease obligations under capital leases are considered to be equal to the carrying value since they bear interest at rates, which are reset on a quarterly basis. | |||||||||||||||||||||
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, and our credit worthiness and of our swap counterparty. The mark-to-market gain or loss on our interest rate and foreign currency swaps that are not designated as hedges for accounting purposes for the period is reported in the statement of operations caption "other financial items, net" (see note 7). | |||||||||||||||||||||
The credit exposure of interest rate swap agreements is represented by the fair value of contracts with a positive fair value at the end of each period, reduced by the effects of master netting agreements. It is our policy to enter into master netting agreements with the counterparties to derivative financial instrument contracts, which give us the legal right to discharge all or a portion of amounts owed to that counterparty by offsetting them against amounts that the counterparty owes to us. | |||||||||||||||||||||
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 balance of derivatives on a net basis, the amounts presented in our consolidated balance sheets as of December 31, 2014 and 2013 would be adjusted as detailed in the following table: | |||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||
(in thousands of $) | 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 | |||||||||||||||
Total asset derivatives | 3,617 | (1,831 | ) | 1,786 | 5,335 | — | 5,335 | ||||||||||||||
Total liability derivatives | 15,222 | (1,831 | ) | 13,391 | 15,119 | — | 15,119 | ||||||||||||||
The cross currency interest rate swap has a credit support arrangement that requires us to provide cash collateral in the event that the market valuation drops below a certain level. Valuation has fallen below this level and a cash collateral amounting to $9.7 million has been provided as of December 31, 2014 (see note 17). | |||||||||||||||||||||
The fair value measurement of an asset or 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. A credit valuation adjustment of $3.2 million (2013: $nil) was recognized for the year ended December 31, 2014 in relation to our cross-currency swap. | |||||||||||||||||||||
The cash flows from economic hedges are classified in the same category as the cash flows from the items subject to the economic hedging relationship. | |||||||||||||||||||||
Concentrations of risk | |||||||||||||||||||||
The maximum exposure to credit risk is the carrying value of cash and cash equivalents, restricted cash and short-term investments, trade accounts receivable, other receivables and amounts due from related parties. There is a concentration of credit risk with respect to cash and cash equivalents, restricted cash and short-term investments to the extent that substantially all of the amounts are carried with Nordea Bank Finland Plc, Lloyds TSB Bank plc, Citibank, DNB Bank ASA, Santander UK plc, Sumitomo Mitsui Banking Corporation and Standard Chartered PLC. However, we believe this risk is remote. | |||||||||||||||||||||
During the year ended December 31, 2014, seven customers accounted for all of our revenues. These revenues and associated accounts receivable are derived from two time charters with BG Group plc, one time charter with Pertamina, one time charter with DUSUP, two time charters with Petrobras, one time charter with PTNR, one time charter with Eni S.p.A. and one time charter with KNPC. We consider the credit risk of BG Group plc, Petrobras, DUSUP, PTNR, Eni S.p.A and KNPC to be low. Pertamina is a state enterprise of the Republic of Indonesia. Credit risk is mitigated by the long-term contract with Pertamina being payable | |||||||||||||||||||||
monthly in advance and further, the gas sales contracts are with the Chinese Petroleum Corporation, our joint venture partner in the Golar Mazo. | |||||||||||||||||||||
During the years ended December 31, 2014, 2013 and 2012, Petrobras accounted for at least 25% of gross revenue (see note 6). Details of revenues derived from each customer for the years ended December 31, 2014, 2013 and 2012 are found in note 6. |
RELATED_PARTY_TRANSACTIONS_Not
RELATED PARTY TRANSACTIONS (Notes) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Related Party Transactions [Abstract] | ||||||||||
Related Party Transactions Disclosure [Text Block] | RELATED PARTY TRANSACTIONS | |||||||||
Historically, the Combined Entity and the Dropdown Predecessor were an integrated part of Golar. As such, the Bermudan and London office locations of Golar have provided general and corporate management services for the Combined Entity and Dropdown Predecessor as well as other Golar entities and operations. Consequently, for the purpose of the combined statement of operations this includes allocations for administrative expenses and other financial items as described in note 2 which are excluded from the disclosures below: | ||||||||||
Net expenses from related parties: | ||||||||||
(in thousands of $) | 2014 | 2013 | 2012 | |||||||
Transactions with Golar and affiliates: | ||||||||||
Management and administrative services fees (a) | 2,877 | 2,569 | 2,876 | |||||||
Ship management fees (b) | 7,746 | 6,701 | 4,222 | |||||||
Interest expense on high-yield bonds (c) | — | 1,972 | 575 | |||||||
Interest expense on Golar LNG vendor financing loan - Golar Freeze (d) | — | — | 11,921 | |||||||
Interest expense on Golar LNG vendor financing loan - NR Satu (e) | — | — | 4,737 | |||||||
Interest expense on Golar Energy loan (f) | — | — | 829 | |||||||
Total | 10,623 | 11,242 | 25,160 | |||||||
Receivables (payables) from related parties: | ||||||||||
As of December 31, 2014 and 2013, balances with related parties consisted of the following: | ||||||||||
(in thousands of $) | 2014 | 2013 | ||||||||
Trading balances due to Golar and affiliates (g) | (13,337 | ) | (5,989 | ) | ||||||
Methane Princess Lease security deposit movements (h) | 3,486 | 4,257 | ||||||||
Short-term loan due to Golar (i) | (20,000 | ) | — | |||||||
(29,851 | ) | (1,732 | ) | |||||||
__________________________________________ | ||||||||||
(a) Management and administrative services agreement - On March 30, 2011, we entered into a management and administrative services agreement with Golar Management, a wholly-owned subsidiary of Golar, pursuant to which Golar Management will provide to us 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. We may terminate the agreement by providing 120 days' written notice. | ||||||||||
(b) Ship management fees - Golar and certain of its affiliates charged ship management fees to us for the provision of technical and commercial management of the vessels. Each of our vessels is subject to management agreements pursuant to which certain commercial and technical management services are provided by certain affiliates of Golar, including Golar Management and Golar Wilhelmsen AS ("Golar Wilhelmsen"), a partnership that is jointly controlled by Golar and by Wilhelmsen Ship Management (Norway) AS. We may terminate these agreements by providing 30 days' written notice. | ||||||||||
(c) High-yield bonds - In October 2012, we completed the issuance of NOK1,300 million in senior unsecured bonds that mature in October 2017. The aggregate principal amount of the bonds is equivalent to approximately $227 million at the time of issuance. Of this amount, NOK200 million (2012: approximately $35.0 million) was held by Golar until their disposal in November 2013 (see note 21). | ||||||||||
(d) Golar LNG vendor financing loan - Golar Freeze - In October 2011, in connection with the purchase of the Golar Freeze, we entered into a financing loan agreement with Golar for an amount of $222.3 million. The facility was unsecured and bore interest at a fixed rate of 6.75% per annum payable quarterly. The loan was non-amortizing with a final balloon payment of $222.3 million due in October 2014. The loan was repaid in October 2012 using the net proceeds from the bond issuance. | ||||||||||
(e) Golar LNG vendor financing loan - NR Satu - In July 2012, in connection with the purchase of the NR Satu, we entered into a financing loan agreement with Golar for an amount of $175 million. Of this amount, $155 million was drawn down in July 2012. A further $20 million was available for draw down until July 2015. The facility is unsecured and bears interest at a fixed rate of 6.75% per annum payable quarterly. The loan is non-amortizing with a final balloon payment for the amount drawn down due within three years from the date of draw down. The loan was repaid in December 2012 using the proceeds from the NR Satu facility. | ||||||||||
(f) Golar Energy loan - In January 2012, Golar LNG (Singapore) Pte. Ltd. ("Golar Singapore"), the subsidiary which holds the investment in PTGI, drew down $25 million on its loan agreement entered into in December 2011 with Golar LNG Energy Limited ("Golar Energy"). The loan was unsecured, repayable on demand and bore interest at the rate of 6.75% per annum payable on a quarterly basis. In connection with the acquisition of the subsidiaries that own and operate the NR Satu, all amounts payable to Golar Energy by the subsidiaries acquired by us, including Golar Singapore, were extinguished. | ||||||||||
(g) Trading balances - Primarily relate to unpaid fees and expenses for management and administrative services and vessel management services performed by Golar and its affiliates. 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 due to Golar and its affiliates are unsecured, interest-free and intended to be settled in the ordinary course of business. | ||||||||||
(h) Methane Princess Lease security deposit movements - This represents net advances to Golar since the IPO, which correspond with the net release of funds from the security deposits held relating to the Methane Princess Lease. This is in connection with the Methane Princess tax lease indemnity provided by Golar under the Omnibus Agreement (see below). Accordingly, these amounts held with Golar will be settled as part of the eventual termination of the Methane Princess Lease. | ||||||||||
(i) $20 million revolving credit facility - On April 13, 2011, we entered into a $20 million revolving credit facility with Golar. The facility matures in June 2015 and is unsecured and interest-free. In March 2014, we drew down $20 million from the facility. As of December 31, 2014, we have an outstanding balance of $20 million under this facility. | ||||||||||
(j) Dividends to China Petroleum Corporation - During the years ended December 31, 2014, 2013 and 2012, Faraway Maritime Shipping Co., which is 60% owned by us and 40% owned by China Petroleum Corporation ("CPC"), paid total dividends to CPC of $13.7 million, $10.6 million and $1.8 million, respectively. | ||||||||||
(k) Acquisitions from Golar - We acquired from Golar equity interests in certain subsidiaries which own or lease and operate the NR Satu, the Golar Grand, the Golar Maria and the Golar Igloo. The acquisition of the first two vessels were concluded between entities under common control and, thus, the net assets acquired were recorded at historic book value. The acquisition of the Golar Maria and the Golar Igloo were accounted for as a business combination (see note 10). | ||||||||||
Our Board of Directors ("the Board") and the Conflicts Committee of the Board (the "Conflicts Committee") approved the purchase price and vendor financing loan (where applicable) for each transaction. The Conflicts Committee retained a financial advisors, to assist with its evaluation of the transaction. | ||||||||||
NR Satu | ||||||||||
On July 19, 2012, we acquired Golar’s equity interests in certain subsidiaries which own and operate the NR Satu. The purchase consideration was $385 million for the vessel and working capital adjustments of $3.0 million, resulting in total purchase consideration of approximately $388 million of which $230 million was financed from the proceeds of the July 2012 equity offering and $155 million in the form of the Golar LNG vendor financing loan, further described in paragraph (e) above. | ||||||||||
Golar Grand | ||||||||||
On November 8, 2012, we acquired Golar's equity interests in subsidiaries which lease and operate the Golar Grand. The purchase consideration was $265 million for the vessel and working capital adjustments of $2.6 million, net of the assumed capital lease obligation of $90.8 million, resulting in total purchase consideration of $176.8 million which was principally financed from the proceeds of the November 2012 equity offering. | ||||||||||
Golar Maria and the Golar Igloo | ||||||||||
In February 2013 and March 2014, we acquired Golar's 100% interest in the companies that own and operate the Golar Maria and the Golar Igloo, respectively. The details of the transactions are omitted from the table above, as these were accounted for as business combinations (see note 10). | ||||||||||
(l) Payment due under Omnibus Agreement - During the years ended December 31, 2014 and 2013, we incurred expenses of $nil and $3.3 million, respectively, which was indemnified by Golar as part of the Omnibus agreement. | ||||||||||
(m) Dividends to Golar - Since our IPO in April 2011, we have declared and paid quarterly distributions totaling $61.3 million, $63.7 million and $47.3 million to Golar for each of the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||
Golar Grand option | ||||||||||
In connection with the acquisition of the Golar Grand in November 2012, we entered into an Option Agreement with Golar. Under the Option Agreement, we had an option to require Golar to enter into a new time charter with Golar as charterer until October 2017, if the original charterer did not renew or extend the existing charter after the initial term (which expired in February 2015). The charterer did not extend the charter. Accordingly, in February 2015, we exercised our option to require Golar to charter the vessel through to October 2017 at approximately 75% of the hire rate that would have been payable by the charterer, representing an approximate 25% loss of daily revenue to us with respect to the Golar Grand. | ||||||||||
Indemnifications and guarantees | ||||||||||
Tax lease indemnifications | ||||||||||
Under the Omnibus Agreement, Golar has agreed to indemnify us in the event of any liabilities in excess of scheduled or final settlement amounts arising from the Methane Princess leasing arrangement and the termination thereof. | ||||||||||
In addition, Golar has agreed to indemnify us against any liabilities incurred as a consequence of a successful challenge by the UK Revenue Authorities with regard to the initial tax basis of the transactions in respect of the Methane Princess and other vessels previously financed by UK tax leases or in relation to the restructuring terminations in 2010. | ||||||||||
Environmental and other indemnifications | ||||||||||
Under the Omnibus Agreement, Golar has agreed to indemnify us until April 13, 2016, against certain environmental and toxic tort liabilities with respect to the assets that Golar contributed or sold to us to the extent arising 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 million. | ||||||||||
In addition, pursuant to the Omnibus Agreement, Golar agreed to indemnify us for any defects in title to the assets contributed or sold to us and any failure to obtain, prior to April 13, 2011, certain consents and permits necessary to conduct our business, which liabilities arise within three years after the closing of our IPO on April 13, 2011. | ||||||||||
Acquisition of Golar Freeze and NR Satu | ||||||||||
Under the Purchase, Sale and Contribution Agreement entered into between Golar and us on October 19, 2011 and July 19, 2012, Golar has agreed to extend the above indemnifications to include any liabilities relating to the Golar Freeze and the NR Satu. Accordingly, as of December 31, 2014, Golar indemnified us $0.5 million in relation to a claim related to the NR Satu (see note 26). | ||||||||||
Acquisition of the Golar Maria and the Golar Igloo | ||||||||||
Under the Purchase, Sale and Contribution Agreement entered into between Golar and us on February 7, 2013 and March 28, 2014 in relation to the Golar Maria and the Golar Igloo, respectively, Golar has agreed to indemnify us against certain environmental and toxic tort liabilities with respect to the assets that Golar contributed or sold to us to the extent arising prior to the time they were contributed or sold and to the extent that we notify Golar within five years of the date of the agreements. | ||||||||||
Additionally, any losses, suffered or incurred by us as a result of any offhire time and repair costs due to delays in the mobilization of the Golar Igloo will be indemnified by Golar. |
OTHER_COMMITMENTS_AND_CONTINGE
OTHER COMMITMENTS AND CONTINGENCIES OTHER COMMITMENTS AND CONTINGENCIES (Notes) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||
Commitments and Contingencies Disclosure [Text Block] | OTHER COMMITMENTS AND CONTINGENCIES | ||||||
Assets pledged | |||||||
(in thousands of $) | 2014 | 2013 | |||||
Book value of vessels and equipment secured against long-term loans and capital leases | 1,623,423 | 1,409,284 | |||||
Other contractual commitments and contingencies | |||||||
Insurance | |||||||
We insure the legal liability risks for our shipping activities with Gard and Skuld, which are mutual protection and indemnity associations. As a member of a mutual association, we have inquired 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. | |||||||
Tax lease benefits | |||||||
The benefits under lease financings are derived primarily from tax depreciation assumed to be available to lessors as a result of their investment in the vessels. If that tax depreciation ultimately proves not to be available to the lessors, or is recovered from the lessor as a result of adverse tax rate changes or rulings, or in the event we terminate one or more of our leases, 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, together with fees that were financed in connection with our lease financing transactions, post additional security or make additional payments to our lessors. As of December 31, 2014, we have one remaining UK tax lease (relating to the Methane Princess). A termination of this lease would realize the accrued currency gain or loss recorded against the lease liability, net of the restricted cash. As of December 31, 2014, there was a net accrued gain of approximately $0.4 million. | |||||||
Golar has agreed to indemnify us against any liabilities incurred as a consequence of a successful challenge by the UK Revenue Authorities with regard to the initial tax basis of the transactions in respect of the remaining lease (including the other vessels previously financed by UK tax leases) or in relation to the restructuring terminations in 2010. | |||||||
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. | |||||||
PT Golar Indonesia, our subsidiary that is both the owner and operator of the NR Satu, was notified of a claim that may be filed against it by PT Rekayasa, a subcontractor of the charterer, PT Nusantara Regas, claiming that we and our subcontractor caused damage to the pipeline in connection with the FSRU conversion of the NR Satu and the related mooring. We entered into compromise settlement discussions with the other parties which concluded in December 2014. The compromise settlement amount of $3.0 million was paid in December 2014, of which we recovered $2.5 million from our subcontractor who was also a party to these settlement discussions. As part of the disposal of the NR Satu in July 2012 by Golar, Golar has agreed to indemnify us against any non-recoverable losses arising from actions prior to the disposal. As of December 31, 2014, we have recorded a receivable of $0.5 million from Golar in relation to this indemnity for our non-recoverable losses. |
EQUITY_ISSUANCES_Notes
EQUITY ISSUANCES (Notes) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Equity Issuances [Abstract] | |||||||||||||||||||
EQUITY OFFERINGS [Text Block] | EQUITY ISSUANCES | ||||||||||||||||||
The following table summarizes the issuances of common and general partner units since our IPO in April 2011: | |||||||||||||||||||
Date | Number of Common Units Issued1 | Offering Price | Gross Proceeds (in thousands of $)2 | Net Proceeds (in thousands of $) | Golar's Ownership after the Offering3 | Use of Proceeds | |||||||||||||
Jul-12 | 7,294,305 | $ | 30.95 | 230,366 | 221,746 | 57.5 | % | Acquisition of the NR Satu | |||||||||||
Nov-12 | 5,824,590 | $ | 30.5 | 181,275 | 180,105 | 54.1 | % | Acquisition of the Golar Grand | |||||||||||
Jan-13 | 4,316,947 | $ | 29.74 | 131,006 | 130,244 | 50.9 | % | Acquisition of the Golar Maria | |||||||||||
Dec-13 | 5,100,000 | $ | 29.1 | 151,439 | 150,342 | 41.4 | % | Acquisition of the Golar Igloo | |||||||||||
_________________________________________ | |||||||||||||||||||
1 Includes common units issued by us to Golar in a private placement made concurrent to the public offering of 969,305 common units, 1,524,590 common units and 416,947 common units in July 2012, November 2012 and January 2013, respectively. There was no private placement of common units to Golar in the December 2013 offering, however, 3,400,000 of our common units held by Golar were sold to the public in a secondary offering. | |||||||||||||||||||
2 Includes General Partner's 2% proportionate capital contribution. | |||||||||||||||||||
3 Includes Golar's 2% general partner interest in the Partnership. | |||||||||||||||||||
