Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | Golar LNG Partners LP |
Entity Central Index Key | 1,415,916 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 69,768,261 |
Preferred Units, Outstanding | 5,520,000 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2017 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Operating revenues | ||||
Time charter revenues | $ 415,679 | $ 413,230 | $ 393,132 | |
Time charter revenues from related parties | 17,423 | 28,368 | 41,555 | |
Total operating revenues | 433,102 | 441,598 | 434,687 | |
Operating expenses | ||||
Vessel operating expenses | (68,278) | (59,886) | (65,244) | |
Voyage and commission expenses | (9,694) | (5,974) | (7,724) | |
Administrative expenses | (15,210) | (8,600) | (6,643) | |
Depreciation and amortization | (103,810) | (100,468) | (99,256) | |
Total operating expenses | (196,992) | (174,928) | (178,867) | |
Operating income | 236,110 | 266,670 | 255,820 | |
Other non-operating income | 922 | 1,318 | 0 | |
Financial income (expense) | ||||
Interest income | 7,804 | 4,295 | 1,315 | |
Interest expense | (75,425) | (66,938) | (61,632) | |
Other financial items, net | (7,567) | (2,745) | (17,151) | |
Net financial expenses | (75,188) | (65,388) | (77,468) | |
Income before income taxes | 161,844 | 202,600 | 178,352 | |
Income taxes | (16,996) | (16,858) | (5,669) | |
Net income | 144,848 | 185,742 | 172,683 | |
Net income attributable to non-controlling interests | (15,568) | (13,571) | (10,547) | |
Net income attributable to Golar LNG Partners LP Owners | 129,280 | 172,171 | 162,136 | |
General Partner’s interest in net income | [1] | 2,544 | 23,135 | 18,469 |
Unitholders’ interest in net income | 124,656 | 139,948 | 106,476 | |
Subordinated Units | ||||
Financial income (expense) | ||||
Net income | 0 | 9,088 | 37,191 | |
Preferred Units | ||||
Financial income (expense) | ||||
Unitholders’ interest in net income | 2,080 | 0 | 0 | |
Common Units | ||||
Financial income (expense) | ||||
Unitholders’ interest in net income | $ 124,656 | $ 139,948 | $ 106,476 | |
Common Units | ||||
Earnings per unit: | ||||
Basic - Common units (in dollars per share) | $ 1.82 | $ 2.44 | $ 2.38 | |
Diluted - Common units (in dollars per share) | 1.80 | 2.43 | 2.38 | |
Cash distributions declared and paid per unit in the period (in dollars per share) | $ 2.31 | $ 2.31 | $ 2.295 | |
[1] | This includes net income attributable to IDR holders of $nil, $19.7 million and $15.2 million for the years ended December 31, 2017, 2016 and 2015, respectively. |
CONSOLIDATED STATEMENTS OF OPE3
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Net income attributable to IDR holders | $ 0 | $ 19.7 | $ 15.2 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 144,848 | $ 185,742 | $ 172,683 | |
Unrealized net gain/(loss) on qualifying cash flow hedging instruments: | ||||
Other comprehensive income (loss) before reclassification | [1] | 94 | 4,263 | (5,106) |
Amounts reclassified from accumulated other comprehensive income/(loss) to the statement of operations | 4,985 | 409 | (2,533) | |
Net other comprehensive income/(loss) | 5,079 | 4,672 | (7,639) | |
Comprehensive income | 149,927 | 190,414 | 165,044 | |
Comprehensive income attributable to: | ||||
Golar LNG Partners LP Owners | 134,359 | 176,843 | 154,497 | |
Non-controlling interests | (15,568) | (13,571) | (10,547) | |
Comprehensive income | $ 149,927 | $ 190,414 | $ 165,044 | |
[1] | There is no tax impact on any of the periods presented. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 246,954 | $ 65,710 |
Restricted cash and short-term deposits | 27,306 | 44,927 |
Trade accounts receivable | 18,255 | 20,444 |
Amounts due from related parties | 7,625 | 23,914 |
Inventories | 3,506 | 1,110 |
Other current assets | 7,850 | 4,822 |
Total current assets | 311,496 | 160,927 |
Non-current assets | ||
Restricted cash | 155,627 | 117,488 |
Vessels and equipment, net | 1,588,923 | 1,652,710 |
Vessel under capital lease, net | 105,945 | 111,186 |
Intangible assets, net | 73,206 | 86,133 |
Amounts due from related parties | 177,247 | 107,247 |
Other non-current assets | 14,927 | 17,017 |
Total assets | 2,427,371 | 2,252,708 |
Current liabilities | ||
Current portion of long-term debt | 118,850 | 78,101 |
Current portion of obligations under capital lease | 1,276 | 787 |
Trade accounts payable | 4,780 | 2,110 |
Accrued expenses | 32,240 | 17,438 |
Other current liabilities | 22,941 | 117,036 |
Total current liabilities | 180,087 | 215,472 |
Non-current liabilities | ||
Long-term debt | 1,252,184 | 1,296,609 |
Obligations under capital lease | 126,805 | 116,964 |
Other non-current liabilities | 20,694 | 19,234 |
Total liabilities | 1,579,770 | 1,648,279 |
Commitments and contingencies | ||
Partners’ capital: | ||
Common unitholders: 69,768,261 units issued and outstanding at December 31, 2017 (2016: 64,073,291) | 585,440 | 490,564 |
Preferred unitholders: 5,520,000 preferred units issued and outstanding at December 31, 2017 | 132,991 | 0 |
General partner interest: 1,423,843 units issued and outstanding at December 31, 2017 (2016: 1,318,517) | 52,600 | 50,942 |
Total partners’ capital | 771,031 | 541,506 |
Accumulated other comprehensive income/(loss) | 26 | (5,053) |
Total before non-controlling interests | 771,057 | 536,453 |
Non-controlling interests | 76,544 | 67,976 |
Total equity | 847,601 | 604,429 |
Total liabilities and equity | $ 2,427,371 | $ 2,252,708 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common unit, issued | 69,768,261 | 64,073,291 |
Common units, outstanding | 69,768,261 | 64,073,291 |
Preferred units, issued | 5,520,000 | |
Preferred units, outstanding | 5,520,000 | |
General Partners Units, issued | 1,423,843 | 1,318,517 |
General Partners Units, outstanding | 1,423,843 | 1,318,517 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Operating activities | ||||
Net income | $ 144,848 | $ 185,742 | $ 172,683 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 103,810 | 100,468 | 99,256 | |
Recognition of foreign tax losses | 0 | 0 | (4,945) | |
Utilization of deferred tax asset | 5,086 | 5,308 | 4,076 | |
Movement in deferred tax liability | 2,085 | 2,064 | 0 | |
Amortization of deferred charges | 5,969 | 8,412 | 6,308 | |
Unrealized foreign exchange loss/(gains) | 3,657 | (532) | (493) | |
Unit options expense | 238 | 23 | 0 | |
Drydocking expenditure | (20,660) | (4,060) | (15,093) | |
Realized loss on bond repurchase | 6,327 | 0 | 0 | |
Interest element included in obligation under capital lease | 534 | (1,205) | 279 | |
Change in assets and liabilities, net of effects from purchase of subsidiaries: | ||||
Trade accounts receivable | 2,189 | 1,126 | (11,704) | |
Inventories | 458 | 230 | (642) | |
Other current assets and non-current assets | (2,240) | (5,305) | 3,188 | |
Amounts due to/(from) related parties | 17,856 | (17,512) | (18,071) | |
Trade accounts payable | 1,417 | (1,700) | 902 | |
Accrued expenses | 9,889 | (4,746) | (4,578) | |
Restricted cash | (5) | (129) | (7,686) | |
Other current liabilities | (10,455) | (6,952) | (11,250) | |
Net cash provided by operating activities | 271,003 | 261,232 | 212,230 | |
Investing activities | ||||
Additions to vessels and equipment | (426) | 0 | (3,667) | |
Acquisition of Golar Eskimo and Golar Igloo, net of cash acquired | [1] | 0 | 0 | (5,971) |
Deposits made in connection with acquisitions from Golar | (70,000) | (107,247) | 0 | |
Short-term debt granted to related parties | 0 | 0 | (50,000) | |
Repayment of short-term debt granted to related parties | 0 | 0 | 50,000 | |
Restricted cash | 0 | 0 | 10,372 | |
Net cash (used in)/provided by investing activities | (70,426) | (107,247) | 734 | |
Financing activities | ||||
Proceeds from long-term debt | 375,000 | 815,000 | 644,070 | |
Repayments of long-term debt (including related parties) | (228,816) | (770,422) | (707,202) | |
Repurchase of high yield bonds and related swaps | (234,197) | 0 | 0 | |
Repayments of obligation under capital lease | (821) | (122) | 0 | |
Financing arrangement fees and other costs | (5,377) | (13,521) | (6,628) | |
Proceeds from issuances of equity, net of issue costs | 255,040 | 0 | 0 | |
Common units repurchased and canceled | 0 | (495) | (5,970) | |
Restricted cash | (12,102) | 7,627 | (31,248) | |
Cash distributions paid | (161,060) | (154,668) | (152,898) | |
Dividends paid to non-controlling interests | (7,000) | (12,360) | (11,400) | |
Net cash used in financing activities | (19,333) | (128,961) | (271,276) | |
Net increase/(decrease) in cash and cash equivalents | 181,244 | 25,024 | (58,312) | |
Cash and cash equivalents at beginning of year | 65,710 | 40,686 | 98,998 | |
Cash and cash equivalents at end of year | 246,954 | 65,710 | 40,686 | |
Cash paid during the year for: | ||||
Interest paid | 62,670 | 58,005 | 52,814 | |
Income taxes paid | $ 4,470 | $ 5,278 | 5,124 | |
Noncash or part noncash acquisition, debt assumed | $ 162,800 | |||
[1] | In addition to the cash consideration paid for the acquisition of the Golar Eskimo in 2015, there was non-cash consideration in relation to the assumption of bank debt of $162.8 million. |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - USD ($) $ in Thousands | Total | Accumulated Other Comprehensive Income/ (loss) | Total before Non-controlling interest | Non-controlling Interest | General Partner Units and IDRs | [1] | Common Units | Common UnitsTotal before Non-controlling interest | Common UnitsLimited Partner | Subordinated Units | Subordinated UnitsLimited Partner | Preferred Units | Preferred UnitsTotal before Non-controlling interest | Preferred UnitsLimited Partner | |
Balance at beginning of the period at Dec. 31, 2014 | $ 601,739 | $ (2,086) | $ 534,121 | $ 67,618 | $ 33,320 | $ 490,824 | $ 12,063 | ||||||||
Increase (Decrease) in Partners' Capital | |||||||||||||||
Net income | 172,683 | 162,136 | 10,547 | 18,469 | 106,476 | $ 37,191 | 37,191 | ||||||||
Cash distributions | [2] | (152,898) | (152,898) | (11,496) | (104,797) | (36,605) | |||||||||
Non-controlling interest dividends | (11,400) | (11,400) | |||||||||||||
Other comprehensive income (loss) | (7,639) | (7,639) | (7,639) | ||||||||||||
Common units repurchased and canceled | (5,970) | (5,970) | (5,970) | ||||||||||||
Balance at end of the period at Dec. 31, 2015 | 596,515 | (9,725) | 529,750 | 66,765 | 40,293 | 486,533 | 12,649 | ||||||||
Increase (Decrease) in Partners' Capital | |||||||||||||||
Net income | 185,742 | 172,171 | 13,571 | 23,135 | 139,948 | 9,088 | 9,088 | ||||||||
Cash distributions | [2] | (154,668) | (154,668) | (11,846) | (124,400) | (18,422) | |||||||||
Non-controlling interest dividends | (12,360) | (12,360) | |||||||||||||
Other comprehensive income (loss) | 4,672 | 4,672 | 4,672 | ||||||||||||
Common units repurchased and canceled | (495) | (495) | (495) | ||||||||||||
Conversion of subordinated units | 3,315 | (3,315) | |||||||||||||
Grant of unit options | 23 | 23 | 23 | ||||||||||||
Exchange of IDRs (see note 28) | (15,000) | (15,000) | (640) | (14,360) | |||||||||||
Balance at end of the period at Dec. 31, 2016 | 604,429 | (5,053) | 536,453 | 67,976 | 50,942 | 490,564 | |||||||||
Increase (Decrease) in Partners' Capital | |||||||||||||||
Net income | 144,848 | 129,280 | 15,568 | 2,544 | 124,656 | $ 0 | $ 2,080 | ||||||||
Cash distributions | [2] | (163,141) | (163,141) | (3,221) | (157,840) | (2,080) | |||||||||
Non-controlling interest dividends | (7,000) | (7,000) | |||||||||||||
Other comprehensive income (loss) | 5,079 | 5,079 | 5,079 | ||||||||||||
Net proceeds from issuance of common units | 2,214 | $ 122,116 | $ 122,116 | 119,902 | $ 132,991 | $ 132,991 | 132,991 | ||||||||
Conversion of earn-out units | 8,041 | 8,041 | 121 | 7,920 | |||||||||||
Grant of unit options | 238 | 238 | 238 | ||||||||||||
Balance at end of the period at Dec. 31, 2017 | $ 847,601 | $ 26 | $ 771,057 | $ 76,544 | $ 52,600 | $ 585,440 | $ 0 | $ 132,991 | |||||||
[1] | As of December 31, 2017, the carrying value of the equity attributable to the IDR holders was $32.5 million (2016: $32.5 million) | ||||||||||||||
[2] | This includes cash distributions to IDR holders for the years ended December 31, 2017, 2016 and 2015 of $nil, $8.8 million and $8.7 million, respectively. In addition it includes accrued distributions to Series A Preferred Unitholders for the period from issuance (October 31, 2017) to December 31, 2017. |
CONSOLIDATED STATEMENTS OF CHA9
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Cash distributions to IDR holders | [1] | $ 163,141 | $ 154,668 | $ 152,898 |
Carrying value of equity attributable to the IDR holders | 847,601 | 604,429 | 596,515 | |
General Partner Units and IDRs | ||||
Cash distributions to IDR holders | [1],[2] | 3,221 | 11,846 | 11,496 |
Carrying value of equity attributable to the IDR holders | [2] | 52,600 | 50,942 | 40,293 |
Incentive Distribution Rights | ||||
Cash distributions to IDR holders | 0 | 8,800 | $ 8,700 | |
Incentive Distribution Rights | General Partner Units and IDRs | ||||
Carrying value of equity attributable to the IDR holders | $ 32,500 | $ 32,500 | ||
[1] | This includes cash distributions to IDR holders for the years ended December 31, 2017, 2016 and 2015 of $nil, $8.8 million and $8.7 million, respectively. In addition it includes accrued distributions to Series A Preferred Unitholders for the period from issuance (October 31, 2017) to December 31, 2017. | |||
[2] | As of December 31, 2017, the carrying value of the equity attributable to the IDR holders was $32.5 million (2016: $32.5 million) |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | GENERAL Golar LNG Partners LP (the “Partnership”, “we”, “our”, or “us”) was initially 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. References to Golar in these consolidated financial statements refer, depending on the context to Golar LNG Limited and to one or any more of its direct or indirect subsidiaries. We completed our initial public offering (“IPO”) in April 2011. Our common units are traded on the NASDAQ under the symbol: GMLP. As of December 31, 2017 and 2016, Golar held 30.4% and 32.5% of our common units, respectively. In addition, as of December 31, 2017 and 2016, Golar held a 2% general partner interest in us and 100% of our incentive distributions rights (“IDRs”). As of December 31, 2017 and 2016, we operated a fleet of six FSRUs and four LNG carriers. Our contracted vessels operate under charters with expiration dates between 2018 and 2025. |
BASIS OF PREPARATION AND SUMMAR
BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of preparation These consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. Principles of consolidation 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 financial statements include the financial statements of the entities listed in notes 4 and 5. 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”. Foreign currencies We 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. 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. In consolidating VIEs, on a quarterly basis, we must make assumptions regarding the debt amortization profile and the interest rate to be applied against the VIEs’ debt principal. Our estimates are therefore dependent upon the timeliness of receipt and accuracy of financial information provided by these lessor VIE entities. Upon receipt of the audited annual financial statements of VIEs, we will make a true-up adjustment for any material differences. In assessing the recoverability of our vessels’ carrying amounts, we make assumptions regarding estimated future cash flows, estimates in respect of residual or scrap value, charter rates, ship operating expenses, utilization and drydocking requirements. Summary of significant accounting policies Business combinations 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. Identifiable assets acquired and liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The results of subsidiary undertakings are included from the date of acquisition. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, we will recognize a measurement-period adjustment during the period in which we determine the amount of the adjustment, including the effect on earnings of any amounts we would have recorded in previous periods if the accounting had been completed at the acquisition date. Revenue and expense recognition Revenues include minimum lease payments under time charters, fees for repositioning vessels. Revenues generated from time charters, which we classify as operating leases, are recorded over the term of the charter as service is provided. However, we do not recognize revenue if a charter has not been contractually committed to by a customer and ourselves, even if the vessel has discharged its cargo and is sailing to the anticipated load port on its next voyage. Repositioning fees (included in time and voyage charter revenues) 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. Reimbursement for drydocking costs is recognized evenly over the period to the next drydocking, which is generally 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 Statements of Operations. Comprehensive Income As of December 31, 2017 , 2016 and 2015 , our accumulated other comprehensive loss relates to unrealized net losses on qualifying cash flow hedges. (in thousands of $) 2017 2016 2015 Unrealized net loss on qualifying cash flow hedging instruments 26 (5,053 ) (9,725 ) 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 deposits Restricted cash and short-term deposits 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 and cash held by VIE. We consider all short-term deposits as held to maturity. These deposits are carried at amortized cost. We place our short-term deposits primarily in fixed term deposits with high credit quality financial institutions. Trade accounts receivable 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 allowance for doubtful accounts. Inventories Inventories, which are comprised principally of fuel, lubricating oils and vessel 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 aluminum times the weight of the vessel noted in lightweight tons. Residual values are periodically reviewed and revised to recognize changes in conditions, new regulations or other reasons. The 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 every 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 (excluding converted FSRUs) 40 years Vessels - Converted FSRUs 20 years from conversion date Drydocking expenditure 5 years Mooring equipment 11 years Vessel under capital lease We lease one vessel under an agreement that has been accounted for as a capital lease. Obligations under capital lease are 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 22). 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. 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, an impairment loss shall be measured as the amount by which the carrying amount of a long-lived asset (asset group) exceeds its fair value. Deferred charges Costs associated with long-term financing, including debt arrangement fees, are deferred and amortized over the term of the relevant loan under the effective interest method. Amortization of debt issuance cost is included in interest expenses. These costs are presented as a deduction from the corresponding liability, consistent with debt discounts. Provisions In the ordinary course of business, we are subject to various claims, suits and complaints. Management, in consultation with internal and external advisers, will provide for a contingent loss in the financial statements if the contingency 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. 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 fair value 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. 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 swaps (including our cross currency 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. Unit-based compensation In accordance with the guidance on “Share Based Payment”, we are required to expense the fair value of unit options issued to employees over the period the options vest. We amortize unit-based compensation for awards on a straight-line basis over the period during which the employee is required to provide service in exchange for the reward - the requisite service (vesting) period. No compensation cost is recognized for unit options for which employees do not render the requisite service. The fair value of employee unit options is estimated using the Black-Scholes option-pricing model. 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. |
RECENTLY ISSUED ACCOUNTING STAN
RECENTLY ISSUED ACCOUNTING STANDARDS | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENTLY ISSUED ACCOUNTING STANDARDS | RECENTLY ISSUED ACCOUNTING STANDARDS Accounting pronouncements that have been issued but not adopted In May 2014, the Financial Accounting Standards Board (the “FASB”) issued accounting standards update (“ASU”) 2014-09 “ Revenue from Contracts With Customers (Topic 606) ” and subsequent amendments. The standard provides a single, comprehensive revenue recognition model and requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance is effective on either a full or modified retrospective basis for us on January 1, 2018. There will be no impact on the adoption of this standard on our Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02 “ Leases (Topic 842) ” and subsequent amendments. The standard requires a lessee to recognize right-of-use assets and lease liabilities on its balance sheet for all leases with terms longer than 12 months and introduces additional disclosure requirements. Lessors are required to classify leases as sales-type, finance or operating, with classification affecting the pattern of income recognition and provides guidance for sale and leaseback transactions. Classification for both lessees and lessors will be based on an assessment of whether risks and rewards as well as substantive control have been transferred through a lease contract. The standard will become effective on a modified retrospective basis for us on January 1, 2019. We are evaluating the impact of this standard on our Consolidated Financial Statements and related disclosures. Due to the transition provisions for lessors, the most significant impact of the adoption of this standard will be the recognition of lease assets and lease liabilities on our balance sheet for those leases where we are a lessee that are currently classified as operating leases. In June 2016, the FASB issued ASU 2016-13 “ Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ” which requires recognition and measurement of expected credit losses for financial assets and off balance sheet credit exposures. The guidance is effective on a modified retrospective basis for us on January 1, 2020 with early adoption permitted. We are evaluating the impact of this standard on our Consolidated Financial Statements and related disclosures. In August 2016, the FASB issued ASU 2016-15 “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments ”, which among other things, provides guidance on two acceptable approaches of classifying distributions received from equity method investees in the statement of cash flows. The guidance is effective on a retrospective basis for us on January 1, 2018 and results in presentational changes to our Consolidated Statement of Cash Flows. In November 2016, the FASB issued ASU 2016-18 “ Statement of Cash Flows (Topic 230): Restricted Cash ”, which requires that restricted cash be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts presented on the statement of cash flows. The guidance is effective on a retrospective basis for us on January 1, 2018 and results in presentational changes to our Consolidated Statement of Cash Flows and related disclosures. In January 2017, the FASB issued ASU 2017-01 “ Business Combinations (Topic 805): Clarifying the Definition of a Business ” which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance is effective on a prospective basis for us on January 1, 2018. As a result, this increases the likelihood that future vessel dropdowns may be considered the acquisition of an asset rather than a business combination. However, this will be dependent upon the facts and circumstances of each prospective transaction. We do not expect material impact on the adoption of this guidance on our Consolidated Financial Statements and disclosures for prospective dropdowns will be significantly reduced. |
SUBSIDIARIES
SUBSIDIARIES | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUBSIDIARIES | SUBSIDIARIES The following table lists our significant subsidiaries and their purpose as of December 31, 2017 . Unless otherwise indicated, we own 100% of each subsidiary. Name Jurisdiction of Incorporation Purpose 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 Golar Servicos de Operacao de Embaracaoes Limited Brazil Management Company Golar Winter Corporation Marshall Islands Owns Golar Winter Golar Winter UK Ltd United Kingdom Operates Golar Winter Golar Spirit Corporation Marshall Islands Owns Golar Spirit Golar Spirit UK Ltd United Kingdom Operates Golar Spirit Faraway Maritime Shipping Company (60% ownership) Republic of Liberia Owns and operates Golar Mazo Golar LNG 2215 Corporation Marshall Islands Leases Methane Princess Golar 2215 UK Ltd United Kingdom Operates Methane Princess Golar Freeze Holding Corporation Marshall Islands Owns Golar Freeze Golar Freeze UK Ltd United Kingdom Operates Golar Freeze 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 Grand Corporation Marshall Islands Owns and operates Golar Grand Golar LNG 2234 LLC Republic of Liberia Owns and operates Golar Maria Golar Hull M2031 Corporation Marshall Islands Owns and operates Golar Igloo Golar Eskimo Corporation** Marshall Islands Leases and operates Golar Eskimo __________________________________________ * 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. ** The above table excludes Eskimo SPV, from which we leased one of our vessels, the Golar Eskimo , under a sale and leaseback. See note 5. |
VARIABLE INTEREST ENTITIES ("VI
VARIABLE INTEREST ENTITIES ("VIEs") | 12 Months Ended |
Dec. 31, 2017 | |
VARIABLE INTEREST ENTITIES [Abstract] | |
