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Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Carrying Values and Estimated Values of Financial Instruments
The carrying values and estimated fair values of our financial instruments at September 30, 2018 and December 31, 2017 are as follows:

 
 
September 30, 2018
December 31, 2017
(in thousands of $)
Fair value
hierarchy
Carrying value
Fair value
Carrying value
Fair value
Non-Derivatives:
 
 
 
 
 
Cash and cash equivalents
Level 1
306,387

306,387

214,862

214,862

Restricted cash and short-term deposits
Level 1
457,776

457,776

397,815

397,815

Current portion of long-term debt and short-term debt (1)(2)
Level 2
(833,691
)
(833,691
)
(1,393,229
)
(1,393,229
)
Long-term debt - convertible bonds (2)
Level 2
(350,148
)
(420,653
)
(340,173
)
(430,361
)
Long-term debt (2)
Level 2
(1,452,821
)
(1,452,821
)
(701,498
)
(701,498
)
 
 
 
 
 
 
Derivatives:
 
 
 
 
 
Oil derivative instrument (6)
Level 2
280,470

280,470

94,700

94,700

Interest rate swaps asset (3)
Level 2
16,225

16,225

10,166

10,166

Foreign exchange swaps asset
Level 2
129

129

51

51

Foreign exchange swaps liability
Level 2
(460
)
(460
)
(223
)
(223
)
Total return equity swap liability (3)(4)
Level 2
(50,899
)
(50,899
)
(40,141
)
(40,141
)
Earn-Out Units asset (5)
Level 2
—

—

7,400

7,400


(1) The carrying amounts of our short-term debt approximate their fair values because of the near term maturity of these instruments.
(2) Our debt obligations are recorded at amortized cost in the consolidated balance sheets. The amounts presented in the table above are gross of the deferred finance charges amounting to $17.1 million and $24.1 million at September 30, 2018 and December 31, 2017, respectively.
(3) The fair value of certain 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.
(4) 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.
(5) The Earn-Out Units are issuable to Golar in connection with the IDR reset transaction between Golar and Golar Partners in October 2016. As of September 30, 2018, the fair value of the Earn-Out Units was written down to $nil due to the expectation that Golar Partners would decrease its quarterly distribution.
(6) The fair value of the oil derivative instrument was determined using the estimated discounted cash flows of the additional payments due to us as a result of oil prices moving above a contractual oil price floor over the term of the LTA. Significant inputs used in the valuation of the oil derivative include management’s estimate of an appropriate discount rate and the length of time to blend the long-term and the short-term oil prices obtained from quoted prices in active markets.
Schedule of Interest Rate Derivatives
As of September 30, 2018, we were party to 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%
Offsetting Assets
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 September 30, 2018 and December 31, 2017 would be adjusted as detailed in the following table:
 
September 30, 2018
 
December 31, 2017
 
(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
16,225

 
—

 
16,225

 
10,166

 
—

 
10,166