DANAOS CORP, 20-F filed on 3/3/2022
Annual and Transition Report (foreign private issuer)
v3.22.0.1
Document and Entity Information
 12 Months Ended
Dec. 31, 2021
shares
Entity Registrant Name DANAOS CORPORATION
Document Registration Statement false
Document Transition Report false
Document Annual Report true
Document Shell Company Report false
Entity File Number 001-33060
Entity Incorporation, State or Country Code 1T
Entity Address, Address Line One c/o Danaos Shipping Co. Ltd, Athens Branch
Entity Address, Address Line Two 14 Akti Kondyli
Entity Address, City or Town Piraeus
Entity Address, Country GR
Entity Address, Postal Zip Code 185 45
Title of 12(b) Security Common stock, $0.01 par value per share
Trading Symbol DAC
Security Exchange Name NYSE
Entity Central Index Key 0001369241
Document Type 20-F
Document Period End Date Dec. 31, 2021
Amendment Flag false
Current Fiscal Year End Date --12-31
Entity Well-known Seasoned Issuer Yes
Entity Voluntary Filers No
Entity Current Reporting Status Yes
Entity Interactive Data Current Yes
Entity Filer Category Large Accelerated Filer
Entity Common Stock, Shares Outstanding 20,716,738
Document Fiscal Year Focus 2021
Document Fiscal Period Focus FY
Entity Emerging Growth Company false
Entity Shell Company false
Document Accounting Standard U.S. GAAP
ICFR Auditor Attestation Flag true
Auditor Firm ID 1387
Auditor Name PricewaterhouseCoopers S.A.
Auditor Location Athens, Greece
Business Contact [Member]  
Entity Address, Address Line One c/o Danaos Shipping Co. Ltd, Athens Branch
Entity Address, Address Line Two 14 Akti Kondyli
Entity Address, City or Town Piraeus
Entity Address, Country GR
Entity Address, Postal Zip Code 185 45
Contact Personnel Name Evangelos Chatzis
City Area Code +30 210
Local Phone Number 419 6480
Contact Personnel Fax Number 30 210 419 6489
v3.22.0.1
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
CURRENT ASSETS    
Cash and cash equivalents $ 129,410 $ 65,663
Restricted cash 346  
Accounts receivable, net 7,118 7,556
Inventories 12,579 9,619
Prepaid expenses 2,032 855
Due from related parties 21,875 20,426
Other current assets 459,132 14,329
Total current assets 632,492 118,448
NON-CURRENT ASSETS    
Fixed assets at cost, net of accumulated depreciation of $1,055,792 (2020: $941,960) 2,861,651 2,479,937
Right-of-use assets, net of accumulated amortization of $3,085 79,442  
Deferred charges, net 11,801 17,339
Investments in affiliates   15,273
Other non-current assets 41,739 83,383
Total non-current assets 2,994,633 2,595,932
Total assets 3,627,125 2,714,380
CURRENT LIABILITIES    
Accounts payable 18,925 10,613
Accrued liabilities 20,846 10,960
Current portion of long-term debt, net 95,750 155,662
Current portion of long-term leaseback obligation, net 85,815 24,515
Accumulated accrued interest, current portion 6,146 18,036
Unearned revenue 83,180 19,476
Other current liabilities 8,645 423
Total current liabilities 319,307 239,685
LONG-TERM LIABILITIES    
Long-term debt, net 1,017,916 1,187,345
Long-term leaseback obligation, net of current portion 136,513 95,585
Accumulated accrued interest, net of current portion 24,155 136,433
Unearned revenue, net of current portion 37,977 19,574
Other long-term liabilities 3,234 181
Total long-term liabilities 1,219,795 1,439,118
Total liabilities 1,539,102 1,678,803
Commitments and Contingencies
STOCKHOLDERS' EQUITY    
Preferred stock (par value $0.01, 100,000,000 preferred shares authorized and not issued as of December 31, 2021 and December 31, 2020)
Common stock (par value $0.01, 750,000,000 common shares authorized as of December 31, 2021 and December 31, 2020. 25,056,009 and 24,788,598 shares issued; and 20,716,738 and 20,449,327 shares outstanding as of December 31, 2021 and December 31, 2020, respectively) 207 204
Additional paid-in capital 770,676 755,390
Accumulated other comprehensive loss (71,455) (86,669)
Retained earnings 1,388,595 366,652
Total stockholders' equity 2,088,023 1,035,577
Total liabilities and stockholders' equity $ 3,627,125 $ 2,714,380
v3.22.0.1
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
CONDENSED CONSOLIDATED BALANCE SHEETS    
Accumulated depreciation $ 1,055,792 $ 941,960
Accumulated amortization $ 3,085  
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 25,056,009 24,788,598
Common stock, shares outstanding 20,716,738 20,449,327
v3.22.0.1
CONSOLIDATED STATEMENTS OF INCOME - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
CONSOLIDATED STATEMENTS OF INCOME      
OPERATING REVENUES $ 689,505 $ 461,594 $ 447,244
OPERATING EXPENSES      
Voyage expenses (24,325) (14,264) (11,593)
Vessel operating expenses (135,872) (110,946) (102,502)
Depreciation and amortization of right-of-use assets (116,917) (101,531) (96,505)
Amortization of deferred drydocking and special survey costs (10,181) (11,032) (8,733)
General and administrative expenses (43,951) (24,341) (26,837)
Income from Operations 358,259 199,480 201,074
OTHER INCOME (EXPENSES):      
Interest income 12,230 6,638 6,414
Interest expense (68,991) (53,502) (72,069)
Gain on investments 577,994    
Equity income on investments 68,028 6,308 1,602
Gain on debt extinguishment 111,616    
Other finance expenses (1,326) (2,335) (2,702)
Other income/(expense), net 4,543 593 556
Income (loss) on derivatives (3,622) (3,632) (3,622)
Total Other Income/(Expenses), net 700,472 (45,930) (69,821)
Income before income taxes 1,058,731 153,550 131,253
Income taxes (5,890)    
Net Income $ 1,052,841 $ 153,550 $ 131,253
EARNINGS PER SHARE      
Basic earnings per share of common stock $ 51.75 $ 6.51 $ 8.29
Diluted earnings per share of common stock $ 51.15 $ 6.45 $ 8.09
Basic weighted average number of common shares 20,345,394 23,588,994 15,834,913
Diluted weighted average number of common shares 20,583,796 23,805,251 16,220,697
v3.22.0.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME      
Net Income $ 1,052,841 $ 153,550 $ 131,253
Other comprehensive income/(loss):      
Unrealized gain/(loss) on available for sale securities 20,803 26,633 (1,846)
Reclassification to interest income 9,211    
Amortization of deferred realized losses on cash flow hedges (3,622) (3,632) (3,622)
Total Other Comprehensive Income 15,214 30,265 1,776
Comprehensive Income $ 1,068,055 $ 183,815 $ 133,029
v3.22.0.1
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)
shares in Thousands, $ in Thousands
Common Stock
Additional paid-in capital
Accumulated other comprehensive loss
Retained earnings
Total
Balance at Dec. 31, 2018 $ 152 $ 727,562 $ (118,710) $ 81,849 $ 690,853
Balance (in shares) at Dec. 31, 2018 15,237        
Increase (Decrease) in Stockholders' Equity          
Net income       131,253 131,253
Issuance of common stock $ 94 53,473     53,567
Issuance of common stock (in shares) 9,418        
Stock compensation $ 2 4,239     4,241
Stock compensation (in shares) 134        
Net movement in other comprehensive income     1,776   1,776
Balance at Dec. 31, 2019 $ 248 785,274 (116,934) 213,102 881,690
Balance (in shares) at Dec. 31, 2019 24,789        
Increase (Decrease) in Stockholders' Equity          
Net income       153,550 153,550
Repurchase of common stock $ (44) (31,083)     (31,127)
Repurchase of common stock (in shares) (4,339)        
Stock compensation   1,199     1,199
Stock compensation (in shares) (1)        
Net movement in other comprehensive income     30,265   30,265
Balance at Dec. 31, 2020 $ 204 755,390 (86,669) 366,652 1,035,577
Balance (in shares) at Dec. 31, 2020 20,449        
Increase (Decrease) in Stockholders' Equity          
Net income       1,052,841 1,052,841
Issuance of common stock   11     11
Dividends       (30,898) (30,898)
Stock compensation $ 3 15,275     15,278
Stock compensation (in shares) 268        
Net movement in other comprehensive income     15,214   15,214
Balance at Dec. 31, 2021 $ 207 $ 770,676 $ (71,455) $ 1,388,595 $ 2,088,023
Balance (in shares) at Dec. 31, 2021 20,717        
v3.22.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Cash flows from operating activities      
Net income $ 1,052,841 $ 153,550 $ 131,253
Adjustments to reconcile net income to net cash provided by operating activities      
Depreciation and amortization of right-of-use assets 116,917 101,531 96,505
Amortization of deferred drydocking and special survey costs 10,181 11,032 8,733
Amortization of assumed time charters (27,614)    
Amortization of finance costs 11,599 11,657 10,795
Exit fee accrued on debt 149 521 556
Debt discount amortization 4,314 5,690 6,071
Gain on investments (543,653)    
Equity income on investments (68,028) (6,308) (1,602)
Gain on debt extinguishment (111,616)    
PIK interest 726 2,911 3,375
Payments for drydocking and special survey costs deferred (4,643) (16,916) (7,157)
Stock based compensation 15,278 1,199 4,241
Amortization of deferred realized losses on interest rate swaps 3,622 3,632 3,622
(Increase)/Decrease in:      
Accounts receivable 786 (411) 2,080
Inventories (2,068) (1,125) 390
Prepaid expenses (1,096) 603 (244)
Due from related parties (588) 86 (2,542)
Other assets, current and non-current (41,270) 3,635 (17,354)
Increase/(Decrease) in:      
Accounts payable 4,518 (181) 114
Accrued liabilities 8,787 2,433 (3,295)
Unearned revenue, current and long-term (832) (7,438) (14,995)
Other liabilities, current and long-term (199) (422) (668)
Net cash provided by operating activities 428,111 265,679 219,878
Cash flows from investing activities      
Vessels additions and assets acquisitions (355,720) (170,661) (5,680)
Advances for vessels additions     (15,680)
Investments 196,350 (75)  
Acquired cash and cash equivalents 16,222    
Net cash used in investing activities (143,148) (170,736) (21,360)
Cash flows from financing activities      
Proceeds from long-term debt 1,105,311 69,850  
Payments of long-term debt (1,343,725) (146,747) (262,572)
Proceeds from sale-leaseback of vessels 135,000 139,080 146,523
Payments of leaseback obligation (53,799) (153,904) (8,309)
Dividends paid (30,887)    
Payments of accumulated accrued interest (10,361) (25,639) (35,358)
Finance costs (22,409) (19,963) (30,474)
Repurchase of common stock   (31,127)  
Paid-in capital     54,440
Share issuance costs     (873)
Net cash used in financing activities (220,870) (168,450) (136,623)
Net increase/(decrease) in cash, cash equivalents and restricted cash 64,093 (73,507) 61,895
Cash, cash equivalents and restricted cash, beginning of year 65,663 139,170 77,275
Cash, cash equivalents and restricted cash, end of year 129,756 65,663 139,170
Supplemental cash flow information:      
Cash paid for interest $ 42,836 $ 35,215 $ 54,868
v3.22.0.1
Basis of Presentation and General Information
 12 Months Ended
Dec. 31, 2021
Basis of Presentation and General Information  
Basis of Presentation and General Information

1. Basis of Presentation and General Information

The accompanying financial statements 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 Danaos Corporation and its subsidiaries (the “Company”) is the United States Dollar.

Danaos Corporation, 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 18, “Stockholders’ Equity”.

The Company’s vessels operate worldwide, carrying containers for many established charterers.

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 (refer to Note 2, “Significant Accounting Policies”) that are under the exclusive management of a related party of the Company (refer to Note 11, “Related Party Transactions”).

On May 2, 2019, the Company effected a 1-for-14 reverse stock split of the issued and outstanding shares of common stock of the Company. All share and per share data disclosed in the accompanying consolidated financial statements give effect to this reverse stock split retroactively, for all periods presented. The reverse stock split reduced the number of the Company’s outstanding shares of common stock from 213,324,455 to 15,237,456 on May 2, 2019 and affected all issued and outstanding shares of common stock. No fractional shares were issued in connection to the reverse stock split. Stockholders who would otherwise hold a fractional share of the Company’s common stock received a cash payment in lieu of such fractional share. The par value and other terms of the Company’s common stock were not affected by the reverse stock split.

The consolidated financial statements of the Company 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 consolidated balance sheets and consolidated statements of income, consolidated statements of comprehensive income, cash flows and stockholders’ equity at and for each period since their respective incorporation or acquisition dates.

Impact of COVID-19 on the Company’s Business

The spread of the COVID-19 virus, which has been declared a pandemic by the World Health Organization, in 2020 has caused substantial disruptions in the global economy and the shipping industry, as well as significant volatility in the financial markets, the severity and duration of which remains uncertain.

The impact of the COVID-19 pandemic continues to unfold and may continue to have negative effect on the Company’s business, financial performance and the results of its operations, including due to decreased demand for global seaborne container trade and containership charter rates, mainly experienced in the first half of 2020. The extent of the impact will depend largely on future developments. As a result, many of the Company’s estimates and assumptions required increased judgment and carry a higher degree of variability and volatility. As events continue to evolve and additional information becomes available, the Company’s estimates may change in future periods.

​

1. Basis of Presentation and General Information (Continued)

As of December 31, 2021, Danaos consolidated the vessel owning companies (the “Danaos Subsidiaries”) listed below. All vessels are container vessels:

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​

​

​

​

​

​

​

​

​

​

​

Year

​

​

Company

    

Date of Incorporation

    

Vessel Name

    

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

 

Hyundai Smart

 

2012

 

13,100

Megacarrier (No. 4) Corp.

​

September 10, 2007

 

Hyundai Speed

 

2012

 

13,100

Megacarrier (No. 5) Corp.

​

September 10, 2007

 

Hyundai 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

 

2006

 

9,580

Ramona Marine Co. Ltd.

​

February 27, 2003

 

Le Havre

 

2006

 

9,580

Oceancarrier (No. 2) Corp.

​

October 15, 2020

​

Bremen

​

2009

​

9,012

Oceancarrier (No. 3) Corp.

​

October 15, 2020

​

C Hamburg

​

2009

​

9,012

Blackwell Seaways Inc.

​

January 9, 2020

​

Niledutch Lion

​

2008

​

8,626

Oceancarrier (No. 1) Corp.

​

February 19, 2020

​

Charleston

​

2005

​

8,533

Springer Shipping Co.

​

April 29, 2019

​

Belita

​

2006

​

8,533

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

​

2004

​

8,468

Rewarding International Shipping Inc.

​

October 1, 2019

​

Phoebe

​

2005

​

8,463

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

Kingsland International Shipping Limited

​

June 26, 2015

​

Catherine C

​

2001

​

6,422

Leo Shipping and Trading S.A.

​

October 29, 2015

​

Leo C

​

2002

​

6,422

Actaea Company Limited

​

October 14, 2014

​

Zim Savannah (ex Performance)

​

2002

​

6,402

Asteria Shipping Company Limited

​

October 14, 2014

​

Dimitra C

​

2002

​

6,402

Averto Shipping S.A.

​

June 12, 2015

​

Suez Canal

​

2002

​

5,610

Sinoi Marine Ltd.

​

June 12, 2015

​

Kota Lima (ex Genoa)

​

2002

​

5,544

Oceancarrier (No. 4) Corp.

​

July 6, 2021

​

Wide Alpha

​

2014

​

5,466

Oceancarrier (No. 5) Corp.

​

July 6, 2021

​

Wide Bravo

​

2014

​

5,466

Oceancarrier (No. 6) Corp.

​

July 6, 2021

​

Maersk Euphrates

​

2014

​

5,466

Oceancarrier (No. 7) Corp.

​

July 6, 2021

​

Wide Hotel

​

2015

​

5,466

Oceancarrier (No. 8) Corp.

​

July 6, 2021

​

Wide India

​

2015

​

5,466

Oceancarrier (No. 9) Corp.

​

July 6, 2021

​

Wide Juliet

​

2015

​

5,466

Continent Marine Inc.

​

March 22, 2006

 

Zim Monaco

 

2009

 

4,253

Medsea Marine Inc.

​

May 8, 2006

 

Dalian (ex Zim Dalian)

 

2009

 

4,253

Blacksea Marine Inc.

​

May 8, 2006

 

Zim Luanda

 

2009

 

4,253

Bayview Shipping Inc.

​

March 22, 2006

 

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

 

Seattle C

 

2007

 

4,253

Seacarriers Lines Inc.

​

June 28, 2005

 

Vancouver

 

2007

 

4,253

Containers Services Inc.

​

May 30, 2002

 

Tongala (ex ANL Tongala)

 

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

​

Zebra

​

2001

 

2,602

Sarond Shipping Inc.

​

January 18, 2013

 

Artotina (ex Danae C)

 

2001

 

2,524

Trindade Maritime Company

​

April 10, 2013

​

Amalia C

​

1998

 

2,452

Speedcarrier (No. 7) Corp.

​

December 6, 2007

 

Highway

 

1998

 

2,200

Speedcarrier (No. 6) Corp.

​

December 6, 2007

 

Progress C

 

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

​
v3.22.0.1
Significant Accounting Policies
 12 Months Ended
Dec. 31, 2021
Significant Accounting Policies  
Significant Accounting Policies

2. Significant Accounting Policies

Principles of Consolidation: The accompanying consolidated financial statements 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 obtained by the Company.

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 accounting guidance, if it determines that it is the primary beneficiary. 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.

Inter-company transaction balances and unrealized gains/(losses) on transactions between the companies are eliminated.

Investments in affiliates: The Company’s investments in affiliates are accounted for using the equity method of accounting. Under the equity method of accounting, investments are stated at initial cost and are adjusted for subsequent additional investments and the Company’s proportionate share of earnings or losses and distributions. The Company evaluates its investments in affiliates for impairment when events or circumstances indicate that the carrying value of such investments may have experienced other than temporary decline in value below their carrying value. If the estimated fair value is less than the carrying value and is considered an other than temporary decline, the carrying value is written down to its estimated fair value and the resulting impairment is recorded in the Consolidated Statements of Income.

Use of Estimates: The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. On an on-going basis, management evaluates the estimates and judgments, including those related to the selection of useful lives for tangible assets, expected future cash flows from long-lived assets to support impairment tests, provisions necessary for accounts receivables, provisions for legal disputes, and contingencies. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates under different assumptions and/or conditions.

Reclassifications in Other Comprehensive Income/(Loss): The Company had the following reclassifications out of Accumulated Other Comprehensive Loss during the years ended December 31, 2021, 2020 and 2019, respectively (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year ended December 31, 

​

    

Location of Reclassification into Income

    

2021

    

2020

    

2019

Amortization of deferred realized
losses on cash flow hedges

​

Loss on derivatives

​

$

3,622

​

$

3,632

​

$

3,622

Reclassification to interest income

 

Interest income

 

​

(9,211)

 

​

—

 

​

—

Total Reclassifications

​

​

​

$

(5,589)

​

$

3,632

​

$

3,622

​

​

2. Significant Accounting Policies (Continued)

Foreign Currency Translation: The functional currency of the Company is the U.S. dollar. The Company engages in worldwide commerce with a variety of entities. Although its operations may expose it to certain levels of foreign currency risk, its transactions are predominantly U.S. dollar denominated. Additionally, the Company’s wholly-owned vessel subsidiaries transacted a nominal amount of their operations in Euros; however, all of the subsidiaries’ primary cash flows are U.S. dollar denominated. Transactions in currencies other than the functional currency are translated at the exchange rate in effect at the date of each transaction. Differences in exchange rates during the period between the date a transaction denominated in a foreign currency is consummated and the date on which it is either settled or translated, are recognized in the Consolidated Statements of Income. The foreign currency exchange gains/(losses) recognized in the accompanying Consolidated Statements of Income for each of the years ended December 31, 2021, 2020 and 2019 were $0.2 million loss $0.4 million loss and $0.2 million loss, respectively, and are presented under “Vessel operating expenses” in the Consolidated Statements of Income.

Cash and Cash Equivalents: Cash and cash equivalents consist of interest bearing call deposits, where the Company has instant access to its funds and withdrawals and deposits can be made at any time, as well as time deposits with original maturities of three months or less which are not restricted for use or withdrawal. Cash and cash equivalents of $129.4 million as of December 31, 2021 (December 31, 2020: $65.7 million) comprised cash balances and short-term deposits.

Restricted Cash: Cash restricted accounts include retention accounts and any cash that is legally restricted as to withdrawal or usage. The Company is required to maintain cash on a retention account as collateral for the upcoming scheduled debt repayments related to the Eurobank $30 mil. Facility. On the rollover settlement date, both principal and interest are paid from the retention account. Refer to Note 4, “Cash, Cash Equivalents and Restricted Cash”.

Accounts Receivable, Net: The amount shown as Accounts Receivable, net, at each balance sheet date includes estimated recoveries from charterers for hire from operating leases accounted for in accordance with Topic 842 and demurrage billings, net of a provision for doubtful accounts. Accounts receivable are short term in duration as payments are expected to be received within one year. At each balance sheet date, all potentially uncollectible accounts are assessed individually for purposes of determining the appropriate provision for doubtful accounts based on the Company’s history of write-offs, level of past due accounts based on the contractual term of the receivables and its relationships with and economic status of its customers. Bad debts are written off in the period in which they are identified.

Insurance Claims: Insurance claims represent the claimable expenses, net of deductibles, which are expected to be recovered from insurance companies. Any costs to complete the claims are included in accrued liabilities. The Company accounts for the cost of possible additional call amounts under its insurance arrangements in accordance with the accounting guidance for contingencies based on the Company’s historical experience and the shipping industry practices. Insurance claims are included in the consolidated balance sheet line item “Other current assets”.

Prepaid Expenses and Inventories: Prepaid expenses consist mainly of insurance expenses, and inventories consist of bunkers, lubricants and provisions remaining on board the vessels at each period end, which are valued at cost as determined using the first-in, first-out method. Costs of spare parts are expensed as incurred.

Deferred Financing Costs: Loan arrangement fees incurred for obtaining new loans, for loans that have been accounted for as modified and the fees paid to third parties for loans that have been accounted for as extinguished, where there is a replacement debt and the lender remains the same, are deferred and amortized over the loans’ respective repayment periods using the effective interest rate method and are presented in the consolidated balance sheets as a direct deduction from the carrying amount of debt liability. Unamortized deferred financing costs for extinguished facilities are written-off. Loan arrangement fees related to the facilities accounted for under troubled debt restructuring with future undiscounted cash flows greater than the net carrying value of the original debt are capitalized and amortized over the loan respective repayment period using the effective interest rate method. Additionally, amortization of deferred finance costs is included in interest expenses in the Consolidated Statements of Income.

​

2. Significant Accounting Policies (Continued)

Fixed Assets: Fixed assets consist of vessels. Vessels are stated at cost, less accumulated depreciation. The cost of vessels consists of the contract purchase price and any material expenses incurred upon acquisition (improvements and delivery expenses). Subsequent expenditures for conversions and major improvements are also capitalized when they appreciably extend the life, increase the earning capacity or improve the efficiency or safety of the vessels. Otherwise, these expenditures are charged to expense as incurred. Interest costs while under construction are included in vessels’ cost.

The Company acquired six vessels in the secondhand market and five vessels from Gemini Shipholdings Corporation (“Gemini”) in 2021 and five vessels in the secondhand market in 2020, all of which were considered to be acquisitions of assets. Following adoption of ASU 2017-01 “Business Combinations (Topic 805)” on January 1, 2018, the Company evaluates if any vessel acquisition in secondhand market constitutes a business or not. When substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the set is not a business. The following assets are considered as a single asset for the purposes of the evaluation (i) a tangible asset that is attached to and cannot be physically removed and used separately from another tangible assets (or an intangible asset representing the right to use a tangible asset); (ii) in place lease intangibles, including favorable and unfavorable intangible assets or liabilities, and the related leased assets.

The Company charters in certain vessels under a long-term sale and leaseback arrangement. The proceeds received by the Company from the buyer-lessor were recognized as a financial leaseback obligation as this arrangement did not qualify for a sale of these vessels. The Company has substantive repurchase obligation of these vessels at the end of the leaseback period or earlier, at the Company’s option, and retains the control over these vessels. Each leaseback payment is allocated between the liability and interest expense to achieve a constant interest rate on the leaseback obligation outstanding. The interest element of the leaseback payment is charged under “Interest expense” in the accompanying Consolidated Statements of Income over the leaseback period.

Time Charters Assumed on Acquisition of Vessels: The Company recognizes separately identified assets and liabilities arising from the market value of time charters assumed at the date of vessel delivery associated with the acquisition of secondhand vessels. When the present value of the contractual cash flows of the time charter assumed is lower than its current fair value, the difference is recorded as unearned revenue. When the opposite occurs the difference is recognized as accrued charter revenue. Such liabilities or assets are amortized as an increase in revenue and reduction of revenue, respectively, over the period of each time charter assumed. Significant assumptions used in calculation of the fair value of the time charters assumed include daily time charter rate prevailing in the market for the similar size of the vessels available before the acquisition for a similar charter durations (including the estimated time charter expiry date). Other assumptions used are the discount rate based on the weighted average cost of capital for the shipping industry close to the acquisition date and the estimated average off-hire rate.

