Document and Entity Information	6 Months Ended
Document and Entity Information	Jun. 30, 2018
Document and Entity Information
Entity Registrant Name	Danaos Corp
Entity Central Index Key	0001369241
Document Type	6-K
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
CURRENT ASSETS
Cash and cash equivalents	$ 72,423	$ 66,895
Restricted cash	2,812	2,812
Accounts receivable, net	15,794	6,502
Inventories	9,057	8,841
Prepaid expenses	1,961	1,234
Due from related parties	34,939	34,007
Other current assets	5,712	5,708
Total current assets	142,698	125,999
NON-CURRENT ASSETS
Fixed assets at cost, net of accumulated depreciation of $816,947 (2017: $763,190)	2,743,897	2,795,971
Deferred charges, net	15,061	8,962
Investments in affiliates	6,182	5,998
Other non-current assets	58,924	49,466
Total non-current assets	2,824,064	2,860,397
Total assets	2,966,762	2,986,396
CURRENT LIABILITIES
Accounts payable	16,290	11,371
Accrued liabilities	18,400	15,226
Current portion of long-term debt, net	134,861	2,329,601
Unearned revenue	19,284	22,853
Other current liabilities	759	788
Total current liabilities	189,594	2,379,839
LONG-TERM LIABILITIES
Long-term debt, net	2,152,957
Unearned revenue, net of current portion	49,004	56,159
Other long-term liabilities	1,331	1,693
Total long-term liabilities	2,203,292	57,852
Total liabilities	2,392,886	2,437,691
Commitments and Contingencies
STOCKHOLDERS' EQUITY
Preferred stock (par value $0.01, 100,000,000 preferred shares authorized and not issued as of June 30, 2018 and December 31, 2017)
Common stock (par value $0.01, 750,000,000 common shares authorized as of June 30, 2018 and December 31, 2017. 109,799,352 issued and outstanding as of June 30, 2018 and December 31, 2017)	1,098	1,098
Additional paid-in capital	546,898	546,898
Accumulated other comprehensive loss	(109,735)	(114,076)
Retained earnings	135,615	114,785
Total stockholders' equity	573,876	548,705
Total liabilities and stockholders' equity	$ 2,966,762	$ 2,986,396

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
CONDENSED CONSOLIDATED BALANCE SHEETS
Accumulated depreciation	$ 816,947	$ 763,190
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	750,000,000	750,000,000
Common stock, shares issued	109,799,352	109,799,352
Common stock, shares outstanding	109,799,352	109,799,352

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
OPERATING REVENUES	$ 113,466	$ 113,888	$ 225,320	$ 223,975
OPERATING EXPENSES
Voyage expenses	(3,186)	(3,216)	(6,347)	(7,055)
Vessel operating expenses	(26,742)	(27,216)	(53,591)	(54,671)
Depreciation	(26,697)	(29,195)	(53,757)	(58,046)
Amortization of deferred drydocking and special survey costs	(2,409)	(1,662)	(4,252)	(3,403)
General and administrative expenses	(5,777)	(5,340)	(10,959)	(11,469)
Income From Operations	48,655	47,259	96,414	89,331
OTHER INCOME (EXPENSES):
Interest income	1,418	1,344	2,793	2,815
Interest expense	(23,020)	(21,413)	(45,869)	(42,313)
Other finance expenses	(961)	(1,040)	(1,932)	(2,087)
Equity income on investments	210	149	184	355
Other income/(expenses), net	(19,543)	(5,149)	(28,928)	(7,597)
Loss on derivatives	(921)	(921)	(1,832)	(1,832)
Total Other Expenses, net	(42,817)	(27,030)	(75,584)	(50,659)
Net Income	$ 5,838	$ 20,229	$ 20,830	$ 38,672
EARNINGS PER SHARE
Basic and diluted earnings per share	$ 0.05	$ 0.18	$ 0.19	$ 0.35
Basic and diluted weighted average number of common shares (in thousands)	109,799	109,825	109,799	109,825

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
Net income for the period	$ 5,838	$ 20,229	$ 20,830	$ 38,672
Other comprehensive income/(loss):
Unrealized gain/(loss) on available for sale securities	1,057	(308)	2,509	(34,107)
Amortization of deferred realized losses on cash flow hedges	921	921	1,832	1,832
Total Other Comprehensive Income/(Loss)	1,978	613	4,341	(32,275)
Comprehensive Income	$ 7,816	$ 20,842	$ 25,171	$ 6,397

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash Flows from Operating Activities
Net income	$ 20,830	$ 38,672
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	53,757	58,046
Amortization of deferred drydocking and special survey costs	4,252	3,403
Amortization of finance costs	5,114	5,729
Exit fees accrued on debt	1,484	1,615
Loss on sale of securities		2,357
Payments for drydocking and special survey costs deferred	(10,351)	(4,516)
Amortization of deferred realized losses on interest rate swaps	1,832	1,832
Equity income on investments	(184)	(355)
(Increase)/Decrease in
Accounts receivable	(9,292)	(3,816)
Inventories	(216)	2,434
Prepaid expenses	(727)	(133)
Due from related parties	(932)	233
Other assets, current and non-current	(6,953)	(898)
Increase/(Decrease) in
Accounts payable	4,919	2,259
Accrued liabilities	3,174	359
Unearned revenue, current and long-term	(10,724)	(10,803)
Other liabilities, current and long-term	(391)	(6,367)
Net Cash provided by Operating Activities	55,592	90,051
Cash Flows from Investing Activities
Vessels additions	(1,683)	(2,612)
Net proceeds from sale of securities		6,236
Net Cash provided by/(used in) Investing Activities	(1,683)	3,624
Cash Flows from Financing Activities
Payments of long-term debt	(48,381)	(103,572)
Net Cash used in Financing Activities	(48,381)	(103,572)
Net Increase/(Decrease) in cash, cash equivalents and restricted cash	5,528	(9,897)
Cash, cash equivalents and restricted cash at beginning of period	69,707	76,529
Cash, cash equivalents and restricted cash at end of period	$ 75,235	$ 66,632

Basis of Presentation and General Information

6 Months Ended

Jun. 30, 2018

Basis of Presentation and General Information

Basis of Presentation and General Information

1Basis of Presentation and General Information

The accompanying condensed consolidated financial statements (unaudited) have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The reporting and functional currency of the Company is the United States Dollar.

Danaos Corporation (“Danaos” or “Company”), formerly Danaos Holdings Limited, was formed on December 7, 1998 under the laws of Liberia and is presently the sole owner of all outstanding shares of the companies listed below. Danaos Holdings Limited was redomiciled in the Marshall Islands on October 7, 2005. In connection with the redomiciliation, the Company changed its name to Danaos Corporation. On October 14, 2005, the Company filed and the Marshall Islands accepted Amended and Restated Articles of Incorporation. The authorized capital stock of Danaos Corporation is 750,000,000 shares of common stock with a par value of $0.01 and 100,000,000 shares of preferred stock with a par value of $0.01. Refer to Note 12, “Stockholders’ Equity”. The Company’s principal business is the acquisition and operation of vessels. Danaos conducts its operations through the vessel owning companies whose principal activity is the ownership and operation of containerships that are under the exclusive management of a related party of the Company.

In the opinion of management, the accompanying condensed consolidated financial statements (unaudited) of Danaos and subsidiaries contain all adjustments necessary to present fairly, in all material respects, the Company’s condensed consolidated financial position as of June 30, 2018, the condensed consolidated results of operations for the three and six months ended June 30, 2018 and 2017 and the condensed consolidated cash flows for the three and six months ended June 30, 2018 and 2017. All such adjustments are deemed to be of a normal, recurring nature. These financial statements should be read in conjunction with the consolidated financial statements and related notes included in Danaos’ Annual Report on Form 20-F for the year ended December 31, 2017. The results of operations for the three and six months ended June 30, 2018, are not necessarily indicative of the results to be expected for the full year. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America.

The Company’s condensed consolidated financial statement have been prepared on a going concern basis and contemplate the realization of assets and satisfaction of liabilities in the normal course of business. On June 19, 2018, the Company reached a refinancing agreement with certain of its lenders holding debt maturing by December 31, 2018 through a debt reduction of approximately $551 million, the resetting of financial and other covenants, modified interest rates and amortization profiles and an extension of existing debt maturities by approximately five years to December 31, 2023, or in some cases to June 30, 2024. On August 10, 2018, the Company consummated the refinancing agreement reached with certain of the Company’s lenders on June 19, 2018, as further disclosed in the Note 9 “Long-term debt, net” and the Note 15 “Subsequent Events”, which alleviated substantial doubt about the Company’s ability to continue as a going concern reported in the Note 3, “Going Concern” to the consolidated financial statements in the Annual Report on Form 20-F for the year ended December 31, 2017.

The accompanying condensed consolidated financial statements (unaudited) represent the consolidation of the accounts of the Company and its wholly owned subsidiaries. The subsidiaries are fully consolidated from the date on which control is transferred to the Company. They are de-consolidated from the date that control ceases. Inter-company transaction balances and unrealized gains on transactions between the companies are eliminated. The Company also consolidates entities that are determined to be variable interest entities, of which the Company is the primary beneficiary, as defined in the authoritative guidance under U.S. GAAP. A variable interest entity is defined as a legal entity where either (a) equity interest holders as a group lack the characteristics of a controlling financial interest, including decision making ability and an interest in the entity’s residual risks and rewards, or (b) the equity holders have not provided sufficient equity investment to permit the entity to finance its activities without additional subordinated financial support, or (c) the voting rights of some investors are not proportional to their obligations to absorb the expected losses of the entity, their rights to receive the expected residual returns of the entity, or both and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights. The condensed consolidated financial statements (unaudited) have been prepared to reflect the consolidation of the companies listed below. The historical balance sheets and results of operations of the companies listed below have been reflected in the condensed consolidated balance sheets and condensed consolidated statements of income, cash flows and stockholders’ equity at and for each period since their respective incorporation dates. The consolidated companies are referred to as “Danaos,” or “the Company.”