VARIABLE INTEREST ENTITIES (VIEs) | VARIABLE INTEREST ENTITIES (“VIEs”) Eskimo SPV As of December 31, 2017 and 2016, we leased one vessel from a VIE under a finance lease with a wholly-owned subsidiary, Sea 23 Leasing Co. Limited (“Eskimo SPV”) of China Merchants Bank Leasing (“CMBL”). Eskimo SPV is a special purpose vehicle (SPV). In November 2015 we sold the Golar Eskimo to Eskimo SPV and subsequently leased back the vessel under a bareboat charter for a term of ten years. From the third year anniversary of the commencement of the bareboat charter, we have an annual option to repurchase the vessel at fixed pre-determined amounts, with an obligation to repurchase the vessel at the end of the ten year lease period. While we do not hold any equity investment in Eskimo SPV, we have determined that we have a variable interest in Eskimo SPV and that Eskimo SPV is a VIE. Based on our evaluation of the bareboat agreement we have concluded that we are the primary beneficiary of Eskimo SPV and, accordingly, have consolidated Eskimo SPV into our financial results. We did not record any gain or loss from the sale of the Golar Eskimo to Eskimo SPV, and we continued to report the vessel in our consolidated financial statements at the same carrying value, as if the sale had not occurred. The equity attributable to CMBL in Eskimo SPV is included in non-controlling interests in our consolidated results. As of December 31, 2017 and 2016, the Golar Eskimo is reported under “Vessels and equipment, net” in our consolidated balance sheet. The following table gives a summary of the sale and leaseback arrangement, including repurchase options and obligation as of December 31, 2017 : Vessel Effective from Sales value (in $ millions) First repurchase option (in $ millions) Month of first repurchase option Repurchase obligation at end of lease term (in $ millions) End of lease term Golar Eskimo November 2015 285.0 225.8 November 2018 128.3 November 2025 A summary of our payment obligations under the bareboat charter with Eskimo SPV as of December 31, 2017 is shown below: (in $ thousands) 2018 2019 2020 2021 2022 After 2022 Golar Eskimo* 25,930 25,798 25,026 23,919 22,789 58,826 *The payment obligation table above includes variable rental payments due under the lease based on an assumed LIBOR plus margin but excludes the repurchase obligation at the end of lease term. The most significant impact of consolidation of Eskimo SPV’s assets and liabilities on our consolidated balance sheet is as follows: (in $ thousands) 2017 2016 Liabilities Long-term debt (refer to note 20) 212,084 232,931 The most significant impact of consolidation of Eskimo SPV’s operations on our consolidated statement of operations is interest expense of $8.2 million and $8.0 million for the years ended December 31, 2017 and 2016 , respectively. The most significant impact of consolidation of Eskimo SPV’s cash flows on our consolidated statement of cash flows is net cash of $20.8 million and $21.1 million used in financing activities for the years ended December 31, 2017 and 2016 , respectively. Tundra Corp In May 2016, we acquired from Golar all of the shares of Tundra Corp. (“Tundra Corp”), the disponent owner and operator of the FSRU, the Golar Tundra , for a purchase price of $330.0 million less assumed net lease obligations and net of working capital adjustments (the “Tundra Acquisition”). Concurrent with the closing of the Tundra Acquisition, we entered into the Tundra Letter Agreement pursuant to which Golar agreed to pay us a daily fee plus operating expenses, from the closing date until the date that operations commence under the vessel’s charter with West African Gas Limited (“WAGL”). In return we agreed to pay to Golar any hire or other contract-related payments actually received with respect to the vessel. The Tundra Letter Agreement also provided that in the event the Golar Tundra had not commenced service under the charter by May 23, 2017, we had the option (the “Tundra Put Right”) to require Golar to repurchase Tundra Corp at a price equal to the original purchase price (the “Purchase Price”). Accordingly, we determined that (i) Tundra Corp is a VIE and (ii) Golar is and has been the primary beneficiary of Tundra Corp. Thus, Tundra Corp was not consolidated into our financial statements. The Golar Tundra was expected to commence operations in the second quarter of 2016. However, due to delays in the LNG project that the Golar Tundra was to serve, this did not occur. On May 30, 2017, we exercised the Tundra Put Right to require Golar to repurchase Tundra Corp at a price equal to the original purchase price in the Tundra Acquisition. The closing of the Tundra Put Right occurred on October 17, 2017. PTGI We consolidate 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 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, 2017 and 2016 : (in thousands of $) 2017 2016 ASSETS Cash 16,016 14,124 Restricted cash (see note 16) 10,270 10,361 Vessels and equipment, net* 269,624 290,638 Other assets 4,348 12,121 Total assets 300,258 327,244 LIABILITIES AND EQUITY Accrued liabilities 11,675 9,989 Current portion of long-term debt 19,759 13,633 Amounts due to related parties 107,838 135,809 Non-current debt 82,741 102,500 Other liabilities 515 68 Total liabilities 222,528 261,999 Total equity 77,730 65,245 Total liabilities and equity 300,258 327,244 *PTGI recorded the NR Satu at the acquisition price when it purchased the vessel from a Golar related party entity. However, as of the date of the acquisition of the subsidiaries which own and operate the NR Satu , the acquisition was deemed to be a reorganization of entities under common control, and accordingly, 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. PTGI paid dividends to PT Pesona amounting to $1.2 million , $6.1 million and $ nil during the years ended December 31, 2017 , 2016 and 2015 , respectively. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION A segment is a distinguishable component of the business that is engaged in business activities from which we earn revenues and incur expenses whose operating results are regularly reviewed by the chief operating decision maker, and which are subject to risks and rewards that are different from those of other segments. In prior years, we reported that we operated in one reportable segment, “LNG Market”; however, based on our maturity (following expiration of a number of long-term charters) in tandem with management’s strategic objectives, and changes in our methods of internal reporting and management structure, management has concluded that we provide two distinct services and operate in the following two reportable segments: LNG carriers and FSRUs. • LNG carriers are vessels that transport LNG and are compatible with many LNG loading and receiving terminals globally. Four of our vessels are LNG carriers; and • FSRUs are vessels that are permanently located offshore to regasify LNG. Six of our vessels are FSRUs. The split of the organization of our business into two reportable segments is based on differences in our current management structure and reporting, economic characteristics, customer base, asset class and contract structure. Segment results are evaluated based on operating income. There are no transactions between reportable segments. The accounting principles for the segments are the same as for our consolidated financial statements. As a result of the change to two reportable segments, the segment information for the years ended December 31, 2016 and 2015 have been retrospectively restated. 2017 2016 2015 (in thousands of $) FSRU LNG Carrier Unallocated/ Elimination (1) Total FSRU LNG Carrier Unallocated/ Elimination (1) Total FSRU LNG Carrier Unallocated/ Elimination (1) Total Statement of operations: Operating revenues 316,599 116,503 — 433,102 322,373 119,225 — 441,598 307,344 127,343 — 434,687 Depreciation and amortization (80,762 ) (23,048 ) — (103,810 ) (78,025 ) (22,443 ) — (100,468 ) (77,036 ) (22,220 ) — (99,256 ) Other operating expenses (2) (66,364 ) (26,818 ) — (93,182 ) (54,706 ) (19,754 ) — (74,460 ) (54,481 ) (25,130 ) — (79,611 ) Operating income 169,473 66,637 — 236,110 189,642 77,028 — 266,670 175,827 79,993 — 255,820 Other non-operating income 922 — — 922 1,318 — — 1,318 — — — — Balance sheet: Total assets (3) 1,149,595 545,225 732,551 2,427,371 1,206,186 557,682 488,840 2,252,708 1,271,650 575,725 384,287 2,231,662 Capital expenditure (4) 11,226 11,215 — 22,441 344 5,026 — 5,370 309,225 2,043 — 311,268 (1) Relates to items not allocated to a segment, but included for reconciliation purposes; and eliminations required for consolidation purposes. (2) Includes direct general and administrative expenses and indirect general and administrative expenses (allocated to each segment based on the number of vessels). (3) Total assets by segment refers to our principal asset being that of our vessels. (4) The capital expenditure for the FSRU segment in the year ended December 31, 2015 includes the fair value of the FSRU, the Golar Eskimo, acquired as part of a business combination (see Note 10). Revenues from external customers During 2017 , our fleet operated under time charters with ten charterers, including, among others, Petrobras, PT Nusantara Regas (“PTNR”), the Hashemite Kingdom of Jordan (“Jordan”), Kuwait National Petroleum Company (“KNPC”) and Dubai Supply Authority (“DUSUP”). Petrobras is a Brazilian energy company. 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. Pertamina is the state-owned oil and gas company of Indonesia. KNPC is a subsidiary of Kuwait Petroleum Corporation, the state-owned oil and gas company of Kuwait. DUSUP is a government entity which is the sole supplier of natural gas to the Emirates. In the years ended December 31, 2017 , 2016 and 2015 , revenues from each of the following customers (included in the FSRU segment) accounted for over 10% of our consolidated revenues: (in thousands of $) 2017 2016 2015 Petrobras 94,588 22 % 103,368 23 % 100,052 23 % PTNR 72,495 17 % 67,774 15 % 67,325 15 % Jordan 57,144 13 % 57,112 13 % 37,750 9 % KNPC 47,645 11 % 47,654 11 % 47,402 11 % DUSUP 44,726 10 % 46,465 11 % 41,970 10 % Geographical segment data The following geographical data presents our revenues from customers and fixed assets with respect only to our FSRUs, while 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 (in thousands of $) 2017 2016 2015 Brazil 94,588 103,368 100,052 Indonesia 72,495 67,774 67,325 Jordan 57,144 57,112 37,750 Kuwait 47,645 47,654 47,402 United Arab Emirates 44,726 46,465 41,970 Fixed assets (in thousands of $) 2017 2016 Brazil 223,900 347,366 Jordan 269,846 278,588 Kuwait 259,310 267,055 Indonesia 177,205 191,139 United Arab Emirates 108,776 122,078 |
OTHER FINANCIAL ITEMS, NET
OTHER FINANCIAL ITEMS, NET | 12 Months Ended |
Dec. 31, 2017 | |
OTHER FINANCIAL ITEMS, NET [Abstract] | |
OTHER FINANCIAL ITEMS, NET | OTHER FINANCIAL ITEMS, NET (in thousands of $) 2017 2016 2015 Mark-to-market adjustment for interest rate swap derivatives 12,074 9,893 655 Interest expense on un-designated interest rate swaps (7,554 ) (10,824 ) (14,385 ) Losses on repurchase of 2012 High-Yield Bonds and related cross currency interest rate swap (1) (6,506 ) — — Premium paid on repurchase of 2012 High Yield Bond (2,820 ) — — Financing arrangement fees and other costs (1,283 ) (1,468 ) (1,694 ) Foreign exchange (loss)/gain on capital lease obligations and related restricted cash (659 ) 945 492 Mark-to-market adjustment on Earn-Out Units (2) (441 ) — — Foreign exchange loss on operations (378 ) (1,291 ) (2,235 ) Mark-to-market adjustment for currency swap derivative — — 16 Total (7,567 ) (2,745 ) (17,151 ) (1) This includes foreign exchange loss of $6.2 million arising from the repurchase of our 2012 High-Yield Bonds and the reclassification of a $5.0 million loss from the Accumulated Other Comprehensive Loss upon cessation of hedge accounting for the re l ated cross currency interest rate swap. This is partially offset by the $4.7 million mark to market gain on the cross currency interest rate swaps. (2) This relates to the mark-to-market movement on the Earn-Out Units issued in connection with the IDR reset transaction in October 2016 which were recognized as a derivative liability in our consolidated balance sheet. See notes 23 and 27. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of income tax expense/(credit) are as follows: (in thousands of $) 2017 2016 2015 Current tax expense/(credit): United Kingdom 469 411 (1,098 ) Indonesia 5,584 5,579 3,641 Brazil 1,160 1,350 716 Kuwait 2,144 2,146 2,133 Barbados 468 — — Total current tax expense 9,825 9,486 5,392 Deferred tax expense/(income): Indonesia 5,086 5,304 (869 ) Jordan 2,085 2,068 1,146 Total income tax expense 16,996 16,858 5,669 The income taxes for the years ended December 31, 2017 , 2016 and 2015 differed from the amounts computed by applying the Marshall Islands statutory income tax rate of 0% as follows: (In thousands of $) 2017 2016 2015 Effect of change on uncertain tax positions relating to prior year 685 133 (1,894 ) Effect of recognition of deferred tax asset — — (4,945 ) Effect of taxable income in various countries 16,311 16,725 12,508 Total tax expense 16,996 16,858 5,669 United States Pursuant to the Internal Revenue Code of the United States (the “Code”), U.S. source income from the international operations of vessels 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 either satisfy certain public trading requirements or 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 $0.5 million and $0.4 million and credit of $1.1 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, relate 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 certain of our vessels. The statutory rate in the United Kingdom as of December 31, 2017 was 19% . Brazil Current taxation charges of $1.2 million , $1.4 million and $0.7 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, refer to taxation levied on the operations of our Brazilian subsidiary. Indonesia Current taxation charges of $5.6 million , $5.6 million and $3.6 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, refer to taxation levied on the operations of our Indonesian subsidiary. The statutory rate in Indonesia as of December 31, 2017 was 25% . We record deferred income taxes to reflect the movement in the historical net operating losses. The deferred tax asset relating to these losses has been utilized during 2017, resulting in a closing deferred tax asset balance of $nil as of December 31, 2017. Kuwait Current taxation charges of $2.1 million , for each of the years ended December 31, 2017 , 2016 and 2015 , 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. The statutory rate in Kuwait as of December 31, 2017 was 15% . Jordan Deferred tax relates to tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. The net deferred tax expense for the year ended December 31, 2017 is principally related to differences in depreciation and net operating losses. We recorded a deferred tax asset of $0.2 million in relation to net operating losses and a deferred tax liability of $5.5 million relating to differences in depreciation resulting in a net deferred tax liability of $5.3 million in the year ended December 31, 2017. Barbados Current tax charge of $0.5 million for the year ended December 31, 2017 refer to taxation charges levied on the operations of our Barbados branches. Other jurisdictions No tax has been levied on income derived from our subsidiaries registered in the Marshall Islands, Liberia and the British Virgin Islands. Jurisdictions open to examination The following table summarizes the earliest tax year that remain subject to examination by the major taxable jurisdictions in which we operate: Jurisdiction Earliest UK 2015 Brazil 2012 Indonesia 2016 Kuwait 2017 Jordan 2015 Barbados 2017 Interest and penalties charged to “Income taxes” in our statement of operations amounted to $0.6 million , $1.1 million and $ nil for the years ended December 31, 2017 , 2016 and 2015 respectively. Deferred taxes 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. Deferred taxes are classified as follows: Indonesia (in thousands of $) 2017 2016 Deferred tax asset — 5,086 Jordan (in thousands of $) 2017 2016 Deferred tax asset 250 534 Deferred tax liability (5,545 ) (3,744 ) Net deferred tax liability (5,295 ) (3,210 ) As of December 31, 2017 , the total deferred tax asset of $0.2 million related to net operating loss (“NOL”) carryforwards generated from our Jordan operations which amounted to $5.0 million . These can be used to offset future taxable income which will expire in 2020 if not utilized. As of December 31, 2017 , a deferred tax liability of $5.5 million was recognized in respect of the tax depreciation in excess of the accounting depreciation for the Golar Eskimo. The deferred tax asset on Jordan losses is netted off against the deferred tax liability, to arrive at a net deferred tax liability of $5.3 million . A reconciliation of deferred tax assets and deferred tax liability, net, are shown below: Indonesia (in thousands of $) 2017 2016 2015 Balance at January 1 5,086 10,393 9,524 Adjustment in respect of prior year (836 ) — — Recognition of deferred tax assets on previously unrecognized losses — — 4,945 Utilization of tax losses (4,250 ) (5,307 ) (4,076 ) Balance at December 31 — 5,086 10,393 Jordan (in thousands of $) 2017 2016 Balance at January 1 (3,210 ) (1,146 ) Adjustment in respect of prior year — 150 Utilization of tax losses (284 ) (409 ) Recognition of deferred liability on fixed asset temporary differences (1,801 ) (1,805 ) Balance at December 31 (5,295 ) (3,210 ) 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 utilize surplus earnings to reduce borrowings or reinvest its earnings, as opposed to making any distribution. Expiration of net operating losses carried forward relating to the Golar Eskimo are as follows: (in thousands of $) Amount Date of expiration Net operating losses in 2015 ( Golar Eskimo ) 4,991 2020 |
OPERATING LEASES
OPERATING LEASES | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
OPERATING LEASES | OPERATING LEASES Rental income The minimum contractual future revenues to be received on time charters as of December 31, 2017 , were as follows: Year ending December 31, (in thousands of $) Total 2018 301,555 (1) 2019 225,500 2020 214,441 2021 213,855 2022 and thereafter 268,940 Total 1,224,291 ____________________________________ (1) On July 12, 2017, we agreed to certain amendments with the charterer of the Golar Freeze , DUSUP, to shorten the charter by a year, to end in April 2019 and to remove DUSUP's termination for convenience rights and extension option rights which ran to 2024. We have the right to terminate our obligations under the charter while continuing to receive the capital element of the charter hire until April 2019. 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, among others. 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 time charter with KNPC for the Golar Igloo is for five nine month regasification seasons. Every year KNPC has the option to extend the regasification season. In addition, KNPC has the option to extend the charter by one regasification season. The minimum contractual future revenues above assumes that both these options will not be exercised. Jordan has the option, for a termination fee, to terminate the charter after the fifth anniversary of the delivery date of the Golar Eskimo . The minimum contractual future revenues above assumes that this option will not be exercised. The cost and accumulated depreciation of vessels leased to charterers at December 31, 2017 and 2016 were $1,742.2 million and $2,436.4 million ; and $484.8 million and $672.5 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 COMBINATION | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATION | BUSINESS COMBINATION On January 20, 2015, we acquired Golar’s 100% interest in the companies that own and operate the FSRU Golar Eskimo pursuant to a Purchase, Sale and Contribution Agreement entered into on December 22, 2014. The purchase consideration was $388.8 million less the assumed bank debt of $162.8 million . 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 fair values at the date of acquisition. Our board of directors (the "Board") and the Conflicts Committee of the Board (the "Conflicts Committee") approved the purchase price for this transaction. The Conflicts Committee retained a financial adviser to assist in the evaluation of this transaction. Golar Eskimo The details of the Golar Eskimo acquisition are as follows: Golar Eskimo (in thousands of $) January 20, 2015 Purchase consideration (1) 226,010 Less: Fair value of net assets (liabilities) acquired: Vessel and equipment 292,872 Intangible asset 95,520 Cash 298 Other assets and liabilities 150 Long-term debt (162,830 ) Subtotal (226,010 ) Difference between the purchase price and fair value of net assets acquired — __________________________________________ (1) The purchase consideration comprised the following: (in thousands of $) Golar Eskimo Loan from Golar 220,000 Cash consideration paid to Golar 7,170 Purchase price adjustments (1,160 ) 226,010 Revenue and profit contributions In connection with the Golar Eskimo acquisition, we entered into an agreement with Golar pursuant to which Golar agreed to pay us an aggregate amount of $22.0 million starting in January 2015 and ending in June 2015 for the right to use the Golar Eskimo during that period. Under the agreement with Golar, the Golar Eskimo contributed revenues of $22.0 million and net income of $18.6 million to the financial results for the period from January 20, 2015 to December 31, 2015. We in return remitted to Golar $12.9 million of hire payments actually received with respect to the vessel during this period. The table below shows our summarized consolidated pro forma annual financial information for the year ended December 31, 2015, giving effect to our acquisition of the Golar Eskimo as if it had taken place on January 1, 2015. Unaudited (in thousands of $, except per unit data) 2015 Revenues 435,573 Net income 163,022 |
TRADE ACCOUNTS RECEIVABLE
TRADE ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
TRADE ACCOUNTS RECEIVABLE | TRADE ACCOUNTS RECEIVABLE As of December 31, 2017 and 2016 , there was no provision for doubtful accounts. |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
OTHER CURRENT ASSETS | OTHER CURRENT ASSETS (in thousands of $) 2017 2016 Prepaid expenses 5,137 2,365 Other receivables 2,713 2,457 7,850 4,822 |
VESSELS AND EQUIPMENT, NET
VESSELS AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
VESSELS AND EQUIPMENT, NET | VESSELS AND EQUIPMENT, NET (in thousands of $) 2017 2016 Cost 2,259,132 2,267,819 Accumulated depreciation (670,209 ) (615,109 ) Net book value 1,588,923 1,652,710 Depreciation and amortization expense for the years ended December 31, 2017 , 2016 and 2015 was $86.0 million , $82.6 million and $81.9 million , respectively. Drydocking costs of $88.5 million and $97.7 million are included in the vessel cost for December 31, 2017 and 2016 , respectively. Accumulated amortization of those costs at December 31, 2017 and 2016 was $49.6 million and $60.3 million , respectively. Mooring equipment of $37.8 million is included in the cost for December 31, 2017 and 2016 . Accumulated depreciation of the mooring equipment at December 31, 2017 and 2016 was $20.1 million and $16.7 million , respectively. As of December 31, 2017 and 2016 , vessels and equipment with a net book value of $1,449.1 million and $1,511.2 million , respectively, were pledged as security for certain debt facilities (see note 25). The following table presents the market values and carrying values of six of our vessels that we have determined have a market value that is less than their carrying value as of December 31, 2017 . 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. Vessel 2017 Market value (1) 2017 Carrying value Deficit (in millions of $) Golar Winter 171.3 223.9 (52.6) NR Satu 143.8 177.2 (33.4) Methane Princess (2) 105.3 105.9 (0.6) Golar Maria 97.5 187.2 (89.7) Golar Grand 97.3 112.4 (15.1) Golar Mazo 83.8 139.7 (55.9) (1) Market values are determined with reference to average broker values provided by independent brokers. Broker values are considered an estimate of the market value for the purpose of determining whether an impairment trigger exists. Broker values are commonly used and accepted by our lenders in relation to determining compliance with relevant covenants in applicable credit facilities for the purpose of assessing security quality. 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. (2) The Methane Princess is under capital lease (see note 14). |
VESSEL UNDER CAPITAL LEASE, NET
VESSEL UNDER CAPITAL LEASE, NET | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
VESSEL UNDER CAPITAL LEASE, NET | VESSEL UNDER CAPITAL LEASE, NET (in thousands of $) 2017 2016 Cost 168,840 168,577 Accumulated depreciation and amortization (62,895 ) (57,391 ) Net book value 105,945 111,186 As of December 31, 2017 and 2016 , we operated one vessel, the Methane Princess , under a capital lease. The lease is in respect of a refinancing transaction undertaken during 2003, as described in note 21. Drydocking costs of $8.3 million and $8.1 million are included in the cost amounts above as of December 31, 2017 and 2016 . Accumulated amortization of those costs at December 31, 2017 and 2016 was $7.4 million and $5.8 million , respectively. Depreciation and amortization expense for vessels under capital leases for each of the years ended December 31, 2017 , 2016 and 2015 was $5.5 million . |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | INTANGIBLE ASSETS, NET (in thousands of $) 2017 2016 Cost 114,616 114,616 Accumulated amortization (41,410 ) (28,483 ) Net book value 73,206 86,133 The intangible assets pertain to customer related and contract based assets representing primarily the long-term time charter party agreements acquired in connection with the acquisition of the Golar Igloo in March 2014 and Golar Eskimo in January 2015 (see note 10). The intangible asset acquired in connection with the acquisition of the Golar Igloo is amortized over the term of the contract with KNPC of five years, which assumes that the charterer will not renew the contract. The intangible asset acquired in connection with the acquisition of the Golar Eskimo is amortized over the term of the contract initially entered into with Jordan of ten years . Both intangible assets have been assigned a zero residual value. As of December 31, 2017 , there was no impairment of intangible assets. Amortization expense for the years ended December 31, 2017 , 2016 and 2015 was $12.9 million , $13.0 million and $12.5 million respectively. The estimated future amortization of intangible assets as of December 31, 2017 is as follows: Year Ending December 31, (in thousands of $) 2018 12,930 2019 9,862 2020 9,135 2021 9,110 2022 9,110 2023 and thereafter 23,059 Total 73,206 |
RESTRICTED CASH AND SHORT-TERM
RESTRICTED CASH AND SHORT-TERM DEPOSITS | 12 Months Ended |
Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
RESTRICTED CASH AND SHORT-TERM DEPOSITS | RESTRICTED CASH AND SHORT-TERM DEPOSITS Our restricted cash balances are as follows: (in thousands of $) 2017 2016 Methane Princess lease security deposits (see note 21) 119,548 111,958 Restricted cash relating to the $800 million facility (see note 20) 41,656 — Restricted cash relating to the cross currency interest rate swap (see note 23) — 32,410 Restricted cash relating to the NR Satu facility (see notes 5 and 20) 10,270 10,361 Restricted cash held by Eskimo SPV (see note 5) 3,764 — Restricted cash relating to performance guarantees 7,695 7,686 Total restricted cash 182,933 162,415 Less: current portion of restricted cash (27,306 ) (44,927 ) Non-current restricted cash 155,627 117,488 Restricted cash does not include minimum consolidated cash balances of $30.0 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 20). As of December 31, 2017 and 2016 , the value of deposits used to obtain letters of credit to secure the obligations for the lease arrangements described in note 21 was $119.5 million and $112.0 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 Pound Sterling LIBOR. Restricted cash pursuant to the $800 million facility provides additional security to the lenders following the early termination of the Golar Spirit's charter and amendments to the Golar Freeze's existing charter. Under the amendments to the $800 million facility, the terms allow for a stepped reduction in the value of the security deposit for the Golar Spirit. The security deposit may be applied against Golar Spirit's proportion of the $800 million facility quarterly repayment. The security deposit will be reduced to $30.6 million in 2018, $23.5 million in 2019 and $16.5 million in 2020. The security deposit will be fully utilized in 2021 on the final repayment of the $800 million facility. The security deposit may be released if we are able to enter into a suitable charter (see note 20). Restricted cash relating to the cross currency interest rate swap was released upon the redemption of our High-Yield Bonds in October 2017 (see note 20). Restricted cash relating to Eskimo SPV represents amounts held by the VIE which are not available for use by the Partnership. We are required to consolidate Eskimo SPV under US GAAP into our financial statements as a VIE (see note 5). As of December 31, 2017 and 2016 , the value of collateral deposits required to secure performance guarantees issued to charterers on our behalf by banks was $7.7 million . These security deposits are also referred to in these financial statements as restricted cash. |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
OTHER NON-CURRENT ASSETS [Abstract] | |
OTHER NON-CURRENT ASSETS | OTHER NON-CURRENT ASSETS (in thousands of $) 2017 2016 Mark-to-market interest rate swaps valuation (see note 23) 11,937 8,194 Deferred tax asset (see note 8) — 5,086 Other non-current assets 2,990 3,737 14,927 17,017 Other non-current assets consist of capitalized commission expenses and lease incentives incurred in connection with the NR Satu time charter amounting to $3.0 million and $ 3.7 million as of December 31, 2017 and 2016 , respectively. These costs are amortized over the term of the NR Satu time charter. Amortization expense for each of the years ended December 31, 2017 , 2016 and 2015 was $0.7 million , which are recognized mainly under “Voyage and commission expenses” in the statement of operations. |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | ACCRUED EXPENSES (in thousands of $) 2017 2016 Interest expense 16,858 10,074 Current tax payable 7,903 1,461 Vessel operating and drydocking expenses 6,671 5,424 Administrative expenses 808 479 32,240 17,438 Current tax payable includes provision for interest and penalties of $0.2 million and $0.8 million for the years ended December 31, 2017 and 2016 , respectively. |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