Depreciation: The cost of the Company’s vessels is depreciated on a straight-line basis over the vessels’ remaining economic useful lives after considering the estimated residual value (refer to Note 5, “Fixed Assets, net & Right-of-use Assets”). Management has estimated the useful life of the Company’s vessels to be 30 years from the year built.

Right-of-Use Assets and Finance Lease Obligations: ASC 842 classifies leases from the standpoint of the lessee as finance leases or operating leases. The determination of whether an arrangement contains a finance lease is based on the substance of the arrangement and is based in accordance with the criteria set such as e.g. transfer of ownership, purchase options, lease duration and present value of lease payments.

Finance leases are accounted for as the acquisition of a right-of use asset and the incurrence of a finance lease obligation by the lessee. On the lease commencement date, a lessee is required to measure and record a lease liability equal to the present value of the remaining lease payments, discounted using the rate of implicit in the lease or if the rate implicit in the lease is not readily determined, at the lessee’s incremental borrowing rate. Subsequently, the lease liability is increased by the interest on the lease liability, determined using effective interest rate that produces a constant periodic discount rate on the remaining balance of the liability, and decreased by the lease payments during the period.

​

2. Significant Accounting Policies (Continued)

A lessee initially measures the right-of-use asset at cost, which consists of: the amount of the initial measurement of the lease liability, any lease payments made to the lessor at or before the commencement date, minus any lease incentives received and any initial direct cost incurred by the lessee. Subsequently, the right-of-use asset is measured at cost plus payment for leasehold improvement less any accumulated amortization and impairment charges. Amortization expense is calculated and recognized on a straight-line basis over the shorter of the useful life of the asset or the lease term, after considering the estimated residual value of the vessel. The residual value of the vessel is equal to the product of its lightweight tonnage and estimated scrap rate at $300 per ton. Amortization of right-of-use assets is included under “Depreciation and amortization of right-of-use assets” in the Consolidated Statements of Income. However, if the lease transfers ownership of the underlying asset to the lessee or the lessee is reasonably certain to exercise an option to purchase the underlying assets, the lessee shall amortize the right-of-use of asset to the end of the useful life of the underlying asset.

Management has estimated the useful life of the Company’s vessels to be 30 years from the year built.

Vessels held for sale: Vessels are classified as “Vessels held for sale” when all of the following criteria are met: management has committed to a plan to sell the vessel; the vessel is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of vessels; an active program to locate a buyer and other actions required to complete the plan to sell the vessel have been initiated; the sale of the vessel is probable and transfer of the vessel is expected to qualify for recognition as a completed sale within one year; the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Vessels classified as held for sale are measured at the lower of their carrying amount or fair value less cost to sell. These vessels are not depreciated once they meet the criteria to be held for sale.

Accounting for Special Survey and Drydocking Costs: The Company follows the accounting guidance for planned major maintenance activities. Drydocking and special survey costs, which are reported in the balance sheet within “Deferred charges, net”, include planned major maintenance and overhaul activities for ongoing certification including the inspection, refurbishment and replacement of steel, engine components, electrical, pipes and valves, and other parts of the vessel. The Company follows the deferral method of accounting for special survey and drydocking costs, whereby actual costs incurred are deferred and amortized on a straight-line basis over the period until the next scheduled survey and drydocking, 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.

The amortization periods reflect the estimated useful economic life of the deferred charge, which is the period between each special survey and drydocking.

Costs incurred during the drydocking period relating to routine repairs and maintenance are expensed. The unamortized portion of special survey and drydocking costs for vessels sold is included as part of the carrying amount of the vessel in determining the gain/(loss) on sale of the vessel.

Pension and Retirement Benefit Obligations-Crew: The crew on board the companies’ vessels serve in such capacity under short-term contracts (usually up to seven months) and accordingly, the vessel-owning companies are not liable for any pension or post-retirement benefits.

Dividends: Dividends, if any, are recorded in the Company’s financial statements in the period in which they are declared by the Company’s board of directors.

​

2. Significant Accounting Policies (Continued)

Impairment of Long-lived Assets: The accounting standard for impairment of long-lived assets requires that long-lived assets and certain identifiable intangibles held and used or disposed of by an entity be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If any such indication exists, the Company performs step one of the impairment test by comparing the undiscounted projected net operating cash flows for each vessel to its carrying value. In the case of a vessel held and used, if the future net undiscounted cash flows are less than the carrying value of the vessel, the Company performs step two of impairment assessment by comparing the vessel’s fair value to its carrying value and an impairment loss is recorded equal to the difference between the vessel’s carrying value and fair value.

As of December 31, 2021, the Company concluded that no events and circumstances triggered the existence of potential impairment of its vessels. As of December 31, 2020 and 2019, the Company concluded that events and circumstances triggered the existence of potential impairment of some of its vessels. These indicators included volatility in the charter market and the vessels’ market values, as well as the potential impact the current marketplace may have on its future operations. As a result, the Company performed step one of the impairment assessment for some of the Company’s vessels by comparing the undiscounted projected net operating cash flows for each vessel to its carrying value. The Company’s strategy is to charter its vessels under multi-year, fixed rate period charters that have the initial terms ranging from less than 1 to 18 years for vessels in its fleet, providing the Company with contracted stable cash flows. The Company used number of factors and assumptions in its undiscounted projected net operating cash flow analysis included, among others, operating revenues, off-hire revenues, drydocking costs, operating expenses and management fees estimates. Revenue assumptions were based on contracted time charter rates up to the end of life of the current contract of each vessel as well as the estimated time charter equivalent rates for the remaining life of the vessel after the completion of its current contract for non-contracted revenue days. The estimated daily time charter equivalent rate used for the non-contracted revenue days of each vessel is considered a significant assumption. Recognizing that the container transportation industry is cyclical and subject to significant volatility based on factors beyond the Company’s control, management believes that the most recent 5 to 15 years historical average time charter rates represent a reasonable benchmark for the estimated time charter equivalent rates for the non-contracted revenue days, as such averages take into account the volatility and cyclicality of the market. In addition, the Company used an annual operating expenses escalation factor and estimates of scheduled and unscheduled off-hire revenues based on historical experience. All estimates used and assumptions made were in accordance with the Company’s internal budgets and historical experience of the shipping industry.

As at December 31, 2020 and 2019, the Company’s assessment concluded that step two of the impairment analysis was not required for any vessel, as the undiscounted projected net operating cash flows of all vessels exceeded the carrying value of the respective vessels. As of December 31, 2020 and 2019, no impairment loss was identified.

Business Combinations: The Company allocates the purchase price of acquisitions to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition date. The excess of the acquisition price over those estimated fair values is recorded as goodwill. Changes to the acquisition date provisional fair values prior to the end of the measurement period are recorded as adjustments to the associated goodwill. Acquisition related expenses and restructuring costs, if any, are expensed as incurred.

Investments in Debt Securities: Available for sale securities are carried at fair value with net unrealized gain/(loss) included in accumulated other comprehensive income/(loss), subject to impairment. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. Interest income, including amortization of premiums and accretion of discounts are recognized in the interest income in the Consolidated Statements of Income. Upon sale, realized gain/(loss) is recognized in the Consolidated Statement of Income based on specific identification method. The Company adopted ASU 2016-13 “Financial Instruments – Credit Losses (Topic 326)” on January 1, 2020. Management evaluates securities for impairment on a quarterly basis. An investment is considered impaired if the fair value of the investment is less than its amortized cost. Consideration is given to: i) if the Company intends to sell the security (that is, it has decided to sell the security); ii) it is more likely than not that the Company will be required to sell the security before the recovery of its entire amortized cost basis; or iii) a credit loss exists. If it is determined that the Company intends to sell the security or it is more likely than not that the Company will be required to sell the securities before the recovery of its entire amortized cost basis, the impairment loss, difference between the fair value and amortized cost basis of the securities, will be recorded in the accompanying Consolidated Statements of Income.

2. Significant Accounting Policies (Continued)

The fair value of debt securities is estimated based on a weighted combination of (1) a yield-to-maturity analysis based on a quoted (non-binding) price from a third party broker, (2) a yield-to-maturity analysis of a similar bond(s) in an active market, (3) the available market data for yield-to-maturity for the corporate bonds, if available and (4) if applicable, redemption information announced by the issuer of the security. The weightings and the yield-to-maturities used in the calculation of fair value of the debt securities are assumptions that require significant management judgment.

When the securities are impaired at the reporting date, and the Company does not meet the guidance for intending to sell or more likely than not being required to sell the securities before the amortized cost basis is recovered, the Company determines whether the impairment is related to credit or non-credit factors. To determine the amount of impairment related to credit, the Company compares the present value of the cash flows expected to be collected on the securities with the amortized cost basis of the securities. If the present value of cash flows expected to be collected is less than the securities’ amortized cost basis, the difference is recorded as an allowance for credit losses in the accompanying Consolidated Statements of Income. Any remaining difference between the securities’ fair value and amortized cost basis is considered to be non-credit related impairment and is recorded in the accompanying Consolidated Statements of Other Comprehensive Income.

Investments in Equity Securities: Following the adoption of ASU 2016-01 “Recognition and measurement of Financial Assets and Financial Liabilities” on January 1, 2018, the Company measured the investment in ZIM equity securities at cost, less impairment, adjusted for subsequent observable price changes. ZIM equity securities did not have readily determinable fair value until January 27, 2021 when ZIM completed its initial public offering and listing on the New York Stock Exchange of its ordinary shares. Since then ZIM equity securities are valued based on the closing price of ZIM ordinary shares on the New York Stock Exchange at each balance sheet date and unrealized gain/(loss) is recognized in each relevant period. Realized gain/(loss) is recognized on sale of the shares as a difference between the net sale proceeds and original cost less impairment. Realized and unrealized gains/(losses) as well as dividends received on these shares, net of withholding tax, are reflected under “Gain on investments” in the Consolidated Statements of Income.

Management evaluates the equity security for other than temporary impairment on a quarterly basis. An investment is considered impaired if the fair value of the investment is less than its cost. Consideration is given to significant deterioration in the earnings performance, credit rating, asset quality, or business prospects of the investee, significant adverse change in the regulatory, economic, or technological environment of the investee, significant adverse change in the general market condition of either the geographic area or the industry in which the investee operates, as well as factors that raise significant concerns about the investee’s ability to continue as a going concern, such as negative cash flows from operations, working capital deficiencies, or noncompliance with statutory capital requirements or debt covenants.

Accounting for Revenue and Expenses: The Company derives its revenue from time charters and bareboat charters of its vessels, each of which contains a lease. These charters involve placing the specified vessel at charterers’ use for a specified rental period of time in return for the payment of specified daily hire rates. Most of the charters include options for the charterers to extend their terms. Under a time charter, the daily hire rate includes lease component related to the right of use of the vessel and non-lease components primarily related to the operating expenses of the vessel incurred by the Company such as commissions, vessel operating expenses: crew expenses, lubricants, certain insurance expenses, repair and maintenance, spares, stores etc. and vessel management fees. Under a bareboat charter, the daily hire rate includes only lease component related to the right of use of the vessel. The revenue earned based on time charters is not negotiated in separate components. Revenue from the Company’s time charters and bareboat charters of vessels is accounted for as operating leases on a straight line basis based on the average fixed rentals over the minimum fixed rental period of the time charter and bareboat charter agreements, as service is performed.

The Company elected the practical expedient which allows the Company to treat the lease and non-lease components as a single lease component for the leases where the timing and pattern of transfer for the nonlease component and the associated lease component to the lessees are the same and the lease component, if accounted for separately, would be classified as an operating lease. The combined component is therefore accounted for as an operating lease under ASC 842, as the lease components are the predominant characteristics, in 2021, 2020 and 2019.

2. Significant Accounting Policies (Continued)

The Company adopted the new “Leases” standard (Topic 842) on January 1, 2019 using the modified retrospective method. The Company elected the practical expedient to use the effective date of adoption as the date of initial application. Furthermore the Company elected practical expedients, which allow entities (i) to not reassess whether any expired or existing contracts are considered or contain leases; (ii) to not reassess the lease classification for any expired or existing leases (iii) to not reassess initial direct costs for any existing leases and (iv) which allows to treat the lease and non-lease components as a single lease component due to its predominant characteristic. The adoption of this standard did not have a material effect on the consolidated financial statements since the Company is primarily a lessor and the accounting for lessors is largely unchanged under this standard.

Voyage Expenses: Voyage expenses include port and canal charges, bunker (fuel) expenses (bunker costs are normally covered by the Company’s charterers, except in certain cases such as vessel re-positioning), address commissions and brokerage commissions. Under multi-year time charters and bareboat charters, such as those on which the Company charters its containerships and under short-term time charters, the charterers bear the voyage expenses other than brokerage and address commissions. As such, voyage expenses represent a relatively small portion of the vessels’ overall expenses.

Vessel Operating Expenses: Vessel operating expenses include crew wages and related costs, the cost of insurance, expenses for repairs and maintenance, the cost of spares and consumable stores, tonnage taxes and other miscellaneous expenses. Aggregate expenses increase as the size of the Company’s fleet increases. Under multi-year time charters, the Company pays for vessel operating expenses. Under bareboat charters, the Company’s charterers bear most vessel operating expenses, including the costs of crewing, insurance, surveys, drydockings, maintenance and repairs.

General and administrative expenses: General and administrative expenses include management fees paid to the vessels’ manager (refer to Note 11, “Related Party Transactions”), audit fees, legal fees, board remuneration, executive officers compensation, directors & officers insurance and stock exchange fees.

Repairs and Maintenance: All repair and maintenance expenses are charged against income when incurred and are included in vessel operating expenses in the accompanying Consolidated Statements of Income.

Income taxes: Income taxes comprise of taxes withheld on dividend income earned on the Company’s investments.

Troubled Debt Restructuring and Accumulated Accrued Interest: Prior to the finalization of the 2018 Refinancing (refer to Note 10, “Long-Term Debt, Net”), the Company concluded that it was experiencing financial difficulty and that certain of the lenders granted a concession (as part of the Refinancing). The Company was experiencing financial difficulty primarily as a result of the projected cash flows not being sufficient to service the balloon payment due as of December 31, 2018 without restructuring and the Company was not able to obtain funding from sources other than existing creditors at an effective interest rate equal to the current market interest rate for similar debt. As a result, the accounting guidance for troubled debt restructuring (“TDR”) was applied at the Closing Date. The TDR accounting guidance required the Company to record the value of the new debt to its restructured undiscounted cash flows over the life of the loan, including cash flows associated with the remaining scheduled interest and principal payments not to exceed the carrying amount of the original debt. In cases in which the recorded value of the debt instrument exceeds the sum of undiscounted future cash flows to be received under the restructured debt instrument, the recorded value is reduced to the sum of undiscounted future cash flows, and a gain is recorded. As a result of the TDR accounting, the interest expense related to the future periods on certain facilities was recognized under the accumulated accrued interest line in the Balance Sheet. Interest payments relating to the future interest recognized in accumulated accrued interest, are recognized as a reduction to the accumulated accrued interest payable when these are paid. As a result, these interest payments are not recorded as interest expense. Following the refinancing of the related loan facilities and to the extent these facilities are extinguished and should no future cash interest payments will be required, the accumulated accrued interest related to these loan facilities is recognized under the gain on debt extinguishment in the Consolidated Statements of Income.

​

2. Significant Accounting Policies (Continued)

When interest rates change, actual cash flows will differ from the cash flows measured on the Refinancing closing date. The accounting treatment for changes in cash flows due to changes in interest rates depends on whether there is an increase or a decrease from the spot interest rate used in the initial TDR accounting (“threshold interest rate”). Fluctuations in the effective interest rate after the Refinancing from changes in the interest rate or other cause are accounted for as changes in estimates in the periods in which these changes occur. Upon an increase in the interest rates from the threshold interest rate used to calculate accumulated accrued interest payable, the Company recognizes additional interest expenses in the period the expense is incurred. The additional interest expense is calculated by multiplying the difference between the current interest rate and the threshold interest rate with the current carrying value of the debt. A gain due to decrease in interest rates (‘interest windfall’) will not be recognized until the debt facilities have been settled and there are no future interest payments. In case there are subsequent increases in interest rates above the threshold interest rate after a previous decrease in interest rates, the carrying amount of the accumulated accrued interest will be reduced by the interest payments in excess of the threshold interest rate until the prior interest windfall due to decrease in the interest rates is recaptured on a cumulative basis.

The Paid-in-kind interest (“PIK interest”) related to each period will increase the carrying value of the loan facility and correspondingly decrease the carrying value of the accumulated accrued interest. PIK interest in excess of the amount recognized in the accumulated accrued interest is expensed in the period the expense is incurred.

Going Concern: The management of the Company assesses the Company’s ability to continue as a going concern at each period end. The assessment evaluates whether there are conditions that give rise to substantial doubt to continue as a going concern within one year from the consolidated financial statements issuance date.

If a substantial doubt to continue as a going concern is identified and after considering management’s plans this substantial doubt is alleviated the Company discloses the following: (i) principal conditions or events that raised substantial doubt about the Company’s ability to continue as a going concern (before consideration of management’s plans), (ii) management’s evaluation of the significance of those conditions or events in relation to the Company’s ability to meet its obligations, (iii) management’s plans that alleviated substantial doubt about the Company’s ability to continue as a going concern.

If a substantial doubt to continue as a going concern is identified and after considering management’s plans this substantial doubt is not alleviated the Company discloses the following: (i) a statement indicating that there is substantial doubt about the Company’s ability to continue as a going concern, (ii) principal conditions or events that raised substantial doubt about the Company’s ability to continue as a going concern, (iii) management’s evaluation of the significance of those conditions or events in relation to the Company’s ability to meet its obligations, and (iv) management’s plans that are intended to mitigate the conditions or events that raised substantial doubt about the Company’s ability to continue as a going concern.

The Company updates the going concern disclosure in subsequent periods until the period in which substantial doubt no longer exists disclosing how the relevant conditions or events that raised substantial doubt were resolved.

Segment Reporting: The Company reports financial information and evaluates its operations by total charter revenues. Although revenue can be identified for different types of charters, management does not identify expenses, profitability or other financial information for different charters. As a result, management, including the chief operating decision maker, reviews operating results solely by revenue per day and operating results of the fleet, and thus the Company has determined that it has only one operating and reportable segment.

Derivative Instruments: The Company entered into interest rate swap contracts to create economic hedges for its interest rate risks. The Company recorded these financial instruments at their fair value. When such derivatives do not qualify for hedge accounting, changes in their fair value are recorded in the Consolidated Statement of Income. When the derivatives do qualify for hedge accounting, depending upon the nature of the hedge, changes in the fair value of derivatives are either offset against the fair value of assets, liabilities or firm commitments through income, or recognized in other comprehensive income (effective portion) and are reclassified to earnings when the hedged transaction is reflected in earnings. The ineffective portion of a derivative’s change in fair value is immediately recognized in income.

2. Significant Accounting Policies (Continued)

At the inception of the transaction, the Company documents the relationship between hedging instruments and hedged items, as well as its risk management objective and the strategy for undertaking various hedging transactions. The Company also documents its assessment, both at the hedge inception and on an ongoing basis, of whether the derivative financial instruments that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items.

On July 1, 2012, the Company elected to prospectively de-designate fair value and cash flow interest rate swaps for which it was obtaining hedge accounting treatment due to the compliance burden associated with this accounting policy. As a result, all changes in the fair value of the Company’s cash flow interest rate swap agreements were recorded in earnings under “Loss on derivatives” from the de-designation date forward.

The Company evaluated whether it is probable that the previously hedged forecasted interest payments are probable to not occur in the originally specified time period. The Company has concluded that the previously hedged forecasted interest payments are probable of occurring. Therefore, unrealized gains or losses in accumulated other comprehensive loss associated with the previously designated cash flow interest rate swaps will remain frozen in accumulated other comprehensive loss and recognized in earnings when the interest payments will be recognized. If such interest payments were to be identified as being probable of not occurring, the accumulated other comprehensive loss balance pertaining to these amounts would be reversed through earnings immediately.

The Company does not use financial instruments for trading or other speculative purposes.

Earnings Per Share: The Company has presented net earnings per share for all years presented based on the weighted average number of outstanding shares of common stock of Danaos Corporation at the reported periods. Diluted earnings per share reflect the potential dilution that would occur if securities or other contracts to issue common stock were exercised. The warrants issued in 2011 and which expired in January 2019 were excluded from the diluted earnings per share for the year ended December 31, 2019, because they were antidilutive. Unvested shares of restricted stock are included in the calculation of the diluted earnings per share, unless considered antidilutive, based on the weighted average number of shares of restricted stock outstanding during the period.

Treasury Stock: The Company recognizes treasury stock based on the price paid to repurchase its shares, including direct costs to acquire treasury stock. Treasury stock is recorded as a reduction from common stock at its par value and the price paid in excess of par value and direct costs, if any, as a reduction from additional paid-in capital. Treasury stock is excluded from average common shares outstanding for basic and diluted earnings per share.

Equity Compensation Plan: The Company has adopted an equity compensation plan (the “Plan”) in 2006 (as amended on August 2, 2019), which is generally administered by the compensation committee of the Board of Directors. The Plan allows the plan administrator to grant awards of shares of common stock or the right to receive or purchase shares of common stock to employees, directors or other persons or entities providing significant services to the Company or its subsidiaries. The actual terms of an award will be determined by the plan administrator and set forth in written award agreement with the participant. Any options granted under the Plan will be accounted for in accordance with the accounting guidance for share-based compensation arrangements.

The aggregate number of shares of common stock for which awards may be granted under the Plan shall not exceed 1,000,000 shares plus the number of unvested shares granted before August 2, 2019. Awards made under the Plan that have been forfeited, cancelled or have expired, will not be treated as having been granted for purposes of the preceding sentence. Unless otherwise set forth in an award agreement, any awards outstanding under the Plan will vest immediately upon a “change of control”, as defined in the Plan. Refer to Note 17, “Stock Based Compensation”.

​

2. Significant Accounting Policies (Continued)

As of April 18, 2008, the Company established the Directors Share Payment Plan (“Directors Plan”). The purpose of the Directors 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. Each member of the Board of Directors of the Company may participate in the Directors Plan. Pursuant to the terms of the Directors Plan, Directors may elect to receive in Common Stock all or a portion of their compensation. On the last business day of each quarter, the rights of common stock are credited to each Director’s Share Payment Account. Following December 31st of each year, the Company will deliver to each Director the number of shares represented by the rights credited to their Share Payment Account during the preceding calendar year. Refer to Note 17, “Stock Based Compensation”.

As of April 18, 2008, the Board of Directors and the Compensation Committee approved the Company’s ability to provide, from time to time, incentive compensation to the employees of Danaos Shipping Company Limited (the “Manager”), in the form of free shares of the Company’s common stock under the Plan. Prior approval is required by the Compensation Committee and the Board of Directors. The plan was effective since 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 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. Refer to Note 17, “Stock Based Compensation”.

v3.22.0.1
Acquisitions
 12 Months Ended
Dec. 31, 2021
Acquisitions  
Acquisitions

3. Acquisitions

a. Gemini Shipholdings Corporation

Prior to July 1, 2021 the Company owned 49% of Gemini Shipholdings Corporation’s (“Gemini”) issued and outstanding share capital and accounted for its financial results under the equity method of accounting. On July 1, 2021, the Company exercised its option to acquire the remaining 51% equity interest in Gemini from Virage International Ltd. for $86.7 million, which was fully paid by November 1, 2021. Substantially all of the fair value of the gross assets acquired is concentrated in adjusted vessels value, and the Company therefore accounted for the acquisition of the five vessels of Gemini as an asset acquisition. The Company’s previously held equity interest in Gemini was remeasured to its fair value on July 1, 2021, the date the controlling interest was acquired and the resulting gain of $64.1 million was recognized in “Equity income on investments” in the Consolidated Statements of Income.

As of July 1, 2021, the Company fully consolidated the following vessel owning subsidiaries of Gemini:

​

​

​

​

​

​

​

Company

    

Vessel Name

    

Year Built

    

TEU

Averto Shipping S.A.

 

Suez Canal

 

2002

 

5,610

Sinoi Marine Ltd.

 

Kota Lima (ex Genoa)

 

2002

 

5,544

Kingsland International Shipping Limited

 

Catherine C

 

2001

 

6,422

Leo Shipping and Trading S.A.

 

Leo C

 

2002

 

6,422

Springer Shipping Co.

 

Belita

 

2006

 

8,533

​

​

3. Acquisitions (Continued)

The following table summarized the consideration exchanged and the fair value of assets acquired and liabilities assumed on July 1, 2021 (in thousands):

​

​

​

​

Purchase price:

    

  

​

Purchase price (51%)

​

$

86,700

Fair value of previously held interest (49%)

​

 

83,300

Total purchase price

​

$

170,000

Fair value of assets and liabilities acquired:

​

 

  

Vessels

​

 

154,500

Right-of-use assets

​

 

82,500

Cash, cash equivalents and restricted cash

​

 

14,388

Current assets

​

 

2,534

Assumed time charter liabilities

​

 

(36,001)

Long-term debt (including current portion)

​

 

(23,125)

Obligations under finance lease

​

 

(21,880)

Current liabilities

​

 

(2,916)

Fair value of net assets acquired

​

$

170,000

​

A condensed summary of the income statement of Gemini presented on a 100% basis is as follows for the periods that the entity was accounted for under the equity method of accounting (in thousands):

​

​

​

​

​

​

​

​

​

​

​

    

Six months ended

    

Year ended

    

Year ended

​

​

June 30, 2021

​

December 31, 2020

​

December 31, 2019

Net operating revenues

​

$

17,984

​

$

31,844

​

$

20,264

Net income

​

$

8,091

​

$

12,873

​

$

3,268

​

The aggregate fair value of the assumed time charter liabilities was estimated at $36.0 million as determined at the acquisition date and is amortized under the straight line method over their estimated remaining charter duration. The weighted average remaining charter duration is 1.4 years at inception. The amortization of these assumed time charters amounted to $15.3 million for the period ended December 31, 2021 and is presented under “Operating revenues” in the Consolidated Statements of Income. The aggregate future amortization of the assumed time charters as of December 31, 2021 is as follows (in thousands):

​

​

​

​

Amortization for the periods ending:

    

​

​

December 31, 2022

​

$

19,644

Until March 2023

​

 

1,017

Total

​

 

20,661

Less: Current portion

​

 

(19,644)

Total non-current portion

​

$

1,017

​

The amount of $19.6 million is presented under current “Unearned revenue” and $1.0 million under “Unearned revenue, net of current portion” in the Consolidated Balance Sheet as of December 31, 2021.