As of June 30, 2018, Danaos included the vessel owning companies (the “Danaos Subsidiaries”) listed below. All vessels are container vessels:

Company	Date of Incorporation	Vessel Name	Year Built	TEU(1)
Megacarrier (No. 1) Corp.	September 10, 2007	Hyundai Honour	2012	13,100
Megacarrier (No. 2) Corp.	September 10, 2007	Hyundai Respect	2012	13,100
Megacarrier (No. 3) Corp.	September 10, 2007	Maersk Enping	2012	13,100
Megacarrier (No. 4) Corp.	September 10, 2007	Maersk Exeter	2012	13,100
Megacarrier (No. 5) Corp.	September 10, 2007	MSC Ambition	2012	13,100
CellContainer (No. 6) Corp.	October 31, 2007	Express Berlin	2011	10,100
CellContainer (No. 7) Corp.	October 31, 2007	Express Rome	2011	10,100
CellContainer (No. 8) Corp.	October 31, 2007	Express Athens	2011	10,100
Karlita Shipping Co. Ltd.	February 27, 2003	Pusan C (ex CSCL Pusan)	2006	9,580
Ramona Marine Co. Ltd.	February 27, 2003	CSCL Le Havre	2006	9,580
Teucarrier (No. 5) Corp.	September 17, 2007	CMA CGM Melisande	2012	8,530
Teucarrier (No. 1) Corp.	January 31, 2007	CMA CGM Attila	2011	8,530
Teucarrier (No. 2) Corp.	January 31, 2007	CMA CGM Tancredi	2011	8,530
Teucarrier (No. 3) Corp.	January 31, 2007	CMA CGM Bianca	2011	8,530
Teucarrier (No. 4) Corp.	January 31, 2007	CMA CGM Samson	2011	8,530
Oceanew Shipping Ltd.	January 14, 2002	Europe	2004	8,468
Oceanprize Navigation Ltd.	January 21, 2003	America (ex CSCL America)	2004	8,468
Boxcarrier (No. 2) Corp.	June 27, 2006	CMA CGM Musset	2010	6,500
Boxcarrier (No. 3) Corp.	June 27, 2006	CMA CGM Nerval	2010	6,500
Boxcarrier (No. 4) Corp.	June 27, 2006	CMA CGM Rabelais	2010	6,500
Boxcarrier (No. 5) Corp.	June 27, 2006	CMA CGM Racine	2010	6,500
Boxcarrier (No. 1) Corp.	June 27, 2006	CMA CGM Moliere	2009	6,500
Expresscarrier (No. 1) Corp.	March 5, 2007	YM Mandate	2010	6,500
Expresscarrier (No. 2) Corp.	March 5, 2007	YM Maturity	2010	6,500
Actaea Company Limited	October 14, 2014	Performance	2002	6,402
Asteria Shipping Company Limited	October 14, 2014	Priority	2002	6,402
Continent Marine Inc.	March 22, 2006	Zim Monaco	2009	4,253
Medsea Marine Inc.	May 8, 2006	Zim Dalian	2009	4,253
Blacksea Marine Inc.	May 8, 2006	Zim Luanda	2009	4,253
Bayview Shipping Inc.	March 22, 2006	Zim Rio Grande	2008	4,253
Channelview Marine Inc.	March 22, 2006	Zim Sao Paolo	2008	4,253
Balticsea Marine Inc.	March 22, 2006	Zim Kingston	2008	4,253
Seacarriers Services Inc.	June 28, 2005	YM Seattle	2007	4,253
Seacarriers Lines Inc.	June 28, 2005	YM Vancouver	2007	4,253
Containers Services Inc.	May 30, 2002	ANL Tongala (ex Deva)	2004	4,253
Containers Lines Inc.	May 30, 2002	Derby D	2004	4,253
Boulevard Shiptrade S.A	September 12, 2013	Dimitris C	2001	3,430
CellContainer (No. 4) Corp.	March 23, 2007	Express Spain	2011	3,400
CellContainer (No. 5) Corp.	March 23, 2007	Express Black Sea	2011	3,400
CellContainer (No. 1) Corp.	March 23, 2007	Express Argentina	2010	3,400
CellContainer (No. 2) Corp.	March 23, 2007	Express Brazil	2010	3,400
CellContainer (No. 3) Corp.	March 23, 2007	Express France	2010	3,400
Wellington Marine Inc.	January 27, 2005	Singapore	2004	3,314
Auckland Marine Inc.	January 27, 2005	Colombo	2004	3,314
Vilos Navigation Company Ltd.	May 30, 2013	MSC Zebra	2001	2,602
Trindade Maritime Company	April 10, 2013	Amalia C	1998	2,452
Sarond Shipping Inc.	January 18, 2013	Danae C	2001	2,524
Speedcarrier (No. 7) Corp.	December 6, 2007	Highway	1998	2,200
Speedcarrier (No. 6) Corp.	December 6, 2007	Progress C (ex Hyundai Progress)	1998	2,200
Speedcarrier (No. 8) Corp.	December 6, 2007	Bridge	1998	2,200
Speedcarrier (No. 1) Corp.	June 28, 2007	Vladivostok	1997	2,200
Speedcarrier (No. 2) Corp.	June 28, 2007	Advance	1997	2,200
Speedcarrier (No. 3) Corp.	June 28, 2007	Stride	1997	2,200
Speedcarrier (No. 5) Corp.	June 28, 2007	Future	1997	2,200
Speedcarrier (No. 4) Corp.	June 28, 2007	Sprinter	1997	2,200

(1)

Twenty-feet equivalent unit, the international standard measure for containers and containership capacity.

Significant Accounting Policies	6 Months Ended
Significant Accounting Policies	Jun. 30, 2018
Significant Accounting Policies
Significant Accounting Policies	2Significant Accounting Policies For a detailed discussion about the Company’s significant accounting policies, see Note 2 “Significant Accounting Policies” in the Company’s consolidated financial statements included in the Annual Report on Form 20-F for the year ended December 31, 2017 filed with the Securities and Exchange Commission on March 7, 2018. During the six months ended June 30, 2018, other than the following, there were no other significant changes made to the Company’s significant accounting policies: Changes in Accounting Principles: Statement of Cash Flows In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). The guidance adds or clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows. Additionally, in November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash” (“ASU 2016-18”), which requires that amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Company adopted these standards effective January 1, 2018. Prior periods were retrospectively adjusted to conform to the current period’s presentation. The adoption of ASU 2016-15 did not have a material impact on the condensed consolidated statements of cash flows. Upon adoption of ASU 2016-18, the Company reclassified the restricted cash balance of $2.8 million as of December 31, 2017, December 31, 2016 and June 30, 2017 to the cash, cash equivalent and restricted cash balances within the condensed consolidated statements of cash flows. Refer to Note 3 “Cash, Cash Equivalents and Restricted Cash” for further details. Financial Instruments In January 2016, the FASB issued Accounting Standards Update No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). ASU 2016-01 requires all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). The amendments in this Update also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition the amendments in this Update eliminate the requirement to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet for public business entities. The Company adopted this standard effective January 1, 2018. The Company’s investment in ZIM equity securities does not have readily determinable fair value. As a result, the Company elected to record this equity investment at cost, less impairment, adjusted for subsequent observable price changes. The adoption of this standard did not have a material effect on the condensed consolidated financial statements and notes disclosures. As of June 30, 2018, the Company did not identify any observable prices for the same or similar securities that would indicate a change in the carrying value of the Company’s equity. Revenue Recognition In May 2014, the FASB issued Accounting Standards Update No. 2014-9 “Revenue from Contracts with Customers” (“ASU 2014-09”), which superseded the current revenue recognition guidance and outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” (“ASU 2016-08”), which clarifies the implementation guidance on principal versus agent considerations. In addition, in 2016, the FASB issued four amendments, which clarified the guidance on certain items such as reporting revenue as a principal versus agent, identifying performance obligations, accounting for intellectual property licenses, assessing collectability and presentation of sales taxes. The Company adopted this standard effective January 1, 2018 using modified retrospective approach. The adoption of this standard did not have any effect on the retained earnings or on the financial results for the six months ended June 30, 2018 of the Company since all the Company’s vessels generated revenues from time charter and bareboat charter agreements, which are governed by ASU 2016-02 “Leases” — see below. Recent Accounting Pronouncements: In February 2016, the FASB issued Accounting Standards Update No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). ASU 2016-02 will apply to both types of leases — capital (or finance) leases and operating leases. According to the new Accounting Standard, lessees will be required to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. ASU 2016 — 02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. This guidance requires companies to identify lease and non-lease components of a lease agreement. Lease components relate to the right to use the leased asset and non-lease components relate to payments for goods or services that are transferred separately from the right to use the underlying asset. Total lease consideration is allocated to lease and non-lease components on a relative standalone basis. The recognition of revenues related to lease components will be governed by ASC 842 while revenue related to non-lease components will be subject to ASC 606. In March 2018, the FASB tentatively approved a proposed amendment to ASU 842, that would provide an entity the optional transition method to initially account for the impact of the adoption with a cumulative adjustment to retained earnings on the effective date of the ASU, January 1, 2019 rather than January 1, 2017, which would eliminate the need to restate amounts presented prior to January 1, 2019. In addition, lessors can elect, as a practical expedient, not to allocate the total consideration to lease and non-lease components based on their relative standalone selling prices. As adopted by the Accounting Standards Update No. 2018-11 in July 2018, this practical expedient will allow lessors to elect and account for the combined component based on its predominant characteristic. ASC 842 provides practical expedients that allow entities to not (i) reassess whether any expired or existing contracts are considered or contain leases; (ii) reassess the lease classification for any expired or existing leases; and (iii) reassess initial direct costs for any existing leases. In July 2018, the FASB issued Accounting Standards Update No. 2018-10, “Codification Improvements to Topic 842, Leases”, which further improves and clarifies ASU 2016-02. The Company plans to adopt the standard on January 1, 2019 and expects to elect the use of practical expedients. The Company has not completed its analysis of this ASU. Based on a preliminary assessment, the Company is expecting that the adoption will not have a material effect on its consolidated financial statements since the Company is primarily a lessor and the changes are fairly minor. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. The ASU 2016-13 is effective for public entities for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact of the new standard on the Company’s consolidated financial statements.

Cash, Cash Equivalents and Restricted Cash

6 Months Ended

Jun. 30, 2018

Cash, Cash Equivalents and Restricted Cash

Cash, Cash Equivalents and Restricted Cash

3Cash, Cash Equivalents and Restricted Cash

Cash, cash equivalents and restricted cash consisted of the following (in thousands):

	As of		As of		As of
	June 30, 2018		December 31, 2017		December 31, 2016
Cash and cash equivalents	$	72,423	$	66,895	$	73,717
Restricted cash	2,812		2,812		2,812

Total	$	75,235	$	69,707	$	76,529

The Company was required to maintain cash of $2.8 million as of June 30, 2018, December 31, 2017 and December 31, 2016, in retention bank accounts as a collateral for the upcoming scheduled debt payments of its KEXIM-ABN Amro credit facility, which were recorded under current assets in the Company’s Condensed Consolidated Balance Sheets.

Fixed Assets, Net	6 Months Ended
Fixed Assets, Net	Jun. 30, 2018
Fixed Assets, Net
Fixed Assets, Net	4Fixed assets, net The residual value (estimated scrap value at the end of the vessels’ useful lives) of the fleet was estimated at $378.2 million as of June 30, 2018 and as of December 31, 2017. The Company has calculated the residual value of the vessels taking into consideration the 10 year average and the 5 year average of the scrap rates. The Company has applied uniformly the scrap value of $300 per ton for all vessels. The Company believes that $300 per ton is a reasonable estimate of future scrap prices, taking into consideration the cyclicality of the nature of future demand for scrap steel. Although the Company believes that the assumptions used to determine the scrap rate are reasonable and appropriate, such assumptions are highly subjective, in part, because of the cyclical nature of future demand for scrap steel.