OTHER CURRENT LIABILITIES | OTHER CURRENT LIABILITIES (in thousands of $) 2017 2016 Deferred revenue 9,733 13,554 Derivative - earn-out units (see notes 23 and 27) 7,400 15,000 Preferred units dividend payable (see note 27) 2,080 — Mark-to-market interest rate swaps valuation (see note 23) 1,618 6,143 Other creditors 1,485 260 Deferred credits from capital lease transactions (see note 22) 625 625 Mark-to-market cross currency interest rate swaps valuation (see note 23) — 81,454 22,941 117,036 |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT (in thousands of $) 2017 2016 Total debt, net of deferred finance charges 1,371,034 1,374,710 Less: Current portion of long-term debt due to third parties, net of deferred finance charges (118,850 ) (78,101 ) Long-term debt, net of deferred finance charges 1,252,184 1,296,609 Our outstanding debt as of December 31, 2017 is repayable as follows: Year Ending December 31, (in thousands of $) 2018 122,317 2019 135,183 2020 202,000 2021 716,000 2022 and thereafter 212,084 Total debt 1,387,584 Less: deferred finance charges (16,550 ) Total debt, net deferred finance charges 1,371,034 As of December 31, 2017 and 2016 , the maturity dates for our total debt were as follows: (in thousands of $) 2017 2016 Maturity date $800 million credit facility 672,000 740,667 2021 2015 Norwegian Bonds 150,000 150,000 2020 2017 Norwegian Bonds 250,000 — 2021 NR Satu Facility 103,500 117,800 2019 Eskimo SPV Debt 212,084 232,931 2025 * High-Yield Bonds — 150,452 2017 Total debt 1,387,584 1,391,850 __________________________________________ * The maturity date of the Eskimo SPV debt is based on management’s best estimate and subject to change pending the receipt of the audited financial statements of the VIE. In absence of the audited financial statements of the VIE at year end, we confirmed the maturity date directly with the SPV. $800 million credit facility In April 2016, we entered into an $800.0 million senior secured credit facility (the “ $800 million credit facility”) with a syndicate of banks to refinance existing financing arrangements secured by seven of our existing vessels. The vessels included in this facility are the Golar Freeze , the Golar Grand , the Golar Igloo , the Golar Maria , the Golar Spirit and the Golar Winter and the Methane Princess . The $800 million credit facility has a five year term and the initial credit facility consisted of a $650.0 million term loan facility and a $150.0 million revolving credit facility. The revolving credit facility was reduced by $25.0 million on September 30, 2017 and will be reduced by a further $50.0 million by September 30, 2018. As of December 31, 2017, we had fully drawn down on the revolving credit facility of $125.0 million . The term loan facility is repayable in quarterly installments with a total final balloon payment of $378.0 million together with any amounts outstanding under the revolving facility, the maximum amount of which in 2021 would be $75.0 million . The $800 million credit facility bears interest at a rate of LIBOR plus a margin of 2.5% . As of December 31, 2017 , the balance outstanding under the $800 million credit facility amounted to $672.0 million . 2015 Norwegian Bonds In May 2015, we completed the issuance and sale of $150 million aggregate principal amount of five years non-amortizing bonds in Norway (the “2015 Norwegian Bonds”). The 2015 Norwegian Bonds mature on May 22, 2020 and bear interest at a rate of LIBOR plus 4.4% . In connection with the issuance of the 2015 Norwegian Bonds, we entered into an economic hedge interest rate swap arrangement to reduce the risk associated with fluctuations in interest rates by converting the floating rate of the interest obligation under the 2015 Norwegian Bonds to an all-in fixed rate of 6.275% . 2017 Norwegian Bonds On February 15, 2017, we completed the issuance and sale of $250.0 million aggregate principal amount of our 2017 Norwegian Bonds which will mature in May 2021 and bear interest at a rate of 3-month LIBOR plus 6.25% . In connection with the issuance of the 2017 Norwegian Bonds, we entered into economic hedge interest rate swaps to reduce the risk associated with fluctuations in interest rates by converting the floating rate of the interest obligation under the 2017 Norwegian Bonds to an all-in interest rate of 8.194% . The 2017 Norwegian Bonds were listed on the Oslo Bors in July 2017. NR Satu Facility In December 2012, PTGI, the company that owns and operates the NR Satu , entered into a seven year $175.0 million secured loan facility (or the NR Satu Facility). The NR Satu Facility is split into two tranches, a $155.0 million term loan facility and a $20.0 million revolving facility. The facility is with a syndicate of banks and bears interest at LIBOR plus a margin of 3.5% . We drew down $155 million on the term loan facility in December 2012. The loan is payable on a quarterly basis with a final balloon payment of $52.5 million payable in November 2019. In 2016, we drew down $20.0 million under the revolving facility. As of December 31, 2017 , we had $103.5 million of borrowings outstanding under the NR Satu facility. The facility requires certain cash balances to be held on deposit during the period of the loan. These balances are referred to in these consolidated financial statements as restricted cash. As of December 31, 2017 , the value of the restricted cash deposit secured against the loan was $10.3 million . Eskimo SPV Debt In November 2015, we entered into a sale and leaseback transaction pursuant to which we sold the Golar Eskimo to Eskimo SPV, a subsidiary of CMBL, and leased back the vessel under a bareboat charter for a monthly hire rate. In November 2015, Eskimo SPV, which is the legal owner of the Golar Eskimo , entered into a long-term loan facility (the “Eskimo SPV Debt”). Eskimo SPV was determined to be a VIE of which we are deemed to be the primary beneficiary, and as a result, we are required to consolidate the results of Eskimo SPV. Although consolidated into our results, we have no control over the funding arrangements negotiated by Eskimo SPV, such as interest rates, maturity, and repayment profiles. In consolidating Eskimo SPV, we must make certain assumptions regarding the debt amortization profile and the interest rate to be applied against Eskimo SPV’s debt principal. The Eskimo SPV Debt is non-amortizing, with a final balloon payment of $212.1 million due in 2025. The facility bears interest at LIBOR plus a margin. See note 5. Repayment of High-Yield Bonds We used the proceeds from the issuance of our 2017 Norwegian Bonds to repay our High-Yield Bonds and related swap obligations before and on their maturity in October 2017. The High-Yield Bonds were senior bonds issued in 2012 in an initial amount of NOK 1,300 million (equivalent to approximately $227 million ) with a maturity date in October 2017. The bonds bore 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% . In connection with the issuance of the High-Yield Bonds, in order to hedge our exposure, we entered into a non-amortizing cross currency interest rate swap agreement. The swap hedged both the full redemption amount of the NOK denominated obligation and the related quarterly interest payments. We designated the swap as a cash flow hedge (see note 23). Debt and lease restrictions As of December 31, 2017 , we were in compliance with all covenants under our existing debt and lease agreements. The following summarizes the operating and financing restrictions and covenants contained in the agreements governing our debt arrangements. $800 million credit facility The $800.0 million senior secured credit facility requires us to maintain as of the end of each quarterly period during and as of the end of each fiscal year: • free liquid assets of at least $30.0 million until the maturity date; • a minimum EBITDA to debt service ratio of 1.15:1; • a maximum net debt to EBITDA ratio of 6.5:1; and • a consolidated net worth of $250.0 million . In addition, the aggregate fair market value of the seven vessels must at all times be at least 110% of the outstanding facility amount. NR Satu Facility The NR Satu facility requires us to maintain, as of the end of each quarter, and as of the end of each fiscal year: • free liquid assets of at least $30 million ; • a minimum EBITDA to debt service ratio of 1.15:1; and • a maximum net debt to EBITDA ratio of 6.5:1. In addition, the NR Satu facility requires PT Golar Indonesia to maintain a minimum debt service coverage ratio of 1.10:1, at any time during the period. Eskimo SPV Debt The bareboat charter and the related agreements governing our sale and leaseback of the Golar Eskimo require us to maintain: • free liquid assets of at least $30 million throughout the charter period; • a maximum net debt to EBITDA ratio of 6.5:1; and • a consolidated tangible net worth of $123.95 million . In addition, from the third year anniversary of the commencement of the bareboat charter, we have an annual option to repurchase the vessel at fixed pre-determined amounts, with an obligation to repurchase the vessel at the end of the ten year lease period. In addition, the fair market of value the Golar Eskimo must at all times be at least 110% of the outstanding capital balance (as reduced from time to time). 2015 Norwegian Bonds and 2017 Norwegian Bonds The financial covenants under the bond agreements require us to maintain as of the end of each quarterly period during and as of the end of each fiscal year: • free liquid assets of at least $30 million ; • a minimum EBITDA to debt service ratio of 1.15:1; and • a maximum net debt to EBITDA ratio of 6.5:1. In addition, we are required to provide the documents and information necessary to maintain the listing and quotation of the bonds on the Oslo Bors. |
CAPITAL LEASE
CAPITAL LEASE | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
CAPITAL LEASE | CAPITAL LEASE (in thousands of $) 2017 2016 Total obligations under capital lease 128,081 117,751 Less: current portion of obligations under capital lease (1,276 ) (787 ) Non-current portion of obligations under capital lease 126,805 116,964 As of December 31, 2017 and 2016 , we operated one vessel under a 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 16. As of December 31, 2017 , we are committed to make quarterly minimum capital lease payments (including interest), as follows: Year ending December 31, (in thousands of $) Methane Princess Lease 2018 7,893 2019 8,201 2020 8,514 2021 8,846 2022 9,181 2023 and thereafter 167,783 Total minimum lease payments 210,418 Less: Imputed interest (82,337 ) Present value of minimum lease payments 128,081 The interest element of the lease rentals is accrued at a floating rate based upon Pound Sterling LIBOR. We determined that the entity that owned the Methane Princess was a variable interest entity in which we had a variable interest and was the primary beneficiary. Upon the initial transfer of the Methane Princess to the financial institution, we measured the subsequently leased vessel at the same amount as if the transfer had not occurred, which was cost less accumulated depreciation at the time of transfer. |
OTHER NON-CURRENT LIABILITIES
OTHER NON-CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
Other Long-term Liabilities Disclosure [Abstract] | |
OTHER NON-CURRENT LIABILITIES | OTHER NON-CURRENT LIABILITIES (in thousands of $) 2017 2016 Deferred tax liability (see note 8) 5,295 3,210 Deferred credits from capital lease transactions 15,399 16,024 20,694 19,234 Deferred credits from capital lease transactions (in thousands of $) 2017 2016 Deferred credits from capital lease transactions 24,691 24,691 Less: Accumulated amortization (8,667 ) (8,042 ) 16,024 16,649 Current 625 625 Non-current 15,399 16,024 16,024 16,649 In connection with the Methane Princess Lease (see note 21), 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, 2017 , 2016 and 2015 was $0.6 million . |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2017 | |
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 (in thousands of $) Year Ended Notional Amount Maturity Dates Fixed Interest Rate Interest rate swaps: Receiving floating, pay fixed December 31, 2017 1,335,307 2018 to 2023 1.07 % to 2.44% Receiving floating, pay fixed December 31, 2016 1,131,746 2018 to 2023 1.07 % to 2.44% During the year ended December 31, 2017, we entered into new interest rates swaps with a notional value of $250 million . During the year ended December 31, 2016, we entered into new interest rate swaps with a notional value of $400 million , terminated swaps with a notional value of $100 million and restructured swaps with a notional value of $200 million . As of December 31, 2017 and 2016 , the notional principal amount of the debt and capital lease obligations outstanding subject to such swap agreements was $1,335.3 million and $1,131.7 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 hedging instruments Effective portion gain/ (loss) reclassified from Accumulated Other Comprehensive Loss Ineffective Portion (in thousands of $) Location 2017 2016 2015 2017 2016 2015 Interest rate swaps Other financial items, net — (409 ) 2,533 (1 ) (639 ) 411 The effect of cash flow hedging relationships relating to interest rate swap agreements excluding the cross currency interest rate swap on the statements of 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 $) 2017 2016 2015 Interest rate swaps 94 147 (174 ) As of December 31, 2017 and 2016 , our accumulated other comprehensive income included $0.1 million of unrealized losses 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, 2017 , 2016 and 2015 , were $nil , a $0.4 million loss and a $2.5 million gain, respectively. In February 2018, upon the maturity of the interest rate swap designated as a cash flow hedge, its accumulated mark-to-market losses of $0.1 million previously presented under accumulated other comprehensive income were transferred to our statement of operations under Other Financial Items. Foreign currency risk For the periods reported, the majority of our 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 Pound Sterling. There is a risk that currency fluctuations will have a negative effect on the value of our cash flows. A net foreign exchange loss of $0.7 million , gains of $0.9 million and $0.5 million arose in the years ended December 31, 2017 , 2016 and 2015 , respectively. The net foreign exchange loss of $0.7 million ( 2016 : $0.9 million gain; 2015: $0.5 million gain) that arose in the year ended December 31, 2017 was a result of the retranslation of our capital lease obligations and the cash deposits securing those obligations. As of December 31, 2017 , and 2016 we had no foreign currency forward contracts. Cross currency interest rate swap As described in note 20, in 2012, we issued NOK denominated senior unsecured bonds (High-Yield Bonds). In order to hedge our exposure, we entered into a non-amortizing cross currency interest rate swap agreement. The swap hedged both the full redemption amount of the NOK obligation and the related quarterly interest payments. We originally designated the cross currency interest rate swap as a cash flow hedge. During the year ended December 31, 2017, we completed the repayment of the High-Yield Bonds and settled the corresponding cross-currency interest rate swap liabilities. We de-designated the cross currency interest rate swap associated with the High-Yield Bonds as a cash flow hedge from January 1, 2017. Accordingly, the amount recorded in accumulated other comprehensive income of $5.0 million was reclassified to earnings in 2017. The net gain/(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 $) 2017 2016 2015 Cross currency interest rate swap — 4,116 (4,933 ) As of December 31, 2017 , 2016 and 2015, our accumulated other comprehensive income included $ nil , $5.0 million gain and $5.0 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. 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. We do not have any level 3 financial instruments. The carrying value and estimated fair value of our financial instruments at December 31, 2017 and 2016 are as follows: (in thousands of $) Fair Value Hierarchy(1) 2017 Carrying Value 2017 Fair Value 2016 Carrying Value 2016 Fair Value Non-Derivatives: Cash and cash equivalents Level 1 246,954 246,954 65,710 65,710 Restricted cash and short-term deposits Level 1 182,933 182,933 162,415 162,415 High-Yield, 2015 and 2017 Norwegian Bonds (1) Level 1 400,000 392,445 300,452 293,484 Short-term and long-term debt—floating (2) Level 2 987,584 987,584 1,091,398 1,091,398 Obligations under capital leases (2) Level 2 128,081 128,081 117,751 117,751 Derivatives: Interest rate swaps asset (3)(4) Level 2 11,962 11,962 8,194 8,194 Interest rate swaps liability (3)(4) Level 2 1,618 1,618 6,143 6,143 Cross currency interest rate swap liability (3)(5) Level 2 — — 81,454 81,454 Earn-out units (6) Level 2 7,400 7,400 15,000 15,000 __________________________________________ 1. This pertains to bonds with a combined carrying value of $400.0 million as of December 31, 2017 ( 2016 : $300.5 million ) which is included under long-term debt on the balance sheet. The fair value of the bonds as of December 31, 2017 was $392.4 million ( 2016 : $293.5 million ), which represents 98.1% ( 2016 : 97.7% ) of their face value. In February 2017, we completed the issuance and sale of $250 million of the 2017 Norwegian Bonds which will mature in May 2021. During 2017, we repaid our High-Yield Bonds and settled the corresponding cross-currency interest rate swap liabilities. 2. Our debt and capital lease obligations are recorded at amortized cost in the consolidated balance sheets. Debt is presented in the above table, gross of deferred financing cost of $16.6 million as of December 31, 2017 ( 2016 : $17.1 million ). 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 below) that qualify and are designated as cash flow hedges as of December 31, 2017 and 2016 was $0.1 million (with a notional amount of $72.5 million ) and $0.1 million (with a notional amount of $82.5 million ), respectively. The expected maturity of these interest rate agreements is in February 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. During 2017, we repaid our High-Yield Bonds and settled the corresponding cross-currency interest rate swap liabilities. 6. This relates to the Earn-Out Units issued in connection with the IDR reset transaction in October 2016. See note 27 for further details. 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-term maturity of these 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 deposits 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 estimated fair value of our High-Yield Bonds (prior to maturity in 2017), 2015 Norwegian Bonds and 2017 Norwegian Bonds, are based on the quoted market price as of the balance sheet date. The estimated fair value of our 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 value of long-term obligations under capital lease is considered to be equal to the carrying value since it bears interest at a variable interest rate, which is 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 fair value of the Earn-Out Units was determined using a Monte-Carlo simulation method. This simulation was performed within the Black Scholes option pricing model then solved via an iterative process by applying the Newton-Raphson method for the fair value of the Earn-Out Units, such that the price of a unit output by the Monte Carlo simulation equaled the price observed in the market. The method took into account the historical volatility, dividend yield as well as the unit price of the common units as of the IDR reset date and at the balance sheet date (see note 27). 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, 2017 and 2016 would be adjusted as detailed in the following table: December 31, 2017 December 31, 2016 (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 11,962 (1,618 ) 10,344 8,194 (4,194 ) 4,000 Total liability derivatives 1,618 (1,618 ) — 6,143 (4,194 ) 1,949 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. Following the de-designation of the cross currency interest rate swap, a credit valuation adjustment of $0.2 million was debited to other financial items, net for the year ended December 31, 2017. The credit valuation adjustment of $1.1 million was debited to other comprehensive income for the year ended December 31, 2016. As of December 31, 2017 , the credit valuation adjustment in accumulated other comprehensive income was $ nil ( 2016 : $0.2 million credit). 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 credit risk The maximum exposure to credit risk is the carrying value of cash and cash equivalents, restricted cash and short-term deposits, trade accounts receivable, other receivables and amounts due from related parties. In respect of cash and cash equivalents, restricted cash and short-term deposits, credit risk lies with Nordea Bank Finland Plc, Citibank, DNB Bank ASA, Santander UK plc, Sumitomo Mitsui Banking Corporation, Standard Chartered PLC, Skandinaviska Enskilda Banken AB (publ), CMBL. However, we believe this risk is remote, as they are established and reputable establishments with no prior history of default. During the year ended December 31, 2017 , ten customers accounted for all of our revenues. These revenues and associated accounts receivable are mainly derived from time charters with Petrobas, PTNR, Jordan, KNPC and DUSUP. We consider the credit risk of DUSUP, Petrobas, PTNR, KNPC and Jordan to be low. During the years ended December 31, 2017 , 2016 and 2015 , Petrobras accounted for at least 22% of gross revenue. Details of revenues derived from each major customer for the years ended December 31, 2017 , 2016 and 2015 are found in note 6. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Transactions with related parties: (in thousands of $) 2017 2016 2015 Transactions with Golar and affiliates: Time charter revenues (a) 17,423 28,368 41,555 Management and administrative services fees (b) (7,762 ) (4,251 ) (2,949 ) Ship management fees (c) (5,903 ) (6,466 ) (7,577 ) Expense in connection with the Golar Eskimo Vendor Loan (d) — — (4,217 ) Interest income on short-term loans (e) — 122 203 Share options expense (f) (228 ) (181 ) (297 ) Income on deposits paid to Golar (g) 4,622 1,967 — Distributions to Golar (h) (52,255 ) (54,688 ) (52,130 ) Fees to Helm Energy Advisors Inc. (i) — (795 ) (2,307 ) Transactions with others: Dividends to China Petroleum Corporation (j) (7,000 ) (12,360 ) (11,400 ) Receivables from related parties: As of December 31, 2017 and 2016 , balances with related parties consisted of the following: (in thousands of $) 2017 2016 Balances due from Golar and its affiliates (e) 4,138 21,908 Methane Princess Lease security deposit movements (k) 3,487 2,006 Deposits paid to Golar (g) 177,247 107,247 184,872 131,161 __________________________________________ (a) Time charter revenues - This consists of revenue from the charters of the Golar Eskimo and the Golar Grand . In connection with our acquisition of the Golar Grand in November 2012, Golar provided us with an option pursuant to which in the event that the charterer did not renew or extend its charter for the Golar Grand beyond February 2015, we could require Golar to charter the vessel through to November 2017 at approximately 75% of the hire rate that would have been payable by the charterer. In February 2015, we exercised this option. In May 2017, Golar Grand started its new charter with a major international oil and gas company (the “New Charter”). We sub-chartered back the Golar Grand from Golar at the same time charter rate as the New Charter. The daily time charter rate receivable from Golar under the option had reverted back to the original rate following the vessel's drydocking in April 2017 but was reduced by the sub-charter income under the New Charter. Accordingly, we earned $17.4 million , $28.4 million and $28.7 million in relation to this charter in the years ended December 31, 2017 , 2016 and 2015 respectively. In connection with the Golar Eskimo acquisition, we entered into an agreement with Golar pursuant to which Golar agreed to pay us an aggregate amount of $22.0 million starting in January 2015 and ending in June 2015 for the right to use the Golar Eskimo during that period. We accounted for $12.9 million of the $22.0 million as time charter revenues for the year ended December 31, 2015. (b) Management and administrative services fees - We are party to 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. (c) Ship management fees - Golar and certain of its subsidiaries charged vessel 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 subsidiaries of Golar, including Golar Management. We may terminate these agreements by providing 30 days’ written notice. (d) Golar Eskimo Vendor Loan - A portion of the purchase price for the Golar Eskimo acquisition was financed with the proceeds of a $220.0 million unsecured, non-amortizing loan to us from Golar. This loan, which contained a repayment incentive fee of up to 1.0% of the loan amount and bore interest at a blended rate equal to three-month LIBOR plus a margin of 2.84% , was repaid in full in November 2015. Accordingly, we recognized a repayment incentive fee of $1.1 million in connection with the repayment. (e) Balances due from Golar and its affiliates - Receivables and payables with Golar and its subsidiaries comprise primarily of unpaid management fees, advisory and administrative services and other related party arrangements including the Golar Grand time charter and the Tundra Letter Agreement. 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 subsidiaries are unsecured, interest-free and intended to be settled in the ordinary course of business. The decrease in the net balance due from Golar as of December 31, 2017 is mainly attributable to charter hire payments from Golar during the year in relation to the Golar Grand charter which ended November 2017, discussed in (a) above and the amounts due under the Tundra Letter Agreement. In November 2015, Golar borrowed $50.0 million from us. The loan was repayable within 28 days following draw down, was unsecured, and bore interest at LIBOR plus 5.0% . The loan was repaid in December 2015. (f) Share options expense - This relates to a recharge from Golar in relation to the award of 29,950 (with an exercise price of $23.50 at grant date) and 45,000 (with an exercise price of $56.70 at grant date) share options in Golar LNG granted to certain of our directors and officers. The exercise price is reduced by the value of dividends declared and paid. They have a contractual term of five years and vest evenly over three years. (g) Income on deposits paid to Golar/Deposits paid to Golar - In May 2016, we completed the Tundra Acquisition and paid total cash purchase consideration of $107.2 million . Pursuant to the Tundra Letter Agreement, of the amount we received under the agreement, we have accounted for $2.2 million and $2.0 million as interest income for the years ended December 31, 2017 and 2016, respectively. In May 2017, we elected to exercise the Tundra Put Right to require Golar to repurchase Tundra Corp at a price equal to the original purchase price. In connection with the exercise of the Tundra Put Right, we and Golar entered into an agreement pursuant to which we agreed to sell Tundra Corp to Golar on the date of the closing of the Tundra Put Sale (the “Put Sale Closing Date”) on October 17, 2017 in return for Golar's promise to pay an amount equal to $107.2 million (the “Deferred Purchase Price”) plus an additional amount equal to 5% per annum of the Deferred Purchase Price (the “Additional Amount”). The Deferred Purchase Price and the Additional Amount shall be due and payable by Golar on the earlier of (a) the date of the closing of the Hilli Acquisition (as defined) and (b) April 30, 2018. However, in the event acceptance is delayed beyond April 30, 2018, both parties have agreed to extend the closing date for the Hilli Acquisition to May 31, 2018. On August 15, 2017, Golar Partners Operating LLC, our wholly owned subsidiary, entered into a purchase and sale agreement (the “Hilli Purchase Agreement”) for the acquisition (the “Hilli Acquisition”) from Golar and affiliates of Keppel Shipyard Limited (“Keppel”) and Black and Veatch (“B&V”) of 50% of the common units in Hilli LLC, which will, on the closing date of the Hilli Acquisition, indirectly own the Hilli . Such common units will represent the equivalent of 50% of the two liquefaction trains, out of a total of four, that will be contracted to Perenco Cameroon (“Perenco”) and Societe Nationale de Hydrocarbures (“SNH”) (together with Perenco and SNH, the “Customer”) under an eight -year liquefaction tolling agreement (the “Liquefaction Tolling Agreement”). The purchase price for the common units of Hilli LLC is $658 million less net lease obligations under the financing facility for the Hilli (the “Hilli Facility”), which are expected to be between $468 and $480 million . Concurrently with the execution of the Hilli Purchase Agreement, we paid a $70 million deposit to Golar, upon which we will receive interest at a rate of 5% per annum. The closing of the Hilli Acquisition is subject to the satisfaction of certain closing conditions, which include among other things, the delivery to and acceptance by the customer of the Hilli , and the commencement of commercial operations under the Liquefaction Tolling Agreement. We have accounted for $2.4 million as interest income for the year ended December 31, 2017 on the Deferred Purchase Price and $70 million deposit. (h) Distributions to Golar - We have declared and paid quarterly distributions totaling $52.3 million , $54.7 million , and $52.1 million to Golar for each of the years ended December 31, 2017 , 2016 and 2015 , respectively. (i) Fees to Helm Energy Advisors Inc. - Through his co-ownership of Helm Energy Advisors Inc. (“Helm”), a company established and domiciled in Canada, Mr. Doug Arnell, who was appointed to our board of directors in February 2015 and resigned in September 2016, acted and advised us on various projects for us and earned approximately $0.8 million and $2.3 million from us in fees for the years ended December 31, 2016 and 2015 , respectively. (j) Dividends to China Petroleum Corporation - During the years ended December 31, 2017 , 2016 , and 2015 , Faraway Maritime Shipping Co., which is 60% owned by us and 40% owned by China Petroleum Corporation (“CPC”), paid total dividends to CPC of $7.0 million , $12.4 million and $11.4 million , respectively. (k) 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 transactions Agency agreement with PT Pesona Sentra Utama (or PT Pesona) - PT Pesona, an Indonesian company owns 51% of the issued share capital in our subsidiary, PTGI, the owner and operator of NR Satu , and provides agency and local representation services for us with respect to NR Satu . During the years ended December 31, 2017 , 2016 , and 2015 , PT Pesona received an agency fee of $0.5 million , $0.4 million and $0.4 million , respectively. Acquisitions from Golar For the three years ended December 31, 2017 , we acquired from Golar equity interests in the company that is the disponent owner and operator of the Golar Tundra and certain subsidiaries which own and operate the Golar Eskimo . We did not consolidate Tundra Corp into our financial results since its acquisition due to the Tundra Put Option. Furthermore, we exercised the put option in May 2017 and the Tundra Put Sale closed in October 2017. The acquisition of the Golar Eskimo was accounted for as a business combination (see Note 10). Omnibus Agreement In connection with our IPO in April 2011, we entered into an Omnibus Agreement with Golar, Golar GP LLC (our “General Partner”) and others governing, among others: • 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. 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. Acquisitions of Golar Eskimo, Golar Igloo and Golar Maria Under the Purchase, Sale and Contribution Agreements entered into between Golar and us on December 15, 2014, December 5, 2013 and January 30, 2013 in relation to the Golar Eskimo, the Golar Igloo and the Golar Maria , 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 sold and to the extent that we notify Golar within five years of the date of the agreements. Golar Tundra financing related guarantees In November 2015, Tundra Corp sold the Golar Tundra to a subsidiary of CMBL (“Tundra SPV”) and subsequently leased back the vessel under a bareboat charter (the “Tundra Lease”). In connection with the Tundra Lease, Golar is a party to a guarantee in favor of Tundra SPV, pursuant to which, in the event that Tundra Corp (a subsidiary of Golar) is in default of its obligations under the Tundra Lease, Golar, as the primary guarantor, will settle any liabilities due within five business days. In addition, we are also party to a further guarantee, pursuant to which, in the event Golar is unable to satisfy its obligations as the primary guarantor, Tundra SPV may recover from us, as the deficiency guarantor. Under a separate side agreement, Golar has agreed to indemnify us for any costs incurred in our capacity as the deficiency guarantor. Conversion of Subordinated units In June 2016, the subordination period expired and all the subordinated units converted into common units (see note 27). Exchange of Incentive Distribution Rights Pursuant to the terms of an Exchange Agreement (the “Exchange Agreement”) by and between the Partnership, Golar and our General Partner, Golar and our General Partner exchanged all of their incentive distribution rights in the Partnership (“Old IDRs”) in October 2016. Under the terms of the Exchange Agreement, the first target distribution was met in November 2017, accordingly, we issued 50% of the Earn-Out Units ( 374,295 common units and 7,639 general partner units) under the Exchange Agreement (see note 27). |
OTHER COMMITMENTS AND CONTINGEN
OTHER COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