​

3. Acquisitions (Continued)

b. Danaos Management Support Pte. Limited

On November 26, 2021, the Company acquired 100% of the issued and outstanding shares of Danaos Management Support Pte. Limited. (“DMS”), a company providing integrated web-enabled maritime software systems based in Singapore, for $2.1 million in cash payable on or before December 31, 2022, in order to establish the Company’s presence in Asia. The following table summarizes the consideration and the fair value of assets acquired and liabilities assumed on the acquisition date (in thousands):

​

​

​

​

​

Total purchase price

    

$

2,136

Fair value of assets and liabilities acquired:

​

 

  

Cash and cash equivalents

​

 

1,834

Current assets

​

 

829

Current liabilities

​

 

(527)

Fair value of net assets acquired

​

$

2,136

​

The pro forma results of the DMS business acquisition are not material to the Company’s Statements of Income.
v3.22.0.1
Cash, Cash Equivalents and Restricted Cash
 12 Months Ended
Dec. 31, 2021
Cash, Cash Equivalents and Restricted Cash  
Cash, Cash Equivalents and Restricted Cash

4. Cash, Cash Equivalents and Restricted Cash

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

​

​

​

​

​

​

​

​

​

​

​

    

As of

    

As of

    

As of

​

    

December 31, 2021

    

December 31, 2020

    

December 31, 2019

Cash and cash equivalents

​

$

129,410

​

$

65,663

​

$

139,170

Restricted cash

​

 

346

​

 

—

​

 

—

Total

​

$

129,756

​

$

65,663

​

$

139,170

​

The Company is required to maintain cash on a retention account as collateral for the upcoming scheduled debt payments related to the Eurobank $30 mil. Facility, which was recorded in restricted cash under current assets as of December 31, 2021.
v3.22.0.1
Fixed Assets, net & Right-of-use Assets
 12 Months Ended
Dec. 31, 2021
Fixed Assets, net & Right-of-use Assets  
Fixed Assets, net & Right-of-use Assets

5. Fixed Assets, net & Right-of-use Assets

Fixed assets, net consisted of the following (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

Vessel

​

Accumulated 

​

Net Book

​

    

Costs

    

Depreciation

    

Value

As of January 1, 2019

​

$

3,224,253

​

$

(743,924)

​

$

2,480,329

Additions

​

 

6,050

​

 

—

​

 

6,050

Depreciation

​

 

—

​

 

(96,505)

​

 

(96,505)

As of December 31, 2019

​

$

3,230,303

​

$

(840,429)

​

$

2,389,874

Additions

​

 

191,594

​

 

—

​

 

191,594

Depreciation

​

 

—

​

 

(101,531)

​

 

(101,531)

As of December 31, 2020

​

$

3,421,897

​

$

(941,960)

​

$

2,479,937

Additions

​

 

495,546

​

 

—

​

 

495,546

Depreciation

​

 

—

​

 

(113,832)

​

 

(113,832)

As of December 31, 2021

​

$

3,917,443

​

$

(1,055,792)

​

$

2,861,651

​

​

5. Fixed Assets, net & Right-of-use Assets (Continued)

On July 7, 2021, the Company entered into an agreement to acquire six 5,466 TEU sister vessels Wide Alpha, Wide Bravo, Maersk Euphrates, Wide India, Wide Juliet and Wide Hotel (built in 2014 through 2015) together with their existing charter agreements for an aggregate gross purchase price amounting to $260.0 million in cash, which was fully paid by September 30, 2021. The vessels were delivered from August 25, 2021 to October 6, 2021. The aggregate fair value of the assumed time charter liabilities was estimated at $74.1 million and is amortized under the straight line method over their estimated remaining charter duration. The weighted average remaining charter duration is 2.0 years at inception. The amortization of these assumed time charters amounted to $12.3 million for the period ended December 31, 2021 and is presented under “Operating revenues” in the Consolidated Statements of Income. The aggregate future amortization of the assumed time charters as of December 31, 2021 is as follows (in thousands):

​

​

​

​

Amortization for the periods ending:

    

  

​

December 31, 2022

​

$

36,454

December 31, 2023

​

 

20,806

Until April 2024

​

 

4,534

Total

​

 

61,794

Less: Current portion

​

 

(36,454)

Total non-current portion

​

$

25,340

​

The amount of $36.5 million is presented under current “Unearned revenue” and $25.3 million under “Unearned revenue, net of current portion” in the Consolidated Balance Sheet as of December 31, 2021.

In the year ended December 31, 2020, the Company acquired vessels Niledutch Lion, Phoebe, Charleston, Bremen and C Hamburg for total acquisition costs of $141.9 million. Additionally, in the first half of 2020, the Company installed scrubbers on nine of its vessels with total costs of $39.9 million.

As of December 31, 2021, the Company concluded that no events and circumstances triggered the existence of potential impairment of the Company’s vessels as none of our vessels have current market value below its carrying value. As of December 31, 2020, the Company concluded that events and circumstances triggered the existence of potential impairment for some of the Company’s vessels. These indicators included volatility in the charter market and the vessels’ market values, as well as the potential impact the current marketplace may have on its future operations. As a result, the Company performed step one of the impairment assessment for some of the Company’s vessels by comparing the undiscounted projected net operating cash flows for each of these vessels to its carrying values. As at December 31, 2020, the Company’s assessment concluded that step two of the impairment analysis was not required for any vessel, as the undiscounted projected net operating cash flows of all vessels exceeded the carrying value of the respective vessels. As of December 31, 2021 and 2020, no impairment loss was identified.

The residual value (estimated scrap value at the end of the vessels’ useful lives) of the fleet was estimated at $504.1 million and $428.2 million as of December 31, 2021 and December 31, 2020, respectively. 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. 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.

On May 12, 2020, the Company refinanced the existing leaseback obligation related to the vessels Hyundai Honour and Hyundai Respect with a new sale and leaseback arrangement amounting to $139.1 million with a four years term, at the end of which the Company will reacquire these vessels for an aggregate amount of $36.0 million or earlier, at the Company’s option, for a purchase price set forth in the agreement. This arrangement did not qualify for a sale of the vessels and the net proceeds were recognized as a financial leaseback liability.

​

5. Fixed Assets, net & Right-of-use Assets (Continued)

On April 12, 2021, the Company entered into a sale and leaseback arrangement with Oriental Fleet International Company Limited (“Oriental Fleet”) for the vessels CMA CGM Melisande, CMA CGM Attila, CMA CGM Tancredi, CMA CGM Bianca and CMA CGM Samson amounting to gross proceeds of $135.0 million with a five year term, at the end of which the Company will reacquire these vessels for an aggregate amount of $31.0 million or earlier, at the Company’s option, for a purchase price set forth in the agreement. This new arrangement did not qualify for a sale of the vessels and the net proceeds were recognized as a financial leaseback liability.

On July 1, 2021, the Company acquired right-of-use assets and assumed finance lease liability related to the Gemini’s vessels Suez Canal and Kota Lima (ex Genoa), which expires in July 2022 - see also Note 3 ”Acquisitions”.

Under these lease arrangements, the Company is required to be in compliance with the same financial covenants as required by the Citibank/Natwest $815 million senior secured facility - see Note 10 “Long-Term Debt, net”.

The carrying value of the vessels subject to leasing obligations amounted to $766.2 million as of December 31, 2021.

The scheduled leaseback instalments subsequent to December 31, 2021 are as follows (in thousands):

​

​

​

​

Instalments due by period ended:

    

​

  

December 31, 2022

​

$

95,772

December 31, 2023

​

​

55,878

December 31, 2024

​

 

56,366

December 31, 2025

​

 

7,209

Until April 2026

​

 

32,777

Total leaseback instalments

​

 

248,002

Less: Imputed interest

​

 

(21,531)

Total leaseback obligation

​

 

226,471

Less: Deferred finance costs, net

​

​

(4,143)

Less: Current leaseback obligation

​

​

(85,815)

Leaseback obligation, net of current portion

​

$

136,513

​
v3.22.0.1
Deferred Charges, Net
 12 Months Ended
Dec. 31, 2021
Deferred Charges, Net  
Deferred Charges, Net

6. Deferred Charges, Net

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

​

​

​

​

​

    

Drydocking and

​

​

Special Survey

​

​

Costs

As of January 1, 2019

​

$

13,031

Additions

​

 

7,157

Amortization

​

 

(8,733)

As of December 31, 2019

​

$

11,455

Additions

​

​

16,916

Amortization

​

​

(11,032)

As of December 31, 2020

​

$

17,339

Additions

​

 

4,643

Amortization

​

 

(10,181)

As of December 31, 2021

​

$

11,801

​

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.
v3.22.0.1
Other Current and Non-current Assets
 12 Months Ended
Dec. 31, 2021
Other Current and Non-current Assets  
Other Current and Non-current Assets

7. Other Current and Non-current Assets

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

​

​

​

​

​

​

​

​

    

2021

    

2020

Equity participation ZIM

​

$

423,024

​

​

—

Straight-lining of revenue

​

​

18,997

​

$

9,454

Claims receivable

​

​

8,919

​

​

—

Other assets

​

​

8,192

​

​

4,875

Total current assets

​

$

459,132

​

$

14,329

​

​

​

​

​

​

​

Available for sale securities:

​

​

​

​

​

​

ZIM notes, net

​

​

—

​

$

43,559

HMM notes, net

​

​

—

​

​

19,328

Equity participation ZIM

​

​

—

​

​

75

Other assets

​

 

41,739

​

 

20,421

Total non-current assets

​

$

41,739

​

$

83,383

​

a. ZIM

The Company classified its equity participation in ZIM, received after the charter restructuring agreements with ZIM in 2014, at cost as the Company does not have the ability to exercise significant influence. In 2016, the Company tested for impairment of its equity participation in ZIM based on the existence of triggering events that indicate the interest in equity may have been impaired and recorded an impairment loss of $28.7 million, thus reducing its book value to nil. In March 2020, the Company increased its equity participation in ZIM to approximately 10.2% by acquisition of additional shares for $75 thousand.

On January 27, 2021, ZIM completed its initial public offering and listing on the New York Stock Exchange of its ordinary shares. Following this offering the Company owned 10,186,950 ordinary shares of ZIM. These shares were recorded at a book value of $75 thousands and presented under “Other non-current assets” in the Consolidated Balance Sheet as of December 31, 2020. In June 2021, the Company sold 2,000,000 of ordinary shares of ZIM resulting in net proceeds of $76.4 million. The remaining shareholding interest was subject to a lockup agreement with the underwriters of the June 2021 stock sale until September 2021. In October 2021, the Company sold additional 1,000,000 of ordinary shares of ZIM resulting in net proceeds of $44.3 million. The fair value of the remaining 7,186,950 ordinary shares of ZIM amounting to $423.02 million, representing 6.1% of ZIM’s outstanding ordinary shares, is presented under “Other current assets” in the Consolidated Balance Sheet as of December 31, 2021, based on the closing price of ZIM ordinary shares on the NYSE on that date. For the year ended December 31, 2021, the Company recognized $543.65 million of gain on these shares, of which $422.97 million is unrealized gain related to the ZIM ordinary shares still held on December 31, 2021. Additionally, the Company recognized dividends on these shares amounting to $34.34 million in the year ended December 31, 2021. Both the gain and dividends are reflected under “Gain on investments” in the Consolidated Statement of Income. Taxes withheld on dividend income amounting to $5.89 million in the year ended December 31, 2021 are reflected under “Income taxes” in the Consolidated Statement of Income.

The Company received $2.4 million of mandatory repayment of ZIM Series 1 Notes from excess cash of ZIM in March 2021 and $47.2 million of mandatory repayment of all remaining ZIM Series 1 and Series 2 Notes and accrued interest of $6.4 million in June 2021.

7. Other Current and Non current Assets (Continued)

The Company recognized $6.6 million, $4.3 million and $4.1 million in relation to total interest income and fair value unwinding of ZIM notes in the Consolidated Statements of Income under “Interest income” for years ended December 31, 2021, 2020 and 2019, respectively.

Furthermore, in July 2014, an amount of $39.1 million, which represents the additional compensation received from ZIM, was recorded as unearned revenue representing compensation to the Company for the future reductions in the daily charter rates payable by ZIM under its time charters, which expired in 2020 or 2021, for six of the Company’s vessels. This amount was recognized in the Consolidated Statements of Income under “Operating revenues” over the remaining life of the respective time charters. For each of the years ended December 31, 2021, 2020 and 2019, respectively, the Company recorded an amount of $1.1 million, $5.4 million and $6.0 million of unearned revenue amortization in “Operating revenues”. As of December 31, 2020, the corresponding outstanding balances of the current and non-current portion of unearned revenue in relation to ZIM amounted to $1.1 million and nil, respectively. As of December 31, 2021 the outstanding balance is nil. Refer to Note 13, “Financial Instruments—Fair value of Financial Instruments”.

b. HMM

In July 2016, after the charter restructuring agreements with HMM, the Company obtained interest bearing senior unsecured HMM notes consisting of $32.8 million Loan Notes 1 with original maturity in July 2024 and $6.2 million Loan Notes 2 maturing in December 2022 and 4.6 million HMM shares. The HMM notes were originally classified as held to maturity securities and recorded at amortized costs less other than temporary impairment since initial recognition. Based on the management’s intention, the HMM shares were held principally for the purpose of the resale in the near term and were classified as trading securities. The Company also tests periodically for impairment of its investments in debt securities based on the existence of triggering events that indicate debt instruments may have been impaired.

On September 1, 2016, the Company sold all HMM shares and the net proceeds were used to repay outstanding debt obligations. Furthermore, for the years ended December 31, 2021, 2020 and 2019, the Company recognized $5.0 million, $2.1 million and $1.9 million, respectively, in relation to total interest income and fair value unwinding of HMM notes under “Interest income” in the Consolidated Statement of Income. The Company received $19.9 million of mandatory repayment of HMM Loan Notes 1 and related accrued interest of $3.0 million in May 2021 and $6.1 million of mandatory repayment of HMM Loan Notes 2 and related accrued interest of $1.1 million in December 2021.

On July 18, 2016, the Company recognized unearned revenue of $75.6 million representing compensation to the Company for the future reductions in the daily charter rates payable by HMM under the time charter agreements. The amortization of unearned revenue is recognized in the Consolidated Statement of Income under “Operating revenues” over the remaining life of the respective charters. In each of the years ended December 31, 2021, 2020 and 2019, the Company recorded an amount of $8.2 million of unearned revenue amortization. As of December 31, 2021, the outstanding balances of the current and non-current portion of unearned revenue in relation to HMM amounted to $8.2 million and $10.7 million, respectively. As of December 31, 2020, the corresponding outstanding balances of the current and non-current portion of unearned revenue amounted to $8.2 million and $18.9 million, respectively. Refer also to Note 13, “Financial Instruments—Fair value of Financial Instruments”.

​

7. Other Current and Non current Assets (Continued)

c. Available for sale category

As described above, in 2021, ZIM and HMM redeemed all notes previously classified as available for sale. The following tables summarizes the unrealized positions for available-for-sale debt securities as of December 31, 2021 and December 31, 2020 (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

Amortized cost

​

​

​

Unrealized

Description of securities

    

basis

    

Fair value

    

gain/(loss)

December 31, 2021

​

​

—

​

​

—

​

​

—

​

​

​

​

​

​

​

​

​

​

December 31, 2020

​

​

​

​

​

​

​

​

​

ZIM notes

​

$

49,871

​

$

43,559

​

$

(6,312)

HMM notes

​

​

24,607

​

​

19,328

​

​

(5,279)

Total

​

$

74,478

​

$

62,887

​

$

(11,591)

​

​

​

​

​

​

    

Unrealized

​

​

gain/(loss)

​

​

on available for

​

    

sale securities

Balance as of January 1, 2019

​

$

(36,378)

Unrealized loss on available for sale securities

​

​

(1,846)

Balance as of December 31, 2019

 

​

(38,224)

Unrealized gain on available for sale securities

​

​

26,633

Balance as of December 31, 2020

​

$

(11,591)

Gain on available for sale securities

​

​

20,803

Reclassification to interest income

​

 

(9,212)

Balance as of December 31, 2021

​

​

—

​

Other non-current assets mainly include non-current assets related to straight-lining of the Company’s revenue amounting to $39.9 million and $20.0 million as of December 31, 2021 and December 31, 2020, respectively.
v3.22.0.1
Accrued Liabilities
 12 Months Ended
Dec. 31, 2021
Accrued Liabilities  
Accrued Liabilities

8. Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):

​

​

​

​

​

​

​

​

    

2021

    

2020

Accrued payroll

​

$

1,001

​

$

1,008

Accrued interest

​

 

11,873

​

 

2,137

Accrued dry-docking expenses

​

​

280

​

​

2,177

Accrued expenses

​

 

7,692

​

 

5,638

Total

​

$

20,846

​

$

10,960

​

Accrued expenses mainly consisted of accruals related to the operation of the Company’s fleet and other expenses as of December 31, 2021 and December 31, 2020.
v3.22.0.1
Lease Arrangements
 12 Months Ended
Dec. 31, 2021
Lease Arrangements  
Lease Arrangements

9. Lease Arrangements

Charters-out

As of December 31, 2021, the Company generated operating revenues from its 71 vessels on time charters or bareboat charter agreements, with remaining terms ranging from less than one year to June 2028. Under the terms of the charter party agreements, most charterers have options to extend the duration of contracts ranging from less than one year to five years after the expiration of the contract. The Company determines fair value of its vessels at the lease commencement date and at the end of lease term for lease classification with the assistance from valuations obtained by third party independent shipbrokers. The Company manages its risk associated with the residual value of its vessels after the expiration of the charter party agreements by seeking multi-year charter arrangements for its vessels.

The future minimum rentals, expected to be earned on non-cancellable time charters consisted of the following as of December 31, 2021 (in thousands):

​

​

​

​

2022

    

$

850,851

2023

​

 

753,705

2024

​

 

551,119

2025

​

 

310,347

2026

​

 

204,493

2027 and thereafter

​

 

182,316

Total future rentals

​

$

2,852,831

​

Rentals from time charters are not generally received when a vessel is off-hire, including time required for normal periodic maintenance of the vessel. In arriving at the future minimum rentals, an estimated time off-hire to perform periodic maintenance on each vessel has been deducted, although there is no assurance that such estimate will be reflective of the actual off-hire in the future.
v3.22.0.1
Long-Term Debt, net
 12 Months Ended
Dec. 31, 2021
Long-Term Debt, net  
Long-Term Debt, net

10. Long-Term Debt, net

Long-term debt consisted of the following (in thousands):

​

​

​

​

​

​

​

​

​

Balance as of

​

Balance as of

Credit Facility

    

December 31, 2021

    

December 31, 2020

Citibank/Natwest $815 mil. Facility

​

$

774,250

​

​

—

Senior unsecured notes

​

 

300,000

​

​

—

Macquarie Bank $58 mil. Facility

​

 

45,600

​

$

56,000

SinoPac $13.3 mil. Facility

​

 

10,800

​

​

12,800

Eurobank $30.0 mil. Facility

​

​

21,375

​

​

—

Fair value of debt adjustment

​

​

(9,990)

​

​

(14,304)

The Royal Bank of Scotland $475.5 mil. Facility

​

​

—

​

​

433,412

HSH Nordbank AG - Aegean Baltic Bank - Piraeus Bank $382.5 mil. Facility

​

​

—

​

​

351,759

Citibank $114 mil. Facility

​

​

—

​

​

63,061

Credit Suisse $171.8 mil. Facility

​

​

—

​

​

101,254

Citibank – Eurobank $37.6 mil. Facility

​

​

—

​

​

17,669

Club Facility $206.2 mil.

​

​

—

​

​

124,427

Sinosure Cexim - Citibank - ABN Amro $203.4 mil. Facility

​

 

—

​

​

20,340

Citibank $123.9 mil. Facility

​

​

—

​

​

85,280

Citibank $120 mil. Facility

​

​

—

​

​

93,742

Comprehensive Financing Plan exit fees accrued

​

​

—

​

​

22,660

Total long-term debt

​

$

1,142,035

​

$

1,368,100

Less: Deferred finance costs, net

​

​

(28,369)

​

​

(25,093)

Less: Current portion

​

​

(95,750)

​

​

(155,662)

Total long-term debt net of current portion and deferred finance cost

​

$

1,017,916

​

$

1,187,345

​

Each of the credit facilities except for Senior unsecured notes are collateralized by first 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, stock pledges and benefits from corporate guarantees. The Company was in compliance with the financial covenants contained in the credit facilities agreements as of December 31, 2021 and December 31, 2020. As of December 31, 2021, fifty-six of the Company’s vessels having a net carrying value of $1,842.7 million as of December 31, 2021, were subject to first preferred mortgages as collateral to the Company’s credit facilities other than Senior unsecured notes.

As of December 31, 2021, there was no remaining borrowing availability under the Company’s credit facilities. The weighted average interest rate on long-term borrowings (including leaseback obligations) for the years ended December 31, 2021, 2020 and 2019 was 4.4%, 4.6% and 6.1%, respectively. Total interest paid (including interest on leaseback obligations) during the years ended December 31, 2021, 2020 and 2019 was $42.8 million, $35.2 million and $54.9 million, respectively. The total amount of interest cost incurred and expensed (including interest on leaseback obligations) in 2021 was $53.1 million (2020: $36.7 million, 2019: $55.2 million).

​

10. Long-Term Debt, net (Continued)

2021 Refinancing

On April 12, 2021, the Company consummated the refinancing of the 2018 Credit Facilities. The Company utilized the proceeds from the new $815 million facility with Citibank/NatWest, the proceeds from the new $135 million sale and leaseback agreement with Oriental Fleet and the net proceeds from the $300 million Senior Notes, to refinance the existing 2018 facilities. The Citibank/Natwest $815 million senior secured credit facility with four-year term is repayable in sixteen quarterly instalments of $20.4 million starting from July 12, 2021 together with a balloon payment of $489.0 million at maturity. The credit facility bears interest at LIBOR plus a margin of 2.50%. The Citibank/Natwest $815 million senior secured credit facility contains a requirement to maintain minimum fair market value of collateral vessels to loan value coverage of 120% and financial covenants requiring to maintain the following:

(i)minimum liquidity of $30.0 million;
(ii)maximum consolidated debt (less cash and cash equivalents) to consolidated EBITDA ratio of 6.5x; and
(iii)minimum consolidated EBITDA to net interest expense ratio of 2.5x.

The Company fully repaid Sinosure Cexim – Citibank – ABN Amro facility on March 18, 2021. The vessels CMA CGM Tancredi, CMA CGM Samson and CMA CGM Bianca previously mortgaged by this facility, together with CMA CGM Melisande and CMA CGM Attila, were refinanced through a new $135 million sale and leaseback arrangement with Oriental Fleet on April 12, 2021. Refer to Note 5 “Fixed Assets, net & Right-of-use Assets”.

On February 11, 2021, the Company issued in a private placement, $300.0 million aggregate principal amount of senior unsecured notes, which bear interest at a fixed rate of 8.50% per annum and mature on March 1, 2028. At any time on or after March 1, 2024, March 1, 2025 and March 1, 2026 the Company may elect to redeem all or any portion of the notes, respectively, at a price equal to 104.25%, 102.125% and 100%, respectively, of the principal amount being redeemed. Prior to March 1, 2024 the Company may redeem up to 35% of the aggregate principal of the notes from equity offering proceeds at a price equal to 108.50% within 90 days after the equity offering closing. Interest payments on the notes are payable semi-annually commencing on September 1, 2021. $9.0 million of bond issuance costs were deferred over the life of the bond and recognized through the new effective interest method. Net proceeds from the senior unsecured notes amounting to $294.4 million were placed in an escrow account in February 2021 and on April 12, 2021 were used, together with the net proceeds from the $815 million credit facility and the $135 new sale and leaseback arrangement to refinance the Company’s 2018 Credit Facilities.

Additionally, on July 1, 2021, the Company assumed outstanding principal of a Eurobank facility from Gemini related to the vessels Belita, Leo C and Catherine C. The assumed balance of $23.1 million is payable in thirteen consecutive quarterly instalments and a balloon payment of $13.5 million payable through August 2024 - see also Note 3 “Acquisitions”. This credit facilities’ financial covenants were amended to require the maintenance of the same financial covenants as the Citibank/Natwest $815 million senior secured credit facility.

Accounting for the 2021 Refinancing

The outstanding loan balances, exit fees and deferred financing fees related to the lenders (other than Citibank and Natwest (Royal Bank of Scotland)) under the Company’s 2018 Credit Facilities were fully repaid and accounted for under the extinguishment accounting.