Deferred Charges, Net

6 Months Ended

Jun. 30, 2018

Deferred Charges, Net

Deferred Charges, Net

5Deferred Charges, net

Deferred charges, net consisted of the following (in thousands):

	Drydocking and Special Survey Costs
As of January 1, 2017	$	8,199
Additions	7,511
Amortization	(6,748		)

As of December 31, 2017	8,962
Additions	10,351
Amortization	(4,252		)

As of June 30, 2018	$	15,061

The Company follows the deferral method of accounting for drydocking and special survey costs in accordance with accounting for planned major maintenance activities, whereby actual costs incurred are deferred and amortized on a straight-line basis over the period until the next scheduled survey, which is two and a half years. If special survey or drydocking is performed prior to the scheduled date, the remaining unamortized balances are immediately written off. Furthermore, when a vessel is drydocked for more than one reporting period, the respective costs are identified and recorded in the period in which they were incurred and not at the conclusion of the drydocking.

Investments in affiliates

6 Months Ended

Jun. 30, 2018

Investments in affiliates

Investments in affiliates

6Investments in affiliates

In August 2015, an affiliated company Gemini Shipholdings Corporation (“Gemini”) was formed by the Company and Virage International Ltd. (“Virage”), a company controlled by the Company’s largest shareholder. Gemini acquired a 100% interest in entities with capital leases for the Suez Canal and Genoa and that own the container vessels Lodestar (ex NYK Lodestar) and NYK Leo. Gemini financed these acquisitions with the assumption of capital lease obligations of $35.4 million, $19.0 million of borrowings under secured loan facilities and an aggregate of $47.4 million from equity contributions from the Company and Virage, which subscribed in cash for 49% and 51%, respectively, of Gemini’s issued and outstanding share capital. As of June 30, 2018, Gemini consolidated its wholly owned subsidiaries listed below:

Company	Vessel Name	Year Built	TEU	Date of vessel delivery
Averto Shipping S.A.	Suez Canal	2002	5,610	July 20, 2015
Sinoi Marine Ltd.	Genoa	2002	5,544	August 2, 2015
Kingsland International Shipping Limited	Lodestar (ex NYK Lodestar)	2001	6,422	September 21, 2015
Leo Shipping and Trading S.A.	NYK Leo	2002	6,422	February 4, 2016

The Company has determined that Gemini is a variable interest entity of which the Company is not the primary beneficiary, and as such, this affiliated company is accounted for under the equity method and recorded under “Equity income on investments” in the condensed consolidated statements of income. The Company does not guarantee the debt of Gemini and its subsidiaries and has the right to purchase all of the beneficial interest in Gemini that it does not own for fair market value at any time after December 31, 2018, or earlier if permitted under its credit facilities. The net assets of Gemini total $12.6 million as of June 30, 2018. The Company’s exposure is limited to its share of the net assets of Gemini proportionate to its 49% equity interest in Gemini.

A condensed summary of the financial information for equity accounted investments 49% owned by the Company shown on a 100% basis are as follows (in thousands):

	As of		As of
	June 30, 2018		December 31, 2017
Current assets	$	8,327	$	10,014
Non-current assets	$	41,441	$	40,901
Current liabilities	$	6,339	$	6,131
Non-current liabilities	$	30,813	$	32,544

	Six months ended		Six months ended
	June 30, 2018		June 30, 2017
Net operating revenues	$	8,625	$	8,590
Net income	$	376	$	725

Other Non-current Assets

6 Months Ended

Jun. 30, 2018

Other Non-current Assets

Other Non-current Assets

7Other Non-current Assets

Other non-current assets consisted of the following (in thousands):

	As of		As of
	June 30, 2018		December 31, 2017
Available for sale securities:
ZIM notes, net	$	24,760	$	21,093
HMM notes, net	14,327		13,509
Equity participation ZIM	—		—
Other assets	19,837		14,864

Total	$	58,924	$	49,466

Equity participation in ZIM and interest bearing unsecured ZIM notes maturing in 2023, which consist of $8.8 million Series 1 Notes and $41.1 million of Series 2 Notes, were obtained after the charter restructuring agreements with ZIM in July 2014. Interest bearing senior unsecured HMM notes consist of $32.8 million Loan Notes 1 maturing in July 2024 and $6.2 million Loan Notes 2 maturing in December 2022, which were obtained after the charter restructuring agreements with HMM in July 2016. As of December 31, 2016, the Company has recorded an impairment loss on its equity participation in ZIM amounting to $28.7 million, thus reducing its book value to nil and $0.7 million impairment loss on ZIM notes. See Note 8 “Other Non-current Assets” to the consolidated financial statements in the Annual Report on Form 20-F for the year ended December 31, 2017 for further details.

On March 28, 2017, the Company sold $13.0 million principal amount of HMM Loan Notes 1 maturing in July 2024 carried at amortized costs of $8.6 million for gross cash proceeds on sale of $6.2 million, which were received in April 2017. The sale resulted in a loss of $2.4 million, which was recognized in the “Other income/(expenses), net” in the accompanying condensed consolidated statement of income for the six months ended June 30, 2017. The proceeds were used to repay related outstanding debt obligations in April 2017. The unrealized losses, which were recognized in other comprehensive loss, are analyzed as follows as of June 30, 2018 (in thousands):

Description of securities	Amortized cost basis		Fair value		Unrealized loss on available for sale securities
ZIM notes	$	43,500	$	24,760	$	(18,740	)
HMM notes	19,685		14,327		(5,358		)

Total	$	63,185	$	39,087	$	(24,098	)

	Unrealized loss on available for sale securities
Beginning balance as of January 1, 2018	$	(26,607	)
Unrealized gain on available for sale securities	2,509

Ending balance as of June 30, 2018	$	(24,098	)

Other assets mainly include non-current assets related to straight-lining of the Company’s revenue amounting to $16.8 million and $10.8 million as of June 30, 2018 and December 31, 2017, respectively.

Accrued Liabilities

6 Months Ended

Jun. 30, 2018

Accrued Liabilities

Accrued Liabilities

8Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):

	As of		As of
	June 30, 2018		December 31, 2017
Accrued payroll	$	797	$	928
Accrued interest	9,959		9,953
Accrued expenses	7,644		4,345

Total	$	18,400	$	15,226

Accrued expenses mainly consisted of accruals related to the operation of the Company’s fleet and other expenses as of June 30, 2018 and December 31, 2017.

Long-Term Debt, net

6 Months Ended

Jun. 30, 2018

Long-Term Debt, net

Long-Term Debt, net

9Long-Term Debt, net

Company’s long-term debt, net as of June 30, 2018 and December 31, 2017 consisted of the following (in thousands):

Credit Facility	Balance as of June 30, 2018			Balance as of December 31, 2017
The Royal Bank of Scotland	630,405			$	634,864
HSH Nordbank AG-Aegean Baltic Bank-Piraeus Bank	616,361			622,851
The Export-Import Bank of Korea & ABN Amro	17,484			23,109
Deutsche Bank	152,998			156,062
Citibank	113,957			117,316
Credit Suisse	171,783			176,189
ABN Amro-Bank of America Merrill Lynch-Burlington Loan Management-National Bank of Greece	195,603			199,302
EnTrustPermal-Credit Suisse-CitiGroup	213,580			220,689
The Royal Bank of Scotland (January 2011 Credit Facility)	24,316			24,316
HSH Nordbank AG-Aegean Baltic Bank-Piraeus Bank (January 2011 Credit Facility)	17,205			17,205
ABN Amro-Bank of America Merrill Lynch-Burlington Loan Management -National Bank of Greece (January 2011 Credit Facility)	8,771			8,771
Sinosure CEXIM-Citibank-ABN Amro Credit Facility	71,190			81,360
Citibank—Eurobank Credit Facility (January 2011 Credit Facility)	37,645			37,645
Comprehensive Financing Plan exit fees accrued	22,583			21,099

Total long-term debt	$	2,293,881		$	2,340,778

Less: Deferred finance costs, net	(6,063		)	(11,177		)
Less: Current portion	(134,861		)	$	(2,329,601	)

Total long-term debt net of current portion and deferred finance cost	$	2,152,957		—

All floating rate loans discussed above are collateralized by first and second preferred mortgages over the vessels financed, general assignment of all hire freights, income and earnings, the assignment of their insurance policies, as well as any proceeds from the sale of mortgaged vessels and the corporate guarantee of Danaos Corporation.

As of June 30, 2018, there was no remaining borrowing availability under the Company’s credit facilities.

New Credit Facilities

On June 19, 2018, the Company entered into a debt refinancing agreement with certain of its lenders holding debt of $2.2 billion maturing by December 31, 2018, for a debt refinancing (the “Refinancing”) which was consummated on August 10, 2018 (the “Closing Date”). See Note “15”, “Subsequent Events.” The Refinancing involved a debt reduction of approximately $551 million, the resetting of financial and other covenants, modified interest rates and amortization profiles and an extension of existing debt maturities by approximately five years to December 31, 2023, or in some cases to June 30, 2024. Additionally, the Company issued an aggregate of 99,342,271 shares of common stock to certain of its lenders. The Company’s largest stockholder, Danaos Investment Limited as Trustee of the 883 Trust (“DIL”), contributed $10 million to the Company on the Closing Date, for which DIL did not receive any shares of common stock or other interests in the Company. Prior to the consummation of this agreement, the Company classified all of its long-term debt, net of deferred finance costs as current.

On July 31, 2018, as part of the Refinancing the Company entered into new credit facilities for an aggregate principal amount of approximately $1.6 billion due December 31, 2023 through an amendment and restatement or replacement of existing credit facilities. The new credit facilities provide for quarterly fixed and variable amortization payments, together representing approximately 85% of actual free cash flows from the relevant vessels securing such credit facilities (calculated on a generally consistent basis to the Company’s 2011 Restructuring Agreement), subject to certain adjustments. The new credit facilities have maturity dates of December 31, 2023 (or in some cases as indicated below, June 30, 2024). The interest rate payable under the new credit facilities is LIBOR+2.50% (subject to a 0% floor), with subordinated tranches of two credit facilities incurring additional PIK interest of 4.00%, compounded quarterly, payable in respect of approximately $282 million principal amount thereunder, which tranches have maturity dates of June 30, 2024.

The new credit facilities contain financial covenants requiring the Company to maintain: (i) minimum collateral to loan value coverage on a charter-free basis increasing from 57.0% as of December 31, 2018 to 100% as of September 30, 2023 and thereafter, (ii) minimum collateral to loan value coverage on a charter-attached basis increasing from 69.5% as of December 31, 2018 to 100% as of September 30, 2023 and thereafter, (iii) minimum liquidity of $30 million throughout the term of the new credit facilities, (iv) maximum consolidated net leverage ratio, declining from 7.50x as of December 31, 2018 to 5.50x as of September 30, 2023 and thereafter, (v) minimum interest coverage ratio of 2.50x throughout the term of the new credit facilities and (vi) minimum consolidated market value adjusted net worth increasing from negative $510 million as of December 31, 2018 to $60 million as of September 30, 2023 and thereafter.