OTHER COMMITMENTS AND CONTINGENCIES | OTHER COMMITMENTS AND CONTINGENCIES Assets pledged (in thousands of $) 2017 2016 Carrying value of vessels and equipment secured against long-term loans and capital leases 1,555,092 1,622,416 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 premium on the members. Tax lease benefits As of December 31, 2017 , we have one 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, 2017 , there was a net accrued gain of approximately $1.0 million . Under the terms of the leasing arrangement, the benefits are derived primarily from the tax depreciation assumed to be available to the lessor as a result of their investment in the vessel. As is typical in these leasing arrangements, as the lessee we are obligated to maintain the lessor’s after-tax margin. Accordingly, in the event of any adverse tax changes or a successful challenge by the Her Majesty's Revenue and Customs (the “HMRC”), the UK tax authorities, with regard to the initial tax basis of the transactions, or in the event of an early termination of the Methane Princess lease or in relation to the other vessels previously financed by UK tax leases, we may be required to make additional payments principally to the applicable UK vessel lessor. We would be required to return all, or a portion of, or in certain circumstances significantly more than the upfront cash benefits that Golar received in respect of the applicable lease financing transaction. HMRC has been challenging the use of similar tax lease structures and has been engaged in litigation of a test case for some years. In August 2015, following an appeal to the Court of Appeal by the HMRC which set aside previous judgments in favor of the tax payer, the First Tier Tribunal (UK court) ruled in favor of HMRC. The judgments of the First Tier Tribunal do not create binding precedent for other UK court decisions and therefore the ruling in favor of HMRC is not binding in the context of our structures. Further, we consider there are differences in the fact pattern and structure between this case and our leasing arrangements and therefore is not necessarily indicative of any outcome should HMRC challenge us, and we believe that our fact pattern is sufficiently different to succeed if we are challenged by HMRC. HMRC have written to our lessor to indicate that they believe the Methane Princess lease may be similar to the case noted above. We have reviewed the details of the case and the basis of the judgment with our legal and tax advisers to ascertain what impact, if any, the judgment may have on us and the possible range of exposure has been estimated at approximately $ nil to $30.0 million (£ 22.5 million ). However, under the indemnity provisions of the Omnibus Agreement, 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 Methane Princess lease and in relation to other vessels previously financed by UK tax leases. Golar is currently in conversation with HMRC on this matter, presenting the factual background of Golar's position. Legal proceedings and claims From time to time we have been, and expect to continue to be, subject to legal proceedings and claims in the ordinary course of our business, principally personal injury and property casualty claims. These claims, even if lacking merit, could result in the expenditure of significant financial and managerial resources. In November and December 2015, the Indonesian tax authorities issued letters to PTGI (see note 5) to, among other things, revoke a previously granted VAT importation waiver in the approximate amount of $24.0 million for the NR Satu . In April 2016, PTGI initiated an action in the Indonesian tax court to dispute the waiver cancellation. The final hearing took place in June 2016 and we received the verdict of the Tax Court in November 2017, which rejected PTGI’s claim. In February 2018, PTGI filed a Judicial Review with the Supreme Court of Indonesia. In the event that the revocation of the wavier is upheld by the Supreme Court and a liability arises, which we do not believe to be probable, we believe PTGI will be indemnified by PTNR for any VAT liability as well as related interest and penalties under our time charter party agreement entered into with them. |
UNIT-BASED COMPENSATION
UNIT-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
UNIT-BASED COMPENSATION | UNIT-BASED COMPENSATION The Golar LNG Partners LP Long Term Incentive Plan (the “GMLP LTIP”) was adopted by our board of directors, effective as of May 30, 2016. The maximum aggregate number of common units that may be delivered pursuant to any and all awards under the GMLP LTIP shall not exceed 500,000 common units, subject to adjustment due to recapitalization or reorganization as provided under the GMLP LTIP. The GMLP LTIP allows for grants of (i) unit options, (ii) unit appreciation rights, (iii) restricted unit awards, which may include tandem unit distribution rights, (iv) phantom units, (v) unit awards, (vi) other unit-based awards, (vii) cash awards, (viii) distribution equivalent rights (whether granted alone or in tandem with another award, other than a restricted Unit or Unit award), (ix) substitute awards and (x) performance-based awards. Either authorized unissued shares or treasury shares (if there are any) in the Partnership may be used to satisfy exercised options. As of December 31, 2017, 99,000 options to purchase common units had been awarded to our directors and management under the GMLP LTIP. The options had an exercise price of $20.55 per unit, representing the closing price of the common units on November 17, 2016, the grant date and a contractual term of five years. The exercise price will be adjusted for each time we pay distributions. One third of the options vested in November 2017, the second third will vest in November 2018 and the final third will vest in November 2019. The fair value of each option award is estimated on the grant date or modification date using the Black-Scholes option pricing model based on the following assumptions as of the grant date: 2017 2016 Risk free interest rate 1.5 % 1.5 % Expected volatility of common units (1) 44.8 % 44.8 % Expected dividend yield (2) 0.0 % 0.0 % Expected life of options (in years) 5.0 years 5.0 years (1) The assumption for expected future volatility is based primarily on an analysis of historical volatility of our common units. (2) The dividend yield has been estimated at 0.0% as the exercise price of the options are reduced by the value of distributions, declared and paid on a per unit basis. A summary of option activity for the year ended December 31, 2017 is presented below: (in thousands of $, except per unit data) Units (in '000s) Weighted average exercise price Weighted average remaining contractual term (years) Options outstanding at December 31, 2016 75 $ 20.55 4.9 Granted during the year 24 20.55 Options outstanding at December 31, 2017 99 $ 18.24 3.9 There were 33,000 options exercisable at December 31, 2017 at an exercise price of $18.24 as adjusted for cash distributions paid on our common units. Such options had a remaining contractual term of 3.9 years (2016: nil). As at December 31, 2017 , the intrinsic value of unit options that were both outstanding and exercisable was $0.2 million ( 2016 : $ nil ). The total fair value of unit options which fully vested in the years ended December 31, 2017 and 2016 was $0.2 million and $ nil , respectively. Compensation cost of $239,000 and $23,000 related to the options has been recognized in the consolidated statement of operations for the years ended December 31, 2017 and 2016, respectively. As of December 31, 2017 , the total unrecognized compensation cost amounting to $0.4 million relating to unit options outstanding is expected to be recognized over a weighted average period of 1.9 years . |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2017 | |
Partners' Capital Notes [Abstract] | |
EQUITY | EQUITY At December 31, 2017, a total of 69.6% (2016: 67.5% ) of the Partnership's common units outstanding were held by the public. The remaining common units were held by Golar and the 2% general partner interest was held by our General Partner. All of the Partnership's outstanding Series A Cumulative Redeemable Preferred Units (the “Series A Preferred Units”) are held by the public. Rights and Obligations of Partnership Units • Common units . Common units represent limited partner interests in us. 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 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. Subordinated units represented limited partner interests in us. Subordinated units had limited voting rights and most notably were excluded from voting in the election of the elected directors. During the subordination period, the common units had preferential distribution rights to the subordinated units. The subordination period ended on June 30, 2016, on which date all our subordinated units, which were 100% held by Golar, converted to common units. • General partner 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, subject to the rights of the holders of Series A Preferred Units in certain instances, the General Partner in its sole discretion appoints three of the seven members of the Board. • 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 (see note 28). Pursuant to the Partnership Agreement, the IDRs are transferable without unitholder approval. • Series A Preferred Units . The Series A Preferred Units represent perpetual equity interests in us and, unlike our indebtedness, will not give rise to a claim for payment of a principal amount at a particular date. Series A Preferred Units have the voting rights described below under “Series A Preferred Units”. The Series A Preferred Units have preferential distribution rights to our common units and rank junior to all of our indebtedness as set forth below. For additional information regarding the common units, general partner units, IDRs and Series A Preferred Units, please see our Registration Statement on Form 8-A/A filed on November 13, 2017. Equity Issuances The following table shows the movement in the number of preferred units, common units, subordinated units and general partner units during the years ended December 31, 2017 , 2016 and 2015 : (in units) Preferred Units Common Units Subordinated Units GP Units December 31, 2014 — 45,663,096 15,949,831 1,257,408 December 2015 common unit repurchase program — (496,000 ) — — December 31, 2015 — 45,167,096 15,949,831 1,257,408 January 2016 common unit repurchase program — (38,000 ) — — June 2016 conversion of subordinated units — 15,949,831 (15,949,831 ) — October 2016 IDR reset — 2,994,364 — 61,109 December 31, 2016 — 64,073,291 — 1,318,517 February 2017 common unit offering — 5,175,000 — 94,714 October 2017 preferred units offering 5,520,000 — — — November 2017 earn-out units conversion (1st tranche) — 374,295 7,639 During 2017 common unit continuous offering program — 145,675 — 2,973 December 31, 2017 5,520,000 69,768,261 — 1,423,843 In December 2015, our Board approved a program to repurchase up to $25.0 million of our outstanding common units in the open market over a two year period. As of December 31, 2017 , we had repurchased a total of 534,000 units under the common unit repurchase program for an aggregate cost of $6.5 million . In accordance with our provisions of the Partnership Agreement, all common units repurchased are deemed canceled and not outstanding, with immediate effect. In June 2016, our Board determined that the conditions precedent for the expiration of the subordination period set forth in the definition of “Subordination Period” contained in the Partnership Agreement were satisfied, and on June 30, 2016, all 15,949,831 subordinated units (all of which were held by Golar) were converted into common units on a one -for-one basis. In September 2017, we entered into an equity distribution agreement with a sales agent pursuant to which we may, from time to time issue common units with an aggregate offering price of up to $150 million (the “ATM Program”). We sold 145,675 common units in December 2017, at an average gross sales price of $22.79 per unit, for which we received $3.3 million . In connection with such sales, our General Partner purchased 2,973 general partner units at an average price of $22.79 per unit. The following table summarizes public offerings of our equity during the year ended December 31, 2017 : Date Number of Units Issued Type of units Offering Price Net Proceeds (in thousands of $) Golar’s Ownership after the Offering (2) Use of Proceeds February 2017 5,175,000 Common $ 22.67 118,774 31.51 % General partnership purposes and a portion of the deposit for the Hilli Acquisition October 2017 5,520,000 Preferred $ 25.00 132,991 31.51 % General partnership purposes December 2017 145,675 Common (3) $ 22.79 3,275 31.82 % General partnership purposes _________________________________________ (1) Includes General Partner's 2% proportionate capital contribution. (2) Includes Golar's 2% general partner interest in the Partnership and common unit ownership. (3) Refers to issuances under our common unit continuous (“ATM”) offering program. Exchange of Incentive Distribution Rights On October 19, 2016 (the “IDR Exchange Closing Date”), pursuant to the terms of an Exchange Agreement (the “Exchange Agreement”), dated as of October 13, 2016, by and between the Partnership, Golar and our General Partner, Golar and our General Partner exchanged all of their incentive distribution rights in the Partnership (“Old IDRs”) for (i) the issuance by us on the IDR Exchange Closing Date of a new class of incentive distribution rights in the Partnership (“New IDRs”), (ii) an aggregate of 2,994,364 additional common units and an aggregate of 61,109 additional general partner units and (iii) the issuance in the future of an aggregate of up to 748,592 additional common units and up to 15,278 additional general partner units (collectively, the “Earn-Out Units”) that may be issued subject to certain conditions described below. The new IDRs result in the minimum distribution level increasing from $0.3850 per common unit to $0.5775 per common unit. The fair value of the Old IDRs is not materially different to the fair value of all of the newly issued instruments. On the IDR Exchange Closing Date (i) the Old IDRs were exchanged by Golar and the General Partner and cancelled by us, (ii) 100% of the New IDRs were issued to the General Partner and Golar, (iii) 2,425,435 and 568,929 additional common units were issued to the General Partner and Golar, respectively, and (iv) 61,109 general partner units were issued to the General Partner. As of November 14, 2017 we had paid a distribution of available cash from operating surplus pursuant to the terms of our Second Amended and Restated Partnership Agreement, on each of the outstanding common units equal to or greater than $0.5775 per common unit in respect of each of the quarterly periods ended December 31, 2016, March 31, 2017, June 30, 2017 and September 30, 2017. Accordingly, we issued 50% of the Earn-Out Units - 374,295 common units and 7,639 general partner units to Golar and the General Partner, respectively. We will issue the remaining 50% of the Earn-Out Units if we pay a distribution of available cash from operating surplus on each of the outstanding common units equal to or greater than $0.5775 per common unit in respect of each of the quarterly periods ended December 31, 2017, March 31, 2018, June 30, 2018 and September 30, 2018. In relation to our IDR reset transaction we accounted for this as a modification of the Old IDRs and determined that the earn-out units met the definition of a derivative. Accordingly, the overall effect of the transaction was (i) reclassification of the initial fair value of the derivative from equity to current liabilities of $15.0 million ; (ii) reallocation between unitholders within equity due to the recognition of the incremental fair value of the modification and fair values of newly issued instruments and resulting deemed distribution. The fair value of the Earn-Out Units at December 31, 2017 amounted to $7.4 million . This followed the issuance of the first 50% of the earn-out units which were valued at $8.0 million and thus transferred to equity in November 2017 (see note 23). Series A Preferred Units Our 8.75% Series A Cumulative Redeemable Preferred Units are listed on the Nasdaq Global Market under the symbol “GMLPP”. On October 31, 2017 we sold in a registered public offering 5,520,000 of our Series A Preferred Units, liquidation preference $25.00 per unit. We raised proceeds, net of the underwriters discounts and offering fees, of approximately $133.0 million . The Series A Preferred Units rank: • senior to our common units and to each other class or series of limited partner interests or other equity securities established after the original issue date of the Series A Preferred Units that is not expressly made senior to or on parity with the Series A Preferred Units as to the payment of distributions and amounts payable upon liquidation, dissolution or winding up, whether voluntary or involuntary (“Junior Securities”); • pari passu with any class or series of limited partner interests or other equity securities established after the original issue date of the Series A Preferred Units with terms expressly providing that such class or series ranks on a parity with the Series A Preferred Units as to the payment of distributions and amounts payable upon liquidation, dissolution or winding up, whether voluntary or involuntary (“Parity Securities”); • junior to all of our indebtedness and other liabilities with respect to assets available to satisfy claims against us; and • junior to each other class or series of limited partner interests or other equity securities expressly made senior to the Series A Preferred Units as to the payment of distributions and amounts payable upon liquidation, dissolution or winding up, whether voluntary or involuntary (“Senior Securities”). The Series A Preferred Units have no conversion or exchange rights and are not subject to any preemptive rights. Distributions on the Series A Preferred Units are payable out of amounts legally available therefor at a rate equal to 8.75% per annum of the stated liquidation preference. Distributions are payable quarterly in arrears on the 15 th day of February, May, August and November of each year, when, as and if declared by our Board. The first distribution on the Series A Preferred Units was paid on February 15, 2018 in an amount equal to $0.63802 per unit, representing accumulated distributions from October 31, 2017, the original issuance date of the Series A Preferred Units through February 14, 2018. The Series A Preferred Units generally have no voting rights. However, if and whenever distributions payable on the Series A Preferred Units are in arrears for six or more quarterly periods, whether or not consecutive, holders of Series A Preferred Units, voting as a class together with the holders of any Parity Securities upon which like voting rights have been conferred and are exercisable, will have the right to replace one of the members of our Board appointed by our General Partner with a person nominated by such holders (unless the holders of Series A Preferred Units and Parity Securities upon which like voting rights have been conferred voting as a class, have previously elected a member of our Board, and such director continues then to serve on the Board). Distributions payable on the Series A Preferred Units will be considered to be in arrears for any quarterly period for which full cumulative distributions through the most recent distribution payment date have not been paid on all outstanding Series A Preferred Units. The right of such holders of Series A Preferred Units to elect a member of our Board will continue until such time as all accumulated and unpaid distributions on the Series A Preferred Units have been paid in full. In addition, unless we have received the affirmative vote or consent of the holders of at least two-thirds of the outstanding Series A Preferred Units, voting as a single class, our Board may not adopt any amendment to our partnership agreement that would have a material adverse effect on the existing terms of the Series A Preferred Units. In addition, unless we have received the affirmative vote or consent of the holders of at least two-thirds of the outstanding Series A Preferred Units, voting as a class together with holders of any other Parity Securities upon which like voting rights have been conferred and are exercisable, we may not (i) issue any Parity Securities if the cumulative distributions on Series A Preferred Units are in arrears or (ii) create or issue any Senior Securities. In the event of a liquidation, dissolution or winding up of our affairs, whether voluntary or involuntary, holders of Series A Preferred Units will have the right to receive a liquidation preference of $25.00 per unit plus an amount equal to all accumulated and unpaid distributions thereon to the date of payment, whether declared or not. These payments will be paid before any payments are paid to our common unitholders. At any time on or after October 31, 2022, we may redeem, in whole or in part, the Series A Preferred Units at a redemption price of $25.00 per unit plus an amount equal to all accumulated and unpaid distributions thereon on the date of redemption, whether declared or not. Any such redemption will be effected from funds legally available for such purpose. We must provide not less than 30 days’ and not more than 60 days’ written notice of any such redemption. |
EARNINGS PER UNIT AND CASH DIST
EARNINGS PER UNIT AND CASH DISTRIBUTIONS | 12 Months Ended |
Dec. 31, 2017 | |
EARNINGS PER UNIT AND CASH DISTRIBUTIONS [Abstract] | |
EARNINGS PER UNIT AND CASH DISTRIBUTIONS | 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 common unit are presented below: (in thousands of $ except unit and per unit data) 2017 2016 2015 Common unitholders’ interest in net income 124,656 139,948 106,476 Less: distributions paid (1) (160,069 ) (151,694 ) (103,241 ) (Over) / under distributed earnings (35,413 ) (11,746 ) 3,235 Basic: Weighted average common units outstanding (in thousands) 68,671 53,745 45,654 Diluted: Weighted average common units outstanding (in thousands) 68,671 53,745 45,654 Earn-out units 654 189 — Common unit and common unit equivalents 69,325 53,934 45,654 Earnings per unit - Common unitholders : Basic $ 1.82 $ 2.44 $ 2.38 Diluted 1.80 2.43 2.38 Cash distributions declared and paid in the period per common unit (2) 2.31 2.31 2.30 Subsequent event: Cash distributions declared and paid per common unit relating to the period (3) 0.58 0.58 0.58 __________________________________________ (1) This refers to distributions made or to be made to the common unitholders in relation to the period irrespective of the declaration and payment dates and based on the weighted average number of units outstanding in the period. (2) Refers to cash distributions declared and paid during the period. (3) Refers to cash distributions relating to the period, declared and paid subsequent to the period end. As of December 31, 2017 , of our total number of common units outstanding, 69.6% ( 2016 : 67.5% ) were held by the public and the remaining common units were held by Golar. Earnings per common unit is calculated using the two class method. Basic earnings per common unit is determined by adjusting net income for the period by distributions made or to be made in relation to the period. Any undistributed earnings for the period are allocated to the various unitholders based on the distribution waterfall for cash available for distribution as specified in 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. Diluted earnings per common unit reflect the potential dilution that occur if securities or other contracts to issue common units were exercised. The various partnership interests in net income were 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 to (i) provide for the proper conduct of our business, among other things, including reserves for maintenance and replacement capital expenditure and anticipated credit needs; (ii) comply with applicable law and our debt and other agreements; (iii) provide funds for payments on the Series A Preferred Units and (iv) provide funds for distributions to unitholders for any one or more of the next four quarters. In addition, the holders of the incentive distribution rights are currently entitled to incentive distributions if the amount we distribute to unitholders 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 our Partnership Agreement, we make distributions of available cash from operating surplus for any quarter as set forth in the following table. The following table illustrates the percentage allocations of the additional available cash from operating surplus among the common unitholders, our General Partner and the holders of the IDRs up to the various target distribution levels. The amounts set forth under “Marginal Percentage Interest in Distributions” are the percentage interests of the common unitholders, our General Partner and the holders of the IDRs in any available cash from operating surplus we distribute up to and including the corresponding amount in the column “Total Quarterly Distribution Target Amount,” until available cash from operating surplus we distribute reaches the next target distribution level, if any. The percentage interests shown for the common unitholders, our General Partner and the holders of the IDRs for the minimum quarterly distribution are also applicable to quarterly distribution amounts that are less than the minimum quarterly distribution. The percentage interests shown for our General Partner include its 2.0% general partner interest only and assume that our General Partner has contributed any capital necessary to maintain its 2.0% general partner interest. Marginal Percentage Interest in Distributions Quarterly Distribution Target Amount (per unit) Common Unitholders General Partner Holders of IDRs Minimum Quarterly Distribution $ 0.5775 98 % 2 % — First Target Distribution up to $0.6641 98 % 2 % — Second Target Distribution above $0.6641 up to $0.7219 85 % 2 % 13 % Third Target Distribution above $0.7219 up to $0.8663 75 % 2 % 23 % Thereafter above $0.8663 50 % 2 % 48 % The percentage interests set forth above assume that our General Partner maintains its 2.0% general partner interest and that we do not issue additional classes of equity securities. The Series A Preferred Units rank senior to our common units as to the payment of distributions and amounts payable upon liquidation, dissolution or winding up, whether voluntary or involuntary. See Note 27. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS In January 2018, we entered into a 15 -year time charter with an energy and logistics company (the “New Charter”) in the Atlantic Basin which is expected to commence in the fourth quarter of 2018 . In January 2018, we sold 617,969 common units under our ATM Program. To maintain its 2% general partner interest, our General Partner purchased 12,548 general partner units. We received proceeds of $14.4 million net of agent’s fees from the ATM Program in January. In February 2018 , we paid a cash distribution of $0.5775 per common unit in respect of the three months ended December 31, 2017 to unitholders of record as of February 7, 2018. We also paid a cash distribution of $0.63802 per Series A Preferred Unit for the period from October 31, 2017 through February 14, 2018 to our Series A Preferred unitholders of record as of February 8, 2018. In February 2018, we entered into an interest rate swap with Citibank for a period of 8 years that is effective on March 31, 2018. The swap has a notional value of $480.0 million , and will exchange the 3-month USD LIBOR rate for a blended fixed rate of 2.86% . In March 2018, our Board approved a common unit repurchase program of up to $25.0 million of the outstanding common units of the Partnership in the open market over a two year period. As of April 6, 2018 , we had repurchased a total of 439,672 common units for an aggregate cost of $8.0 million . In March 2018, we made a repayment of $75.0 million of the revolving credit facility under our $800 million credit facility. In March 2018, Brian Tienzo replaced Graham Robjohns as our Principal Executive Officer. Mr. Robjohns will serve as the Chief Financial Officer and Deputy Chief Executive Officer of Golar, having served as our Principal Executive Officer since July 2011. In addition to serving as our Principal Executive Officer, Mr. Tienzo will continue to serve as our Principal Financial and Accounting Officer. In March 2018, we entered into an agreement extending the maturity of the NR Satu Facility to the earlier of (i) November 30, 2022; (ii) the expiration date of the NR Satu Charter; or (iii) when all the amounts outstanding under the NR Satu Facility have been repaid. |
BASIS OF PREPARATION AND SUMM39
BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of preparation | Basis of preparation These consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. |
Principles of consolidation | Principles of consolidation 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 financial statements include the financial statements of the entities listed in notes 4 and 5. 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”. |
Foreign currencies | Foreign currencies We 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. |
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. In consolidating VIEs, on a quarterly basis, we must make assumptions regarding the debt amortization profile and the interest rate to be applied against the VIEs’ debt principal. Our estimates are therefore dependent upon the timeliness of receipt and accuracy of financial information provided by these lessor VIE entities. Upon receipt of the audited annual financial statements of VIEs, we will make a true-up adjustment for any material differences. In assessing the recoverability of our vessels’ carrying amounts, we make assumptions regarding estimated future cash flows, estimates in respect of residual or scrap value, charter rates, ship operating expenses, utilization and drydocking requirements. |
Business combinations | Business combinations 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. Identifiable assets acquired and liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The results of subsidiary undertakings are included from the date of acquisition. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, we will recognize a measurement-period adjustment during the period in which we determine the amount of the adjustment, including the effect on earnings of any amounts we would have recorded in previous periods if the accounting had been completed at the acquisition date. |