​

10. Long-Term Debt, net (Continued)

The present value of the cash flows for the Citibank and Natwest (Royal Bank of Scotland) facilities were not substantially different from the present value of the remaining cash flows under the terms of the original instruments prior to the debt refinancing for each of the lenders, and, as such, the Company accounted for the debt refinancing as a modification. Legal and other fees related to the refinancing of $2.3 million were recorded in the income statement under the gain on debt extinguishment and $15.6 million of loan arrangement fees were deferred over the life of the facility and recognized through the new effective interest method. Additional fees related to Citibank and Natwest (Royal Bank of Scotland) amounting to $12.0 million at the date of the refinancing, replaced the existing accrued exit fees due under the 2018 Credit Facilities and are payable in eight quarterly instalments. An outstanding amount of $6.0 million is presented under “Other current liabilities” and $3.0 million under “Other long-term liabilities” as of December 31, 2021.

Accumulated accrued interest related to the prior HSH Nordbank AG - Aegean Baltic Bank - Piraeus Bank $382.5 mil. Facility amounting to $75.3 million as of April 12, 2021 and which was fully refinanced, will no longer require any future cash interest payments and therefore, was recognized in the income statement under the gain on debt extinguishment. Accumulated accrued interest related to the Royal Bank of Scotland $475.5 mil. Facility, which was refinanced by the Natwest part of the Citibank/Natwest facility was partially extinguished and accounted for under modification accounting resulting in a gain of $35.6 million related to the accumulated accrued interest that will not require any future cash interest payments. The remaining amount of $33.3 million as of April 12, 2021 will continue to be recognized in the income statement over the remaining life of the original loan as the future interest is paid. The 2021 Refinancing resulted in a total net gain on debt extinguishment of $111.6 million separately recognized in the Consolidated Statement of Income in the year ended December 31, 2021.

2020 Credit Facilities

On April 8, 2020, the vessel owning companies Rewarding International Shipping Inc. and Blackwell Seaways Inc. entered into a loan agreement with Macquarie Bank for an amount up to $24.0 million drew down in full on April 9, 2020 (“the First Tranche”). The loan was used to partially finance the acquisition costs of two acquired vessels Niledutch Lion and Phoebe. Additionally, on December 11, 2020, the vessel owning companies Oceancarrier (No.2) Corp. and Oceancarrier (No.3) Corp. drew down another tranche of the loan amounting to $34.0 million (“the Second Tranche”), which was used to partially finance the acquisition costs of another two acquired vessels Bremen and C Hamburg owned by these vessel owning companies. The loan facility is secured by the liens on these vessels and is guaranteed by Danaos. The loan bears interest at LIBOR plus 3.9% margin for the First Tranche and LIBOR plus 3.75% for the Second Tranche. The First Tranche is repayable in nineteen quarterly instalments starting from September 30, 2020 over a five year period with a balloon payment at maturity amounting to $10.4 million. The Second Tranche is repayable in nineteen quarterly instalments starting from March 31, 2021 over a five year period with a balloon payment at maturity amounting to $15.2 million. This credit facilities’ financial covenants were amended to require the maintenance of the same financial covenants as the Citibank/Natwest $815 million senior secured credit facility. Additionally, it contains quarterly financial covenant requiring the vessel owning companies to maintain maximum loan to fair value of the collateralized vessels cover of 65% or to provide additional securities, if necessary, and to maintain minimum working capital of $1 million per vessel.

On July 2, 2020, the Company’s subsidiary Oceancarrier (No.1) Corp. drew down a loan with SinoPac, which is guaranteed by Danaos, for an amount of $13.3 million. The loan was used to partially finance the acquisition costs of the acquired vessel Charleston owned by this vessel owning company, a lien on which vessel secures this loan agreement. The loan bears interest at LIBOR plus 3.75% margin and is repayable in nineteen quarterly instalments starting three months after the drawn down over a five year period of the loan with a balloon payment at maturity amounting to $3.8 million. This facility contains financial covenant requiring Oceancarrier (No.1) to maintain minimum collateral of the aggregate fair market value of the vessel Charleston or other collateral, if necessary, of at least 120% of the loan balance tested semi-annually.

​

10. Long-Term Debt, net (Continued)

Principal Payments

The scheduled debt maturities of long-term debt subsequent to December 31, 2021 are as follows (in thousands):

​

​

​

​

​

​

​

Principal

Payments due by period ended

    

repayments

December 31, 2022

​

$

95,750

December 31, 2023

​

​

90,700

December 31, 2024

​

​

103,275

December 31, 2025

​

​

562,300

December 31, 2026

​

​

—

Thereafter

​

​

300,000

Total long-term debt

​

$

1,152,025

​
v3.22.0.1
Related Party Transactions
 12 Months Ended
Dec. 31, 2021
Related Party Transactions  
Related Party Transactions

11. Related Party Transactions

Management Services: Pursuant to a ship management agreement between each of the vessel owning companies and Danaos Shipping Company Limited (the “Manager”), the Manager acts as the fleet’s technical manager responsible for (i) recruiting qualified officers and crews, (ii) managing day to day vessel operations and relationships with charterers, (iii) purchasing of stores, supplies and new equipment for the vessels, (iv) performing general vessel maintenance, reconditioning and repair, including commissioning and supervision of shipyards and subcontractors of drydock facilities required for such work, (v) ensuring regulatory and classification society compliance, (vi) performing operational budgeting and evaluation, (vii) arranging financing for vessels, (viii) providing accounting, treasury and finance services and (ix) providing information technology software and hardware in the support of the Company’s processes. The Company’s largest shareholder controls the Manager.

On August 10, 2018, the term of the Company’s 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. Pursuant to the management agreement, the management fees are as follows for the years presented in the Consolidated Statements of Income: i) a daily management fee of $850, ii) a daily vessel management fee of $425 for vessels on bareboat charter and iii) a daily vessel management fee of $850 for vessels on time charter. Additionally, the fee of 1.25% on gross freight, charter hire, ballast bonus and demurrage with respect to each vessel in the fleet and the fee of 0.5% based on the contract price of any vessel bought and sold by the Manager on the Company’s behalf are due to the Manager.

Management fees in 2021 amounted to approximately $19.9 million (2020: $17.7 million, 2019: $16.8 million), which are presented under “General and administrative expenses” in the Consolidated Statements of Income. Commissions to the Manager in 2021 amounted to approximately $10.4 million (2020: $5.7 million, 2019: $5.3 million), which are presented under “Voyage expenses” in the Consolidated Statements of Income. Commission of 0.5% on the contract price of newly acquired vessels in 2021 amounted to approximately $1.3 million (2020: $0.7 million was capitalized to the vessels cost).

The Company pays advances on account of the vessels’ operating expenses. These prepaid amounts are presented in the Consolidated Balance Sheets under “Due from related parties” totaling $21.9 million and $20.4 million as of December 31, 2021 and 2020, respectively. On July 1, 2021, the Company exercised its option to acquire the remaining 51% equity interest in Gemini from Virage International Ltd., a company controlled by the Company’s largest shareholder, for $86.7 million, which was fully paid by November 1, 2021 (refer to Note 3 “Acquisitions”).

​

11. Related Party Transactions (Continued)

The Company employs its executive officers. The executive officers received an aggregate of €1.8 million ($2.1 million) €1.5 million ($1.8 million) and €1.5 million ($1.7 million) for the years ended December 31, 2021, 2020 and 2019, respectively. An amount of $0.1 million and $0.2 million was due to executive officers and is presented under “Accounts payable” in the Consolidated Balance Sheets as of December 31, 2021 and December 31, 2020, respectively. The Company recognized non-cash share-based compensation expense in respect of awards to executive officers of $11.8 million, $1.0 million and $3.6 million in the years ended December 31, 2021, 2020, and 2019, respectively.

Dr. John Coustas, the Chief Executive Officer of the Company, is a member of the Board of Directors of The Swedish Club, the primary provider of insurance for the Company, including a substantial portion of its hull & machinery, war risk and protection and indemnity insurance. During the years ended December 31, 2021, 2020 and 2019 the Company paid premiums to The Swedish Club of $5.2 million, $4.3 million and $4.4 million, respectively, which are presented under “Vessel operating expenses” in the Consolidated Statements of Income. As of December 31, 2021 and 2020, the Company did not have any outstanding balance to The Swedish Club.
v3.22.0.1
Taxes
 12 Months Ended
Dec. 31, 2021
Taxes  
Taxes

12. Taxes

Under the laws of the countries of the Company’s ship owning subsidiaries’ incorporation and/or vessels’ registration, the Company’s ship operating subsidiaries are not subject to tax on international shipping income, however, they are subject to registration and tonnage taxes, which have been included under “Vessel operating expenses” in the accompanying Consolidated Statements of Income.

Pursuant to the U.S. Internal Revenue Code (the “Code”), U.S.-source income from the international operation of ships is generally exempt from U.S. tax if the company operating the ships meets certain requirements. Among other things, in order to qualify for this exemption, the company operating the ships must be incorporated in a country which grants an equivalent exemption from income taxes to U.S. corporations.

All of the Company’s ship-operating subsidiaries satisfy these initial criteria. In addition, these companies must be more than 50% owned by individuals who are residents, as defined, in the countries of incorporation or another foreign country that grants an equivalent exemption to U.S. corporations. These companies satisfied the more than 50% beneficial ownership requirement for 2021. In addition, should the beneficial ownership requirement not be met, the management of the Company believes that by virtue of a special rule applicable to situations where the ship operating companies are beneficially owned by a publicly traded company like the Company, the more than 50% beneficial ownership requirement can also be satisfied based on the trading volume, the Company’s shareholder composition and the anticipated widely-held ownership of the Company’s shares, but no assurance can be given that this will be the case or remain so in the future, since continued compliance with this rule is subject to factors outside of the Company’s control. Income taxes comprised of $5.9 million taxes withheld on dividend income earned on the Company’s investments in the year ended December 31, 2021.
v3.22.0.1
Financial Instruments
 12 Months Ended
Dec. 31, 2021
Financial Instruments  
Financial Instruments

13. Financial Instruments

The following is a summary of the Company’s risk management strategies and the effect of these strategies on the Company’s 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. The interest rates relating to the long-term loans are disclosed in Note 10, “Long-term Debt, net”.

​

13. Financial Instruments (Continued)

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. Refer to Note 14, “Operating Revenue”, for further details on revenue from significant clients. 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 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 approximate the recorded values, generally due to their variable interest rates. The fair value of available for sale securities is estimated based on weighted combination of (1) a yield-to-maturity analysis based on a quoted (non-binding) price from a third party broker, (2) a yield-to-maturity analysis of a similar bond(s) in an active market, (3) the available market data for yield-to-maturity for the corporate bonds, if available and (4) if applicable, redemption information announced by the issuer of the security. The fair value of the equity participation in ZIM is measured based on the closing price of ZIM ordinary shares on the NYSE. The Company is exposed to changes in fair value of available for sale securities as there is no hedging strategy.

Interest Rate Swaps: 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 $3.6 million was reclassified into earnings for each of the years ended December 31, 2021, 2020 and 2019, respectively, representing amortization over the depreciable life of the vessels. An amount of $3.6 million is expected to be reclassified into earnings within the next 12 months.

Fair Value of Financial Instruments

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

As of December 31, 2021

​

As of December 31, 2020

​

    

Book Value

    

Fair Value

    

Book Value

    

Fair Value

​

​

(in thousands of $)

Cash and cash equivalents

​

$

129,410

​

$

129,410

​

$

65,663

​

$

65,663

Restricted cash (3)

​

$

346

​

$

346

​

​

—

​

​

—

Equity participation ZIM

​

$

423,024

​

$

423,024

​

​

75

​

​

n/a*

ZIM notes

​

​

—

​

​

—

​

$

43,559

​

$

43,559

HMM notes

​

​

—

​

​

—

​

$

19,328

​

$

19,328

Long-term debt, including current portion

​

$

1,142,035

​

$

1,142,035

​

$

1,368,100

​

$

1,368,100

* As of December 31, 2020, there was no readily determinable fair value.

​

13. Financial Instruments (Continued)

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, 2021 (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements

​

​

as of December 31, 2021

​

    

Total

    

(Level I)

    

(Level II)

    

(Level III)

​

​

​

(in thousands of $)

Equity participation ZIM

 

$

423,024

​

$

423,024

 

$

—

​

$

—

​

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, 2021 (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements

​

​

as of December 31, 2021

​

    

Total

    

(Level I)

    

(Level II)

    

(Level III)

​

​

(in thousands of $)

Long-term debt, including current portion(2)

​

$

1,142,035

​

$

—

​

$

1,142,035

​

$

—

​

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, 2020:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

Fair Value Measurements

​

​

as of December 31, 2020

​

    

Total

    

(Level I)

    

(Level II)

    

(Level III)

​

​

(in thousands of $)

ZIM notes(1)

​

$

43,559

​

$

—

​

$

43,559

​

$

—

HMM notes(1)

​

$

19,328

​

$

—

​

$

19,328

​

$

—

​

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, 2020:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements

​

​

as of December 31, 2020

​

    

Total

    

(Level I)

    

(Level II)

    

(Level III)

​

​

(in thousands of $)

Long-term debt, including current portion(2)

​

$

1,368,100

​

$

—

​

$

1,368,100

​

$

—

(1)The fair value is estimated based on a weighted combination of (1) a yield-to-maturity analysis based on a quoted (non-binding) price from a third party broker, (2) a yield-to-maturity analysis of a similar bond(s) in an active market, (3) the available market data for yield-to-maturity for the corporate bonds, if available and (4) if applicable, redemption information announced by the issuer of the security.
(2)Long-term debt, including current portion is presented gross of deferred finance costs of $28.4 million and $25.1 million as of December 31, 2021 and December 31, 2020, 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 credit risk and does not include amounts related to the accumulated accrued interest.
(3)The Company is required to maintain cash on a retention account as collateral for the upcoming scheduled debt repayments related to the Eurobank $30 mil. Facility, which was recorded as restricted cash under current assets as of December 31, 2021.
v3.22.0.1
Operating Revenue
 12 Months Ended
Dec. 31, 2021
Operating Revenue  
Operating Revenue

14. Operating Revenue

Operating revenue from significant customers (constituting more than 10% of total revenue) for the years ended December 31, were as follows:

​

​

​

​

​

​

​

​

​

Charterer

    

2021

    

2020

    

2019

​

CMA CGM

 

30

%  

36

%  

36

%

HMM Korea

 

17

%  

24

%  

24

%

YML

 

—

​

—

​

13

%

​
v3.22.0.1
Operating Revenue by Geographic Location
 12 Months Ended
Dec. 31, 2021
Operating Revenue by Geographic Location  
Operating Revenue by Geographic Location

15. Operating Revenue by Geographic Location

Operating revenue by geographic location of the customers for the years ended December 31, was as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

Continent

    

2021

    

2020

    

2019

Australia—Asia

​

$

323,172

​

$

203,991

​

$

222,328

Europe

​

 

338,124

​

 

242,704

​

 

211,312

America

​

​

28,209

​

​

14,899

​

​

13,604

Total Revenue

​

$

689,505

​

$

461,594

​

$

447,244

​
v3.22.0.1
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2021
Commitments and Contingencies  
Commitments and Contingencies

16. Commitments and Contingencies

On September 1, 2016, Hanjin Shipping, a charterer of eight of the Company’s vessels, referred to the Seoul Central District Court, which issued an order to commence the rehabilitation proceedings of Hanjin Shipping. Hanjin Shipping has cancelled all eight charter party agreements with the Company. On February 17, 2017, the Seoul Central District Court (Bankruptcy Division), declared the bankruptcy of Hanjin Shipping, converting the rehabilitation proceeding to a bankruptcy proceeding. The Seoul Central District Court (Bankruptcy Division) appointed a bankruptcy trustee to dispose of Hanjin Shipping’s remaining assets and distribute the proceeds from the sale of such assets to Hanjin Shipping’s creditors according to their priorities. The Company ceased recognizing revenue from Hanjin Shipping effective from July 1, 2016 onwards. The Company has a total unsecured claim submitted to the Seoul Central District Court for unpaid charter hire, charges, expenses and loss of profit against Hanjin Shipping totaling $597.9 million, which is not recognized in the accompanying Consolidated Balance Sheet as of December 31, 2021 and 2020. On January 20, 2021, the Company received $3.9 million from Hanjin Shipping as a partial payment of a common benefit claim plus interest. This payment is presented under “Other income/(expense), net” in the Company’s Consolidated Statements of Income.

There are no other 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.

See Note 5 “Fixed Assets, Net & Right-of-use Assets” for buyback obligations related to the sale and leaseback arrangements.
v3.22.0.1
Stock Based Compensation
 12 Months Ended
Dec. 31, 2021
Stock Based Compensation  
Stock Based Compensation

17. Stock Based Compensation

As of April 18, 2008, the Board of Directors and the Compensation Committee approved incentive compensation of the 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 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.

On September 14, 2018, the Company granted 298,774 shares of restricted stock to executive officers of the Company, out of which 149,386 restricted shares vested on December 31, 2019 and 149,388 restricted shares vested on December 31, 2021. On May 10, 2019, the Company granted 137,944 shares of restricted stock to certain employees of the Manager (including 35,714 shares to executive officers), out of which 4,168 shares were forfeited in 2019 and 66,888 restricted shares vested on December 31, 2019. In 2020 and 2021, 714 and 1,685 of these shares were forfeited, respectively, and 64,489 restricted shares vested on December 31, 2021. On February 12, 2021, the Company granted 110,000 fully vested shares to executive officers and Board of Directors members. On March 16, 2021, the Company granted 40,000 shares to certain employees of the Manager, out of which 10,000 fully vested on the grant date, 1,050 were forfeited, 9,650 restricted shares vested on December 31, 2021 and the remaining 19,300 restricted shares are scheduled to vest on December 31, 2022. These restricted shares are subject to satisfaction of the vesting terms, under the Company’s 2006 Equity Compensation Plan, as amended. Additionally, on December 10, 2021, the Company granted 110,000 fully vested shares to executive officers and Board of Directors members and on December 21, 2021, the Company granted 10,000 fully vested shares to certain employees of the Manager. The fair value of shares granted was calculated based on the closing trading price of the Company’s shares at the date of the issuance. Stock based compensation expenses of $15.3 million, $1.2 million and $4.2 million were recognized under “General and administrative expenses” in the Company’s Consolidated Statements of Income in the years ended December 31, 2021, 2020 and 2019, respectively. The average price of issued shares was $66.00 per share and $10.70 per share in the years ended December 31, 2021 and December 31, 2019, respectively. 19,300 shares and 215,562 shares of restricted stock are issued and outstanding as of December 31, 2021 and December 31, 2020, respectively.

The aggregate number of shares of common stock for which awards may be granted under the Plan shall not exceed 1,000,000 shares plus the number of unvested shares granted before August 2, 2019. The equity awards may be granted by the Company’s Compensation Committee or Board of Directors under its amended and restated 2006 equity compensation plan. Awards made under the Plan that have been forfeited, cancelled or have expired, will not be treated as having been granted for purposes of the preceding sentence.

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 2021, 2020 and 2019, none of the directors elected to receive shares as compensation.
v3.22.0.1
Stockholders' Equity
 12 Months Ended
Dec. 31, 2021
Stockholders' Equity  
Stockholders' Equity

18. Stockholders’ Equity

In the year ended December 31, 2021, the Company declared a dividend of $0.50 per share of common stock on each of May 10, 2021, August 2, 2021 and November 8, 2021. The Company paid an aggregated amount of dividends equal to $30.9 million in cash and issued 146 shares of common stock at par value of $0.01 pursuant to its dividends reinvestment plan, at an average price of $72.19 per share.

In October 2020, the Company repurchased 4,339,271 shares of the Company’s common stock for an aggregate purchase price of $31.1 million in privately negotiated transactions, including 2,517,013 shares from the Royal Bank of Scotland and 1,822,258 shares from Sphinx Investment Corp.

In December 2019, the Company completed the sale of 9,418,080 shares of common stock in the public offering raising aggregate proceeds net of underwriting discounts of $54.4 million, including an investment of approximately $17.3 million by DIL. Additionally the Company incurred approximately $0.9 million of related share issuance costs.

On May 2, 2019, the Company effected a 1-for-14 reverse stock split of the issued and outstanding shares of common stock of the Company. All share and per share data disclosed in the accompanying consolidated financial statements give effect to this reverse stock split retroactively, for all periods presented. The reverse stock split reduced the number of the Company’s outstanding shares of common stock from 213,324,455 to 15,237,456 on May 2, 2019 and effected all issued and outstanding shares of common stock. No fractional shares were issued in connection to the reverse stock split. Stockholders who would otherwise hold a fractional share of the Company’s common stock received a cash payment in lieu of such fractional share. The par value and other terms of the Company’s common stock were not affected by the reverse stock split.

On September 14, 2018, the Company granted 298,774 shares of restricted stock to executive officers of the Company, out of which 149,386 restricted shares vested on December 31, 2019 and 149,388 restricted shares vested on December 31, 2021. On May 10, 2019, the Company granted 137,944 shares of restricted stock to certain employees of the Manager (including 35,714 shares to executive officers), out of which 4,168 shares were forfeited in 2019 and 66,888 restricted shares vested on December 31, 2019. In 2020 and 2021, 714 and 1,685 of these shares were forfeited, respectively, and 64,489 restricted shares vested on December 31, 2021. On February 12, 2021, the Company granted 110,000 fully vested shares to executive officers and Board of Directors members. On March 16, 2021, the Company granted 40,000 shares to certain employees of the Manager, out of which 10,000 fully vested on the grant date, 1,050 were forfeited, 9,650 vested on December 31, 2021 and the remaining 19,300 restricted shares are scheduled to vest on December 31, 2022. These restricted shares are subject to satisfaction of the vesting terms, under the Company’s 2006 Equity Compensation Plan, as amended. Additionally, on December 10, 2021, the Company granted 110,000 fully vested shares to executive officers and Board of Directors members and on December 21, 2021, the Company granted 10,000 fully vested shares to certain employees of the Manager. 19,300 shares and 215,562 shares of restricted stock are issued and outstanding as of December 31, 2021 and December 31, 2020, respectively.

As of December 31, 2021, 25,056,009 shares were issued and 20,716,738 shares were outstanding; and 24,788,598 shares were issued and 20,449,327 shares were outstanding and as of December 31, 2020. As of December 31, 2021 and December 31, 2020, 4,339,271 shares were held as Treasury shares. Under the Articles of Incorporation as amended on September 18, 2009, the Company’s authorized capital stock consists of 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.

During 2020 and 2019, the Company did not declare any dividends.

In 2011, the Company issued an aggregate of 15,000,000 warrants to its lenders under the 2011 bank agreement with its lenders and the January 2011 credit facilities to purchase, solely on a cashless exercise basis, an aggregate of 15,000,000 shares of its common stock, which warrants have an exercise price of $7.00 per share. All of these warrants expired on January 31, 2019.
v3.22.0.1
Earnings per Share
 12 Months Ended
Dec. 31, 2021
Earnings per Share  
Earnings per Share

19. Earnings per Share

The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31 (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

    

2021

    

2020

    

2019

Numerator:

​

​

​

​

​

​

​

​

​

Net income

​

$

1,052,841

​

$

153,550

​

$

131,253

Denominator (number of shares in thousands):

​

​

​

​

​

​

​

​

​

Basic weighted average common shares outstanding

​

​

20,345

​

​

23,589

​

​

15,835

Effect of dilutive securities:

​

​

​

​

​

​

​

​

​

Share based compensation

​

 

239

​

 

216

​

 

386

Diluted weighted average common shares outstanding

​

​

20,584

​

​

23,805

​

​

16,221

​

The issued and outstanding 15,000,000 warrants to purchase shares of the Company’s common stock (on a pre-split basis), which expired in January 2019, were excluded from the diluted earnings per share for the year ended December 31, 2019, because they were antidilutive.

​

Basic and diluted earnings per share amount related to the gain on debt extinguishment of $111.6 million recorded on the debt refinancing in the year ended December 31, 2021 (see Note 10) are $5.49 and $5.42, respectively.
v3.22.0.1
Subsequent Events
 12 Months Ended
Dec. 31, 2021
Subsequent Events  
Subsequent Events

20. Subsequent Events

On January 17, 2022, the Company entered into an agreement to sell its two vessels Catherine C and Leo C for gross consideration of $130 million. The vessels are expected to be delivered to the buyer in November 2022.

On February 7, 2022, the Company declared a dividend of $0.75 per share of common stock amounting to $15.5 million, which was paid on February 28, 2022, to holders of record on February 17, 2022.
v3.22.0.1
Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2021
Significant Accounting Policies  
Principles of Consolidation

Principles of Consolidation: The accompanying consolidated financial statements 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 obtained by the Company.

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 accounting guidance, if it determines that it is the primary beneficiary. 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.