The following table shows the movement in the number of common units, subordinated units and general partner units during the years ended December 31, 2014 and 2013: | |||||||||||||||||||
(in units) | Common Units | Subordinated Units | GP Units | ||||||||||||||||
31-Dec-12 | 36,246,149 | 15,949,831 | 1,065,225 | ||||||||||||||||
January 2013 offerings | 4,316,947 | — | 88,101 | ||||||||||||||||
December 2013 offerings | 5,100,000 | — | 104,082 | ||||||||||||||||
December 31, 2013 and 2014 | 45,663,096 | 15,949,831 | 1,257,408 | ||||||||||||||||
In January 2015, 7,170,000 of our common units representing limited partner interests in the Partnership held by Golar were sold to the public in a secondary offering (see note 29). |
EARNINGS_PER_UNIT_AND_CASH_DIS
EARNINGS PER UNIT AND CASH DISTRIBUTIONS (Notes) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Earnings Per Unit and Cash Distributions [Abstract] | ||||||||||
Earnings Per Share [Text Block] | EARNINGS PER UNIT AND CASH DISTRIBUTIONS | |||||||||
Earnings per unit have been calculated in accordance with the distribution guidelines set forth in the Partnership agreement and are determined by adjusting net income for the period by distributions made or to be made in relation to the period irrespective of the declaration and payment dates. The calculations of basic and diluted earnings per unit are presented below: | ||||||||||
(in thousands of $ except unit and per unit data) | 2014 | 2013 | 2012 | |||||||
Net income attributable to general partner and limited partner interests | 174,154 | 141,296 | 116,418 | |||||||
Less: Dropdown Predecessor net income | — | — | (28,015 | ) | ||||||
Less: distributions paid (1) | (143,450 | ) | (127,260 | ) | (87,072 | ) | ||||
Under distributed earnings | 30,704 | 14,036 | 1,331 | |||||||
Under distributed earnings attributable to: | ||||||||||
Common unit holders | 13,347 | 6,649 | 1,304 | |||||||
Weighted average units outstanding (basic and diluted) (in thousands): | ||||||||||
Common units | 45,663 | 40,417 | 27,441 | |||||||
Earnings per unit (basic and diluted): | ||||||||||
Common unit holders | 2.47 | 2.31 | 2.08 | |||||||
Cash distributions declared and paid in the period per unit (2): | 2.14 | 2.05 | 1.78 | |||||||
Subsequent event: Cash distributions declared and paid per unit relating to the period (3) | 0.56 | 0.52 | 0.5 | |||||||
__________________________________________ | ||||||||||
(1) This refers to distributions made or to be made in relation to the period irrespective of the declaration and payment dates and based on the number of units outstanding at the quarter end date. This also includes cash distributions to IDR holders for the years ended December 31, 2014, 2013 and 2012 of $6.3 million, $4.9 million and $nil, respectively. | ||||||||||
(2) Refers to cash distributions declared and paid during the period. | ||||||||||
(3) Refers to cash distributions declared and paid subsequent to the period end. | ||||||||||
As of December 31, 2014, of our total number of units outstanding, 59% (2013: 59%) were held by the public and the remaining units were held by Golar (including the general partner units representing a 2% interest). | ||||||||||
Earnings per unit is determined by adjusting net income for the period by distributions made or to be made in relation to the period. Any earnings in excess of distributions are allocated to partnership units based upon the cash distribution guidelines in our First Amended and Restated Agreement of Limited Partnership (the “Partnership Agreement”). Any distributions in excess of earnings are allocated to partnership units based upon the allocation and distribution of amounts from partners’ capital accounts. The resulting earnings figure is divided by the weighted-average number of units outstanding during the period. | ||||||||||
The General Partner’s, common unit holders’ and subordinated unit holder’s interests in net income are calculated as if all net income was distributed according to the terms of the Partnership Agreement, regardless of whether those earnings would or could be distributed. The Partnership Agreement does not provide for the distribution of net income; rather, it provides for the distribution of available cash, which is a contractually defined term that generally means all cash on hand at the end of the quarter after establishment of cash reserves determined by our board of directors to provide for the proper conduct of our business including reserves for maintenance and replacement capital expenditure and anticipated credit needs. In addition, the General Partner and Golar Energy (both subsidiaries of Golar) are currently entitled to incentive distributions if the amount we distribute to unit holders with respect to any quarter exceeds specified target levels. Unlike available cash, net income is affected by non-cash items, such as depreciation and amortization, unrealized gains or losses on non-designated derivative instruments and foreign currency translation gains (losses). | ||||||||||
Under the Partnership Agreement, during the subordination period, the common units will have the right to receive distributions of available cash from operating surplus in an amount equal to the minimum quarterly distribution of $0.3850 per unit per quarter, plus any arrearages in the payment of minimum quarterly distribution on the common units from prior quarters, before any distributions of available cash from operating surplus may be made on the subordinated units. | ||||||||||
The amount of the minimum quarterly distribution is $0.3850 per unit or $1.54 unit per unit on an annualized basis and is made in the following manner, during the subordination period: | ||||||||||
• | First, 98% to the common unit holders, pro rata, and 2% to the General Partner until each common unit has received a minimum quarterly distribution of $0.3850; | |||||||||
• | Second, 98% to the common unit holders, pro rata, and 2% to the General Partner, until each common unit has received an amount equal to any arrearages in payment of the minimum quarterly distribution on the common units for prior quarters during the subordination period; and | |||||||||
• | Third, 98% to the holders of subordinated units, pro rata, and 2% to the General Partner until each subordinated unit has received a minimum quarterly distribution of $0.3850. | |||||||||
In addition, the General Partner and Golar Energy currently hold all of the incentive distribution rights in the Partnership. Incentive distribution rights represent the right to receive an increasing percentage of quarterly distributions of available cash from operating surplus after the minimum quarterly distribution and the target distribution levels have been achieved. | ||||||||||
If for any quarter: | ||||||||||
• | we have distributed available cash from operating surplus to the common and subordinated unit holders in an amount equal to the minimum quarterly distribution; and | |||||||||
• | we have distributed available cash from operating surplus on outstanding common units in an amount necessary to eliminate any cumulative arrearages in payment of the minimum quarterly distribution; | |||||||||
then, we will distribute any additional available cash from operating surplus for that quarter among the unit holders and the General Partner in the following manner: | ||||||||||
• | first, 98.0% to all unit holders, pro rata, and 2.0% to the General Partner, until each unit holder receives a total of $0.4428 per unit for that quarter (the “first target distribution”); | |||||||||
• | second, 85.0% to all unit holders, pro rata, 2.0% to the General Partner and 13.0% to the holders of the incentive distribution rights, pro rata, until each unit holder receives a total of $0.4813 per unit for that quarter (the “second target distribution”); | |||||||||
• | third, 75.0% to all unit holders, pro rata, 2.0% to the General Partner and 23.0% to the holders of the incentive distribution rights, pro rata, until each unit holder receives a total of $0.5775 per unit for that quarter (the “third target distribution”); and | |||||||||
• | thereafter, 50.0% to all unit holders, pro rata, 2.0% to the General Partner and 48.0% to the holders of the incentive distribution rights, pro rata. | |||||||||
In each case, the amount of the target distribution set forth above is exclusive of any distributions to common unit holders to eliminate any cumulative arrearages in payment of the minimum quarterly distribution. The percentage interests set forth above assume that the General Partner maintains its 2.0% general partner interest and that we do not issue additional classes of equity securities. |
SUBSEQUENT_EVENTS_SUBSEQUENT_E
SUBSEQUENT EVENTS SUBSEQUENT EVENTS (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS |
In January 2015, we completed our acquisition of interests in the companies that own and operate the FSRU, the Golar Eskimo (see note 30). | |
In January 2015, we closed a secondary offering of 7,170,000 shares of our common units representing limited partner interests in the Partnership held by Golar at a price to the public of $29.90 per unit. Following the offering, Golar’s stake in us was reduced from 41% to 30%. We did not receive any proceeds from the sale of common shares by Golar and the number of common units outstanding will remain unchanged. | |
On February 24, 2015, Mr. Hans Petter Aas and Mr. Bart Veldhuizen resigned from our board of directors. To fill the vacancies for their respective remaining terms, Mr. Andrew Whalley and Mr. Alf Thorkildsen, were appointed by the remaining directors elected by our common unitholders. In addition, Mr. Doug Arnell (the ex-CEO of Golar Management Limited), was appointed to our board by our general partner. | |
In February 2015, we paid a cash distribution of $0.5625 per unit in respect of the three months ended December 31, 2014. | |
In February 2015, we exercised the option to require Golar to charter Golar Grand with us until October 2017 as BG Group plc did not renew or extend the existing charter. See note 25 - Golar Grand Option. | |
In April 2015, we obtained a signed term sheet from certain lenders in an amount equal to the lesser of $180 million or 60% of the combined fair market values of the Golar Maria and the Golar Freeze (of which $120 million is a binding commitment), to refinance the Golar Maria credit facility (which expires in December 2015) and the commercial loan tranche of the Golar Freeze credit facility (which expires in June 2015). The entry into the new credit agreement to refinance these facilities is subject to the negotiation and execution of a definitive credit agreement and the satisfaction of conditions ordinarily contained in these types of credit agreements. There is no assurance that such proposed new credit agreement will be executed or that it will be effective prior to the maturity of our debt that matures in 2015. We expect that the proposed new credit facility will be split into two tranches, a $150 million term loan facility and a $30 million revolving credit facility. We expect that the term loan facility in the new credit facility will be payable in quarterly installments of $3 million with a balloon payment due at maturity, which is expected to be in June 2018. | |
On April 27, 2015, we declared a cash distribution of $0.5775 per unit in respect of the three months ended March 31, 2015, payable on May 14, 2015, to unitholders of record as of May 7, 2015. | |
In April 2015, our $20 million revolving credit facility with Golar was extended until June 2015. |
ACQUISITION_AFTER_BALANCE_SHEE
ACQUISITION AFTER BALANCE SHEET DATE (Notes) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Acquisition after Balance Sheet Date [Abstract] | ||||||
Acquisition after balance sheet date [Text Block] | ACQUISITION AFTER BALANCE SHEET DATE | |||||
In January 2015, we acquired Golar's 100% interest in the companies that own and operate the Golar Eskimo pursuant to a Purchase, Sale and Contribution Agreement that we entered into with Golar on December 15, 2014. The purchase consideration was $390.0 million for the vessel (including charter) less the assumed bank debt of $162.8 million and other purchase price adjustments. The Golar Eskimo was delivered to Golar in December 2014. We expect the Golar Eskimo to commence her service under a ten-year time charter with the Government of the Hashemite Kingdom of Jordan in the second quarter of 2015. | ||||||
In January 2015, in connection with the purchase of the Golar Eskimo, we entered into a financing loan agreement with Golar for an amount of $220 million. The facility is unsecured and accrues interest at a rate per annum equal to LIBOR plus margin ranging from 2.10% to 2.75%. The loan is non-amortizing with a final balloon payment of $220 million due in December 2016. | ||||||
We entered into an agreement with Golar pursuant to which Golar will pay to us an aggregate amount of $22.0 million in six equal monthly installments starting in January 2015 and ending in June 2015 for the right to use the FSRU. In return, we will remit to Golar any hire payments actually received with respect to the vessel during this period and, at Golar's request, charter the vessel to a third party prior to the earlier of the commencement of hire payments from Jordan under the Golar Eskimo Time Charter and June 30, 2015. | ||||||
We accounted for the acquisition of the Golar Eskimo as a business combination. The purchase price of the acquisition has been allocated to the identifiable assets acquired. We are in the process of finalizing the accounting for the acquisition and amounts shown below are provisional. Additional business combination disclosures will be presented in our next available interim report. | ||||||
The allocation of the purchase price to acquired identifiable assets was based on their estimated fair values at the date of acquisition. The provisional fair values allocated to each class of identifiable assets of the Golar Eskimo and the difference between the purchase price and net assets acquired was calculated as follows: | ||||||
(in thousands of $) | 20-Jan-15 | |||||
Purchase consideration | -1 | 227,200 | ||||
Less: Fair value of net assets (liabilities) acquired: | ||||||
Vessel including allocation to charter (if applicable) | 390,000 | |||||
Long-term debt | (162,800 | ) | ||||
Others | — | -2 | ||||
Subtotal | (227,200 | ) | ||||
Difference between the purchase price and fair value of net assets acquired | — | |||||
_________________________________________ | ||||||
(1) This includes the purchase consideration for the vessel less the fair value of the assumed bank debt but excludes any working capital adjustments which will be available upon finalization of the results of the Golar Eskimo for the first quarter of 2015. | ||||||
(2) This information will be available upon finalization of the results of the Golar Eskimo for the first quarter of 2015. | ||||||
The Golar Eskimo was delivered to Golar on December 22, 2014 and was under construction and not operational before its delivery. As a result, we have evaluated that had the acquisition been consummated as of January 1, 2014, Golar Eskimo's pro forma revenue and net income effect for the year ended December 31, 2014 would be immaterial and thus, have not been presented here. |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Accounting Policies [Abstract] | ||||||||||
Basis of Accounting | Basis of accounting | |||||||||
These consolidated and combined financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. Investments in entities 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 we are deemed to be the primary beneficiary. All intercompany balances and transactions are eliminated. The non-controlling interests of the above mentioned subsidiaries are included in the 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. | ||||||||||
The accompanying consolidated and combined financial statements include the financial statements of the entities listed in Note 4. | ||||||||||
As discussed in note 1, from December 13, 2012, we are no longer considered to be under common control with Golar. Any references to consolidated and combined financial statements and allocations to historical combined carve-out financial statements pertain to periods prior to November 2012, the date of our last common control dropdown (Golar Grand). | ||||||||||
The consolidated and combined financial statements reflect the results of operations, cash flows and net assets of the Combined Entity including the Dropdown Predecessor, which have been carved out of the consolidated financial statements of Golar. The historical combined financial statements include revenues, expenses and cash flows directly attributable to our interests in the four vessels in the Initial Fleet and the Dropdown Predecessor. Accordingly, the historical combined carve-out financial statements for the year ended December 31, 2012 reflect allocations of certain expenses, including that of administrative expenses including share options and pension costs, mark-to-market of interest rate and foreign currency swap derivatives and amortization of deferred tax benefits on intragroup transfers. Allocated costs (income) included in the accompanying consolidated and combined statements of income are as follows: | ||||||||||
(in thousands of $) | 2012 | |||||||||
Administrative expenses | 1,365 | |||||||||
Pension costs | 220 | |||||||||
Net financial income | (149 | ) | ||||||||
1,436 | ||||||||||
For the year ended December 31, 2012, the above table includes allocated costs (income) for the combined entity for the Dropdown Predecessor, for the periods prior to their acquisition from Golar. | ||||||||||
These consolidated and combined financial statements include the results of operations and cashflows of the Combined Entity and the Dropdown Predecessor. In the preparation of these consolidated and combined financial statements, general and administrative expenses (including pension and stock-based compensation), income tax expense, and certain derivatives’ related expenses which were not directly attributable to the respective vessels have been allocated to us on the following basis: | ||||||||||
Amortization of deferred tax benefits on intragroup transfers has been reflected in these financial statements at Golar’s book value, as it was readily separable and identifiable within the books of Golar. | ||||||||||
Vessel operating expenses includes ship management fees for the provision of technical and commercial management of vessels, which have been allocated to us based on intercompany charges invoiced by Golar. | ||||||||||
Vessel operating expenses include an allocation of Golar’s defined benefit pension plan costs. Golar operates two defined benefit pension plans for itself and its subsidiaries: one for the crews and one for administrative personnel. The pension cost is calculated in the subsidiaries on a contribution basis and relates principally to crew whose employment cannot be tied to a specific vessel, as they were a shared resource across all vessels. Accordingly, the pension costs have been allocated based on the number of vessels in Golar’s fleet. | ||||||||||
Administrative expenses (including stock-based compensation, which are described further below) of Golar that cannot be attributed to a specific vessel and for which we were deemed to have received benefit have been allocated based on the number of vessels in Golar’s fleet. | ||||||||||
Administrative expenses include an allocation of Golar’s stock-based compensation costs. In respect of options awarded to certain employees and directors of Golar, whose employment or service cannot be specifically attributed to any specific vessel. Therefore, it is considered that we, as a part of Golar, received benefit from their services, and so should recognize a share of the respective cost. Accordingly, stock-based compensation costs have been allocated based on the number of vessels in Golar’s fleet. | ||||||||||
Other financial items include an allocation of Golar’s mark-to-market adjustments for interest rate swap and foreign currency swap derivatives. In respect of mark-to-market adjustments for interest rate swap derivatives these have been allocated on the basis of our proportion of Golar’s debt including capital leases. For foreign currency derivatives and related adjustments to earnings, these have been allocated on the basis of being separately identifiable and specifically for our benefit. | ||||||||||
Income tax expense has been determined for us on a separate returns basis. | ||||||||||
Management has deemed the related allocation reasonable to present the results of operations, and cash flows of the Combined Entity and Dropdown Predecessor on a stand-alone basis. However, the results of operations and cash flows of the Combined Entity and Dropdown Predecessor, which are presented as part of the results for the year ended December 31, 2012, may differ from those that would have been achieved had we operated autonomously for that year as we would have had additional administrative expenses, including legal, accounting, treasury and regulatory compliance and other costs normally incurred by a listed public entity for the periods prior to the IPO. Accordingly, the financial statements do not purport to be indicative of our future financial position, results of operations or cash flows. | ||||||||||
Business combinations | Business combinations | |||||||||