Revenue and expense recognition | Revenue and expense recognition Revenues include minimum lease payments under time charters, fees for repositioning vessels. Revenues generated from time charters, which we classify as operating leases, are recorded over the term of the charter as service is provided. However, we do not recognize revenue if a charter has not been contractually committed to by a customer and ourselves, even if the vessel has discharged its cargo and is sailing to the anticipated load port on its next voyage. Repositioning fees (included in time and voyage charter revenues) 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. Reimbursement for drydocking costs is recognized evenly over the period to the next drydocking, which is generally 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 | 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. |
Operating leases | Operating leases Initial direct costs (those directly related to the negotiation and consummation of the lease) are deferred and allocated to earnings over the lease term. Rental income and expense are amortized over the lease term on a straight-line basis. |
Income taxes | Income taxes Income taxes are based on a separate return basis. The guidance on 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 Statements of Operations. |
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 deposits | Restricted cash and short-term deposits Restricted cash and short-term deposits 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 and cash held by VIE. We consider all short-term deposits as held to maturity. These deposits are carried at amortized cost. We place our short-term deposits primarily in fixed term deposits with high credit quality financial institutions. |
Trade accounts receivable | Trade accounts receivable 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 allowance for doubtful accounts. |
Inventories | Inventories Inventories, which are comprised principally of fuel, lubricating oils and vessel 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 aluminum times the weight of the vessel noted in lightweight tons. Residual values are periodically reviewed and revised to recognize changes in conditions, new regulations or other reasons. The 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 every five years. For vessels that are newly built or acquired, we have adopted the “built-in overhaul” method of accounting. The built-in overhaul method is based on the segregation of vessel costs into those that should be depreciated over the useful life of the vessel and those that require drydocking at periodic intervals to reflect the different useful lives of the components of the assets. The estimated cost of the drydocking component is amortized until the date of the first drydocking following acquisition, upon which the cost is capitalized and the process is repeated. When a vessel is disposed, any unamortized drydocking expenditure is charged against income in the period of disposal. |
Vessel under capital lease | Vessel under capital lease We lease one vessel under an agreement that has been accounted for as a capital lease. Obligations under capital lease are 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 22). Amortization of deferred income is offset against depreciation and amortization expense in the statement of operations. |
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. |
Impairment of long-lived 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, an impairment loss shall be measured as the amount by which the carrying amount of a long-lived asset (asset group) exceeds its fair value. |
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 under the effective interest method. Amortization of debt issuance cost is included in interest expenses. These costs are presented as a deduction from the corresponding liability, consistent with debt discounts. |
Provisions | Provisions In the ordinary course of business, we are subject to various claims, suits and complaints. Management, in consultation with internal and external advisers, will provide for a contingent loss in the financial statements if the contingency 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. |
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 fair value 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. 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 swaps (including our cross currency 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. |
Unit-based compensation | Unit-based compensation In accordance with the guidance on “Share Based Payment”, we are required to expense the fair value of unit options issued to employees over the period the options vest. We amortize unit-based compensation for awards on a straight-line basis over the period during which the employee is required to provide service in exchange for the reward - the requisite service (vesting) period. No compensation cost is recognized for unit options for which employees do not render the requisite service. The fair value of employee unit options is estimated using the Black-Scholes option-pricing model. |
Fair value measurements | 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. |
New accounting pronouncements | Accounting pronouncements that have been issued but not adopted In May 2014, the Financial Accounting Standards Board (the “FASB”) issued accounting standards update (“ASU”) 2014-09 “ Revenue from Contracts With Customers (Topic 606) ” and subsequent amendments. The standard provides a single, comprehensive revenue recognition model and requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance is effective on either a full or modified retrospective basis for us on January 1, 2018. There will be no impact on the adoption of this standard on our Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02 “ Leases (Topic 842) ” and subsequent amendments. The standard requires a lessee to recognize right-of-use assets and lease liabilities on its balance sheet for all leases with terms longer than 12 months and introduces additional disclosure requirements. Lessors are required to classify leases as sales-type, finance or operating, with classification affecting the pattern of income recognition and provides guidance for sale and leaseback transactions. Classification for both lessees and lessors will be based on an assessment of whether risks and rewards as well as substantive control have been transferred through a lease contract. The standard will become effective on a modified retrospective basis for us on January 1, 2019. We are evaluating the impact of this standard on our Consolidated Financial Statements and related disclosures. Due to the transition provisions for lessors, the most significant impact of the adoption of this standard will be the recognition of lease assets and lease liabilities on our balance sheet for those leases where we are a lessee that are currently classified as operating leases. In June 2016, the FASB issued ASU 2016-13 “ Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ” which requires recognition and measurement of expected credit losses for financial assets and off balance sheet credit exposures. The guidance is effective on a modified retrospective basis for us on January 1, 2020 with early adoption permitted. We are evaluating the impact of this standard on our Consolidated Financial Statements and related disclosures. In August 2016, the FASB issued ASU 2016-15 “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments ”, which among other things, provides guidance on two acceptable approaches of classifying distributions received from equity method investees in the statement of cash flows. The guidance is effective on a retrospective basis for us on January 1, 2018 and results in presentational changes to our Consolidated Statement of Cash Flows. In November 2016, the FASB issued ASU 2016-18 “ Statement of Cash Flows (Topic 230): Restricted Cash ”, which requires that restricted cash be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts presented on the statement of cash flows. The guidance is effective on a retrospective basis for us on January 1, 2018 and results in presentational changes to our Consolidated Statement of Cash Flows and related disclosures. In January 2017, the FASB issued ASU 2017-01 “ Business Combinations (Topic 805): Clarifying the Definition of a Business ” which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance is effective on a prospective basis for us on January 1, 2018. As a result, this increases the likelihood that future vessel dropdowns may be considered the acquisition of an asset rather than a business combination. However, this will be dependent upon the facts and circumstances of each prospective transaction. We do not expect material impact on the adoption of this guidance on our Consolidated Financial Statements and disclosures for prospective dropdowns will be significantly reduced. |
BASIS OF PREPARATION AND SUMM40
BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | As of December 31, 2017 , 2016 and 2015 , our accumulated other comprehensive loss relates to unrealized net losses on qualifying cash flow hedges. (in thousands of $) 2017 2016 2015 Unrealized net loss on qualifying cash flow hedging instruments 26 (5,053 ) (9,725 ) |
Schedule of Useful Lives Applied in Depreciation | Useful lives applied in depreciation are as follows: Vessels (excluding converted FSRUs) 40 years Vessels - Converted FSRUs 20 years from conversion date Drydocking expenditure 5 years Mooring equipment 11 years |
SUBSIDIARIES (Tables)
SUBSIDIARIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Significant Subsidiaries | The following table lists our significant subsidiaries and their purpose as of December 31, 2017 . Unless otherwise indicated, we own 100% of each subsidiary. Name Jurisdiction of Incorporation Purpose 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 Golar Servicos de Operacao de Embaracaoes Limited Brazil Management Company Golar Winter Corporation Marshall Islands Owns Golar Winter Golar Winter UK Ltd United Kingdom Operates Golar Winter Golar Spirit Corporation Marshall Islands Owns Golar Spirit Golar Spirit UK Ltd United Kingdom Operates Golar Spirit Faraway Maritime Shipping Company (60% ownership) Republic of Liberia Owns and operates Golar Mazo Golar LNG 2215 Corporation Marshall Islands Leases Methane Princess Golar 2215 UK Ltd United Kingdom Operates Methane Princess Golar Freeze Holding Corporation Marshall Islands Owns Golar Freeze Golar Freeze UK Ltd United Kingdom Operates Golar Freeze 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 Grand Corporation Marshall Islands Owns and operates Golar Grand Golar LNG 2234 LLC Republic of Liberia Owns and operates Golar Maria Golar Hull M2031 Corporation Marshall Islands Owns and operates Golar Igloo Golar Eskimo Corporation** Marshall Islands Leases and operates Golar Eskimo __________________________________________ * 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. ** The above table excludes Eskimo SPV, from which we leased one of our vessels, the Golar Eskimo , under a sale and leaseback. See note 5. |
VARIABLE INTEREST ENTITIES ("42
VARIABLE INTEREST ENTITIES ("VIEs") (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
VARIABLE INTEREST ENTITIES [Abstract] | |
Schedule of Sale Leaseback Transactions | The following table gives a summary of the sale and leaseback arrangement, including repurchase options and obligation as of December 31, 2017 : Vessel Effective from Sales value (in $ millions) First repurchase option (in $ millions) Month of first repurchase option Repurchase obligation at end of lease term (in $ millions) End of lease term Golar Eskimo November 2015 285.0 225.8 November 2018 128.3 November 2025 |
Summary of the Bareboat Charter Rates Per Day Based on Base LIBOR Interest Rate for the Next Five Years | A summary of our payment obligations under the bareboat charter with Eskimo SPV as of December 31, 2017 is shown below: (in $ thousands) 2018 2019 2020 2021 2022 After 2022 Golar Eskimo* 25,930 25,798 25,026 23,919 22,789 58,826 *The payment obligation table above includes variable rental payments due under the lease based on an assumed LIBOR plus margin but excludes the repurchase obligation at the end of lease term. |
Schedule of Variable Interest Entities | The most significant impact of consolidation of Eskimo SPV’s assets and liabilities on our consolidated balance sheet is as follows: (in $ thousands) 2017 2016 Liabilities Long-term debt (refer to note 20) 212,084 232,931 |
Balance Sheet of Variable Interest Entity | The following table summarizes the balance sheets of PTGI as of December 31, 2017 and 2016 : (in thousands of $) 2017 2016 ASSETS Cash 16,016 14,124 Restricted cash (see note 16) 10,270 10,361 Vessels and equipment, net* 269,624 290,638 Other assets 4,348 12,121 Total assets 300,258 327,244 LIABILITIES AND EQUITY Accrued liabilities 11,675 9,989 Current portion of long-term debt 19,759 13,633 Amounts due to related parties 107,838 135,809 Non-current debt 82,741 102,500 Other liabilities 515 68 Total liabilities 222,528 261,999 Total equity 77,730 65,245 Total liabilities and equity 300,258 327,244 *PTGI recorded the NR Satu at the acquisition price when it purchased the vessel from a Golar related party entity. However, as of the date of the acquisition of the subsidiaries which own and operate the NR Satu , the acquisition was deemed to be a reorganization of entities under common control, and accordingly, we recorded the NR Satu at historical book values. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | As a result of the change to two reportable segments, the segment information for the years ended December 31, 2016 and 2015 have been retrospectively restated. 2017 2016 2015 (in thousands of $) FSRU LNG Carrier Unallocated/ Elimination (1) Total FSRU LNG Carrier Unallocated/ Elimination (1) Total FSRU LNG Carrier Unallocated/ Elimination (1) Total Statement of operations: Operating revenues 316,599 116,503 — 433,102 322,373 119,225 — 441,598 307,344 127,343 — 434,687 Depreciation and amortization (80,762 ) (23,048 ) — (103,810 ) (78,025 ) (22,443 ) — (100,468 ) (77,036 ) (22,220 ) — (99,256 ) Other operating expenses (2) (66,364 ) (26,818 ) — (93,182 ) (54,706 ) (19,754 ) — (74,460 ) (54,481 ) (25,130 ) — (79,611 ) Operating income 169,473 66,637 — 236,110 189,642 77,028 — 266,670 175,827 79,993 — 255,820 Other non-operating income 922 — — 922 1,318 — — 1,318 — — — — Balance sheet: Total assets (3) 1,149,595 545,225 732,551 2,427,371 1,206,186 557,682 488,840 2,252,708 1,271,650 575,725 384,287 2,231,662 Capital expenditure (4) 11,226 11,215 — 22,441 344 5,026 — 5,370 309,225 2,043 — 311,268 (1) Relates to items not allocated to a segment, but included for reconciliation purposes; and eliminations required for consolidation purposes. (2) Includes direct general and administrative expenses and indirect general and administrative expenses (allocated to each segment based on the number of vessels). (3) Total assets by segment refers to our principal asset being that of our vessels. (4) The capital expenditure for the FSRU segment in the year ended December 31, 2015 includes the fair value of the FSRU, the Golar Eskimo, acquired as part of a business combination (see Note 10). |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | As a result of the change to two reportable segments, the segment information for the years ended December 31, 2016 and 2015 have been retrospectively restated. 2017 2016 2015 (in thousands of $) FSRU LNG Carrier Unallocated/ Elimination (1) Total FSRU LNG Carrier Unallocated/ Elimination (1) Total FSRU LNG Carrier Unallocated/ Elimination (1) Total Statement of operations: Operating revenues 316,599 116,503 — 433,102 322,373 119,225 — 441,598 307,344 127,343 — 434,687 Depreciation and amortization (80,762 ) (23,048 ) — (103,810 ) (78,025 ) (22,443 ) — (100,468 ) (77,036 ) (22,220 ) — (99,256 ) Other operating expenses (2) (66,364 ) (26,818 ) — (93,182 ) (54,706 ) (19,754 ) — (74,460 ) (54,481 ) (25,130 ) — (79,611 ) Operating income 169,473 66,637 — 236,110 189,642 77,028 — 266,670 175,827 79,993 — 255,820 Other non-operating income 922 — — 922 1,318 — — 1,318 — — — — Balance sheet: Total assets (3) 1,149,595 545,225 732,551 2,427,371 1,206,186 557,682 488,840 2,252,708 1,271,650 575,725 384,287 2,231,662 Capital expenditure (4) 11,226 11,215 — 22,441 344 5,026 — 5,370 309,225 2,043 — 311,268 (1) Relates to items not allocated to a segment, but included for reconciliation purposes; and eliminations required for consolidation purposes. (2) Includes direct general and administrative expenses and indirect general and administrative expenses (allocated to each segment based on the number of vessels). (3) Total assets by segment refers to our principal asset being that of our vessels. (4) The capital expenditure for the FSRU segment in the year ended December 31, 2015 includes the fair value of the FSRU, the Golar Eskimo, acquired as part of a business combination (see Note 10). |
Revenue by Major Customer | In the years ended December 31, 2017 , 2016 and 2015 , revenues from each of the following customers (included in the FSRU segment) accounted for over 10% of our consolidated revenues: (in thousands of $) 2017 2016 2015 Petrobras 94,588 22 % 103,368 23 % 100,052 23 % PTNR 72,495 17 % 67,774 15 % 67,325 15 % Jordan 57,144 13 % 57,112 13 % 37,750 9 % KNPC 47,645 11 % 47,654 11 % 47,402 11 % DUSUP 44,726 10 % 46,465 11 % 41,970 10 % |
Revenues and Fixed Assets with Respect to Geographical Area | The following geographical data presents our revenues from customers and fixed assets with respect only to our FSRUs, while 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 (in thousands of $) 2017 2016 2015 Brazil 94,588 103,368 100,052 Indonesia 72,495 67,774 67,325 Jordan 57,144 57,112 37,750 Kuwait 47,645 47,654 47,402 United Arab Emirates 44,726 46,465 41,970 Fixed assets (in thousands of $) 2017 2016 Brazil 223,900 347,366 Jordan 269,846 278,588 Kuwait 259,310 267,055 Indonesia 177,205 191,139 United Arab Emirates 108,776 122,078 |
OTHER FINANCIAL ITEMS, NET (Tab
OTHER FINANCIAL ITEMS, NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
OTHER FINANCIAL ITEMS, NET [Abstract] | |
Schedule of Other financial Items [Table Text Block] | (in thousands of $) 2017 2016 2015 Mark-to-market adjustment for interest rate swap derivatives 12,074 9,893 655 Interest expense on un-designated interest rate swaps (7,554 ) (10,824 ) (14,385 ) Losses on repurchase of 2012 High-Yield Bonds and related cross currency interest rate swap (1) (6,506 ) — — Premium paid on repurchase of 2012 High Yield Bond (2,820 ) — — Financing arrangement fees and other costs (1,283 ) (1,468 ) (1,694 ) Foreign exchange (loss)/gain on capital lease obligations and related restricted cash (659 ) 945 492 Mark-to-market adjustment on Earn-Out Units (2) (441 ) — — Foreign exchange loss on operations (378 ) (1,291 ) (2,235 ) Mark-to-market adjustment for currency swap derivative — — 16 Total (7,567 ) (2,745 ) (17,151 ) (1) This includes foreign exchange loss of $6.2 million arising from the repurchase of our 2012 High-Yield Bonds and the reclassification of a $5.0 million loss from the Accumulated Other Comprehensive Loss upon cessation of hedge accounting for the re l ated cross currency interest rate swap. This is partially offset by the $4.7 million mark to market gain on the cross currency interest rate swaps. (2) This relates to the mark-to-market movement on the Earn-Out Units issued in connection with the IDR reset transaction in October 2016 which were recognized as a derivative liability in our consolidated balance sheet. See notes 23 and 27. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Credit) | The components of income tax expense/(credit) are as follows: (in thousands of $) 2017 2016 2015 Current tax expense/(credit): United Kingdom 469 411 (1,098 ) Indonesia 5,584 5,579 3,641 Brazil 1,160 1,350 716 Kuwait 2,144 2,146 2,133 Barbados 468 — — Total current tax expense 9,825 9,486 5,392 Deferred tax expense/(income): Indonesia 5,086 5,304 (869 ) Jordan 2,085 2,068 1,146 Total income tax expense 16,996 16,858 5,669 |
Schedule of Effective Income Tax Rate Reconciliation | The income taxes for the years ended December 31, 2017 , 2016 and 2015 differed from the amounts computed by applying the Marshall Islands statutory income tax rate of 0% as follows: (In thousands of $) 2017 2016 2015 Effect of change on uncertain tax positions relating to prior year 685 133 (1,894 ) Effect of recognition of deferred tax asset — — (4,945 ) Effect of taxable income in various countries 16,311 16,725 12,508 Total tax expense 16,996 16,858 5,669 |
Schedule of Earliest Open Tax Periods | The following table summarizes the earliest tax year that remain subject to examination by the major taxable jurisdictions in which we operate: Jurisdiction Earliest UK 2015 Brazil 2012 Indonesia 2016 Kuwait 2017 Jordan 2015 Barbados 2017 |
Schedule of Deferred Tax Assets and Liabilities | Deferred taxes are classified as follows: Indonesia (in thousands of $) 2017 2016 Deferred tax asset — 5,086 Jordan (in thousands of $) 2017 2016 Deferred tax asset 250 534 Deferred tax liability (5,545 ) (3,744 ) Net deferred tax liability (5,295 ) (3,210 ) A reconciliation of deferred tax assets and deferred tax liability, net, are shown below: Indonesia (in thousands of $) 2017 2016 2015 Balance at January 1 5,086 10,393 9,524 Adjustment in respect of prior year (836 ) — — Recognition of deferred tax assets on previously unrecognized losses — — 4,945 Utilization of tax losses (4,250 ) (5,307 ) (4,076 ) Balance at December 31 — 5,086 10,393 Jordan (in thousands of $) 2017 2016 Balance at January 1 (3,210 ) (1,146 ) Adjustment in respect of prior year — 150 Utilization of tax losses (284 ) (409 ) Recognition of deferred liability on fixed asset temporary differences (1,801 ) (1,805 ) Balance at December 31 (5,295 ) (3,210 ) |
Summary of Operating Loss Carryforwards | Expiration of net operating losses carried forward relating to the Golar Eskimo are as follows: (in thousands of $) Amount Date of expiration Net operating losses in 2015 ( Golar Eskimo ) 4,991 2020 |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Schedule of Future Minimum Contractual Revenues for Operating Leases | The minimum contractual future revenues to be received on time charters as of December 31, 2017 , were as follows: Year ending December 31, (in thousands of $) Total 2018 301,555 (1) 2019 225,500 2020 214,441 2021 213,855 2022 and thereafter 268,940 Total 1,224,291 ____________________________________ (1) On July 12, 2017, we agreed to certain amendments with the charterer of the Golar Freeze , DUSUP, to shorten the charter by a year, to end in April 2019 and to remove DUSUP's termination for convenience rights and extension option rights which ran to 2024. We have the right to terminate our obligations under the charter while continuing to receive the capital element of the charter hire until April 2019. |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions | The details of the Golar Eskimo acquisition are as follows: Golar Eskimo (in thousands of $) January 20, 2015 Purchase consideration (1) 226,010 Less: Fair value of net assets (liabilities) acquired: Vessel and equipment 292,872 Intangible asset 95,520 Cash 298 Other assets and liabilities 150 Long-term debt (162,830 ) Subtotal (226,010 ) Difference between the purchase price and fair value of net assets acquired — __________________________________________ (1) The purchase consideration comprised the following: (in thousands of $) Golar Eskimo Loan from Golar 220,000 Cash consideration paid to Golar 7,170 Purchase price adjustments (1,160 ) 226,010 |
Schedule of Pro Forma Financial Information | The table below shows our summarized consolidated pro forma annual financial information for the year ended December 31, 2015, giving effect to our acquisition of the Golar Eskimo as if it had taken place on January 1, 2015. Unaudited (in thousands of $, except per unit data) 2015 Revenues 435,573 Net income 163,022 |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of Other Current Assets | (in thousands of $) 2017 2016 Prepaid expenses 5,137 2,365 Other receivables 2,713 2,457 7,850 4,822 |
VESSELS AND EQUIPMENT, NET (Tab
VESSELS AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Vessels and Equipment, Net | (in thousands of $) 2017 2016 Cost 2,259,132 2,267,819 Accumulated depreciation (670,209 ) (615,109 ) Net book value 1,588,923 1,652,710 The following table presents the market values and carrying values of six of our vessels that we have determined have a market value that is less than their carrying value as of December 31, 2017 . 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. Vessel 2017 Market value (1) 2017 Carrying value Deficit (in millions of $) Golar Winter 171.3 223.9 (52.6) NR Satu 143.8 177.2 (33.4) Methane Princess (2) 105.3 105.9 (0.6) Golar Maria 97.5 187.2 (89.7) Golar Grand 97.3 112.4 (15.1) Golar Mazo 83.8 139.7 (55.9) (1) Market values are determined with reference to average broker values provided by independent brokers. Broker values are considered an estimate of the market value for the purpose of determining whether an impairment trigger exists. Broker values are commonly used and accepted by our lenders in relation to determining compliance with relevant covenants in applicable credit facilities for the purpose of assessing security quality. 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. (2) The Methane Princess is under capital lease (see note 14). |
VESSEL UNDER CAPITAL LEASE, N50
VESSEL UNDER CAPITAL LEASE, NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Capital Leased Assets | (in thousands of $) 2017 2016 Cost 168,840 168,577 Accumulated depreciation and amortization (62,895 ) (57,391 ) Net book value 105,945 111,186 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | (in thousands of $) 2017 2016 Cost 114,616 114,616 Accumulated amortization (41,410 ) (28,483 ) Net book value 73,206 86,133 |
Schedule of Future Amortization Expense | The estimated future amortization of intangible assets as of December 31, 2017 is as follows: Year Ending December 31, (in thousands of $) 2018 12,930 2019 9,862 2020 9,135 2021 9,110 2022 9,110 2023 and thereafter 23,059 Total 73,206 |
RESTRICTED CASH AND SHORT-TER52
RESTRICTED CASH AND SHORT-TERM DEPOSITS(Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Restricted Cash | Our restricted cash balances are as follows: (in thousands of $) 2017 2016 Methane Princess lease security deposits (see note 21) 119,548 111,958 Restricted cash relating to the $800 million facility (see note 20) 41,656 — Restricted cash relating to the cross currency interest rate swap (see note 23) — 32,410 Restricted cash relating to the NR Satu facility (see notes 5 and 20) 10,270 10,361 Restricted cash held by Eskimo SPV (see note 5) 3,764 — Restricted cash relating to performance guarantees 7,695 7,686 Total restricted cash 182,933 162,415 Less: current portion of restricted cash (27,306 ) (44,927 ) Non-current restricted cash 155,627 117,488 |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
OTHER NON-CURRENT ASSETS [Abstract] | |
Schedule of Other Non-current Assets | (in thousands of $) 2017 2016 Mark-to-market interest rate swaps valuation (see note 23) 11,937 8,194 Deferred tax asset (see note 8) — 5,086 Other non-current assets 2,990 3,737 14,927 17,017 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | (in thousands of $) 2017 2016 Interest expense 16,858 10,074 Current tax payable 7,903 1,461 Vessel operating and drydocking expenses 6,671 5,424 Administrative expenses 808 479 32,240 17,438 |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | (in thousands of $) 2017 2016 Deferred revenue 9,733 13,554 Derivative - earn-out units (see notes 23 and 27) 7,400 15,000 Preferred units dividend payable (see note 27) 2,080 — Mark-to-market interest rate swaps valuation (see note 23) 1,618 6,143 Other creditors 1,485 260 Deferred credits from capital lease transactions (see note 22) 625 625 Mark-to-market cross currency interest rate swaps valuation (see note 23) — 81,454 22,941 117,036 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | (in thousands of $) 2017 2016 Total debt, net of deferred finance charges 1,371,034 1,374,710 Less: Current portion of long-term debt due to third parties, net of deferred finance charges (118,850 ) (78,101 ) Long-term debt, net of deferred finance charges 1,252,184 1,296,609 |
Schedule of Maturities of Long-term Debt | Our outstanding debt as of December 31, 2017 is repayable as follows: Year Ending December 31, (in thousands of $) 2018 122,317 2019 135,183 2020 202,000 2021 716,000 2022 and thereafter 212,084 Total debt 1,387,584 Less: deferred finance charges (16,550 ) Total debt, net deferred finance charges 1,371,034 |
Schedule of Long-term Debt Instruments | As of December 31, 2017 and 2016 , the maturity dates for our total debt were as follows: (in thousands of $) 2017 2016 Maturity date $800 million credit facility 672,000 740,667 2021 2015 Norwegian Bonds 150,000 150,000 2020 2017 Norwegian Bonds 250,000 — 2021 NR Satu Facility 103,500 117,800 2019 Eskimo SPV Debt 212,084 232,931 2025 * High-Yield Bonds — 150,452 2017 Total debt 1,387,584 1,391,850 __________________________________________ * The maturity date of the Eskimo SPV debt is based on management’s best estimate and subject to change pending the receipt of the audited financial statements of the VIE. In absence of the audited financial statements of the VIE at year end, we confirmed the maturity date directly with the SPV. |
CAPITAL LEASE (Tables)
CAPITAL LEASE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Schedule of Long-term Obligations Under Capital Leases | (in thousands of $) 2017 2016 Total obligations under capital lease 128,081 117,751 Less: current portion of obligations under capital lease (1,276 ) (787 ) Non-current portion of obligations under capital lease 126,805 116,964 |
Schedule of Future Minimum Lease Payments for Capital Leases | As of December 31, 2017 , we are committed to make quarterly minimum capital lease payments (including interest), as follows: Year ending December 31, (in thousands of $) Methane Princess Lease 2018 7,893 2019 8,201 2020 8,514 2021 8,846 2022 9,181 2023 and thereafter 167,783 Total minimum lease payments 210,418 Less: Imputed interest (82,337 ) Present value of minimum lease payments 128,081 |
