Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2022 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, $0.01 par value per share |
Trading Symbol | DAC |
Security Exchange Name | NYSE |
Entity Central Index Key | 0001369241 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2022 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 20,349,702 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Document Accounting Standard | U.S. GAAP |
ICFR Auditor Attestation Flag | true |
Auditor Firm ID | 1163 |
Auditor Name | Deloitte Certified Public Accountants S.A. |
Auditor Location | Athens, Greece |
Business Contact [Member] | |
Entity Address, Address Line One | c/o Danaos Shipping Co. Ltd, Athens Branch |
Entity Address, Address Line Two | 14 Akti Kondyli |
Entity Address, City or Town | Piraeus |
Entity Address, Country | GR |
Entity Address, Postal Zip Code | 185 45 |
Contact Personnel Name | Evangelos Chatzis |
City Area Code | +30 210 |
Local Phone Number | 419 6480 |
Contact Personnel Fax Number | 30 210 419 6489 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 267,668 | $ 129,410 |
Restricted cash | 346 | |
Accounts receivable, net | 5,635 | 7,118 |
Inventories | 16,099 | 12,579 |
Prepaid expenses | 1,312 | 2,032 |
Due from related parties | 34,002 | 21,875 |
Other current assets | 47,805 | 459,132 |
Total current assets | 372,521 | 632,492 |
NON-CURRENT ASSETS | ||
Fixed assets at cost, net of accumulated depreciation of $1,182,402 (2021: $1,055,792) | 2,721,494 | 2,861,651 |
Right-of-use assets, net of accumulated amortization of nil (2021 : $3,085) | 79,442 | |
Advances for vessels under construction | 190,736 | |
Deferred charges, net | 25,554 | 11,801 |
Other non-current assets | 89,923 | 41,739 |
Total non-current assets | 3,027,707 | 2,994,633 |
Total assets | 3,400,228 | 3,627,125 |
CURRENT LIABILITIES | ||
Accounts payable | 24,505 | 18,925 |
Accrued liabilities | 21,362 | 20,846 |
Current portion of long-term debt, net | 27,500 | 95,750 |
Current portion of long-term leaseback obligation, net | 27,469 | 85,815 |
Accumulated accrued interest, current portion | 6,146 | |
Unearned revenue | 111,149 | 83,180 |
Other current liabilities | 16,422 | 8,645 |
Total current liabilities | 228,407 | 319,307 |
LONG-TERM LIABILITIES | ||
Long-term debt, net | 402,440 | 1,017,916 |
Long-term leaseback obligation, net of current portion | 44,542 | 136,513 |
Accumulated accrued interest, net of current portion | 24,155 | |
Unearned revenue, net of current portion | 111,564 | 37,977 |
Other long-term liabilities | 52,861 | 3,234 |
Total long-term liabilities | 611,407 | 1,219,795 |
Total liabilities | 839,814 | 1,539,102 |
Commitments and Contingencies | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock (par value $0.01, 100,000,000 preferred shares authorized and not issued as of December 31, 2022 and December 31, 2021) | ||
Common stock (par value $0.01, 750,000,000 common shares authorized as of December 31, 2022 and December 31, 2021. 25,155,928 and 25,056,009 shares issued; and 20,349,702 and 20,716,738 shares outstanding as of December 31, 2022 and December 31, 2021, respectively) | 203 | 207 |
Additional paid-in capital | 748,109 | 770,676 |
Accumulated other comprehensive loss | (74,209) | (71,455) |
Retained earnings | 1,886,311 | 1,388,595 |
Total stockholders' equity | 2,560,414 | 2,088,023 |
Total liabilities and stockholders' equity | $ 3,400,228 | $ 3,627,125 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
CONSOLIDATED BALANCE SHEETS | ||
Accumulated depreciation | $ 1,182,402 | $ 1,055,792 |
Accumulated amortization | $ 0 | $ 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 | 25,155,928 | 25,056,009 |
Common stock, shares outstanding | 20,349,702 | 20,716,738 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||
OPERATING REVENUES | $ 993,344 | $ 689,505 | $ 461,594 |
OPERATING EXPENSES | |||
Voyage expenses | (35,145) | (24,325) | (14,264) |
Vessel operating expenses | (158,972) | (135,872) | (110,946) |
Depreciation and amortization of right-of-use assets | (134,271) | (116,917) | (101,531) |
Amortization of deferred drydocking and special survey costs | (12,170) | (10,181) | (11,032) |
General and administrative expenses | (36,575) | (43,951) | (24,341) |
Gain on sale of vessels | 37,225 | ||
Income from Operations | 653,436 | 358,259 | 199,480 |
OTHER INCOME (EXPENSES): | |||
Interest income | 4,591 | 12,230 | 6,638 |
Interest expense | (62,141) | (68,991) | (53,502) |
Gain/(loss) on investments | (176,386) | 543,653 | |
Dividend income | 165,399 | 34,341 | |
Gain on debt extinguishment, net | 4,351 | 111,616 | |
Equity income on investments | 68,028 | 6,308 | |
Other finance expenses | (1,590) | (1,326) | (2,335) |
Other income/(expense), net | (6,578) | 4,543 | 593 |
Loss on derivatives | (3,622) | (3,622) | (3,632) |
Total Other Income/(Expenses), net | (75,976) | 700,472 | (45,930) |
Income before income taxes | 577,460 | 1,058,731 | 153,550 |
Income taxes | (18,250) | (5,890) | |
Net Income | $ 559,210 | $ 1,052,841 | $ 153,550 |
EARNINGS PER SHARE | |||
Basic earnings per share of common stock | $ 27.30 | $ 51.75 | $ 6.51 |
Diluted earnings per share of common stock | $ 27.28 | $ 51.15 | $ 6.45 |
Basic weighted average number of common shares (in thousands) | 20,481,894 | 20,345,394 | 23,588,994 |
Diluted weighted average number of common shares (in thousands) | 20,501,021 | 20,583,796 | 23,805,251 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net Income | $ 559,210 | $ 1,052,841 | $ 153,550 |
Other comprehensive income/(loss): | |||
Unrealized gain on available for sale securities | 20,803 | 26,633 | |
Reclassification to interest income | 9,211 | ||
Prior service cost of defined benefit plan | (14,184) | ||
Reclassification of prior service cost of defined benefit plan | 7,808 | ||
Amortization of deferred realized losses on cash flow hedges | 3,622 | 3,622 | 3,632 |
Total Other Comprehensive Income/(Loss) | (2,754) | 15,214 | 30,265 |
Comprehensive Income | $ 556,456 | $ 1,068,055 | $ 183,815 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional paid-in capital | Accumulated other comprehensive loss | Retained earnings | Total |
Balance at Dec. 31, 2019 | $ 248 | $ 785,274 | $ (116,934) | $ 213,102 | $ 881,690 |
Balance (in shares) at Dec. 31, 2019 | 24,789,000 | ||||
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) | (4,339,000) | ||||
Stock compensation | 1,199 | 1,199 | |||
Stock compensation (in shares) | (1,000) | ||||
Net movement in other comprehensive income (loss) | 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 | 20,449,000 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 1,052,841 | 1,052,841 | |||
Dividends | (30,898) | (30,898) | |||
Stock compensation | $ 3 | 15,275 | 15,278 | ||
Stock compensation (in shares) | 268,000 | ||||
Issuance of common stock | 11 | 11 | |||
Net movement in other comprehensive income (loss) | 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 | 20,717,000 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 559,210 | 559,210 | |||
Dividends | (61,494) | (61,494) | |||
Repurchase of common stock | $ (5) | (28,548) | $ (28,553) | ||
Repurchase of common stock (in shares) | (467,000) | (466,955) | |||
Stock compensation | $ 1 | 5,971 | $ 5,972 | ||
Stock compensation (in shares) | 100,000 | ||||
Issuance of common stock | 10 | 10 | |||
Net movement in other comprehensive income (loss) | (2,754) | (2,754) | |||
Balance at Dec. 31, 2022 | $ 203 | $ 748,109 | $ (74,209) | $ 1,886,311 | $ 2,560,414 |
Balance (in shares) at Dec. 31, 2022 | 20,350,000 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 1 Months Ended | 12 Months Ended | |||||||
Nov. 30, 2022 | Aug. 31, 2022 | May 31, 2022 | Feb. 28, 2022 | Nov. 30, 2021 | Aug. 31, 2021 | May 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | |||||||||
Dividends (in US$ per share) | $ 0.75 | $ 0.75 | $ 0.75 | $ 0.75 | $ 0.50 | $ 0.50 | $ 0.50 | $ 3 | $ 1.50 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | |||
Net income | $ 559,210 | $ 1,052,841 | $ 153,550 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization of right-of-use assets | 134,271 | 116,917 | 101,531 |
Amortization of deferred drydocking and special survey costs | 12,170 | 10,181 | 11,032 |
Amortization of assumed time charters | (56,699) | (27,614) | |
Amortization of finance costs | 8,564 | 11,599 | 11,657 |
Exit fee accrued on debt | 149 | 521 | |
Debt discount amortization | 2,956 | 4,314 | 5,690 |
Prior service cost and periodic cost | 7,846 | ||
Loss/(gain) on investments | 176,386 | (543,653) | |
Equity income on investments | (68,028) | (6,308) | |
Gain on debt extinguishment | (4,351) | (111,616) | |
Gain on sale of vessels | (37,225) | ||
PIK interest | 726 | 2,911 | |
Payments for drydocking and special survey costs deferred | (29,939) | (4,643) | (16,916) |
Stock based compensation | 5,972 | 15,278 | 1,199 |
Amortization of deferred realized losses on interest rate swaps | 3,622 | 3,622 | 3,632 |
(Increase)/Decrease in: | |||
Accounts receivable | 1,483 | 786 | (411) |
Inventories | (3,520) | (2,068) | (1,125) |
Prepaid expenses | 720 | (1,096) | 603 |
Due from related parties | (12,127) | (588) | 86 |
Other assets, current and non-current | (52,347) | (41,270) | 3,635 |
Increase/(Decrease) in | |||
Accounts payable | 5,580 | 4,518 | (181) |
Accrued liabilities | 280 | 8,787 | 2,433 |
Unearned revenue, current and long-term | 158,255 | (832) | (7,438) |
Other liabilities, current and long-term | 53,634 | (199) | (422) |
Net cash provided by operating activities | 934,741 | 428,111 | 265,679 |
Cash flows from investing activities | |||
Vessels additions and advances for vessels under construction | (199,135) | (355,720) | (170,661) |
Proceeds and advances received from sale of vessels | 129,069 | ||
Investments | 246,638 | 196,350 | (75) |
Acquired cash and cash equivalents | 16,222 | ||
Net cash provided by/(used in) investing activities | 176,572 | (143,148) | (170,736) |
Cash flows from financing activities | |||
Proceeds from long-term debt, net | 182,726 | 1,105,311 | 69,850 |
Payments of long-term debt | (892,928) | (1,343,725) | (146,747) |
Proceeds from sale-leaseback of vessels | 135,000 | 139,080 | |
Payments of leaseback obligation | (153,546) | (53,799) | (153,904) |
Dividends paid | (61,483) | (30,887) | |
Payments of accumulated accrued interest | (3,373) | (10,361) | (25,639) |
Finance costs | (16,244) | (22,409) | (19,963) |
Repurchase of common stock | (28,553) | (31,127) | |
Net cash used in financing activities | (973,401) | (220,870) | (168,450) |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 137,912 | 64,093 | (73,507) |
Cash, cash equivalents and restricted cash, beginning of year | 129,756 | 65,663 | 139,170 |
Cash, cash equivalents and restricted cash, end of year | 267,668 | 129,756 | 65,663 |
Supplemental cash flow information | |||
Cash paid for interest, net of amounts capitalized | $ 53,954 | $ 42,836 | $ 35,215 |
Basis of Presentation and Gener
Basis of Presentation and General Information | 12 Months Ended |
Dec. 31, 2022 | |