Reorganization of entities under common control are accounted for similar to the pooling of interests method of accounting. Under this method, the carrying amount of net assets recognized in the balance sheets of each combining entity are carried forward to the balance sheet of the combined entity, and no other assets or liabilities are recognized as a result of the combination. The excess of the proceeds paid, if any, over the historical cost of the combining entity is accounted for as an equity distribution. In addition, re-organization of entities under common control are accounted for as if the transfer occurred from the date that both the combining entity and combined entity were both under the common control of Golar. Therefore, our financial statements prior to the date the interests in the combining entity were actually acquired are retroactively adjusted to include the results of the Combined Entity during the periods it was under common control of Golar. | ||||||||||
As discussed in note 1, following the first AGM of common unitholders on December 13, 2012, Golar ceased to control the board of directors as the majority of board members became electable by the common unitholders. As a result, we are no longer considered to be under common control with Golar. As a consequence, effective from December 13, 2012, we no longer account for vessel acquisitions from Golar as a transfer of equity interest between entities under common control. | ||||||||||
Business combinations are accounted for under the acquisition method. On acquisition, the identifiable assets, liabilities and contingent liabilities 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. The results of subsidiary undertakings are included from the date of acquisition. | ||||||||||
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the acquisition is recorded based on provisional amounts. During the measurement period, we will retrospectively adjust the provisional amounts recognized at the acquisition date reflecting new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. However, the measurement period does not exceed one year from the acquisition date. During the measurement period, we recognize adjustments to the provisional amounts as if the accounting for the business combination had been completed at the acquisition date and we revise comparative information for prior periods presented in financial statements as needed, including making any change in depreciation, amortization, or other income effects recognized in completing the initial accounting. | ||||||||||
Revenue and expense recognition | Revenue and expense recognition | |||||||||
Revenues include minimum lease payments under time charters, fees for repositioning vessels as well as the reimbursement of certain vessel operating and drydocking costs. Revenues generated from time charters, which we classified as operating leases, are recorded over the term of the charter as service is provided. We do not recognize revenues during days that the vessel is off-hire. Incentives for charterers to enter into lease agreements are spread evenly over the lease term. | ||||||||||
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. | ||||||||||
Reimbursement for drydocking costs is recognized evenly over the period to the next drydocking, which is generally between two to five years. | ||||||||||
Under our time charters, the majority of voyage expenses are 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 off-hire, 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. | ||||||||||
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 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. | ||||||||||
We use a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return regarding uncertainties in income tax positions. The first step is recognition: we determine whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The second step is measurement: a tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. | ||||||||||
Penalties and interest related to uncertain tax positions are recognized in "Income taxes" in the Consolidated and Carve-out Statements of Operations. | ||||||||||
Comprehensive Income | Comprehensive Income | |||||||||
As of December 31, 2014, 2013 and 2012, our accumulated other comprehensive loss consisted of the following components: | ||||||||||
(in thousands of $) | 2014 | 2013 | 2012 | |||||||
Unrealized net loss on qualifying cash flow hedging instruments | (2,086 | ) | (2,394 | ) | (8,989 | ) | ||||
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 investments | Restricted cash and short-term investments | |||||||||
Restricted cash and short-term investments consist of bank deposits, which may only be used to settle certain pre-arranged loan or lease payments and which are held as cash collateral required for certain swaps. We consider all short-term investments as held to maturity. These investments are carried at amortized cost. We place our short-term investments primarily in fixed term deposits with high credit quality financial institutions. | ||||||||||
Trade receivables | Trade accounts 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. | ||||||||||
Vessels and equipment | Vessels and equipment | |||||||||
Vessels are stated at cost less accumulated depreciation. The cost of vessels less the estimated residual value is depreciated on a straight-line basis over the assets’ remaining useful economic lives. 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. | ||||||||||
Cost of building the mooring equipment is capitalized and depreciated over the initial lease term of the related charter. | ||||||||||
Refurbishment costs incurred during the period are capitalized as part of vessels 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. | ||||||||||
Useful lives applied in depreciation are as follows: | ||||||||||
Vessels | 40 to 55 years | |||||||||
Drydocking expenditure | two to five years | |||||||||
Mooring equipment | 11 years | |||||||||
Vessel Under Capital Lease | Vessel under capital lease | |||||||||
We lease a vessel under an agreement that has been accounted for as a capital lease. Obligation under capital lease is carried at the present value of future minimum lease payments, and the asset balance is amortized on a straight-line basis over the remaining economic useful life of the vessel. Interest expense is calculated at a constant rate over the term of the lease. | ||||||||||
Depreciation of the vessel under capital lease is included within depreciation and amortization expense in the statement of operations. The vessel under capital lease is depreciated on a straight-line basis over the vessel's remaining useful economic life, based on a useful life of 40 years. Refurbishment costs and drydocking expenditures incurred in respect of vessel under capital lease is accounted for consistently as that of an owned vessel. | ||||||||||
Our capital lease is ‘funded’ via long term cash deposits which closely match the lease liability. Future changes in the lease liability arising from interest rate changes are only partially offset by changes in interest income on the cash deposits, and where differences arise, this is funded by, or released to, available working capital. | ||||||||||
Intangible Assets | Intangible assets | |||||||||
Intangible assets pertain to customer related and contract based assets representing primarily long-term time charter party agreements acquired in connection with the acquisition of certain subsidiaries from Golar. Intangible assets identified are recorded at fair value. Fair value is determined by reference to the discounted amount of expected future cash flows. These intangible assets are amortized over the term of the time charter party agreement and the amortization expense is included in the statement of operations in the depreciation and amortization line item. Impairment testing is performed when events or changes in circumstances indicate that the carrying amount of the intangible asset may not be recoverable. | ||||||||||
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 and includes vessels undergoing retrofitting 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, over the term period from commencement of the conversion work until substantially all the activities necessary to prepare the assets for its intended use are complete. | ||||||||||
Impairment of long-term assets | Impairment of long-lived assets | |||||||||
We continually monitor events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. In assessing the recoverability of our vessels’ carrying amounts, we make assumptions regarding estimated future cash flows and estimates in respect of residual or scrap value. 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. | ||||||||||
The following table presents the market values and carrying values of certain of our vessels that we have determined to have a market value that is less than their carrying value as of December 31, 2014. However, it should be noted that these vessels have existing operating contracts where the remaining term is significant and the estimated future undiscounted cash flows relating to such contracts are sufficiently greater than the carrying value of the vessels. While the market values of these vessels are below their carrying values, no vessel impairment has been recognized on any of these vessels as the estimated future undiscounted cash flows relating to such vessels are greater than their carrying values. | ||||||||||
(in thousands of $) | ||||||||||
Vessel | 2014 Market value(1) | 2014 Carrying value | ||||||||
Nusantara Regas Satu | 169,000 | 220,000 | ||||||||
Golar Mazo | 125,000 | 154,000 | ||||||||
Golar Winter | 196,000 | 248,000 | ||||||||
Golar Maria | 146,000 | 202,000 | ||||||||
(1) Market values are determined using reference to market comparable values as provided by independent valuators as at December 31, 2014. 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. | ||||||||||
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. Amortization of deferred loan costs is included in "Other financial items, net" in the statement of operations. If a loan is repaid early, any unamortized portion of the related deferred charges is charged against income in the period in which the loan is repaid. | ||||||||||
Provisions | Provisions | |||||||||
We, in the ordinary course of business, 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 was present at the date of the financial statements and the likelihood of loss was probable and the amount can be reasonably estimated. If we have determined 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. See Note 26, "Other Commitments and Contingencies" for further discussion. | ||||||||||
Derivatives | Derivatives | |||||||||
We use derivatives to reduce market risks associated with our operations. We use interest rate swaps for the management of interest | ||||||||||
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. | ||||||||||
All derivative instruments are initially recorded at cost as either assets or liabilities in the accompanying balance sheets 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 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 balance sheet, except if the current portion is a liability, in which case the current portion is included in "Other current liabilities." 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. We have adopted hedge accounting for certain of our interest rate swap arrangements designated as cash flow hedges. For derivative instruments that are not designated or do not qualify as hedges, the changes in fair value of the derivative financial instrument are recognized in earnings and recorded each period in current earnings in "Other financial items, net". | ||||||||||
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 it is determined 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. Cash flows from economic hedges are classified in the same category as the items subject to the economic hedging relationship. | ||||||||||
Foreign currencies | Foreign currencies | |||||||||
Our and our subsidiaries’ 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 incurred in U.S. dollars. Our reporting currency is U.S. dollars. | ||||||||||
Transactions in foreign currencies during the year are translated into U.S. dollars at the rates of exchange in effect at the date of the transaction. Foreign currency monetary assets and liabilities are translated using rates of exchange at the balance sheet date. Foreign currency non-monetary assets and liabilities are translated using historical rates of exchange. Foreign currency transaction and translation gains or losses are included in the statements of operations. | ||||||||||
Fair Value Measurement | Fair value measurements | |||||||||
We account for fair value measurements 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. | ||||||||||
Use of estimates | Use of estimates | |||||||||
The preparation of financial statements in accordance with U.S. 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. |
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Details of Impairment of Long-Lived Assets Held and Used by Asset [Table Text Block] | While the market values of these vessels are below their carrying values, no vessel impairment has been recognized on any of these vessels as the estimated future undiscounted cash flows relating to such vessels are greater than their carrying values. | |||||||||
(in thousands of $) | ||||||||||
Vessel | 2014 Market value(1) | 2014 Carrying value | ||||||||
Nusantara Regas Satu | 169,000 | 220,000 | ||||||||
Golar Mazo | 125,000 | 154,000 | ||||||||
Golar Winter | 196,000 | 248,000 | ||||||||
Golar Maria | 146,000 | 202,000 | ||||||||
Allocated Costs (Income) Included in the Consolidated and Combined Statements of Income [Table Text Block] | Allocated costs (income) included in the accompanying consolidated and combined statements of income are as follows: | |||||||||
(in thousands of $) | 2012 | |||||||||
Administrative expenses | 1,365 | |||||||||
Pension costs | 220 | |||||||||
Net financial income | (149 | ) | ||||||||
1,436 | ||||||||||
Amounts recognized in accumulated other comprehensive income | As of December 31, 2014, 2013 and 2012, our accumulated other comprehensive loss consisted of the following components: | |||||||||
(in thousands of $) | 2014 | 2013 | 2012 | |||||||
Unrealized net loss on qualifying cash flow hedging instruments | (2,086 | ) | (2,394 | ) | (8,989 | ) | ||||
Useful Lives of Vessels and Equipment [Table Text Block] | Useful lives applied in depreciation are as follows: | |||||||||
Vessels | 40 to 55 years | |||||||||
Drydocking expenditure | two to five years | |||||||||
Mooring equipment | 11 years |
SUBSIDIARIES_Tables
SUBSIDIARIES (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
SUBSIDIARIES [Abstract] | |||||||
Schedule of Significant Subsidiaries [Table Text Block] | The following table lists our significant subsidiaries and their purpose as of December 31, 2014. Unless otherwise indicated, we own 100% of each subsidiary. | ||||||
Name | Jurisdiction of | Purpose | |||||
Incorporation | |||||||
Golar Partners Operating LLC | Marshall Islands | Holding Company | |||||
Golar LNG Holding Corporation | Marshall Islands | Holding Company | |||||
Golar Maritime (Asia) Inc. | Republic of Liberia | Holding Company | |||||
Oxbow Holdings Inc. | British Virgin Islands | Holding Company | |||||
Faraway Maritime Shipping Company (60% ownership) | Republic of Liberia | Owns and operates Golar Mazo | |||||
Golar LNG 2215 Corporation | Marshall Islands | Leases Methane Princess | |||||
Golar Spirit Corporation | Marshall Islands | Owns Golar Spirit | |||||
Golar Freeze Holding Corporation | Marshall Islands | Owns Golar Freeze | |||||
Golar 2215 UK Ltd | United Kingdom | Operates Methane Princess | |||||
Golar Spirit UK Ltd | United Kingdom | Operates Golar Spirit | |||||
Golar Winter UK Ltd | United Kingdom | Operates Golar Winter | |||||
Golar Freeze UK Ltd | United Kingdom | Operates Golar Freeze | |||||
Golar Servicos de Operacao de Embaracaoes Limited | Brazil | Management Company | |||||
Golar Khannur Corporation | Marshall Islands | Holding Company | |||||
Golar LNG (Singapore) Pte.Ltd. | Singapore | Holding Company | |||||
PT Golar Indonesia* | Indonesia | Owns and operates NR Satu | |||||
Golar 2226 UK Ltd | United Kingdom | Operates Golar Grand | |||||
Golar LNG 2234 Corporation | Republic of Liberia | Owns and operates Golar Maria | |||||
Golar Winter Corporation | Marshall Islands | Owns Golar Winter | |||||
Golar Grand Corporation | Marshall Islands | Owns Golar Grand | |||||
Golar Hull M2031 Corporation | Marshall Islands | Owns and operates Golar Igloo | |||||
__________________________________________ | |||||||
* We hold all of the voting stock and control all of the economic interests in PT Golar Indonesia ("PTGI") pursuant to a Shareholder's Agreement with the other shareholder of PTGI, PT Pesona Sentra Utama ("PT Pesona"). PT Pesona holds the remaining 51% interest in the issued share capital of PTGI. | |||||||
Balance Sheet of Variable Interest Entity [Table Text Block] | The following table summarizes the balance sheets of PTGI as of December 31, 2014 and 2013: | ||||||
(in thousands of $) | 2014 | 2013 | |||||
ASSETS | |||||||
Cash | 17,181 | 8,225 | |||||
Restricted cash | 10,152 | 9,980 | |||||
Vessels and equipment, net* | 333,152 | 354,255 | |||||
Other assets | 13,545 | 9,056 | |||||
Total assets | 374,030 | 381,516 | |||||
LIABILITIES AND EQUITY | |||||||
Accrued liabilities | 6,307 | 25,020 | |||||
Current portion of long-term debt | 14,300 | 14,300 | |||||
Amounts due to related parties | 188,323 | 189,835 | |||||
Long-term debt | 112,100 | 126,400 | |||||
Other liabilities | 8,693 | 6,283 | |||||
Total liabilities | 329,723 | 361,838 | |||||
Total equity | 44,307 | 19,678 | |||||
Total liabilities and equity | 374,030 | 381,516 | |||||
*PTGI recorded the NR Satu at acquisition price when it purchased the vessel from a Golar related party entity. However, as the acquisition of the subsidiaries which own and operate the NR Satu was deemed to be a reorganization of entities under common control, we recorded the NR Satu at historical book values. |
SEGMENTAL_INFORMATION_Tables
SEGMENTAL INFORMATION (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||
Revenue by major customer | In the years ended December 31, 2014, 2013 and 2012, revenues from each of the following customers accounted for over 10% of our consolidated and combined revenues: | ||||||||||||||||||
(in thousands of $) | 2014 | 2013 | 2012 | ||||||||||||||||
Petrobras | 99,976 | 25 | % | 85,899 | 26 | % | 92,952 | 32 | % | ||||||||||
DUSUP | 48,392 | 12 | % | 48,029 | 15 | % | 48,328 | 17 | % | ||||||||||
Pertamina | 40,004 | 10 | % | 37,302 | 11 | % | 37,300 | 13 | % | ||||||||||
BG Group plc | 68,884 | 17 | % | 66,341 | 20 | % | 66,148 | 23 | % | ||||||||||
PTNR | 66,345 | 17 | % | 65,478 | 20 | % | 41,902 | 15 | % | ||||||||||
KNPC | 43,220 | 11 | % | — | — | % | — | — | % | ||||||||||
Revenues and fixed assets with respect to geographical area | Accordingly, it is not possible to allocate the assets of these operations to specific countries: | ||||||||||||||||||
Revenues | 2014 | 2013 | 2012 | ||||||||||||||||
Brazil | 99,976 | 85,899 | 92,952 | ||||||||||||||||
United Arab Emirates | 48,392 | 48,029 | 48,328 | ||||||||||||||||
Indonesia | 66,345 | 65,478 | 41,902 | ||||||||||||||||
Kuwait | 43,220 | — | — | ||||||||||||||||
Fixed assets | 2014 | 2013 | |||||||||||||||||
Brazil | 392,132 | 413,967 | |||||||||||||||||
United Arab Emirates | 133,082 | 142,757 | |||||||||||||||||
Indonesia | 219,610 | 233,734 | |||||||||||||||||
Kuwait | 281,946 | — | |||||||||||||||||
OTHER_FINANCIAL_ITEMS_NET_Tabl
OTHER FINANCIAL ITEMS, NET (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
OTHER FINANCIAL ITEMS, NET [Abstract] | ||||||||||
Components of other financial items, net | ||||||||||
(in thousands of $) | 2014 | 2013 | 2012 | |||||||
Amortization of deferred financing costs | (3,554 | ) | (5,828 | ) | (1,123 | ) | ||||
Financing arrangement fees and other costs | (147 | ) | (2,101 | ) | (411 | ) | ||||
Interest expense on un-designated interest rate swaps | (12,163 | ) | (8,188 | ) | (6,609 | ) | ||||
Mark-to-market adjustment for interest rate swap derivatives (see note 24) | (5,953 | ) | 12,845 | 1,328 | ||||||
Mark-to-market adjustment for currency swap derivatives (see note 24) | — | (4,839 | ) | 7,204 | ||||||
Foreign exchange gain (loss) on capital lease obligations and related restricted cash | 677 | 7,084 | (5,602 | ) | ||||||
Foreign exchange loss on operations | (978 | ) | (634 | ) | (176 | ) | ||||
Total | (22,118 | ) | (1,661 | ) | (5,389 | ) | ||||
TAXATION_Tables
TAXATION (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Tax Disclosure [Abstract] | ||||||||||
Components of income tax expense (benefit) | ||||||||||
(in thousands of $) | 2014 | 2013 | 2012 | |||||||
Current tax expense (credit): | ||||||||||
U.K. | 852 | (373 | ) | 1,888 | ||||||
Indonesia | 544 | 5,047 | 7,395 | |||||||
Brazil | 1,136 | 779 | 1,055 | |||||||
Kuwait | 1,945 | — | — | |||||||
Total current tax expense | 4,477 | 5,453 | 10,338 | |||||||
Deferred tax income: | ||||||||||
Indonesia | (9,524 | ) | — | — | ||||||
Amortization of deferred tax benefit on intra-group transfer (Note 2) | — | — | (912 | ) | ||||||
Total income tax (credit) expense | (5,047 | ) | 5,453 | 9,426 | ||||||
The income taxes for the years ended December 31, 2014, 2013 and 2012 differed from the amount computed by applying the Marshall Islands statutory income tax rate of 0% as follows: | ||||||||||
Year ended December 31, | ||||||||||
(In thousands of $) | 2014 | 2013 | 2012 | |||||||
Income taxes at statutory rate | — | — | — | |||||||
Effect of carved-out deferred tax benefit on intra-group transfer | — | — | (912 | ) | ||||||
