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Financial Instruments (Tables) | 6 Months Ended
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Jun. 30, 2020
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 June 30, 2020 and December 31, 2019 are as follows:
|  | June 30, 2020 |  | December 31, 2019 |  |  |  |  |
(in thousands of $) | Fair value hierarchy | Carrying value | Fair value | Carrying value | Fair value |  |  |  |
Non-Derivatives: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | Level 1 | 128,661 |  | 128,661 |  | 222,123 |  | 222,123 |  |  |  |  |
Restricted cash and short-term deposits | Level 1 | 136,535 |  | 136,535 |  | 188,289 |  | 188,289 |  |  |  |  |
Current portion of long-term debt and short-term debt (1)(2) | Level 2 | (1,203,095) |  | (1,203,095) |  | (1,244,599) |  | (1,244,599) |  |  |  |  |
Long-term debt - convertible bonds (2) | Level 2 | (375,726) |  | (293,201) |  | (368,134) |  | (355,943) |  |  |  |  |
Long-term debt (2) | Level 2 | (997,107) |  | (997,107) |  | (956,018) |  | (956,018) |  |  |  |  |
Derivatives: |  |  |  |  |  |  |  |  |
Oil derivative instrument(3)(6) | Level 2 | 6,020 |  | 6,020 |  | 45,640 |  | 45,640 |  |  |  |  |
Interest rate swaps asset (3)(4) | Level 2 | — |  | — |  | 84 |  | 84 |  |  |  |  |
Interest rate swaps liability (3)(4) | Level 2 | (50,383) |  | (50,383) |  | (5,798) |  | (5,798) |  |  |  |  |
Foreign exchange swaps asset (3) | Level 2 | 2,446 |  | 2,446 |  | 1,246 |  | 1,246 |  |  |  |  |
Foreign exchange swaps liability (3) | Level 2 | (57) |  | (57) |  | — |  | — |  |  |  |  |
Total return equity swap liability (3)(4)(5) | Level 2 | — |  | — |  | (50,407) |  | (50,407) |  |  |  |  |
(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 $31.1 million and $32.9 million at June 30, 2020 and December 31, 2019, respectively. (3) Derivative liabilities are captured within other current liabilities and derivative assets are generally captured within other current assets and non-current assets on the balance sheet. (4) 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. (5) The fair value of our total return equity swap is calculated using the closing prices of the underlying listed shares, dividends paid since inception and the interest rate charged by the counterparty. In February 2020, we purchased 1.5 million of our shares and 107,000 of Golar Partners' units underlying the total return swap, at fair consideration of $72.7 million, of which $59.3 million restricted cash was released at repurchase, with $55.5 million to settle the derivative liability fair value (see note 10) and $17.2 million relating to the fair value of the shares and units underlying the total return swap. The effect of our total return swap facilities in our consolidated statement of operations as at June 30, 2020 was a loss of $5.1 million. In February 2020, we cancelled all our treasury shares that we repurchased in the current and previous periods amounting to 3.5 million shares. (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 short-term oil prices obtained from quoted prices in active markets.
Schedule of Designated Cash Flow Hedges | As of June 30, 2020, 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 | 562,500 |  | 2021 to 2029 | 1.69% - 2.37%
Offsetting Assets | 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, 2020 and December 31, 2019 would be adjusted as detailed in the following table:
| June 30, 2020 |  |  |  | December 31, 2019 |  |  |
(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
Interest rate swaps asset | — |  |  | — |  | — |  | 84 |  |  | (52) |  | 32 |
Interest rate swaps liability | (50,383) |  |  | — |  | (50,383) |  | (5,798) |  |  | 52 |  | (5,746) |
Foreign exchange swap asset | 2,446 |  |  | (57) |  | 2,389 |  | 1,246 |  |  | — |  | 1,246 |
Foreign exchange swap liability | (57) |  |  | 57 |  | — |  | — |  |  | — |  | — |
Offsetting Liabilities | 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, 2020 and December 31, 2019 would be adjusted as detailed in the following table:
| June 30, 2020 |  |  |  | December 31, 2019 |  |  |
(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
Interest rate swaps asset | — |  |  | — |  | — |  | 84 |  |  | (52) |  | 32 |
Interest rate swaps liability | (50,383) |  |  | — |  | (50,383) |  | (5,798) |  |  | 52 |  | (5,746) |
Foreign exchange swap asset | 2,446 |  |  | (57) |  | 2,389 |  | 1,246 |  |  | — |  | 1,246 |
Foreign exchange swap liability | (57) |  |  | 57 |  | — |  | — |  |  | — |  | — |

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