Inter-company transaction balances and unrealized gains/(losses) on transactions between the companies are eliminated.
Investments in affiliates

Investments in affiliates: The Company’s investments in affiliates are accounted for using the equity method of accounting. Under the equity method of accounting, investments are stated at initial cost and are adjusted for subsequent additional investments and the Company’s proportionate share of earnings or losses and distributions. The Company evaluates its investments in affiliates for impairment when events or circumstances indicate that the carrying value of such investments may have experienced other than temporary decline in value below their carrying value. If the estimated fair value is less than the carrying value and is considered an other than temporary decline, the carrying value is written down to its estimated fair value and the resulting impairment is recorded in the Consolidated Statements of Income.
Use of Estimates

Use of Estimates: The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. On an on-going basis, management evaluates the estimates and judgments, including those related to the selection of useful lives for tangible assets, expected future cash flows from long-lived assets to support impairment tests, provisions necessary for accounts receivables, provisions for legal disputes, and contingencies. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates under different assumptions and/or conditions.
Reclassifications in Other Comprehensive Income/(Loss)

Reclassifications in Other Comprehensive Income/(Loss): The Company had the following reclassifications out of Accumulated Other Comprehensive Loss during the years ended December 31, 2021, 2020 and 2019, respectively (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year ended December 31, 

​

    

Location of Reclassification into Income

    

2021

    

2020

    

2019

Amortization of deferred realized
losses on cash flow hedges

​

Loss on derivatives

​

$

3,622

​

$

3,632

​

$

3,622

Reclassification to interest income

 

Interest income

 

​

(9,211)

 

​

—

 

​

—

Total Reclassifications

​

​

​

$

(5,589)

​

$

3,632

​

$

3,622
Foreign Currency Translation

Foreign Currency Translation: The functional currency of the Company is the U.S. dollar. The Company engages in worldwide commerce with a variety of entities. Although its operations may expose it to certain levels of foreign currency risk, its transactions are predominantly U.S. dollar denominated. Additionally, the Company’s wholly-owned vessel subsidiaries transacted a nominal amount of their operations in Euros; however, all of the subsidiaries’ primary cash flows are U.S. dollar denominated. Transactions in currencies other than the functional currency are translated at the exchange rate in effect at the date of each transaction. Differences in exchange rates during the period between the date a transaction denominated in a foreign currency is consummated and the date on which it is either settled or translated, are recognized in the Consolidated Statements of Income. The foreign currency exchange gains/(losses) recognized in the accompanying Consolidated Statements of Income for each of the years ended December 31, 2021, 2020 and 2019 were $0.2 million loss $0.4 million loss and $0.2 million loss, respectively, and are presented under “Vessel operating expenses” in the Consolidated Statements of Income.
Cash and Cash Equivalents

Cash and Cash Equivalents: Cash and cash equivalents consist of interest bearing call deposits, where the Company has instant access to its funds and withdrawals and deposits can be made at any time, as well as time deposits with original maturities of three months or less which are not restricted for use or withdrawal. Cash and cash equivalents of $129.4 million as of December 31, 2021 (December 31, 2020: $65.7 million) comprised cash balances and short-term deposits.
Restricted Cash

Restricted Cash: Cash restricted accounts include retention accounts and any cash that is legally restricted as to withdrawal or usage. The Company is required to maintain cash on a retention account as collateral for the upcoming scheduled debt repayments related to the Eurobank $30 mil. Facility. On the rollover settlement date, both principal and interest are paid from the retention account. Refer to Note 4, “Cash, Cash Equivalents and Restricted Cash”.
Accounts Receivable, Net

Accounts Receivable, Net: The amount shown as Accounts Receivable, net, at each balance sheet date includes estimated recoveries from charterers for hire from operating leases accounted for in accordance with Topic 842 and demurrage billings, net of a provision for doubtful accounts. Accounts receivable are short term in duration as payments are expected to be received within one year. At each balance sheet date, all potentially uncollectible accounts are assessed individually for purposes of determining the appropriate provision for doubtful accounts based on the Company’s history of write-offs, level of past due accounts based on the contractual term of the receivables and its relationships with and economic status of its customers. Bad debts are written off in the period in which they are identified.
Insurance Claims

Insurance Claims: Insurance claims represent the claimable expenses, net of deductibles, which are expected to be recovered from insurance companies. Any costs to complete the claims are included in accrued liabilities. The Company accounts for the cost of possible additional call amounts under its insurance arrangements in accordance with the accounting guidance for contingencies based on the Company’s historical experience and the shipping industry practices. Insurance claims are included in the consolidated balance sheet line item “Other current assets”.
Prepaid Expenses and Inventories

Prepaid Expenses and Inventories: Prepaid expenses consist mainly of insurance expenses, and inventories consist of bunkers, lubricants and provisions remaining on board the vessels at each period end, which are valued at cost as determined using the first-in, first-out method. Costs of spare parts are expensed as incurred.
Deferred Financing Costs Deferred Financing Costs: Loan arrangement fees incurred for obtaining new loans, for loans that have been accounted for as modified and the fees paid to third parties for loans that have been accounted for as extinguished, where there is a replacement debt and the lender remains the same, are deferred and amortized over the loans’ respective repayment periods using the effective interest rate method and are presented in the consolidated balance sheets as a direct deduction from the carrying amount of debt liability. Unamortized deferred financing costs for extinguished facilities are written-off. Loan arrangement fees related to the facilities accounted for under troubled debt restructuring with future undiscounted cash flows greater than the net carrying value of the original debt are capitalized and amortized over the loan respective repayment period using the effective interest rate method. Additionally, amortization of deferred finance costs is included in interest expenses in the Consolidated Statements of Income.
Fixed Assets

Fixed Assets: Fixed assets consist of vessels. Vessels are stated at cost, less accumulated depreciation. The cost of vessels consists of the contract purchase price and any material expenses incurred upon acquisition (improvements and delivery expenses). Subsequent expenditures for conversions and major improvements are also capitalized when they appreciably extend the life, increase the earning capacity or improve the efficiency or safety of the vessels. Otherwise, these expenditures are charged to expense as incurred. Interest costs while under construction are included in vessels’ cost.

The Company acquired six vessels in the secondhand market and five vessels from Gemini Shipholdings Corporation (“Gemini”) in 2021 and five vessels in the secondhand market in 2020, all of which were considered to be acquisitions of assets. Following adoption of ASU 2017-01 “Business Combinations (Topic 805)” on January 1, 2018, the Company evaluates if any vessel acquisition in secondhand market constitutes a business or not. When substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the set is not a business. The following assets are considered as a single asset for the purposes of the evaluation (i) a tangible asset that is attached to and cannot be physically removed and used separately from another tangible assets (or an intangible asset representing the right to use a tangible asset); (ii) in place lease intangibles, including favorable and unfavorable intangible assets or liabilities, and the related leased assets.

The Company charters in certain vessels under a long-term sale and leaseback arrangement. The proceeds received by the Company from the buyer-lessor were recognized as a financial leaseback obligation as this arrangement did not qualify for a sale of these vessels. The Company has substantive repurchase obligation of these vessels at the end of the leaseback period or earlier, at the Company’s option, and retains the control over these vessels. Each leaseback payment is allocated between the liability and interest expense to achieve a constant interest rate on the leaseback obligation outstanding. The interest element of the leaseback payment is charged under “Interest expense” in the accompanying Consolidated Statements of Income over the leaseback period.
Time Charters Assumed on Acquisition of Vessels

Time Charters Assumed on Acquisition of Vessels: The Company recognizes separately identified assets and liabilities arising from the market value of time charters assumed at the date of vessel delivery associated with the acquisition of secondhand vessels. When the present value of the contractual cash flows of the time charter assumed is lower than its current fair value, the difference is recorded as unearned revenue. When the opposite occurs the difference is recognized as accrued charter revenue. Such liabilities or assets are amortized as an increase in revenue and reduction of revenue, respectively, over the period of each time charter assumed. Significant assumptions used in calculation of the fair value of the time charters assumed include daily time charter rate prevailing in the market for the similar size of the vessels available before the acquisition for a similar charter durations (including the estimated time charter expiry date). Other assumptions used are the discount rate based on the weighted average cost of capital for the shipping industry close to the acquisition date and the estimated average off-hire rate.
Depreciation

Depreciation: The cost of the Company’s vessels is depreciated on a straight-line basis over the vessels’ remaining economic useful lives after considering the estimated residual value (refer to Note 5, “Fixed Assets, net & Right-of-use Assets”). Management has estimated the useful life of the Company’s vessels to be 30 years from the year built.

Right-of-Use Assets and Finance Lease Obligations

Right-of-Use Assets and Finance Lease Obligations: ASC 842 classifies leases from the standpoint of the lessee as finance leases or operating leases. The determination of whether an arrangement contains a finance lease is based on the substance of the arrangement and is based in accordance with the criteria set such as e.g. transfer of ownership, purchase options, lease duration and present value of lease payments.

Finance leases are accounted for as the acquisition of a right-of use asset and the incurrence of a finance lease obligation by the lessee. On the lease commencement date, a lessee is required to measure and record a lease liability equal to the present value of the remaining lease payments, discounted using the rate of implicit in the lease or if the rate implicit in the lease is not readily determined, at the lessee’s incremental borrowing rate. Subsequently, the lease liability is increased by the interest on the lease liability, determined using effective interest rate that produces a constant periodic discount rate on the remaining balance of the liability, and decreased by the lease payments during the period.

​

2. Significant Accounting Policies (Continued)

A lessee initially measures the right-of-use asset at cost, which consists of: the amount of the initial measurement of the lease liability, any lease payments made to the lessor at or before the commencement date, minus any lease incentives received and any initial direct cost incurred by the lessee. Subsequently, the right-of-use asset is measured at cost plus payment for leasehold improvement less any accumulated amortization and impairment charges. Amortization expense is calculated and recognized on a straight-line basis over the shorter of the useful life of the asset or the lease term, after considering the estimated residual value of the vessel. The residual value of the vessel is equal to the product of its lightweight tonnage and estimated scrap rate at $300 per ton. Amortization of right-of-use assets is included under “Depreciation and amortization of right-of-use assets” in the Consolidated Statements of Income. However, if the lease transfers ownership of the underlying asset to the lessee or the lessee is reasonably certain to exercise an option to purchase the underlying assets, the lessee shall amortize the right-of-use of asset to the end of the useful life of the underlying asset.

Management has estimated the useful life of the Company’s vessels to be 30 years from the year built.
Vessels held for sale

Vessels held for sale: Vessels are classified as “Vessels held for sale” when all of the following criteria are met: management has committed to a plan to sell the vessel; the vessel is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of vessels; an active program to locate a buyer and other actions required to complete the plan to sell the vessel have been initiated; the sale of the vessel is probable and transfer of the vessel is expected to qualify for recognition as a completed sale within one year; the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Vessels classified as held for sale are measured at the lower of their carrying amount or fair value less cost to sell. These vessels are not depreciated once they meet the criteria to be held for sale.
Accounting for Special Survey and Drydocking Costs

Accounting for Special Survey and Drydocking Costs: The Company follows the accounting guidance for planned major maintenance activities. Drydocking and special survey costs, which are reported in the balance sheet within “Deferred charges, net”, include planned major maintenance and overhaul activities for ongoing certification including the inspection, refurbishment and replacement of steel, engine components, electrical, pipes and valves, and other parts of the vessel. The Company follows the deferral method of accounting for special survey and drydocking costs, whereby actual costs incurred are deferred and amortized on a straight-line basis over the period until the next scheduled survey and drydocking, 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.

The amortization periods reflect the estimated useful economic life of the deferred charge, which is the period between each special survey and drydocking.

Costs incurred during the drydocking period relating to routine repairs and maintenance are expensed. The unamortized portion of special survey and drydocking costs for vessels sold is included as part of the carrying amount of the vessel in determining the gain/(loss) on sale of the vessel.
Pension and Retirement Benefit Obligations-Crew

Pension and Retirement Benefit Obligations-Crew: The crew on board the companies’ vessels serve in such capacity under short-term contracts (usually up to seven months) and accordingly, the vessel-owning companies are not liable for any pension or post-retirement benefits.
Dividends

Dividends: Dividends, if any, are recorded in the Company’s financial statements in the period in which they are declared by the Company’s board of directors.
Impairment of Long-lived Assets

Impairment of Long-lived Assets: The accounting standard for impairment of long-lived assets requires that long-lived assets and certain identifiable intangibles held and used or disposed of by an entity be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If any such indication exists, the Company performs step one of the impairment test by comparing the undiscounted projected net operating cash flows for each vessel to its carrying value. In the case of a vessel held and used, if the future net undiscounted cash flows are less than the carrying value of the vessel, the Company performs step two of impairment assessment by comparing the vessel’s fair value to its carrying value and an impairment loss is recorded equal to the difference between the vessel’s carrying value and fair value.

As of December 31, 2021, the Company concluded that no events and circumstances triggered the existence of potential impairment of its vessels. As of December 31, 2020 and 2019, the Company concluded that events and circumstances triggered the existence of potential impairment of some of its vessels. These indicators included volatility in the charter market and the vessels’ market values, as well as the potential impact the current marketplace may have on its future operations. As a result, the Company performed step one of the impairment assessment for some of the Company’s vessels by comparing the undiscounted projected net operating cash flows for each vessel to its carrying value. The Company’s strategy is to charter its vessels under multi-year, fixed rate period charters that have the initial terms ranging from less than 1 to 18 years for vessels in its fleet, providing the Company with contracted stable cash flows. The Company used number of factors and assumptions in its undiscounted projected net operating cash flow analysis included, among others, operating revenues, off-hire revenues, drydocking costs, operating expenses and management fees estimates. Revenue assumptions were based on contracted time charter rates up to the end of life of the current contract of each vessel as well as the estimated time charter equivalent rates for the remaining life of the vessel after the completion of its current contract for non-contracted revenue days. The estimated daily time charter equivalent rate used for the non-contracted revenue days of each vessel is considered a significant assumption. Recognizing that the container transportation industry is cyclical and subject to significant volatility based on factors beyond the Company’s control, management believes that the most recent 5 to 15 years historical average time charter rates represent a reasonable benchmark for the estimated time charter equivalent rates for the non-contracted revenue days, as such averages take into account the volatility and cyclicality of the market. In addition, the Company used an annual operating expenses escalation factor and estimates of scheduled and unscheduled off-hire revenues based on historical experience. All estimates used and assumptions made were in accordance with the Company’s internal budgets and historical experience of the shipping industry.

As at December 31, 2020 and 2019, the Company’s assessment concluded that step two of the impairment analysis was not required for any vessel, as the undiscounted projected net operating cash flows of all vessels exceeded the carrying value of the respective vessels. As of December 31, 2020 and 2019, no impairment loss was identified.

Business Combinations

Business Combinations: The Company allocates the purchase price of acquisitions to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition date. The excess of the acquisition price over those estimated fair values is recorded as goodwill. Changes to the acquisition date provisional fair values prior to the end of the measurement period are recorded as adjustments to the associated goodwill. Acquisition related expenses and restructuring costs, if any, are expensed as incurred.
Investments in Debt Securities

Investments in Debt Securities: Available for sale securities are carried at fair value with net unrealized gain/(loss) included in accumulated other comprehensive income/(loss), subject to impairment. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. Interest income, including amortization of premiums and accretion of discounts are recognized in the interest income in the Consolidated Statements of Income. Upon sale, realized gain/(loss) is recognized in the Consolidated Statement of Income based on specific identification method. The Company adopted ASU 2016-13 “Financial Instruments – Credit Losses (Topic 326)” on January 1, 2020. Management evaluates securities for impairment on a quarterly basis. An investment is considered impaired if the fair value of the investment is less than its amortized cost. Consideration is given to: i) if the Company intends to sell the security (that is, it has decided to sell the security); ii) it is more likely than not that the Company will be required to sell the security before the recovery of its entire amortized cost basis; or iii) a credit loss exists. If it is determined that the Company intends to sell the security or it is more likely than not that the Company will be required to sell the securities before the recovery of its entire amortized cost basis, the impairment loss, difference between the fair value and amortized cost basis of the securities, will be recorded in the accompanying Consolidated Statements of Income.

2. Significant Accounting Policies (Continued)

The fair value of debt securities is estimated based on a weighted combination of (1) a yield-to-maturity analysis based on a quoted (non-binding) price from a third party broker, (2) a yield-to-maturity analysis of a similar bond(s) in an active market, (3) the available market data for yield-to-maturity for the corporate bonds, if available and (4) if applicable, redemption information announced by the issuer of the security. The weightings and the yield-to-maturities used in the calculation of fair value of the debt securities are assumptions that require significant management judgment.

When the securities are impaired at the reporting date, and the Company does not meet the guidance for intending to sell or more likely than not being required to sell the securities before the amortized cost basis is recovered, the Company determines whether the impairment is related to credit or non-credit factors. To determine the amount of impairment related to credit, the Company compares the present value of the cash flows expected to be collected on the securities with the amortized cost basis of the securities. If the present value of cash flows expected to be collected is less than the securities’ amortized cost basis, the difference is recorded as an allowance for credit losses in the accompanying Consolidated Statements of Income. Any remaining difference between the securities’ fair value and amortized cost basis is considered to be non-credit related impairment and is recorded in the accompanying Consolidated Statements of Other Comprehensive Income.
Investments in Equity Securities

Investments in Equity Securities: Following the adoption of ASU 2016-01 “Recognition and measurement of Financial Assets and Financial Liabilities” on January 1, 2018, the Company measured the investment in ZIM equity securities at cost, less impairment, adjusted for subsequent observable price changes. ZIM equity securities did not have readily determinable fair value until January 27, 2021 when ZIM completed its initial public offering and listing on the New York Stock Exchange of its ordinary shares. Since then ZIM equity securities are valued based on the closing price of ZIM ordinary shares on the New York Stock Exchange at each balance sheet date and unrealized gain/(loss) is recognized in each relevant period. Realized gain/(loss) is recognized on sale of the shares as a difference between the net sale proceeds and original cost less impairment. Realized and unrealized gains/(losses) as well as dividends received on these shares, net of withholding tax, are reflected under “Gain on investments” in the Consolidated Statements of Income.

Management evaluates the equity security for other than temporary impairment on a quarterly basis. An investment is considered impaired if the fair value of the investment is less than its cost. Consideration is given to significant deterioration in the earnings performance, credit rating, asset quality, or business prospects of the investee, significant adverse change in the regulatory, economic, or technological environment of the investee, significant adverse change in the general market condition of either the geographic area or the industry in which the investee operates, as well as factors that raise significant concerns about the investee’s ability to continue as a going concern, such as negative cash flows from operations, working capital deficiencies, or noncompliance with statutory capital requirements or debt covenants.
Accounting for Revenue and Expenses

Accounting for Revenue and Expenses: The Company derives its revenue from time charters and bareboat charters of its vessels, each of which contains a lease. These charters involve placing the specified vessel at charterers’ use for a specified rental period of time in return for the payment of specified daily hire rates. Most of the charters include options for the charterers to extend their terms. Under a time charter, the daily hire rate includes lease component related to the right of use of the vessel and non-lease components primarily related to the operating expenses of the vessel incurred by the Company such as commissions, vessel operating expenses: crew expenses, lubricants, certain insurance expenses, repair and maintenance, spares, stores etc. and vessel management fees. Under a bareboat charter, the daily hire rate includes only lease component related to the right of use of the vessel. The revenue earned based on time charters is not negotiated in separate components. Revenue from the Company’s time charters and bareboat charters of vessels is accounted for as operating leases on a straight line basis based on the average fixed rentals over the minimum fixed rental period of the time charter and bareboat charter agreements, as service is performed.

The Company elected the practical expedient which allows the Company to treat the lease and non-lease components as a single lease component for the leases where the timing and pattern of transfer for the nonlease component and the associated lease component to the lessees are the same and the lease component, if accounted for separately, would be classified as an operating lease. The combined component is therefore accounted for as an operating lease under ASC 842, as the lease components are the predominant characteristics, in 2021, 2020 and 2019.

2. Significant Accounting Policies (Continued)

The Company adopted the new “Leases” standard (Topic 842) on January 1, 2019 using the modified retrospective method. The Company elected the practical expedient to use the effective date of adoption as the date of initial application. Furthermore the Company elected practical expedients, which allow entities (i) to not reassess whether any expired or existing contracts are considered or contain leases; (ii) to not reassess the lease classification for any expired or existing leases (iii) to not reassess initial direct costs for any existing leases and (iv) which allows to treat the lease and non-lease components as a single lease component due to its predominant characteristic. The adoption of this standard did not have a material effect on the consolidated financial statements since the Company is primarily a lessor and the accounting for lessors is largely unchanged under this standard.
Voyage Expenses

Voyage Expenses: Voyage expenses include port and canal charges, bunker (fuel) expenses (bunker costs are normally covered by the Company’s charterers, except in certain cases such as vessel re-positioning), address commissions and brokerage commissions. Under multi-year time charters and bareboat charters, such as those on which the Company charters its containerships and under short-term time charters, the charterers bear the voyage expenses other than brokerage and address commissions. As such, voyage expenses represent a relatively small portion of the vessels’ overall expenses.
Vessel Operating Expenses

Vessel Operating Expenses: Vessel operating expenses include crew wages and related costs, the cost of insurance, expenses for repairs and maintenance, the cost of spares and consumable stores, tonnage taxes and other miscellaneous expenses. Aggregate expenses increase as the size of the Company’s fleet increases. Under multi-year time charters, the Company pays for vessel operating expenses. Under bareboat charters, the Company’s charterers bear most vessel operating expenses, including the costs of crewing, insurance, surveys, drydockings, maintenance and repairs.
General and administrative expenses

General and administrative expenses: General and administrative expenses include management fees paid to the vessels’ manager (refer to Note 11, “Related Party Transactions”), audit fees, legal fees, board remuneration, executive officers compensation, directors & officers insurance and stock exchange fees.
Repairs and Maintenance

Repairs and Maintenance: All repair and maintenance expenses are charged against income when incurred and are included in vessel operating expenses in the accompanying Consolidated Statements of Income.

Income taxes: Income taxes comprise of taxes withheld on dividend income earned on the Company’s investments.
Troubled Debt Restructuring and Accumulated Accrued Interest

Troubled Debt Restructuring and Accumulated Accrued Interest: Prior to the finalization of the 2018 Refinancing (refer to Note 10, “Long-Term Debt, Net”), the Company concluded that it was experiencing financial difficulty and that certain of the lenders granted a concession (as part of the Refinancing). The Company was experiencing financial difficulty primarily as a result of the projected cash flows not being sufficient to service the balloon payment due as of December 31, 2018 without restructuring and the Company was not able to obtain funding from sources other than existing creditors at an effective interest rate equal to the current market interest rate for similar debt. As a result, the accounting guidance for troubled debt restructuring (“TDR”) was applied at the Closing Date. The TDR accounting guidance required the Company to record the value of the new debt to its restructured undiscounted cash flows over the life of the loan, including cash flows associated with the remaining scheduled interest and principal payments not to exceed the carrying amount of the original debt. In cases in which the recorded value of the debt instrument exceeds the sum of undiscounted future cash flows to be received under the restructured debt instrument, the recorded value is reduced to the sum of undiscounted future cash flows, and a gain is recorded. As a result of the TDR accounting, the interest expense related to the future periods on certain facilities was recognized under the accumulated accrued interest line in the Balance Sheet. Interest payments relating to the future interest recognized in accumulated accrued interest, are recognized as a reduction to the accumulated accrued interest payable when these are paid. As a result, these interest payments are not recorded as interest expense. Following the refinancing of the related loan facilities and to the extent these facilities are extinguished and should no future cash interest payments will be required, the accumulated accrued interest related to these loan facilities is recognized under the gain on debt extinguishment in the Consolidated Statements of Income.

​

2. Significant Accounting Policies (Continued)

When interest rates change, actual cash flows will differ from the cash flows measured on the Refinancing closing date. The accounting treatment for changes in cash flows due to changes in interest rates depends on whether there is an increase or a decrease from the spot interest rate used in the initial TDR accounting (“threshold interest rate”). Fluctuations in the effective interest rate after the Refinancing from changes in the interest rate or other cause are accounted for as changes in estimates in the periods in which these changes occur. Upon an increase in the interest rates from the threshold interest rate used to calculate accumulated accrued interest payable, the Company recognizes additional interest expenses in the period the expense is incurred. The additional interest expense is calculated by multiplying the difference between the current interest rate and the threshold interest rate with the current carrying value of the debt. A gain due to decrease in interest rates (‘interest windfall’) will not be recognized until the debt facilities have been settled and there are no future interest payments. In case there are subsequent increases in interest rates above the threshold interest rate after a previous decrease in interest rates, the carrying amount of the accumulated accrued interest will be reduced by the interest payments in excess of the threshold interest rate until the prior interest windfall due to decrease in the interest rates is recaptured on a cumulative basis.

The Paid-in-kind interest (“PIK interest”) related to each period will increase the carrying value of the loan facility and correspondingly decrease the carrying value of the accumulated accrued interest. PIK interest in excess of the amount recognized in the accumulated accrued interest is expensed in the period the expense is incurred.
Going Concern

Going Concern: The management of the Company assesses the Company’s ability to continue as a going concern at each period end. The assessment evaluates whether there are conditions that give rise to substantial doubt to continue as a going concern within one year from the consolidated financial statements issuance date.

If a substantial doubt to continue as a going concern is identified and after considering management’s plans this substantial doubt is alleviated the Company discloses the following: (i) principal conditions or events that raised substantial doubt about the Company’s ability to continue as a going concern (before consideration of management’s plans), (ii) management’s evaluation of the significance of those conditions or events in relation to the Company’s ability to meet its obligations, (iii) management’s plans that alleviated substantial doubt about the Company’s ability to continue as a going concern.

If a substantial doubt to continue as a going concern is identified and after considering management’s plans this substantial doubt is not alleviated the Company discloses the following: (i) a statement indicating that there is substantial doubt about the Company’s ability to continue as a going concern, (ii) principal conditions or events that raised substantial doubt about the Company’s ability to continue as a going concern, (iii) management’s evaluation of the significance of those conditions or events in relation to the Company’s ability to meet its obligations, and (iv) management’s plans that are intended to mitigate the conditions or events that raised substantial doubt about the Company’s ability to continue as a going concern.