Effect of change on uncertain tax positions relating to prior year | (5,042 | ) | — | — | ||||||
Effect of recognition of previously unrecognized deferred tax asset | (9,524 | ) | — | — | ||||||
Effect of taxable income in various countries | 9,519 | 5,453 | 10,338 | |||||||
Total tax (credit) expense | (5,047 | ) | 5,453 | 9,426 | ||||||
Schedule of Earliest Open Tax Periods [Table Text Block] | The following table summarizes the earliest tax year that remain subject to examination by the major taxable jurisdictions in which we operate: | |||||||||
Jurisdiction | Earliest | |||||||||
U.K. | 2011 | |||||||||
Brazil | 2009 | |||||||||
Indonesia | 2013 | |||||||||
Kuwait | 2014 | |||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred income taxes reflect the impact of temporary differences between the amount of assets and liabilities recognized for financial reporting purposes and such amounts recognized for tax purposes. The net deferred tax assets (liabilities) consist of the following: | |||||||||
(in thousands of $) | 2014 | 2013 | ||||||||
Net operating loss carried forward | 9,524 | 6,070 | ||||||||
Gross deferred tax asset | 9,524 | 6,070 | ||||||||
Valuation allowance | — | (6,070 | ) | |||||||
Deferred tax assets, net | 9,524 | — | ||||||||
Net deferred taxes are classified as follows: | ||||||||||
(in thousands of $) | 2014 | 2013 | ||||||||
Short-term deferred tax asset | 3,085 | — | ||||||||
Long-term deferred tax asset | 6,439 | — | ||||||||
Net deferred tax | 9,524 | — | ||||||||
(in thousands of $) | 2014 | 2013 | ||||||||
Net operating loss carried forward | 9,524 | 6,070 | ||||||||
Gross deferred tax asset | 9,524 | 6,070 | ||||||||
Valuation allowance | — | (6,070 | ) | |||||||
Deferred tax assets, net | 9,524 | — | ||||||||
Net deferred taxes are classified as follows: | ||||||||||
(in thousands of $) | 2014 | 2013 | ||||||||
Short-term deferred tax asset | 3,085 | — | ||||||||
Long-term deferred tax asset | 6,439 | — | ||||||||
Net deferred tax | 9,524 | — | ||||||||
As of December 31, 2014, deferred tax assets related to net operating loss ("NOL") carryforwards was $38.1 million, which can be used to offset future taxable income. NOL carryforwards were generated from our Indonesian subsidiary, which includes $1.6 million that will not expire until 2017 and $7.9 million that will expire in 2018, if not utilized. | ||||||||||
A reconciliation of deferred tax assets, net, is shown below: | ||||||||||
(in thousands of $) | 2014 | 2013 | 2012 | |||||||
Balance at January 1 | — | — | — | |||||||
Additions for tax positions of prior years | 13,920 | 6,070 | — | |||||||
Release of deferred tax asset | (4,396 | ) | — | — | ||||||
Movement in valuation allowance | — | (6,070 | ) | — | ||||||
Balance at December 31 | 9,524 | — | — | |||||||
Summary of Operating Loss Carryforwards [Table Text Block] | Expiry of net operating losses carried forward relating to the NR Satu is as follows: | |||||||||
(in thousands of $) | Amount | Date of expiry | ||||||||
Net operating losses in 2012 | 6,335 | 2017 | ||||||||
Net operating losses in 2013 | 31,761 | 2018 | ||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The income taxes for the years ended December 31, 2014, 2013 and 2012 differed from the amount computed by applying the Marshall Islands statutory income tax rate of 0% as follows: | |||||||||
Year ended December 31, | ||||||||||
(In thousands of $) | 2014 | 2013 | 2012 | |||||||
Income taxes at statutory rate | — | — | — | |||||||
Effect of carved-out deferred tax benefit on intra-group transfer | — | — | (912 | ) | ||||||
Effect of change on uncertain tax positions relating to prior year | (5,042 | ) | — | — | ||||||
Effect of recognition of previously unrecognized deferred tax asset | (9,524 | ) | — | — | ||||||
Effect of taxable income in various countries | 9,519 | 5,453 | 10,338 | |||||||
Total tax (credit) expense | (5,047 | ) | 5,453 | 9,426 | ||||||
OPERATING_LEASES_Tables
OPERATING LEASES (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases [Abstract] | |||||
Future minimum contractual revenues for operating leases | The minimum contractual future revenues to be received on time charters as of December 31, 2014, were as follows: | ||||
Year ending December 31, | Total | ||||
(in thousands of $) | |||||
2015 | 380,508 | ||||
2016 | 388,234 | ||||
2017 | 383,203 | ||||
2018 | 253,663 | ||||
2019 | 199,393 | ||||
2020 and later | 586,686 | ||||
Total | 2,191,687 | -1 | |||
____________________________________ | |||||
(1) This includes revenues from Golar relating to the Option Agreement entered into in connection with the acquisition of the Golar Grand in November 2012. Prior to February 2015, the Golar Grand operated under a time charter with BG Group which was not extended beyond its initial term and expired in the middle of February 2015. In February 2015, we exercised our option to require Golar to charter in the vessel until October 2017 at approximately 75% of the hire rate paid by BG Group representing an approximate 25% loss of daily revenue to us with respect to the Golar Grand. | |||||
BUSINESS_COMBINATION_Tables
BUSINESS COMBINATION (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Business Acquisition, Contingent Consideration [Line Items] | ||||||
Schedule of Business Acquisitions | The Conflicts Committee retained a financial advisor to assist the evaluation of each transaction. The details of each transaction are as follows: | |||||
Golar Igloo | Golar Maria | |||||
(in thousands of $) | 28-Mar-14 | 7-Feb-13 | ||||
Purchase consideration (1) | 156,001 | 127,910 | ||||
Less: Fair value of net assets (liabilities) acquired: | ||||||
Vessel and equipment | 287,542 | 215,000 | ||||
Intangible asset | 19,099 | — | ||||
Cash | 682 | 7,981 | ||||
Fair value of interest rate swap | 3,636 | (3,096 | ) | |||
Other assets and liabilities | 6,312 | (2,450 | ) | |||
Long-term debt | (161,270 | ) | (89,525 | ) | ||
Subtotal | (156,001 | ) | (127,910 | ) | ||
Difference between the purchase price and fair value of net assets acquired | — | — | ||||
__________________________________________ | ||||||
(1) The purchase consideration comprises the following: | ||||||
(in thousands of $) | Golar Igloo | Golar Maria | ||||
Cash consideration paid to Golar | 148,730 | 125,500 | ||||
Adjustment for the interest rate swap asset (liability) assumed | 3,636 | (3,096 | ) | |||
Purchase price adjustments | 3,635 | 5,506 | ||||
156,001 | 127,910 | |||||
Golar Igloo [Member] | ||||||
Business Acquisition, Contingent Consideration [Line Items] | ||||||
Business Acquisition, Pro Forma Information [Table Text Block] | The table below shows our summarized consolidated pro forma consolidated annual financial information for the year ended December 31, 2014, giving effect to our acquisition of the Golar Igloo as if it had taken place on January 1, 2014. | |||||
Unaudited | ||||||
(in thousands of $, except per unit data) | 2014 | |||||
Revenues | 400,209 | |||||
Net income | 184,751 | |||||
Earnings per unit (basic and diluted): | ||||||
Common unitholders | $2.56 | |||||
Golar Maria [Member] | ||||||
Business Acquisition, Contingent Consideration [Line Items] | ||||||
Business Acquisition, Pro Forma Information [Table Text Block] | The table below shows our comparative summarized consolidated pro forma financial information for the years ended December 31, 2013 and 2012, giving effect to our acquisition of the Golar Maria as if it had taken place on January 1, 2012. | |||||
Unaudited | Unaudited | |||||
(in thousands of $, except per unit data) | 2013 | 2012 | ||||
Revenues | 332,150 | 308,617 | ||||
Net income | 152,388 | 135,472 | ||||
Earnings per unit (basic and diluted): | ||||||
Common unitholders | $2.33 | $2.52 |
OTHER_RECEIVABLES_PREPAID_EXPE1
OTHER RECEIVABLES, PREPAID EXPENSES AND ACCRUED INCOME OTHER RECEIVABLES, PREPAID EXPENSES AND ACCRUED INCOME (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
OTHER RECEIVABLES, PREPAID EXPENSES AND ACCRUED INCOME [Abstract] | |||||||
Schedule of Other Current Assets [Table Text Block] | |||||||
(in thousands of $) | 2014 | 2013 | |||||
Other receivables | 2,174 | 2,937 | |||||
Deferred tax asset (see note 8) | 3,085 | — | |||||
Prepaid expenses | 2,257 | 4,089 | |||||
7,516 | 7,026 | ||||||
VESSELS_AND_EQUIPMENT_NET_Tabl
VESSELS AND EQUIPMENT, NET (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Property, Plant and Equipment [Table Text Block] | |||||||
(in thousands of $) | 2014 | 2013 | |||||
Cost | 1,952,390 | 1,665,039 | |||||
Accumulated depreciation | (451,220 | ) | (383,448 | ) | |||
Net book value | 1,501,170 | 1,281,591 | |||||
VESSELS_UNDER_CAPITAL_LEASES_N1
VESSELS UNDER CAPITAL LEASES, NET (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Schedule of Capital Leased Assets [Table Text Block] | |||||||
(in thousands of $) | 2014 | 2013 | |||||
Cost | 168,577 | 168,492 | |||||
Accumulated depreciation | (46,324 | ) | (40,799 | ) | |||
Net book value | 122,253 | 127,693 | |||||
INTANGIBLE_ASSETS_NET_Tables
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | |||||||
(in thousands of $) | 2014 | 2013 | |||||
Cost | 19,096 | — | |||||
Accumulated amortization | (3,064 | ) | — | ||||
Net book value | 16,032 | — | |||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The estimated future amortization for the intangible assets as of December 31, 2014 is as follows: | ||||||
Year Ending December 31, | |||||||
(in thousands of $) | |||||||
2015 | 3,820 | ||||||
2016 | 3,820 | ||||||
2017 | 3,820 | ||||||
2018 | 3,820 | ||||||
2019 | 752 | ||||||
Total | 16,032 | ||||||
DEFERRED_CHARGES_Tables
DEFERRED CHARGES (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||
Schedule of Deferred Charges [Table Text Block] | The deferred charges are comprised of the following amounts: | ||||||
(in thousands of $) | 2014 | 2013 | |||||
Debt arrangement fees and other deferred financing charges | 23,384 | 20,677 | |||||
Accumulated amortization | (10,028 | ) | (6,407 | ) | |||
13,356 | 14,270 | ||||||
RESTRICTED_CASH_AND_SHORTTERM_1
RESTRICTED CASH AND SHORT-TERM INVESTMENTS (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Components of restricted cash and cash equivalents | Our short-term restricted cash and investment balances in respect of our debt and lease obligations are as follows: | ||||||
(in thousands of $) | 2014 | 2013 | |||||
Total security lease deposits for lease obligations | 5,671 | 5,639 | |||||
Restricted cash relating to the Golar Freeze facility (see note 21) | 10,008 | 8,832 | |||||
Restricted cash relating to the NR Satu facility (see note 21) | 10,152 | 9,980 | |||||
25,831 | 24,451 | ||||||
Schedule of Long-term Restricted Cash | Our restricted cash balances in respect of our debt and capital lease obligations are as follows: | ||||||
(in thousands of $) | 2014 | 2013 | |||||
Methane Princess Lease security deposits | 142,513 | 151,364 | |||||
Restricted cash relating to the cross currency interest rate swap (see note 24) | 9,710 | — | |||||
Total security deposits for lease obligations | 152,223 | 151,364 | |||||
Included in short-term restricted cash and short-term investments | (5,671 | ) | (5,639 | ) | |||
Long-term restricted cash | 146,552 | 145,725 | |||||
OTHER_NONCURRENT_ASSETS_OTHER_
OTHER NON-CURRENT ASSETS OTHER NON-CURRENT ASSETS (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
OTHER NON-CURRENT ASSETS [Abstract] | |||||||
Schedule of Other Assets, Noncurrent [Table Text Block] | |||||||
(in thousands of $) | 2014 | 2013 | |||||
Mark-to-market interest rate swaps valuation (see note 24) | 3,617 | 5,335 | |||||
Methane Princess Lease security deposit movements (see note 25(h)) | — | 4,257 | |||||
Deferred tax asset (see notes 8 and 12) | 6,439 | — | |||||
Other long-term assets | 5,227 | 5,969 | |||||
15,283 | 15,561 | ||||||
ACCRUED_EXPENSES_Tables
ACCRUED EXPENSES (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Payables and Accruals [Abstract] | |||||||
Schedule of Accrued Liabilities [Table Text Block] | |||||||
(in thousands of $) | 2014 | 2013 | |||||
Vessel operating and drydocking expenses | 5,762 | 5,538 | |||||
Administrative expenses | 967 | 757 | |||||
Interest expense | 7,043 | 6,273 | |||||
Provision for tax | 7,928 | 7,520 | |||||
21,700 | 20,088 | ||||||
OTHER_CURRENT_LIABILITIES_Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Other Liabilities Disclosure [Abstract] | |||||||
Other Current Liabilities [Table Text Block] | OTHER CURRENT LIABILITIES | ||||||
(in thousands of $) | 2014 | 2013 | |||||
Deferred revenue | 20,594 | 17,888 | |||||
Mark-to-market interest rate swaps valuation (see note 24) | 15,222 | 15,119 | |||||
Mark-to-market cross currency interest rate swaps valuation (see note 24) | 56,639 | 16,804 | |||||
Mark-to-market foreign exchange rate swaps valuation (see note 24) | 16 | — | |||||
Deferred credits from capital lease transactions (see note 23) | 625 | 625 | |||||
Other creditors | 6,385 | 6,609 | |||||
99,481 | 57,045 | ||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Schedule of Debt [Table Text Block] | |||||||||
(in thousands of $) | 2014 | 2013 | |||||||
Total debt | 1,052,532 | 889,471 | |||||||
Less: Short-term debt due to related parties | (20,000 | ) | — | ||||||
Less: Current portion of long-term debt due to third parties | (124,221 | ) | (156,363 | ) | |||||
Long-term debt | 908,311 | 733,108 | |||||||
Schedule of Maturities of Long-term Debt [Table Text Block] | Our outstanding debt as of December 31, 2014 is repayable as follows: | ||||||||
Year Ending December 31, | |||||||||
(in thousands of $) | |||||||||
2015 | 144,221 | ||||||||
2016 | 87,989 | ||||||||
2017 | 262,439 | ||||||||
2018 | 393,906 | ||||||||
2019 | 44,122 | ||||||||
2020 and thereafter | 119,855 | ||||||||
Total | 1,052,532 | ||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | At December 31, 2014, the maturity dates for our debt were as follows: | ||||||||
(in thousands of $) | 2014 | 2013 | Maturity date | ||||||
Golar LNG revolving credit facility (see note 25 (i)) | 20,000 | — | 2015 | ||||||
Golar Maria facility | 79,525 | 84,525 | 2018* | ||||||
High-yield bonds | 174,450 | 214,100 | 2017 | ||||||
Golar LNG Partners credit facility | 203,500 | 160,500 | 2018 | ||||||
Golar Partners Operating credit facility | 235,000 | 215,000 | 2018 | ||||||
Golar Freeze facility | 59,107 | 74,646 | 2018** | ||||||
NR Satu facility | 126,400 | 140,700 | 2020 | ||||||
Golar Igloo debt | 154,550 | — | 2019/2026*** | ||||||
1,052,532 | 889,471 | ||||||||
__________________________________________ | |||||||||
* A final balloon payment is due on the facility in December 2015. In April 2015, we obtained a signed term sheet from certain lenders to refinance the Golar Maria credit facility (see "Golar Maria Facility" below). | |||||||||
**The Commercial Loan facility tranche matures in June 2015. In April 2015, we obtained a signed term sheet from certain lenders to refinance the Commercial Loan facility tranche (see "Golar Freeze Facility" below) . The Exportfinans Loan facility tranche matures in June 2018. | |||||||||
***The Kexim and K-sure tranches have a term of twelve years from the date of draw down and the Commercial tranche has a term of five years from the date of draw down. | |||||||||
Golar Igloo Debt [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Schedule of tranches [Table Text Block] | The debt is divided into three tranches, with the following general terms, in line with the original facility: | ||||||||
Tranche | Proportion of debt | Term of loan | Repayment terms | Margin on LIBOR | |||||
K-Sure | 40% | 12 years | Semi-annual installments | 2.10% | |||||
KEXIM | 40% | 12 years | Semi-annual installments | 2.75% | |||||
Commercial | 20% | 5 years | Semi-annual installments, unpaid balance to be refinanced after 5 years | 2.75% | |||||
T |
CAPITAL_LEASES_CAPITAL_LEASES_
CAPITAL LEASES CAPITAL LEASES (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Leases [Abstract] | |||||||
Schedule of Long-term Obligations Under Capital Leases [Table Text Block] | |||||||
(in thousands of $) | 2014 | 2013 | |||||
Total obligations under capital leases | 150,997 | 159,008 | |||||
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | As of December 31, 2014, we are committed to make quarterly minimum capital lease payments (including interest), as follows: | ||||||
Year ending December 31, | Methane | ||||||
(in thousands of $) | Princess Lease | ||||||
2015 | 7,579 | ||||||
2016 | 7,866 | ||||||
2017 | 8,163 | ||||||
2018 | 8,489 | ||||||
2019 | 8,814 | ||||||
2020 and thereafter | 163,895 | ||||||
Total minimum lease payments | 204,806 | ||||||
Less: Imputed interest | (53,809 | ) | |||||
Present value of minimum lease payments | 150,997 | ||||||
OTHER_LONGTERM_LIABILITIES_OTH1
OTHER LONG-TERM LIABILITIES OTHER LONG-TERM LIABILITIES (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Other Long-term Liabilities Disclosure [Abstract] | |||||||
Other Noncurrent Liabilities [Table Text Block] | |||||||
(in thousands of $) | 2014 | 2013 | |||||
Deferred credits from capital lease transactions | 17,281 | 17,904 | |||||
Deferred Credits From Capital Lease Transactions [Table Text Block] | |||||||
(in thousands of $) | 2014 | 2013 | |||||
Deferred credits from capital lease transactions | 24,691 | 24,691 | |||||
Less: Accumulated amortization | (6,785 | ) | (6,162 | ) | |||
17,906 | 18,529 | ||||||
Short-term (see note 20) | 625 | 625 | |||||
Long-term | 17,281 | 17,904 | |||||
17,906 | 18,529 | ||||||
FINANCIAL_INSTRUMENTS_Tables
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||
Interest rate derivatives | We have entered into the following interest rate swap transactions involving the payment of fixed rates in exchange for LIBOR: | ||||||||||||||||||||
Instrument | Year End | Notional Amount | Maturity | Fixed Interest | |||||||||||||||||
(in thousands of $) | Dates | Rate | |||||||||||||||||||
Interest rate swaps: | |||||||||||||||||||||
Receiving floating, pay fixed | 31-Dec-14 | 919,130 | 2015 | to | 2020 | 0.92 | % | to | 2.96% | ||||||||||||
Receiving floating, pay fixed | 31-Dec-13 | 997,607 | 2014 | to | 2020 | 0.92 | % | to | 5.04% | ||||||||||||
Effect of cash flow hedging relationships on statements of operations | The effect of cash flow hedging relationships relating to interest rate swap agreements on the statements of operations is as follows: | ||||||||||||||||||||
Derivatives designated as | Effective | Ineffective Portion | |||||||||||||||||||
hedging instruments | portion gain/(loss) | ||||||||||||||||||||
reclassified from | |||||||||||||||||||||
Accumulated Other | |||||||||||||||||||||
Comprehensive Loss | |||||||||||||||||||||
(in thousands of $) | Location | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||
Interest rate swaps | Other financial items, net | (1,339 | ) | 775 | — | (1,210 | ) | 1,015 | (409 | ) | |||||||||||
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 excluding the cross currency interest rate swap on the other comprehensive income is as follows: | ||||||||||||||||||||
Derivatives designated as hedging instruments | Amount of gain/ | ||||||||||||||||||||
(loss) recognized in | |||||||||||||||||||||
OCI on derivative | |||||||||||||||||||||
(effective portion) | |||||||||||||||||||||
(in thousands of $) | 2014 | 2013 | 2012 | ||||||||||||||||||
Interest rate swaps | 492 | 5,515 | 1,113 | ||||||||||||||||||
Schedule of Foreign Exchange Contracts, Statement of Financial Position [Table Text Block] | As of December 31, 2014, we have the following foreign currency forward contract:. | ||||||||||||||||||||
Notional Amount | Average forward | ||||||||||||||||||||
Instrument | Receiving in | Pay in USD | Maturity | rate USD foreign | |||||||||||||||||
(in thousands) | foreign currency | Date | currency | ||||||||||||||||||
Currency rate swaps: | |||||||||||||||||||||
Singapore dollars | 563 | 441 | 2015 | 1.276 | |||||||||||||||||
Schedule Of Cash Flow Hedging Relationships Relating To Cross Currency Interest Rate Swap Contracts And Changes In Equity [Table Text Block] | Accordingly, the net loss recognized in accumulated other comprehensive income is as follows: | ||||||||||||||||||||
Derivatives designated as hedging instruments | Amount of gain/ | ||||||||||||||||||||
(loss) recognized in | |||||||||||||||||||||
OCI on derivative | |||||||||||||||||||||
(effective portion) | |||||||||||||||||||||
(in thousands of $) | 2014 | 2013 | 2012 | ||||||||||||||||||
Cross currency interest rate swap | (184 | ) | 1,080 | (5,063 | ) | ||||||||||||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | The carrying value and estimated fair value of our financial instruments at December 31, 2014 and 2013 are as follows: | ||||||||||||||||||||
(in thousands of $) | Fair Value | 2014 Carrying Value | 2014 Fair Value | 2013 Carrying Value | 2013 Fair Value | ||||||||||||||||
Hierarchy(1) | |||||||||||||||||||||
Non-Derivatives: | |||||||||||||||||||||
Cash and cash equivalents | Level 1 | 98,998 | 98,998 | 103,100 | 103,100 | ||||||||||||||||
Restricted cash and short-term investments | Level 1 | 172,383 | 172,383 | 170,176 | 170,176 | ||||||||||||||||
Short-term debt due to related party | Level 3 | 20,000 | 20,000 | — | — | ||||||||||||||||
High-yield bonds(1) | Level 1 | 174,450 | 173,578 | 214,100 | 221,166 | ||||||||||||||||
Long-term debt—floating(2) | Level 2 | 858,082 | 858,082 | 675,371 | 675,371 | ||||||||||||||||
Obligations under capital leases(2) | Level 2 | 150,997 | 150,997 | 159,008 | 159,008 | ||||||||||||||||
Derivatives: | |||||||||||||||||||||
Interest rate swaps asset(3)(4) | Level 2 | 3,617 | 3,617 | 5,335 | 5,335 | ||||||||||||||||
Interest rate swaps liability(3)(4) | Level 2 | 15,222 | 15,222 | 15,119 | 15,119 | ||||||||||||||||