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”). 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. Impact of the war in Ukraine on the Company’s Business The current conflict between Russia and Ukraine, and related sanctions imposed by the U.S., EU and others, adversely affect the crewing operations of the Company’s Manager, which has crewing offices in St. Petersburg, Odessa and Marioupol (damaged by the war), and trade patterns involving ports in the Black Sea or Russia, and as well as impacting world energy supply and creating uncertainties in the global economy, which in turn impact containership demand. The extent of the impact will depend largely on future developments. 1. Basis of Presentation and General Information (Continued) As of December 31, 2022, 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 Kota Manzanillo (ex 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 Kota Santos (ex 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 (2) 2001 6,422 Leo Shipping and Trading S.A. October 29, 2015 Leo C (2) 2002 6,422 Actaea Company Limited October 14, 2014 Zim Savannah 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 2002 5,544 Oceancarrier (No. 4) Corp. July 6, 2021 Wide Alpha 2014 5,466 Oceancarrier (No. 5) Corp. July 6, 2021 Stephanie C (ex 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 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 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 2001 2,524 Trindade Maritime Company April 10, 2013 Amalia C (3) 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 Phoenix D (ex 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 Vessels under construction Boxsail (No. 1) Corp. March 4, 2022 Hull No. C7100-7 2024 7,100 Boxsail (No. 2) Corp. March 4, 2022 Hull No. C7100-8 2024 7,100 Teushipper (No. 1) Corp. March 14, 2022 Hull No. HN4009 2024 8,000 Teushipper (No. 2) Corp. March 14, 2022 Hull No. HN4010 2024 8,000 Teushipper (No. 3) Corp. March 14, 2022 Hull No. HN4011 2024 8,000 Teushipper (No. 4) Corp. March 14, 2022 Hull No. HN4012 2024 8,000 (1) Twenty-foot equivalent unit, the international standard measure for containers and containership capacity. (2) The Company completed the sale of the Catherine C and the Leo C in November 2022. (3) The Company held the Amalia C for sale as of December 31, 2022 and completed the sale in January 2023. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Significant Accounting Policies | |
Significant Accounting Policies | 2. Significant Accounting Policies Principles of Consolidation: 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: Use of Estimates: Reclassifications in Other Comprehensive Income/(Loss): Year ended December 31, Location of Reclassification into Income 2022 2021 2020 Amortization of deferred realized losses on cash flow hedges Loss on derivatives $ 3,622 $ 3,622 $ 3,632 Reclassification of prior service cost of defined benefit plan Other income/(expense), net 7,808 — — Reclassification to interest income Interest income — (9,211) — Total Reclassifications $ 11,430 $ (5,589) $ 3,632 2. Significant Accounting Policies (Continued) Foreign Currency Translation: Cash and Cash Equivalents: Restricted Cash: Accounts Receivable, Net: Insurance Claims: Prepaid Expenses and Inventories: 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 or under “Other non-current assets” if no related debt liability is drawn down at a period-end. 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: 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: 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: 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: Advances for Vessels under Construction: 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 a 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: 2. Significant Accounting Policies (Continued) Impairment of Long-lived Assets: As of December 31, 2022, 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 a number of factors and assumptions in its undiscounted projected net operating cash flow analysis including, 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 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, 2022, 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, 2022 and December 31, 2021, no impairment loss was identified. Business Combinations: Investments in Debt Securities: 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: 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 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 adopted by the Company on January 1, 2019, as the lease component is the predominant component in 2022, 2021 and 2020. 2. Significant Accounting Policies (Continued) Voyage Expenses: Vessel Operating Expenses: General and administrative expenses: Repairs and Maintenance: Income taxes: Troubled Debt Restructuring and Accumulated Accrued Interest: 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: 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: 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 following 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: Treasury Stock: 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”. Share based compensation represents the cost of shares and share options granted to employees of Danaos Shipping Company Limited (the “Manager”), executive officers and to directors, for their services, and is included under “General and administrative expenses” in the Consolidated Statements of Income. The shares are measured at their fair value equal to the market value of the Company’s common shares on the grant date. The shares that do not contain any future service vesting conditions are considered vested shares and the total fair value of such shares is expensed on the grant date. The shares that contain a time-based service vesting condition are considered non-vested shares on the grant date and a total fair value of such shares is recognized using the accelerated attribution method, which treats an award with multiple vesting dates as multiple awards and results in a front-loading of the costs of the award. Further, the Company accounts for restricted share award forfeitures upon occurrence. 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 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”. Executive Retirement Plan: The Company established defined benefit retirement plan for its executive officers in December 2022. The actuarial determination of the projected benefit obligation was determined by calculating the present value of the projected benefit at retirement based on service completed at the valuation date, which incorporates management’s best estimate of the discount rate, salary escalation rate and retirement ages of executive officers. The discount rate used to value the defined benefit obligation is derived based on high quality income investments with duration similar to the duration of the obligation. Prior service cost arising from the retrospective recognition of past service was recognized in the Other Comprehensive Income. Prior service cost reclassification and other gains or losses are recognized under “Other income/(expenses), net” in the Consolidated Statements of Income. The actuarially determined expense for current service is recognized under “General and administrative expenses” in the Consolidated Statements of Income. The actuarially determined net interest costs on the defined benefit plan obligation is recognized under “Other finance expenses” in the Consolidated Statements of Income. All actuarial remeasurements arising from defined benefit plan are recognized in full in the period in which they arise in the Other Comprehensive Income. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2022 | |
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 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 June 30, 2021 December 31, 2020 Net operating revenues $ 17,984 $ 31,844 Net income $ 8,091 $ 12,873 3. Acquisitions (Continued) 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 $20.3 million and $15.3 million for the year ended December 31, 2022 and the period ended December 31, 2021, respectively, and is presented under “Operating revenues” in the Consolidated Statements of Income. The aggregate future amortization of the assumed time charters amounting to $0.4 million is presented under current “Unearned revenue” as of December 31, 2022. In July 2022, the Company fully repaid the finance lease liability assumed in July 2021, related to the Gemini’s vessels Suez Canal Kota Lima (ex Genoa), 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, 2023, 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. |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 December 31, 2021 December 31, 2020 Cash and cash equivalents $ 267,668 $ 129,410 $ 65,663 Restricted cash — 346 — Total $ 267,668 $ 129,756 $ 65,663 The Company was required to maintain cash on a retention account as collateral for the then upcoming scheduled debt payments related to the now repaid Eurobank $30 mil. Facility, which was recorded in restricted cash under current assets as of December 31, 2021. |
Fixed Assets, net & Advances fo
Fixed Assets, net & Advances for Vessels under Construction | 12 Months Ended |
Dec. 31, 2022 | |
Fixed Assets, net & Advances for Vessels under Construction | |
Fixed Assets, net & Advances for Vessels under Construction | 5. Fixed Assets, net & Advances for Vessels under Construction Fixed assets, net consisted of the following (in thousands): Vessel Accumulated Net Book Costs Depreciation Value As of January 1, 2020 $ 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 Additions 4,580 — 4,580 Transfers from right-of-use assets and to vessel held for sale 79,179 (5,896) 73,283 Disposals (97,306) 10,500 (86,806) Depreciation — (131,214) (131,214) As of December 31, 2022 $ 3,903,896 $ (1,182,402) $ 2,721,494 On January 17, 2022, the Company entered into agreements to sell its vessels Catherine C Leo C Amalia C On April 1, 2022, the Company entered into contracts, as amended on April 21, 2022, for the construction of four 8,000 TEU container vessels for an aggregate purchase price of $372.7 million, out of which $145.9 million was advanced in 2022 and $226.8 million is expected to be paid at vessels delivery in 2024. On March 11, 2022, the Company entered into contracts for the construction of two 7,100 TEU container vessels for an aggregate purchase price of $156.0 million, out of which $39.0 million was advanced in 2022, $31.2 million is expected to be paid in 2023 and $85.8 million in 2024. Additionally, a supervision fee of $725 thousand per newbuilding vessel will be payable to Danaos Shipping Company Limited. Interest expense amounting to $5.0 million was capitalized to the vessels under construction in the year ended December 31, 2022 and none in the year ended December 31, 2021. On July 7, 2021, the Company entered into an agreement to acquire six 5,466 TEU sister vessels Wide Alpha, Stephanie C(ex 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 was 2.0 years at inception. The amortization of these assumed time charters amounted to $ 36.5 million and $ 12.3 million for the year ended December 31, 2022 and the period ended December 31, 2021, respectively, 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, 2022 is as follows (in thousands): Amortization for the periods ending: December 31, 2023 20,806 Until April 2024 4,534 Total 25,340 Less: Current portion (20,806) Total non-current portion $ 4,534 The amount of $20.8 million is presented under current “Unearned revenue” and $4.5 million under “Unearned revenue, net of current portion” in the Consolidated Balance Sheet as of December 31, 2022. 5. Fixed Assets, net & Advances for Vessels under Construction (Continued) As of December 31, 2022, 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 of December 31, 2022, 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, the Company concluded that no events and circumstances triggered the existence of potential impairment of the Company’s vessels as none of the vessels had current market value below its carrying value. As of December 31, 2022 and 2021, 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 $ 487.3 million and $504.1 million as of December 31, 2022 and December 31, 2021, 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 cyclical 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 with Oriental Fleet International Company Limited (“Oriental Fleet”) 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. On April 12, 2021, the Company entered into a sale and leaseback arrangement with 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. This leaseback liability was early repaid in full on May 12, 2022. Under these lease arrangements, the Company is required to be in compliance with the same financial covenants as required by the credit facilities under Note 10 “Long-Term Debt, net”. The carrying value of the two vessels subject to leasing obligations amounted to $248.2 million as of December 31, 2022. The scheduled leaseback instalments subsequent to December 31, 2022 are as follows (in thousands): Instalments due by period ended: December 31, 2023 $ 30,915 Until May 2024 46,249 Total leaseback instalments 77,164 Less: Imputed interest (4,239) Total leaseback obligation 72,925 Less: Deferred finance costs, net (914) Less: Current portion of long-term leaseback obligation (27,469) Long-term leaseback obligation, net of current portion $ 44,542 |