The Company updates the going concern disclosure in subsequent periods until the period in which substantial doubt no longer exists disclosing how the relevant conditions or events that raised substantial doubt were resolved.
Segment Reporting

Segment Reporting: The Company reports financial information and evaluates its operations by total charter revenues. Although revenue can be identified for different types of charters, management does not identify expenses, profitability or other financial information for different charters. As a result, management, including the chief operating decision maker, reviews operating results solely by revenue per day and operating results of the fleet, and thus the Company has determined that it has only one operating and reportable segment.
Derivative Instruments

Derivative Instruments: The Company entered into interest rate swap contracts to create economic hedges for its interest rate risks. The Company recorded these financial instruments at their fair value. When such derivatives do not qualify for hedge accounting, changes in their fair value are recorded in the Consolidated Statement of Income. When the derivatives do qualify for hedge accounting, depending upon the nature of the hedge, changes in the fair value of derivatives are either offset against the fair value of assets, liabilities or firm commitments through income, or recognized in other comprehensive income (effective portion) and are reclassified to earnings when the hedged transaction is reflected in earnings. The ineffective portion of a derivative’s change in fair value is immediately recognized in income.

2. Significant Accounting Policies (Continued)

At the inception of the transaction, the Company documents the relationship between hedging instruments and hedged items, as well as its risk management objective and the strategy for undertaking various hedging transactions. The Company also documents its assessment, both at the hedge inception and on an ongoing basis, of whether the derivative financial instruments that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items.

On July 1, 2012, the Company elected to prospectively de-designate fair value and cash flow interest rate swaps for which it was obtaining hedge accounting treatment due to the compliance burden associated with this accounting policy. As a result, all changes in the fair value of the Company’s cash flow interest rate swap agreements were recorded in earnings under “Loss on derivatives” from the de-designation date forward.

The Company evaluated whether it is probable that the previously hedged forecasted interest payments are probable to not occur in the originally specified time period. The Company has concluded that the previously hedged forecasted interest payments are probable of occurring. Therefore, unrealized gains or losses in accumulated other comprehensive loss associated with the previously designated cash flow interest rate swaps will remain frozen in accumulated other comprehensive loss and recognized in earnings when the interest payments will be recognized. If such interest payments were to be identified as being probable of not occurring, the accumulated other comprehensive loss balance pertaining to these amounts would be reversed through earnings immediately.

The Company does not use financial instruments for trading or other speculative purposes.
Earnings Per Share

Earnings Per Share: The Company has presented net earnings per share for all years presented based on the weighted average number of outstanding shares of common stock of Danaos Corporation at the reported periods. Diluted earnings per share reflect the potential dilution that would occur if securities or other contracts to issue common stock were exercised. The warrants issued in 2011 and which expired in January 2019 were excluded from the diluted earnings per share for the year ended December 31, 2019, because they were antidilutive. Unvested shares of restricted stock are included in the calculation of the diluted earnings per share, unless considered antidilutive, based on the weighted average number of shares of restricted stock outstanding during the period.
Treasury Stock

Treasury Stock: The Company recognizes treasury stock based on the price paid to repurchase its shares, including direct costs to acquire treasury stock. Treasury stock is recorded as a reduction from common stock at its par value and the price paid in excess of par value and direct costs, if any, as a reduction from additional paid-in capital. Treasury stock is excluded from average common shares outstanding for basic and diluted earnings per share.
Equity Compensation Plan

Equity Compensation Plan: The Company has adopted an equity compensation plan (the “Plan”) in 2006 (as amended on August 2, 2019), which is generally administered by the compensation committee of the Board of Directors. The Plan allows the plan administrator to grant awards of shares of common stock or the right to receive or purchase shares of common stock to employees, directors or other persons or entities providing significant services to the Company or its subsidiaries. The actual terms of an award will be determined by the plan administrator and set forth in written award agreement with the participant. Any options granted under the Plan will be accounted for in accordance with the accounting guidance for share-based compensation arrangements.

The aggregate number of shares of common stock for which awards may be granted under the Plan shall not exceed 1,000,000 shares plus the number of unvested shares granted before August 2, 2019. Awards made under the Plan that have been forfeited, cancelled or have expired, will not be treated as having been granted for purposes of the preceding sentence. Unless otherwise set forth in an award agreement, any awards outstanding under the Plan will vest immediately upon a “change of control”, as defined in the Plan. Refer to Note 17, “Stock Based Compensation”.

​

2. Significant Accounting Policies (Continued)

As of April 18, 2008, the Company established the Directors Share Payment Plan (“Directors Plan”). The purpose of the Directors 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. Each member of the Board of Directors of the Company may participate in the Directors Plan. Pursuant to the terms of the Directors Plan, Directors may elect to receive in Common Stock all or a portion of their compensation. On the last business day of each quarter, the rights of common stock are credited to each Director’s Share Payment Account. Following December 31st of each year, the Company will deliver to each Director the number of shares represented by the rights credited to their Share Payment Account during the preceding calendar year. Refer to Note 17, “Stock Based Compensation”.

As of April 18, 2008, the Board of Directors and the Compensation Committee approved the Company’s ability to provide, from time to time, incentive compensation to the employees of Danaos Shipping Company Limited (the “Manager”), in the form of free shares of the Company’s common stock under the Plan. Prior approval is required by the Compensation Committee and the Board of Directors. The plan was effective since 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 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. Refer to Note 17, “Stock Based Compensation”.

v3.22.0.1
Basis of Presentation and General Information (Tables)
 12 Months Ended
Dec. 31, 2021
Basis of Presentation and General Information  
Schedule of the vessel owning companies (the "Danaos Subsidiaries")

1. Basis of Presentation and General Information (Continued)

As of December 31, 2021, Danaos consolidated the vessel owning companies (the “Danaos Subsidiaries”) listed below. All vessels are container vessels:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year

​

​

Company

    

Date of Incorporation

    

Vessel Name

    

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

 

Hyundai Smart

 

2012

 

13,100

Megacarrier (No. 4) Corp.

​

September 10, 2007

 

Hyundai Speed

 

2012

 

13,100

Megacarrier (No. 5) Corp.

​

September 10, 2007

 

Hyundai 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

 

2006

 

9,580

Ramona Marine Co. Ltd.

​

February 27, 2003

 

Le Havre

 

2006

 

9,580

Oceancarrier (No. 2) Corp.

​

October 15, 2020

​

Bremen

​

2009

​

9,012

Oceancarrier (No. 3) Corp.

​

October 15, 2020

​

C Hamburg

​

2009

​

9,012

Blackwell Seaways Inc.

​

January 9, 2020

​

Niledutch Lion

​

2008

​

8,626

Oceancarrier (No. 1) Corp.

​

February 19, 2020

​

Charleston

​

2005

​

8,533

Springer Shipping Co.

​

April 29, 2019

​

Belita

​

2006

​

8,533

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

​

2004

​

8,468

Rewarding International Shipping Inc.

​

October 1, 2019

​

Phoebe

​

2005

​

8,463

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

Kingsland International Shipping Limited

​

June 26, 2015

​

Catherine C

​

2001

​

6,422

Leo Shipping and Trading S.A.

​

October 29, 2015

​

Leo C

​

2002

​

6,422

Actaea Company Limited

​

October 14, 2014

​

Zim Savannah (ex Performance)

​

2002

​

6,402

Asteria Shipping Company Limited

​

October 14, 2014

​

Dimitra C

​

2002

​

6,402

Averto Shipping S.A.

​

June 12, 2015

​

Suez Canal

​

2002

​

5,610

Sinoi Marine Ltd.

​

June 12, 2015

​

Kota Lima (ex Genoa)

​

2002

​

5,544

Oceancarrier (No. 4) Corp.

​

July 6, 2021

​

Wide Alpha

​

2014

​

5,466

Oceancarrier (No. 5) Corp.

​

July 6, 2021

​

Wide Bravo

​

2014

​

5,466

Oceancarrier (No. 6) Corp.

​

July 6, 2021

​

Maersk Euphrates

​

2014

​

5,466

Oceancarrier (No. 7) Corp.

​

July 6, 2021

​

Wide Hotel

​

2015

​

5,466

Oceancarrier (No. 8) Corp.

​

July 6, 2021

​

Wide India

​

2015

​

5,466

Oceancarrier (No. 9) Corp.

​

July 6, 2021

​

Wide Juliet

​

2015

​

5,466

Continent Marine Inc.

​

March 22, 2006

 

Zim Monaco

 

2009

 

4,253

Medsea Marine Inc.

​

May 8, 2006

 

Dalian (ex Zim Dalian)

 

2009

 

4,253

Blacksea Marine Inc.

​

May 8, 2006

 

Zim Luanda

 

2009

 

4,253

Bayview Shipping Inc.

​

March 22, 2006

 

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

 

Seattle C

 

2007

 

4,253

Seacarriers Lines Inc.

​

June 28, 2005

 

Vancouver

 

2007

 

4,253

Containers Services Inc.

​

May 30, 2002

 

Tongala (ex ANL Tongala)

 

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

​

Zebra

​

2001

 

2,602

Sarond Shipping Inc.

​

January 18, 2013

 

Artotina (ex Danae C)

 

2001

 

2,524

Trindade Maritime Company

​

April 10, 2013

​

Amalia C

​

1998

 

2,452

Speedcarrier (No. 7) Corp.

​

December 6, 2007

 

Highway

 

1998

 

2,200

Speedcarrier (No. 6) Corp.

​

December 6, 2007

 

Progress C

 

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-foot equivalent unit, the international standard measure for containers and containership capacity.
v3.22.0.1
Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2021
Significant Accounting Policies  
Schedule of reclassifications out of accumulated other comprehensive loss

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year ended December 31, 

​

    

Location of Reclassification into Income

    

2021

    

2020

    

2019

Amortization of deferred realized
losses on cash flow hedges

​

Loss on derivatives

​

$

3,622

​

$

3,632

​

$

3,622

Reclassification to interest income

 

Interest income

 

​

(9,211)

 

​

—

 

​

—

Total Reclassifications

​

​

​

$

(5,589)

​

$

3,632

​

$

3,622
v3.22.0.1
Acquisitions (Table)
 12 Months Ended
Dec. 31, 2021
Asset Acquisition [Line Items]  
Schedule of vessel owning subsidiaries of Gemini

As of July 1, 2021, the Company fully consolidated the following vessel owning subsidiaries of Gemini:

​

​

​

​

​

​

​

Company

    

Vessel Name

    

Year Built

    

TEU

Averto Shipping S.A.

 

Suez Canal

 

2002

 

5,610

Sinoi Marine Ltd.

 

Kota Lima (ex Genoa)

 

2002

 

5,544

Kingsland International Shipping Limited

 

Catherine C

 

2001

 

6,422

Leo Shipping and Trading S.A.

 

Leo C

 

2002

 

6,422

Springer Shipping Co.

 

Belita

 

2006

 

8,533
Schedule of consideration exchanged and the fair value of assets acquired and liabilities assumed

The following table summarized the consideration exchanged and the fair value of assets acquired and liabilities assumed on July 1, 2021 (in thousands):

​

​

​

​

Purchase price:

    

  

​

Purchase price (51%)

​

$

86,700

Fair value of previously held interest (49%)

​

 

83,300

Total purchase price

​

$

170,000

Fair value of assets and liabilities acquired:

​

 

  

Vessels

​

 

154,500

Right-of-use assets

​

 

82,500

Cash, cash equivalents and restricted cash

​

 

14,388

Current assets

​

 

2,534

Assumed time charter liabilities

​

 

(36,001)

Long-term debt (including current portion)

​

 

(23,125)

Obligations under finance lease

​

 

(21,880)

Current liabilities

​

 

(2,916)

Fair value of net assets acquired

​

$

170,000
Schedule of business acquisition, pro forma information

A condensed summary of the income statement of Gemini presented on a 100% basis is as follows for the periods that the entity was accounted for under the equity method of accounting (in thousands):

​

​

​

​

​

​

​

​

​

​

​

    

Six months ended

    

Year ended

    

Year ended

​

​

June 30, 2021

​

December 31, 2020

​

December 31, 2019

Net operating revenues

​

$

17,984

​

$

31,844

​

$

20,264

Net income

​

$

8,091

​

$

12,873

​

$

3,268
Schedule of aggregate future amortization of the unfavorable charters

​

​

​

​

Amortization for the periods ending:

    

​

​

December 31, 2022

​

$

19,644

Until March 2023

​

 

1,017

Total

​

 

20,661

Less: Current portion

​

 

(19,644)

Total non-current portion

​

$

1,017
Danaos Management Support Pte. Limited  
Asset Acquisition [Line Items]  
Schedule of consideration exchanged and the fair value of assets acquired and liabilities assumed

​

​

​

​

​

Total purchase price

    

$

2,136

Fair value of assets and liabilities acquired:

​

 

  

Cash and cash equivalents

​

 

1,834

Current assets

​

 

829

Current liabilities

​

 

(527)

Fair value of net assets acquired

​

$

2,136
v3.22.0.1
Cash, Cash Equivalents and Restricted Cash (Tables)
 12 Months Ended
Dec. 31, 2021
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

​

    

December 31, 2021

    

December 31, 2020

    

December 31, 2019

Cash and cash equivalents

​

$

129,410

​

$

65,663

​

$

139,170

Restricted cash

​

 

346

​

 

—

​

 

—

Total

​

$

129,756

​

$

65,663

​

$

139,170
v3.22.0.1
Fixed Assets, net & Right-of-use Assets (Tables)
 12 Months Ended
Dec. 31, 2021
Fixed Assets, net & Right-of-use Assets  
Schedule of fixed assets, net

Fixed assets, net consisted of the following (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

Vessel

​

Accumulated 

​

Net Book

​

    

Costs

    

Depreciation

    

Value

As of January 1, 2019

​

$

3,224,253

​

$

(743,924)

​

$

2,480,329

Additions

​

 

6,050

​

 

—

​

 

6,050

Depreciation

​

 

—

​

 

(96,505)

​

 

(96,505)

As of December 31, 2019

​

$

3,230,303

​

$

(840,429)

​

$

2,389,874

Additions

​

 

191,594

​

 

—

​

 

191,594

Depreciation

​

 

—

​

 

(101,531)

​

 

(101,531)

As of December 31, 2020

​

$

3,421,897

​

$

(941,960)

​

$

2,479,937

Additions

​

 

495,546

​

 

—

​

 

495,546

Depreciation

​

 

—

​

 

(113,832)

​

 

(113,832)

As of December 31, 2021

​

$

3,917,443

​

$

(1,055,792)

​

$

2,861,651
Schedule of aggregate future amortization of unfavorable charters

​

​

​

​

Amortization for the periods ending:

    

  

​

December 31, 2022

​

$

36,454

December 31, 2023

​

 

20,806

Until April 2024

​

 

4,534

Total

​

 

61,794

Less: Current portion

​

 

(36,454)

Total non-current portion

​

$

25,340
Schedule of leaseback instalments

The scheduled leaseback instalments subsequent to December 31, 2021 are as follows (in thousands):

​

​

​

​

Instalments due by period ended:

    

​

  

December 31, 2022

​

$

95,772

December 31, 2023

​

​

55,878

December 31, 2024

​

 

56,366

December 31, 2025

​

 

7,209

Until April 2026

​

 

32,777

Total leaseback instalments

​

 

248,002

Less: Imputed interest

​

 

(21,531)

Total leaseback obligation

​

 

226,471

Less: Deferred finance costs, net

​

​

(4,143)

Less: Current leaseback obligation

​

​

(85,815)

Leaseback obligation, net of current portion

​

$

136,513
v3.22.0.1
Deferred Charges, Net (Tables)
 12 Months Ended
Dec. 31, 2021
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, 2019

​

$

13,031

Additions

​

 

7,157

Amortization

​

 

(8,733)

As of December 31, 2019

​

$

11,455

Additions

​

​

16,916

Amortization

​

​

(11,032)

As of December 31, 2020

​

$

17,339

Additions

​

 

4,643

Amortization

​

 

(10,181)

As of December 31, 2021

​

$

11,801
v3.22.0.1
Other Current and Non-current Assets (Tables)
 12 Months Ended
Dec. 31, 2021
Other Current and Non-current Assets  
Schedule ofOther current and non current assets

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

​

​

​

​

​

​

​

​

    

2021

    

2020

Equity participation ZIM

​

$

423,024

​

​

—

Straight-lining of revenue

​

​

18,997

​

$

9,454

Claims receivable

​

​

8,919

​

​

—

Other assets

​

​

8,192

​

​

4,875

Total current assets

​

$

459,132

​

$

14,329

​

​

​

​

​

​

​

Available for sale securities:

​

​

​

​

​

​

ZIM notes, net

​

​

—

​

$

43,559

HMM notes, net

​

​

—

​

​

19,328

Equity participation ZIM

​

​

—

​

​

75

Other assets

​

 

41,739

​

 

20,421

Total non-current assets

​

$

41,739

​

$

83,383
Schedule of available for sale securities at fair value and unrealized losses

​

​

​

​

​

​

​

​

​

​

​

​

Amortized cost

​

​

​

Unrealized

Description of securities

    

basis

    

Fair value

    

gain/(loss)

December 31, 2021

​

​

—

​

​

—

​

​

—

​

​

​

​

​

​

​

​

​

​

December 31, 2020

​

​

​

​

​

​

​

​

​

ZIM notes

​

$

49,871

​

$

43,559

​

$

(6,312)

HMM notes

​

​

24,607

​

​

19,328

​

​

(5,279)

Total

​

$

74,478

​

$

62,887

​

$

(11,591)
Schedule of unrealized loss on available for sale securities

​

​

​

​

​

​

    

Unrealized

​

​

gain/(loss)

​

​

on available for

​

    

sale securities

Balance as of January 1, 2019

​

$

(36,378)

Unrealized loss on available for sale securities

​

​

(1,846)

Balance as of December 31, 2019

 

​

(38,224)

Unrealized gain on available for sale securities

​

​

26,633

Balance as of December 31, 2020

​

$

(11,591)

Gain on available for sale securities

​

​

20,803

Reclassification to interest income

​

 

(9,212)

Balance as of December 31, 2021

​

​

—

​
v3.22.0.1
Accrued Liabilities (Tables)
 12 Months Ended
Dec. 31, 2021
Accrued Liabilities  
Schedule of accrued liabilities

Accrued liabilities consisted of the following (in thousands):

​

​

​

​

​

​

​

​

    

2021

    

2020

Accrued payroll

​

$

1,001

​

$

1,008

Accrued interest

​

 

11,873

​

 

2,137

Accrued dry-docking expenses

​

​

280

​

​

2,177

Accrued expenses

​

 

7,692

​

 

5,638

Total

​

$

20,846

​

$

10,960
v3.22.0.1
Lease Arrangements (Tables)
 12 Months Ended
Dec. 31, 2021
Lease Arrangements  
Schedule of future minimum rentals, expected to be earned on non cancellable time charters

The future minimum rentals, expected to be earned on non-cancellable time charters consisted of the following as of December 31, 2021 (in thousands):

​

​

​

​

2022

    

$

850,851

2023

​

 

753,705

2024

​

 

551,119

2025

​

 

310,347

2026

​

 

204,493

2027 and thereafter

​

 

182,316

Total future rentals

​

$

2,852,831

​
v3.22.0.1
Long-Term Debt, net (Tables)
 12 Months Ended
Dec. 31, 2021
Long-Term Debt, net  
Schedule of long-term debt, net

Long-term debt consisted of the following (in thousands):

​

​

​

​

​

​

​

​

​

Balance as of

​

Balance as of

Credit Facility

    

December 31, 2021

    

December 31, 2020

Citibank/Natwest $815 mil. Facility

​

$

774,250

​

​

—

Senior unsecured notes

​

 

300,000

​

​

—

Macquarie Bank $58 mil. Facility

​

 

45,600

​

$

56,000

SinoPac $13.3 mil. Facility

​

 

10,800

​

​

12,800

Eurobank $30.0 mil. Facility

​

​

21,375

​

​

—

Fair value of debt adjustment

​

​

(9,990)

​

​

(14,304)

The Royal Bank of Scotland $475.5 mil. Facility

​

​

—

​

​

433,412

HSH Nordbank AG - Aegean Baltic Bank - Piraeus Bank $382.5 mil. Facility

​

​

—

​

​

351,759

Citibank $114 mil. Facility

​

​

—

​

​

63,061

Credit Suisse $171.8 mil. Facility

​

​

—

​

​

101,254

Citibank – Eurobank $37.6 mil. Facility

​

​

—

​

​

17,669

Club Facility $206.2 mil.

​

​

—

​

​

124,427

Sinosure Cexim - Citibank - ABN Amro $203.4 mil. Facility

​

 

—

​

​

20,340

Citibank $123.9 mil. Facility

​

​

—

​

​

85,280

Citibank $120 mil. Facility

​

​

—

​

​

93,742

Comprehensive Financing Plan exit fees accrued

​

​

—

​

​

22,660

Total long-term debt

​

$

1,142,035

​

$

1,368,100

Less: Deferred finance costs, net

​

​

(28,369)

​

​

(25,093)

Less: Current portion

​

​

(95,750)

​

​

(155,662)

Total long-term debt net of current portion and deferred finance cost

​

$

1,017,916

​

$

1,187,345
Schedule of debt maturities of long-term debt

The scheduled debt maturities of long-term debt subsequent to December 31, 2021 are as follows (in thousands):

​

​

​

​

​

​

​

Principal

Payments due by period ended

    

repayments

December 31, 2022

​

$

95,750

December 31, 2023

​

​

90,700

December 31, 2024

​

​

103,275

December 31, 2025

​

​

562,300

December 31, 2026

​

​

—

Thereafter

​

​

300,000

Total long-term debt

​

$

1,152,025
v3.22.0.1
Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2021
Financial Instruments  
Schedule of estimated fair values of the financial instruments

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

As of December 31, 2021

​

As of December 31, 2020

​

    

Book Value

    

Fair Value

    

Book Value

    

Fair Value

​

​

(in thousands of $)

Cash and cash equivalents

​

$

129,410

​

$

129,410

​

$

65,663

​

$

65,663

Restricted cash (3)

​

$

346

​

$

346

​

​

—

​

​

—

Equity participation ZIM

​

$

423,024

​

$

423,024

​

​

75

​

​

n/a*

ZIM notes

​

​

—

​

​

—

​

$

43,559

​

$

43,559

HMM notes

​

​

—

​

​

—

​

$

19,328

​

$

19,328

Long-term debt, including current portion

​

$

1,142,035

​

$

1,142,035

​

$

1,368,100

​

$

1,368,100
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 December 31, 2021 (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements

​

​

as of December 31, 2021

​

    

Total

    

(Level I)

    

(Level II)

    

(Level III)

​

​

​

(in thousands of $)

Equity participation ZIM

 

$

423,024

​

$

423,024

 

$

—

​

$

—

​

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, 2021 (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements

​

​

as of December 31, 2021

​

    

Total

    

(Level I)

    

(Level II)

    

(Level III)

​

​

(in thousands of $)

Long-term debt, including current portion(2)

​

$

1,142,035

​

$

—

​

$

1,142,035

​

$

—

​

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, 2020:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

Fair Value Measurements

​

​

as of December 31, 2020

​

    

Total

    

(Level I)

    

(Level II)

    

(Level III)

​

​

(in thousands of $)

ZIM notes(1)

​

$

43,559

​

$

—

​

$

43,559

​

$

—

HMM notes(1)

​

$

19,328

​

$

—

​

$

19,328

​

$

—

​

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, 2020:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements

​

​

as of December 31, 2020

​

    

Total

    

(Level I)

    

(Level II)

    

(Level III)

​

​

(in thousands of $)

Long-term debt, including current portion(2)

​

$

1,368,100

​

$

—

​

$

1,368,100

​

$

—

(1)The fair value is estimated based on a weighted combination of (1) a yield-to-maturity analysis based on a quoted (non-binding) price from a third party broker, (2) a yield-to-maturity analysis of a similar bond(s) in an active market, (3) the available market data for yield-to-maturity for the corporate bonds, if available and (4) if applicable, redemption information announced by the issuer of the security.
(2)Long-term debt, including current portion is presented gross of deferred finance costs of $28.4 million and $25.1 million as of December 31, 2021 and December 31, 2020, 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 credit risk and does not include amounts related to the accumulated accrued interest.
(3)The Company is required to maintain cash on a retention account as collateral for the upcoming scheduled debt repayments related to the Eurobank $30 mil. Facility, which was recorded as restricted cash under current assets as of December 31, 2021.
v3.22.0.1
Operating Revenue (Tables)
 12 Months Ended
Dec. 31, 2021
Operating Revenue  
Schedule of operating revenue from significant customers (constituting more than 10% of total revenue)

​

​

​

​

​

​

​

​

​

Charterer

    

2021

    

2020

    

2019

​

CMA CGM

 

30

%  

36

%  

36

%

HMM Korea

 

17

%  

24

%  

24

%

YML

 

—

​

—

​

13

%
v3.22.0.1
Operating Revenue by Geographic Location (Tables)
 12 Months Ended
Dec. 31, 2021
Operating Revenue by Geographic Location  
Schedule of operating revenue by geographic location

Operating revenue by geographic location of the customers for the years ended December 31, was as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

Continent

    

2021

    

2020

    

2019

Australia—Asia

​

$

323,172

​

$

203,991

​

$

222,328

Europe

​

 

338,124

​

 

242,704

​

 