Cross currency interest rate swap liability(3)(5) | Level 2 | 56,639 | 56,639 | 16,804 | 16,804 | ||||||||||||||||
Foreign currency swaps liability(3) | Level 2 | 16 | 16 | — | — | ||||||||||||||||
__________________________________________ | |||||||||||||||||||||
-1 | This pertains to high-yield bonds with a carrying value of $174.5 million as of December 31, 2014 which is included under long-term debt on the balance sheet. The fair value of the high-yield bonds as of December 31, 2014 was $173.6 million (2013: $221.2 million), which represents 99.5% (2013: 103.3%) of its face value. | ||||||||||||||||||||
-2 | Our debt and capital lease obligations are recorded at amortized cost in the consolidated balance sheets. | ||||||||||||||||||||
-3 | Derivative liabilities are captured within other current liabilities and derivative assets are captured within long-term assets on the balance sheet. | ||||||||||||||||||||
-4 | The fair value/carrying value of interest rate swap agreements (excluding the cross currency interest rate swap described in footnote 5) that qualify and are designated as cash flow hedges as of December 31, 2014 and 2013 was $2.0 million (with a notional amount of $211.6 million) and $3.5 million (with a notional amount of $287.1 million), respectively. The expected maturity of these interest rate agreements is from May 2015 to March 2018. | ||||||||||||||||||||
-5 | We issued NOK denominated senior unsecured bonds. In order to hedge our exposure, we entered into a non-amortizing cross currency interest rate swap agreement. The swap hedges both the full redemption amount of the NOK obligation and the related quarterly interest payments. We designated the cross currency interest rate swap as a cash flow hedge. | ||||||||||||||||||||
Offsetting Liabilities [Table Text Block] | However, if we were to offset and record the asset and liability balance of derivatives on a net basis, the amounts presented in our consolidated balance sheets as of December 31, 2014 and 2013 would be adjusted as detailed in the following table: | ||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||
(in thousands of $) | 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 | |||||||||||||||
Total asset derivatives | 3,617 | (1,831 | ) | 1,786 | 5,335 | — | 5,335 | ||||||||||||||
Total liability derivatives | 15,222 | (1,831 | ) | 13,391 | 15,119 | — | 15,119 | ||||||||||||||
Cross Currency Interest Rate Contract [Member] | |||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | As of December 31, 2014 and 2013, the details of our cross currency interest rate swap are as follows: | ||||||||||||||||||||
Interest rate element | Currency element | ||||||||||||||||||||
Notional Amount | Average forward | ||||||||||||||||||||
rate USD foreign | |||||||||||||||||||||
Instrument | Notional Amount | Fixed Interest Rate | Receiving in | Pay in USD | Maturity | currency | |||||||||||||||
(in thousands) | Norwegian Kroner | Date | |||||||||||||||||||
Cross currency interest rate swap | 227,193 | 6.485 | % | 1,300,000 | 227,193 | 2017 | 5.722 | ||||||||||||||
RELATED_PARTY_TRANSACTIONS_REL
RELATED PARTY TRANSACTIONS RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Related Party Transactions [Abstract] | ||||||||||
Schedule of Related Party Transactions [Table Text Block] | Net expenses from related parties: | |||||||||
(in thousands of $) | 2014 | 2013 | 2012 | |||||||
Transactions with Golar and affiliates: | ||||||||||
Management and administrative services fees (a) | 2,877 | 2,569 | 2,876 | |||||||
Ship management fees (b) | 7,746 | 6,701 | 4,222 | |||||||
Interest expense on high-yield bonds (c) | — | 1,972 | 575 | |||||||
Interest expense on Golar LNG vendor financing loan - Golar Freeze (d) | — | — | 11,921 | |||||||
Interest expense on Golar LNG vendor financing loan - NR Satu (e) | — | — | 4,737 | |||||||
Interest expense on Golar Energy loan (f) | — | — | 829 | |||||||
Total | 10,623 | 11,242 | 25,160 | |||||||
Receivables (payables) from related parties: | ||||||||||
As of December 31, 2014 and 2013, balances with related parties consisted of the following: | ||||||||||
(in thousands of $) | 2014 | 2013 | ||||||||
Trading balances due to Golar and affiliates (g) | (13,337 | ) | (5,989 | ) | ||||||
Methane Princess Lease security deposit movements (h) | 3,486 | 4,257 | ||||||||
Short-term loan due to Golar (i) | (20,000 | ) | — | |||||||
(29,851 | ) | (1,732 | ) |
OTHER_COMMITMENTS_AND_CONTINGE1
OTHER COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||
Assets pledged as collateral | |||||||
(in thousands of $) | 2014 | 2013 | |||||
Book value of vessels and equipment secured against long-term loans and capital leases | 1,623,423 | 1,409,284 | |||||
EQUITY_ISSUANCES_Tables
EQUITY ISSUANCES (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Equity Issuances [Abstract] | |||||||||||||||||||
Schedule of Equity Offerings [Table Text Block] | The following table summarizes the issuances of common and general partner units since our IPO in April 2011: | ||||||||||||||||||
Date | Number of Common Units Issued1 | Offering Price | Gross Proceeds (in thousands of $)2 | Net Proceeds (in thousands of $) | Golar's Ownership after the Offering3 | Use of Proceeds | |||||||||||||
Jul-12 | 7,294,305 | $ | 30.95 | 230,366 | 221,746 | 57.5 | % | Acquisition of the NR Satu | |||||||||||
Nov-12 | 5,824,590 | $ | 30.5 | 181,275 | 180,105 | 54.1 | % | Acquisition of the Golar Grand | |||||||||||
Jan-13 | 4,316,947 | $ | 29.74 | 131,006 | 130,244 | 50.9 | % | Acquisition of the Golar Maria | |||||||||||
Dec-13 | 5,100,000 | $ | 29.1 | 151,439 | 150,342 | 41.4 | % | Acquisition of the Golar Igloo | |||||||||||
_________________________________________ | |||||||||||||||||||
1 Includes common units issued by us to Golar in a private placement made concurrent to the public offering of 969,305 common units, 1,524,590 common units and 416,947 common units in July 2012, November 2012 and January 2013, respectively. There was no private placement of common units to Golar in the December 2013 offering, however, 3,400,000 of our common units held by Golar were sold to the public in a secondary offering. | |||||||||||||||||||
2 Includes General Partner's 2% proportionate capital contribution. | |||||||||||||||||||
3 Includes Golar's 2% general partner interest in the Partnership. | |||||||||||||||||||
Schedule of movement in the number of common units, subordinated units and general partner units [Table Text Block] | The following table shows the movement in the number of common units, subordinated units and general partner units during the years ended December 31, 2014 and 2013: | ||||||||||||||||||
(in units) | Common Units | Subordinated Units | GP Units | ||||||||||||||||
31-Dec-12 | 36,246,149 | 15,949,831 | 1,065,225 | ||||||||||||||||
January 2013 offerings | 4,316,947 | — | 88,101 | ||||||||||||||||
December 2013 offerings | 5,100,000 | — | 104,082 | ||||||||||||||||
December 31, 2013 and 2014 | 45,663,096 | 15,949,831 | 1,257,408 | ||||||||||||||||
EARNINGS_PER_UNIT_AND_CASH_DIS1
EARNINGS PER UNIT AND CASH DISTRIBUTIONS (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Earnings Per Unit and Cash Distributions [Abstract] | ||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The calculations of basic and diluted earnings per unit are presented below: | |||||||||
(in thousands of $ except unit and per unit data) | 2014 | 2013 | 2012 | |||||||
Net income attributable to general partner and limited partner interests | 174,154 | 141,296 | 116,418 | |||||||
Less: Dropdown Predecessor net income | — | — | (28,015 | ) | ||||||
Less: distributions paid (1) | (143,450 | ) | (127,260 | ) | (87,072 | ) | ||||
Under distributed earnings | 30,704 | 14,036 | 1,331 | |||||||
Under distributed earnings attributable to: | ||||||||||
Common unit holders | 13,347 | 6,649 | 1,304 | |||||||
Weighted average units outstanding (basic and diluted) (in thousands): | ||||||||||
Common units | 45,663 | 40,417 | 27,441 | |||||||
Earnings per unit (basic and diluted): | ||||||||||
Common unit holders | 2.47 | 2.31 | 2.08 | |||||||
Cash distributions declared and paid in the period per unit (2): | 2.14 | 2.05 | 1.78 | |||||||
Subsequent event: Cash distributions declared and paid per unit relating to the period (3) | 0.56 | 0.52 | 0.5 | |||||||
__________________________________________ | ||||||||||
(1) This refers to distributions made or to be made in relation to the period irrespective of the declaration and payment dates and based on the number of units outstanding at the quarter end date. This also includes cash distributions to IDR holders for the years ended December 31, 2014, 2013 and 2012 of $6.3 million, $4.9 million and $nil, respectively. | ||||||||||
(2) Refers to cash distributions declared and paid during the period. | ||||||||||
(3) Refers to cash distributions declared and paid subsequent to the period end. |
ACQUISITION_AFTER_BALANCE_SHEE1
ACQUISITION AFTER BALANCE SHEET DATE (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Acquisition after Balance Sheet Date [Abstract] | ||||||
Details of purchase consideration, net assets aquired and goodwill | The provisional fair values allocated to each class of identifiable assets of the Golar Eskimo and the difference between the purchase price and net assets acquired was calculated as follows: | |||||
(in thousands of $) | 20-Jan-15 | |||||
Purchase consideration | -1 | 227,200 | ||||
Less: Fair value of net assets (liabilities) acquired: | ||||||
Vessel including allocation to charter (if applicable) | 390,000 | |||||
Long-term debt | (162,800 | ) | ||||
Others | — | -2 | ||||
Subtotal | (227,200 | ) | ||||
Difference between the purchase price and fair value of net assets acquired | — | |||||
_________________________________________ | ||||||
(1) This includes the purchase consideration for the vessel less the fair value of the assumed bank debt but excludes any working capital adjustments which will be available upon finalization of the results of the Golar Eskimo for the first quarter of 2015. | ||||||
(2) This information will be available upon finalization of the results of the Golar Eskimo for the first quarter of 2015. | ||||||
The Golar Eskimo was delivered to Golar on December 22, 2014 and was under construction and not operational before its delivery. As a result, we have evaluated that had the acquisition been consummated as of January 1, 2014, Golar Eskimo's pro forma revenue and net income effect for the year ended December 31, 2014 would be immaterial and thus, have not been presented here. |
GENERAL_Details
GENERAL (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | Jan. 31, 2013 | Nov. 30, 2012 | Jul. 31, 2012 | Apr. 12, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 07, 2013 | Oct. 18, 2011 | Jun. 30, 2010 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | |||||
Board_Member | Board_Member | Board_Member | ||||||||||||||||
Ownership interests: | ||||||||||||||||||
Investment Consolidation Method | 100.00% | |||||||||||||||||
Limited Partners' Capital Account, Units Issued | 45,663,096 | 45,663,096 | 45,663,096 | |||||||||||||||
Partners' Capital Account, Units, Sold in Public Offering | 5,100,000 | [1] | 4,316,947 | [1] | 5,824,590 | [1] | 7,294,305 | [1] | 13,800,000 | |||||||||
Proceeds from issuance of equity | $310,500,000 | $0 | $280,586,000 | $401,851,000 | ||||||||||||||
Number of board members that become electable by the common unitholders | 4 | 4 | 4 | |||||||||||||||
Maximum number of board of directors | 7 | 7 | 7 | |||||||||||||||
Percentage ownership in subsidiary | 100.00% | |||||||||||||||||
Number of vessels partnership interest | 4 | |||||||||||||||||
Negative working capital | 136,300,000 | |||||||||||||||||
Mark-to-market valuations of swap derivatives | 71,900,000 | |||||||||||||||||
Debt, Long-term and Short-term, Combined Amount | 889,471,000 | 1,052,532,000 | 889,471,000 | |||||||||||||||
Short-term Debt, Refinanced, Amount | 180,000,000 | |||||||||||||||||
Deferred Drydocking, Operating Cost, and Charterhire Revenue | 20,600,000 | |||||||||||||||||
Golar Maria Facility [Member] | ||||||||||||||||||
Ownership interests: | ||||||||||||||||||
Debt, Long-term and Short-term, Combined Amount | 84,525,000 | 79,525,000 | 84,525,000 | |||||||||||||||
Golar Freeze Facility [Member] | ||||||||||||||||||
Ownership interests: | ||||||||||||||||||
Debt, Long-term and Short-term, Combined Amount | 74,646,000 | 59,107,000 | 74,646,000 | 108,000,000 | 125,000,000 | |||||||||||||
Golar Maria and Freeze Facility [Member] | ||||||||||||||||||
Ownership interests: | ||||||||||||||||||
Debt, Long-term and Short-term, Combined Amount | 73,500,000 | |||||||||||||||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 60.00% | |||||||||||||||||
Cross Currency Interest Rate Contract [Member] | ||||||||||||||||||
Ownership interests: | ||||||||||||||||||
Mark-to-market cross currency interest rate swaps valuation relating to high-yield bonds (see note 23) | 56,600,000 | |||||||||||||||||
FSRUs [Member] | ||||||||||||||||||
Ownership interests: | ||||||||||||||||||
Number of vessels partnership interest | 5 | |||||||||||||||||
LNG Carriers [Member] | ||||||||||||||||||
Ownership interests: | ||||||||||||||||||
Number of vessels partnership interest | 4 | |||||||||||||||||
Common Units [Member] | ||||||||||||||||||
Ownership interests: | ||||||||||||||||||
Limited Partners' Capital Account, Units Issued | 23,127,254 | |||||||||||||||||
Subordinated Units [Member] | ||||||||||||||||||
Ownership interests: | ||||||||||||||||||
Limited Partners' Capital Account, Units Issued | 15,949,831 | |||||||||||||||||
Golar LNG Partners | ||||||||||||||||||
Ownership interests: | ||||||||||||||||||
Investment Consolidation Method | 60.00% | |||||||||||||||||
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | 98.00% | |||||||||||||||||
Golar GP LLC [Member] | ||||||||||||||||||
Ownership interests: | ||||||||||||||||||
General partners ownership interest | 2.00% | |||||||||||||||||
Golar GP LLC [Member] | Incentive Distribution Rights [Member] | ||||||||||||||||||
Ownership interests: | ||||||||||||||||||
Ownership of incentive distribution rights | 81.00% | |||||||||||||||||
Golar Energy [Member] | Incentive Distribution Rights [Member] | ||||||||||||||||||
Ownership interests: | ||||||||||||||||||
Ownership of incentive distribution rights | 19.00% | |||||||||||||||||
Scenario, Forecast [Member] | Golar Maria Facility [Member] | ||||||||||||||||||
Ownership interests: | ||||||||||||||||||
Debt, Long-term and Short-term, Combined Amount | 79,500,000 | |||||||||||||||||
Scenario, Forecast [Member] | Golar Freeze Facility [Member] | ||||||||||||||||||
Ownership interests: | ||||||||||||||||||
Debt, Long-term and Short-term, Combined Amount | 39,600,000 | |||||||||||||||||
Subsequent Event [Member] | Golar Maria and Freeze Facility [Member] | ||||||||||||||||||
Ownership interests: | ||||||||||||||||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 60.00% | |||||||||||||||||
Line of Credit Facility, Borrowing Capacity, Minimum Commitment Amount | $120,000,000 | |||||||||||||||||
[1] | Includes common units issued by us to Golar in a private placement made concurrent to the public offering of 969,305 common units, 1,524,590 common units and 416,947 common units in July 2012, November 2012 and January 2013, respectively. |
SIGNIFICANT_ACCOUNTING_POLICIE3
SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2013 |
Trading activity: | |||
Business Acquisition, Percentage of Voting Interests Acquired | 50.00% | ||
Number of vessels partnership interest | 4 | ||
Allocated administrative expenses | $1,365 | ||
Allocated pension costs | 220 | ||
Allocated net financial expenses (income) | -149 | ||
Total allocated expenses | 1,436 | ||
Number of defined benefit pension plans | 2 | ||
Accumulated Other Comprehensive Loss: | |||
Unrealized net loss on qualifying cash flow hedging instruments | ($2,086) | ($8,989) | ($2,394) |
Minimum [Member] | |||
Trading activity: | |||
Drydocking expense reimbursement period | 2 years 0 months 0 days | ||
Maximum [Member] | |||
Trading activity: | |||
Drydocking expense reimbursement period | 5 years 0 months 0 days | ||
Vessels [Member] | Minimum [Member] | |||
Trading activity: | |||
Property, Plant and Equipment, Useful Life | 40 years 0 months 0 days | ||
Vessels [Member] | Maximum [Member] | |||
Trading activity: | |||
Property, Plant and Equipment, Useful Life | 55 years 0 months 0 days | ||
Deferred drydocking expenditure | Minimum [Member] | |||
Trading activity: | |||
Property, Plant and Equipment, Useful Life | 2 years 0 months 0 days | ||
Deferred drydocking expenditure | Maximum [Member] | |||
Trading activity: | |||
Property, Plant and Equipment, Useful Life | 5 years 0 months 0 days | ||
Maritime Equipment [Member] | |||
Trading activity: | |||
Property, Plant and Equipment, Useful Life | 11 years 0 months 0 days | ||
Assets Held under Capital Leases [Member] | Minimum [Member] | |||
Trading activity: | |||
Property, Plant and Equipment, Useful Life | 40 years 0 months 0 days |
FORMATION_TRANSACTIONS_AND_INI1
FORMATION TRANSACTIONS AND INITIAL PUBLIC OFFERING (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Jan. 31, 2013 | Nov. 30, 2012 | Jul. 31, 2012 | Apr. 12, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||
Board_Member | Board_Member | Board_Member | ||||||||||
Schedule of Cost-method Investments [Line Items] | ||||||||||||
Investment Consolidation Method | 100.00% | |||||||||||
Limited Partners' Capital Account, Units Issued | 45,663,096 | 45,663,096 | 45,663,096 | |||||||||
General Partners' Capital Account, Units Issued | 1,257,408 | 1,257,408 | 1,257,408 | |||||||||
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest | 2.00% | |||||||||||
Cash Partnership Distribution Per Quarter | $0.44 | |||||||||||
Partners' Capital Account, Units, Sold in Public Offering | 5,100,000 | [1] | 4,316,947 | [1] | 5,824,590 | [1] | 7,294,305 | [1] | 13,800,000 | |||
Sale of Stock, Price Per Share | $22.50 | |||||||||||
Proceeds from issuance of equity | $310,500,000 | $0 | $280,586,000 | $401,851,000 | ||||||||
Partners Capital Account Units Sold On Exercise of Overallotment Option Granted | 1,800,000 | |||||||||||
Number of votes each outstanding common unit is entitled to | 1 | |||||||||||
Maximum class of units ownership held to be eligible for voting | 4.90% | |||||||||||
Number of board members that become electable by the common unitholders | 4 | 4 | 4 | |||||||||
Number of appointed directors | 3 | |||||||||||
Maximum number of board of directors | 7 | 7 | 7 | |||||||||
Term of charter | five | |||||||||||
Revolving Credit Facility [Member] | ||||||||||||
Schedule of Cost-method Investments [Line Items] | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $20,000,000 | $20,000,000 | ||||||||||
Limited Partner [Member] | ||||||||||||
Schedule of Cost-method Investments [Line Items] | ||||||||||||
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | 98.00% | |||||||||||
General Partner [Member] | ||||||||||||
Schedule of Cost-method Investments [Line Items] | ||||||||||||
General Partners' Capital Account, Units Issued | 797,492 | |||||||||||
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest | 2.00% | |||||||||||
Common Units [Member] | ||||||||||||
Schedule of Cost-method Investments [Line Items] | ||||||||||||
Limited Partners' Capital Account, Units Issued | 23,127,254 | |||||||||||
Common Units [Member] | Limited Partner [Member] | ||||||||||||
Schedule of Cost-method Investments [Line Items] | ||||||||||||
Limited Partners' Capital Account, Units Issued | 23,127,254 | |||||||||||
Subordinated Units [Member] | ||||||||||||
Schedule of Cost-method Investments [Line Items] | ||||||||||||
Limited Partners' Capital Account, Units Issued | 15,949,831 | |||||||||||
Subordinated Units [Member] | Limited Partner [Member] | ||||||||||||
Schedule of Cost-method Investments [Line Items] | ||||||||||||
Limited Partners' Capital Account, Units Issued | 15,949,831 | |||||||||||
Incentive Distribution Rights [Member] | Golar GP LLC [Member] | ||||||||||||
Schedule of Cost-method Investments [Line Items] | ||||||||||||
Ownership of incentive distribution rights | 81.00% | |||||||||||
Incentive Distribution Rights [Member] | Golar Energy [Member] | ||||||||||||
Schedule of Cost-method Investments [Line Items] | ||||||||||||
Ownership of incentive distribution rights | 19.00% | |||||||||||
Incentive Distribution Rights [Member] | General Partner [Member] | Golar GP LLC [Member] | ||||||||||||
Schedule of Cost-method Investments [Line Items] | ||||||||||||
Ownership of incentive distribution rights | 81.00% | |||||||||||
Incentive Distribution Rights [Member] | General Partner [Member] | Golar Energy [Member] | ||||||||||||
Schedule of Cost-method Investments [Line Items] | ||||||||||||
Ownership of incentive distribution rights | 19.00% | |||||||||||
[1] | Includes common units issued by us to Golar in a private placement made concurrent to the public offering of 969,305 common units, 1,524,590 common units and 416,947 common units in July 2012, November 2012 and January 2013, respectively. |
SUBSIDIARIES_Details
SUBSIDIARIES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Ownership interests: | ||||
Subsidiary Ownership Percentage | 100.00% | |||
Cash and cash equivalents | $98,998,000 | $103,100,000 | $66,327,000 | $49,218,000 |
Restricted Cash | 146,552,000 | 145,725,000 | ||
Vessels and equipment, net | 1,501,170,000 | 1,281,591,000 | ||
Total assets | 1,956,202,000 | 1,721,219,000 | ||
Accrued Liabilities | 21,700,000 | 20,088,000 | ||
Current portion of long-term debt | 124,221,000 | 156,363,000 | ||
