Segment Information |
The table below presents segment information for the years ended December 31, 2023, 2022 and 2021: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2023 | (in thousands of $) | | Terminals and Infrastructure | | Ships | | Total Segment | | Consolidation and Other(4) | | Consolidated | Statement of operations: | | | | | | | | | | | Total revenues | | $ | 2,141,085 | | | $ | 293,605 | | | $ | 2,434,690 | | | $ | (21,394) | | | $ | 2,413,296 | | Cost of sales (1) (3) | | 764,828 | | | — | | | 764,828 | | | 112,623 | | | 877,451 | | Vessel operating expenses | | — | | | 51,387 | | | 51,387 | | | (5,948) | | | 45,439 | | Operations and maintenance | | 166,785 | | | — | | | 166,785 | | | — | | | 166,785 | | Segment Operating Margin | | $ | 1,209,472 | | | $ | 242,218 | | | $ | 1,451,690 | | | $ | (128,069) | | | $ | 1,323,621 | | Balance sheet: | | | | | | | | | | | Total assets | | $ | 9,680,917 | | | $ | 820,328 | | | $ | 10,501,245 | | | $ | — | | | $ | 10,501,245 | | Other segmental financial information: | | | | | | | | | | | Capital expenditures(2) | | $ | 3,461,659 | | | $ | 7,568 | | | $ | 3,469,227 | | | $ | — | | | $ | 3,469,227 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2022 | (in thousands of $) | | Terminals and Infrastructure | | Ships | | Total Segment | | Consolidation and Other(4) | | Consolidated | Statement of operations: | | | | | | | | | | | Total revenues | | $ | 2,168,565 | | | $ | 444,616 | | | $ | 2,613,181 | | | $ | (244,909) | | | $ | 2,368,272 | | Cost of sales (1) (3) | | 1,142,374 | | | — | | | 1,142,374 | | | (131,946) | | | 1,010,428 | | Vessel operating expenses | | — | | | 90,544 | | | 90,544 | | | (27,026) | | | 63,518 | | Operations and maintenance | | 129,970 | | | — | | | 129,970 | | | (24,170) | | | 105,800 | | Segment Operating Margin | | $ | 896,221 | | | $ | 354,072 | | | $ | 1,250,293 | | | $ | (61,767) | | | $ | 1,188,526 | | Balance sheet: | | | | | | | | | | | Total assets | | $ | 5,913,775 | | | $ | 1,791,307 | | | $ | 7,705,082 | | | $ | — | | | $ | 7,705,082 | | Other segmental financial information: | | | | | | | | | | | Capital expenditures(2) | | $ | 1,482,871 | | | $ | 27,127 | | | $ | 1,509,998 | | | $ | — | | | $ | 1,509,998 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2021 | (in thousands of $) | | Terminals and Infrastructure | | Ships | | Total Segment | | Consolidation and Other(4) | | Consolidated | Statement of operations: | | | | | | | | | | | Total revenues | | $ | 1,366,142 | | | $ | 329,608 | | | $ | 1,695,750 | | | $ | (372,940) | | | $ | 1,322,810 | | Cost of sales (1) (3) | | 789,069 | | | — | | | 789,069 | | | (173,059) | | | 616,010 | | Vessel operating expenses | | 3,442 | | | 64,385 | | | 67,827 | | | (16,150) | | | 51,677 | | Operations and maintenance | | 92,424 | | | — | | | 92,424 | | | (19,108) | | | 73,316 | | Segment Operating Margin | | $ | 481,207 | | | $ | 265,223 | | | $ | 746,430 | | | $ | (164,623) | | | $ | 581,807 | | Other segmental financial information: | | | | | | | | | | | Capital expenditures(2) | | $ | 833,910 | | | $ | 8,293 | | | $ | 842,203 | | | $ | — | | | $ | 842,203 | |
(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 commodity purchases and sales, and realized gains of $139,089 for the year ended December 31, 2023 were recognized as a reduction to Cost of sales in the segment measure. No realized gains or loss for the years ended December 31, 2022 or 2021 were recognized.
The Company recognized unrealized (losses) and earnings of ($106,393), $106,103 and ($2,788) on the mark-to-market value of derivative transactions for the years ended December 31, 2023, 2022 and 2021, respectively, and these losses reconcile Cost of sales in the segment measure to Cost of sales in the Consolidated Statements of Operations and Comprehensive Income.
The Company has excluded contract acquisition costs that do not meet the criteria for capitalization from the segment measure. Contract acquisition costs of $6,232 for the year ended December 31, 2023 reconcile Cost of sales in the segment measure to Cost of sales in the Consolidated Statements of Operations and Comprehensive Income. The Company did not incur such costs in the years ended December 31, 2022 and 2021.
(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 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 prior to the disposition of these investments, the exclusion of the unrealized mark-to-market gain or loss on derivative instruments, and the exclusion of non-capitalizable contract acquisition costs.
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Reconciliation of Operating Profit (Loss) from Segments to Consolidated |
The following table reconciles Net income, the most comparable financial statement measure, to Consolidated Segment Operating Margin: | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, | (in thousands of $) | | 2023 | | 2022 | | 2021 | Net income | | $ | 548,876 | | | $ | 184,786 | | | $ | 92,711 | | Add: | | | | | | | Selling, general and administrative | | 205,104 | | | 236,051 | | | 199,881 | | Transaction and integration costs | | 6,946 | | | 21,796 | | | 44,671 | | Depreciation and amortization | | 187,324 | | | 142,640 | | | 98,377 | | Interest expense | | 277,842 | | | 236,861 | | | 154,324 | | Other (income) expense, net | | 10,408 | | | (48,044) | | | (17,150) | | Gain on sale of assets, net | | (29,378) | | | — | | | — | | Tax (benefit) provision | | 115,513 | | | (123,439) | | | 12,461 | | Asset impairment expense | | 10,958 | | | 50,659 | | | — | | Loss on extinguishment of debt, net | | — | | | 14,997 | | | 10,975 | | Loss (income) from equity method investments | | (9,972) | | | 472,219 | | | (14,443) | | Consolidated Segment Operating Margin | | $ | 1,323,621 | | | $ | 1,188,526 | | | $ | 581,807 | |
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