Deferred Charges, net
Deferred Charges, net | 12 Months Ended |
Dec. 31, 2022 | |
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, 2020 $ 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 Additions 29,939 Write-off (4,016) Amortization (12,170) As of December 31, 2022 $ 25,554 In November 2022, the Company wrote-off $4.0 million of drydocking deferred charges related to the sale of the vessels Catherine C Leo C - . 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. |
Other Current and Non-current A
Other Current and Non-current Assets | 12 Months Ended |
Dec. 31, 2022 | |
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): 2022 2021 Equity participation ZIM — $ 423,024 Straight-lining of revenue $ 22,007 18,997 Claims receivable 15,169 8,919 Vessel held for sale 3,297 — Other assets 7,332 8,192 Total current assets $ 47,805 $ 459,132 Straight-lining of revenue $ 83,873 $ 39,927 Other assets 6,050 1,812 Total non-current assets $ 89,923 $ 41,739 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 did 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 indicated the interest in equity may have been impaired and recorded an impairment loss of $28.7 million, thus reducing its book value to nil. On January 27, 2021, ZIM completed its initial public offering and listing on the New York Stock Exchange (“NYSE”) of its ordinary shares. Following this offering the Company owned 10,186,950 ordinary shares of ZIM. In 2021, the Company sold 3,000,000 of ordinary shares of ZIM resulting in net proceeds of $120.7 million. The fair value of the remaining 7,186,950 ordinary shares of ZIM amounting to $423.0 million, representing 6.1% of ZIM’s outstanding ordinary shares, was 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. Refer to Note 13, “Financial Instruments—Fair value of Financial Instruments”. In 2022, the Company sold all the remaining shareholding interest of 7,186,950 ZIM’s ordinary shares for net proceeds of $246.6 million. For the years ended December 31, 2022 and 2021, the Company recognized $176.4 million loss and $543.7 million gain on these shares, respectively. These gains/losses are reflected under “Gain/(loss) on investments” in the Consolidated Statements of Income. Additionally, the Company recognized dividend income on these shares amounting to $165.4 million and $34.3 million in the years ended December 31, 2022 and 2021, respectively, which is recognized under “Dividend income” in the Consolidated Statements of Income. Taxes withheld on dividend income amounted to $18.3 million and $5.9 million in the years ended December 31, 2022 and 2021, respectively, and are reflected under “Income taxes” in the Consolidated Statements 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. The Company recognized $6.6 million and $4.3 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 and 2020, 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 and 2020, respectively, the Company recorded an amount of $1.1 million and $5.4 million of unearned revenue amortization in “Operating revenues”. As of December 31, 2021 the outstanding balance was nil. 7. Other Current and Non current Assets (Continued) 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 with original maturity in December 2022 and 4.6 million HMM shares. On September 1, 2016, the Company sold all HMM shares and the net proceeds were used to repay outstanding debt obligations. 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. Furthermore, for the years ended December 31, 2021 and 2020, the Company recognized $5.0 million and $2.1 million, respectively, in relation to total interest income and fair value unwinding of HMM notes under “Interest income” in the Consolidated Statements of Income. 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, 2022, 2021 and 2020, the Company recorded an amount of $8.2 million of unearned revenue amortization. As of December 31, 2022, the outstanding balances of the current and non-current portion of unearned revenue in relation to HMM amounted to $8.2 million and $2.5 million, respectively. As of December 31, 2021, the corresponding outstanding balances of the current and non-current portion of unearned revenue amounted to $8.2 million and $10.7 million, respectively. 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 gains/losses on available-for-sale debt securities for the years ended December 31, 2021 and December 31, 2020 (in thousands): Gain/(loss) on available for sale securities Balance as of January 1, 2020 $ (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 — |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Liabilities | |
Accrued Liabilities | 8. Accrued Liabilities Accrued liabilities consisted of the following (in thousands): 2022 2021 Accrued payroll $ 140 $ 1,001 Accrued interest 8,267 11,873 Accrued dry-docking expenses 2,332 280 Accrued expenses 10,623 7,692 Total $ 21,362 $ 20,846 Accrued expenses mainly consisted of accruals related to the operation of the Company’s fleet and other expenses as of December 31, 2022 and December 31, 2021. |
Lease Arrangements
Lease Arrangements | 12 Months Ended |
Dec. 31, 2022 | |
Lease Arrangements | |
Lease Arrangements | 9. Lease Arrangements Charters-out As of December 31, 2022, the Company generated operating revenues from its 69 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 three 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. In May 2022, the Company received $238.9 million of charter hire prepayment related to charter contracts for 15 of the Company’s vessels, representing partial prepayment of charter hire payable up to January 2027. The future minimum payments, expected to be received on non-cancellable time charters and bareboat charters classified as operating leases consisted of the following as of December 31, 2022 (in thousands): 2023 $ 785,714 2024 602,950 2025 332,957 2026 187,994 2027 145,562 Thereafter 34,054 Total future rentals $ 2,089,231 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. |
Long-Term Debt, net
Long-Term Debt, net | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 December 31, 2021 BNP Paribas/Credit Agricole $130 mil. Facility $ 120,000 — Alpha Bank $55.25 mil. Facility 55,250 — Citibank $382.5 mil. Revolving Credit Facility — — Senior unsecured notes 262,766 $ 300,000 Citibank/Natwest $815 mil. Facility — 774,250 Macquarie Bank $58 mil. Facility — 45,600 SinoPac $13.3 mil. Facility — 10,800 Eurobank $30.0 mil. Facility — 21,375 Fair value of debt adjustment — (9,990) Total long-term debt $ 438,016 $ 1,142,035 Less: Deferred finance costs, net (8,076) (28,369) Less: Current portion (27,500) (95,750) Total long-term debt net of current portion and deferred finance costs $ 402,440 $ 1,017,916 10. Long-Term Debt, net (Continued) In May 2022, the Company early extinguished $270.0 million of the outstanding Natwest loan principal of the Citibank/Natwest $815 mil. Facility, which reduced the future quarterly instalments of the remaining Citibank facility to $12.9 million and the balloon payment at maturity was reduced to $309.0 million. Additionally, the reference to LIBOR was replaced with daily non-cumulative compounded secured overnight financing rate administered and published by the Federal Reserve Bank of New York (“SOFR”) plus credit spread adjustment. In the second quarter of 2022, the Company also early extinguished (i) $43.0 million loan outstanding with Macquarie Bank (ii) $20.6 million loan outstanding with Eurobank and (iii) $9.8 million loan outstanding with SinoPac. In June 2022, the Company drew down $130.0 million of senior secured term loan facility from BNP Paribas and Credit Agricole, which is secured by six 5,466 TEU sister vessels acquired in 2021. This facility is repayable in eight quarterly instalments of $5.0 million, twelve quarterly instalments of $1.9 million together with a balloon payment of $67.2 million payable over five-year term. The facility bears interest at SOFR plus a margin of 2.16% as adjusted by the sustainability margin adjustment. In December 2022, the Company early extinguished the remaining $437.75 million of the Citibank/Natwest $815 mil. Facility and replaced it with Citibank of up to $382.5 mil. Revolving Credit Facility, out of which nil is drawn down as of December 31, 2022 and with Alpha Bank $55.25 mil. Facility, which was drawn down in full and outstanding as of December 31, 2022. Citibank $ 382.5 mil. Revolving Credit Facility is reducing and repayable over 5 years in 20 quarterly reductions of $ 11.25 million each together with a final reduction of $ 157.5 million at maturity in December 2027. This facility bears interest at SOFR plus a margin of 2.0 % and commitment fee of 0.8 % on any undrawn amount and is secured by sixteen of the Company’s vessels. Alpha Bank $ 55.25 mil. Facility is repayable over 5 years with 20 consecutive quarterly instalments of $ 1.875 million each, together with a balloon payment of $ 17.75 million at maturity in December 2027. This facility bears interest at SOFR plus a margin of 2.3 % and is secured by two of the Company’s vessels. The above debt extinguishments and the extinguishment of the Oriental Fleet leaseback arrangement (see Note 5 “Fixed Assets, net & Advances for Vessels under Construction”) resulted in a total net gain on debt extinguishment of $4.4 million in the year ended December 31, 2022 compared to total net gain on debt extinguishment of $111.6 million related to the debt refinancing on April 12, 2021. The Company incurred interest expense amounting to $55.7 million (including interest on leaseback obligations), out of which $5.0 million was capitalized in the year ended December 31, 2022 compared to $53.1 million of interest expense incurred (including interest on leaseback obligations) and none capitalized in the year ended December 31, 2021 and $36.7 million of interest expense incurred (including interest on leaseback obligations) and none capitalized in the year ended December 31, 2020. Total interest paid, net of amounts capitalized (including interest on leaseback obligations) during the years ended December 31, 2022, 2021 and 2020 was $54.0 million, $42.8 million and $35.2 million, respectively. The weighted average interest rate on long-term borrowings (including leaseback obligations) for the years ended December 31, 2022, 2021 and 2020 was 5.3%, 4.4% and 4.6%, respectively. As of December 31, 2022, there was a $382.5 million remaining borrowing availability under the Company’s Citibank $382.5 mil. Revolving Credit Facility. Alpha Bank $55.25 mil. Facility and Citibank $382.5 mil. Revolving Credit Facility contain a requirement to maintain minimum fair market value of collateral vessels to loan value coverage of 120% and the BNP Paribas/Credit Agricole $130 mil. Facility of 125%. Additionally, these facilities require to maintain the following financial covenants: (i) minimum liquidity of $30.0 million; (ii) maximum consolidated debt (less cash and cash equivalents) to consolidated EBITDA ratio of 6.5 x; and (iii) minimum consolidated EBITDA to net interest expense ratio of 2.5 x. 