Amounts due to related parties | 9,851,000 | 5,989,000 | ||
Long-term debt | 908,311,000 | 733,108,000 | ||
Total liabilities | 1,354,463,000 | 1,151,092,000 | ||
Total equity | 601,739,000 | 570,127,000 | 241,544,000 | 298,033,000 |
Total liabilities and equity | 1,956,202,000 | 1,721,219,000 | ||
PT Pesona [Member] | ||||
Ownership interests: | ||||
Percentage Owned by Third Party | 51.00% | |||
Faraway Maritime Shipping Company [Member] | ||||
Ownership interests: | ||||
Subsidiary Ownership Percentage | 60.00% | |||
PT Golar Indonesia | ||||
Ownership interests: | ||||
Cash and cash equivalents | 17,181,000 | 8,225,000 | ||
Restricted Cash | 10,152,000 | 9,980,000 | ||
Vessels and equipment, net | 333,152,000 | 354,255,000 | ||
Other Assets | 13,545,000 | 9,056,000 | ||
Total assets | 374,030,000 | 381,516,000 | ||
Accrued Liabilities | 6,307,000 | 25,020,000 | ||
Current portion of long-term debt | 14,300,000 | 14,300,000 | ||
Amounts due to related parties | 188,323,000 | 189,835,000 | ||
Long-term debt | 112,100,000 | 126,400,000 | ||
Other Liabilities | 8,693,000 | 6,283,000 | ||
Total liabilities | 329,723,000 | 361,838,000 | ||
Total equity | 44,307,000 | 19,678,000 | ||
Total liabilities and equity | $374,030,000 | $381,516,000 |
SEGMENTAL_INFORMATION_Details
SEGMENTAL INFORMATION (Details) | 36 Months Ended |
Dec. 31, 2014 | |
Segmental information: | |
Number of charterers | 7 |
SEGMENTAL_INFORMATION_Revenues
SEGMENTAL INFORMATION - Revenues from External Customers (Details) (USD $) | 12 Months Ended | 36 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Rate | Rate | Rate | Rate | |
Revenues from external customers: | ||||
Benchmark percentage of revenue for major customer | 10.00% | |||
Concentration Risk, Percentage | 25.00% | |||
Petrobras [Member] | ||||
Revenues from external customers: | ||||
Revenues | 99,976 | $85,899 | $92,952 | |
Concentration Risk, Percentage | 25.00% | 26.00% | 32.00% | |
DUSUP [Member] | ||||
Revenues from external customers: | ||||
Revenues | 48,392 | 48,029 | 48,328 | |
Concentration Risk, Percentage | 12.00% | 15.00% | 17.00% | |
Pertamina [Member] | ||||
Revenues from external customers: | ||||
Revenues | 40,004 | 37,302 | 37,300 | |
Concentration Risk, Percentage | 10.00% | 11.00% | 13.00% | |
BG Broup plc [Member] | ||||
Revenues from external customers: | ||||
Revenues | 68,884 | 66,341 | 66,148 | |
Concentration Risk, Percentage | 17.00% | 20.00% | 23.00% | |
PTNR [Member] | ||||
Revenues from external customers: | ||||
Revenues | 66,345 | 65,478 | 41,902 | |
Concentration Risk, Percentage | 17.00% | 20.00% | 15.00% | |
KNPC [Member] | ||||
Revenues from external customers: | ||||
Revenues | 43,220 | $0 | $0 | |
Concentration Risk, Percentage | 11.00% | 0.00% | 0.00% |
SEGMENTAL_INFORMATION_Geograph
SEGMENTAL INFORMATION - Geographical Segment Data (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Geographical segment data: | |||
Vessels and equipment, net | $1,501,170,000 | $1,281,591,000 | |
Brazil | |||
Geographical segment data: | |||
Revenues | 99,976,000 | 85,899,000 | 92,952,000 |
Vessels and equipment, net | 392,132,000 | 413,967,000 | |
United Arab Emirates | |||
Geographical segment data: | |||
Revenues | 48,392,000 | 48,029,000 | 48,328,000 |
Vessels and equipment, net | 133,082,000 | 142,757,000 | |
Indonesia | |||
Geographical segment data: | |||
Revenues | 66,345,000 | 65,478,000 | 41,902,000 |
Vessels and equipment, net | 219,610,000 | 233,734,000 | |
KUWAIT | |||
Geographical segment data: | |||
Revenues | 43,220,000 | 0 | 0 |
Vessels and equipment, net | $281,946,000 | $0 |
OTHER_FINANCIAL_ITEMS_NET_Deta
OTHER FINANCIAL ITEMS, NET (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Other financial items, net: | |||
Amortization of deferred charges | ($3,554,000) | ($5,828,000) | ($1,123,000) |
Financing arrangement fees and other costs | -147,000 | -2,101,000 | -411,000 |
Interest expense on un-designated interest rate swaps | -12,163,000 | -8,188,000 | -6,609,000 |
Foreign exchange gain (loss) on capital lease obligations and related restricted cash | 677,000 | 7,084,000 | -5,602,000 |
Foreign exchange Gain (Loss) on operations | -978,000 | -634,000 | -176,000 |
Total other financial items | -22,118,000 | -1,661,000 | -5,389,000 |
Write off of Deferred Charges | 2,700,000 | ||
Mark-to-market adjustment for currency swap derivatives | 100,000 | ||
Interest rate swap | |||
Other financial items, net: | |||
Mark-to-market adjustment on derivatives | -5,953,000 | 12,845,000 | 1,328,000 |
Foreign exchange contract | |||
Other financial items, net: | |||
Mark-to-market adjustment on derivatives | 0 | -4,839,000 | 7,204,000 |
Golar Partners Operating credit facility [Member] | |||
Other financial items, net: | |||
Debt Related Commitment Fees and Debt Issuance Costs | $1,200,000 |
TAXATION_Details
TAXATION (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2015 | Jan. 01, 2014 | Dec. 31, 2011 | |
Taxation: | ||||||
Deferred Tax Assets, Operating Loss Carryforwards | $38,100,000 | |||||
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | 1,600,000 | |||||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 7,900,000 | |||||
Deferred Tax Assets, Net, Current | 3,085,000 | 0 | ||||
Operating Loss Carryforwards, Expiration Date | 31-Dec-18 | 31-Dec-17 | ||||
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | 0 | 0 | 0 | |||
Deferred tax benefit on intra-group transfers realized on loss of control | 0 | 0 | -912,000 | |||
Effect of Increases Resulting from Prior Period Tax Positions | -5,042,000 | 0 | 0 | |||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | -9,524,000 | 0 | 0 | |||
Foreign Income Tax Expense (Benefit), Continuing Operations | 9,519,000 | 5,453,000 | 10,338,000 | |||
Income Tax Expense (Benefit) | -5,047,000 | 5,453,000 | 9,426,000 | |||
Components of income tax expense: | ||||||
Current tax expense (income) | 4,477,000 | 5,453,000 | 10,338,000 | |||
Deferred Foreign Income Tax Expense (Benefit) | 5,300,000 | |||||
Amortization of deferred tax benefit on intragroup transfers | 0 | 0 | -912,000 | |||
Effective Income Tax Rate Reconciliation, at Foreign Statutory Income Tax Rate | 0.00% | |||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 300,000 | 800,000 | 0 | |||
Deferred income tax assets: | ||||||
Deferred Tax Assets, Gross | 9,524,000 | 6,070,000 | 0 | |||
Deferred Tax Assets, Valuation Allowance | 9,524,000 | 6,070,000 | ||||
Deferred Tax Assets, Net of Valuation Allowance | 9,524,000 | 0 | 0 | 0 | 0 | |
Additions for tax positions of prior years | 13,920,000 | 6,070,000 | 0 | |||
Release of deferred tax asset | -4,396,000 | 0 | 0 | |||
Movement in valuation allowance | 0 | -6,070,000 | 0 | |||
Operating Loss Carryforwards | 31,761,000 | 6,335,000 | ||||
Deferred Tax Assets, Net, Noncurrent | 6,439,000 | 0 | ||||
Deferred Tax Assets, Net | 9,524,000 | 0 | ||||
UNITED KINGDOM | ||||||
Components of income tax expense: | ||||||
Current tax expense (income) | 852,000 | -373,000 | 1,888,000 | |||
Number of vessels | 5 | |||||
Effective Income Tax Rate Reconciliation, at Foreign Statutory Income Tax Rate | 21.00% | |||||
Earliest open tax period | 2011 | |||||
Brazil | ||||||
Components of income tax expense: | ||||||
Current tax expense (income) | 1,136,000 | 779,000 | 1,055,000 | |||
Earliest open tax period | 2009 | |||||
Indonesia | ||||||
Components of income tax expense: | ||||||
Current tax expense (income) | 544,000 | 5,047,000 | 7,395,000 | |||
Deferred Foreign Income Tax Expense (Benefit) | -9,524,000 | 0 | 0 | |||
Earliest open tax period | 2013 | |||||
KUWAIT | ||||||
Components of income tax expense: | ||||||
Current tax expense (income) | $1,945,000 | $0 | $0 | |||
Earliest open tax period | 2014 | |||||
Scenario, Forecast [Member] | UNITED KINGDOM | ||||||
Components of income tax expense: | ||||||
Effective Income Tax Rate Reconciliation, at Foreign Statutory Income Tax Rate | 20.00% |
OPERATING_LEASES_Details
OPERATING LEASES (Details) (USD $) | 1 Months Ended | 3 Months Ended | ||
Feb. 28, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Rate | Rate | |||
Minimum contractual future revenues to be received: | ||||
2015 | $380,508,000 | |||
2016 | 388,234,000 | |||
2017 | 383,203,000 | |||
2018 | 253,663,000 | |||
2019 | 199,393,000 | |||
2020 and later | 586,686,000 | |||
Total | 2,191,687,000 | |||
Equipment Leased to Other Party [Member] | ||||
Minimum contractual future revenues to be received: | ||||
Cost | 2,121,000,000 | 1,858,300,000 | ||
Accumulated depreciation | $497,500,000 | $449,000,000 | ||
Subsequent Event [Member] | ||||
Operating leases: | ||||
Vessel Option, Option Exercised Hire Rate Paid | 75.00% | |||
Vessel Option, Option Exercised Hire Rate Paid, Percentage Loss | 25.00% |
BUSINESS_COMBINATION_Details
BUSINESS COMBINATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||
Mar. 28, 2014 | Dec. 31, 2014 | Feb. 28, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 07, 2013 | |||
Less: Fair value of net assets acquired: | ||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 50.00% | |||||||
Golar Igloo [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Combination, Consideration Transferred | $156,001,000 | [1] | ||||||
Less: Fair value of net assets acquired: | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 287,542,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 19,099,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 682,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Financial Assets | 3,636,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | 6,312,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | -161,270,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | -156,001,000 | |||||||
Goodwill, Period Increase (Decrease) | 0 | |||||||
Purchase consideration - cash | 148,730,000 | |||||||
Purchase price adjustments on acquisition | 3,635,000 | |||||||
Revenues | 43,200,000 | |||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |||||||
Business Acquisition, Effective Date of Acquisition | 28-Mar-14 | |||||||
Business Acquisition Purchase Consideration | 310,000,000 | |||||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | 22,300,000 | |||||||
Business Acquisition, Pro Forma Revenue | 400,209,000 | |||||||
Business Acquisition, Pro Forma Net Income (Loss) | 184,751,000 | |||||||
Golar Maria [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Combination, Consideration Transferred | 127,910,000 | [1] | ||||||
Less: Fair value of net assets acquired: | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 215,000,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 0 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 7,981,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Financial Liabilities | -3,096,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | -2,450,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | -89,525,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | -127,910,000 | |||||||
Goodwill, Period Increase (Decrease) | 0 | |||||||
Purchase consideration - cash | 125,500,000 | |||||||
Purchase price adjustments on acquisition | 5,506,000 | |||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |||||||
Business Acquisition, Effective Date of Acquisition | 7-Feb-13 | |||||||
Business Acquisition, Pro Forma Revenue | 332,150,000 | 308,617,000 | ||||||
Business Acquisition, Pro Forma Net Income (Loss) | $152,388,000 | $135,472,000 | ||||||
Common Units [Member] | Golar Igloo [Member] | ||||||||
Less: Fair value of net assets acquired: | ||||||||
Business Acquisition, Pro Forma Earnings Per Share, Basic | $2.56 | |||||||
Common Units [Member] | Golar Maria [Member] | ||||||||
Less: Fair value of net assets acquired: | ||||||||
Business Acquisition, Pro Forma Earnings Per Share, Basic | $2.33 | $2.52 | ||||||
[1] | The purchase consideration comprises the following:(in thousands of $)Golar IglooB Golar MariaCash consideration paid to Golar148,730B 125,500Adjustment for the interest rate swap asset (liability) assumed3,636B (3,096)Purchase price adjustments3,635B 5,506B 156,001B 127,910 |
TRADE_ACCOUNTS_RECEIVABLE_Deta
TRADE ACCOUNTS RECEIVABLE (Details) (Trade accounts receivable, USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Trade accounts receivable | |
Trade accounts receivable: | |
Provision for doubtful accounts | $0 |
OTHER_RECEIVABLES_PREPAID_EXPE2
OTHER RECEIVABLES, PREPAID EXPENSES AND ACCRUED INCOME (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
OTHER RECEIVABLES, PREPAID EXPENSES AND ACCRUED INCOME [Abstract] | ||
Other receivables | $2,174,000 | $2,937,000 |
Deferred Tax Assets, Net, Current | 3,085,000 | 0 |
Prepaid expenses | 2,257,000 | 4,089,000 |
Other receivables, prepaid expenses and accrued income | 7,516,000 | 7,026,000 |
Loss Contingency, Receivable | $2,000,000 |
VESSELS_AND_EQUIPMENT_NET_Deta
VESSELS AND EQUIPMENT, NET (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Components of vessels and equipment, net: | |||
Cost | $1,952,390,000 | $1,665,039,000 | |
Accumulated depreciation and amortization | -451,220,000 | -383,448,000 | |
Net book value | 1,501,170,000 | 1,281,591,000 | |
Number of owned shipping vessels | 9 | 8 | |
Interest Costs Capitalized | 0 | 0 | 1,800,000 |
Amounts pledged as collateral | 1,501,200,000 | 1,281,600,000 | |
Drydocking | |||
Components of vessels and equipment, net: | |||
Cost | 72,600,000 | 68,700,000 | |
Accumulated depreciation and amortization | -27,900,000 | -16,600,000 | |
Mooring Costs [Member] | |||
Components of vessels and equipment, net: | |||
Cost | 38,100,000 | ||
Accumulated depreciation and amortization | -9,600,000 | -6,000,000 | |
Vessels [Member] | |||
Components of vessels and equipment, net: | |||
Depreciation and amortization expense | 72,600,000 | 55,100,000 | 35,200,000 |
NR Satu [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Assets, Fair Value Disclosure | 169,000 | ||
Components of vessels and equipment, net: | |||
Net book value | 220,000 | ||
Golar Mazo [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Assets, Fair Value Disclosure | 125,000 | ||
Components of vessels and equipment, net: | |||
Net book value | 154,000 | ||
Golar Winter [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Assets, Fair Value Disclosure | 196,000 | ||
Components of vessels and equipment, net: | |||
Net book value | 248,000 | ||
Golar Maria [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Assets, Fair Value Disclosure | 146,000 | ||
Components of vessels and equipment, net: | |||
Net book value | $202,000 |
VESSELS_UNDER_CAPITAL_LEASES_N2
VESSELS UNDER CAPITAL LEASES, NET (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Components of vessels under capital leases, net: | |||
Cost | $168,577,000 | $168,492,000 | |
Accumulated depreciation and amortization | -46,324,000 | -40,799,000 | |
Capital Leases, Balance Sheet, Assets by Major Class, Net | 122,253,000 | 127,693,000 | |
Number of leased shipping vessels | 1 | ||
Drydocking costs | |||
Components of vessels under capital leases, net: | |||
Cost | 8,100,000 | ||
Accumulated depreciation and amortization | -2,500,000 | -900,000 | |
Assets Held under Capital Leases [Member] | |||
Components of vessels under capital leases, net: | |||
Depreciation and amortization expense | $5,500,000 | $11,900,000 | $16,600,000 |
INTANGIBLE_ASSETS_NET_Details
INTANGIBLE ASSETS, NET (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Finite-Lived Intangible Assets, Gross | $19,096 | $0 |
Finite-Lived Intangible Assets, Accumulated Amortization | -3,064 | 0 |
Intangible Assets, Net | 16,032 | 0 |
Finite-Lived Intangible Assets, Remaining Amortization Period | 5 years | |
Impairment of Intangible Assets, Finite-lived | 0 | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 3,820 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 3,820 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 3,820 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 3,820 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $752 |
DEFERRED_CHARGES_Details
DEFERRED CHARGES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Debt arrangement fees and other deferred financing charges | $23,384 | $20,677 | |
Accumulated amortization | -10,028 | -6,407 | |
Deferred charges | 13,356 | 14,270 | |
Amortization of deferred charges | $3,554 | $5,828 | $1,123 |
RESTRICTED_CASH_AND_SHORTTERM_2
RESTRICTED CASH AND SHORT-TERM INVESTMENTS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Restricted cash and short-term investment balances: | ||
Restricted cash and short-term investments | $25,831,000 | $24,451,000 |
Minimum amount of cash and cash equivalents | 30,000,000 | |
Restricted cash | 152,223,000 | 151,364,000 |
Short-term restricted cash and short-term investments: | ||
Security lease deposits included in short-term restricted cash | 5,671,000 | 5,639,000 |
Restricted Cash | 146,552,000 | 145,725,000 |
Cross Currency Interest Rate Contract [Member] | ||
Restricted cash and short-term investment balances: | ||
Restricted cash | 9,710,000 | 0 |
Capital lease obligations | ||
Restricted cash and short-term investment balances: | ||
Total security lease deposits for lease obligations | 5,671,000 | 5,639,000 |
Secured Debt [Member] | Golar Freeze facility | ||
Restricted cash and short-term investment balances: | ||
Restricted cash | 10,008,000 | 8,832,000 |
Secured Debt [Member] | NR Satu facility [Member] | ||
Restricted cash and short-term investment balances: | ||
Restricted cash | 10,152,000 | 9,980,000 |
Methane Princess Lease [Member] | ||
Restricted cash and short-term investment balances: | ||
Restricted cash | $142,513,000 | $151,364,000 |
OTHER_NONCURRENT_ASSETS_Detail
OTHER NON-CURRENT ASSETS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Components of other non-current assets: | |||
Interest Rate Derivative Assets, at Fair Value | $3,617,000 | $5,335,000 | |
Lease security deposit movements | 0 | 4,257,000 | |
Deferred Tax Assets, Net, Noncurrent | 6,439,000 | 0 | |
Other long-term assets | 5,227,000 | 5,969,000 | |
Other Assets, Noncurrent | 15,283,000 | 15,561,000 | |
Deferred Costs, Noncurrent | 5,200,000 | 6,000,000 | |
Amortization of Deferred Charges | $700,000 | $700,000 | $200,000 |
ACCRUED_EXPENSES_Details
ACCRUED EXPENSES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Payables and Accruals [Abstract] | ||
Vessel operating and drydocking expenses | $5,762,000 | $5,538,000 |
Administrative expenses | 967,000 | 757,000 |
Interest expense | 7,043,000 | 6,273,000 |
Provision for tax | 7,928,000 | 7,520,000 |
Accrued expenses | 21,700,000 | 20,088,000 |
Provision for interest and penalties | $1,100,000 | $800,000 |
OTHER_CURRENT_LIABILITIES_Deta
OTHER CURRENT LIABILITIES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Mark-to-market swaps valuation: | ||
Deferred revenue | $20,594 | $17,888 |
Deferred credits from capital lease transactions | 625 | 625 |
Other | 6,385 | 6,609 |
Other current liabilities | 99,481 | 57,045 |
Swap [Member] | Interest rate swap | ||
Mark-to-market swaps valuation: | ||
Derivative liabilities, current | 15,222 | 15,119 |
Swap [Member] | Cross Currency Interest Rate Contract [Member] | ||
Mark-to-market swaps valuation: | ||
Derivative liabilities, current | 56,639 | 16,804 |
Swap [Member] | Currency Swap [Member] | ||
Mark-to-market swaps valuation: | ||
Derivative liabilities, current | $16 | $0 |
DEBT_Details
DEBT (Details) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 42 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 39 Months Ended | 57 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Nov. 30, 2008 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2013 | Sep. 30, 2008 | Sep. 30, 2008 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 18, 2011 | Jun. 30, 2010 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 19, 2011 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jul. 01, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2015 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2015 | 30-May-15 | Apr. 30, 2015 | Apr. 30, 2015 | Apr. 30, 2015 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |||||||
USD ($) | USD ($) | Sponsor credit facility [Member] | Sponsor credit facility [Member] | Sponsor credit facility [Member] | Golar Maria Facility [Member] | Golar Maria Facility [Member] | Golar Maria and Freeze Facility [Member] | Golar Maria and Freeze Facility [Member] | Golar Maria and Freeze Facility [Member] | High yield bonds [Member] | High yield bonds [Member] | High yield bonds [Member] | High yield bonds [Member] | Golar LNG Partners Credit Facility [Member] | Golar LNG Partners Credit Facility [Member] | Golar LNG Partners Credit Facility [Member] | Golar LNG Partners Credit Facility [Member] | Golar LNG Partners Credit Facility [Member] | Golar LNG Partners Credit Facility [Member] | Golar Partners Operating credit facility [Member] | Golar Partners Operating credit facility [Member] | Golar Partners Operating credit facility [Member] | Golar Partners Operating credit facility [Member] | Golar Freeze facility | Golar Freeze facility | Golar Freeze facility | Golar Freeze facility | Golar Freeze facility | Golar Freeze facility | Golar LNG vendor financing loan Golar Freeze [Member] | Golar LNG vendor financing loan Golar Freeze [Member] | NR Satu facility [Member] | NR Satu facility [Member] | NR Satu facility [Member] | NR Satu facility [Member] | NR Satu facility [Member] | Golar Igloo Debt [Member] | Golar Igloo Debt [Member] | Golar Igloo Debt [Member] | Golar Igloo Debt [Member] | Golar Igloo Debt [Member] | Golar Igloo Debt [Member] | Golar Igloo Debt [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Scenario, Forecast [Member] | Scenario, Forecast [Member] | Scenario, Forecast [Member] | Scenario, Forecast [Member] | Scenario, Forecast [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||||||