The new credit facilities contain certain restrictive covenants and customary events of default, including those relating to cross-acceleration and cross-defaults to other indebtedness, non-compliance, or repudiation of security documents, material adverse changes to the Company’s business, the Company’s common stock ceasing to be listed on the NYSE (or another recognized stock exchange), foreclosure on a vessel in the Company’s fleet, a change in control of the Manager, a breach of the management agreement by the Manager and a material breach of a charter by a charterer or cancellation of a charter (unless replaced with a similar charter acceptable to the lenders) for the vessels securing the respective new credit facilities. Each of the new credit facilities is secured by customary shipping industry collateral, including vessel mortgages, earnings accounts, the Company’s investments in ZIM and Hyundai Marine Securities and stock pledges and to benefit from corporate guarantees.

Sinosure-CEXIM credit facility and KEXIM-ABN AMRO credit facility

On the Closing Date the Company amended and restated the Sinosure-CEXIM credit facility, dated as of February 21, 2011, under which $71.2 million was outstanding as of June 30, 2018, primarily to align its financial covenants with those contained in the new credit facilities and provide second lien collateral to lenders under certain of the new credit facilities.

On June 27, 2018, the Company gave notice to the lenders under the KEXIM ABN-AMRO credit facility and fully repaid $17.5 million outstanding under this facility on July 20, 2018.

After giving effect to the debt refinancing consummated on August 10, 2018, scheduled debt maturities of long-term debt subsequent to June 30, 2018 are as follows (in thousands):

Payments due by period ended	Fixed principal repayments		Variable principal repayments		Final payments due by June 30, 2024*		Total principal payments
June 30, 2019	$	114,606	$	20,255	—		$	134,861
June 30, 2020	113,360		28,234		—		141,594
June 30, 2021	118,852		24,431		—		143,283
June 30, 2022	105,927		32,685		—		138,612
June 30, 2023	85,222		57,939		—		143,161
June 30, 2024	35,879		89,610		$	1,444,298	1,569,787

Total long-term debt	$	573,846	$	253,154	$	1,444,298	$	2,271,298

* The final payments due by June 30, 2024, include the unamortized remaining principal debt balances under the new credit facilities, as such amount will be determinable following the fixed and variable amortization.

As a result of a decrease in operating income of the Company and the charter attached value of certain of the Company’s vessels caused mainly by the loss of contractual revenue from Hanjin Shipping, in 2016, the Company was in breach of the minimum security cover, consolidated net leverage and consolidated net worth financial covenants related to its loan facilities as of June 30, 2018 and December 31, 2017. The Company was also in default of the principal repayment under the 2011 Restructuring Agreement amounting to $37,589 thousand, which was due on May 15, 2018. These breaches and defaults were addressed by the Refinancing consummated on August 10, 2018.

The Company incurred $29.7 million and $5.2 million of professional fees related to the refinancing discussions with its lenders reported under “Other income/(expenses), net” in the accompanying condensed consolidated statements of income for the six months ended June 30, 2018 and 2017, respectively.

Financial Instruments

6 Months Ended

Jun. 30, 2018

Financial Instruments

Financial Instruments

10Financial Instruments

The principal financial assets of the Company consist of cash and cash equivalents, trade receivables and other assets. The principal financial liabilities of the Company consist of long-term bank loans and accounts payable. The following is a summary of the Company’s risk management strategies and the effect of these strategies on the Company’s condensed consolidated financial statements.

Interest Rate Risk: Interest rate risk arises on bank borrowings. The Company monitors the interest rate on borrowings closely to ensure that the borrowings are maintained at favorable rates.

Concentration of Credit Risk: Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and trade accounts receivable. The Company places its temporary cash investments, consisting mostly of deposits, with established financial institutions. The Company performs periodic evaluations of the relative credit standing of those financial institutions that are considered in the Company’s investment strategy. The Company is exposed to credit risk in the event of non-performance by counterparties, however, the Company limits this exposure by diversifying among counterparties with high credit ratings. The Company depends upon a limited number of customers for a large part of its revenues. Credit risk with respect to trade accounts receivable is generally managed by the selection of customers among the major liner companies in the world and their dispersion across many geographic areas.

Fair Value: The carrying amounts reflected in the accompanying condensed consolidated balance sheets of financial assets and liabilities (excluding long-term bank loans and certain other non-current assets) approximate their respective fair values due to the short maturity of these instruments. The fair values of long-term floating rate bank loans is estimated based on currently available debt with similar contract terms, interest rate and remaining maturities as well as taking into account its increased credit risk. The fair value of available for sale securities is estimated based on either observable market based inputs or unobservable inputs that are corroborated by market data. The Company is exposed to changes in fair value of available for sale securities as there is no hedging strategy.

a. Interest Rate Swap Hedges

The Company currently has no outstanding interest rate swaps agreements. However, in the past years, the Company entered into interest rate swap agreements with its lenders in order to manage its floating rate exposure. Certain variable-rate interests on specific borrowings were associated with vessels under construction and were capitalized as a cost of the specific vessels. In accordance with the accounting guidance on derivatives and hedging, the amounts related to realized gains or losses on cash flow hedges that have been entered into and qualified for hedge accounting, in order to hedge the variability of that interest, were recognized in accumulated other comprehensive loss and are reclassified into earnings over the depreciable life of the constructed asset, since that depreciable life coincides with the amortization period for the capitalized interest cost on the debt. An amount of $1.8 million was reclassified into earnings for the six months ended June 30, 2018 and June 30, 2017, respectively, representing its amortization over the depreciable life of the vessels. An amount of accumulated other comprehensive loss of $85.6 million is unamortized as of June 30, 2018 and an amount of $3.7 million is expected to be reclassified into earnings within the next 12 months.

b. Fair Value of Financial Instruments

The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value.

Level I: Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. Valuation of these items does not entail a significant amount of judgment.

Level II: Inputs other than quoted prices included in Level I that are observable for the asset or liability through corroboration with market data at the measurement date.

Level III: Inputs that are unobservable. The Company did not use any Level 3 inputs as of June 30, 2018 and December 31, 2017.

The estimated fair values of the Company’s financial instruments are as follows:

	June 30, 2018				As of December 31, 2017
	Book Value		Fair Value		Book Value		Fair Value
	(in thousands of $)
Cash and cash equivalents	$	72,423	$	72,423	$	66,895	$	66,895
Restricted cash	$	2,812	$	2,812	$	2,812	$	2,812
Due from related parties	$	34,939	$	34,939	$	34,007	$	34,007
ZIM notes	$	24,760	$	24,760	$	21,093	$	21,093
HMM notes	$	14,327	$	14,327	$	13,509	$	13,509
Long-term debt, including current portion	$	2,293,881	$	1,737,947	$	2,340,778	$	2,325,209

The estimated fair value of the financial instruments that are measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows as of June 30, 2018:

	Fair Value Measurements as of June 30, 2018
	Total		(Level I)		(Level II)		(Level III)
	(in thousands of $)
ZIM notes(1)	$	24,760	$	—	$	24,760	$	—
HMM notes(1)	$	14,327	$	—	$	14,327	$	—

The estimated fair value of the financial instruments that are not measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows as of June 30, 2018:

	Fair Value Measurements as of June 30, 2018
	Total		(Level I)		(Level II)		(Level III)
	(in thousands of $)
Long-term debt, including current portion(2)	$	1,737,947	$	—	$	1,737,947	$	—

The estimated fair value of the financial instruments that are measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows as of December 31, 2017:

	Fair Value Measurements as of December 31, 2017
	Total		(Level I)		(Level II)		(Level III)
	(in thousands of $)
ZIM notes(1)	$	21,093	$	—	$	21,093	$	—
HMM notes(1)	$	13,509	$	—	$	13,509	$	—

The estimated fair value of the financial instruments that are not measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows as of December 31, 2017:

	Fair Value Measurements as of December 31, 2017
	Total		(Level I)		(Level II)		(Level III)
	(in thousands of $)
Long-term debt, including current portion(2)	$	2,325,209	$	—	$	2,325,209	$	—

(1)

The fair value is estimated based on either observable market based inputs or unobservable inputs that are corroborated by market data, including currently available information on the Company’s counterparty, other contracts with similar terms, remaining maturities and interest rates.

(2)

Long-term debt, including current portion is presented gross of deferred finance costs of $6.1 million and $11.2 million as of June 30, 2018 and December 31, 2017, respectively. The fair value of the Company’s debt is estimated based on currently available debt with similar contract terms, interest rate and remaining maturities, as well as taking into account its increased credit risk.

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2018
Commitments and Contingencies
Commitments and Contingencies	11Commitments and Contingencies There are no material legal proceedings to which the Company is a party or to which any of its properties are the subject, or other contingencies that the Company is aware of, other than routine litigation incidental to the Company’s business. Furthermore, the Company does not have any commitments outstanding.

Stockholders' Equity	6 Months Ended
Stockholders' Equity	Jun. 30, 2018
Stockholders' Equity
Stockholders' Equity	12Stockholders’ Equity Our largest stockholder, Danaos Investment Limited as Trustee of the 883 Trust (“DIL”) contributed $10 million to the Company in connection with the consummation of the Company’s debt refinancing on August 10, 2018. DIL did not receive any shares of common stock or other interests in the Company as a result of this contribution. As of April 18, 2008, the Board of Directors and the Compensation Committee approved incentive compensation of Manager’s employees with its shares from time to time, after specific for each such time, decision by the compensation committee and the Board of Directors in order to provide a means of compensation in the form of free shares to certain employees of the Manager of the Company’s common stock. The plan was effective as of December 31, 2008. Pursuant to the terms of the plan, employees of the Manager may receive (from time to time) shares of the Company’s common stock as additional compensation for their services offered during the preceding period. The stock will have no vesting period and the employee will own the stock immediately after grant. The total amount of stock to be granted to employees of the Manager will be at the Company’s Board of Directors’ discretion only and there will be no contractual obligation for any stock to be granted as part of the employees’ compensation package in future periods. During the six months ended June 30, 2018, the Company did not grant any shares under the plan. During the six months ended June 30, 2018, no new shares were issued. The Company has also established the Directors Share Payment Plan under its 2006 equity compensation plan. The purpose of the plan is to provide a means of payment of all or a portion of compensation payable to directors of the Company in the form of Company’s Common Stock. The plan was effective as of April 18, 2008. Each member of the Board of Directors of the Company may participate in the plan. Pursuant to the terms of the plan, directors may elect to receive in Common Stock all or a portion of their compensation. Following December 31 of each year, the Company delivers to each Director the number of shares represented by the rights credited to their Share Payment Account during the preceding calendar year. During the six months ended June 30, 2018 and June 30, 2017, none of the directors elected to receive their compensation in Company shares.