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, 2022 and December 31, 2021. Twenty-four of the Company’s vessels having a net carrying value of $1,592.4 million as of December 31, 2022, were subject to first preferred mortgages as collateral to the Company’s credit facilities other than Senior unsecured notes. 10. Long-Term Debt, net (Continued) 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. In December 2022, the Company repurchased $ 37.2 million aggregate principal amount of its unsecured senior notes in a privately negotiated transaction. 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 effective interest method. Principal Payments The scheduled debt maturities of long-term debt subsequent to December 31, 2022 are as follows (in thousands): Principal Payments due by period ended repayments December 31, 2023 $ 27,500 December 31, 2024 21,300 December 31, 2025 15,100 December 31, 2026 15,100 December 31, 2027 96,250 Thereafter 262,766 Total long-term debt $ 438,016 2021 Refinancing On April 12, 2021, the Company consummated the refinancing of the existing 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 amounting to $294.4 million from the $300 million Senior Notes, to refinance the existing 2018 credit facilities. The Citibank/Natwest $815 million senior secured credit facility with four-year term was 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 bore interest at LIBOR plus a margin of 2.50% . The Company fully repaid Sinosure Cexim – Citibank – ABN Amro facility on March 18, 2021. The vessels CMA CGM Tancredi, CMA CGM Samson CMA CGM Bianca CMA CGM Melisande and CMA CGM Attila Additionally, on July 1, 2021, the Company assumed outstanding principal of a Eurobank facility from Gemini related to the vessels Belita, Leo C Catherine C 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 existing 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 existing 2018 credit facilities and were payable in eight quarterly instalments. An outstanding amount of $6.0 million was presented under “Other current liabilities” and $3.0 million under “Other long-term liabilities” as of December 31, 2021. There is no remaining outstanding amount as of December 31, 2022, as these additional fees were paid together with the early extinguishment of these facilities in 2022. 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 continued to be recognized in the income statement until May 2022 when all the remaining outstanding Natwest loan principal of the Citibank/Natwest $815 mil. Facility was early extinguished and then remaining amount of the accumulated accrued interest of $26.9 million was recognized in the gain on debt extinguishment. 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. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions | |
Related Party Transactions | 11. Related Party Transactions Management Services: On August 10, 2018, the term of the Company’s management agreement with the Manager was extended until December 31, 2024. 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, a fee of 1.25% on gross freight, charter hire, ballast bonus and demurrage with respect to each vessel in the fleet, a fee of 0.5% based on the contract price of any vessel bought and sold by the Manager on the Company’s behalf and a supervision fee of $725 thousand per vessel under construction are due to the Manager over the construction period starting from steel cutting. Management fees in 2022 amounted to approximately $21.9 million (2021: $19.9 million, 2020: $17.7 million), which are presented under “General and administrative expenses” in the Consolidated Statements of Income. Commissions to the Manager in 2022 amounted to approximately $14.6 million (2021: $10.4 million, 2020: $5.7 million), which are presented under “Voyage expenses” in the Consolidated Statements of Income. Commission of 0.5% on the contract price of the vessels sold in 2022 amounted to approximately $0.7 million presented under “Gain on sale of vessels” (2021: $1.3 million, 2020: $0.7 million were capitalized to the cost of newly acquired vessels). 11. Related Party Transactions (Continued) 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 $34.0 million and $21.9 million as of December 31, 2022 and 2021, 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”). The Company employs its executive officers. The executive officers received an aggregate of $2.1 million (€2.0 million), $2.1 million (€1.8 million) and $1.8 million (€1.5 million) for the years ended December 31, 2022, 2021 and 2020, respectively. Prior service costs related to a defined benefit plan of $14.2 million were recognized in the other comprehensive income in the year ended December 31, 2022. Advances related to this plan amounting to $7.8 million were exercised in the period ended December 31, 2022 (refer to Note 19 “Executive Retirement Plan”), out of which $6.8 million remain unpaid and are presented under “Other current liabilities” as of December 31, 2022. Additionally, an amount of $0.1 million was due to executive officers and is presented under “Accounts payable” in the Consolidated Balance Sheets as of December 31, 2022 and December 31, 2021, respectively. The Company recognized non-cash share-based compensation expense in respect of awards to executive officers of $5.4 million, $11.8 million and $1.0 million in the years ended December 31, 2022, 2021, and 2020, 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, 2022, 2021 and 2020 the Company paid premiums to The Swedish Club of $6.6 million, $5.2 million and $4.3 million, respectively, which are presented under “Vessel operating expenses” in the Consolidated Statements of Income. As of December 31, 2022 and 2021, the Company had payable to The Swedish Club amounting to $1.0 million and nil, respectively. |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2022 | |
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 2022. 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 $18.3 million and $5.9 million taxes withheld on dividend income earned on the Company’s investments in the year ended December 31, 2022 and 2021, respectively. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
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: Concentration of Credit Risk: Fair Value: Interest Rate Swaps: Fair Value of Financial Instruments The estimated fair values of the Company’s financial instruments are as follows: As of December 31, 2022 As of December 31, 2021 Book Value Fair Value Book Value Fair Value (in thousands of $) Cash and cash equivalents $ 267,668 $ 267,668 $ 129,410 $ 129,410 Restricted cash (2) — — $ 346 $ 346 Equity participation ZIM — — $ 423,024 $ 423,024 Secured long-term debt, including current portion (1) $ 175,250 $ 175,250 $ 842,035 $ 842,035 Unsecured long-term debt (1) $ 262,766 $ 255,868 $ 300,000 $ 300,000 13. Financial Instruments (Continued) 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, 2022 (in thousands): Fair Value Measurements as of December 31, 2022 Total (Level I) (Level II) (Level III) (in thousands of $) Cash and cash equivalents $ 267,668 $ 267,668 $ — $ — Secured long-term debt, including current portion (1) $ 175,250 $ — $ 175,250 $ — Unsecured long-term debt (1) $ 255,868 $ 255,868 $ — $ — 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 $) Cash and cash equivalents $ 129,410 $ 129,410 $ — $ — Restricted cash (2) $ 346 $ 346 $ — $ — Secured long-term debt, including current portion (1) $ 842,035 $ — $ 842,035 $ — Unsecured long-term debt (1) $ 300,000 $ — $ 300,000 $ — (1) Secured and unsecured long-term debt, including current portion is presented gross of deferred finance costs of $8.1 million and $28.4 million as of December 31, 2022 and December 31, 2021, respectively. The fair value of the Company’s secured debt is estimated based on currently available debt with similar contract terms, interest rate and remaining maturities and does not include amounts related to the accumulated accrued interest. (2) The Company was required to maintain cash on a retention account as collateral for the then upcoming scheduled debt payments related to the now repaid the Eurobank $30 mil. Facility, which was recorded in restricted cash under current assets as of December 31, 2021. |
Operating Revenue
Operating Revenue | 12 Months Ended |
Dec. 31, 2022 | |
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 2022 2021 2020 CMA CGM 26 % 30 % 36 % HMM Korea 12 % 17 % 24 % MSC 13 % — — |
Operating Revenue by Geographic
Operating Revenue by Geographic Location | 12 Months Ended |
Dec. 31, 2022 | |
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 2022 2021 2020 Australia—Asia $ 482,769 $ 323,172 $ 203,991 Europe 507,293 338,124 242,704 America 3,282 28,209 14,899 Total Revenue $ 993,344 $ 689,505 $ 461,594 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 and 2021. 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. The Company has outstanding commitments under vessel construction contracts and buyback obligations related to the sale and leaseback arrangements as of December 31, 2022, see Note 5 “Fixed Assets, Net & Advances for Vessels under Construction”. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
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 the Company’s 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 and 9,650 restricted shares vested on December 31, 2021. Additional 224 restricted shares were forfeited in the year ended December 31, 2022 and the remaining 19,076 restricted shares vested on December 31, 2022. 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. On December 14, 2022, the Company granted 100,000 fully vested shares to executive officers. The fair value of shares granted was calculated based on the closing trading price of the Company’s shares at the grant date. Stock based compensation expenses of $6.0 million, $15.3 million and $1.2 million were recognized under “General and administrative expenses” in the Company’s Consolidated Statements of Income in the years ended December 31, 2022, 2021 and 2020, respectively. The average price of issued shares was $54.40 per share and $66.00 per share in the years ended December 31, 2022 and 2021, respectively. No restricted shares were issued and outstanding as of December 31, 2022. As of December 31, 2021, 19,300 shares of restricted stock were issued and outstanding. 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 2022, 2021 and 2020, none of the directors elected to receive shares as compensation. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity | |
Stockholders' Equity | 18. Stockholders’ Equity In the year ended December 31, 2022, the Company declared and paid a dividend of $0.75 per share of common stock in each of February, May, August and November amounting to $61.5 million. In the year ended December 31, 2021, the Company declared a dividend of $0.50 per share of common stock in each of May, August and November amounting to $30.9 million. During 2020, the Company did not declare any dividends. The Company issued 143 and 146 shares of common stock at par value of $0.01 pursuant to its dividends reinvestment plan in the year ended December 31, 2022 and 2021, respectively, at an average price of $69.59 per share and $72.19 per share, respectively. In June 2022, the Company announced a share repurchase program of up to $100 million of the Company’s common stock. The Company repurchased 466,955 shares of the Company’s common stock in the open market for $28.6 million until December 31, 2022. 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. Refer to Note 17 “Stock Based Compensation” for information on the Company’s compensation plans. As of December 31, 2022, 25,155,928 shares were issued and 20,349,702 shares were outstanding; and 25,056,009 shares were issued and 20,716,738 shares were outstanding and as of December 31, 2021. As of December 31, 2022 and December 31, 2021, 4,806,226 and 4,339,271 shares were held as Treasury shares, respectively. 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. |
Executive Retirement Plan
Executive Retirement Plan | 12 Months Ended |
Dec. 31, 2022 | |
Executive Retirement Plan | |
Executive Retirement Plan | 19. Executive Retirement Plan Effective from December 14, 2022, the Company maintains a defined benefit retirement plan for its executive officers. The actuarial determination of the projected benefit obligation was determined by calculating the present value of the projected benefit at retirement based on service completed at the valuation date, which incorporates management’s best estimate of the discount rate of 3.8% (based on the Markit iBoxx EUR Corporates AA over 10 years index), salary escalation of up to 4.5% per annum,as well as assumed retirement ages of the executive officers between 65 to 74 years old. Prior service cost arising from the retrospective recognition of past service of $14.2 million was recognized in the Other Comprehensive Income, out of which advances amounting to $7.8 million were exercised in the period ended December 31, 2022. Defined benefit obligation of $6.4 million is presented under “Other long-term liabilities” as of December 31, 2022. The accumulated benefit obligation amounts to $3.0 million as of December 31, 2022. Prior service cost of this defined benefit obligation amounting to $7.8 million was reclassified to “ Other income/(expense) , net” for the year ended December 31, 2022 and $0.7 million is expected to be reclassified in the year ending December 31, 2023. Additionally, projected periodic benefit cost of $0.8 million is expected in the year ending December 31, 2023. The assumptions used are the best estimates chosen from a range of possible actuarial assumptions, which may not necessarily be borne out in practice. The average remaining duration of the defined benefit obligation is 8.1 years as of December 31, 2022. The benefits of $0.7 million and $2.8 million are expected to be paid in 2025 and 2030, respectively, based on the assumptions used by the actuaries to measure the benefit obligations as of December 31, 2022. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings per Share | |
Earnings per Share | 20. 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): 2022 2021 2020 Numerator: Net income $ 559,210 $ 1,052,841 $ 153,550 Denominator Basic weighted average common shares outstanding 20,482 20,345 23,589 Effect of dilutive securities: Dilutive effect of non-vested shares 19 239 216 Diluted weighted average common shares outstanding 20,501 20,584 23,805 Basic and diluted earnings per share amount related to a gain on troubled debt write-off amounting to $29.4 million and $111.6 million recorded in the year ended December 31, 2022 and 2021, respectively, is $1.43 and $1.43 per share, respectively, in the year ended December 31, 2022; and $5.49 and $5.42 per share, respectively, in the year ended December 31, 2021 (see Note 10). |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events | |
Subsequent Events | 21. Subsequent Events In January 2023, the Company gave early termination notice to Oriental Fleet about its intention to fully repay its outstanding leaseback obligations related to two of its vessels by May 12, 2023. See Note 5 “Fixed Assets, net & Advances for Vessels under Construction”. On February 14, 2023, the Company declared a dividend of $0.75 per share of common stock amounting to $15.3 million, which is payable on March 14, 2023, to holders of record on February 28, 2023. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation: 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: |
Use of Estimates | Use of Estimates: |
Reclassifications in Other Comprehensive Income/(Loss) | Reclassifications in Other Comprehensive Income/(Loss): Year ended December 31, Location of Reclassification into Income 2022 2021 2020 Amortization of deferred realized losses on cash flow hedges Loss on derivatives $ 3,622 $ 3,622 $ 3,632 Reclassification of prior service cost of defined benefit plan Other income/(expense), net 7,808 — — Reclassification to interest income Interest income — (9,211) — Total Reclassifications $ 11,430 $ (5,589) $ 3,632 |
Foreign Currency Translation | Foreign Currency Translation: |
Cash and Cash Equivalents | Cash and Cash Equivalents: |
Restricted Cash | Restricted Cash: |
Accounts Receivable, Net | Accounts Receivable, Net: |
Insurance Claims | Insurance Claims: |
Prepaid Expenses and Inventories | Prepaid Expenses and Inventories: |
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 or under “Other non-current assets” if no related debt liability is drawn down at a period-end. 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: 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: |
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: 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. 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: Advances for Vessels under Construction: |
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 a 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: |
Impairment of Long-lived Assets | Impairment of Long-lived Assets: As of December 31, 2022, 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 a number of factors and assumptions in its undiscounted projected net operating cash flow analysis including, 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 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, 2022, 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, 2022 and December 31, 2021, no impairment loss was identified. |
Business Combinations | Business Combinations: |
Investments in Debt Securities | Investments in Debt Securities: 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: 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 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 adopted by the Company on January 1, 2019, as the lease component is the predominant component in 2022, 2021 and 2020. |
Voyage Expenses | Voyage Expenses: |
Vessel Operating Expenses | Vessel Operating Expenses: |
General and administrative expenses | General and administrative expenses: |
Repairs and Maintenance | Repairs and Maintenance: |
Income taxes | Income taxes: |
Troubled Debt Restructuring and Accumulated Accrued Interest | Troubled Debt Restructuring and Accumulated Accrued Interest: 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: 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: 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 following 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: |
Treasury Stock | Treasury Stock: |
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. 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”. |
Executive Retirement Plan | Executive Retirement Plan: The Company established defined benefit retirement plan for its executive officers in December 2022. The actuarial determination of the projected benefit obligation was determined by calculating the present value of the projected benefit at retirement based on service completed at the valuation date, which incorporates management’s best estimate of the discount rate, salary escalation rate and retirement ages of executive officers. The discount rate used to value the defined benefit obligation is derived based on high quality income investments with duration similar to the duration of the obligation. Prior service cost arising from the retrospective recognition of past service was recognized in the Other Comprehensive Income. Prior service cost reclassification and other gains or losses are recognized under “Other income/(expenses), net” in the Consolidated Statements of Income. The actuarially determined expense for current service is recognized under “General and administrative expenses” in the Consolidated Statements of Income. The actuarially determined net interest costs on the defined benefit plan obligation is recognized under “Other finance expenses” in the Consolidated Statements of Income. All actuarial remeasurements arising from defined benefit plan are recognized in full in the period in which they arise in the Other Comprehensive Income. |
Basis of Presentation and Gen_2
Basis of Presentation and General Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Basis of Presentation and General Information | |
Schedule of the vessel owning companies (the "Danaos Subsidiaries") | As of December 31, 2022, 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 Kota Manzanillo (ex 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 Kota Santos (ex 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 (2) 2001 6,422 Leo Shipping and Trading S.A. October 29, 2015 Leo C (2) 2002 6,422 Actaea Company Limited October 14, 2014 Zim Savannah 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 2002 5,544 Oceancarrier (No. 4) Corp. July 6, 2021 Wide Alpha 2014 5,466 Oceancarrier (No. 5) Corp. July 6, 2021 Stephanie C (ex 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 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 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 2001 2,524 Trindade Maritime Company April 10, 2013 Amalia C (3) 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 Phoenix D (ex 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 Vessels under construction Boxsail (No. 1) Corp. March 4, 2022 Hull No. C7100-7 2024 7,100 Boxsail (No. 2) Corp. March 4, 2022 Hull No. C7100-8 2024 7,100 Teushipper (No. 1) Corp. March 14, 2022 Hull No. HN4009 2024 8,000 Teushipper (No. 2) Corp. March 14, 2022 Hull No. HN4010 2024 8,000 Teushipper (No. 3) Corp. March 14, 2022 Hull No. HN4011 2024 8,000 Teushipper (No. 4) Corp. March 14, 2022 Hull No. HN4012 2024 8,000 (1) Twenty-foot equivalent unit, the international standard measure for containers and containership capacity. (2) The Company completed the sale of the Catherine C and the Leo C in November 2022. (3) The Company held the Amalia C for sale as of December 31, 2022 and completed the sale in January 2023. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Significant Accounting Policies | |
Schedule of reclassifications out of accumulated other comprehensive loss | Year ended December 31, Location of Reclassification into Income 2022 2021 2020 Amortization of deferred realized losses on cash flow hedges Loss on derivatives $ 3,622 $ 3,622 $ 3,632 Reclassification of prior service cost of defined benefit plan Other income/(expense), net 7,808 — — Reclassification to interest income Interest income — (9,211) — Total Reclassifications $ 11,430 $ (5,589) $ 3,632 |
Acquisitions (Table)
Acquisitions (Table) | 12 Months Ended |
Dec. 31, 2022 | |