211,312

America

​

​

28,209

​

​

14,899

​

​

13,604

Total Revenue

​

$

689,505

​

$

461,594

​

$

447,244
v3.22.0.1
Earnings/(Loss) per Share (Tables)
 12 Months Ended
Dec. 31, 2021
Earnings per Share  
Schedule of computation of basic and diluted earnings/(loss) per share

The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31 (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

    

2021

    

2020

    

2019

Numerator:

​

​

​

​

​

​

​

​

​

Net income

​

$

1,052,841

​

$

153,550

​

$

131,253

Denominator (number of shares in thousands):

​

​

​

​

​

​

​

​

​

Basic weighted average common shares outstanding

​

​

20,345

​

​

23,589

​

​

15,835

Effect of dilutive securities:

​

​

​

​

​

​

​

​

​

Share based compensation

​

 

239

​

 

216

​

 

386

Diluted weighted average common shares outstanding

​

​

20,584

​

​

23,805

​

​

16,221
v3.22.0.1
Basis of Presentation and General Information (Details)
May 02, 2019
shares
Dec. 31, 2021
item
$ / shares
shares
Dec. 31, 2020
$ / shares
shares
Sep. 18, 2009
$ / shares
shares
Property, Plant and Equipment        
Common stock, authorized capital stock (in shares) | shares   750,000,000 750,000,000 750,000,000
Common stock, par value (in dollars per share) | $ / shares   $ 0.01 $ 0.01 $ 0.01
Preferred stock, authorized capital stock (in shares) | shares   100,000,000 100,000,000 100,000,000
Preferred stock, par value (in dollars per share) | $ / shares   $ 0.01 $ 0.01 $ 0.01
Number of shares issued for one share under reverse stock split 0.0714      
Common stock, shares outstanding before reverse stock split| shares | shares 213,324,455      
Common Stock, Shares, Outstanding | shares 15,237,456 20,716,738 20,449,327  
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    
Hyundai Speed        
Property, Plant and Equipment        
TEU   13,100    
Hyundai 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    
CSCL Pusan        
Property, Plant and Equipment        
TEU   9,580    
Le Havre        
Property, Plant and Equipment        
TEU   9,580    
CPO Bremen        
Property, Plant and Equipment        
TEU   9,012    
CPO Hamburg        
Property, Plant and Equipment        
TEU   9,012    
Niledutch Lion        
Property, Plant and Equipment        
TEU   8,626    
Charleston        
Property, Plant and Equipment        
TEU   8,533    
Belita        
Property, Plant and Equipment        
TEU   8,533    
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    
CSCL America        
Property, Plant and Equipment        
TEU   8,468    
Phoebe        
Property, Plant and Equipment        
TEU   8,463    
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    
N Y K Lodestar [Member]        
Property, Plant and Equipment        
TEU   6,422    
N Y K Leo [Member]        
Property, Plant and Equipment        
TEU   6,422    
Performance        
Property, Plant and Equipment        
TEU   6,402    
Dimitra C        
Property, Plant and Equipment        
TEU   6,402    
Suez Canal        
Property, Plant and Equipment        
TEU   5,610    
Kota Lima (ex Genoa)        
Property, Plant and Equipment        
TEU   5,544    
Wide Alpha        
Property, Plant and Equipment        
TEU   5,466    
Wide Bravo        
Property, Plant and Equipment        
TEU   5,466    
Maersk Euphrates        
Property, Plant and Equipment        
TEU   5,466    
Wide Hotel        
Property, Plant and Equipment        
TEU   5,466    
Wide India        
Property, Plant and Equipment        
TEU   5,466    
Wide Juliet        
Property, Plant and Equipment        
TEU   5,466    
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        
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    
SNL Colombo        
Property, Plant and Equipment        
TEU   3,314    
Zebra (ex MSC Zebra)        
Property, Plant and Equipment        
TEU   2,602    
Artotina (ex Danae C)        
Property, Plant and Equipment        
TEU   2,524    
Amalia C        
Property, Plant and Equipment        
TEU   2,452    
Highway        
Property, Plant and Equipment        
TEU   2,200    
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    
v3.22.0.1
Significant Accounting Policies - Reclassifications in Other Comprehensive Income/(Loss) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Reclassifications in Other Comprehensive Income/(Loss)      
Income (loss) on derivatives $ (3,622) $ (3,632) $ (3,622)
Reclassification out of accumulated other comprehensive income      
Reclassifications in Other Comprehensive Income/(Loss)      
Income (loss) on derivatives (5,589) 3,632 3,622
Amortization of deferred realized losses on cash flow hedges | Reclassification out of accumulated other comprehensive income      
Reclassifications in Other Comprehensive Income/(Loss)      
Income (loss) on derivatives 3,622 $ 3,632 $ 3,622
Reclassification to interest income | Reclassification out of accumulated other comprehensive income      
Reclassifications in Other Comprehensive Income/(Loss)      
Income (loss) on derivatives $ (9,211)    
v3.22.0.1
Significant Accounting Policies - Foreign Currency Translation (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Foreign Currency Translation:      
Foreign currency exchange gains/(losses) $ (0.2) $ (0.4) $ (0.2)
v3.22.0.1
Significant Accounting Policies - Cash (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Cash and Cash Equivalents:      
Cash and cash equivalents $ 129,410 $ 65,663 $ 139,170
Restricted Cash:      
Debt repayments related to Eurobank $ 30,000    
v3.22.0.1
Significant Accounting Policies - Fixed Assets (Details) - item
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Property, Plant and Equipment    
Number of vessels acquired 6 5
Gemini Shipholdings Corporation    
Property, Plant and Equipment    
Number of vessels acquired 5  
v3.22.0.1
Significant Accounting Policies - Depreciation (Details) - Vessel
 12 Months Ended
Dec. 31, 2021
USD ($)
Depreciation  
Estimated useful life from the year built 30 years
Estimated Scrap Rate Per Ton $ 300
v3.22.0.1
Significant Accounting Policies - Accounting for Special Survey and Drydocking Costs (Details)
 12 Months Ended
Dec. 31, 2021
Vessel  
Accounting for Special Survey and Drydocking Costs  
Deferral and amortization period of survey and drydocking costs 2 years 6 months
v3.22.0.1
Significant Accounting Policies - Pension and Retirement Benefit Obligations-Crew (Details)
 12 Months Ended
Dec. 31, 2021
Vessel | Maximum  
Pension and Retirement Benefit Obligations-Crew:  
On board period of crew under the short-term contracts 7 months
v3.22.0.1
Significant Accounting Policies - Impairment of Long-lived Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Minimum      
Impairment of Long-lived Assets:      
Average historical period for estimating time charter equivalent rates   5 years 5 years
Maximum      
Impairment of Long-lived Assets:      
Average historical period for estimating time charter equivalent rates   15 years 15 years
Vessel      
Impairment of Long-lived Assets:      
Impairment loss $ 0 $ 0 $ 0
Vessel | Minimum      
Impairment of Long-lived Assets:      
Term of multi-year fixed rate period charters for vessels in current fleet and contracted vessels   1 year 1 year
Vessel | Maximum      
Impairment of Long-lived Assets:      
Term of multi-year fixed rate period charters for vessels in current fleet and contracted vessels   18 years 18 years
v3.22.0.1
Significant Accounting Policies - Segment Reporting (Details)
 12 Months Ended
Dec. 31, 2021
segment
Segment Reporting:  
Number of operating segments 1
Number of reportable segments 1
v3.22.0.1
Significant Accounting Policies - Equity Compensation Plan (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Aug. 02, 2019
Equity Compensation Plan:    
Maximum number of shares that may be granted 1,000,000 1,000,000
Common Stock    
Equity Compensation Plan:    
Contractual obligation for any stock to be granted $ 0  
v3.22.0.1
Significant Accounting Policies - Additional Information (Details)
 12 Months Ended
Dec. 31, 2021
USD ($)
Significant Accounting Policies  
Debt Instrument, Periodic Payment, Interest $ 0
v3.22.0.1
Acquisitions - Gemini Shipholdings Corporation (Details)
$ in Thousands
 12 Months Ended
Nov. 26, 2021
USD ($)
Nov. 01, 2021
USD ($)
Jul. 01, 2021
USD ($)
item
Apr. 12, 2021
USD ($)
Dec. 31, 2021
USD ($)
item
Dec. 31, 2020
USD ($)
item
Jun. 30, 2021
Asset Acquisition [Line Items]              
Aggregate gross purchase price       $ 31,000      
Number of vessels acquired | item         6 5  
Assumed time charter liabilities         $ 74,100    
Weighted average remaining charter duration         2 years    
Amortization of assumed time charter         $ 12,300    
Unearned revenue         83,180 $ 19,476  
Unearned revenue, net of current portion         $ 37,977 $ 19,574  
Gemini Shipholdings Corporation              
Asset Acquisition [Line Items]              
Percentage of voting interest acquired     51.00%       49.00%
Aggregate gross purchase price     $ 86,700        
Number of vessels acquired | item     5        
Gain on asset acquisition     $ 64,100        
Investment, ownership percentage         100.00%    
Assumed time charter liabilities     $ 36,001   $ 20,661    
Weighted average remaining charter duration     1 year 4 months 24 days        
Amortization of assumed time charter         15,300    
Unearned revenue         19,600    
Unearned revenue, net of current portion         $ 1,000    
Virage International Ltd.              
Asset Acquisition [Line Items]              
Percentage of voting interest acquired     51.00%        
Aggregate gross purchase price   $ 86,700          
Danaos Management Support Pte. Limited              
Asset Acquisition [Line Items]              
Percentage of voting interest acquired 100.00%            
Aggregate gross purchase price $ 2,100            
v3.22.0.1
Acquisitions - Vessel owning subsidiaries of Gemini (Details) - item
Dec. 31, 2021
Jul. 01, 2021
Suez Canal    
Asset Acquisition [Line Items]    
TEU 5,610  
Kota Lima (ex Genoa)    
Asset Acquisition [Line Items]    
TEU 5,544  
Catherine C    
Asset Acquisition [Line Items]    
TEU 6,422  
Leo C    
Asset Acquisition [Line Items]    
TEU 6,422  
Belita    
Asset Acquisition [Line Items]    
TEU 8,533  
Gemini Shipholdings Corporation | Suez Canal    
Asset Acquisition [Line Items]    
TEU   5,610
Gemini Shipholdings Corporation | Kota Lima (ex Genoa)    
Asset Acquisition [Line Items]    
TEU   5,544
Gemini Shipholdings Corporation | Catherine C    
Asset Acquisition [Line Items]    
TEU   6,422
Gemini Shipholdings Corporation | Leo C    
Asset Acquisition [Line Items]    
TEU   6,422
Gemini Shipholdings Corporation | Belita    
Asset Acquisition [Line Items]    
TEU   8,533
v3.22.0.1
Acquisitions - Consideration exchanged and the fair value of assets acquired and liabilities assumed (Details) - USD ($)
$ in Thousands
Nov. 26, 2021
Jul. 01, 2021
Apr. 12, 2021
Dec. 31, 2021
Jun. 30, 2021
Dec. 31, 2020
Dec. 31, 2019
Purchase price:              
Purchase price (51%)     $ 31,000        
Fair value of assets and liabilities acquired:              
Right-of-use assets       $ 79,442      
Cash and cash equivalents       129,410   $ 65,663 $ 139,170
Current assets       632,492   118,448  
Assumed time charter liabilities       (74,100)      
Current liabilities       (319,307)   $ (239,685)  
Gemini Shipholdings Corporation              
Asset Acquisition [Line Items]              
Percentage of voting interest acquired   51.00%     49.00%    
Purchase price:              
Purchase price (51%)   $ 86,700          
Fair value of previously held interest (49%)   83,300          
Total purchase price   170,000          
Fair value of assets and liabilities acquired:              
Vessels   154,500          
Right-of-use assets   82,500          
Cash and cash equivalents   14,388          
Current assets   2,534          
Assumed time charter liabilities   (36,001)   $ (20,661)      
Long-term debt   (23,125)          
Obligations under finance lease   (21,880)          
Current liabilities   (2,916)          
Assets, Net, Total   $ 170,000          
Danaos Management Support Pte. Limited              
Asset Acquisition [Line Items]              
Percentage of voting interest acquired 100.00%            
Purchase price:              
Purchase price (51%) $ 2,100            
Total purchase price 2,136            
Fair value of assets and liabilities acquired:              
Cash and cash equivalents 1,834            
Current assets 829            
Current liabilities (527)            
Assets, Net, Total $ 2,136            
v3.22.0.1
Acquisitions - Business acquisition, pro forma information (Details) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2021
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Asset Acquisition [Line Items]        
Net operating revenues   $ 689,505 $ 461,594 $ 447,244
Net income   $ 1,052,841 153,550 131,253
Gemini Shipholdings Corporation        
Asset Acquisition [Line Items]        
Net operating revenues $ 17,984   31,844 20,264
Net income $ 8,091   $ 12,873 $ 3,268
v3.22.0.1
Acquisitions - Aggregate future amortization of the unfavorable charters (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Jul. 01, 2021
Amortization for the periods ending:    
Total $ 74,100  
Gemini Shipholdings Corporation    
Amortization for the periods ending:    
December 31, 2022 19,644  
Until March 2023 1,017  
Total 20,661 $ 36,001
Less: Current portion (19,644)  
Total non-current portion $ 1,017  
v3.22.0.1
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Cash, Cash Equivalents and Restricted Cash        
Cash and cash equivalents $ 129,410 $ 65,663 $ 139,170  
Restricted cash 346      
Total 129,756 $ 65,663 $ 139,170 $ 77,275
Debt repayments related to Eurobank $ 30,000      
v3.22.0.1
Fixed Assets, net & Right-of-use Assets - Accumulated Depreciation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Vessel Costs      
Balance at the beginning of the period $ 3,421,897 $ 3,230,303 $ 3,224,253
Additions 495,546 191,594 6,050
Depreciation 113,832 101,531 96,505
Balance at the end of the period 3,917,443 3,421,897 3,230,303
Accumulated Depreciation      
Balance at the beginning of the period (941,960) (840,429) (743,924)
Depreciation (113,832) (101,531) (96,505)
Balance at the end of the period (1,055,792) (941,960) (840,429)
Net Book Value      
Balance at the beginning of the period 2,479,937 2,389,874 2,480,329
Additions 495,546 191,594 6,050
Depreciation (113,832) (101,531) (96,505)
Balance at the end of the period $ 2,861,651 $ 2,479,937 $ 2,389,874
v3.22.0.1
Fixed Assets, net & Right-of-use Assets - Schedule of aggregate future amortization of unfavorable charters (Details)
$ in Thousands
Dec. 31, 2021
USD ($)
Amortization for the periods ending:  
Total $ 74,100
Unearned revenue  
Amortization for the periods ending:  
Less: Current portion 36,500
Unearned revenue, net of current portion  
Amortization for the periods ending:  
Total non-current portion 25,300
TEU sister vessels  
Amortization for the periods ending:  
December 31, 2022 36,454
December 31, 2023 20,806
Until April 2024 4,534
Total 61,794
Less: Current portion (36,454)
Total non-current portion $ 25,340
v3.22.0.1
Fixed Assets, net & Right-of-use Assets (Details)
 6 Months Ended 12 Months Ended
Sep. 30, 2021
USD ($)
Apr. 12, 2021
USD ($)
May 12, 2020
USD ($)
Jun. 30, 2020
USD ($)
item
Dec. 31, 2021
USD ($)
item
$ / T
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Jul. 07, 2021
item
Apr. 08, 2021
USD ($)
Dec. 31, 2018
USD ($)
Fixed Assets, Net                    
Sale and leaseback arrangement term (in years)   5 years                
Carrying value         $ 2,861,651,000 $ 2,479,937,000 $ 2,389,874,000     $ 2,480,329,000
Credit facility   $ 815,000,000                
Aggregate gross purchase price   31,000,000.0                
Assumed time charter liabilities         $ 74,100,000          
Weighted average remaining period         2 years          
Amortization of assumed time charter         $ 12,300,000          
Carrying value of vessels subject to leasing obligation         766,200,000          
Unearned revenue         83,180,000 19,476,000        
Unearned revenue, net of current portion         37,977,000 19,574,000        
Gross proceeds of sale and leaseback   135,000,000.0                
Instalments due by 12-months period ended:                    
December 31, 2022         95,772,000          
December 31, 2023         55,878,000          
December 31, 2024         56,366,000          
December 31, 2025         7,209,000          
Until April 2026         32,777,000          
Total leaseback instalments         248,002,000          
Less: Imputed interest         (21,531,000)          
Total leaseback obligation         226,471,000          
Less: Deferred finance costs, net         (4,143,000)          
Less: Current leaseback obligation         (85,815,000) (24,515,000)        
Leaseback obligation, net of current portion         136,513,000 95,585,000        
Property, Plant and Equipment, Additions         495,546,000 191,594,000 $ 6,050,000      
TEU sister vessels                    
Fixed Assets, Net                    
Aggregate gross purchase price $ 260,000,000.0                  
Assumed time charter liabilities         61,794,000          
Citibank/Natwest $815 mil. Facility                    
Fixed Assets, Net                    
Sale Leaseback Transaction, Historical Cost   135,000,000                
Credit facility   815,000,000     815,000,000       $ 815,000,000  
Minimum liquidity per vessels         $ 30,000,000.0          
CPO Bremen                    
Fixed Assets, Net                    
TEU | item         9,012          
CPO Hamburg                    
Fixed Assets, Net                    
TEU | item         9,012          
Vessel                    
Fixed Assets, Net                    
Number of vessels on which scrubbers installed | item       9            
Cost of Scrubbers installed       $ 39,900,000            
Residual value of the fleet         $ 504,100,000 428,200,000        
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          
Instalments due by 12-months period ended:                    
Property, Plant and Equipment, Additions           $ 141,900,000        
Hyundai Respect                    
Fixed Assets, Net                    
TEU | item         13,100          
Hyundai Honour And Hyundai Respect                    
Fixed Assets, Net                    
Sale and leaseback arrangement term (in years)     4 years              
Repurchase price     $ 36,000,000.0              
Vessels to be refinanced     139,100,000              
CMA CGM Melisande, CMA CGM Attila, CMA CGM Tancredi, CMA CGM Bianca and CMA CGM Samson                    
Fixed Assets, Net                    
Sale Leaseback Transaction, Historical Cost   $ 135,000,000                
Wide Alpha                    
Fixed Assets, Net                    
TEU | item         5,466          
Wide Alpha | TEU sister vessels                    
Fixed Assets, Net                    
TEU | item               5,466    
Wide Bravo                    
Fixed Assets, Net                    
TEU | item         5,466          
Wide Bravo | TEU sister vessels                    
Fixed Assets, Net                    
TEU | item               5,466    
Maersk Euphrates                    
Fixed Assets, Net                    
TEU | item         5,466          
Maersk Euphrates | TEU sister vessels                    
Fixed Assets, Net                    
TEU | item               5,466    
Wide Hotel                    
Fixed Assets, Net                    
TEU | item         5,466          
Wide Hotel | TEU sister vessels                    
Fixed Assets, Net                    
TEU | item               5,466    
Wide India                    
Fixed Assets, Net                    
TEU | item         5,466          
Wide India | TEU sister vessels                    
Fixed Assets, Net                    
TEU | item               5,466    
Wide Juliet                    
Fixed Assets, Net                    
TEU | item         5,466          
Wide Juliet | TEU sister vessels                    
Fixed Assets, Net                    
TEU | item               5,466    
v3.22.0.1
Deferred Charges, net (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Changes in deferred charges, net      
Balance at the beginning of the period $ 17,339    
Balance at the end of the period 11,801 $ 17,339  
Drydocking and Special Survey Costs      
Changes in deferred charges, net      
Balance at the beginning of the period 17,339 11,455 $ 13,031
Additions 4,643 16,916 7,157
Amortization (10,181) (11,032) (8,733)
Balance at the end of the period $ 11,801 $ 17,339 $ 11,455
Period of amortization for deferred costs 2 years 6 months    
v3.22.0.1
Other Current and Non-current Assets (Details) - USD ($)
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2016
Schedule Of Other Assets [Line Items]      
Equity participation ZIM $ 423,024,000    
Straight-lining of revenue 18,997,000 $ 9,454,000  
Claims receivable 8,919,000    
Other assets 8,192,000 4,875,000  
Total current assets 459,132,000 14,329,000  
Other assets 41,739,000 20,421,000  
Total non-current assets $ 41,739,000 83,383,000  
ZIM notes      
Schedule Of Other Assets [Line Items]      
Available for sale securities   43,559,000  
HMM notes      
Schedule Of Other Assets [Line Items]      
Available for sale securities   19,328,000  
Equity participation      
Schedule Of Other Assets [Line Items]      
Equity participation ZIM   $ 75,000 $ 0
v3.22.0.1
Other Current and Non-current Assets - ZIM (Details)
 1 Months Ended 12 Months Ended
Oct. 31, 2021
USD ($)
shares
Jun. 30, 2021
USD ($)
shares
Mar. 31, 2021
USD ($)
Mar. 31, 2020
USD ($)
Jul. 31, 2014
USD ($)
item
Dec. 31, 2021
USD ($)
shares
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2016
USD ($)
Jan. 27, 2021
shares
Schedule Of Other Assets [Line Items]                    
Total gain on ZIM ordinary shares           $ 577,994,000        
Unearned revenue           83,180,000 $ 19,476,000      
Non-current portion of unearned revenue           37,977,000 19,574,000      
Income tax withheld on dividend income amount           $ 5,890,000        
ZIM                    
Schedule Of Other Assets [Line Items]                    
Acquisition of additional shares       $ 75,000            
Ordinary shares owned | shares           7,186,950       10,186,950
Book value of investment             75,000      
Ordinary shares sold | shares 1,000,000 2,000,000                
Net proceeds from sale of ordinary shares $ 44,300,000 $ 76,400,000                
Total gain on ZIM ordinary shares           $ 543,650,000        
Debt Securities, Available-for-sale, Current           422,970,000        
Dividend received           34,340,000        
Fair value of shareholding interest           $ 423,020,000.00        
Equity participation (as a percent)       10.20%   6.10%        
Interest income from fair value unwinding           $ 6,600,000 4,300,000 $ 4,100,000    
Outstanding balance of unearned revenue           0        
Unearned revenue             1,100,000      
Non-current portion of unearned revenue             0      
Deferred revenue recorded         $ 39,100,000          
Number of vessels of which the charter rates payable was reduced | item         6          
Series 1 Notes | ZIM                    
Schedule Of Other Assets [Line Items]                    
Proceeds received from mandatory repayment of notes     $ 2,400,000              
Series 1 and Series 2 Notes | ZIM                    
Schedule Of Other Assets [Line Items]                    
Proceeds received from mandatory repayment of notes   47,200,000                
Accrued interest   $ 6,400,000                
Operating revenue | ZIM                    
Schedule Of Other Assets [Line Items]                    
Recognized unearned revenue           $ 1,100,000 $ 5,400,000 $ 6,000,000.0    
Equity participation | ZIM                    
Schedule Of Other Assets [Line Items]                    
Impairment loss at reporting date                 $ 28,700,000  
v3.22.0.1
Other Current and Non-current Assets - HMM (Details) - USD ($)
$ in Thousands, shares in Millions
 1 Months Ended 12 Months Ended
May 31, 2021
Jul. 31, 2016
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Jul. 18, 2016
Schedule Of Other Assets [Line Items]            
Current portion of unearned revenue     $ 83,180 $ 19,476    
Non-current portion of unearned revenue     37,977 19,574    
HMM            
Schedule Of Other Assets [Line Items]            
Shares received from charter restructuring   4.6        
Unearned revenue           $ 75,600
Current portion of unearned revenue     8,200 8,200    
Non-current portion of unearned revenue     10,700 18,900    
Loan Notes 1 HMM | HMM            
Schedule Of Other Assets [Line Items]            
Principal amount of unsecured notes received   $ 32,800        
Proceeds received from mandatory repayment of notes $ 19,900          
Loan Notes 2 HMM | HMM            
Schedule Of Other Assets [Line Items]            
Principal amount of unsecured notes received   $ 6,200        
Proceeds received from mandatory repayment of notes     6,100      
Accrued interest $ 3,000   1,100      
Interest income | HMM            
Schedule Of Other Assets [Line Items]            
Interest income from fair value unwinding     5,000 2,100 $ 1,900  
Operating revenue | HMM            
Schedule Of Other Assets [Line Items]            
Recognized unearned revenue     $ 8,200 $ 8,200 $ 8,200  
v3.22.0.1
Other Current and Non-current Assets - Transfer to Available for sale category (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Available for sale securities at fair value and unrealized losses      
Amortized cost basis   $ 74,478  
Fair value   62,887  
Unrealized gain/(loss)   (11,591)  
Unrealized loss on available for sale securities      
Beginning balance as of January 1, 2019 $ (11,591) (38,224) $ (36,378)
Unrealized loss on available for sale securities     (1,846)
Unrealized gain on available for sale securities   26,633  
Gain on available for sale securities 20,803    
Reclassification to interest income (9,212)    
Ending balance as of December 31   (11,591) $ (38,224)
Straight-lining of company's revenue $ 39,900 20,000  
ZIM notes      
Available for sale securities at fair value and unrealized losses      
Amortized cost basis   49,871  
Fair value   43,559  
Unrealized gain/(loss)   (6,312)  
HMM notes      
Available for sale securities at fair value and unrealized losses      
Amortized cost basis   24,607  
Fair value   19,328  
Unrealized gain/(loss)   $ (5,279)  
v3.22.0.1
Accrued Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Accrued Liabilities    
Accrued payroll $ 1,001 $ 1,008
Accrued interest 11,873 2,137
Accrued dry-docking expenses 280 2,177
Accrued expenses 7,692 5,638
Total $ 20,846 $ 10,960
v3.22.0.1
Lease Arrangements (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
USD ($)
item
Lease Arrangements  
Number of vessels , generated revenue results | item 71
Future minimum revenue expected to be earned  
2022 $ 850,851
2023 753,705
2024 551,119
2025 310,347
2026 204,493
2027 and thereafter 182,316
Total future rentals $ 2,852,831
v3.22.0.1
Long-Term Debt, net - Schedule of Debt (Details) - USD ($)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Apr. 12, 2021