Earnings per Share

6 Months Ended

Jun. 30, 2018

Earnings per Share

Earnings per Share

13Earnings per Share

The following table sets forth the computation of basic and diluted earnings per share:

	Three months ended
	June 30, 2018		June 30, 2017
	(in thousands)
Numerator:
Net income	$	5,838	$	20,229

Denominator (number of shares in thousands):
Basic and diluted weighted average common shares outstanding	109,799		109,825

	Six months ended
	June 30, 2018		June 30, 2017
	(in thousands)
Numerator:
Net income	$	20,830	$	38,672

Denominator (number of shares in thousands):
Basic and diluted weighted average common shares outstanding	109,799		109,825

The Warrants issued and outstanding as of June 30, 2018 and 2017, were excluded from the diluted earnings per share for the three and six months ended June 30, 2018 and 2017, because they were antidilutive.

Related Party Transactions	6 Months Ended
Related Party Transactions	Jun. 30, 2018
Related Party Transactions
Related Party Transactions	14Related Party Transactions Management fees to Danaos Shipping Company Limited (“the Manager”) amounted to $8,307 thousand in the six months ended June 30, 2018 ($8,428 thousand in the six months ended June 30, 2017) and are presented under “General and administrative expenses” in the condensed consolidated statements of income. Commissions to the Manager amounted to $2,518 thousand in the six months ended June 30, 2018 ($2,608 thousand in the six months ended June 30, 2017) and are presented under “Voyage expenses” in the condensed consolidated statements of income.

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2018
Subsequent Events
Subsequent Events	15Subsequent Events (a) Consummation of Debt Refinancing. On August 10, 2018, the Company consummated the debt refinancing agreed with certain of the Company’s lenders on June 19, 2018, as described in the Note 9 “Long-term debt, net”. In connection with this debt refinancing, the Company issued 99,342,271 new shares of common stock to certain of the Company’s lenders, which represent 47.5% of the outstanding common stock after giving effect to this issuance. DIL, the Company’s largest stockholder, and the Manager made a number of financial and operating commitments in connection with this debt refinancing. DIL contributed $10 million cash to the Company on August 10, 2018. DIL did not receive any shares of common stock or other interests in the Company as a result of the contribution and further agreed to commit to backstop (the “Backstop Agreement”), through a cash contribution pursuant to a subordinated loan agreement, any shortfall in the minimum consolidated cash balance of $60 million required under the new credit facilities as of September 30, 2018, subject to certain limitations. Additionally, on August 10, 2018, the term of the management agreement with the Manager was extended until December 31, 2024. The Manager agreed to apply all or some of the amount of DIL’s unfulfilled obligations, if any, under the Backstop Agreement as a credit towards any fees payable by the Company to the Manager. In connection with the Refinancing, the Company has undertaken to seek to sell two of its 13,100 TEU vessels, the Hyundai Honour and Hyundai Respect, before December 31, 2018. The net proceeds from sales of such vessels are to be applied pro rata to repay the new credit facilities secured by mortgages on such vessels, which would further reduce the outstanding debt. The current carrying value of these vessels may exceed the market value of these vessels. (b) Restricted Stock. On September 14, 2018, the Company granted 4,182,832 shares of restricted stock to executive officers of the Company, 50% of which are scheduled to vest on December 31, 2019 and 50% of which are scheduled to vest on December 31, 2021, subject to satisfaction of the vesting terms, under its 2006 Equity Compensation Plan, as amended.

Significant Accounting Policies (Policies)	6 Months Ended
Significant Accounting Policies (Policies)	Jun. 30, 2018
Significant Accounting Policies
Changes in Accounting Principles	Changes in Accounting Principles: Statement of Cash Flows In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). The guidance adds or clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows. Additionally, in November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash” (“ASU 2016-18”), which requires that amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Company adopted these standards effective January 1, 2018. Prior periods were retrospectively adjusted to conform to the current period’s presentation. The adoption of ASU 2016-15 did not have a material impact on the condensed consolidated statements of cash flows. Upon adoption of ASU 2016-18, the Company reclassified the restricted cash balance of $2.8 million as of December 31, 2017, December 31, 2016 and June 30, 2017 to the cash, cash equivalent and restricted cash balances within the condensed consolidated statements of cash flows. Refer to Note 3 “Cash, Cash Equivalents and Restricted Cash” for further details. Financial Instruments In January 2016, the FASB issued Accounting Standards Update No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). ASU 2016-01 requires all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). The amendments in this Update also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition the amendments in this Update eliminate the requirement to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet for public business entities. The Company adopted this standard effective January 1, 2018. The Company’s investment in ZIM equity securities does not have readily determinable fair value. As a result, the Company elected to record this equity investment at cost, less impairment, adjusted for subsequent observable price changes. The adoption of this standard did not have a material effect on the condensed consolidated financial statements and notes disclosures. As of June 30, 2018, the Company did not identify any observable prices for the same or similar securities that would indicate a change in the carrying value of the Company’s equity. Revenue Recognition In May 2014, the FASB issued Accounting Standards Update No. 2014-9 “Revenue from Contracts with Customers” (“ASU 2014-09”), which superseded the current revenue recognition guidance and outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” (“ASU 2016-08”), which clarifies the implementation guidance on principal versus agent considerations. In addition, in 2016, the FASB issued four amendments, which clarified the guidance on certain items such as reporting revenue as a principal versus agent, identifying performance obligations, accounting for intellectual property licenses, assessing collectability and presentation of sales taxes. The Company adopted this standard effective January 1, 2018 using modified retrospective approach. The adoption of this standard did not have any effect on the retained earnings or on the financial results for the six months ended June 30, 2018 of the Company since all the Company’s vessels generated revenues from time charter and bareboat charter agreements, which are governed by ASU 2016-02 “Leases” — see below.
Recent Accounting Pronouncements	Recent Accounting Pronouncements: In February 2016, the FASB issued Accounting Standards Update No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). ASU 2016-02 will apply to both types of leases — capital (or finance) leases and operating leases. According to the new Accounting Standard, lessees will be required to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. ASU 2016 — 02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. This guidance requires companies to identify lease and non-lease components of a lease agreement. Lease components relate to the right to use the leased asset and non-lease components relate to payments for goods or services that are transferred separately from the right to use the underlying asset. Total lease consideration is allocated to lease and non-lease components on a relative standalone basis. The recognition of revenues related to lease components will be governed by ASC 842 while revenue related to non-lease components will be subject to ASC 606. In March 2018, the FASB tentatively approved a proposed amendment to ASU 842, that would provide an entity the optional transition method to initially account for the impact of the adoption with a cumulative adjustment to retained earnings on the effective date of the ASU, January 1, 2019 rather than January 1, 2017, which would eliminate the need to restate amounts presented prior to January 1, 2019. In addition, lessors can elect, as a practical expedient, not to allocate the total consideration to lease and non-lease components based on their relative standalone selling prices. As adopted by the Accounting Standards Update No. 2018-11 in July 2018, this practical expedient will allow lessors to elect and account for the combined component based on its predominant characteristic. ASC 842 provides practical expedients that allow entities to not (i) reassess whether any expired or existing contracts are considered or contain leases; (ii) reassess the lease classification for any expired or existing leases; and (iii) reassess initial direct costs for any existing leases. In July 2018, the FASB issued Accounting Standards Update No. 2018-10, “Codification Improvements to Topic 842, Leases”, which further improves and clarifies ASU 2016-02. The Company plans to adopt the standard on January 1, 2019 and expects to elect the use of practical expedients. The Company has not completed its analysis of this ASU. Based on a preliminary assessment, the Company is expecting that the adoption will not have a material effect on its consolidated financial statements since the Company is primarily a lessor and the changes are fairly minor. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. The ASU 2016-13 is effective for public entities for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact of the new standard on the Company’s consolidated financial statements.

Basis of Presentation and General Information (Tables)

6 Months Ended

Jun. 30, 2018

Basis of Presentation and General Information

Schedule of the vessel owning companies (the "Danaos Subsidiaries")

As of June 30, 2018, Danaos included the vessel owning companies (the “Danaos Subsidiaries”) listed below. All vessels are container vessels:

Company	Date of Incorporation	Vessel Name	Year Built	TEU(1)
Megacarrier (No. 1) Corp.	September 10, 2007	Hyundai Honour	2012	13,100
Megacarrier (No. 2) Corp.	September 10, 2007	Hyundai Respect	2012	13,100
Megacarrier (No. 3) Corp.	September 10, 2007	Maersk Enping	2012	13,100
Megacarrier (No. 4) Corp.	September 10, 2007	Maersk Exeter	2012	13,100
Megacarrier (No. 5) Corp.	September 10, 2007	MSC Ambition	2012	13,100
CellContainer (No. 6) Corp.	October 31, 2007	Express Berlin	2011	10,100
CellContainer (No. 7) Corp.	October 31, 2007	Express Rome	2011	10,100
CellContainer (No. 8) Corp.	October 31, 2007	Express Athens	2011	10,100
Karlita Shipping Co. Ltd.	February 27, 2003	Pusan C (ex CSCL Pusan)	2006	9,580
Ramona Marine Co. Ltd.	February 27, 2003	CSCL Le Havre	2006	9,580
Teucarrier (No. 5) Corp.	September 17, 2007	CMA CGM Melisande	2012	8,530
Teucarrier (No. 1) Corp.	January 31, 2007	CMA CGM Attila	2011	8,530
Teucarrier (No. 2) Corp.	January 31, 2007	CMA CGM Tancredi	2011	8,530
Teucarrier (No. 3) Corp.	January 31, 2007	CMA CGM Bianca	2011	8,530
Teucarrier (No. 4) Corp.	January 31, 2007	CMA CGM Samson	2011	8,530
Oceanew Shipping Ltd.	January 14, 2002	Europe	2004	8,468
Oceanprize Navigation Ltd.	January 21, 2003	America (ex CSCL America)	2004	8,468
Boxcarrier (No. 2) Corp.	June 27, 2006	CMA CGM Musset	2010	6,500
Boxcarrier (No. 3) Corp.	June 27, 2006	CMA CGM Nerval	2010	6,500
Boxcarrier (No. 4) Corp.	June 27, 2006	CMA CGM Rabelais	2010	6,500
Boxcarrier (No. 5) Corp.	June 27, 2006	CMA CGM Racine	2010	6,500
Boxcarrier (No. 1) Corp.	June 27, 2006	CMA CGM Moliere	2009	6,500
Expresscarrier (No. 1) Corp.	March 5, 2007	YM Mandate	2010	6,500
Expresscarrier (No. 2) Corp.	March 5, 2007	YM Maturity	2010	6,500
Actaea Company Limited	October 14, 2014	Performance	2002	6,402
Asteria Shipping Company Limited	October 14, 2014	Priority	2002	6,402
Continent Marine Inc.	March 22, 2006	Zim Monaco	2009	4,253
Medsea Marine Inc.	May 8, 2006	Zim Dalian	2009	4,253
Blacksea Marine Inc.	May 8, 2006	Zim Luanda	2009	4,253
Bayview Shipping Inc.	March 22, 2006	Zim Rio Grande	2008	4,253
Channelview Marine Inc.	March 22, 2006	Zim Sao Paolo	2008	4,253
Balticsea Marine Inc.	March 22, 2006	Zim Kingston	2008	4,253
Seacarriers Services Inc.	June 28, 2005	YM Seattle	2007	4,253
Seacarriers Lines Inc.	June 28, 2005	YM Vancouver	2007	4,253
Containers Services Inc.	May 30, 2002	ANL Tongala (ex Deva)	2004	4,253
Containers Lines Inc.	May 30, 2002	Derby D	2004	4,253
Boulevard Shiptrade S.A	September 12, 2013	Dimitris C	2001	3,430
CellContainer (No. 4) Corp.	March 23, 2007	Express Spain	2011	3,400
CellContainer (No. 5) Corp.	March 23, 2007	Express Black Sea	2011	3,400
CellContainer (No. 1) Corp.	March 23, 2007	Express Argentina	2010	3,400
CellContainer (No. 2) Corp.	March 23, 2007	Express Brazil	2010	3,400
CellContainer (No. 3) Corp.	March 23, 2007	Express France	2010	3,400
Wellington Marine Inc.	January 27, 2005	Singapore	2004	3,314
Auckland Marine Inc.	January 27, 2005	Colombo	2004	3,314
Vilos Navigation Company Ltd.	May 30, 2013	MSC Zebra	2001	2,602
Trindade Maritime Company	April 10, 2013	Amalia C	1998	2,452
Sarond Shipping Inc.	January 18, 2013	Danae C	2001	2,524
Speedcarrier (No. 7) Corp.	December 6, 2007	Highway	1998	2,200
Speedcarrier (No. 6) Corp.	December 6, 2007	Progress C (ex Hyundai Progress)	1998	2,200
Speedcarrier (No. 8) Corp.	December 6, 2007	Bridge	1998	2,200
Speedcarrier (No. 1) Corp.	June 28, 2007	Vladivostok	1997	2,200
Speedcarrier (No. 2) Corp.	June 28, 2007	Advance	1997	2,200
Speedcarrier (No. 3) Corp.	June 28, 2007	Stride	1997	2,200
Speedcarrier (No. 5) Corp.	June 28, 2007	Future	1997	2,200
Speedcarrier (No. 4) Corp.	June 28, 2007	Sprinter	1997	2,200