OTHER NON-CURRENT LIABILITIES (
OTHER NON-CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Long-term Liabilities Disclosure [Abstract] | |
Other Noncurrent Liabilities | (in thousands of $) 2017 2016 Deferred tax liability (see note 8) 5,295 3,210 Deferred credits from capital lease transactions 15,399 16,024 20,694 19,234 |
Deferred Credits From Capital Lease Transactions | (in thousands of $) 2017 2016 Deferred credits from capital lease transactions 24,691 24,691 Less: Accumulated amortization (8,667 ) (8,042 ) 16,024 16,649 Current 625 625 Non-current 15,399 16,024 16,024 16,649 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives | We have entered into the following interest rate swap transactions involving the payment of fixed rates in exchange for LIBOR: Instrument (in thousands of $) Year Ended Notional Amount Maturity Dates Fixed Interest Rate Interest rate swaps: Receiving floating, pay fixed December 31, 2017 1,335,307 2018 to 2023 1.07 % to 2.44% Receiving floating, pay fixed December 31, 2016 1,131,746 2018 to 2023 1.07 % to 2.44% |
Schedule of Derivative Instruments Gain (Loss) | The effect of cash flow hedging relationships relating to interest rate swap agreements on the statements of operations is as follows: Derivatives designated as hedging instruments Effective portion gain/ (loss) reclassified from Accumulated Other Comprehensive Loss Ineffective Portion (in thousands of $) Location 2017 2016 2015 2017 2016 2015 Interest rate swaps Other financial items, net — (409 ) 2,533 (1 ) (639 ) 411 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income | The effect of cash flow hedging relationships relating to interest rate swap agreements excluding the cross currency interest rate swap on the statements of 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 $) 2017 2016 2015 Interest rate swaps 94 147 (174 ) The net gain/(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 $) 2017 2016 2015 Cross currency interest rate swap — 4,116 (4,933 ) |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The carrying value and estimated fair value of our financial instruments at December 31, 2017 and 2016 are as follows: (in thousands of $) Fair Value Hierarchy(1) 2017 Carrying Value 2017 Fair Value 2016 Carrying Value 2016 Fair Value Non-Derivatives: Cash and cash equivalents Level 1 246,954 246,954 65,710 65,710 Restricted cash and short-term deposits Level 1 182,933 182,933 162,415 162,415 High-Yield, 2015 and 2017 Norwegian Bonds (1) Level 1 400,000 392,445 300,452 293,484 Short-term and long-term debt—floating (2) Level 2 987,584 987,584 1,091,398 1,091,398 Obligations under capital leases (2) Level 2 128,081 128,081 117,751 117,751 Derivatives: Interest rate swaps asset (3)(4) Level 2 11,962 11,962 8,194 8,194 Interest rate swaps liability (3)(4) Level 2 1,618 1,618 6,143 6,143 Cross currency interest rate swap liability (3)(5) Level 2 — — 81,454 81,454 Earn-out units (6) Level 2 7,400 7,400 15,000 15,000 __________________________________________ 1. This pertains to bonds with a combined carrying value of $400.0 million as of December 31, 2017 ( 2016 : $300.5 million ) which is included under long-term debt on the balance sheet. The fair value of the bonds as of December 31, 2017 was $392.4 million ( 2016 : $293.5 million ), which represents 98.1% ( 2016 : 97.7% ) of their face value. In February 2017, we completed the issuance and sale of $250 million of the 2017 Norwegian Bonds which will mature in May 2021. During 2017, we repaid our High-Yield Bonds and settled the corresponding cross-currency interest rate swap liabilities. 2. Our debt and capital lease obligations are recorded at amortized cost in the consolidated balance sheets. Debt is presented in the above table, gross of deferred financing cost of $16.6 million as of December 31, 2017 ( 2016 : $17.1 million ). 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 below) that qualify and are designated as cash flow hedges as of December 31, 2017 and 2016 was $0.1 million (with a notional amount of $72.5 million ) and $0.1 million (with a notional amount of $82.5 million ), respectively. The expected maturity of these interest rate agreements is in February 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. During 2017, we repaid our High-Yield Bonds and settled the corresponding cross-currency interest rate swap liabilities. 6. This relates to the Earn-Out Units issued in connection with the IDR reset transaction in October 2016. See note 27 for further details. |
Offsetting Assets | 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, 2017 and 2016 would be adjusted as detailed in the following table: December 31, 2017 December 31, 2016 (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 11,962 (1,618 ) 10,344 8,194 (4,194 ) 4,000 Total liability derivatives 1,618 (1,618 ) — 6,143 (4,194 ) 1,949 |
Offsetting Liabilities | 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, 2017 and 2016 would be adjusted as detailed in the following table: December 31, 2017 December 31, 2016 (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 11,962 (1,618 ) 10,344 8,194 (4,194 ) 4,000 Total liability derivatives 1,618 (1,618 ) — 6,143 (4,194 ) 1,949 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Transactions with related parties: (in thousands of $) 2017 2016 2015 Transactions with Golar and affiliates: Time charter revenues (a) 17,423 28,368 41,555 Management and administrative services fees (b) (7,762 ) (4,251 ) (2,949 ) Ship management fees (c) (5,903 ) (6,466 ) (7,577 ) Expense in connection with the Golar Eskimo Vendor Loan (d) — — (4,217 ) Interest income on short-term loans (e) — 122 203 Share options expense (f) (228 ) (181 ) (297 ) Income on deposits paid to Golar (g) 4,622 1,967 — Distributions to Golar (h) (52,255 ) (54,688 ) (52,130 ) Fees to Helm Energy Advisors Inc. (i) — (795 ) (2,307 ) Transactions with others: Dividends to China Petroleum Corporation (j) (7,000 ) (12,360 ) (11,400 ) Receivables from related parties: As of December 31, 2017 and 2016 , balances with related parties consisted of the following: (in thousands of $) 2017 2016 Balances due from Golar and its affiliates (e) 4,138 21,908 Methane Princess Lease security deposit movements (k) 3,487 2,006 Deposits paid to Golar (g) 177,247 107,247 184,872 131,161 __________________________________________ (a) Time charter revenues - This consists of revenue from the charters of the Golar Eskimo and the Golar Grand . In connection with our acquisition of the Golar Grand in November 2012, Golar provided us with an option pursuant to which in the event that the charterer did not renew or extend its charter for the Golar Grand beyond February 2015, we could require Golar to charter the vessel through to November 2017 at approximately 75% of the hire rate that would have been payable by the charterer. In February 2015, we exercised this option. In May 2017, Golar Grand started its new charter with a major international oil and gas company (the “New Charter”). We sub-chartered back the Golar Grand from Golar at the same time charter rate as the New Charter. The daily time charter rate receivable from Golar under the option had reverted back to the original rate following the vessel's drydocking in April 2017 but was reduced by the sub-charter income under the New Charter. Accordingly, we earned $17.4 million , $28.4 million and $28.7 million in relation to this charter in the years ended December 31, 2017 , 2016 and 2015 respectively. In connection with the Golar Eskimo acquisition, we entered into an agreement with Golar pursuant to which Golar agreed to pay us an aggregate amount of $22.0 million starting in January 2015 and ending in June 2015 for the right to use the Golar Eskimo during that period. We accounted for $12.9 million of the $22.0 million as time charter revenues for the year ended December 31, 2015. (b) Management and administrative services fees - We are party to 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. (c) Ship management fees - Golar and certain of its subsidiaries charged vessel 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 subsidiaries of Golar, including Golar Management. We may terminate these agreements by providing 30 days’ written notice. (d) Golar Eskimo Vendor Loan - A portion of the purchase price for the Golar Eskimo acquisition was financed with the proceeds of a $220.0 million unsecured, non-amortizing loan to us from Golar. This loan, which contained a repayment incentive fee of up to 1.0% of the loan amount and bore interest at a blended rate equal to three-month LIBOR plus a margin of 2.84% , was repaid in full in November 2015. Accordingly, we recognized a repayment incentive fee of $1.1 million in connection with the repayment. (e) Balances due from Golar and its affiliates - Receivables and payables with Golar and its subsidiaries comprise primarily of unpaid management fees, advisory and administrative services and other related party arrangements including the Golar Grand time charter and the Tundra Letter Agreement. 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 subsidiaries are unsecured, interest-free and intended to be settled in the ordinary course of business. The decrease in the net balance due from Golar as of December 31, 2017 is mainly attributable to charter hire payments from Golar during the year in relation to the Golar Grand charter which ended November 2017, discussed in (a) above and the amounts due under the Tundra Letter Agreement. In November 2015, Golar borrowed $50.0 million from us. The loan was repayable within 28 days following draw down, was unsecured, and bore interest at LIBOR plus 5.0% . The loan was repaid in December 2015. (f) Share options expense - This relates to a recharge from Golar in relation to the award of 29,950 (with an exercise price of $23.50 at grant date) and 45,000 (with an exercise price of $56.70 at grant date) share options in Golar LNG granted to certain of our directors and officers. The exercise price is reduced by the value of dividends declared and paid. They have a contractual term of five years and vest evenly over three years. (g) Income on deposits paid to Golar/Deposits paid to Golar - In May 2016, we completed the Tundra Acquisition and paid total cash purchase consideration of $107.2 million . Pursuant to the Tundra Letter Agreement, of the amount we received under the agreement, we have accounted for $2.2 million and $2.0 million as interest income for the years ended December 31, 2017 and 2016, respectively. In May 2017, we elected to exercise the Tundra Put Right to require Golar to repurchase Tundra Corp at a price equal to the original purchase price. In connection with the exercise of the Tundra Put Right, we and Golar entered into an agreement pursuant to which we agreed to sell Tundra Corp to Golar on the date of the closing of the Tundra Put Sale (the “Put Sale Closing Date”) on October 17, 2017 in return for Golar's promise to pay an amount equal to $107.2 million (the “Deferred Purchase Price”) plus an additional amount equal to 5% per annum of the Deferred Purchase Price (the “Additional Amount”). The Deferred Purchase Price and the Additional Amount shall be due and payable by Golar on the earlier of (a) the date of the closing of the Hilli Acquisition (as defined) and (b) April 30, 2018. However, in the event acceptance is delayed beyond April 30, 2018, both parties have agreed to extend the closing date for the Hilli Acquisition to May 31, 2018. On August 15, 2017, Golar Partners Operating LLC, our wholly owned subsidiary, entered into a purchase and sale agreement (the “Hilli Purchase Agreement”) for the acquisition (the “Hilli Acquisition”) from Golar and affiliates of Keppel Shipyard Limited (“Keppel”) and Black and Veatch (“B&V”) of 50% of the common units in Hilli LLC, which will, on the closing date of the Hilli Acquisition, indirectly own the Hilli . Such common units will represent the equivalent of 50% of the two liquefaction trains, out of a total of four, that will be contracted to Perenco Cameroon (“Perenco”) and Societe Nationale de Hydrocarbures (“SNH”) (together with Perenco and SNH, the “Customer”) under an eight -year liquefaction tolling agreement (the “Liquefaction Tolling Agreement”). The purchase price for the common units of Hilli LLC is $658 million less net lease obligations under the financing facility for the Hilli (the “Hilli Facility”), which are expected to be between $468 and $480 million . Concurrently with the execution of the Hilli Purchase Agreement, we paid a $70 million deposit to Golar, upon which we will receive interest at a rate of 5% per annum. The closing of the Hilli Acquisition is subject to the satisfaction of certain closing conditions, which include among other things, the delivery to and acceptance by the customer of the Hilli , and the commencement of commercial operations under the Liquefaction Tolling Agreement. We have accounted for $2.4 million as interest income for the year ended December 31, 2017 on the Deferred Purchase Price and $70 million deposit. (h) Distributions to Golar - We have declared and paid quarterly distributions totaling $52.3 million , $54.7 million , and $52.1 million to Golar for each of the years ended December 31, 2017 , 2016 and 2015 , respectively. (i) Fees to Helm Energy Advisors Inc. - Through his co-ownership of Helm Energy Advisors Inc. (“Helm”), a company established and domiciled in Canada, Mr. Doug Arnell, who was appointed to our board of directors in February 2015 and resigned in September 2016, acted and advised us on various projects for us and earned approximately $0.8 million and $2.3 million from us in fees for the years ended December 31, 2016 and 2015 , respectively. (j) Dividends to China Petroleum Corporation - During the years ended December 31, 2017 , 2016 , and 2015 , Faraway Maritime Shipping Co., which is 60% owned by us and 40% owned by China Petroleum Corporation (“CPC”), paid total dividends to CPC of $7.0 million , $12.4 million and $11.4 million , respectively. (k) 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 CONTING61
OTHER COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Other Assets Pledged as Collateral | Assets pledged (in thousands of $) 2017 2016 Carrying value of vessels and equipment secured against long-term loans and capital leases 1,555,092 1,622,416 |
UNIT-BASED COMPENSATION (Tables
UNIT-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Weighted Average Assumptions Used | The fair value of each option award is estimated on the grant date or modification date using the Black-Scholes option pricing model based on the following assumptions as of the grant date: 2017 2016 Risk free interest rate 1.5 % 1.5 % Expected volatility of common units (1) 44.8 % 44.8 % Expected dividend yield (2) 0.0 % 0.0 % Expected life of options (in years) 5.0 years 5.0 years (1) The assumption for expected future volatility is based primarily on an analysis of historical volatility of our common units. (2) The dividend yield has been estimated at 0.0% as the exercise price of the options are reduced by the value of distributions, declared and paid on a per unit basis. |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | A summary of option activity for the year ended December 31, 2017 is presented below: (in thousands of $, except per unit data) Units (in '000s) Weighted average exercise price Weighted average remaining contractual term (years) Options outstanding at December 31, 2016 75 $ 20.55 4.9 Granted during the year 24 20.55 Options outstanding at December 31, 2017 99 $ 18.24 3.9 |
EQUITY (Tables)
EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Partners' Capital Notes [Abstract] | |
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 preferred units, common units, subordinated units and general partner units during the years ended December 31, 2017 , 2016 and 2015 : (in units) Preferred Units Common Units Subordinated Units GP Units December 31, 2014 — 45,663,096 15,949,831 1,257,408 December 2015 common unit repurchase program — (496,000 ) — — December 31, 2015 — 45,167,096 15,949,831 1,257,408 January 2016 common unit repurchase program — (38,000 ) — — June 2016 conversion of subordinated units — 15,949,831 (15,949,831 ) — October 2016 IDR reset — 2,994,364 — 61,109 December 31, 2016 — 64,073,291 — 1,318,517 February 2017 common unit offering — 5,175,000 — 94,714 October 2017 preferred units offering 5,520,000 — — — November 2017 earn-out units conversion (1st tranche) — 374,295 7,639 During 2017 common unit continuous offering program — 145,675 — 2,973 December 31, 2017 5,520,000 69,768,261 — 1,423,843 |
Schedule of Capital Units | The following table summarizes public offerings of our equity during the year ended December 31, 2017 : Date Number of Units Issued Type of units Offering Price Net Proceeds (in thousands of $) Golar’s Ownership after the Offering (2) Use of Proceeds February 2017 5,175,000 Common $ 22.67 118,774 31.51 % General partnership purposes and a portion of the deposit for the Hilli Acquisition October 2017 5,520,000 Preferred $ 25.00 132,991 31.51 % General partnership purposes December 2017 145,675 Common (3) $ 22.79 3,275 31.82 % General partnership purposes _________________________________________ (1) Includes General Partner's 2% proportionate capital contribution. (2) Includes Golar's 2% general partner interest in the Partnership and common unit ownership. (3) Refers to issuances under our common unit continuous (“ATM”) offering program. |
EARNINGS PER UNIT AND CASH DI64
EARNINGS PER UNIT AND CASH DISTRIBUTIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
EARNINGS PER UNIT AND CASH DISTRIBUTIONS [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The calculations of basic and diluted earnings per common unit are presented below: (in thousands of $ except unit and per unit data) 2017 2016 2015 Common unitholders’ interest in net income 124,656 139,948 106,476 Less: distributions paid (1) (160,069 ) (151,694 ) (103,241 ) (Over) / under distributed earnings (35,413 ) (11,746 ) 3,235 Basic: Weighted average common units outstanding (in thousands) 68,671 53,745 45,654 Diluted: Weighted average common units outstanding (in thousands) 68,671 53,745 45,654 Earn-out units 654 189 — Common unit and common unit equivalents 69,325 53,934 45,654 Earnings per unit - Common unitholders : Basic $ 1.82 $ 2.44 $ 2.38 Diluted 1.80 2.43 2.38 Cash distributions declared and paid in the period per common unit (2) 2.31 2.31 2.30 Subsequent event: Cash distributions declared and paid per common unit relating to the period (3) 0.58 0.58 0.58 __________________________________________ (1) This refers to distributions made or to be made to the common unitholders in relation to the period irrespective of the declaration and payment dates and based on the weighted average number of units outstanding in the period. (2) Refers to cash distributions declared and paid during the period. (3) Refers to cash distributions relating to the period, declared and paid subsequent to the period end. |
GENERAL - Narrative (Details)
GENERAL - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2017storage_unitcarrier | Dec. 31, 2016storage_unitcarrier | |
FSRUs | ||
Ownership interests: | ||
Number of vessels in original partnership interest | storage_unit | 6 | 6 |
LNG Carriers | ||
Ownership interests: | ||
Number of vessels in original partnership interest | carrier | 4 | 4 |
Golar | ||
Ownership interests: | ||
Ownership interest | 30.40% | 32.50% |
Golar GP LLC | ||
Ownership interests: | ||
General Partners ownership interest | 2.00% | |
Incentive Distribution Rights | Golar GP LLC | ||
Ownership interests: | ||
Ownership of incentive distribution rights (IDRs) | 100.00% |
BASIS OF PREPARATION AND SUMM66
BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Millions | 1 Months Ended | 12 Months Ended |
May 31, 2016USD ($) | Dec. 31, 2017vessel | |
Property, Plant and Equipment [Line Items] | ||
Percent of voting control | 50.00% | |
Drydocking expense reimbursement period (in years) | 5 years | |
Number of vessels | vessel | 1 | |
Assets Held under Capital Leases | ||
Property, Plant and Equipment [Line Items] | ||
Vessel estimated useful life (in years) | 40 years | |
Golar Tundra | Golar | ||
Property, Plant and Equipment [Line Items] | ||
Purchase consideration | $ | $ 330 |
BASIS OF PREPARATION AND SUMM67
BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accounting Policies [Abstract] | |||
Unrealized net loss on qualifying cash flow hedging instruments | $ 26 | $ (5,053) | $ (9,725) |
BASIS OF PREPARATION AND SUMM68
BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Vessels and Equipment Estimated Lives (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Vessels (excluding converted FSRUs) | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 40 years |
Vessels - Converted FSRUs | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 20 years |
Drydocking expenditure | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 5 years |
Mooring equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life (in years) | 11 years |
SUBSIDIARIES - Schedule of Sign
SUBSIDIARIES - Schedule of Significant Subsidiaries (Details) | Dec. 31, 2017 | Dec. 31, 2017vessel | Dec. 31, 2017tax_lease | Dec. 31, 2016vessel |
Ownership interests: | ||||
Ownership in subsidiary | 100.00% | |||
Number of leased shipping vessels | 1 | 1 | 1 | |
Faraway Maritime Shipping Company | ||||
Ownership interests: | ||||
Ownership in subsidiary | 60.00% | |||
PT Pesona | ||||
Ownership interests: | ||||
Third-party ownership of subsidiary | 51.00% |
VARIABLE INTEREST ENTITIES ("70
VARIABLE INTEREST ENTITIES ("VIEs") - Narrative (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
May 31, 2016USD ($) | Dec. 31, 2017USD ($)vessel | Dec. 31, 2016USD ($)vessel | Dec. 31, 2015USD ($) | |
Variable Interest Entity [Line Items] | ||||
Number of vessels | vessel | 1 | |||
Interest expense | $ 75,425 | $ 66,938 | $ 61,632 | |
Net cash used in financing activities | (19,333) | (128,961) | (271,276) | |
PT Pesona | ||||
Variable Interest Entity [Line Items] | ||||
Dividends | $ 1,200 | 6,100 | $ 0 | |
Golar Tundra | Golar | ||||
Variable Interest Entity [Line Items] | ||||
Purchase consideration | $ 330,000 | |||
Eskimo SPV Agreement | Golar Eskimo | ||||
Variable Interest Entity [Line Items] | ||||
Lease term | 10 years | |||
Annual option to repurchase vessel at fixed, pre-determined amounts, period post commencement of bareboat charter | 3 years | |||
Interest expense | $ 8,200 | 8,000 | ||
Net cash used in financing activities | $ 20,800 | $ 21,100 | ||
Variable Interest Entity, Primary Beneficiary | Eskimo SPV Agreement | ||||
Variable Interest Entity [Line Items] | ||||
Number of vessels | vessel | 1 | 1 |
VARIABLE INTEREST ENTITIES ("71
VARIABLE INTEREST ENTITIES ("VIEs") - Summary of Sale and Leaseback Arrangements (Details) - Variable Interest Entity, Primary Beneficiary - Golar Eskimo - Eskimo SPV Agreement $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Variable Interest Entity [Line Items] | |
Sales value | $ 285 |
First repurchase option | 225.8 |
Repurchase obligation at end of lease term | $ 128.3 |
VARIABLE INTEREST ENTITIES ("72
VARIABLE INTEREST ENTITIES ("VIEs") - Summary of Payment Obligations Under the Bareboat Charter (Details) - Variable Interest Entity, Primary Beneficiary - Golar Eskimo - Eskimo SPV Agreement $ in Thousands | Dec. 31, 2017USD ($) |
Variable Interest Entity [Line Items] | |
2,018 | $ 25,930 |
2,019 | 25,798 |
2,020 | 25,026 |
2,021 | 23,919 |
2,022 | 22,789 |
After 2,022 | $ 58,826 |
VARIABLE INTEREST ENTITIES ("73
VARIABLE INTEREST ENTITIES ("VIEs") - Significant Assets & Liabilities of CMBL Lessor VIE (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Liabilities | ||
Long-term debt | $ 1,371,034 | $ 1,374,710 |
Eskimo SPV Agreement | Golar Eskimo | ||
Liabilities | ||
Long-term debt | $ 212,084 | $ 232,931 |
VARIABLE INTEREST ENTITIES ("74
VARIABLE INTEREST ENTITIES ("VIEs") - Balance Sheet of Variable Interest Entity (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||||
Cash | $ 246,954 | $ 65,710 | $ 40,686 | $ 98,998 |
Restricted cash | 155,627 | 117,488 | ||
Vessels and equipment, net | 1,588,923 | 1,652,710 | ||
Total assets | 2,427,371 | 2,252,708 | 2,231,662 | |
LIABILITIES AND EQUITY | ||||
Accrued liabilities | 32,240 | 17,438 | ||
Current portion of long-term debt | 118,850 | 78,101 | ||
Non-current debt | 1,252,184 | 1,296,609 | ||
Total liabilities | 1,579,770 | 1,648,279 | ||
Total equity | 847,601 | 604,429 | $ 596,515 | $ 601,739 |
Total liabilities and equity | 2,427,371 | 2,252,708 | ||
PT Golar Indonesia | ||||
ASSETS | ||||
Cash | 16,016 | 14,124 | ||
Restricted cash | 10,270 | 10,361 | ||
Vessels and equipment, net | 269,624 | 290,638 | ||
Other assets | 4,348 | 12,121 | ||
Total assets | 300,258 | 327,244 | ||
LIABILITIES AND EQUITY | ||||
Accrued liabilities | 11,675 | 9,989 | ||
Current portion of long-term debt | 19,759 | 13,633 | ||
Amounts due to related parties | 107,838 | 135,809 | ||
Non-current debt | 82,741 | 102,500 | ||
Other liabilities | 515 | 68 | ||
Total liabilities | 222,528 | 261,999 | ||
Total equity | 77,730 | 65,245 | ||
Total liabilities and equity | $ 300,258 | $ 327,244 |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) | 12 Months Ended |
Dec. 31, 2017segmentchartervessel | |
Segment Reporting [Abstract] | |
Number of segments | segment | 2 |
Segment Reporting Information [Line Items] | |
Number of charterers | charter | 10 |
LNG Carriers | |
Segment Reporting Information [Line Items] | |
Number of vessels | 4 |
FSRUs | |
Segment Reporting Information [Line Items] | |
Number of vessels | 6 |
SEGMENT INFORMATION - Restateme
SEGMENT INFORMATION - Restatement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue, Net | $ 433,102 | $ 441,598 | $ 434,687 |
Depreciation and amortization | (103,810) | (100,468) | (99,256) |
Other Cost and Expense, Operating | (93,182) | (74,460) | (79,611) |
Operating income | 236,110 | 266,670 | 255,820 |
Other non-operating income | 922 | 1,318 | 0 |
Assets | 2,427,371 | 2,252,708 | 2,231,662 |
Capital expenditure | 22,441 | 5,370 | 311,268 |
Operating Segments | FSRUs | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue, Net | 316,599 | 322,373 | 307,344 |
Depreciation and amortization | (80,762) | (78,025) | (77,036) |
Other Cost and Expense, Operating | (66,364) | (54,706) | (54,481) |
Operating income | 169,473 | 189,642 | 175,827 |
Other non-operating income | 922 | 1,318 | 0 |
Assets | 1,149,595 | 1,206,186 | 1,271,650 |
Capital expenditure | 11,226 | 344 | 309,225 |
Operating Segments | LNG Carrier | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue, Net | 116,503 | 119,225 | 127,343 |
Depreciation and amortization | (23,048) | (22,443) | (22,220) |
Other Cost and Expense, Operating | (26,818) | (19,754) | (25,130) |
Operating income | 66,637 | 77,028 | 79,993 |
Other non-operating income | 0 | 0 | 0 |
Assets | 545,225 | 557,682 | 575,725 |
Capital expenditure | 11,215 | 5,026 | 2,043 |
Intersegment Eliminations | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue, Net | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 |
Other Cost and Expense, Operating | 0 | 0 | 0 |
Operating income | 0 | 0 | 0 |
Other non-operating income | 0 | 0 | 0 |
Assets | 732,551 | 488,840 | 384,287 |
Capital expenditure | $ 0 | $ 0 | $ 0 |
SEGMENT INFORMATION - Revenues
SEGMENT INFORMATION - Revenues from External Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues from external customers: | |||
Benchmark percentage of revenue for major customer | 10.00% | 10.00% | 10.00% |
Petrobras | |||
Revenues from external customers: | |||
Revenues | $ 94,588 | $ 103,368 | $ 100,052 |
Petrobras | Revenues | Customer Concentration Risk | |||
Revenues from external customers: | |||
Concentration risk | 22.00% | 23.00% | 23.00% |
PTNR | |||
Revenues from external customers: | |||
Revenues | $ 72,495 | $ 67,774 | $ 67,325 |
PTNR | Revenues | Customer Concentration Risk | |||
Revenues from external customers: | |||
Concentration risk | 17.00% | 15.00% | 15.00% |
Jordan | |||
Revenues from external customers: | |||
Revenues | $ 57,144 | $ 57,112 | $ 37,750 |
Jordan | Revenues | Customer Concentration Risk | |||
Revenues from external customers: | |||
Concentration risk | 13.00% | 13.00% | 9.00% |
KNPC | |||
Revenues from external customers: | |||
Revenues | $ 47,645 | $ 47,654 | $ 47,402 |
KNPC | Revenues | Customer Concentration Risk | |||
Revenues from external customers: | |||
Concentration risk | 11.00% | 11.00% | 11.00% |
DUSUP | |||
Revenues from external customers: | |||
Revenues | $ 44,726 | $ 46,465 | $ 41,970 |
DUSUP | Revenues | Customer Concentration Risk | |||
Revenues from external customers: | |||
Concentration risk | 10.00% | 11.00% | 10.00% |
SEGMENT INFORMATION - Geographi
SEGMENT INFORMATION - Geographical Segment Data (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Geographical segment data: | |||
Fixed assets | $ 1,588,923 | $ 1,652,710 | |
Brazil | |||
Geographical segment data: | |||
Revenues | 94,588 | 103,368 | $ 100,052 |
Fixed assets | 223,900 | 347,366 | |
Indonesia | |||
Geographical segment data: | |||
Revenues | 72,495 | 67,774 | 67,325 |
Fixed assets | 177,205 | 191,139 | |
Jordan | |||
Geographical segment data: | |||
Revenues | 57,144 | 57,112 | 37,750 |
Fixed assets | 269,846 | 278,588 | |
Kuwait | |||
Geographical segment data: | |||
Revenues | 47,645 | 47,654 | 47,402 |
Fixed assets | 259,310 | 267,055 | |
United Arab Emirates | |||
Geographical segment data: | |||
Revenues | 44,726 | 46,465 | $ 41,970 |
Fixed assets | $ 108,776 | $ 122,078 |
OTHER FINANCIAL ITEMS, NET (Det
OTHER FINANCIAL ITEMS, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Component of Other Income (Expense), Nonoperating [Line Items] | |||
Premium paid on repurchase of 2012 High Yield Bond | $ (2,820) | $ 0 | $ 0 |
Financing arrangement fees and other costs | (1,283) | (1,468) | (1,694) |
Interest expense on un-designated interest rate swaps | (7,554) | (10,824) | (14,385) |
Foreign exchange (loss)/gain on capital lease obligations and related restricted cash | (659) | 945 | 492 |
Foreign exchange loss on operations | (378) | (1,291) | (2,235) |
Total | (7,567) | (2,745) | (17,151) |
Foreign currency transaction loss | 700 | ||
Gain on derivative instruments | 4,700 | ||
Interest Rate Swap | |||
Component of Other Income (Expense), Nonoperating [Line Items] | |||
Mark-to-market adjustment on derivatives | 12,074 | 9,893 | 655 |
Bond and Interest Rate Swap | |||