Apr. 08, 2021
Feb. 11, 2021
Long-Term Debt, net            
Fair value of debt adjustment $ (9,990,000) $ (14,304,000)        
Comprehensive Financing Plan exit fees accrued   22,660,000        
Total long-term debt 1,142,035,000 1,368,100,000        
Less: Deferred finance costs, net (28,369,000) (25,093,000)        
Less: Current portion (95,750,000) (155,662,000)        
Total long-term debt net of current portion and deferred finance cost $ 1,017,916,000 $ 1,187,345,000        
Credit facility       $ 815,000,000    
Weighted average interest rate on long-term borrowings (as a percent) 4.40% 4.60% 6.10%      
Interest paid $ 42,800,000 $ 35,200,000 $ 54,900,000      
Interest cost incurred 53,100,000 36,700,000 $ 55,200,000      
Total interest paid 0          
Citibank/Natwest $815 mil. Facility            
Long-Term Debt, net            
Long-term debt 774,250,000     300,000,000    
Credit facility 815,000,000     $ 815,000,000 $ 815,000,000  
Senior unsecured notes            
Long-Term Debt, net            
Long-term debt 300,000,000         $ 300,000,000.0
Macquarie Bank $58 mil. Facility            
Long-Term Debt, net            
Long-term debt 45,600,000 56,000,000        
Credit facility 58,000,000          
Eurobank $30.0 mil. Facility            
Long-Term Debt, net            
Long-term debt 21,375,000          
Credit facility 30,000,000.0          
SinoPac $13.3 mil. Facility            
Long-Term Debt, net            
Long-term debt 10,800,000 12,800,000        
Credit facility 13,300,000          
RBS            
Long-Term Debt, net            
Long-term debt   433,412,000        
Credit facility 475,500,000          
HSH Nordbank AG-Aegean Baltic Bank-Piraeus Bank            
Long-Term Debt, net            
Credit facility 382,500,000          
Citibank $114 mil. Facility            
Long-Term Debt, net            
Long-term debt   63,061,000        
Credit facility 114,000,000          
Credit Suisse            
Long-Term Debt, net            
Long-term debt   101,254,000        
Credit facility 171,800,000          
Citi-Eurobank            
Long-Term Debt, net            
Long-term debt   17,669,000        
Credit facility 37,600,000          
Club Facility            
Long-Term Debt, net            
Long-term debt   124,427,000        
Credit facility   206,200,000        
Sinosure CEXIM-Citi-ABN Amro Credit Facility            
Long-Term Debt, net            
Long-term debt   20,340,000        
Credit facility 203,400,000          
Citibank $123.9 mil. Facility            
Long-Term Debt, net            
Long-term debt   85,280,000        
Credit facility 123,900,000          
Citibank $120 mil. Facility            
Long-Term Debt, net            
Long-term debt   93,742,000        
Credit facility $ 120,000,000          
HSH Nordbank            
Long-Term Debt, net            
Long-term debt   $ 351,759,000        
v3.22.0.1
Long-Term Debt, net - The Refinancing and the New Credit Facilities (Details)
$ in Thousands
 1 Months Ended 12 Months Ended
Dec. 11, 2020
USD ($)
item
Jul. 02, 2020
USD ($)
installment
Apr. 09, 2020
item
May 02, 2019
Sep. 30, 2020
USD ($)
installment
Dec. 31, 2021
USD ($)
installment
Apr. 12, 2021
USD ($)
Dec. 31, 2020
USD ($)
Apr. 08, 2020
USD ($)
Long-Term Debt, net                  
Credit facility             $ 815,000    
Number of shares issued for one share under reverse stock split       0.0714          
Credit facility             $ 815,000    
RBS                  
Long-Term Debt, net                  
Credit facility           $ 475,500      
Credit facility           475,500      
Long-term debt               $ 433,412  
HSH Nordbank AG-Aegean Baltic Bank-Piraeus Bank                  
Long-Term Debt, net                  
Credit facility           382,500      
Credit facility           382,500      
Citibank $114 mil. Facility                  
Long-Term Debt, net                  
Credit facility           114,000      
Credit facility           114,000      
Long-term debt               63,061  
Credit Suisse                  
Long-Term Debt, net                  
Credit facility           171,800      
Credit facility           171,800      
Long-term debt               101,254  
Citi-Eurobank                  
Long-Term Debt, net                  
Credit facility           37,600      
Credit facility           37,600      
Long-term debt               17,669  
Club Facility                  
Long-Term Debt, net                  
Credit facility               206,200  
Credit facility               206,200  
Long-term debt               124,427  
Citibank $120 mil. Facility                  
Long-Term Debt, net                  
Credit facility           120,000      
Credit facility           120,000      
Long-term debt               93,742  
Citibank $123.9 mil. Facility                  
Long-Term Debt, net                  
Credit facility           123,900      
Credit facility           $ 123,900      
Long-term debt               $ 85,280  
Oceancarrier (No.2) Corp. Oceancarrier (No.3) Corp | LIBOR                  
Long-Term Debt, net                  
Spread on variable rate 3.75%                
Macquarie Bank $58 mil. Facility                  
Long-Term Debt, net                  
Loan to fair value percentage           65.00%      
Minimum working capital requirement per vessel           $ 1,000      
Macquarie Bank $58 mil. Facility | Rewarding International Shipping Inc. and Blackwell Seaways Inc                  
Long-Term Debt, net                  
Credit facility                 $ 24,000
Number of newly acquired vessels on whom loan was financed | item     2            
Number of quarterly instalments | installment         19        
Term of debt         5 years        
Balloon payment at maturity         $ 10,400        
Credit facility                 $ 24,000
Macquarie Bank $58 mil. Facility | Rewarding International Shipping Inc. and Blackwell Seaways Inc | LIBOR                  
Long-Term Debt, net                  
Spread on variable rate 3.90%                
Macquarie Bank $58 mil. Facility | Oceancarrier (No.2) Corp. Oceancarrier (No.3) Corp                  
Long-Term Debt, net                  
Credit facility $ 34,000                
Number of newly acquired vessels on whom loan was financed | item 2                
Number of quarterly instalments | installment           19      
Term of debt           5 years      
Balloon payment at maturity           $ 15,200      
Credit facility $ 34,000                
SinoPac $13.3 mil. Facility | Oceancarrier (No.1) Corp                  
Long-Term Debt, net                  
Credit facility   $ 13,300              
Number of quarterly instalments | installment   19              
Period after the drawn down to start quarterly installments   3 months              
Term of debt   5 years              
Balloon payment at maturity   $ 3,800              
Loan to fair value percentage   120.00%              
Credit facility   $ 13,300              
SinoPac $13.3 mil. Facility | Oceancarrier (No.1) Corp | LIBOR                  
Long-Term Debt, net                  
Spread on variable rate   3.75%              
v3.22.0.1
Long-Term Debt, net - Accounting for the 2021 Refinancing (Details) - USD ($)
 12 Months Ended
Dec. 31, 2021
Apr. 12, 2021
Line of Credit Facility [Line Items]    
Credit facility   $ 815,000,000
Total gain on debt extinguishment $ 111,600,000  
Citibank/Natwest $815 mil. Facility    
Line of Credit Facility [Line Items]    
Legal and other fees 2,300,000  
Loan arrangement fees deferred 15,600,000  
Citibank/Natwest | Other current liabilities    
Line of Credit Facility [Line Items]    
Accrued additional fees 6,000,000.0  
Citibank/Natwest | Other long-term liabilities    
Line of Credit Facility [Line Items]    
Accrued additional fees 3,000,000.0  
HSH Nordbank AG-Aegean Baltic Bank-Piraeus Bank    
Line of Credit Facility [Line Items]    
Accumulated accrued interest 75,300,000  
Credit facility 382,500,000  
2018 Credit Facilities | RBS    
Line of Credit Facility [Line Items]    
Additional fees amount $ 12,000,000.0  
Number of quarterly instalments 8  
RBS    
Line of Credit Facility [Line Items]    
Credit facility $ 475,500,000  
Total gain on debt extinguishment 35,600,000  
Deferred gain on debt extinguishment $ 33,300,000  
v3.22.0.1
Long-Term Debt, net - Additional Information (Details)
 12 Months Ended
Jul. 12, 2021
USD ($)
Jul. 01, 2021
USD ($)
Apr. 12, 2021
USD ($)
Feb. 11, 2021
USD ($)
Dec. 31, 2021
USD ($)
item
Apr. 08, 2021
USD ($)
Dec. 31, 2020
USD ($)
Line of Credit Facility [Line Items]              
Credit facility     $ 815,000,000        
Deferred bond issuance costs         $ 28,400,000   $ 25,100,000
Remaining borrowing availability         $ 0    
Number of vessels excluding sale and lease back arrangement | item         56    
Carrying value of vessels         $ 1,842,700,000    
Gemini Shipholdings Corporation              
Line of Credit Facility [Line Items]              
Number of quarterly instalments   13          
Balloon payment at maturity   $ 13,500,000          
Acquired outstanding principal balance   $ 23,100,000          
CMA CGM Melisande, CMA CGM Attila, CMA CGM Tancredi, CMA CGM Bianca and CMA CGM Samson              
Line of Credit Facility [Line Items]              
Sale and Lease back arrangement, amount     135,000,000        
Citibank/Natwest $815 mil. Facility              
Line of Credit Facility [Line Items]              
Credit facility     $ 815,000,000   815,000,000 $ 815,000,000  
Term of debt     4 years        
Number of quarterly instalments     16        
Amount of quarterly instalment     $ 20,400,000        
Balloon payment at maturity $ 489,000,000.0            
Sale and Lease back arrangement, amount     135,000,000        
Long-term debt     $ 300,000,000   $ 774,250,000    
Minimum percentage of fair market value of collateral vessels required to cover loan value         120.00%    
Minimum liquidity         $ 30,000,000.0    
Maximum leverage ratio         6.5    
Minimum interest coverage ratio         2.5    
Citibank/Natwest $815 mil. Facility | Maximum              
Line of Credit Facility [Line Items]              
Long-term debt $ 815,000,000            
Citibank/Natwest $815 mil. Facility | LIBOR              
Line of Credit Facility [Line Items]              
Spread on variable rate 2.50%            
Senior unsecured notes              
Line of Credit Facility [Line Items]              
Long-term debt       $ 300,000,000.0 $ 300,000,000    
Fixed interest rate (as a percent)       8.50%      
Percent of equity offering proceeds within 90 days after the equity offering closing       108.50%      
Deferred bond issuance costs       $ 9,000,000.0      
Net proceeds placed in escrow account and used later       $ 294,400,000      
Senior unsecured notes | March 1, 2024              
Line of Credit Facility [Line Items]              
Percent of principal amount being redeemed       104.25%      
Senior unsecured notes | March 1, 2025              
Line of Credit Facility [Line Items]              
Percent of principal amount being redeemed       102.125%      
Senior unsecured notes | March 1, 2026              
Line of Credit Facility [Line Items]              
Percent of principal amount being redeemed       100.00%      
Senior unsecured notes | Maximum              
Line of Credit Facility [Line Items]              
Redemption price (as percent)       35.00%      
HSH Nordbank AG-Aegean Baltic Bank-Piraeus Bank              
Line of Credit Facility [Line Items]              
Credit facility         $ 382,500,000    
v3.22.0.1
Long-Term Debt, net - Principal Payments (Details) - Fixed principal repayments
$ in Thousands
Dec. 31, 2021
USD ($)
Scheduled maturities of long-term debt  
December 31, 2022 $ 95,750
December 31, 2023 90,700
December 31, 2024 103,275
December 31, 2025 562,300
Thereafter 300,000
Total long-term debt $ 1,152,025
v3.22.0.1
Related Party Transactions (Details)
$ in Thousands, € in Millions
 12 Months Ended
Jul. 01, 2021
USD ($)
Apr. 12, 2021
USD ($)
Aug. 10, 2018
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2021
EUR (€)
Dec. 31, 2020
USD ($)
Dec. 31, 2020
EUR (€)
Dec. 31, 2019
USD ($)
Dec. 31, 2019
EUR (€)
Jun. 30, 2021
Related Party Transactions                    
Recognized non-cash share-based compensation expense       $ 15,278   $ 1,199   $ 4,241    
Aggregate gross purchase price   $ 31,000                
Advances on account of the vessels' operating expenses       21,875   20,426        
Gemini Shipholdings Corporation                    
Related Party Transactions                    
Percentage of voting interest acquired 51.00%                 49.00%
Aggregate gross purchase price $ 86,700                  
Executive officers                    
Related Party Transactions                    
Recognized non-cash share-based compensation expense       11,800   1,000   3,600    
Due to executive officers shown under accounts payable       $ 200            
Manager                    
Related Party Transactions                    
Daily management fees     $ 850              
Daily vessel management fees for vessels on bareboat charter     425              
Daily vessel management fees for vessels on time charter     $ 850              
Management fee on gross freight, charter hire, ballast bonus and demurrage (as a percent)     1.25%              
Management fee based on the contract price of any vessel bought or sold (as a percent)     0.50% 0.50% 0.50%          
Amount capitalized       $ 1,300   700        
Management fees incurred shown under General and administrative expenses       19,900   17,700   16,800    
Management commissions incurred shown under Voyage expenses       10,400   5,700   5,300    
Advances on account of the vessels' operating expenses       21,900   20,400        
Executive officers compensation       2,100 € 1.8 1,800 € 1.5 1,700 € 1.5  
Due to executive officers shown under accounts payable       100   100        
The Swedish Club                    
Related Party Transactions                    
Premiums paid       $ 5,200   $ 4,300   $ 4,400    
v3.22.0.1
Taxes (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
USD ($)
Taxes  
Income tax withheld on divided income earned on investment $ 5,900
v3.22.0.1
Financial Instruments - Interest Rate Swap Hedges (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2021
USD ($)
agreement
Financial Instruments  
Number of agreements held | agreement 0
Interest rate swap contracts  
Financial Instruments  
Unrealized losses reclassified from accumulated other comprehensive loss to earnings $ 3.6
Unrealized losses expected to be reclassified from accumulated other comprehensive loss to earnings within the next twelve months $ 3.6
v3.22.0.1
Financial Instruments - Estimated Fair Values Of Financial Instruments (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Total    
Financial Instruments    
Cash and cash equivalents $ 129,410 $ 65,663
Restricted cash 346  
Equity participation ZIM 423,024  
Long-term debt, including current portion 1,142,035 1,368,100
Total | ZIM | Notes    
Financial Instruments    
Notes 423,024 43,559
Total | HMM | Notes    
Financial Instruments    
Notes   19,328
Book Value    
Financial Instruments    
Cash and cash equivalents 129,410 65,663
Restricted cash 346  
Equity participation ZIM 423,024 75
Long-term debt, including current portion $ 1,142,035 1,368,100
Book Value | ZIM | Notes    
Financial Instruments    
Notes   43,559
Book Value | HMM | Notes    
Financial Instruments    
Notes   $ 19,328
v3.22.0.1
Financial Instruments - Financial Instruments Measured and Not Measured At Fair Value On Recurring Basis (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Apr. 12, 2021
Dec. 31, 2020
Financial instruments measured at fair value      
Deferred finance costs, net $ 28,400   $ 25,100
Credit facility   $ 815,000  
Total      
Financial instruments measured at fair value      
Long-term debt, including current portion 1,142,035   1,368,100
Eurobank 30.0 Million Facility [Member]      
Financial instruments measured at fair value      
Credit facility 30,000    
Non-recurring basis | Significant Other Observable Inputs (Level 2)      
Financial instruments measured at fair value      
Long-term debt, including current portion 1,142,035   1,368,100
Non-recurring basis | Total      
Financial instruments measured at fair value      
Long-term debt, including current portion 1,142,035   1,368,100
Notes | ZIM | Quoted Prices in Active Markets for Identical Assets (Level 1)      
Financial instruments measured at fair value      
Notes 423,024    
Notes | ZIM | Total      
Financial instruments measured at fair value      
Notes $ 423,024   43,559
Notes | ZIM | Recurring basis | Total      
Financial instruments measured at fair value      
Notes     43,559
Notes | ZIM | Recurring basis | Total | Significant Other Observable Inputs (Level 2)      
Financial instruments measured at fair value      
Notes     43,559
Notes | HMM | Total      
Financial instruments measured at fair value      
Notes     19,328
Notes | HMM | Recurring basis | Total      
Financial instruments measured at fair value      
Notes     19,328
Notes | HMM | Recurring basis | Total | Significant Other Observable Inputs (Level 2)      
Financial instruments measured at fair value      
Notes     $ 19,328
v3.22.0.1
Operating Revenue (Details) - Operating revenue - Significant customers
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
CMA CGM      
Operating Revenue      
Percentage of operating revenue 30.00% 36.00% 36.00%
HMM Korea      
Operating Revenue      
Percentage of operating revenue 17.00% 24.00% 24.00%
YML      
Operating Revenue      
Percentage of operating revenue     13.00%
v3.22.0.1
Operating Revenue by Geographic Location (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Operating revenue by geographic location      
Revenue $ 689,505 $ 461,594 $ 447,244
Australia-Asia      
Operating revenue by geographic location      
Revenue 323,172 203,991 222,328
Europe      
Operating revenue by geographic location      
Revenue 338,124 242,704 211,312
America      
Operating revenue by geographic location      
Revenue $ 28,209 $ 14,899 $ 13,604
v3.22.0.1
Commitments and Contingencies (Details)
$ in Millions
 12 Months Ended
Jan. 20, 2021
USD ($)
Sep. 01, 2016
item
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Commitments and Contingencies        
Partial payment received from Hanjin Shipping as common benefit claim and interest | $ $ 3.9      
Unsecured claim submitted to Seoul Central District Court against Hanjin Shipping | Pending litigation | Hanjin        
Commitments and Contingencies        
Number of charters cancelled | item   8    
Number of charters | item   8    
Collectability of receivables | Unsecured claim submitted to Seoul Central District Court against Hanjin Shipping | Pending litigation        
Commitments and Contingencies        
Total unsecured claim | $     $ 597.9 $ 597.9
v3.22.0.1
Stock Based Compensation (Details)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 21, 2021
shares
Dec. 10, 2021
shares
Mar. 16, 2021
shares
Feb. 12, 2021
shares
May 10, 2019
shares
Sep. 14, 2018
shares
Dec. 31, 2021
USD ($)
director
$ / shares
shares
Dec. 31, 2020
USD ($)
director
shares
Dec. 31, 2019
USD ($)
director
$ / shares
shares
Aug. 02, 2019
shares
Stock Based Compensation                    
Shares granted     40,000              
Shares vested     10,000       9,650      
Average price of shares issued | $ / shares             $ 72.19      
Maximum number of shares that may be granted             1,000,000     1,000,000
Number of directors who elected to receive their compensation in shares | director             0 0 0  
Restricted shares                    
Stock Based Compensation                    
Shares granted 10,000 110,000   110,000            
Shares issued and outstanding             19,300 215,562    
Average price of shares issued | $ / shares             $ 66.00   $ 10.70  
Common Stock                    
Stock Based Compensation                    
Contractual obligation for any stock to be granted | $             $ 0      
General and Administrative Expense                    
Stock Based Compensation                    
Expenses representing fair value of the stock granted recognized in General and Administrative Expenses | $             $ 15,300 $ 1,200 $ 4,200  
Manager's employees | Vesting on December 31, 2021                    
Stock Based Compensation                    
Shares granted     40,000              
Shares vested     10,000              
Number of cancelled shares     1,050              
Manager's employees | Restricted shares                    
Stock Based Compensation                    
Shares granted         137,944          
Shares vested     19,300              
Number of cancelled shares             1,685 714 4,168  
Manager's employees | Restricted shares | Vesting on December 31, 2019                    
Stock Based Compensation                    
Shares vested         66,888 149,386        
Manager's employees | Restricted shares | Vesting on December 31, 2021                    
Stock Based Compensation                    
Shares vested     9,650     149,388 64,489      
Executive officers                    
Stock Based Compensation                    
Shares granted       110,000            
Executive officers | Restricted shares                    
Stock Based Compensation                    
Shares granted         35,714 298,774        
v3.22.0.1
Stockholders' Equity (Details)
$ / shares in Units, $ in Thousands
 1 Months Ended 12 Months Ended
Dec. 21, 2021
shares
Dec. 10, 2021
shares
Mar. 16, 2021
shares
Feb. 12, 2021
shares
May 10, 2019
shares
May 02, 2019
shares
Sep. 14, 2018
shares
Dec. 31, 2019
USD ($)
$ / shares
shares
Dec. 31, 2021
USD ($)
$ / shares
shares
Dec. 31, 2020
$ / shares
shares
Dec. 31, 2019
USD ($)
$ / shares
shares
Oct. 31, 2020
USD ($)
shares
Dec. 31, 2011
$ / shares
shares
Sep. 18, 2009
$ / shares
shares
Stockholders' Equity                            
Dividend declared per share | $ / shares                 $ 0.50          
Dividends, common stock in cash | $                 $ 30,900          
Stock issued during period, shares, dividend reinvestment plan                 146          
Number of shares authorized to be repurchased                       4,339,271    
Aggregate purchase price | $                       $ 31,100    
Share issuance costs | $                     $ 873      
Number of shares issued for one share under reverse stock split           0.0714                
Common stock, shares outstanding before reverse stock split| shares           213,324,455                
Shares outstanding           15,237,456     20,716,738 20,449,327        
Shares granted     40,000                      
Shares vested     10,000           9,650          
Forfeiture of shares     1,050                      
Shares issued                 25,056,009 24,788,598        
Treasury shares                 4,339,271 4,339,271        
Authorized capital stock, common stock (in shares)                 750,000,000 750,000,000       750,000,000
Authorized capital stock, par value of common stock (in dollars per share) | $ / shares                 $ 0.01 $ 0.01       $ 0.01
Authorized capital stock, preferred stock (in shares)                 100,000,000 100,000,000       100,000,000
Authorized capital stock, par value of preferred stock (in dollars per share) | $ / shares                 $ 0.01 $ 0.01       $ 0.01
Number of warrants issued to lenders               15,000,000     15,000,000   15,000,000  
Exercise price of warrant (in dollars per share) | $ / shares                         $ 7.00  
Average price of shares issued | $ / shares                 72.19          
Common stock, par value (in dollars per share) | $ / shares                 $ 0.01 $ 0.01       $ 0.01
Restricted shares                            
Stockholders' Equity                            
Shares granted 10,000 110,000   110,000                    
Shares issued and outstanding                 19,300 215,562        
Average price of shares issued | $ / shares               $ 10.70 $ 66.00   $ 10.70      
Executive officers                            
Stockholders' Equity                            
Shares granted       110,000                    
Executive officers | Restricted shares                            
Stockholders' Equity                            
Shares granted         35,714   298,774              
Manager's employees | Restricted shares                            
Stockholders' Equity                            
Shares granted         137,944                  
Shares vested     19,300                      
Forfeiture of shares         4,168       1,685 714        
Vesting on December 31, 2019 | Manager's employees | Restricted shares                            
Stockholders' Equity                            
Shares vested         66,888   149,386              
Vesting on December 31, 2021 | Manager's employees                            
Stockholders' Equity                            
Shares granted     40,000                      
Shares vested     10,000                      
Vesting on December 31, 2021 | Manager's employees | Restricted shares                            
Stockholders' Equity                            
Shares vested     9,650       149,388   64,489          
Vesting on December 31, 2022                            
Stockholders' Equity                            
Shares vested                 19,300          
DIL                            
Stockholders' Equity                            
Proceeds from equity issuance | $               $ 17,300            
Public Offering                            
Stockholders' Equity                            
Number of shares sold               9,418,080            
Proceeds from equity issuance | $               $ 54,400            
Share issuance costs | $               $ 900            
RBS                            
Stockholders' Equity                            
Number of shares authorized to be repurchased                       2,517,013    
Sphinx Investment Corp                            
Stockholders' Equity                            
Number of shares authorized to be repurchased                       1,822,258    
v3.22.0.1
Earnings per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2011
Numerator:        
Net income $ 1,052,841 $ 153,550 $ 131,253  
Denominator (number of shares in thousands):        
Basic weighted average common shares outstanding 20,345,394 23,588,994 15,834,913  
Share based compensation 239,000 216,000 386,000  
Diluted weighted average common shares outstanding 20,583,796 23,805,251 16,220,697  
Number of warrants issued     15,000,000 15,000,000
Number of warrants outstanding     15,000,000  
Gross gain on debt extinguishment $ 111,600      
Basic and diluted earnings per share related to gain on extinguishment of debt $ 5.49      
Basic and diluted earnings per share related to gain on extinguishment of debt, before reverse stock split $ 5.42      
v3.22.0.1
Subsequent Events (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Feb. 07, 2022
Jan. 17, 2022
Dec. 31, 2021
Subsequent events      
Dividends, Common Stock, Cash     $ 30.9
Subsequent event      
Subsequent events      
Dividend common stock per share declared $ 0.75    
Dividends, Common Stock, Cash $ 15.5    
Gross sale consideration   $ 130.0