(1)

Twenty-feet equivalent unit, the international standard measure for containers and containership capacity.

Cash, Cash Equivalents and Restricted Cash (Tables)

6 Months Ended

Jun. 30, 2018

Cash, Cash Equivalents and Restricted Cash

Schedule of cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash consisted of the following (in thousands):

	As of		As of		As of
	June 30, 2018		December 31, 2017		December 31, 2016
Cash and cash equivalents	$	72,423	$	66,895	$	73,717
Restricted cash	2,812		2,812		2,812

Total	$	75,235	$	69,707	$	76,529

Deferred Charges, Net (Tables)

6 Months Ended

Jun. 30, 2018

Deferred Charges, Net

Schedule of deferred charges, net

Deferred charges, net consisted of the following (in thousands):

	Drydocking and Special Survey Costs
As of January 1, 2017	$	8,199
Additions	7,511
Amortization	(6,748		)

As of December 31, 2017	8,962
Additions	10,351
Amortization	(4,252		)

As of June 30, 2018	$	15,061

Investments in affiliates (Tables)

6 Months Ended

Jun. 30, 2018

Investments in affiliates

Consolidated wholly owned subsidiaries

As of June 30, 2018, Gemini consolidated its wholly owned subsidiaries listed below:

Company	Vessel Name	Year Built	TEU	Date of vessel delivery
Averto Shipping S.A.	Suez Canal	2002	5,610	July 20, 2015
Sinoi Marine Ltd.	Genoa	2002	5,544	August 2, 2015
Kingsland International Shipping Limited	Lodestar (ex NYK Lodestar)	2001	6,422	September 21, 2015
Leo Shipping and Trading S.A.	NYK Leo	2002	6,422	February 4, 2016

Summary of the financial information for equity accounted investments

A condensed summary of the financial information for equity accounted investments 49% owned by the Company shown on a 100% basis are as follows (in thousands):

	As of		As of
	June 30, 2018		December 31, 2017
Current assets	$	8,327	$	10,014
Non-current assets	$	41,441	$	40,901
Current liabilities	$	6,339	$	6,131
Non-current liabilities	$	30,813	$	32,544

	Six months ended		Six months ended
	June 30, 2018		June 30, 2017
Net operating revenues	$	8,625	$	8,590
Net income	$	376	$	725

Other Non-current Assets (Tables)

6 Months Ended

Jun. 30, 2018

Other Non-current Assets

Schedule of other non-current assets

Other non-current assets consisted of the following (in thousands):

	As of		As of
	June 30, 2018		December 31, 2017
Available for sale securities:
ZIM notes, net	$	24,760	$	21,093
HMM notes, net	14,327		13,509
Equity participation ZIM	—		—
Other assets	19,837		14,864

Total	$	58,924	$	49,466

Schedule of available for sale securities at fair value and unrealized losses

The unrealized losses, which were recognized in other comprehensive loss, are analyzed as follows as of June 30, 2018 (in thousands):

Description of securities	Amortized cost basis		Fair value		Unrealized loss on available for sale securities
ZIM notes	$	43,500	$	24,760	$	(18,740	)
HMM notes	19,685		14,327		(5,358		)

Total	$	63,185	$	39,087	$	(24,098	)

Schedule of unrealized loss on available for sale securities

The unrealized losses, which were recognized in other comprehensive loss, are analyzed as follows as of June 30, 2018 (in thousands):

	Unrealized loss on available for sale securities
Beginning balance as of January 1, 2018	$	(26,607	)
Unrealized gain on available for sale securities	2,509

Ending balance as of June 30, 2018	$	(24,098	)

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References + Details

Accrued Liabilities (Tables)

6 Months Ended

Jun. 30, 2018

Accrued Liabilities

Schedule of accrued liabilities

Accrued liabilities consisted of the following (in thousands):

	As of		As of
	June 30, 2018		December 31, 2017
Accrued payroll	$	797	$	928
Accrued interest	9,959		9,953
Accrued expenses	7,644		4,345

Total	$	18,400	$	15,226

Long-Term Debt, net (Tables)

6 Months Ended

Jun. 30, 2018

Long-Term Debt, net

Schedule of company's long-term debt, net

Company’s long-term debt, net as of June 30, 2018 and December 31, 2017 consisted of the following (in thousands):

Credit Facility	Balance as of June 30, 2018			Balance as of December 31, 2017
The Royal Bank of Scotland	630,405			$	634,864
HSH Nordbank AG-Aegean Baltic Bank-Piraeus Bank	616,361			622,851
The Export-Import Bank of Korea & ABN Amro	17,484			23,109
Deutsche Bank	152,998			156,062
Citibank	113,957			117,316
Credit Suisse	171,783			176,189
ABN Amro-Bank of America Merrill Lynch-Burlington Loan Management-National Bank of Greece	195,603			199,302
EnTrustPermal-Credit Suisse-CitiGroup	213,580			220,689
The Royal Bank of Scotland (January 2011 Credit Facility)	24,316			24,316
HSH Nordbank AG-Aegean Baltic Bank-Piraeus Bank (January 2011 Credit Facility)	17,205			17,205
ABN Amro-Bank of America Merrill Lynch-Burlington Loan Management -National Bank of Greece (January 2011 Credit Facility)	8,771			8,771
Sinosure CEXIM-Citibank-ABN Amro Credit Facility	71,190			81,360
Citibank—Eurobank Credit Facility (January 2011 Credit Facility)	37,645			37,645
Comprehensive Financing Plan exit fees accrued	22,583			21,099

Total long-term debt	$	2,293,881		$	2,340,778

Less: Deferred finance costs, net	(6,063		)	(11,177		)
Less: Current portion	(134,861		)	$	(2,329,601	)

Total long-term debt net of current portion and deferred finance cost	$	2,152,957		—

Schedule of debt maturities of long-term debt

After giving effect to the debt refinancing consummated on August 10, 2018, scheduled debt maturities of long-term debt subsequent to June 30, 2018 are as follows (in thousands):

Payments due by period ended	Fixed principal repayments		Variable principal repayments		Final payments due by June 30, 2024*		Total principal payments
June 30, 2019	$	114,606	$	20,255	—		$	134,861
June 30, 2020	113,360		28,234		—		141,594
June 30, 2021	118,852		24,431		—		143,283
June 30, 2022	105,927		32,685		—		138,612
June 30, 2023	85,222		57,939		—		143,161
June 30, 2024	35,879		89,610		$	1,444,298	1,569,787

Total long-term debt	$	573,846	$	253,154	$	1,444,298	$	2,271,298

* The final payments due by June 30, 2024, include the unamortized remaining principal debt balances under the new credit facilities, as such amount will be determinable following the fixed and variable amortization.

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64930739&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21521-112644

+ Details

Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2018

Financial Instruments

Schedule of estimated fair values of the financial instruments

	June 30, 2018				As of December 31, 2017
	Book Value		Fair Value		Book Value		Fair Value
	(in thousands of $)
Cash and cash equivalents	$	72,423	$	72,423	$	66,895	$	66,895
Restricted cash	$	2,812	$	2,812	$	2,812	$	2,812
Due from related parties	$	34,939	$	34,939	$	34,007	$	34,007
ZIM notes	$	24,760	$	24,760	$	21,093	$	21,093
HMM notes	$	14,327	$	14,327	$	13,509	$	13,509
Long-term debt, including current portion	$	2,293,881	$	1,737,947	$	2,340,778	$	2,325,209

Schedule of estimated fair value of the financial instruments, categorized based upon the fair value hierarchy

The estimated fair value of the financial instruments that are measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows as of June 30, 2018:

	Fair Value Measurements as of June 30, 2018
	Total		(Level I)		(Level II)		(Level III)
	(in thousands of $)
ZIM notes(1)	$	24,760	$	—	$	24,760	$	—
HMM notes(1)	$	14,327	$	—	$	14,327	$	—

The estimated fair value of the financial instruments that are not measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows as of June 30, 2018:

	Fair Value Measurements as of June 30, 2018
	Total		(Level I)		(Level II)		(Level III)
	(in thousands of $)
Long-term debt, including current portion(2)	$	1,737,947	$	—	$	1,737,947	$	—

The estimated fair value of the financial instruments that are measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows as of December 31, 2017:

	Fair Value Measurements as of December 31, 2017
	Total		(Level I)		(Level II)		(Level III)
	(in thousands of $)
ZIM notes(1)	$	21,093	$	—	$	21,093	$	—
HMM notes(1)	$	13,509	$	—	$	13,509	$	—

The estimated fair value of the financial instruments that are not measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows as of December 31, 2017:

	Fair Value Measurements as of December 31, 2017
	Total		(Level I)		(Level II)		(Level III)
	(in thousands of $)
Long-term debt, including current portion(2)	$	2,325,209	$	—	$	2,325,209	$	—

(1)

The fair value is estimated based on either observable market based inputs or unobservable inputs that are corroborated by market data, including currently available information on the Company’s counterparty, other contracts with similar terms, remaining maturities and interest rates.

