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FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended
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Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Interest rate swap transactions | As of December 31, 2020 and 2019, 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 $) |  | Year end |  | Notional value |  | Maturity dates |  | Fixed interest rates
Interest rate swaps: |  |  |  |  |  |  |  |
Receiving floating, pay fixed |  | 2020 |  | 597,500 |  |  | 2021/2029 |  | 1.69% to 2.37%
Receiving floating, pay fixed |  | 2019 |  | 737,500 |  |  | 2020/2029 |  | 1.68% to 2.37%
Fair value hierarchy of derivative and non-derivative financial instruments | The carrying value and fair value of our financial instruments at December 31, 2020 and 2019 are as follows:
|  | 2020 | 2020 | 2019 | 2019
(in thousands of $) | Fair value hierarchy | Carrying value | Fair value | Carrying value | Fair value
Non-derivatives: |  |  |  |  |
Cash and cash equivalents | Level 1 | 127,691 |  | 127,691 |  | 222,123 |  | 222,123 |
Restricted cash and short-term deposits | Level 1 | 163,181 |  | 163,181 |  | 188,289 |  | 188,289 |
Current portion of long-term debt and short-term debt (1) | Level 2 | (984,510) |  | (984,510) |  | (1,244,599) |  | (1,244,599) |
Long-term debt – convertible bonds (2) | Level 2 | (383,740) |  | (366,581) |  | (368,134) |  | (355,943) |
Long-term debt (1) | Level 2 | (1,011,281) |  | (1,011,281) |  | (956,018) |  | (956,018) |
Derivatives: |  |  |  |  |
Oil derivative instrument | Level 2 | 540 |  | 540 |  | 45,640 |  | 45,640 |
Interest rate swaps asset (2) | Level 2 | — |  | — |  | 84 |  | 84 |
Interest rate swaps liability (2) | Level 2 | (44,315) |  | (44,315) |  | (5,798) |  | (5,798) |
Foreign exchange swaps asset (2) | Level 2 | — |  | — |  | 1,246 |  | 1,246 |
Foreign exchange swaps liability (2) | Level 2 | (1,310) |  | (1,310) |  | — |  | — |
Total return equity swap liability (2) (3) | Level 2 | — |  | — |  | (50,407) |  | (50,407) |
(1) Our debt obligations are recorded at amortized cost in the consolidated balance sheets. The amounts presented in the table, are gross of the deferred charges amounting to $28.7 million and $32.9 million at December 31, 2020 and December 31, 2019, respectively. (2) 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. (3) The fair value of our total return equity swap is calculated using the closing prices of the underlying listed shares and units, dividends paid since inception and the interest rate charged by the counterparty.
Fair value of derivative instruments on a gross basis | The following table summarizes the fair value of our derivative instruments on a gross basis (none of which have been designated as hedges) recorded in our consolidated balance sheets as of December 31, 2020 and 2019:
| Balance sheet classification | 2020 |  | 2019
(in thousands of $) |  |  |  |
Asset derivatives |  |  |  |
Oil derivative instrument | Other non-current assets | 540 |  |  | 45,640 |
Foreign exchange swaps | Other current and non-current assets | — |  |  | 1,246 |
Interest rate swaps | Other current and non-current assets | — |  |  | 84 |
Total asset derivatives |  | 540 |  |  | 46,970 |
Liability derivatives |  |  |  |
Total return equity swap | Other current liabilities | — |  |  | (50,407) |
Interest rate swaps | Other current liabilities | (44,315) |  |  | (5,798) |
Foreign exchange swaps | Other current liabilities | (1,310) |  |  | — |
Total liability derivatives |  | (45,625) |  |  | (56,205) |
Offsetting assets and liabilities | 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 December 31, 2020 and 2019 would be adjusted as detailed in the following table:
| 2020 | 2019
| 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
(in thousands of $) |  |  |  |  |  |
Total asset derivatives | — |  | — |  | — |  | 84 |  | (52) |  | 32 |
Total liability derivatives | 44,315 |  | — |  | 44,315 |  | 5,798 |  | (52) |  | 5,746 |

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