Component of Other Income (Expense), Nonoperating [Line Items] | |||
Mark-to-market adjustment on derivatives | (6,506) | 0 | 0 |
Foreign currency transaction loss | 6,200 | ||
Cross Currency Interest Rate Swap | |||
Component of Other Income (Expense), Nonoperating [Line Items] | |||
Mark-to-market adjustment on derivatives | 0 | 0 | 16 |
Net hedge ineffectiveness loss | 5,000 | ||
Earn-Out Units | |||
Component of Other Income (Expense), Nonoperating [Line Items] | |||
Mark-to-market adjustment on derivatives | $ (441) | $ 0 | $ 0 |
INCOME TAXES - Schedule of Comp
INCOME TAXES - Schedule of Components of Income Tax Expense (Credit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Components of Income Tax Expense (Benefit) | |||
Current tax expense (credit) | $ 9,825 | $ 9,486 | $ 5,392 |
Total income tax expense | 16,996 | 16,858 | 5,669 |
Foreign Tax Authority | United Kingdom | |||
Components of Income Tax Expense (Benefit) | |||
Current tax expense (credit) | 469 | 411 | (1,098) |
Foreign Tax Authority | Indonesia | |||
Components of Income Tax Expense (Benefit) | |||
Current tax expense (credit) | 5,584 | 5,579 | 3,641 |
Deferred tax (income) expense | 5,086 | 5,304 | (869) |
Foreign Tax Authority | Brazil | |||
Components of Income Tax Expense (Benefit) | |||
Current tax expense (credit) | 1,160 | 1,350 | 716 |
Foreign Tax Authority | Kuwait | |||
Components of Income Tax Expense (Benefit) | |||
Current tax expense (credit) | 2,144 | 2,146 | 2,133 |
Foreign Tax Authority | Barbados | |||
Components of Income Tax Expense (Benefit) | |||
Current tax expense (credit) | 468 | 0 | 0 |
Foreign Tax Authority | Jordan | |||
Components of Income Tax Expense (Benefit) | |||
Deferred tax (income) expense | $ 2,085 | $ 2,068 | $ 1,146 |
INCOME TAXES - Schedule of Effe
INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Components of Income Tax Expense (Benefit) | |||
Total income tax expense | $ 16,996 | $ 16,858 | $ 5,669 |
Current tax expense (credit) | $ 9,825 | $ 9,486 | $ 5,392 |
Foreign Tax Authority | Marshall Islands | |||
Components of Income Tax Expense (Benefit) | |||
Statutory income tax rate | 0.00% | 0.00% | 0.00% |
Effect of change on uncertain tax positions relating to prior year | $ 685 | $ 133 | $ (1,894) |
Effect of recognition of deferred tax asset | 0 | 0 | (4,945) |
Effect of taxable income in various countries | 16,311 | 16,725 | 12,508 |
Total income tax expense | $ 16,996 | 16,858 | 5,669 |
Foreign Tax Authority | Kuwait | |||
Components of Income Tax Expense (Benefit) | |||
Statutory income tax rate | 15.00% | ||
Current tax expense (credit) | $ 2,144 | $ 2,146 | $ 2,133 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Components of Income Tax Expense (Benefit) | ||||
Current taxation charges | $ 9,825,000 | $ 9,486,000 | $ 5,392,000 | |
Deferred tax asset | 0 | 5,086,000 | ||
Net deferred tax liability | 5,295,000 | 3,210,000 | ||
Income tax interest and penalties | 600,000 | 1,100,000 | 0 | |
United Kingdom | Foreign Tax Authority | ||||
Components of Income Tax Expense (Benefit) | ||||
Current taxation charges | $ 469,000 | 411,000 | (1,098,000) | |
Statutory income tax rate | 19.00% | |||
Brazil | Foreign Tax Authority | ||||
Components of Income Tax Expense (Benefit) | ||||
Current taxation charges | $ 1,160,000 | 1,350,000 | 716,000 | |
Indonesia | Foreign Tax Authority | ||||
Components of Income Tax Expense (Benefit) | ||||
Current taxation charges | $ 5,584,000 | 5,579,000 | 3,641,000 | |
Statutory income tax rate | 25.00% | |||
Utilization of tax losses | $ 4,250,000 | 5,307,000 | 4,076,000 | |
Deferred tax asset | 0 | 5,086,000 | 10,393,000 | $ 9,524,000 |
Kuwait | Foreign Tax Authority | ||||
Components of Income Tax Expense (Benefit) | ||||
Current taxation charges | $ 2,144,000 | 2,146,000 | 2,133,000 | |
Statutory income tax rate | 15.00% | |||
Jordan | Foreign Tax Authority | ||||
Components of Income Tax Expense (Benefit) | ||||
Deferred tax asset | $ 250,000 | 534,000 | ||
Deferred tax liability | 5,545,000 | 3,744,000 | ||
Net deferred tax liability | 5,295,000 | 3,210,000 | 1,146,000 | |
Net operating loss carryforwards subject to expiration | 5,000,000 | |||
Barbados | Foreign Tax Authority | ||||
Components of Income Tax Expense (Benefit) | ||||
Current taxation charges | $ 468,000 | $ 0 | $ 0 |
INCOME TAXES - Schedule of Earl
INCOME TAXES - Schedule of Earliest Open Tax Period (Details) - Foreign Tax Authority | 12 Months Ended |
Dec. 31, 2017 | |
UK | |
Income Tax Examination [Line Items] | |
Earliest open tax period | 2,015 |
Brazil | |
Income Tax Examination [Line Items] | |
Earliest open tax period | 2,012 |
Indonesia | |
Income Tax Examination [Line Items] | |
Earliest open tax period | 2,016 |
Kuwait | |
Income Tax Examination [Line Items] | |
Earliest open tax period | 2,017 |
Jordan | |
Income Tax Examination [Line Items] | |
Earliest open tax period | 2,015 |
Barbados | |
Income Tax Examination [Line Items] | |
Earliest open tax period | 2,017 |
INCOME TAXES - Schedule of Defe
INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Tax Assets, Net, Classification | ||||
Deferred tax asset | $ 0 | $ 5,086,000 | ||
Net deferred tax liability | (5,295,000) | (3,210,000) | ||
Indonesia | Foreign Tax Authority | ||||
Deferred Tax Assets, Net, Classification | ||||
Deferred tax asset | 0 | 5,086,000 | $ 10,393,000 | $ 9,524,000 |
Jordan | Foreign Tax Authority | ||||
Deferred Tax Assets, Net, Classification | ||||
Deferred tax asset | 250,000 | 534,000 | ||
Deferred tax liability | (5,545,000) | (3,744,000) | ||
Net deferred tax liability | $ (5,295,000) | $ (3,210,000) | $ (1,146,000) |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Deferred Tax Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred Tax Asset, Net Reconciliation | |||
Balance at January 1 | $ 5,086,000 | ||
Balance at December 31 | 0 | $ 5,086,000 | |
Deferred Tax Liability, Net Reconciliation | |||
Balance at January 1 | (3,210,000) | ||
Balance at December 31 | (5,295,000) | (3,210,000) | |
Foreign Tax Authority | Indonesia | |||
Deferred Tax Asset, Net Reconciliation | |||
Balance at January 1 | 5,086,000 | 10,393,000 | $ 9,524,000 |
Recognition of deferred tax assets on previously unrecognized losses | 0 | 0 | 4,945,000 |
Utilization of tax losses | (4,250,000) | (5,307,000) | (4,076,000) |
Balance at December 31 | 0 | 5,086,000 | 10,393,000 |
Deferred Tax Liability, Net Reconciliation | |||
Adjustment in respect of prior year | (836,000) | 0 | 0 |
Foreign Tax Authority | Jordan | |||
Deferred Tax Asset, Net Reconciliation | |||
Balance at January 1 | 534,000 | ||
Balance at December 31 | 250,000 | 534,000 | |
Deferred Tax Liability, Net Reconciliation | |||
Balance at January 1 | (3,210,000) | (1,146,000) | |
Adjustment in respect of prior year | 0 | 150,000 | |
Utilization of tax losses | (284,000) | (409,000) | |
Recognition of deferred liability on fixed asset temporary differences | (1,801,000) | (1,805,000) | |
Balance at December 31 | $ (5,295,000) | $ (3,210,000) | $ (1,146,000) |
INCOME TAXES - Summary of Opera
INCOME TAXES - Summary of Operating Loss Carryforwards (Details) - Golar Eskimo - Foreign Tax Authority - Jordan $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Amount | $ 4,991 |
Date of expiration | Dec. 31, 2020 |
OPERATING LEASES (Details)
OPERATING LEASES (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)season | Dec. 31, 2016USD ($) | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity | ||
2,018 | $ 301,555 | |
2,019 | 225,500 | |
2,020 | 214,441 | |
2,021 | 213,855 | |
2022 and thereafter | 268,940 | |
Total | 1,224,291 | |
Equipment Leased to Other Party | ||
Property Subject To Or Available For Operating Lease, Net | ||
Cost | 1,742,200 | $ 2,436,400 |
Accumulated depreciation | $ 484,800 | $ 672,500 |
KNPC | ||
Property Subject To Or Available For Operating Lease, Net | ||
Number of regasification seasons | season | 5 | |
Period of regasification season | 9 months | |
Option to extend, number of regasification seasons | season | 1 |
BUSINESS COMBINATION - Schedule
BUSINESS COMBINATION - Schedule of Business Acquisitions (Details) - Golar Eskimo $ in Thousands | Jan. 20, 2015USD ($) |
Business Acquisition | |
Purchase consideration | $ 226,010 |
Less: Fair value of net assets (liabilities) acquired: | |
Vessel and equipment | 292,872 |
Intangible asset | 95,520 |
Cash | 298 |
Other assets and liabilities | 150 |
Long-term debt | (162,830) |
Subtotal | 226,010 |
Difference between the purchase price and fair value of net assets acquired | 0 |
Business Combination, Consideration Transferred | |
Loan from Golar | 220,000 |
Cash consideration paid to Golar | 7,170 |
Purchase price adjustments | (1,160) |
Purchase consideration | $ 226,010 |
BUSINESS COMBINATION (Details)
BUSINESS COMBINATION (Details) - Golar Eskimo - USD ($) $ in Thousands | Jan. 20, 2015 | Jun. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2015 |
Business Acquisition | |||||
Percentage of voting interests acquired | 100.00% | ||||
Cash consideration paid to Golar | $ 388,800 | ||||
Assumed bank debt | $ (162,830) | ||||
Revenue of acquiree | $ 22,000 | $ 22,000 | $ 22,000 | $ 22,000 | |
Net income of acquiree | 18,600 | $ 12,900 | |||
Charter-hire Revenues, Golar Eskimo | |||||
Business Acquisition | |||||
Related party transaction fees | $ 12,900 |
BUSINESS COMBINATION - Schedu90
BUSINESS COMBINATION - Schedule of Pro Forma Financial Information (Details) - Golar Eskimo $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Business Acquisition | |
Revenues | $ 435,573 |
Net income | $ 163,022 |
TRADE ACCOUNTS RECEIVABLE (Deta
TRADE ACCOUNTS RECEIVABLE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Receivables [Abstract] | ||
Provision for doubtful accounts | $ 0 | $ 0 |
OTHER CURRENT ASSETS (Details)
OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid expenses | $ 5,137 | $ 2,365 |
Other receivables | 2,713 | 2,457 |
Other receivables and prepaid expenses | $ 7,850 | $ 4,822 |
VESSELS AND EQUIPMENT, NET - Sc
VESSELS AND EQUIPMENT, NET - Schedule of Vessels and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Abstract] | ||
Cost | $ 2,259,132 | $ 2,267,819 |
Accumulated depreciation | (670,209) | (615,109) |
Net book value | $ 1,588,923 | $ 1,652,710 |
VESSELS AND EQUIPMENT, NET (Det
VESSELS AND EQUIPMENT, NET (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)vessel | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 86,000 | $ 82,600 | $ 81,900 |
Cost | 2,259,132 | 2,267,819 | |
Accumulated depreciation | 670,209 | 615,109 | |
Vessels and equipment pledged as collateral | $ 1,449,100 | 1,511,200 | |
Number of vessels with carrying value in excess of market value | vessel | 6 | ||
Drydocking | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 88,500 | 97,700 | |
Accumulated depreciation | 49,600 | 60,300 | |
Mooring Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 37,800 | 37,800 | |
Accumulated depreciation | $ 20,100 | $ 16,700 |
VESSELS AND EQUIPMENT, NET - 95
VESSELS AND EQUIPMENT, NET - Schedule of Market Value (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
2017 Carrying value | $ 1,588,923 | $ 1,652,710 |
Golar Winter | ||
Property, Plant and Equipment [Line Items] | ||
2017 Market value | 171,300 | |
2017 Carrying value | 223,900 | |
Deficit | (52,600) | |
NR Satu | ||
Property, Plant and Equipment [Line Items] | ||
2017 Market value | 143,800 | |
2017 Carrying value | 177,200 | |
Deficit | (33,400) | |
Methane Princess | ||
Property, Plant and Equipment [Line Items] | ||
2017 Market value | 105,300 | |
2017 Carrying value | 105,900 | |
Deficit | (600) | |
Golar Maria | ||
Property, Plant and Equipment [Line Items] | ||
2017 Market value | 97,500 | |
2017 Carrying value | 187,200 | |
Deficit | (89,700) | |
Golar Grand | ||
Property, Plant and Equipment [Line Items] | ||
2017 Market value | 97,300 | |
2017 Carrying value | 112,400 | |
Deficit | (15,100) | |
Golar Mazo | ||
Property, Plant and Equipment [Line Items] | ||
2017 Market value | 83,800 | |
2017 Carrying value | 139,700 | |
Deficit | $ (55,900) |
VESSEL UNDER CAPITAL LEASE, N96
VESSEL UNDER CAPITAL LEASE, NET - Schedule of Capital Leased Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Components of vessels under capital leases, net: | ||
Cost | $ 168,840 | $ 168,577 |
Accumulated depreciation and amortization | (62,895) | (57,391) |
Net book value | $ 105,945 | $ 111,186 |
VESSEL UNDER CAPITAL LEASE, N97
VESSEL UNDER CAPITAL LEASE, NET (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)vessel | Dec. 31, 2015USD ($) | Dec. 31, 2017vessel | Dec. 31, 2017tax_lease | |
Property, Plant and Equipment [Line Items] | |||||
Number of leased shipping vessels | 1 | 1 | 1 | ||
Cost | $ 168,840 | $ 168,577 | |||
Accumulated depreciation and amortization | 62,895 | 57,391 | |||
Depreciation and amortization expense | 86,000 | 82,600 | $ 81,900 | ||
Drydocking Costs | |||||
Property, Plant and Equipment [Line Items] | |||||
Cost | 8,300 | 8,100 | |||
Accumulated depreciation and amortization | 7,400 | 5,800 | |||
Assets Held under Capital Leases | |||||
Property, Plant and Equipment [Line Items] | |||||
Depreciation and amortization expense | $ 5,500 | $ 5,500 | $ 5,500 |
INTANGIBLE ASSETS, NET - Schedu
INTANGIBLE ASSETS, NET - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Cost | $ 114,616 | $ 114,616 |
Accumulated amortization | (41,410) | (28,483) |
Total | $ 73,206 | $ 86,133 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets | |||
Intangible asset residual value | $ 0 | ||
Impairment of intangible assets | 0 | ||
Amortization of Intangible Assets | $ 12,900,000 | $ 13,000,000 | $ 12,500,000 |
KNPC | |||
Finite-Lived Intangible Assets | |||
Remaining amortization period (in years) | 5 years | ||
Ministry of Energy and Mineral Resources of the Hashemite Kingdom of Jordan | |||
Finite-Lived Intangible Assets | |||
Remaining amortization period (in years) | 10 years |
INTANGIBLE ASSETS, NET - Sch100
INTANGIBLE ASSETS, NET - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,018 | $ 12,930 | |
2,019 | 9,862 | |
2,020 | 9,135 | |
2,021 | 9,110 | |
2,022 | 9,110 | |
2023 and thereafter | 23,059 | |
Total | $ 73,206 | $ 86,133 |
RESTRICTED CASH AND SHORT-TE101
RESTRICTED CASH AND SHORT-TERM DEPOSITS - Schedule of Restricted Cash and Short-Term Investments (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Apr. 30, 2016 |
Restricted Cash and Cash Equivalents Items | |||
Total restricted cash | $ 182,933,000 | $ 162,415,000 | |
Less: current portion of restricted cash | (27,306,000) | (44,927,000) | |
Non-current restricted cash | 155,627,000 | 117,488,000 | |
Minimum amount of cash and cash equivalents | 30,000,000 | ||
Eskimo SPV Agreement | Golar Eskimo | |||
Restricted Cash and Cash Equivalents Items | |||
Total restricted cash | 3,764,000 | 0 | |
Cross Currency Interest Rate Swap | |||
Restricted Cash and Cash Equivalents Items | |||
Total restricted cash | 0 | 32,410,000 | |
Secured Debt | NR Satu Facility | |||
Restricted Cash and Cash Equivalents Items | |||
Total restricted cash | 10,270,000 | 10,361,000 | |
Performance Guarantee | |||
Restricted Cash and Cash Equivalents Items | |||
Total restricted cash | 7,695,000 | 7,686,000 | |
Methane Princess Lease | |||
Restricted Cash and Cash Equivalents Items | |||
Total restricted cash | 119,548,000 | 111,958,000 | |
$800 million facility | $800 million credit facility | |||
Restricted Cash and Cash Equivalents Items | |||
Total restricted cash | 41,656,000 | $ 0 | |
Face amount of debt instrument | $ 800,000,000 | ||
Payment Reduction One | $800 million facility | $800 million credit facility | |||
Restricted Cash and Cash Equivalents Items | |||
Total restricted cash | 30,600,000 | ||
Payment Reduction Two | $800 million facility | $800 million credit facility | |||
Restricted Cash and Cash Equivalents Items | |||
Total restricted cash | 23,500,000 | ||
Payment Reduction Three | $800 million facility | $800 million credit facility | |||
Restricted Cash and Cash Equivalents Items | |||
Total restricted cash | $ 16,500,000 |
OTHER NON-CURRENT ASSETS - Sche
OTHER NON-CURRENT ASSETS - Schedule of Other Non-Current Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Components of other non-current assets: | |||
Mark-to-market interest rate swaps valuation (see note 23) | $ 11,937 | $ 8,194 | |
Deferred tax asset (see note 8) | 0 | 5,086 | |
Other non-current assets | 2,990 | 3,737 | |
Other non-current assets | 14,927 | 17,017 | |
NR Satu | |||
Components of other non-current assets: | |||
Capitalized commission expenses and lease incentives | 3,000 | 3,700 | |
Amortization expense | $ 700 | $ 700 | $ 700 |
ACCRUED EXPENSES - Schedule of
ACCRUED EXPENSES - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Interest expense | $ 16,858 | $ 10,074 |
Current tax payable | 7,903 | 1,461 |
Vessel operating and drydocking expenses | 6,671 | 5,424 |
Administrative expenses | 808 | 479 |
Accrued expenses | 32,240 | 17,438 |
Provision for interest and penalties | $ 200 | $ 800 |
OTHER CURRENT LIABILITIES (Deta
OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Mark-to-market swaps valuation: | ||
Deferred revenue | $ 9,733 | $ 13,554 |
Preferred units dividend payable (see note 27) | 2,080 | 0 |
Other creditors | 1,485 | 260 |
Deferred credits from capital lease transactions (see note 22) | 625 | 625 |
Other current liabilities | 22,941 | 117,036 |
Interest Rate Swap | ||
Mark-to-market swaps valuation: | ||
Mark-to-market valuation / Derivative liability | 1,618 | 6,143 |
Other | ||
Mark-to-market swaps valuation: | ||
Mark-to-market valuation / Derivative liability | 7,400 | 15,000 |
Cross Currency Interest Rate Swap | ||
Mark-to-market swaps valuation: | ||
Mark-to-market valuation / Derivative liability | $ 0 | $ 81,454 |
DEBT - Schedule of Debt (Detail
DEBT - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
Total debt, net deferred finance charges | $ 1,371,034 | $ 1,374,710 |
Less: Current portion of long-term debt due to third parties, net of deferred finance charges | (118,850) | (78,101) |
Long-term debt, net of deferred finance charges | $ 1,252,184 | $ 1,296,609 |
DEBT - Schedule of Repayment of
DEBT - Schedule of Repayment of Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
2,018 | $ 122,317 | |
2,019 | 135,183 | |
2,020 | 202,000 | |
2,021 | 716,000 | |
2022 and thereafter | 212,084 | |
Total debt | 1,387,584 | $ 1,391,850 |
Less: deferred finance charges | (16,550) | (17,100) |
Total debt, net deferred finance charges | $ 1,371,034 | $ 1,374,710 |
DEBT - Schedule of Long-Term De
DEBT - Schedule of Long-Term Debt Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Total debt | $ 1,371,034 | $ 1,374,710 |
Total debt | 1,387,584 | 1,391,850 |
$800 million credit facility | ||
Debt Instrument [Line Items] | ||
Total debt | 672,000 | 740,667 |
2015 Norwegian Bonds | ||
Debt Instrument [Line Items] | ||
Total debt | 150,000 | 150,000 |
2017 Norwegian Bonds | ||
Debt Instrument [Line Items] | ||
Total debt | 250,000 | 0 |
NR Satu Facility | ||
Debt Instrument [Line Items] | ||
Total debt | 103,500 | 117,800 |
Eskimo SPV Debt | ||
Debt Instrument [Line Items] | ||
Total debt | 212,084 | 232,931 |
High-Yield Bonds | ||
Debt Instrument [Line Items] | ||
Total debt | $ 0 | $ 150,452 |
DEBT - $800 Million Credit Faci
DEBT - $800 Million Credit Facility Narrative (Details) - Senior Secured Credit Facility | 1 Months Ended | ||||
Apr. 30, 2016USD ($)vessel | Apr. 30, 2021USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | |
$800 million facility | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt instrument | $ 800,000,000 | ||||
Number of vessels as collateral | vessel | 7 | ||||
Debt instrument term (in years) | 5 years | ||||
Term Loan | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt instrument | $ 650,000,000 | ||||
Line of Credit | $800 million facility | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt instrument | $ 672,000,000 | ||||
Final balloon payment | $ 378,000,000 | ||||
Line of Credit | $800 million facility | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Margin on LIBOR | 2.50% | ||||
Line of Credit | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 150,000,000 | ||||
Amount of reduction to maximum borrowing capacity | $ 25,000,000 | ||||
Drawdown of revolving credit facility | $ 125,000,000 | ||||
Line of Credit | Scenario, Forecast | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 75,000,000 | ||||
Amount of reduction to maximum borrowing capacity | $ 50,000,000 |
DEBT - 2015 and 2017 Norwegian
DEBT - 2015 and 2017 Norwegian Bonds (Details) - Extended Bonds - USD ($) | Feb. 15, 2017 | May 31, 2015 |
2015 Norwegian Bonds | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 150,000,000 | |
Debt instrument term (in years) | 5 years | |
Margin on LIBOR | 4.40% | |
2015 Norwegian Bonds | Interest Rate Swap | ||
Debt Instrument [Line Items] | ||
All-in fixed interest rate | 6.275% | |
2017 Norwegian Bonds | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 250,000,000 | |
Margin on LIBOR | 6.25% | |
2017 Norwegian Bonds | Interest Rate Swap | ||
Debt Instrument [Line Items] | ||
All-in fixed interest rate | 8.194% |
DEBT - NR Satu Facility Narrati
DEBT - NR Satu Facility Narrative (Details) | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2012USD ($)tranche | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | |||
Total debt | $ 1,371,034,000 | $ 1,374,710,000 | |
Value of deposit secured against loan | $ 182,933,000 | 162,415,000 | |
NR Satu Facility | |||
Debt Instrument [Line Items] | |||
Term of loan | 7 years | ||
Maximum borrowing capacity | $ 175,000,000 | ||
Number of tranches | tranche | 2 | ||
Line of credit facility, interest rate description | LIBOR plus a margin of 3.5% | ||
Proceeds from lines of credit | $ 155,000,000 | ||
Total debt | $ 103,500,000 | 117,800,000 | |
NR Satu Facility | Secured Debt | |||
Debt Instrument [Line Items] | |||
Value of deposit secured against loan | $ 10,270,000 | 10,361,000 | |
NR Satu Facility | Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 155,000,000 | ||
Final balloon payment | 52,500,000 | ||
NR Satu Facility | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 20,000,000 | ||
Proceeds from lines of credit | $ 20,000,000 | ||
London Interbank Offered Rate (LIBOR) | NR Satu Facility | |||
Debt Instrument [Line Items] | |||
Margin on LIBOR | 3.50% |
DEBT - Eskimo SPV Debt Narrativ
DEBT - Eskimo SPV Debt Narrative (Details) $ in Millions | Nov. 30, 2015USD ($) |
Eskimo SPV Debt | |
Debt Instrument [Line Items] | |
Final balloon payment | $ 212.1 |
DEBT - High Yield Bonds Narrati
DEBT - High Yield Bonds Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Oct. 31, 2012USD ($) | Oct. 31, 2012NOK (kr) | |
Debt Instrument [Line Items] | ||||
Total debt | $ 1,371,034,000 | $ 1,374,710,000 | ||
High-Yield Bonds | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, interest rate description | three months NIBOR plus a margin of 5.20% | |||
Fixed interest rate | 6.485% | |||
Total debt | $ 0 | $ 150,452,000 | ||
Norway, Krone | High-Yield Bonds | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt instrument | kr | kr 1,300,000,000 | |||
United States of America, Dollars | High-Yield Bonds | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt instrument | $ 227,000,000 | |||
NIBOR | High-Yield Bonds | ||||
Debt Instrument [Line Items] | ||||
Margin on NIBOR | 5.20% |
DEBT - Debt and Lease Restricti
DEBT - Debt and Lease Restrictions Narrative (Details) | 12 Months Ended | |
Dec. 31, 2017USD ($) | Apr. 30, 2016USD ($)vessel | |
NR Satu Facility | ||
Debt Instrument [Line Items] | ||
Free liquid assets requirement (at least) | $ 30,000,000 | |
Eskimo SPV | ||
Debt Instrument [Line Items] | ||
Free liquid assets requirement (at least) | 30,000,000 | |
Consolidated net worth requirement | $ 123,950,000 | |
Eskimo SPV | Minimum | ||
Debt Instrument [Line Items] | ||
Lessor, Operating Lease, Term of Contract | 10 years | |
Percent of outstanding facility amount (at least) | 110.00% | |
Norwegian Bonds | ||
Debt Instrument [Line Items] | ||
Free liquid assets requirement (at least) | $ 30,000,000 | |
$800 million facility | Senior Secured Credit Facility | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ 800,000,000 | |
Free liquid assets requirement (at least) | 30,000,000 | |
Consolidated net worth requirement | $ 250,000,000 | |
Number of vessels as collateral | vessel | 7 | |
Percent of outstanding facility amount (at least) | 110.00% |
CAPITAL LEASE - Schedule of Lon
CAPITAL LEASE - Schedule of Long-Term Obligations Under Capital Leases (Details) $ in Thousands | Dec. 31, 2017USD ($) | Dec. 31, 2017vessel | Dec. 31, 2017tax_lease | Dec. 31, 2016USD ($)vessel |
Leases [Abstract] | ||||
Total obligations under capital lease | $ 128,081 | $ 117,751 | ||
Less: current portion of obligations under capital lease | (1,276) | (787) | ||
Non-current portion of obligations under capital lease | $ 126,805 | $ 116,964 | ||
Number of leased shipping vessels | 1 | 1 | 1 |
CAPITAL LEASE - Schedule of Fut
CAPITAL LEASE - Schedule of Future Minimum Lease Payments for Capital Leases (Details) - Methane Princess Lease $ in Thousands | Dec. 31, 2017USD ($) |
Operating Leased Assets | |
2,018 | $ 7,893 |
2,019 | 8,201 |
2,020 | 8,514 |
2,021 | 8,846 |
2,022 | 9,181 |
2023 and thereafter | 167,783 |
Total minimum lease payments | 210,418 |
Less: Imputed interest | (82,337) |
Present value of minimum lease payments | $ 128,081 |
OTHER NON-CURRENT LIABILITIE116
OTHER NON-CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Long-term Liabilities Disclosure [Abstract] | |||
Deferred tax liability (see note 8) | $ 5,295 | $ 3,210 | |
Deferred credits from capital lease transactions | 15,399 | 16,024 | |
Other long-term liabilities | 20,694 | 19,234 | |
Deferred credits from capital lease transactions: | |||
Deferred credits from capital lease transactions | 24,691 | 24,691 | |
Less: Accumulated amortization | (8,667) | (8,042) | |
Deferred credits from capital lease transactions | 16,024 | 16,649 | |
Current | 625 | 625 | |
Non-current | 15,399 | 16,024 | |
Deferred credits from capital lease transactions, amortization expense | $ 600 | $ 600 | $ 600 |
FINANCIAL INSTRUMENTS - Schedul
FINANCIAL INSTRUMENTS - Schedule of Interest Rate Derivatives (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative | ||
Notional Amount | $ 250,000 | |
Interest Rate Swap | ||
Derivative | ||
Notional Amount | $ 1,335,307 | $ 1,131,746 |
Interest Rate Swap | Minimum | ||
Derivative | ||
Fixed Interest Rate | 1.07% | 1.07% |
Interest Rate Swap | Maximum | ||
Derivative | ||
Fixed Interest Rate | 2.44% | 2.44% |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2018USD ($) | Dec. 31, 2017USD ($)Customer | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Derivative | ||||
Notional amount | $ 250,000 | |||
Unrealized net loss on qualifying cash flow hedging instruments | 26 | $ (5,053) | $ (9,725) | |
Amounts reclassified from accumulated other comprehensive income/(loss) to the statement of operations | 0 | (409) | 2,533 | |
Foreign currency transaction loss | (700) | |||
Net foreign exchange gain (loss) | 900 | 500 | ||
Foreign exchange (loss)/gain on capital lease obligations and related restricted cash | (659) | 945 | $ 492 | |
Cash collateral provided | 182,933 | 162,415 | ||
Credit risk valuation adjustment in accumulated other comprehensive income | $ 0 | $ 200 | ||
Number of customers accounting for all of revenues | Customer | 10 | |||
Petrobras | Revenues | Customer Concentration Risk | ||||
Derivative | ||||
Concentration risk (at least) | 22.00% | 23.00% | 23.00% | |
Cross Currency Interest Rate Swap | ||||
Derivative | ||||
Cash collateral provided | $ 0 | $ 32,410 | ||
Interest Rate Swap | ||||
Derivative | ||||
Notional amount | 1,335,307 | 1,131,746 | ||
Notional amount, terminated | 100,000 | |||
Notional amount, restructured | 200,000 | |||
Interest Rate Swap | Not Designated as Hedging Instrument | ||||
Derivative | ||||
Notional amount | 400,000 | |||
Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedging | ||||
Derivative | ||||
Unrealized net loss on qualifying cash flow hedging instruments | (100) | (100) | ||
Cross Currency Interest Rate Swap | ||||
Derivative | ||||
Amounts reclassified from accumulated other comprehensive income/(loss) to the statement of operations | 5,000 | |||
Credit valuation adjustment debited to other comprehensive income | (200) | 1,100 | ||
Cross Currency Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedging | ||||
Derivative | ||||
Unrealized net loss on qualifying cash flow hedging instruments | $ 0 | $ 5,000 | $ 5,000 | |
Subsequent Event | Interest Rate Swap | ||||
Derivative | ||||
Notional amount | $ 480,000 | |||
Subsequent Event | Interest Rate Swap | Designated as Hedging Instrument | ||||
Derivative | ||||
Loss on derivative | $ 100 |
FINANCIAL INSTRUMENTS - Sche119
FINANCIAL INSTRUMENTS - Schedule of Derivative Instruments Gain (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) | |||
Effective portion gain/ (loss) reclassified from Accumulated Other Comprehensive Loss | $ 0 | $ (409) | $ 2,533 |
Interest Rate Swap | Other Financial Items, Net | Designated as Hedging Instrument | Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) | |||
Ineffective portion | $ (1) | $ (639) | $ 411 |
FINANCIAL INSTRUMENTS - Sche120
FINANCIAL INSTRUMENTS - Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Details) - Designated as Hedging Instrument - Cash Flow Hedging - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cross Currency Interest Rate Swap | |||
Derivative Instruments and Hedging Activities Disclosures | |||
Amount of gain/ (loss) recognized in OCI on derivative (effective portion) | $ 0 | $ 4,116 | $ (4,933) |
Interest Rate Swap | |||
Derivative Instruments and Hedging Activities Disclosures | |||
Amount of gain/ (loss) recognized in OCI on derivative (effective portion) | $ 94 | $ 147 | $ (174) |
FINANCIAL INSTRUMENTS - Sche121
FINANCIAL INSTRUMENTS - Schedule of Derivative Instruments in Statement of Financial Positions, Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Feb. 28, 2017 | |
Derivatives: | |||
Derivative asset | $ 11,962 | $ 8,194 | |
Derivative liability | 1,618 | 6,143 | |
Less: deferred finance charges | (16,550) | (17,100) | |
Notional amount | 250,000 | ||
Interest Rate Swap | |||
Derivatives: | |||
Notional amount | 1,335,307 | 1,131,746 | |
Level 2 | Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedging | |||
Derivatives: | |||
Interest rate swap agreements that qualify as cash flow hedges | 100 | 100 | |