(2)

Long-term debt, including current portion is presented gross of deferred finance costs of $6.1 million and $11.2 million as of June 30, 2018 and December 31, 2017, respectively. The fair value of the Company’s debt is estimated based on currently available debt with similar contract terms, interest rate and remaining maturities, as well as taking into account its increased credit risk.

Earnings per Share (Tables)

6 Months Ended

Jun. 30, 2018

Earnings per Share

Schedule of computation of basic and diluted earnings per share

	Three months ended
	June 30, 2018		June 30, 2017
	(in thousands)
Numerator:
Net income	$	5,838	$	20,229

Denominator (number of shares in thousands):
Basic and diluted weighted average common shares outstanding	109,799		109,825

	Six months ended
	June 30, 2018		June 30, 2017
	(in thousands)
Numerator:
Net income	$	20,830	$	38,672

Denominator (number of shares in thousands):
Basic and diluted weighted average common shares outstanding	109,799		109,825

Basis of Presentation and General Information (Details) $ / shares in Units, $ in Millions	Jun. 19, 2018 USD ($)	Jun. 30, 2018 item $ / shares shares	Dec. 31, 2017 $ / shares shares
Property, Plant and Equipment
Common stock, authorized capital stock (in shares) \| shares		750,000,000	750,000,000
Common stock, par value (in dollars per share) \| $ / shares		$ 0.01	$ 0.01
Preferred stock, authorized capital stock (in shares) \| shares		100,000,000	100,000,000
Preferred stock, par value (in dollars per share) \| $ / shares		$ 0.01	$ 0.01
Debt reduction in refinancing agreement \| $	$ 551
Maturity extension term	5 years
Hyundai Honour
Property, Plant and Equipment
TEU		13,100
Hyundai Respect
Property, Plant and Equipment
TEU		13,100
Maersk Enping
Property, Plant and Equipment
TEU		13,100
Maersk Exeter
Property, Plant and Equipment
TEU		13,100
MSC Ambition
Property, Plant and Equipment
TEU		13,100
Express Berlin
Property, Plant and Equipment
TEU		10,100
Express Rome
Property, Plant and Equipment
TEU		10,100
Express Athens
Property, Plant and Equipment
TEU		10,100
Pusan C (ex CSCL Pusan)
Property, Plant and Equipment
TEU		9,580
CSCL Le Havre
Property, Plant and Equipment
TEU		9,580
CMA CGM Melisande
Property, Plant and Equipment
TEU		8,530
CMA CGM Attila
Property, Plant and Equipment
TEU		8,530
CMA CGM Tancredi
Property, Plant and Equipment
TEU		8,530
CMA CGM Bianca
Property, Plant and Equipment
TEU		8,530
CMA CGM Samson
Property, Plant and Equipment
TEU		8,530
Europe
Property, Plant and Equipment
TEU		8,468
America (ex CSCL America)
Property, Plant and Equipment
TEU		8,468
CMA CGM Musset
Property, Plant and Equipment
TEU		6,500
CMA CGM Nerval
Property, Plant and Equipment
TEU		6,500
CMA CGM Rabelais
Property, Plant and Equipment
TEU		6,500
CMA CGM Racine
Property, Plant and Equipment
TEU		6,500
CMA CGM Moliere
Property, Plant and Equipment
TEU		6,500
YM Mandate
Property, Plant and Equipment
TEU		6,500
YM Maturity
Property, Plant and Equipment
TEU		6,500
Performance
Property, Plant and Equipment
TEU		6,402
Priority
Property, Plant and Equipment
TEU		6,402
Zim Monaco
Property, Plant and Equipment
TEU		4,253
Zim Dalian
Property, Plant and Equipment
TEU		4,253
Zim Luanda
Property, Plant and Equipment
TEU		4,253
Zim Rio Grande
Property, Plant and Equipment
TEU		4,253
Zim Sao Paolo
Property, Plant and Equipment
TEU		4,253
Zim Kingston
Property, Plant and Equipment
TEU		4,253
YM Seattle
Property, Plant and Equipment
TEU		4,253
YM Vancouver
Property, Plant and Equipment
TEU		4,253
ANL Tongala (ex Deva)
Property, Plant and Equipment
TEU		4,253
Derby D
Property, Plant and Equipment
TEU		4,253
Dimitris C
Property, Plant and Equipment
TEU		3,430
Express Spain
Property, Plant and Equipment
TEU		3,400
Express Black Sea
Property, Plant and Equipment
TEU		3,400
Express Argentina
Property, Plant and Equipment
TEU		3,400
Express Brazil
Property, Plant and Equipment
TEU		3,400
Express France
Property, Plant and Equipment
TEU		3,400
Singapore
Property, Plant and Equipment
TEU		3,314
Colombo
Property, Plant and Equipment
TEU		3,314
MSC Zebra
Property, Plant and Equipment
TEU		2,602
Amalia C
Property, Plant and Equipment
TEU		2,452
Danae C
Property, Plant and Equipment
TEU		2,524
Highway
Property, Plant and Equipment
TEU		2,200
Progress C (ex Hyundai Progress)
Property, Plant and Equipment
TEU		2,200
Bridge
Property, Plant and Equipment
TEU		2,200
Vladivostok
Property, Plant and Equipment
TEU		2,200
Advance
Property, Plant and Equipment
TEU		2,200
Stride
Property, Plant and Equipment
TEU		2,200
Future
Property, Plant and Equipment
TEU		2,200
Sprinter
Property, Plant and Equipment
TEU		2,200

Significant Accounting Policies - Statement of Cash Flows (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Recent Accounting Pronouncements
Cash, cash equivalent and restricted cash balances	$ 5,528	$ (9,897)
ASU 2016-18
Recent Accounting Pronouncements
Cash, cash equivalent and restricted cash balances		$ 2,800

Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Cash, Cash Equivalents and Restricted Cash
Cash and cash equivalents	$ 72,423	$ 66,895		$ 73,717
Restricted Cash and Cash Equivalents, Current	2,812	2,812		2,812
Total	75,235	69,707	$ 66,632	76,529
The Export-Import Bank of Korea & ABN Amro
Cash, Cash Equivalents and Restricted Cash
Restricted Cash and Cash Equivalents, Current	$ 2,800	$ 2,800		$ 2,800

Fixed Assets, Net (Details) - Vessels $ in Millions	6 Months Ended
Fixed Assets, Net (Details) - Vessels $ in Millions	Jun. 30, 2018 USD ($) $ / T	Dec. 31, 2017 USD ($)
Fixed Assets, Net
Residual value of the fleet \| $	$ 378.2	$ 378.2
Average life of scrap considered to calculate residual value of vessel, one	10 years
Average life of scrap considered to calculate residual value of vessel, two	5 years
Scrap value per ton (in dollars per ton) \| $ / T	300

Deferred Charges, Net (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
Deferred Charges, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Changes in deferred charges, net
Balance at the beginning of the period	$ 8,962	$ 8,199	$ 8,199
Additions	10,351		7,511
Amortization	(4,252)		(6,748)
Balance at the end of the period	$ 15,061		$ 8,962
Period of amortization for deferred costs		2 years 6 months

Investments in affiliates - Wholly Owned Subsidiaries (Details) $ in Millions	1 Months Ended	6 Months Ended
	Aug. 31, 2015 USD ($)	Jun. 30, 2018 USD ($) item
Gemini
Schedule of Equity Method Investments
Ownership (as a percent)	49.00%	49.00%
Gemini
Schedule of Equity Method Investments
Capital lease obligations assumed \| $	$ 35.4
Borrowings under a secured loan facility \| $	19.0
Proceeds from equity contributions \| $	$ 47.4
Net assets \| $		$ 12.6
Gemini \| Suez Canal
Schedule of Equity Method Investments
TEU \| item		5,610
Gemini \| Genoa
Schedule of Equity Method Investments
TEU \| item		5,544
Gemini \| Lodestar (ex NYK Lodestar)
Schedule of Equity Method Investments
TEU \| item		6,422
Gemini \| NYK Leo
Schedule of Equity Method Investments
TEU \| item		6,422
Gemini \| Entities that leases Suez Canal and Genoa and owns NYK Lodestar
Schedule of Equity Method Investments
Acquired interest	100.00%
Virage \| Gemini
Schedule of Equity Method Investments
Ownership (as a percent)	51.00%

Investments in affiliates - Equity Accounted Investments (Details) - Gemini - USD ($) $ in Thousands	1 Months Ended	6 Months Ended
	Aug. 31, 2015	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Summary of financial information
Ownership (as a percent)	49.00%	49.00%
Current assets		$ 8,327		$ 10,014
Non-current assets		41,441		40,901
Current liabilities		6,339		6,131
Long-term liabilities		30,813		$ 32,544
Net operating revenues		8,625	$ 8,590
Net income		$ 376	$ 725

Other Non-current Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Dec. 31, 2016
Other Non-current Assets
Other assets	$ 19,837	$ 14,864
Total	58,924	49,466
ZIM notes
Other Non-current Assets
Available for sale securities	24,760	21,093
HMM notes
Other Non-current Assets
Available for sale securities	$ 14,327	$ 13,509
ZIM \| Equity participation
Other Non-current Assets
Equity participation ZIM			$ 0

Other Non-current Assets - ZIM (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Jul. 31, 2016	Jul. 31, 2014
Notes \| ZIM
Other Non-current Assets
Impairment loss at reporting date	$ 0.7
Series 1 Notes \| ZIM
Other Non-current Assets
Principal amount of unsecured notes received			$ 8.8
Series 2 Notes \| ZIM
Other Non-current Assets
Principal amount of unsecured notes received			$ 41.1
Loan Notes 1 HMM \| HMM
Other Non-current Assets
Principal amount of unsecured notes received		$ 32.8
Loan Notes 2 HMM \| HMM
Other Non-current Assets
Principal amount of unsecured notes received		$ 6.2
Equity participation \| ZIM
Other Non-current Assets
Impairment loss at reporting date	28.7
Equity participation ZIM	$ 0.0

