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Segments
 3 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
Segments
23. Segments
As of March 31, 2023, the Company operates in two reportable segments: Terminals and Infrastructure and Ships:
•Terminals and Infrastructure includes the Company’s vertically integrated gas to power solutions, spanning the entire production and delivery chain from natural gas procurement and liquefaction to logistics, shipping, facilities and conversion or development of natural gas-fired power generation. Vessels that are utilized in the Company’s terminal or logistics operations are included in this segment.
Terminals and Infrastructure Operating Margin included the Company’s effective share of revenues, expenses and                         operating margin attributable to the Company's 50% investment in Centrais Elétricas de Sergipe Participações S.A. (“CELSEPAR”); the Company disposed of this investment in the fourth quarter of 2022.

Terminal and Infrastructure segment includes realized gains and losses from the settlement of derivative transactions entered into as economic hedges to reduce market risks associated with commodity prices.
•Ships includes FSRUs and LNG carriers that are leased to customers under long-term or spot arrangements. FSRUs are stationed offshore for customer’s operations to regasify LNG; LNG carriers are vessels that transport LNG and are compatible with many LNG loading and receiving terminals globally. Five FSRUs and five LNG carriers are included in this segment. The Company’s investment in Energos is also included in the Ships segment.
Ships Operating Margin included our effective share of revenue, expenses and operating margin attributable to our ownership of 50% of the common units of Hilli LLC prior to the disposition of this investment in first quarter of 2023.
The CODM uses Segment Operating Margin to evaluate the performance of the segments and allocate resources. Segment Operating Margin is defined as the segment’s revenue less cost of sales less operations and maintenance less vessel operating expenses, excluding unrealized gains or losses to financial instruments recognized at fair value.
Management considers Segment Operating Margin to be the appropriate metric to evaluate and compare the ongoing operating performance of the Company’s segments on a consistent basis across reporting periods as it eliminates the effect of items which management does not believe are indicative of each segment’s operating performance.
The table below presents segment information for the three months ended March 31, 2023 and 2022:
Three Months Ended March 31, 2023
(in thousands of $)Terminals and
Infrastructure		ShipsTotal
Segment
Consolidation
and Other(4)
Consolidated
Statement of operations:
Total revenues$502,608 $97,917 $600,525 $(21,394)$579,131 
Cost of sales(1) (3)
73,798 — 73,798 111,140 184,938 
Vessel operating expenses— 19,239 19,239 (5,948)13,291 
Operations and maintenance26,671 — 26,671 — 26,671 
Segment Operating Margin$402,139 $78,678 $480,817 $(126,586)$354,231 
Balance sheet:
Total assets$6,584,603 $1,639,143 $8,223,746 $— $8,223,746 
Other segmental financial information:
Capital expenditures(2)
$931,823 $— $931,823 $— $931,823 
Three Months Ended March 31, 2022
(in thousands of $)Terminals and
Infrastructure		ShipsTotal Segment
Consolidation
and Other(4)
Consolidated
Statement of operations:
Total revenues$480,349 $114,942 $595,291 $(90,173)$505,118 
Cost of sales(3)
235,532 — 235,532 (27,234)208,298 
Vessel operating expenses3,492 25,942 29,434 (6,470)22,964 
Operations and maintenance30,242 — 30,242 (7,074)23,168 
Segment Operating Margin$211,083 $89,000 $300,083 $(49,395)$250,688 
Balance sheet:
Total assets$5,291,601 $2,074,207 $7,365,808 $— $7,365,808 
Other segmental financial information:
Capital expenditures(2)
$196,390 $3,289 $199,679 $— $199,679 
(1) Cost of sales in the Company’s segment measure only includes realized gains and losses on derivative transactions that are an economic hedge of our commodity purchases and sales, and in the first quarter of 2023, realized gains of $146,112 were recognized as a reduction to Cost of sales in the segment measure.

Unrealized changes in the mark-to-market value of derivative transactions of $111,140 reconcile Cost of sales in the segment measure to Cost of sales in the condensed consolidated statements of operations and comprehensive income.

(2) Capital expenditures includes amounts capitalized to construction in progress and additions to property, plant and equipment during the period.

(3) Cost of sales is presented exclusive of costs included in Depreciation and amortization in the condensed consolidated statements of operations and comprehensive income.
(4) Consolidation and Other adjusts for the inclusion of the effective share of revenues, expenses and operating margin attributable to the Company's 50% ownership of CELSEPAR and the common units of Hilli LLC in the segment measure and exclusion of the unrealized mark-to-market gain or loss on derivative instruments.

Consolidated Segment Operating Margin is defined as net income, adjusted for Selling, general and administrative expenses, Transaction and integration costs, Depreciation and amortization, Interest expense, Other expense (income), net, Income from equity method investments and Tax provision (benefit).
The following table reconciles Net income, the most comparable financial statement measure, to Consolidated Segment Operating Margin:
Three Months Ended March 31,
(in thousands of $)20232022
Net income$151,566 $241,181 
Add:
Selling, general and administrative52,138 48,041 
Transaction and integration costs494 1,901 
Depreciation and amortization34,375 34,290 
Interest expense71,673 44,916 
Other expense (income), net25,005 (19,725)
Tax provision (benefit)28,960 (49,681)
(Income) from equity method investments(9,980)(50,235)
Consolidated Segment Operating Margin$354,231 $250,688