Notional amount | 72,500 | 82,500 | |
Carrying Value | Level 1 | |||
Non-Derivatives: | |||
Cash and cash equivalents | 246,954 | 65,710 | |
Restricted cash and short-term deposits | 182,933 | 162,415 | |
Carrying Value | Level 1 | High-Yield and Norwegian Bonds | |||
Non-Derivatives: | |||
High-yield and Norwegian bonds | 400,000 | 300,452 | |
Carrying Value | Level 1 | 2017 Norwegian Bonds | |||
Non-Derivatives: | |||
High-yield and Norwegian bonds | $ 250,000 | ||
Carrying Value | Level 2 | |||
Non-Derivatives: | |||
Short-term and long-term debt—floating | 987,584 | 1,091,398 | |
Obligations under capital leases | 128,081 | 117,751 | |
Carrying Value | Level 2 | Interest Rate Swap | |||
Derivatives: | |||
Derivative asset | 11,962 | 8,194 | |
Derivative liability | 1,618 | 6,143 | |
Carrying Value | Level 2 | Cross Currency Interest Rate Swap | |||
Derivatives: | |||
Derivative liability | 0 | 81,454 | |
Carrying Value | Level 2 | Earn-Out Units | |||
Derivatives: | |||
Derivative liability | 7,400 | 15,000 | |
Fair Value | Level 1 | |||
Non-Derivatives: | |||
Cash and cash equivalents | 246,954 | 65,710 | |
Restricted cash and short-term deposits | 182,933 | 162,415 | |
Fair Value | Level 1 | High-Yield and Norwegian Bonds | |||
Non-Derivatives: | |||
High-yield and Norwegian bonds | $ 392,445 | $ 293,484 | |
Derivatives: | |||
Fair value as a percentage of face value | 98.10% | 97.70% | |
Fair Value | Level 2 | |||
Non-Derivatives: | |||
Short-term and long-term debt—floating | $ 987,584 | $ 1,091,398 | |
Obligations under capital leases | 128,081 | 117,751 | |
Fair Value | Level 2 | Interest Rate Swap | |||
Derivatives: | |||
Derivative asset | 11,962 | 8,194 | |
Derivative liability | 1,618 | 6,143 | |
Fair Value | Level 2 | Cross Currency Interest Rate Swap | |||
Derivatives: | |||
Derivative liability | 0 | 81,454 | |
Fair Value | Level 2 | Earn-Out Units | |||
Derivatives: | |||
Derivative liability | $ 7,400 | $ 15,000 |
FINANCIAL INSTRUMENTS - Sche122
FINANCIAL INSTRUMENTS - Schedule of Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Total asset derivatives | ||
Gross amounts presented in the consolidated balance sheet | $ 11,962 | $ 8,194 |
Gross amounts not offset in the consolidated balance sheet subject to netting agreements | (1,618) | (4,194) |
Net amount | 10,344 | 4,000 |
Total liability derivatives | ||
Gross amounts presented in the consolidated balance sheet | 1,618 | 6,143 |
Gross amounts not offset in the consolidated balance sheet subject to netting agreements | (1,618) | (4,194) |
Net amount | $ 0 | $ 1,949 |
RELATED PARTY TRANSACTIONS - Sc
RELATED PARTY TRANSACTIONS - Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Time charter revenues | $ 17,423 | $ 28,368 | $ 41,555 |
Dividends to China Petroleum Corporation | (7,000) | (12,360) | (11,400) |
Golar and Subsidiaries | |||
Related Party Transaction [Line Items] | |||
Interest income | 2,400 | ||
Distributions to Golar | (52,255) | (54,688) | (52,130) |
Receivables (payables) from related parties | 184,872 | 131,161 | |
Golar and Subsidiaries | Golar Tundra | |||
Related Party Transaction [Line Items] | |||
Interest income | 2,200 | 2,000 | |
Golar and Subsidiaries | Time Charter Revenues | |||
Related Party Transaction [Line Items] | |||
Time charter revenues | 17,423 | 28,368 | 41,555 |
Golar and Subsidiaries | Management and Administrative Service Fees | |||
Related Party Transaction [Line Items] | |||
Management and administrative service fees | (7,762) | (4,251) | (2,949) |
Golar and Subsidiaries | Ship Management Fees | |||
Related Party Transaction [Line Items] | |||
Fees and expenses | (5,903) | (6,466) | (7,577) |
Golar and Subsidiaries | Expense in Connection with the Golar Eskimo Vendor Loan | |||
Related Party Transaction [Line Items] | |||
Expense in connection with the Golar Eskimo Vendor Loan | 0 | 0 | (4,217) |
Golar and Subsidiaries | Interest Income on Short-term Loans | |||
Related Party Transaction [Line Items] | |||
Interest income | 0 | 122 | 203 |
Golar and Subsidiaries | Share Options Expense | |||
Related Party Transaction [Line Items] | |||
Fees and expenses | (228) | (181) | (297) |
Golar and Subsidiaries | Deposit Paid | |||
Related Party Transaction [Line Items] | |||
Interest income | 4,622 | 1,967 | 0 |
Golar and Subsidiaries | Fees to Helm Energy Advisors Inc. | |||
Related Party Transaction [Line Items] | |||
Fees to Helm Energy Advisors Inc. | 0 | (795) | (2,307) |
Golar and Subsidiaries | Balances Due from Golar and its Affiliates | |||
Related Party Transaction [Line Items] | |||
Receivables (payables) from related parties | 4,138 | 21,908 | |
Golar and Subsidiaries | Methane Princess Lease Security Deposit Movements | |||
Related Party Transaction [Line Items] | |||
Receivables (payables) from related parties | 3,487 | 2,006 | |
Golar and Subsidiaries | Deposit Paid to Golar | |||
Related Party Transaction [Line Items] | |||
Receivables (payables) from related parties | 177,247 | 107,247 | |
China Petroleum Corporation | |||
Related Party Transaction [Line Items] | |||
Dividends to China Petroleum Corporation | $ (7,000) | $ (12,360) | $ (11,400) |
RELATED PARTY TRANSACTIONS -124
RELATED PARTY TRANSACTIONS - Schedule of Related Party Transactions Footnotes (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 15, 2017 | Jan. 20, 2015 | May 31, 2017 | Nov. 30, 2015 | Feb. 28, 2015 | Jun. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Related Party Transaction [Line Items] | |||||||||||
Time charter revenues | $ 17,423 | $ 28,368 | $ 41,555 | ||||||||
Management and administrative services agreement fee percentage | 5.00% | ||||||||||
Required notice for termination of management service agreement | 120 days | ||||||||||
Capital Lease Obligations | $ 128,081 | $ 117,751 | |||||||||
Granted during the year | 24,000 | ||||||||||
Exercise price as of grant date (in dollars per share) | $ 20.55 | ||||||||||
Ownership percentage by noncontrolling owners | 69.60% | 67.50% | |||||||||
Dividends to China Petroleum Corporation | $ 7,000 | $ 12,360 | 11,400 | ||||||||
Golar Wilhelmsen Management AS | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Required notice for termination of management service agreement | 30 days | ||||||||||
Golar Eskimo | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Revenue of acquiree | $ 22,000 | $ 22,000 | $ 22,000 | 22,000 | |||||||
Net income of acquiree | $ 18,600 | 12,900 | |||||||||
Loan from Golar | $ 220,000 | ||||||||||
Golar LNG Limited | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Receivables (payables) from related parties | $ 184,872 | 131,161 | |||||||||
Interest income | 2,400 | ||||||||||
Quarterly distributions | $ 52,255 | $ 54,688 | $ 52,130 | ||||||||
Golar LNG Limited | Employee Stock Option | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Granted during the year | 29,950 | 45,000 | |||||||||
Exercise price as of grant date (in dollars per share) | $ 23.50 | $ 56.70 | |||||||||
Contractual term | 5 years | ||||||||||
Vesting period | 3 years | ||||||||||
Golar LNG Limited | Golar LNG Partners Credit Facility | Line of Credit | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Amount borrowed by Golar | $ 50,000 | ||||||||||
Repayment period following draw down | 28 days | ||||||||||
Golar LNG Limited | Golar Tundra | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Interest income | $ 2,200 | $ 2,000 | |||||||||
Golar LNG Limited | London Interbank Offered Rate (LIBOR) | Golar LNG Partners Credit Facility | Line of Credit | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Interest rate, margin on LIBOR | 5.00% | ||||||||||
Golar LNG Limited | Deposit Paid | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Interest income | 4,622 | 1,967 | $ 0 | ||||||||
Golar LNG Limited | Charter-hire Revenues Golar Grand | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Time charter revenues | 17,400 | 28,400 | 28,700 | ||||||||
Golar LNG Limited | Deposit Paid to Golar | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Receivables (payables) from related parties | 177,247 | 107,247 | |||||||||
Golar LNG Limited | Fees to Helm Energy Advisors Inc. | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Related party transaction fees | 0 | 795 | 2,307 | ||||||||
Golar LNG Limited | Golar Grand | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Time charter revenue, reduced hire rate | 75.00% | ||||||||||
Golar LNG Limited | Golar Eskimo | Loans Payable | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Loan from Golar | $ 220,000 | ||||||||||
Incentive fee, percentage of loan amount (up to) | 1.00% | ||||||||||
Repayment incentive fee | $ 1,100 | ||||||||||
Golar LNG Limited | Golar Eskimo | Loans Payable | London Interbank Offered Rate (LIBOR) | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Margin on LIBOR | 2.84% | ||||||||||
Golar LNG Partners [Member] | Hilli Sale Agreement [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Receivables (payables) from related parties | $ 658,000 | ||||||||||
Interest in Liquefaction Trains, Percent | 50.00% | ||||||||||
Related Party Transaction, Term of Agreement | 8 years | ||||||||||
Golar LNG Partners [Member] | Deposit Paid | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Interest rate, margin on LIBOR | 5.00% | ||||||||||
Related party transaction fees | $ 70,000 | ||||||||||
Golar LNG Partners [Member] | Deferred Purchase Price [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Interest rate, margin on LIBOR | 5.00% | ||||||||||
China Petroleum Corporation | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Dividends to China Petroleum Corporation | $ 7,000 | $ 12,360 | $ 11,400 | ||||||||
China Petroleum Corporation | Faraway Maritime Shipping Company | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Percentage of ownership | 60.00% | ||||||||||
Ownership percentage by noncontrolling owners | 40.00% | ||||||||||
Minimum | Golar LNG Partners [Member] | Hilli Sale Agreement [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Capital Lease Obligations | 468,000 | ||||||||||
Maximum | Golar LNG Partners [Member] | Hilli Sale Agreement [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Capital Lease Obligations | $ 480,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||||
Term of Charter | 5 years | |||
PT Pesona | ||||
Related Party Transaction [Line Items] | ||||
Expenses from transactions with related party | $ 0.5 | $ 0.4 | $ 0.4 | |
Golar LNG Limited | ||||
Related Party Transaction [Line Items] | ||||
Notification period for indemnification | 5 years | |||
PTGI | PT Pesona | ||||
Related Party Transaction [Line Items] | ||||
Ownership percentage | 51.00% | |||
Golar Partners, Common Units | ||||
Related Party Transaction [Line Items] | ||||
Number of earn-out units | 374,295 | |||
Golar Partners, General Partner Units | ||||
Related Party Transaction [Line Items] | ||||
Number of earn-out units | 7,639 |
OTHER COMMITMENTS AND CONTIN126
OTHER COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands, £ in Millions | 12 Months Ended | ||||
Dec. 31, 2017USD ($) | Dec. 31, 2017GBP (£) | Dec. 31, 2017vessel | Dec. 31, 2017tax_lease | Dec. 31, 2016USD ($)vessel | |
Commitments and Contingencies Disclosure [Abstract] | |||||
Carrying value of vessels and equipment secured against long-term loans and capital leases | $ 1,555,092 | $ 1,622,416 | |||
Number of tax leases | 1 | 1 | 1 | ||
Accrued gain or loss on terminated contracts | 1,000 | ||||
Indonesia | NR Satu Related Claim | Foreign Tax Authority | |||||
Loss Contingencies | |||||
Range of exposure | 24,000 | ||||
Minimum | |||||
Loss Contingencies | |||||
Range of exposure | 0 | ||||
Maximum | |||||
Loss Contingencies | |||||
Range of exposure | $ 30,000 | £ 22.5 |
UNIT-BASED COMPENSATION (Detail
UNIT-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum number of common units that may be delivered (in shares) | 500,000 | |
Share options granted (in shares) | 24,000 | |
Exercise price as of grant date (in dollars per share) | $ 20.55 | |
Options outstanding, weighted average exercise price | $ 18.24 | $ 20.55 |
Weighted average remaining contractual term (years) | 3 years 11 months | 0 years |
Options exercisable (in shares) | 33,000 | |
Options outstanding, aggregate intrinsic value | $ 200 | $ 0 |
Options, vested in period, fair value | 200 | 0 |
Compensation cost recognized | $ 239 | $ 23 |
Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividend yield(2) | 0.00% | 0.00% |
Unrecognized compensation cost | $ 400 | |
Weighted average period of recognition | 1 year 11 months | |
Golar Partners, Common Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share options granted (in shares) | 99,000 | |
Exercise price as of grant date (in dollars per share) | $ 20.55 | |
Golar Partners, Common Units | Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Contractual term | 5 years | |
Vesting November 18, 2017 | Golar Partners, Common Units | Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 33.33% | |
Vesting November 18, 2018 | Golar Partners, Common Units | Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 33.33% | |
Vesting November 18, 2019 | Golar Partners, Common Units | Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 33.33% |
UNIT-BASED COMPENSATION - Sched
UNIT-BASED COMPENSATION - Schedule of Weighted Average Assumptions Used (Details) - Employee Stock Option | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk free interest rate | 1.50% | 1.50% |
Expected volatility of common units(1) | 44.80% | 44.80% |
Expected dividend yield(2) | 0.00% | 0.00% |
Expected life of options (in years) | 5 years | 5 years |
UNIT-BASED COMPENSATION - Activ
UNIT-BASED COMPENSATION - Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Options outstanding at December 31, 2016 | 75 | |
Granted during the year | 24 | |
Options outstanding at December 31, 2017 | 99 | 75 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Options outstanding, weighted average exercise price, beginning balance | $ 20.55 | |
Exercise price as of grant date (in dollars per share) | 20.55 | |
Options outstanding, weighted average exercise price, ending balance | $ 18.24 | $ 20.55 |
Weighted average remaining contractual term (years) | 3 years 11 months | 4 years 11 months |
EQUITY (Details)
EQUITY (Details) | Oct. 19, 2016USD ($) | Jun. 30, 2016shares | Dec. 31, 2017USD ($)director$ / sharesshares | Sep. 30, 2017USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017USD ($)votedirector$ / sharesshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | Dec. 31, 2017USD ($)director$ / shares | Feb. 28, 2017 | |
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Ownership percentage by noncontrolling owners | 69.60% | 69.60% | 67.50% | 69.60% | |||||||
Common units repurchased and canceled | $ | $ 0 | $ 495,000 | $ 5,970,000 | $ 6,500,000 | |||||||
Number of votes each outstanding common unit is entitled to | vote | 1 | ||||||||||
Noncontrolling interest, voting right pro rata distribution threshold, percentage | 4.90% | ||||||||||
Number of elected directors | director | 4 | ||||||||||
Number of appointed directors | director | 3 | 3 | 3 | ||||||||
Maximum number of board of directors | director | 7 | 7 | 7 | ||||||||
Term of Charter | 5 years | ||||||||||
Reclassification of derivative | $ | $ 15,000,000 | ||||||||||
Common Units | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Sale of stock, maximum gross offerings | $ | $ 150,000,000 | ||||||||||
Sale of stock, number of shares issued | 145,675 | ||||||||||
Sale of stock, price per share (in usd per share) | $ / shares | $ 22.79 | $ 22.79 | $ 22.79 | ||||||||
Consideration received on sale of stock | $ | $ 3,300,000 | ||||||||||
Golar GP LLC | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Ownership percentage by noncontrolling owners | 2.00% | 2.00% | 2.00% | ||||||||
Golar LNG Limited | Subordinated Units | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Ownership percentage by Parent | 100.00% | 100.00% | 100.00% | ||||||||
Partners' Capital | Common Units | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Subordinated units converted into common units (in shares) | 15,949,831 | ||||||||||
Subordinated units converted into common units, conversion ratio | 1 | ||||||||||
General Partner | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Subordinated units converted into common units (in shares) | 0 | ||||||||||
Sale of stock, number of shares issued | 2,973 | ||||||||||
Sale of stock, price per share (in usd per share) | $ / shares | $ 22.79 | $ 22.79 | $ 22.79 | ||||||||
Repurchase of units (in shares) | 0 | 0 | |||||||||
Reclassification of derivative | $ | [1] | $ 640,000 | |||||||||
Limited Partner | Subordinated Units | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Subordinated units converted into common units (in shares) | (15,949,831) | ||||||||||
Repurchase of units (in shares) | 0 | 0 | |||||||||
Limited Partner | Common Units | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Subordinated units converted into common units (in shares) | 15,949,831 | ||||||||||
Authorized amount of share repurchase program | $ | $ 25,000,000 | $ 25,000,000 | |||||||||
Repurchase period (in years) | 2 years | ||||||||||
Repurchase of units (in shares) | 534,000 | 38,000 | 496,000 | ||||||||
Ownership percentage by Parent | 31.82% | 31.82% | 31.82% | 31.51% | |||||||
Reclassification of derivative | $ | $ 14,360,000 | ||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | |||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||
Reclassification of derivative | $ | $ (15,000,000) | ||||||||||
[1] | As of December 31, 2017, the carrying value of the equity attributable to the IDR holders was $32.5 million (2016: $32.5 million) |
EQUITY - Schedule of Movement i
EQUITY - Schedule of Movement in Number of Common Units, Subordinated Units, and General Partner Units (Details) - shares | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Nov. 30, 2017 | Oct. 31, 2017 | Feb. 28, 2017 | |
Increase (Decrease) in Limited Partners' Capital Account, Units Outstanding [Roll Forward] | ||||||
General Partners Units, beginning balance (in shares) | 1,318,517 | |||||
General Partners Units, issued | 1,423,843 | 1,318,517 | ||||
General Partners Units, ending balance (in shares) | 1,423,843 | 1,318,517 | ||||
Limited Partner | Preferred Units | ||||||
Increase (Decrease) in Limited Partners' Capital Account, Units Outstanding [Roll Forward] | ||||||
Number of Units Issued | 5,520,000 | |||||
Common and Subordinated Units, ending balance (in shares) | 5,520,000 | |||||
Limited Partner | Common Units | ||||||
Increase (Decrease) in Limited Partners' Capital Account, Units Outstanding [Roll Forward] | ||||||
Common and Subordinated Units, beginning balance (in shares) | 64,073,291 | 45,167,096 | 45,663,096 | |||
Common unit repurchase program (in shares) | (534,000) | (38,000) | (496,000) | |||
Subordinated units converted into common units (in shares) | 15,949,831 | |||||
IDR reset (in shares) | 2,994,364 | |||||
Number of Units Issued | 145,675 | 5,175,000 | ||||
Limited Partners' Capital Account, Units Converted | 374,295 | |||||
Common and Subordinated Units, ending balance (in shares) | 69,768,261 | 64,073,291 | 45,167,096 | |||
Limited Partner | Subordinated Units | ||||||
Increase (Decrease) in Limited Partners' Capital Account, Units Outstanding [Roll Forward] | ||||||
Common and Subordinated Units, beginning balance (in shares) | 0 | 15,949,831 | 15,949,831 | |||
Common unit repurchase program (in shares) | 0 | 0 | ||||
Subordinated units converted into common units (in shares) | (15,949,831) | |||||
IDR reset (in shares) | 0 | |||||
Common and Subordinated Units, ending balance (in shares) | 0 | 0 | 15,949,831 | |||
General Partner | ||||||
Increase (Decrease) in Limited Partners' Capital Account, Units Outstanding [Roll Forward] | ||||||
General Partners Units, beginning balance (in shares) | 1,318,517 | 1,257,408 | 1,257,408 | |||
Common unit repurchase program (in shares) | 0 | 0 | ||||
Subordinated units converted into common units (in shares) | 0 | |||||
IDR reset (in shares) | 61,109 | |||||
General Partners' Capital Account, Units Converted | 7,639 | |||||
General Partners Units, issued | 2,973 | 94,714 | ||||
General Partners Units, ending balance (in shares) | 1,423,843 | 1,318,517 | 1,257,408 |
EQUITY - Schedule of Capital Un
EQUITY - Schedule of Capital Units (Details) - Limited Partner - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2017 | Oct. 31, 2017 | Feb. 28, 2017 |
Common Units | |||
Capital Unit [Line Items] | |||
Number of Units Issued | 145,675 | 5,175,000 | |
Offering Price | $ 22.785 | $ 22.67 | |
Net Proceeds | $ 3,275 | $ 118,774 | |
Golar’s Ownership after the Offering | 31.82% | 31.51% | |
Preferred Units | |||
Capital Unit [Line Items] | |||
Number of Units Issued | 5,520,000 | ||
Offering Price | $ 25 | ||
Net Proceeds | $ 132,991 | ||
Golar’s Ownership after the Offering | 31.51% |
EQUITY - Exchange Agreement (De
EQUITY - Exchange Agreement (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 19, 2016 | Oct. 13, 2016 | Nov. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | |
Class of Stock [Line Items] | ||||||
Minimum quarterly distribution per unit (in dollars per share) | $ 0.5775 | $ 0.3850 | ||||
Revised Partnership Agreement, percent of Earn-Out Units to be issued | 50.00% | |||||
Partnership Agreement, percent of Earn-Out Units to be issued | 50.00% | |||||
Reclassification of derivative | $ 15,000 | |||||
Golar Partners, Common Units | ||||||
Class of Stock [Line Items] | ||||||
IDR reset (in shares) | 2,994,364 | |||||
Number of Earn-Out Units (in shares) | 748,592 | |||||
Golar Partners, General Partner Units | ||||||
Class of Stock [Line Items] | ||||||
IDR reset (in shares) | 61,109 | |||||
Number of Earn-Out Units (in shares) | 15,278 | |||||
Golar LNG Limited and Golar GP LLC | Incentive Distribution Rights | ||||||
Class of Stock [Line Items] | ||||||
Percent of units issued | 100.00% | |||||
Golar GP LLC | Golar Partners, Common Units | ||||||
Class of Stock [Line Items] | ||||||
IDR reset (in shares) | 2,425,435 | |||||
Golar GP LLC | Golar Partners, General Partner Units | ||||||
Class of Stock [Line Items] | ||||||
IDR reset (in shares) | 61,109 | |||||
Golar | Golar Partners, Common Units | ||||||
Class of Stock [Line Items] | ||||||
IDR reset (in shares) | 568,929 | |||||
Current Liabilities | ||||||
Class of Stock [Line Items] | ||||||
Reclassification of derivative | $ 15,000 | |||||
Earn-Out Units | ||||||
Class of Stock [Line Items] | ||||||
Mark-to-market valuation / Derivative liability | $ 15,000 | $ 7,400 | ||||
Earn-Out Units, Value, Transferred to Equity | $ 8,000 | |||||
General Partner | ||||||
Class of Stock [Line Items] | ||||||
IDR reset (in shares) | 61,109 | |||||
Reclassification of derivative | [1] | $ 640 | ||||
General Partners' Capital Account, Units Converted | 7,639 | |||||
Common Units | Limited Partner | ||||||
Class of Stock [Line Items] | ||||||
IDR reset (in shares) | 2,994,364 | |||||
Reclassification of derivative | $ 14,360 | |||||
Limited Partners' Capital Account, Units Converted | 374,295 | |||||
[1] | As of December 31, 2017, the carrying value of the equity attributable to the IDR holders was $32.5 million (2016: $32.5 million) |
EQUITY - Series A Preferred Uni
EQUITY - Series A Preferred Units (Details) - Series A - USD ($) $ / shares in Units, $ in Millions | Feb. 15, 2018 | Oct. 31, 2017 | Dec. 31, 2017 |
Preferred Units [Line Items] | |||
Consideration received on sale of stock | $ 133 | ||
Preferred Units | |||
Preferred Units [Line Items] | |||
Sale of stock, number of shares issued | 5,520,000 | ||
Sale of stock, price per share | $ 25 | ||
Preferred stock, dividend percentage | 8.75% | ||
Subsequent Event | Preferred Units | |||
Preferred Units [Line Items] | |||
Preferred stock, dividend rate | $ 0.63802 |
EARNINGS PER UNIT AND CASH D135
EARNINGS PER UNIT AND CASH DISTRIBUTIONS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Unitholders’ interest in net income | $ 124,656 | $ 139,948 | $ 106,476 |
Less: distributions paid | (160,069) | (151,694) | (103,241) |
Over (under) distributed earnings | $ (35,413) | $ (11,746) | 3,235 |
Earnings per unit: | |||
Ownership percentage by noncontrolling owners | 69.60% | 67.50% | |
General Partner ownership interest | 2.00% | ||
First distribution of additional available cash from operating surplus | After Subordination Period | |||
Earnings per unit: | |||
Distribution percentage to all unit holders | 98.00% | ||
General partner interest distribution percentage | 2.00% | ||
Distribution percentage to holders of Incentive distribution rights | 0.00% | ||
Quarterly distribution amount | $ 0.5775 | ||
Second distribution of additional available cash from operating surplus | First Target Quarterly Distribution | |||
Earnings per unit: | |||
Distribution percentage to all unit holders | 98.00% | ||
General partner interest distribution percentage | 2.00% | ||
Distribution percentage to holders of Incentive distribution rights | 0.00% | ||
Quarterly distribution amount | $ 0.6641 | ||
Third distribution of additional available cash from operating surplus | Second Target Quarterly Distribution | |||
Earnings per unit: | |||
Distribution percentage to all unit holders | 85.00% | ||
General partner interest distribution percentage | 2.00% | ||
Distribution percentage to holders of Incentive distribution rights | 13.00% | ||
Fourth distribution of additional available cash from operating surplus | Third Target Quarterly Distribution | |||
Earnings per unit: | |||
Distribution percentage to all unit holders | 75.00% | ||
General partner interest distribution percentage | 2.00% | ||
Distribution percentage to holders of Incentive distribution rights | 23.00% | ||
Thereafter | After Subordination Period | |||
Earnings per unit: | |||
Distribution percentage to all unit holders | 50.00% | ||
General partner interest distribution percentage | 2.00% | ||
Distribution percentage to holders of Incentive distribution rights | 48.00% | ||
Quarterly distribution amount | $ 0.8663 | ||
Common Units | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Unitholders’ interest in net income | $ 124,656 | $ 139,948 | $ 106,476 |
Basic: | |||
Weighted average units outstanding (in shares) | 68,671 | 53,745 | 45,654 |
Diluted: | |||
Weighted average units outstanding (in shares) | 68,671 | 53,745 | 45,654 |
Earnout units | |||
Diluted: | |||
Weighted average units outstanding (in shares) | 654 | 189 | 0 |
Common stock and common stock equivalents | |||
Diluted: | |||
Weighted average units outstanding (in shares) | 69,325 | 53,934 | 45,654 |
Common Units | |||
Earnings per unit: | |||
Basic - Common unitholders (in dollars per share) | $ 1.82 | $ 2.44 | $ 2.38 |
Diluted - Common unitholders (in dollars per share) | 1.80 | 2.43 | 2.38 |
Cash distributions declared and paid in the period per unit (in dollars per share) | 2.31 | 2.31 | 2.295 |
Subsequent event: Cash distributions declared and paid per unit relating to the period (in dollars per share) | 0.5775 | $ 0.5775 | $ 0.5775 |
Minimum | Third distribution of additional available cash from operating surplus | Second Target Quarterly Distribution | |||
Earnings per unit: | |||
Quarterly distribution amount | 0.6641 | ||
Minimum | Fourth distribution of additional available cash from operating surplus | Third Target Quarterly Distribution | |||
Earnings per unit: | |||
Quarterly distribution amount | 0.7219 | ||
Maximum | Third distribution of additional available cash from operating surplus | Second Target Quarterly Distribution | |||
Earnings per unit: | |||
Quarterly distribution amount | 0.7219 | ||
Maximum | Fourth distribution of additional available cash from operating surplus | Third Target Quarterly Distribution | |||
Earnings per unit: | |||
Quarterly distribution amount | $ 0.8663 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | Apr. 06, 2018 | Mar. 31, 2018 | Feb. 28, 2018 | Jan. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Apr. 30, 2016 |
Subsequent events: | |||||||||||
Proceeds from issuances of equity, net of issue costs | $ 255,040,000 | $ 0 | $ 0 | ||||||||
Notional Amount | $ 250,000,000 | 250,000,000 | $ 250,000,000 | ||||||||
Common units repurchased and canceled | 0 | 495,000 | $ 5,970,000 | 6,500,000 | |||||||
Senior Secured Credit Facility | $800 million facility | |||||||||||
Subsequent events: | |||||||||||
Debt Instrument, Face Amount | $ 800,000,000 | ||||||||||
Subsequent Event | |||||||||||
Subsequent events: | |||||||||||
Duration of charter (in years) | 15 years | ||||||||||
Proceeds from issuances of equity, net of issue costs | $ 14,400,000 | ||||||||||
Cash distributions paid (in dollars per share) | $ 0.5775 | ||||||||||
Preferred stock, dividends, per share, cash paid | $ 0.63802 | ||||||||||
Common units repurchased and canceled | $ 8,000,000 | ||||||||||
Subsequent Event | Senior Secured Credit Facility | $800 million facility | |||||||||||
Subsequent events: | |||||||||||
Repayment amount | $ 75,000,000 | ||||||||||
Interest Rate Swap | |||||||||||
Subsequent events: | |||||||||||
Notional Amount | $ 1,335,307,000 | $ 1,335,307,000 | $ 1,131,746,000 | $ 1,335,307,000 | |||||||
Interest Rate Swap | Subsequent Event | |||||||||||
Subsequent events: | |||||||||||
Derivative, term of contract (in years) | 8 years | ||||||||||
Notional Amount | $ 480,000,000 | ||||||||||
Fixed Interest Rate | 2.86% | ||||||||||
Common Units | |||||||||||
Subsequent events: | |||||||||||
Sale of stock, number of shares issued | 145,675 | ||||||||||
Common Units | Subsequent Event | |||||||||||
Subsequent events: | |||||||||||
Sale of stock, number of shares issued | 617,969 | ||||||||||
General Partner | |||||||||||
Subsequent events: | |||||||||||
Sale of stock, number of shares issued | 2,973 | ||||||||||
Repurchase of units (in shares) | 0 | 0 | |||||||||
General Partner | Subsequent Event | |||||||||||
Subsequent events: | |||||||||||
Sale of stock, number of shares issued | 12,548 | ||||||||||
Limited Partner | Common Units | |||||||||||
Subsequent events: | |||||||||||
Authorized amount of share repurchase program | $ 25,000,000 | $ 25,000,000 | |||||||||
Repurchase period (in years) | 2 years | ||||||||||
Repurchase of units (in shares) | 534,000 | 38,000 | 496,000 | ||||||||
Limited Partner | Common Units | Subsequent Event | |||||||||||
Subsequent events: | |||||||||||
Authorized amount of share repurchase program | $ 25,000,000 | ||||||||||
Repurchase period (in years) | 2 years | ||||||||||
Repurchase of units (in shares) | 439,672 |