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 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 June 30, 2021 December 31, 2020 Net operating revenues $ 17,984 $ 31,844 Net income $ 8,091 $ 12,873 |
Gemini Shipholdings Corporation | |
Asset Acquisition [Line Items] | |
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 |
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 |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 December 31, 2021 December 31, 2020 Cash and cash equivalents $ 267,668 $ 129,410 $ 65,663 Restricted cash — 346 — Total $ 267,668 $ 129,756 $ 65,663 |
Fixed Assets, net & Advances _2
Fixed Assets, net & Advances for Vessels under Construction (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fixed Assets, net & Advances for Vessels under Construction | |
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, 2020 $ 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 Additions 4,580 — 4,580 Transfers from right-of-use assets and to vessel held for sale 79,179 (5,896) 73,283 Disposals (97,306) 10,500 (86,806) Depreciation — (131,214) (131,214) As of December 31, 2022 $ 3,903,896 $ (1,182,402) $ 2,721,494 |
Schedule of aggregate future amortization of unfavorable charters | Amortization for the periods ending: December 31, 2023 20,806 Until April 2024 4,534 Total 25,340 Less: Current portion (20,806) Total non-current portion $ 4,534 |
Schedule of leaseback instalments | Instalments due by period ended: December 31, 2023 $ 30,915 Until May 2024 46,249 Total leaseback instalments 77,164 Less: Imputed interest (4,239) Total leaseback obligation 72,925 Less: Deferred finance costs, net (914) Less: Current portion of long-term leaseback obligation (27,469) Long-term leaseback obligation, net of current portion $ 44,542 |
Deferred Charges, net (Tables)
Deferred Charges, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2020 $ 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 Additions 29,939 Write-off (4,016) Amortization (12,170) As of December 31, 2022 $ 25,554 |
Other Current and Non-current_2
Other Current and Non-current Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Current and Non-current Assets | |
Schedule of other current and non current assets | Other current and non-current assets consisted of the following (in thousands): 2022 2021 Equity participation ZIM — $ 423,024 Straight-lining of revenue $ 22,007 18,997 Claims receivable 15,169 8,919 Vessel held for sale 3,297 — Other assets 7,332 8,192 Total current assets $ 47,805 $ 459,132 Straight-lining of revenue $ 83,873 $ 39,927 Other assets 6,050 1,812 Total non-current assets $ 89,923 $ 41,739 |
Summary of gains/losses on available-for-sale debt securities | Gain/(loss) on available for sale securities Balance as of January 1, 2020 $ (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 — |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Liabilities | |
Schedule of accrued liabilities | Accrued liabilities consisted of the following (in thousands): 2022 2021 Accrued payroll $ 140 $ 1,001 Accrued interest 8,267 11,873 Accrued dry-docking expenses 2,332 280 Accrued expenses 10,623 7,692 Total $ 21,362 $ 20,846 |
Lease Arrangements (Tables)
Lease Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Lease Arrangements | |
Schedule of future minimum payments, expected to be received on non-cancellable time charters and bareboat charters | 2023 $ 785,714 2024 602,950 2025 332,957 2026 187,994 2027 145,562 Thereafter 34,054 Total future rentals $ 2,089,231 |
Long-Term Debt, net (Tables)
Long-Term Debt, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 December 31, 2021 BNP Paribas/Credit Agricole $130 mil. Facility $ 120,000 — Alpha Bank $55.25 mil. Facility 55,250 — Citibank $382.5 mil. Revolving Credit Facility — — Senior unsecured notes 262,766 $ 300,000 Citibank/Natwest $815 mil. Facility — 774,250 Macquarie Bank $58 mil. Facility — 45,600 SinoPac $13.3 mil. Facility — 10,800 Eurobank $30.0 mil. Facility — 21,375 Fair value of debt adjustment — (9,990) Total long-term debt $ 438,016 $ 1,142,035 Less: Deferred finance costs, net (8,076) (28,369) Less: Current portion (27,500) (95,750) Total long-term debt net of current portion and deferred finance costs $ 402,440 $ 1,017,916 |
Schedule of debt maturities of long-term debt | The scheduled debt maturities of long-term debt subsequent to December 31, 2022 are as follows (in thousands): Principal Payments due by period ended repayments December 31, 2023 $ 27,500 December 31, 2024 21,300 December 31, 2025 15,100 December 31, 2026 15,100 December 31, 2027 96,250 Thereafter 262,766 Total long-term debt $ 438,016 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments | |
Schedule of estimated fair values of the financial instruments | As of December 31, 2022 As of December 31, 2021 Book Value Fair Value Book Value Fair Value (in thousands of $) Cash and cash equivalents $ 267,668 $ 267,668 $ 129,410 $ 129,410 Restricted cash (2) — — $ 346 $ 346 Equity participation ZIM — — $ 423,024 $ 423,024 Secured long-term debt, including current portion (1) $ 175,250 $ 175,250 $ 842,035 $ 842,035 Unsecured long-term debt (1) $ 262,766 $ 255,868 $ 300,000 $ 300,000 |
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 not measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows as of December 31, 2022 (in thousands): Fair Value Measurements as of December 31, 2022 Total (Level I) (Level II) (Level III) (in thousands of $) Cash and cash equivalents $ 267,668 $ 267,668 $ — $ — Secured long-term debt, including current portion (1) $ 175,250 $ — $ 175,250 $ — Unsecured long-term debt (1) $ 255,868 $ 255,868 $ — $ — 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 $) Cash and cash equivalents $ 129,410 $ 129,410 $ — $ — Restricted cash (2) $ 346 $ 346 $ — $ — Secured long-term debt, including current portion (1) $ 842,035 $ — $ 842,035 $ — Unsecured long-term debt (1) $ 300,000 $ — $ 300,000 $ — (1) Secured and unsecured long-term debt, including current portion is presented gross of deferred finance costs of $8.1 million and $28.4 million as of December 31, 2022 and December 31, 2021, respectively. The fair value of the Company’s secured debt is estimated based on currently available debt with similar contract terms, interest rate and remaining maturities and does not include amounts related to the accumulated accrued interest. (2) The Company was required to maintain cash on a retention account as collateral for the then upcoming scheduled debt payments related to the now repaid the Eurobank $30 mil. Facility, which was recorded in restricted cash under current assets as of December 31, 2021. |
Operating Revenue (Tables)
Operating Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Operating Revenue | |
Schedule of operating revenue from significant customers (constituting more than 10% of total revenue) | Charterer 2022 2021 2020 CMA CGM 26 % 30 % 36 % HMM Korea 12 % 17 % 24 % MSC 13 % — — |
Operating Revenue by Geograph_2
Operating Revenue by Geographic Location (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 2022 2021 2020 Australia—Asia $ 482,769 $ 323,172 $ 203,991 Europe 507,293 338,124 242,704 America 3,282 28,209 14,899 Total Revenue $ 993,344 $ 689,505 $ 461,594 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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): 2022 2021 2020 Numerator: Net income $ 559,210 $ 1,052,841 $ 153,550 Denominator Basic weighted average common shares outstanding 20,482 20,345 23,589 Effect of dilutive securities: Dilutive effect of non-vested shares 19 239 216 Diluted weighted average common shares outstanding 20,501 20,584 23,805 |
Basis of Presentation and Gen_3
Basis of Presentation and General Information (Details) | Dec. 31, 2022 item $ / shares shares | Dec. 31, 2021 $ / 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 |
Hyundai Honour | |||
Property, Plant and Equipment | |||
TEU | 13,100 | ||
Hyundai Respect. | |||
Property, Plant and Equipment | |||
TEU | 13,100 | ||
Hyundai Smart. | |||
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 | ||
Catherine C | |||
Property, Plant and Equipment | |||
TEU | 6,422 | ||
Leo C | |||
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 | ||
Hull No. C7100-7 | |||
Property, Plant and Equipment | |||
TEU | 7,100 | ||
Hull No. C7100-8 | |||
Property, Plant and Equipment | |||
TEU | 7,100 | ||
Hull No. HN4009 | |||
Property, Plant and Equipment | |||
TEU | 8,000 | ||
Hull No. HN4010 | |||
Property, Plant and Equipment | |||
TEU | 8,000 | ||
Hull No. HN4011 | |||
Property, Plant and Equipment | |||
TEU | 8,000 | ||
Hull No. HN4012 | |||
Property, Plant and Equipment | |||
TEU | 8,000 |
Significant Accounting Polici_4
Significant Accounting Policies - Reclassifications in Other Comprehensive Income Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reclassifications in Other Comprehensive Income/(Loss) | |||
Loss on derivatives | $ (3,622) | $ (3,622) | $ (3,632) |
Reclassification out of accumulated other comprehensive income | |||
Reclassifications in Other Comprehensive Income/(Loss) | |||
Loss on derivatives | 11,430 | (5,589) | 3,632 |
Amortization of deferred realized losses on cash flow hedges | Reclassification out of accumulated other comprehensive income | |||
Reclassifications in Other Comprehensive Income/(Loss) | |||
Loss on derivatives | 3,622 | 3,622 | $ 3,632 |
Reclassification of prior service cost of defined benefit plan | Reclassification out of accumulated other comprehensive income | |||
Reclassifications in Other Comprehensive Income/(Loss) | |||
Loss on derivatives | $ 7,808 | ||
Reclassification to interest income | Reclassification out of accumulated other comprehensive income | |||
Reclassifications in Other Comprehensive Income/(Loss) | |||
Loss on derivatives | $ (9,211) |
Significant Accounting Polici_5
Significant Accounting Policies - Foreign Currency Translation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Foreign Currency Translation: | |||
Foreign currency exchange losses | $ 0.2 | $ 0.2 | $ 0.4 |
Significant Accounting Polici_6
Significant Accounting Policies - Cash (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash and Cash Equivalents: | |||
Cash and cash equivalents | $ 267,668 | $ 129,410 | $ 65,663 |
Restricted Cash: | |||
Debt repayments related to Eurobank | $ 30,000 |
Significant Accounting Polici_7
Significant Accounting Policies - Fixed Assets (Details) - item | 12 Months Ended | ||
Jul. 01, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Secondhand Market | |||
Property, Plant and Equipment | |||
Number of vessels acquired | 6 | 5 | |
Gemini Shipholdings Corporation | |||
Property, Plant and Equipment | |||
Number of vessels acquired | 5 | 5 |
Significant Accounting Polici_8
Significant Accounting Policies - Depreciation (Details) - Vessel | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Depreciation | |
Estimated useful life from the year built | 30 years |
Estimated Scrap Rate Per Ton | $ 300 |
Significant Accounting Polici_9
Significant Accounting Policies - Accounting for Special Survey and Drydocking Costs (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Vessel | |
Accounting for Special Survey and Drydocking Costs | |
Deferral and amortization period of survey and drydocking costs | 2 years 6 months |
Significant Accounting Polic_10
Significant Accounting Policies - Pension and Retirement Benefit Obligations-Crew (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Vessel | Maximum | |
Pension and Retirement Benefit Obligations-Crew: | |
On board period of crew under the short-term contracts | 7 months |
Significant Accounting Polic_11
Significant Accounting Policies - Impairment of Long-lived Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Minimum | ||