Rate | Rate | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Term loan facility [Member] | Revolving Credit Facility [Member] | USD ($) | USD ($) | Norway, Krone | United States of America, Dollars | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Term loan facility [Member] | Revolving Credit Facility [Member] | USD ($) | USD ($) | USD ($) | USD ($) | Commercial Loan Tranche [Member] | Exportfinans Loan Tranche [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Term loan facility [Member] | Revolving Credit Facility [Member] | USD ($) | USD ($) | USD ($) | USD ($) | K-Sure [Member] | KEXIM [Member] | Commercial [Member] | Golar Igloo Debt [Member] | Golar Igloo Debt [Member] | Golar Maria Facility [Member] | Golar Maria and Freeze Facility [Member] | Golar LNG Partners Credit Facility [Member] | Golar Freeze facility | Golar Freeze facility | USD ($) | Term loan facility [Member] | Revolving Credit Facility [Member] | Golar Maria and Freeze Facility [Member] | Golar Maria and Freeze Facility [Member] | Golar Maria and Freeze Facility [Member] | |||||||||||
Rate | USD ($) | USD ($) | Rate | NOK | USD ($) | Rate | USD ($) | USD ($) | USD ($) | Rate | Rate | Rate | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Commercial Loan Tranche [Member] | USD ($) | USD ($) | USD ($) | USD ($) | Rate | |||||||||||||||||||||||||||||||||||||||||
Rate | Rate | USD ($) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt, Long-term and Short-term, Combined Amount | $1,052,532,000 | $889,471,000 | $20,000,000 | $0 | $79,525,000 | $84,525,000 | $73,500,000 | $174,450,000 | $214,100,000 | $203,500,000 | $160,500,000 | $202,300,000 | $235,000,000 | $215,000,000 | $59,107,000 | $74,646,000 | $108,000,000 | $125,000,000 | $126,400,000 | $140,700,000 | $154,550,000 | $0 | $79,500,000 | $39,600,000 | |||||||||||||||||||||||||||||||||||||||||
Short-Term Debt, Due To Related Parties, Current | -20,000,000 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Current Maturities | -124,221,000 | -156,363,000 | -34,800,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt, Refinanced, Amount | 180,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 908,311,000 | 733,108,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 144,221,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 87,989,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 262,439,000 | 3,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 393,906,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 44,122,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 119,855,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total debt including related parties | 1,052,532,000 | 889,471,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt, Weighted Average Interest Rate | 2.90% | 3.37% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturity date | 2015 | 2018 | [1] | 2017 | 2018 | 2018 | 2018 | [2] | 6/30/15 | [2] | 12/31/18 | [2] | 2020 | Feb-19 | 2019 | [3] | 2026 | [3] | 30-Jun-18 | ||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 120,000,000 | 150,000,000 | 30,000,000 | 285,000,000 | 275,000,000 | 225,000,000 | 50,000,000 | 50,000,000 | 175,000,000 | 155,000,000 | 20,000,000 | 150,000,000 | 30,000,000 | 180,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly installment | 3,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 89,500,000 | 161,300,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 5.20% | 1.34% | 2.10% | 2.75% | 2.75% | 1.34% | 3.50% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Interest Rate Description | the margin on LIBOR on this facility was increased from 0.95% to 1.65% | three months NIBOR plus a margin of 5.20% | LIBOR plus a margin of 1.15% | LIBOR plus a margin of 3% | LIBOR plus a margin of 3% | LIBOR plus a margin of 3.5% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balloon Payment | 137,500,000 | 130,000,000 | 222,300,000 | 222,300,000 | 52,500,000 | 20,200,000 | 75,800,000 | 34,800,000 | 114,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 1,300,000,000 | 227,000,000 | 222,300,000 | 1,125,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.49% | 6.75% | 6.75% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of vessels | 2 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Lines of Credit | 5,000,000 | 250,000,000 | 65,000,000 | 40,000,000 | 155,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit, Amount Facility Decreases | 2,500,000 | 5,500,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Term of Credit Facility | ten years | 5 years 0 months 0 days | eight years | 7 | 12 years | 12 years | 5 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Tranches | 2 | 2 | 2 | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 1.20% | 1.40% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 10,000,000 | 20,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proportion of facility | 40.00% | 40.00% | 20.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 60.00% | 50.00% | 10.00% | 60.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Borrowing Capacity, Minimum Commitment Amount | 120,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum amount of cash and cash equivalents | $30,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage guaranteed | 95.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[1] | A final balloon payment is due on the facility in December 2015. In April 2015, we obtained a signed term sheet from certain lenders to refinance the Golar Maria credit facility (see "Golar Maria Facility" below). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | The Commercial Loan facility tranche matures in June 2015. In April 2015, we obtained a signed term sheet from certain lenders to refinance the Commercial Loan facility tranche (see "Golar Freeze Facility" below) . The Exportfinans Loan facility tranche matures in June 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | The Kexim and K-sure tranches have a term of twelve years from the date of draw down and the Commercial tranche has a term of five years from the date of draw down. |
CAPITAL_LEASES_Details
CAPITAL LEASES (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Capital Lease Obligations [Line Items] | ||
Obligations under capital leases | $150,997 | $159,008 |
Number of leased shipping vessels | 1 | |
Maritime Equipment [Member] | ||
Capital Lease Obligations [Line Items] | ||
Number of leased shipping vessels | 1 | |
Methane Princess Lease [Member] | ||
Capital Lease Obligations [Line Items] | ||
Capital Leases, Future Minimum Payments Due, Next Twelve Months | 7,579 | |
Capital Leases, Future Minimum Payments Due in Two Years | 7,866 | |
Capital Leases, Future Minimum Payments Due in Three Years | 8,163 | |
Capital Leases, Future Minimum Payments Due in Four Years | 8,489 | |
Capital Leases, Future Minimum Payments Due in Five Years | 8,814 | |
Capital Leases, Future Minimum Payments Due Thereafter | 163,895 | |
Capital Leases, Future Minimum Payments Due | 204,806 | |
Capital Leases, Future Minimum Payments, Interest Included in Payments | -53,809 | |
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments | $150,997 | |
Lease Expiration Date | 31-Dec-33 |
OTHER_LONGTERM_LIABILITIES_Det
OTHER LONG-TERM LIABILITIES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Other long-term liabilities: | ||
Other Deferred Credits, Noncurrent | $17,281,000 | $17,904,000 |
Deferred credits from capital lease transactions: | ||
Deferred credits from capital lease transactions, gross | 24,691,000 | 24,691,000 |
Deferred credits from capital lease transactions, accumulated amortization | -6,785,000 | -6,162,000 |
Deferred credits from capital lease transactions | 17,906,000 | 18,529,000 |
Deferred credits from capital lease transactions, short-term | 625,000 | 625,000 |
Deferred credits from capital lease transactions, amortization expense | $600,000 |
FINANCIAL_INSTRUMENTS_Risk_Man
FINANCIAL INSTRUMENTS - Risk Management (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Mark-to-market swaps valuation: | ||||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $1,339,000 | [1] | ($775,000) | [1] | $0 | [1] |
Unrealized net loss on qualifying cash flow hedging instruments | 2,086,000 | 2,394,000 | 8,989,000 | |||
Foreign Currency Transaction Gain, before Tax | 700,000 | 2,300,000 | 1,600,000 | |||
Foreign exchange gain (loss) on capital lease obligations and related restricted cash | 677,000 | 7,084,000 | -5,602,000 | |||
Foreign exchange contract | ||||||
Mark-to-market swaps valuation: | ||||||
Mark-to-market adjustment on derivatives | 0 | -4,839,000 | 7,204,000 | |||
Interest rate swap | ||||||
Mark-to-market swaps valuation: | ||||||
Notional value | 919,130,000 | 997,607,000 | ||||
Derivative, Lower Fixed Interest Rate Range | 0.92% | 0.92% | ||||
Derivative, Higher Fixed Interest Rate Range | 2.96% | 5.04% | ||||
Derivative, notional amount, assumed on business combination | 100,000,000 | |||||
Derivative, notional amount, maturing in the year | 130,000,000 | |||||
Interest rate swap | Designated as Hedging Instrument [Member] | Cash flow hedging | ||||||
Mark-to-market swaps valuation: | ||||||
Amount of gain/(loss) recognized in OCI on derivative (effective portion) | 492,000 | 5,515,000 | 1,113,000 | |||
Unrealized net loss on qualifying cash flow hedging instruments | 3,400,000 | 1,600,000 | ||||
Interest rate swap | Designated as Hedging Instrument [Member] | Cash flow hedging | Other financial Items, net | ||||||
Mark-to-market swaps valuation: | ||||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | -1,339,000 | 775,000 | 0 | |||
Ineffective Portion | -1,210,000 | 1,015,000 | -409,000 | |||
Interest rate swap | Minimum [Member] | ||||||
Mark-to-market swaps valuation: | ||||||
Derivative, Maturity Date | 15-May-15 | 14-Apr-14 | ||||
Interest rate swap | Minimum [Member] | Designated as Hedging Instrument [Member] | Cash flow hedging | ||||||
Mark-to-market swaps valuation: | ||||||
Derivative, Maturity Date | 15-May-15 | |||||
Interest rate swap | Maximum [Member] | ||||||
Mark-to-market swaps valuation: | ||||||
Derivative, Maturity Date | 1-Oct-20 | 1-Oct-20 | ||||
Interest rate swap | Maximum [Member] | Designated as Hedging Instrument [Member] | Cash flow hedging | ||||||
Mark-to-market swaps valuation: | ||||||
Derivative, Maturity Date | 31-Mar-18 | |||||
Cross Currency Interest Rate Contract [Member] | ||||||
Mark-to-market swaps valuation: | ||||||
Derivative, Maturity Date | 31-Dec-17 | |||||
Derivative, Forward Exchange Rate | 5.722 | |||||
Derivative, Fixed Interest Rate | 6.49% | |||||
Cross Currency Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | Cash flow hedging | ||||||
Mark-to-market swaps valuation: | ||||||
Amount of gain/(loss) recognized in OCI on derivative (effective portion) | -184,000 | 1,080,000 | -5,063,000 | |||
Unrealized loss on interest rate swap derivatives | -4,200,000 | -4,000,000 | ||||
Cross Currency Interest Rate Contract [Member] | United States of America, Dollars | ||||||
Mark-to-market swaps valuation: | ||||||
Notional value | 227,193,000 | |||||
Cross Currency Interest Rate Contract [Member] | Norway, Krone | ||||||
Mark-to-market swaps valuation: | ||||||
Notional value | 1,300,000,000 | |||||
Fair Value, Inputs, Level 2 [Member] | Interest rate swap | Designated as Hedging Instrument [Member] | Cash flow hedging | ||||||
Mark-to-market swaps valuation: | ||||||
Notional value | 211,600,000 | 287,100,000 | ||||
Singapore dollars [Member] | ||||||
Mark-to-market swaps valuation: | ||||||
Notional value | 563,000 | |||||
Derivative, Maturity Date | 20-Jan-15 | |||||
Derivative, Forward Exchange Rate | 1.276 | |||||
Singapore dollars [Member] | United States of America, Dollars | ||||||
Mark-to-market swaps valuation: | ||||||
Notional value | $441,000 | |||||
[1] | Amounts reclassified from accumulated other comprehensive income (loss) to 'Other financial items, net' on the consolidated and combined carve-out statements of operations relate to losses (gains) on cash flow hedges in respect of interest rate swaps. |
FINANCIAL_INSTRUMENTS_Fair_Val
FINANCIAL INSTRUMENTS - Fair Values (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Fair values: | ||||||
Debt, Long-term and Short-term, Combined Amount | $1,052,532,000 | 889,471,000 | ||||
Cash and cash equivalents, carrying value | 98,998,000 | 103,100,000 | 66,327,000 | 49,218,000 | ||
Restricted cash | 152,223,000 | 151,364,000 | ||||
Short-Term Debt, Due To Related Parties, Current | 20,000,000 | 0 | ||||
Obligations under capital leases | 150,997,000 | 159,008,000 | ||||
Interest Rate Derivative Assets, at Fair Value | 3,617,000 | 5,335,000 | ||||
Derivative Asset, Fair Value, Gross Asset | 3,617,000 | 5,335,000 | ||||
Derivative Asset, Not Offset, Policy Election Deduction | -1,831,000 | 0 | ||||
Derivative Asset | 1,786,000 | 5,335,000 | ||||
Derivative Liability, Fair Value, Gross Liability | 15,222,000 | 15,119,000 | ||||
Derivative Liability, Not Offset, Policy Election Deduction | -1,831,000 | 0 | ||||
Derivative Liability | 13,391,000 | 15,119,000 | ||||
Singapore dollars [Member] | ||||||
Fair values: | ||||||
Notional value | 563,000 | |||||
Derivative, Maturity Date | 20-Jan-15 | |||||
Singapore dollars [Member] | United States of America, Dollars | ||||||
Fair values: | ||||||
Notional value | 441,000 | |||||
Interest rate swap | ||||||
Fair values: | ||||||
Notional value | 919,130,000 | 997,607,000 | ||||
Interest rate swap | Minimum [Member] | ||||||
Fair values: | ||||||
Derivative, Maturity Date | 15-May-15 | 14-Apr-14 | ||||
Interest rate swap | Maximum [Member] | ||||||
Fair values: | ||||||
Derivative, Maturity Date | 1-Oct-20 | 1-Oct-20 | ||||
Interest rate swap | Designated as Hedging Instrument [Member] | Minimum [Member] | Cash flow hedging | ||||||
Fair values: | ||||||
Derivative, Maturity Date | 15-May-15 | |||||
Interest rate swap | Designated as Hedging Instrument [Member] | Maximum [Member] | Cash flow hedging | ||||||
Fair values: | ||||||
Derivative, Maturity Date | 31-Mar-18 | |||||
Cross Currency Interest Rate Contract [Member] | ||||||
Fair values: | ||||||
Derivative Credit Risk Valuation Adjustment, Derivative Liabilities | 3,200,000 | |||||
Derivative, Maturity Date | 31-Dec-17 | |||||
Cross Currency Interest Rate Contract [Member] | United States of America, Dollars | ||||||
Fair values: | ||||||
Notional value | 227,193,000 | |||||
High yield bonds [Member] | ||||||
Fair values: | ||||||
Debt, Long-term and Short-term, Combined Amount | 174,450,000 | 214,100,000 | ||||
Level 2 | Interest rate swap | Designated as Hedging Instrument [Member] | Cash flow hedging | ||||||
Fair values: | ||||||
Interest Rate Derivative Liabilities, at Fair Value | 2,000,000 | [1],[2] | 3,500,000 | [1],[2] | ||
Notional value | 211,600,000 | 287,100,000 | ||||
Reported Value Measurement [Member] | Level 1 | ||||||
Fair values: | ||||||
Cash and cash equivalents, carrying value | 98,998,000 | 103,100,000 | ||||
Restricted cash | 172,383,000 | 170,176,000 | ||||
Reported Value Measurement [Member] | Level 1 | High yield bonds [Member] | ||||||
Fair values: | ||||||
Debt, Long-term and Short-term, Combined Amount | 174,450,000 | [3] | 214,100,000 | [3] | ||
Reported Value Measurement [Member] | Level 2 | ||||||
Fair values: | ||||||
Long-term debt - floating | 858,082,000 | [4] | 675,371,000 | [4] | ||
Obligations under capital leases | 150,997,000 | [4] | 159,008,000 | [4] | ||
Interest Rate Derivative Assets, at Fair Value | 3,617,000 | [1],[2] | 5,335,000 | [1],[2] | ||
Interest Rate Derivative Liabilities, at Fair Value | 15,222,000 | [1],[2] | 15,119,000 | [1],[2] | ||
Foreign Currency Derivative Liability at Fair Value | 16,000 | [2] | 0 | [2] | ||
Reported Value Measurement [Member] | Level 2 | Cross Currency Interest Rate Contract [Member] | ||||||
Fair values: | ||||||
Derivative liabilities, current | 56,639,000 | [2],[5] | 16,804,000 | [2],[5] | ||
Reported Value Measurement [Member] | Level 3 | ||||||
Fair values: | ||||||
Short-Term Debt, Due To Related Parties, Current | 20,000,000 | 0 | ||||
Estimate of Fair Value Measurement [Member] | Level 1 | ||||||
Fair values: | ||||||
Cash and cash equivalents, fair value | 98,998,000 | 103,100,000 | ||||
Restricted cash | 172,383,000 | 170,176,000 | ||||
Estimate of Fair Value Measurement [Member] | Level 1 | High yield bonds [Member] | ||||||
Fair values: | ||||||
Debt, Long-term and Short-term, Combined Amount | 173,578,000 | [3] | 221,166,000 | [3] | ||
Fair value of high yield bonds of face value | 99.50% | 103.30% | ||||
Estimate of Fair Value Measurement [Member] | Level 2 | ||||||
Fair values: | ||||||
Long-term debt - floating | 858,082,000 | [4] | 675,371,000 | [4] | ||
Obligations under capital leases | 150,997,000 | [4] | 159,008,000 | [4] | ||
Interest Rate Derivative Assets, at Fair Value | 3,617,000 | [1],[2] | 5,335,000 | [1],[2] | ||
Interest Rate Derivative Liabilities, at Fair Value | 15,222,000 | [1],[2] | 15,119,000 | [1],[2] | ||
Foreign Currency Derivative Liability at Fair Value | 16,000 | [2] | 0 | [2] | ||
Estimate of Fair Value Measurement [Member] | Level 2 | Cross Currency Interest Rate Contract [Member] | ||||||
Fair values: | ||||||
Derivative liabilities, current | 56,639,000 | [2],[5] | 16,804,000 | [2],[5] | ||
Estimate of Fair Value Measurement [Member] | Level 3 | ||||||
Fair values: | ||||||
Short-Term Debt, Due To Related Parties, Current | 20,000,000 | 0 | ||||
Cross Currency Interest Rate Contract [Member] | ||||||
Fair values: | ||||||
Restricted cash | $9,710,000 | 0 | ||||
[1] | The fair value/carrying value of interest rate swap agreements (excluding the cross currency interest rate swap described in footnote 5) that qualify and are designated as cash flow hedges as of DecemberB 31, 2014 and 2013 was $2.0 million (with a notional amount of $211.6 million) and $3.5 million (with a notional amount of $287.1 million), respectively. The expected maturity of these interest rate agreements is from May 2015 to March 2018. | |||||
[2] | Derivative liabilities are captured within other current liabilities and derivative assets are captured within long-term assets on the balance sheet. | |||||
[3] | This pertains to high-yield bonds with a carrying value of $174.5 million as of DecemberB 31, 2014 which is included under long-term debt on the balance sheet. The fair value of the high-yield bonds as of DecemberB 31, 2014 was $173.6 million (2013: $221.2 million), which represents 99.5% (2013: 103.3%) of its face value. | |||||
[4] | Our debt and capital lease obligations are recorded at amortized cost in the consolidated balance sheets. | |||||
[5] | We issued NOK denominated senior unsecured bonds. In order to hedge our exposure, we entered into a non-amortizing cross currency interest rate swap agreement. The swap hedges both the full redemption amount of the NOK obligation and the related quarterly interest payments. We designated the cross currency interest rate swap as a cash flow hedge. |
FINANCIAL_INSTRUMENTS_Concentr
FINANCIAL INSTRUMENTS - Concentrations of Risk (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Rate | Rate | Rate | |
Concentration of risks: | |||
Concentration Risk, Number of Customers | 7 | ||
Concentration Risk, Percentage | 25.00% | ||
BG Group plc [Member] | |||
Concentration of risks: | |||
Concentration Risk, Number of Charters | 2 | ||
Pertamina [Member] | |||
Concentration of risks: | |||
Concentration Risk, Number of Charters | 1 | ||
Concentration Risk, Percentage | 10.00% | 11.00% | 13.00% |
DUSUP [Member] | |||
Concentration of risks: | |||
Concentration Risk, Number of Charters | 1 | ||
Concentration Risk, Percentage | 12.00% | 15.00% | 17.00% |
Petrobas [Member] | |||
Concentration of risks: | |||
Concentration Risk, Number of Charters | 2 | ||
PT Nusantara Regas [Member] | |||
Concentration of risks: | |||
Concentration Risk, Number of Charters | 1 | ||
Eni Spa [Member] | |||
Concentration of risks: | |||
Concentration Risk, Number of Charters | 1 | ||
KNPC [Member] | |||
Concentration of risks: | |||
Concentration Risk, Number of Charters | 1 | ||
Concentration Risk, Percentage | 11.00% | 0.00% | 0.00% |
RELATED_PARTY_TRANSACTIONS_Add
RELATED PARTY TRANSACTIONS - Additional Information (Details) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Oct. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 19, 2011 | Jul. 19, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2012 | Dec. 31, 2014 | Apr. 12, 2011 | Jul. 31, 2012 | Oct. 19, 2011 | Nov. 30, 2012 | Nov. 08, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2014 | Jun. 30, 2015 | Dec. 31, 2014 | Feb. 28, 2015 | Mar. 31, 2015 | Apr. 30, 2015 | ||||||||||||||||||||
USD ($) | USD ($) | USD ($) | Golar LNG Limited [Member] | Golar LNG Limited [Member] | Golar LNG Limited [Member] | High yield bonds [Member] | Golar LNG vendor financing loan Golar Freeze [Member] | Golar LNG vendor financing loan Golar Freeze [Member] | Golar LNG vendor financing loan Golar Freeze [Member] | Golar LNG vendor financing loan Golar Freeze [Member] | Golar LNG vendor financing loan Golar Freeze [Member] | Golar LNG Vendor Financing Loan NR Satu [Member] | Golar LNG Vendor Financing Loan NR Satu [Member] | Golar LNG Vendor Financing Loan NR Satu [Member] | Golar LNG Vendor Financing Loan NR Satu [Member] | Bonds [Member] | Bonds [Member] | Bonds [Member] | Golar Energy [Member] | Golar Energy [Member] | Golar Energy [Member] | Golar Energy [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | NR Satu [Member] | NR Satu [Member] | Golar Grand [Member] | Golar Grand [Member] | Golar Maria and Golar Igloo [Member] | United States of America, Dollars | United States of America, Dollars | Norway, Krone | Norway, Krone | Faraway Maritime Shipping Company [Member] | Scenario, Forecast [Member] | NR Satu related claim [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||||||||||||||||||||
