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Financial Instruments | 6 Months Ended
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Jun. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Financial Instruments | FINANCIAL INSTRUMENTS 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 of 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. The carrying values and estimated fair values of our financial instruments at June 30, 2015 and December 31, 2014 are as follows:
|  | June 30, 2015 | December 31, 2014
(in thousands of $) | Fair value Hierarchy | Carrying Value | Fair value | Carrying Value | Fair Value
Non-Derivatives: |  |  |  |  |
Cash and cash equivalents | Level 1 | 374,828 |  | 374,828 |  | 191,410 |  | 191,410 |
Restricted cash | Level 1 | 35,524 |  | 35,524 |  | 74,587 |  | 74,587 |
Investment in available-for-sale securities | Level 1 | 40,485 |  | 40,485 |  | 275,307 |  | 275,307 |
Cost method investment (5) | Level 3 | 204,172 |  | 221,140 |  | 204,172 |  | 307,939 |
Investment in affiliates | Level 3 | 323,995 |  | 323,995 |  | 335,372 |  | 335,372 |
Short-term debt due from a related party (2) | Level 2 | — |  | — |  | 20,000 |  | 20,000 |
Long term debt due from a related party (1) | Level 2 | 100,000 |  | 100,000 |  | — |  | — |
Short term loans receivable (2) | Level 2 | 87,092 |  | 87,092 |  | — |  | — |
Long term loans receivable (1) | Level 2 | 53,000 |  | 53,000 |  | — |  | — |
Short-term debt (2) | Level 2 | 224,864 |  | 224,864 |  | 116,431 |  | 116,431 |
Long-term debt - convertible bonds (1) | Level 2 | 240,662 |  | 302,678 |  | 238,037 |  | 251,555 |
Long-term debt - floating (1) | Level 2 | 1,352,462 |  | 1,352,462 |  | 1,026,319 |  | 1,026,319 |
Derivatives: |  |  |  |  |
Interest rate swaps asset (3) (4) | Level 2 | 6,995 |  | 6,995 |  | 12,603 |  | 12,603 |
Interest rate swaps liability (3) (4) | Level 2 | 1,639 |  | 1,639 |  | 3,038 |  | 3,038 |
Total return equity swap asset | Level 2 | 21,231 |  | 21,231 |  | — |  | — |
Total return equity swap liability | Level 2 | — |  | — |  | 13,656 |  | 13,656 |
1. | Our debt obligations are recorded at amortized cost in the condensed consolidated balance sheets.
2. | The carrying amounts of our short-term debts and loans receivable approximate its fair values because of the short maturity of these instruments.
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 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, closing quoted market prices and our creditworthiness and that of our counterparties. The fair value/carrying value of interest rate swap agreements that qualify and are designated as cash flow hedges for accounting purposes as of June 30, 2015 and December 31, 2014 was $nil (with a notional amount of $nil) and $0.4 million (with a notional amount of $100.9 million), respectively.
5. | The carrying value of cost method investments refers to our holdings in Golar Partners (representing the general partner units and incentive distribution rights ("IDRs") which were measured at fair value as of the deconsolidation date December 13, 2012) and OLT Offshore LNG Toscana S.p.A ("OLT‑O"). As of June 30, 2015, we did not identify any events or changes in circumstances that would indicate the carrying values of our investments in Golar Partners and OLT-O were not recoverable. The fair value of our general partner units was based on the share price of the publicly traded common units of Golar Partners adjusted for restrictions over the transferability and reduction in voting rights.
6. | The fair value of total return equity swaps is calculated using the closing prices of the underlying listed shares, dividends paid since inception and the interest rate charged by the counterparty.
7. | The fair values of the equity derivatives are classified as other current liabilities in the balance sheet.
8. | Our investment in affiliates are recorded for by the equity method of accounting.
The carrying values of accounts receivable, accounts payable and accrued liabilities, excluded from the table above, approximate fair values because of the short maturity of these instruments. As of June 30, 2015, we had entered into the following interest rate swap transactions involving the payment of fixed rates in exchange for LIBOR as summarized below:
Instrument (in thousands of $) | Notional value |  | Maturity Dates | Fixed Interest Rates
Interest rate swaps: |  |  |
Receiving floating, pay fixed | 1,250,000 |  | 2018 to 2021 | 1.13% to 1.94%
As of June 30, 2015, the notional principal amount of the debt outstanding subject to interest rate swap agreements was $1,250.0 million (December 31, 2014: $1,475.9 million). 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 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 balances of derivatives on a net basis, the amounts presented in our consolidated balance sheets as of June 30, 2015 and December 31, 2014 would be adjusted as detailed in the following table:
| June 30, 2015 |  | December 31, 2014 |
(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 | 28,226 |  |  | (1,073 | ) |  | 27,153 |  |  | 12,603 |  |  | (292 | ) |  | 12,311 |  |
Total liability derivatives | 1,639 |  |  | (1,073 | ) |  | 566 |  |  | 16,694 |  |  | (292 | ) |  | 16,402 |  |

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- Definition The entire disclosure for financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References No definition available. + Details
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