Impairment of Long-lived Assets: | ||
Average historical period for estimating time charter equivalent rates | 5 years | |
Maximum | ||
Impairment of Long-lived Assets: | ||
Average historical period for estimating time charter equivalent rates | 15 years | |
Vessel | ||
Impairment of Long-lived Assets: | ||
Term of multi-year fixed rate period charters for vessels in current fleet and contracted vessels | 1 year | |
Impairment loss | $ 0 | $ 0 |
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 |
Significant Accounting Polic_12
Significant Accounting Policies - Segment Reporting (Details) | 12 Months Ended |
Dec. 31, 2022 segment | |
Segment Reporting: | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
Significant Accounting Polic_13
Significant Accounting Policies - Equity Compensation Plan (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | 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 |
Significant Accounting Polic_14
Significant Accounting Policies - Troubled Debt Restructuring and Accumulated Accrued Interest (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Significant Accounting Policies | |
Future cash interest payments | $ 0 |
Acquisitions - Gemini Shipholdi
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, 2022 USD ($) | Dec. 31, 2021 USD ($) item | Jun. 30, 2021 | |
Asset Acquisition [Line Items] | |||||||
Aggregate gross purchase price | $ 31,000 | ||||||
Assumed time charter liabilities | $ 74,100 | ||||||
Weighted average remaining charter duration | 2 years | ||||||
Amortization of assumed time charter | $ 36,500 | $ 12,300 | |||||
Unearned revenue | $ 111,149 | $ 83,180 | |||||
Gemini Shipholdings Corporation | |||||||
Asset Acquisition [Line Items] | |||||||
Investment, ownership percentage | 100% | ||||||
Unearned revenue | $ 400 | ||||||
Gemini Shipholdings Corporation | |||||||
Asset Acquisition [Line Items] | |||||||
Percentage of voting interest acquired | 51% | 49% | |||||
Aggregate gross purchase price | $ 86,700 | ||||||
Number of vessels acquired | item | 5 | 5 | |||||
Gain on asset acquisition | $ 64,100 | ||||||
Assumed time charter liabilities | $ 36,001 | ||||||
Weighted average remaining charter duration | 1 year 4 months 24 days | ||||||
Amortization of assumed time charter | $ 20,300 | $ 15,300 | |||||
Virage International Ltd. | |||||||
Asset Acquisition [Line Items] | |||||||
Percentage of voting interest acquired | 51% | ||||||
Aggregate gross purchase price | $ 86,700 | ||||||
Danaos Management Support Pte. Limited | |||||||
Asset Acquisition [Line Items] | |||||||
Percentage of voting interest acquired | 100% | ||||||
Aggregate gross purchase price | $ 2,100 |
Acquisitions - Vessel owning su
Acquisitions - Vessel owning subsidiaries of Gemini (Details) - item | Dec. 31, 2022 | 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 |
Acquisitions - Consideration ex
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, 2022 | 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: | ||||||||
Vessels | $ 2,721,494 | $ 2,861,651 | $ 2,479,937 | $ 2,389,874 | ||||
Right-of-use assets | 79,442 | |||||||
Cash and cash equivalents | 267,668 | 129,410 | $ 65,663 | |||||
Current assets | 372,521 | 632,492 | ||||||
Assumed time charter liabilities | (74,100) | |||||||
Current liabilities | $ (228,407) | $ (319,307) | ||||||
Gemini Shipholdings Corporation | ||||||||
Asset Acquisition [Line Items] | ||||||||
Percentage of voting interest acquired | 51% | 49% | ||||||
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) | |||||||
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% | |||||||
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 |
Acquisitions - Business acquisi
Acquisitions - Business acquisition, pro forma information (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Asset Acquisition [Line Items] | ||||
Net operating revenues | $ 993,344 | $ 689,505 | $ 461,594 | |
Net income | $ 559,210 | $ 1,052,841 | 153,550 | |
Gemini Shipholdings Corporation | ||||
Asset Acquisition [Line Items] | ||||
Net operating revenues | $ 17,984 | 31,844 | ||
Net income | $ 8,091 | $ 12,873 |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash, Cash Equivalents and Restricted Cash | ||||
Cash and cash equivalents | $ 267,668 | $ 129,410 | $ 65,663 | |
Restricted cash | 346 | |||
Total | 267,668 | $ 129,756 | $ 65,663 | $ 139,170 |
Debt repayments related to Eurobank | $ 30,000 |
Fixed Assets, net & Advances _3
Fixed Assets, net & Advances for Vessels under Construction - Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Vessel Costs | |||
Balance at the beginning of the period | $ 3,917,443 | $ 3,421,897 | $ 3,230,303 |
Additions | 4,580 | 495,546 | 191,594 |
Transfers from right-of-use assets and to vessel held for sale | 79,179 | ||
Disposals | (97,306) | ||
Depreciation | 131,214 | 113,832 | 101,531 |
Balance at the end of the period | 3,903,896 | 3,917,443 | 3,421,897 |
Accumulated Depreciation | |||
Balance at the beginning of the period | (1,055,792) | (941,960) | (840,429) |
Transfers from right-of-use assets and to vessel held for sale | (5,896) | ||
Disposals | 10,500 | ||
Depreciation | (131,214) | (113,832) | (101,531) |
Balance at the end of the period | (1,182,402) | (1,055,792) | (941,960) |
Net Book Value | |||
Balance at the beginning of the period | 2,861,651 | 2,479,937 | 2,389,874 |
Additions | 4,580 | 495,546 | 191,594 |
Transfers from right-of-use assets and to vessel held for sale | 73,283 | ||
Disposals | (86,806) | ||
Depreciation | 131,214 | ||
Balance at the end of the period | $ 2,721,494 | $ 2,861,651 | $ 2,479,937 |
Fixed Assets, net & Right-of-us
Fixed Assets, net & Right-of-use Assets - Amortization of assumed time charters (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Amortization for the periods ending: | |
Assumed time charter liabilities | $ 74,100 |
Unearned revenue | |
Amortization for the periods ending: | |
Less: Current portion | (20,800) |
Unearned revenue, net of current portion | |
Amortization for the periods ending: | |
Total non-current portion | 4,500 |
TEU sister vessels | |
Amortization for the periods ending: | |
December 31, 2023 | 20,806 |
Until April 2024 | 4,534 |
Total | 25,340 |
Less: Current portion | (20,806) |
Total non-current portion | $ 4,534 |
Fixed Assets, net & Right-of-_2
Fixed Assets, net & Right-of-use Assets (Details) | 1 Months Ended | 12 Months Ended | ||||||||||
Apr. 01, 2022 USD ($) item | Mar. 11, 2022 USD ($) item | Sep. 30, 2021 USD ($) | Jul. 07, 2021 item | Apr. 12, 2021 USD ($) | May 12, 2020 USD ($) | Nov. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) item $ / T | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | May 31, 2022 USD ($) | Jan. 17, 2022 USD ($) | |
Fixed Assets, net & Advances for Vessels under Construction | ||||||||||||
Aggregate gross purchase price | $ 31,000,000 | |||||||||||
Interest capitalized | $ 5,000,000 | $ 0 | $ 0 | |||||||||
Gain on sale of vessels | 37,225,000 | |||||||||||
Amortization of assumed time charter | 36,500,000 | 12,300,000 | ||||||||||
Sale and leaseback arrangement term (in years) | 5 years | |||||||||||
Instalments due by 12-months period ended: | ||||||||||||
December 31, 2023 | 30,915,000 | |||||||||||
Until May 2024 | 46,249,000 | |||||||||||
Total leasing instalments | 77,164,000 | |||||||||||
Less: Imputed interest | (4,239,000) | |||||||||||
Total leasing obligation | 72,925,000 | |||||||||||
Less: Deferred finance costs, net | (914,000) | |||||||||||
Less: Current portion of long-term leaseback obligation | (27,469,000) | (85,815,000) | ||||||||||
Long-term leaseback obligation, net of current portion | 44,542,000 | 136,513,000 | ||||||||||
Property, Plant and Equipment, Additions | 4,580,000 | 495,546,000 | $ 191,594,000 | |||||||||
Assumed time charter liabilities | $ 74,100,000 | |||||||||||
Weighted average remaining period | 2 years | |||||||||||
Carrying value of vessels subject to leasing obligation | $ 248,200,000 | |||||||||||
Gross proceeds of sale and leaseback | $ 135,000,000 | |||||||||||
TEU sister vessels | ||||||||||||
Fixed Assets, net & Advances for Vessels under Construction | ||||||||||||
Number of TEU container vessels | item | 6 | |||||||||||
Aggregate gross purchase price | $ 260,000,000 | |||||||||||
TEU container vessels | ||||||||||||
Fixed Assets, net & Advances for Vessels under Construction | ||||||||||||
Number of TEU container vessels | item | 4 | 2 | ||||||||||
TEU | item | 8,000 | 7,100 | ||||||||||
Aggregate purchase price | $ 372,700,000 | $ 156,000,000 | ||||||||||
Aggregate gross purchase price | 145,900,000 | 39,000,000 | ||||||||||
Amount expected to be paid in 2023 | 31,200,000 | |||||||||||
Amount expected to be paid at vessels delivery in 2024 | $ 226,800,000 | 85,800,000 | ||||||||||
Supervision fee per vessel | $ 725,000 | |||||||||||
Interest capitalized | 5,000,000 | 0 | ||||||||||
Citibank/Natwest $815 mil. Facility | ||||||||||||
Fixed Assets, net & Advances for Vessels under Construction | ||||||||||||
Credit facility | $ 815,000,000 | $ 815,000,000 | ||||||||||
CPO Bremen | ||||||||||||
Fixed Assets, net & Advances for Vessels under Construction | ||||||||||||
TEU | item | 9,012 | |||||||||||
CPO Hamburg | ||||||||||||
Fixed Assets, net & Advances for Vessels under Construction | ||||||||||||
TEU | item | 9,012 | |||||||||||
Vessel | ||||||||||||
Fixed Assets, net & Advances for Vessels under Construction | ||||||||||||
Residual value of the fleet | $ 487,300,000 | $ 504,100,000 | ||||||||||
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 | |||||||||||
Hyundai Respect. | ||||||||||||
Fixed Assets, net & Advances for Vessels under Construction | ||||||||||||
TEU | item | 13,100 | |||||||||||
Hyundai Honour And Hyundai Respect | ||||||||||||
Fixed Assets, net & Advances for Vessels under Construction | ||||||||||||
Sale and leaseback arrangement term (in years) | 4 years | |||||||||||
Repurchase price | $ 36,000,000 | |||||||||||
Instalments due by 12-months period ended: | ||||||||||||
Vessels to be refinanced | 139,100,000 | |||||||||||
Wide Alpha | ||||||||||||
Fixed Assets, net & Advances for Vessels under Construction | ||||||||||||
TEU | item | 5,466 | |||||||||||
Wide Alpha | TEU sister vessels | ||||||||||||
Fixed Assets, net & Advances for Vessels under Construction | ||||||||||||
TEU | item | 5,466 | |||||||||||
Wide Bravo | ||||||||||||
Fixed Assets, net & Advances for Vessels under Construction | ||||||||||||
TEU | item | 5,466 | |||||||||||
Wide Bravo | TEU sister vessels | ||||||||||||
Fixed Assets, net & Advances for Vessels under Construction | ||||||||||||
TEU | item | 5,466 | |||||||||||
Maersk Euphrates | ||||||||||||
Fixed Assets, net & Advances for Vessels under Construction | ||||||||||||
TEU | item | 5,466 | |||||||||||
Maersk Euphrates | TEU sister vessels | ||||||||||||
Fixed Assets, net & Advances for Vessels under Construction | ||||||||||||
TEU | item | 5,466 | |||||||||||
Wide Hotel | ||||||||||||
Fixed Assets, net & Advances for Vessels under Construction | ||||||||||||
TEU | item | 5,466 | |||||||||||
Wide Hotel | TEU sister vessels | ||||||||||||
Fixed Assets, net & Advances for Vessels under Construction | ||||||||||||
TEU | item | 5,466 | |||||||||||
Wide India | ||||||||||||
Fixed Assets, net & Advances for Vessels under Construction | ||||||||||||
TEU | item | 5,466 | |||||||||||
Wide India | TEU sister vessels | ||||||||||||
Fixed Assets, net & Advances for Vessels under Construction | ||||||||||||
TEU | item | 5,466 | |||||||||||
Wide Juliet | ||||||||||||
Fixed Assets, net & Advances for Vessels under Construction | ||||||||||||
TEU | item | 5,466 | |||||||||||
Wide Juliet | TEU sister vessels | ||||||||||||