USD ($) | USD ($) | USD ($) | Rate | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Rate | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | High yield bonds [Member] | High yield bonds [Member] | High yield bonds [Member] | High yield bonds [Member] | Revolving Credit Facility [Member] | USD ($) | Rate | Rate | Scenario, Forecast [Member] | ||||||||||||||||||||||||||
Rate | Rate | Rate | USD ($) | USD ($) | NOK | USD ($) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | $2,877,000 | [1] | $2,569,000 | [1] | $2,876,000 | [1] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Costs and Expenses, Related Party | 7,746,000 | [2] | 6,701,000 | [2] | 4,222,000 | [2] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Expense, Related Party | 0 | 2,000,000 | 18,100,000 | 0 | [3] | 0 | [3] | 11,921,000 | [3] | 0 | [4] | 0 | [4] | 4,737,000 | [4] | 0 | [5] | 1,972,000 | [5] | 575,000 | [5] | 0 | [6] | 0 | [6] | 829,000 | [6] | ||||||||||||||||||||||||||||||||
Related Party Transaction, Expenses from Transactions with Related Party | 10,623,000 | 11,242,000 | 25,160,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Payable, Related Parties, Current | -13,337,000 | [7] | -5,989,000 | [7] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease security deposit movements | 0 | 4,257,000 | 3,486,000 | [8] | 4,257,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Debt due to Related Parties, Fixed, Carrying value | -20,000,000 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
High Yield Bonds Related Party | 35,000,000 | [5] | 200,000,000 | [5] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transaction, Due from (to) Related Party | -29,851,000 | -1,732,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Management and administrative services agreement fee percentage | 5.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Required notice for termination of management service agreement | 120 days | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Amount | 222,300,000 | 175,000,000 | 227,000,000 | 1,300,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.49% | 6.75% | 6.75% | 6.75% | 6.75% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balloon Payment | 222,300,000 | 222,300,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Maturity Date | 31-Oct-14 | 31-Jul-15 | 30-Jun-15 | 30-Jun-18 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from Lines of Credit | 155,000,000 | 25,000,000 | 20,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Fair Value of Amount Outstanding | 20,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 20,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 20,000,000 | 20,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest | 60.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 59.00% | 59.00% | 40.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments of Ordinary Dividends, Noncontrolling Interest | -13,740,000 | -10,604,000 | -1,799,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination, Consideration Transferred | 388,000,000 | 176,800,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 50.00% | 100.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Capital Lease Obligation | 90,800,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition Purchase Consideration | 385,000,000 | 265,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Working capital adjustment | 3,000,000 | 2,600,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition financed by Vendor Financing Loans | 155,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition financed by Equity offering proceeds | 230,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indemnification under the Omnibus Agreement | 0 | 3,300,000 | 500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments of Dividends | 61,300,000 | 63,700,000 | 47,300,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vessel Option, Option Exercised Hire Rate Paid | 75.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vessel Option, Option Exercised Hire Rate Paid, Percentage Loss | 25.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Omnibus Agreement deductible | 500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Omnibus Agreement aggregate cap | $5,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Period of indemnification | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[1] | Management and administrative services agreement - On MarchB 30, 2011, we entered into a management and administrative services agreement with Golar Management, a wholly-owned subsidiary of Golar, pursuant to which Golar Management will provide to us certain management and administrative services. The services provided by Golar Management are charged at cost plus a management fee equal to 5% of Golar Managementbs costs and expenses incurred in connection with providing these services. We may terminate the agreement by providing 120 days' written notice. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | Ship management fees - Golar and certain of its affiliates charged ship management fees to us for the provision of technical and commercial management of the vessels. Each of our vessels is subject to management agreements pursuant to which certain commercial and technical management services are provided by certain affiliates of Golar, including Golar Management and Golar Wilhelmsen AS ("Golar Wilhelmsen"), a partnership that is jointly controlled by Golar and by Wilhelmsen Ship Management (Norway) AS. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | Golar LNG vendor financing loan - Golar Freeze - In OctoberB 2011, in connection with the purchase of the Golar Freeze, we entered into a financing loan agreement with Golar for an amount of $222.3 million. The facility was unsecured and bore interest at a fixed rate of 6.75% per annum payable quarterly. The loan was non-amortizing with a final balloon payment of $222.3 million due in October 2014. The loan was repaid in October 2012 using the net proceeds from the bond issuance. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[4] | Golar LNG vendor financing loan - NR Satu - In JulyB 2012, in connection with the purchase of the NR Satu, we entered into a financing loan agreement with Golar for an amount of $175 million. Of this amount, $155 million was drawn down in July 2012. A further $20 million was available for draw down until July 2015. The facility is unsecured and bears interest at a fixed rate of 6.75% per annum payable quarterly. The loan is non-amortizing with a final balloon payment for the amount drawn down due within three years from the date of draw down. The loan was repaid in December 2012 using the proceeds from the NR Satu facility. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[5] | High-yield bonds - In October 2012, we completed the issuance of NOK1,300 million in senior unsecured bonds that mature in October 2017. The aggregate principal amount of the bonds is equivalent to approximately $227 million at the time of issuance. Of this amount, NOK200 million (2012: approximately $35.0 million) was held by Golar until their disposal in November 2013 (see note 21). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[6] | Golar Energy loan - In January 2012, Golar LNG (Singapore) Pte. Ltd. ("Golar Singapore"), the subsidiary which holds the investment in PTGI, drew down $25 million on its loan agreement entered into in December 2011 with Golar LNG Energy Limited ("Golar Energy"). The loan was unsecured, repayable on demand and bore interest at the rate of 6.75% per annum payable on a quarterly basis. In connection with the acquisition of the subsidiaries that own and operate the NR Satu, all amounts payable to Golar Energy by the subsidiaries acquired by us, including Golar Singapore, were extinguished. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[7] | Trading balances - Primarily relate to unpaid fees and expenses for management and administrative services and vessel management services performed by Golar and its affiliates. 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 due to Golar and its affiliates are unsecured, interest-free and intended to be settled in the ordinary course of business. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[8] | Methane Princess Lease security deposit movements - This represents net advances to Golar since the IPO, which correspond with the net release of funds from the security deposits held relating to the Methane Princess Lease. This is in connection with the Methane Princess tax lease indemnity provided by Golar under the Omnibus Agreement (see below). Accordingly, these amounts held with Golar will be settled as part of the eventual termination of the Methane Princess Lease. |
OTHER_COMMITMENTS_AND_CONTINGE2
OTHER COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
tax_lease | ||
Tax Lease Benefits [Line Items] | ||
Loss Contingency, Receivable | $2,000,000 | |
Book value of vessels secured against long-term loans and capital leases | 1,623,423,000 | 1,409,284,000 |
Tax lease benefits: | ||
Number of Equipment Items, Leased | 1 | |
Accrued gain or loss on terminated contracts | 400,000 | |
NR Satu related claim [Member] | ||
Tax Lease Benefits [Line Items] | ||
Liabilities Subject to Compromise | 3,000,000 | |
Loss Contingency, Receivable | 2,500,000 | |
Loss contingency recoverable from related party | 500,000 |
EQUITY_ISSUANCES_Details
EQUITY ISSUANCES (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Jan. 31, 2013 | Nov. 30, 2012 | Jul. 31, 2012 | Apr. 12, 2011 | Dec. 31, 2014 | Jan. 31, 2015 | Dec. 31, 2012 | ||||
Capital Unit [Line Items] | ||||||||||||
Partners' Capital Account, Units, Sold in Public Offering | 5,100,000 | [1] | 4,316,947 | [1] | 5,824,590 | [1] | 7,294,305 | [1] | 13,800,000 | |||
Offering Cost Per Unit | $29.10 | $29.74 | $30.50 | $30.95 | ||||||||
Gross Proceeds From Issuance Of Common Units | $151,439 | [2] | $131,006 | [2] | $181,275 | [2] | $230,366 | [2] | ||||
Net Proceeds From Issuance Of Common Units | $150,342 | $130,244 | $180,105 | $221,746 | ||||||||
Golar Ownership after the Offering | 41.40% | [3] | 50.90% | [3] | 54.10% | [3] | 57.50% | [3] | ||||
Partners' Capital Account, Units, Sold in Private Placement | 416,947 | 1,524,590 | 969,305 | |||||||||
Limited Partners' Capital Account, Golar Units sold in secondary offering | 3,400,000 | |||||||||||
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest | 2.00% | |||||||||||
Limited Partners' Capital Account, Units Outstanding | 45,663,096 | 45,663,096 | ||||||||||
General Partners' Capital Account, Units Outstanding | 1,257,408 | 1,257,408 | ||||||||||
Common Units [Member] | ||||||||||||
Capital Unit [Line Items] | ||||||||||||
Limited Partners' Capital Account, Units Outstanding | 45,663,096 | 45,663,096 | 36,246,149 | |||||||||
Partners' Capital Account, Units, Sale of Units | 5,100,000 | 4,316,947 | ||||||||||
Subordinated Units [Member] | ||||||||||||
Capital Unit [Line Items] | ||||||||||||
Limited Partners' Capital Account, Units Outstanding | 15,949,831 | 15,949,831 | 15,949,831 | |||||||||
Partners' Capital Account, Units, Sale of Units | 0 | 0 | ||||||||||
General Partner Units [Member] | ||||||||||||
Capital Unit [Line Items] | ||||||||||||
General Partners' Capital Account, Units Outstanding | 1,257,408 | 1,257,408 | 1,065,225 | |||||||||
Partners' Capital Account, Units, Sale of Units | 104,082 | 88,101 | ||||||||||
Subsequent Event [Member] | ||||||||||||
Capital Unit [Line Items] | ||||||||||||
Limited Partners' Capital Account, Golar Units sold in secondary offering | 7,170,000 | |||||||||||
[1] | Includes common units issued by us to Golar in a private placement made concurrent to the public offering of 969,305 common units, 1,524,590 common units and 416,947 common units in July 2012, November 2012 and January 2013, respectively. | |||||||||||
[2] | Includes General Partner's 2% proportionate capital contribution. | |||||||||||
[3] | Includes Golar's 2% general partner interest in the Partnership. |
EARNINGS_PER_UNIT_AND_CASH_DIS2
EARNINGS PER UNIT AND CASH DISTRIBUTIONS (Details) (USD $) | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||
Income (Loss) Attributable to Parent | $174,154 | $141,296 | $116,418 | |||
Dropdown Predecessors Interest Net Income Loss | 0 | 0 | -28,015 | |||
Distributions paid | -143,450 | [1] | -127,260 | [1] | -87,072 | [1] |
Undistributed Earnings, Basic | 30,704 | 14,036 | 1,331 | |||
Cash dividends declared and paid (in dollars per share) | $2.14 | $2.05 | [2] | $1.78 | [2] | |
Cash Distributions Declared And Paid Per Unit Relating To Period | $0.56 | $0.52 | $0.50 | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 59.00% | 59.00% | ||||
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest | 2.00% | |||||
Distribution per share | $0.39 | |||||
Minimum per share quarterly on an annualized basis | $1.54 | |||||
Common Units [Member] | ||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||
Undistributed Earnings, Basic | 13,347 | 6,649 | 1,304 | |||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 45,663 | 40,417 | 27,441 | |||
Incentive Distribution Rights [Member] | ||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||
Distributions paid | ($6,300) | [1] | ($4,900) | [1] | $0 | [1] |
Minimum [Member] | ||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||
Distribution per share | $0.39 | |||||
First distribution to minimum distribution point and or any arrearages due [Member] | ||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||
Common unitholders distribution percentage | 98.00% | |||||
General partner interest distribution percentage | 2.00% | |||||
First distribution to minimum distribution point and or any arrearages due [Member] | Minimum [Member] | ||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||
Distribution per share | $0.39 | |||||
Second distribution to minimum distribution point and or any arrearages due [Member] | ||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||
Common unitholders distribution percentage | 98.00% | |||||
General partner interest distribution percentage | 2.00% | |||||
Third distribution to minimum distribution point and or any arrearages due [Member] | ||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||
Common unitholders distribution percentage | 98.00% | |||||
General partner interest distribution percentage | 2.00% | |||||
Third distribution to minimum distribution point and or any arrearages due [Member] | Minimum [Member] | ||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||
Distribution per share | $0.39 | |||||
First distribution of additional available cash from operating surplus [Member] | ||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||
General partner interest distribution percentage | 2.00% | |||||
Distribution percentage to all unit holders | 98.00% | |||||
First distribution of additional available cash from operating surplus [Member] | Minimum [Member] | ||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||
Distribution per share | $0.44 | |||||
Second distribution of additional available cash from operating surplus [Member] | ||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||
General partner interest distribution percentage | 2.00% | |||||
Distribution percentage to holders of Incentive distribution rights | 13.00% | |||||
Distribution percentage to all unit holders | 85.00% | |||||
Second distribution of additional available cash from operating surplus [Member] | Minimum [Member] | ||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||
Distribution per share | $0.48 | |||||
Third distribution of additional available cash from operating surplus [Member] | ||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||
General partner interest distribution percentage | 2.00% | |||||
Distribution percentage to holders of Incentive distribution rights | 23.00% | |||||
Distribution percentage to all unit holders | 75.00% | |||||
Third distribution of additional available cash from operating surplus [Member] | Minimum [Member] | ||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||
Distribution per share | $0.58 | |||||
Thereafter [Member] | ||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||
General partner interest distribution percentage | 2.00% | |||||
Distribution percentage to holders of Incentive distribution rights | 48.00% | |||||
Distribution percentage to all unit holders | 50.00% | |||||
Common Units [Member] | ||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||
Earnings Per Share, Basic and Diluted | $2.47 | $2.31 | $2.08 | |||
[1] | This refers to distributions made or to be made in relation to the period irrespective of the declaration and payment dates and based on the number of units outstanding at the quarter end date. This also includes cash distributions to IDR holders for the years ended December 31, 2014, 2013 and 2012 of $6.3 million, $4.9 million and $nil, respectively. | |||||
[2] | Refers to cash distributions declared and paid during the period. |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||
Dec. 31, 2013 | Jan. 31, 2015 | Dec. 31, 2014 | Apr. 30, 2015 | Feb. 28, 2015 | Dec. 31, 2015 | Mar. 31, 2015 | |
Subsequent events: | |||||||
Limited Partners' Capital Account, Golar Units sold in secondary offering | 3,400,000 | ||||||
Debt, Long-term and Short-term, Combined Amount | $889,471,000 | 1,052,532,000 | |||||
Subsequent Event [Member] | |||||||
Subsequent events: | |||||||
Limited Partners' Capital Account, Golar Units sold in secondary offering | 7,170,000 | ||||||
Share Price | $29.90 | ||||||
Dividends Payable, Amount Per Share | 0.5775 | $0.56 | |||||
Quarterly installment | 3,000,000 | ||||||
Term loan facility [Member] | Subsequent Event [Member] | |||||||
Subsequent events: | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 150,000,000 | ||||||
Revolving Credit Facility [Member] | Subsequent Event [Member] | |||||||
Subsequent events: | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 30,000,000 | ||||||
Golar LNG Limited [Member] | |||||||
Subsequent events: | |||||||
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | 41.00% | ||||||
Golar LNG Limited [Member] | Subsequent Event [Member] | |||||||
Subsequent events: | |||||||
Limited Liability Company (LLC) or Limited Partnership (LP), Members or Limited Partners, Ownership Interest | 30.00% | ||||||
Scenario, Forecast [Member] | Subsequent Event [Member] | |||||||
Subsequent events: | |||||||
Debt Instrument, Maturity Date | 30-Jun-18 | ||||||
Golar Maria and Freeze Facility [Member] | |||||||
Subsequent events: | |||||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 60.00% | ||||||
Debt, Long-term and Short-term, Combined Amount | 73,500,000 | ||||||
Golar Maria and Freeze Facility [Member] | Subsequent Event [Member] | |||||||
Subsequent events: | |||||||
Line of Credit Facility, Borrowing Capacity, Minimum Commitment Amount | 120,000,000 | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 180,000,000 | ||||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 60.00% | ||||||
Balloon Payment | 114,000,000 | ||||||
Golar Maria and Freeze Facility [Member] | Term loan facility [Member] | |||||||
Subsequent events: | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 150,000,000 | ||||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 50.00% | ||||||
Golar Maria and Freeze Facility [Member] | Revolving Credit Facility [Member] | |||||||
Subsequent events: | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 30,000,000 | ||||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 10.00% | ||||||
Sponsor credit facility [Member] | |||||||
Subsequent events: | |||||||
Debt, Long-term and Short-term, Combined Amount | $0 | 20,000,000 |
ACQUISITION_AFTER_BALANCE_SHEE2
ACQUISITION AFTER BALANCE SHEET DATE (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 20, 2015 | |||
Business Acquisition [Line Items] | |||||||
Business Acquisition, Percentage of Voting Interests Acquired | 50.00% | ||||||
Debt, Long-term and Short-term, Combined Amount | $1,052,532,000 | $889,471,000 | |||||
Subsequent Event [Member] | Golar Eskimo [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Loans and Leases Receivable, Final Payment Amount, Related Parties | 22,000,000 | ||||||
Business Acquisition, Effective Date of Acquisition | 20-Jan-15 | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||||||
Business Combination, Consideration Transferred | 227,200,000 | [1] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 390,000,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 162,800,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 0 | [2] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | -227,200,000 | ||||||
Goodwill, Period Increase (Decrease) | 0 | ||||||
Golar LNG Vendor Financing Loan [Member] | Subsequent Event [Member] | Golar Eskimo [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 220,000,000 | ||||||
Balloon Payment | $220,000,000 | ||||||
Maturity date | Dec-16 | ||||||
[1] | This includes the purchase consideration for the vessel less the fair value of the assumed bank debt but excludes any working capital adjustments which will be available upon finalization of the results of the Golar Eskimo for the first quarter of 2015. | ||||||
[2] | This information will be available upon finalization of the results of the Golar Eskimo for the first quarter of 2015. |