Other Non-current Assets - Transfer to Available for sale category (Details) - USD ($) $ in Thousands		6 Months Ended		12 Months Ended
	Mar. 28, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Available for sale securities at fair value and unrealized losses
Amortized cost basis		$ 63,185
Fair value		39,087
Unrealized loss on available for sale securities		(24,098)
Unrealized loss on available for sale securities
Beginning balance, Unrealized loss on available for sale securities		(26,607)
Unrealized gain on available for sale securities		2,509
Ending balance, Unrealized loss on available for sale securities		(24,098)		$ (26,607)
Straight-lining of company's revenue		16,800		$ 10,800
ZIM notes
Available for sale securities at fair value and unrealized losses
Amortized cost basis		43,500
Fair value		24,760
Unrealized loss on available for sale securities		(18,740)
HMM notes
Available for sale securities at fair value and unrealized losses
Amortized cost basis		19,685
Fair value		14,327
Unrealized loss on available for sale securities		$ (5,358)
Loan Notes 1 HMM \| HMM
Other Non-current Assets
Principal amount of Loan Notes sold	$ 13,000
Amortized costs	8,600
Proceeds from sale of notes receivable	$ 6,200
Loan Notes 1 HMM \| HMM \| Other income/(expenses), net
Other Non-current Assets
Loss on sale of notes receivable			$ 2,400

Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Accrued Liabilities
Accrued payroll	$ 797	$ 928
Accrued interest	9,959	9,953
Accrued expenses	7,644	4,345
Total	$ 18,400	$ 15,226

Long-Term Debt, net - Schedule of Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Long-Term Debt, net
Comprehensive Financing Plan exit fees accrued	$ 22,583	$ 21,099
Total long-term debt	2,293,881	2,340,778
Less: Deferred finance costs, net	(6,063)	(11,177)
Less: Current portion	(134,861)	(2,329,601)
Total long-term debt net of current portion and deferred finance cost	2,152,957
The Royal Bank of Scotland
Long-Term Debt, net
Long-term debt	630,405	634,864
HSH Nordbank AG-Aegean Baltic Bank-Piraeus Bank
Long-Term Debt, net
Long-term debt	616,361	622,851
The Export-Import Bank of Korea & ABN Amro
Long-Term Debt, net
Long-term debt	17,484	23,109
Deutsche Bank
Long-Term Debt, net
Long-term debt	152,998	156,062
Citibank
Long-Term Debt, net
Long-term debt	113,957	117,316
Credit Suisse
Long-Term Debt, net
Long-term debt	171,783	176,189
ABN Amro-Bank of America Merrill Lynch-Burlington Loan Management-National Bank of Greece
Long-Term Debt, net
Long-term debt	195,603	199,302
EnTrustPermal-Credit Suisse Citi Group
Long-Term Debt, net
Long-term debt	213,580	220,689
Sinosure CEXIM-Citibank-ABN Amro Credit Facility
Long-Term Debt, net
Long-term debt	71,190	81,360
Credit Facilities
Long-Term Debt, net
Remaining borrowing availability	0
January 2011 Credit Facility \| The Royal Bank of Scotland
Long-Term Debt, net
Long-term debt	24,316	24,316
January 2011 Credit Facility \| HSH Nordbank AG-Aegean Baltic Bank-Piraeus Bank
Long-Term Debt, net
Long-term debt	17,205	17,205
January 2011 Credit Facility \| ABN Amro-Bank of America Merrill Lynch-Burlington Loan Management-National Bank of Greece
Long-Term Debt, net
Long-term debt	8,771	8,771
January 2011 Credit Facility \| Citibank-Eurobank Credit Facility
Long-Term Debt, net
Long-term debt	$ 37,645	$ 37,645

Long-Term Debt, net - New Credit Facilities (Details) $ in Thousands				1 Months Ended
	Aug. 10, 2018 USD ($) shares	Jul. 20, 2018 USD ($)	Jun. 19, 2018 USD ($)	Jul. 31, 2018 USD ($) item	Jun. 30, 2018 USD ($)	Dec. 31, 2017 USD ($)
Long-Term Debt, net
Debt refinanced			$ 2,200,000
Debt reduction in refinancing agreement			$ 551,000
Maturity extension term			5 years
New Credit Facilities
Long-Term Debt, net
Maximum borrowing capacity under credit facility				$ 1,600,000
Percentage of actual free cash flow equal to quarterly fixed and variable payment				85.00%
Floor rate(as a percent)				0.00%
Number of credit facilities with PIK rate \| item				2
PIK interest rate				4.00%
Amount subject to additional PIK interest				$ 282,000
Minimum liquidity				$ 30,000
Minimum interest coverage ratio				2.50
New Credit Facilities \| December 31, 2018
Long-Term Debt, net
Minimum collateral loan coverage on charter-free basis (as a percent)				57.00%
Minimum collateral loan coverage on charter-attached basis (as a percent)				69.50%
Maximum net leverage ratio				7.50
Minimum consolidated market value adjusted net worth				$ 510,000
New Credit Facilities \| September 30, 2023 and thereafter
Long-Term Debt, net
Minimum collateral loan coverage on charter-free basis (as a percent)				100.00%
Minimum collateral loan coverage on charter-attached basis (as a percent)				100.00%
Maximum net leverage ratio				5.50
Minimum consolidated market value adjusted net worth				$ 60,000
New Credit Facilities \| LIBOR
Long-Term Debt, net
Interest rate margin (as a percent)				2.50%
Sinosure CEXIM-Citibank-ABN Amro Credit Facility
Long-Term Debt, net
Long-term debt					$ 71,190	$ 81,360
KEXIM ABN-AMRO Credit Facility
Long-Term Debt, net
Repayment of line of credit		$ 17,500
Subsequent event
Long-Term Debt, net
Number of shares issued upon refinancing of debt \| shares	99,342,271
Cash contribution from largest stockholder upon refinancing of debt	$ 10,000

Long-Term Debt, net - Maturities (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Scheduled maturities of long-term debt
June 30, 2019	$ 134,861
June 30, 2020	141,594
June 30, 2021	143,283
June 30, 2022	138,612
June 30, 2023	143,161
June 30, 2024	1,569,787
Total long-term debt	2,271,298
Debt refinancing discussion
Default of principal repayment	37,589
Other income/(expenses), net
Debt refinancing discussion
Professional fees related to refinancing discussions with lenders	29,700	$ 5,200
Fixed principal repayments
Scheduled maturities of long-term debt
June 30, 2019	114,606
June 30, 2020	113,360
June 30, 2021	118,852
June 30, 2022	105,927
June 30, 2023	85,222
June 30, 2024	35,879
Total long-term debt	573,846
Variable principal payments
Scheduled maturities of long-term debt
June 30, 2019	20,255
June 30, 2020	28,234
June 30, 2021	24,431
June 30, 2022	32,685
June 30, 2023	57,939
June 30, 2024	89,610
Total long-term debt	253,154
Final Payments due by June 30, 2024
Scheduled maturities of long-term debt
June 30, 2024	1,444,298
Total long-term debt	$ 1,444,298

Financial Instruments - Interest Rate Swap Hedges (Details) - Interest rate swap hedges $ in Millions	6 Months Ended
	Jun. 30, 2018 USD ($) agreement	Jun. 30, 2017 USD ($)
Financial Instruments
Number of agreements held \| agreement	0
Unrealized losses reclassified from accumulated other comprehensive loss to earnings	$ 1.8	$ 1.8
Unamortized accumulated other comprehensive loss on derivative instruments	85.6
Unrealized losses expected to be reclassified from accumulated other comprehensive loss to earnings within the next twelve months	$ 3.7

Financial Instruments - Estimated Fair Values Of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Book Value
Financial Instruments
Cash and cash equivalents	$ 72,423	$ 66,895
Restricted cash	2,812	2,812
Due from related parties	34,939	34,007
Long-term debt, including current portion	2,293,881	2,340,778
Fair Value
Financial Instruments
Cash and cash equivalents	72,423	66,895
Restricted cash	2,812	2,812
Due from related parties	34,939	34,007
Long-term debt, including current portion	1,737,947	2,325,209
Notes \| ZIM \| Book Value
Financial Instruments
Notes	24,760	21,093
Notes \| ZIM \| Fair Value
Financial Instruments
Notes	24,760	21,093
Notes \| HMM \| Book Value
Financial Instruments
Notes	14,327	13,509
Notes \| HMM \| Fair Value
Financial Instruments
Notes	$ 14,327	$ 13,509

Financial Instruments - Financial Instruments Measured and Not Measured At Fair Value On Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financial instruments measured at fair value
Deferred finance costs, net	$ 6,100	$ 11,200
Fair Value
Financial instruments measured at fair value
Long-term debt, including current portion	1,737,947	2,325,209
Non-recurring basis \| Level II
Financial instruments measured at fair value
Long-term debt, including current portion	1,737,947	2,325,209
Non-recurring basis \| Fair Value
Financial instruments measured at fair value
Long-term debt, including current portion	1,737,947	2,325,209
Notes \| ZIM \| Fair Value
Financial instruments measured at fair value
Notes	24,760	21,093
Notes \| ZIM \| Recurring basis \| Level II
Financial instruments measured at fair value
Notes	24,760	21,093
Notes \| ZIM \| Recurring basis \| Fair Value
Financial instruments measured at fair value
Notes	24,760	21,093
Notes \| HMM \| Fair Value
Financial instruments measured at fair value
Notes	14,327	13,509
Notes \| HMM \| Recurring basis \| Level II
Financial instruments measured at fair value
Notes	14,327	13,509
Notes \| HMM \| Recurring basis \| Fair Value
Financial instruments measured at fair value
Notes	$ 14,327	$ 13,509

Stockholders' Equity (Details) $ in Thousands	6 Months Ended
Stockholders' Equity (Details) $ in Thousands	Jun. 30, 2018 USD ($) director shares	Jun. 30, 2017 director	Aug. 10, 2018 USD ($)
Stock Based Compensation
Agreed contribution from stockholder			$ 10,000
Number of directors who elected to receive their compensation in shares \| director	0	0
Manager's employees
Stock Based Compensation
Vesting period	0 years
Contractual obligation for any stock to be granted	$ 0
Newly issued shares \| shares	0

Earnings per Share (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Numerator:
Net income	$ 5,838	$ 20,229	$ 20,830	$ 38,672
Denominator:
Basic and diluted weighted average common shares outstanding	109,799	109,825	109,799	109,825

Related Party Transactions (Details) - Manager - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Related Party Transactions
Management fees incurred shown under General and administrative expenses	$ 8,307	$ 8,428
Management commissions incurred shown under Voyage expenses	$ 2,518	$ 2,608

Subsequent Events (Details) - Subsequent event $ in Millions	Sep. 18, 2018 shares	Aug. 10, 2018 USD ($) item shares
Subsequent events
Number of shares issued upon refinancing of debt \| shares		99,342,271
Percentage of new common stock issued, as part of debt refinancing agreement, to outstanding common stock		47.50%
Cash contribution from largest stockholder upon refinancing of debt \| $		$ 10
Number of vessels will undertake to sell after consummation of refinancing \| item		2
Cargo carrying capacity of vessels (in TEUs) \| item		13,100
Restricted shares
Subsequent events
Shares granted \| shares	4,182,832
Awards that will vests on December 31, 2019 (as a percent)	50.00%
Awards that will vests on December 31, 2021 (as a percent)	50.00%
New Credit Facilities
Subsequent events
Minimum consolidated cash balance required under subordinated loan agreement \| $		$ 60