Fixed Assets, net & Advances for Vessels under Construction | ||||||||||||
TEU | item | 5,466 | |||||||||||
Catherine C and Leo C | ||||||||||||
Fixed Assets, net & Advances for Vessels under Construction | ||||||||||||
Aggregate gross consideration | $ 130,000,000 | |||||||||||
Gain on sale of vessels | $ 37,200,000 | |||||||||||
Amalia C | ||||||||||||
Fixed Assets, net & Advances for Vessels under Construction | ||||||||||||
TEU | item | 2,452 | |||||||||||
Aggregate gross consideration | $ 5,100,000 | |||||||||||
Advances for sale of vessels | $ 1,000,000 |
Deferred Charges, net (Details)
Deferred Charges, net (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 22, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Changes in deferred charges, net | ||||
Balance at the beginning of the period | $ 11,801 | |||
Amortization | (12,170) | $ (10,181) | $ (11,032) | |
Balance at the end of the period | 25,554 | 11,801 | ||
Drydocking and Special Survey Costs | ||||
Changes in deferred charges, net | ||||
Balance at the beginning of the period | 11,801 | 17,339 | 11,455 | |
Additions | 29,939 | 4,643 | 16,916 | |
Wrote-off amounts | $ 4,000 | |||
Amortization | (12,170) | (10,181) | (11,032) | |
Write-off | (4,016) | |||
Balance at the end of the period | $ 25,554 | $ 11,801 | $ 17,339 | |
Period of amortization for deferred costs | 2 years 6 months |
Other Current and Non-current_3
Other Current and Non-current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other Current and Non-current Assets | ||
Equity participation ZIM | $ 423,024 | |
Straight-lining of revenue | $ 22,007 | 18,997 |
Claims receivable | 15,169 | 8,919 |
Vessels held for sale | 3,297 | |
Other assets | 7,332 | 8,192 |
Total current assets | 47,805 | 459,132 |
Straight-lining of revenue non-current | 83,873 | 39,927 |
Other non-current assets | 6,050 | 1,812 |
Total non-current assets | $ 89,923 | $ 41,739 |
Other Current and Non-current_4
Other Current and Non-current Assets - ZIM (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Mar. 31, 2020 USD ($) | Jul. 31, 2014 USD ($) item | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) | Dec. 31, 2016 USD ($) | Jan. 27, 2021 shares | |
Schedule Of Other Assets [Line Items] | |||||||||
Total gain on ZIM ordinary shares | $ (176,386) | $ 543,653 | |||||||
Non-current portion of unearned revenue | 111,564 | 37,977 | |||||||
Current portion of unearned revenue | $ 111,149 | $ 83,180 | |||||||
ZIM | |||||||||
Schedule Of Other Assets [Line Items] | |||||||||
Ordinary shares owned | shares | 7,186,950 | 7,186,950 | 10,186,950 | ||||||
Fair value of shareholding interest | $ 423,000 | ||||||||
Ordinary shares sold | shares | 3,000,000 | ||||||||
Net proceeds from sale of ordinary shares | $ 246,600 | $ 120,700 | |||||||
Equity participation ZIM | $ 0 | ||||||||
Total gain on ZIM ordinary shares | (176,400) | 543,700 | |||||||
Dividend received | 165,400 | $ 34,300 | |||||||
Acquisition of additional shares | $ 75 | ||||||||
Impairment loss at reporting date | $ 28,700 | ||||||||
Equity participation (as a percent) | 10.20% | 6.10% | |||||||
Income tax withheld on dividend income amount | $ 18,300 | $ 5,900 | |||||||
ZIM | |||||||||
Schedule Of Other Assets [Line Items] | |||||||||
Non-current portion of unearned revenue | 0 | ||||||||
Interest income from fair value unwinding | 6,600 | $ 4,300 | |||||||
Deferred revenue recorded | $ 39,100 | ||||||||
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 | ||||||||
Series 1 and Series 2 Notes | ZIM | |||||||||
Schedule Of Other Assets [Line Items] | |||||||||
Proceeds received from mandatory repayment of notes | $ 47,200 | ||||||||
Accrued interest received | $ 6,400 | ||||||||
Operating revenue | ZIM | |||||||||
Schedule Of Other Assets [Line Items] | |||||||||
Recognized unearned revenue | $ 1,100 | $ 5,400 |
Other Current and Non-current_5
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jul. 18, 2016 | |
Schedule Of Other Assets [Line Items] | ||||||
Current portion of unearned revenue | $ 111,149 | $ 83,180 | ||||
Non-current portion of unearned revenue | 111,564 | 37,977 | ||||
HMM | ||||||
Schedule Of Other Assets [Line Items] | ||||||
Shares received from charter restructuring | 4.6 | |||||
Accrued interest received | $ 3,000 | 1,100 | ||||
Interest income from fair value unwinding | 5,000 | $ 2,100 | ||||
Unearned revenue | $ 75,600 | |||||
Current portion of unearned revenue | 8,200 | 8,200 | ||||
Non-current portion of unearned revenue | 2,500 | 10,700 | ||||
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 | |||||
Operating revenue | HMM | ||||||
Schedule Of Other Assets [Line Items] | ||||||
Recognized unearned revenue | $ 8,200 | $ 8,200 | $ 8,200 |
Other Current and Non-current_6
Other Current and Non-current Assets - Available for sale category (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Unrealized loss on available for sale securities | ||
Beginning balance | $ (11,591) | $ (38,224) |
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 | $ 0 | $ (11,591) |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accrued Liabilities | ||
Accrued payroll | $ 140 | $ 1,001 |
Accrued interest | 8,267 | 11,873 |
Accrued dry-docking expenses | 2,332 | 280 |
Accrued expenses | 10,623 | 7,692 |
Total | $ 21,362 | $ 20,846 |
Lease Arrangements (Details)
Lease Arrangements (Details) $ in Thousands | 1 Months Ended | 12 Months Ended |
May 31, 2022 USD ($) item | Dec. 31, 2022 USD ($) item | |
Lease Arrangements | ||
Number of vessels , generated revenue results | item | 69 | |
Amount of charter hire prepayment received | $ 238,900 | |
Number of charter vessels | item | 15 | |
Future minimum payments, expected to be received | ||
2023 | $ 785,714 | |
2024 | 602,950 | |
2025 | 332,957 | |
2026 | 187,994 | |
2027 | 145,562 | |
Thereafter | 34,054 | |
Total future rentals | $ 2,089,231 |
Long-Term Debt, net - Schedule
Long-Term Debt, net - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | May 31, 2022 | Dec. 31, 2021 | Apr. 12, 2021 | Dec. 31, 2020 |
Long-Term Debt, net | |||||
Fair value of debt adjustment | $ (9,990) | ||||
Total long-term debt | $ 438,016 | 1,142,035 | |||
Less: Deferred finance costs, net | (8,076) | (28,369) | |||
Less: Current portion | (27,500) | (95,750) | |||
Total long-term debt net of current portion and deferred finance cost | $ 402,440 | $ 1,017,916 | |||
Weighted average interest rate on long-term borrowings (as a percent) | 5.30% | 4.40% | 4.60% | ||
BNP Paribas/Credit Agricole $130 mil. Facility | |||||
Long-Term Debt, net | |||||
Long-term debt | $ 120,000 | ||||
Credit facility | 130,000 | ||||
Alpha Bank $55.25 mil. Facility | |||||
Long-Term Debt, net | |||||
Long-term debt | 55,250 | ||||
Credit facility | 55,250 | ||||
Citibank $382.5 mil. Revolving Credit Facility | |||||
Long-Term Debt, net | |||||
Credit facility | 382,500 | ||||
Senior unsecured notes | |||||
Long-Term Debt, net | |||||
Long-term debt | 262,766 | $ 300,000 | |||
Citibank/Natwest $815 mil. Facility | |||||
Long-Term Debt, net | |||||
Long-term debt | 774,250 | ||||
Credit facility | 815,000 | $ 815,000 | |||
Macquarie Bank $58 mil. Facility | |||||
Long-Term Debt, net | |||||
Long-term debt | 45,600 | ||||
Credit facility | 58,000 | ||||
SinoPac $13.3 mil. Facility | |||||
Long-Term Debt, net | |||||
Long-term debt | 10,800 | ||||
Credit facility | 13,300 | ||||
Eurobank $30.0 mil. Facility | |||||
Long-Term Debt, net | |||||
Long-term debt | $ 21,375 | ||||
Credit facility | 30,000 | ||||
Citibank $382.5 mil. Revolving Credit Facility | |||||
Long-Term Debt, net | |||||
Credit facility | 382,500 | ||||
Citibank/Natwest $815 mil. Facility | |||||
Long-Term Debt, net | |||||
Credit facility | $ 815,000 | $ 815,000 |
Long-Term Debt, net - Additiona
Long-Term Debt, net - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Jul. 12, 2021 USD ($) | Apr. 12, 2021 USD ($) installment | Feb. 11, 2021 USD ($) | Dec. 31, 2022 USD ($) installment | Jun. 30, 2022 USD ($) item installment | May 31, 2022 USD ($) | Jun. 30, 2022 USD ($) item | Dec. 31, 2022 USD ($) item | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jul. 01, 2021 USD ($) | |
Line of Credit Facility [Line Items] | |||||||||||
Carrying value of vessels subject to first preferred mortgages as collateral to credit facilities | $ 1,592,400 | $ 1,592,400 | |||||||||
Deferred bond issuance costs | $ 8,100 | $ 8,100 | $ 28,400 | ||||||||
Number of vessels excluding sale and lease back arrangement | item | 24 | ||||||||||
Early repaid amount | $ 892,928 | 1,343,725 | $ 146,747 | ||||||||
Gain on debt extinguishment, net | $ 111,600 | 4,351 | 111,616 | ||||||||
Incurred interest expense | 55,700 | 36,700 | |||||||||
Interest expense capitalized | 5,000 | 0 | 0 | ||||||||
Interest expense incurred | 53,100 | ||||||||||
Interest paid | $ 54,000 | $ 42,800 | $ 35,200 | ||||||||
Weighted average interest rate on long-term borrowings (as a percent) | 5.30% | 5.30% | 4.40% | 4.60% | |||||||
Gemini Shipholdings Corporation | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Balloon payment at maturity | $ 13,500 | ||||||||||
Acquired outstanding principal balance | $ 23,100 | ||||||||||
TEU sister vessels | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
TEU | item | 5,466 | 5,466 | |||||||||
Citibank $382.5 mil. Revolving Credit Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Credit facility | $ 382,500 | $ 382,500 | |||||||||
Citibank/Natwest $815 mil. Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Credit facility | 815,000 | $ 815,000 | 815,000 | ||||||||
BNP Paribas/Credit Agricole $130 mil. Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Credit facility | 130,000 | 130,000 | |||||||||
Term of debt | 5 years | ||||||||||
Balloon payment at maturity | $ 67,200 | $ 67,200 | |||||||||
Long-term debt | $ 120,000 | $ 120,000 | |||||||||
Minimum percentage of fair market value of collateral vessels required to cover loan value | 125% | 125% | |||||||||
Early repaid amount | $ 130,000 | ||||||||||
BNP Paribas/Credit Agricole $130 mil. Facility | Eight Quarterly Installment | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Number of quarterly instalments | installment | 8 | ||||||||||
Amount of quarterly instalment | $ 5,000 | ||||||||||
BNP Paribas/Credit Agricole $130 mil. Facility | Twelve Quarterly Installments | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Number of quarterly instalments | installment | 12 | ||||||||||
Amount of quarterly instalment | $ 1,900 | ||||||||||
BNP Paribas/Credit Agricole $130 mil. Facility | Non-cumulative compounded RFR rate | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Spread on variable rate | 2.16% | ||||||||||
Alpha Bank $55.25 mil. Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Credit facility | $ 55,250 | $ 55,250 | |||||||||
Term of debt | 5 years | ||||||||||
Number of quarterly instalments | installment | 20 | ||||||||||
Amount of quarterly instalment | $ 1,875 | ||||||||||
Balloon payment at maturity | 17,750 | 17,750 | |||||||||
Long-term debt | $ 55,250 | 55,250 | |||||||||
Alpha Bank $55.25 mil. Facility | SOFR | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Spread on variable rate | 2.30% | ||||||||||
Citibank $382.5 mil. Revolving Credit Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Credit facility | $ 382,500 | 382,500 | |||||||||
Term of debt | 5 years | ||||||||||
Number of quarterly instalments | installment | 20 | ||||||||||
Amount of quarterly instalment | $ 11,250 | ||||||||||
Balloon payment at maturity | 157,500 | 157,500 | |||||||||
Outstanding balance | $ 0 | 0 | |||||||||
Commitment fee payable (as a percent) | 0.80% | ||||||||||
Remaining borrowing availability | $ 382,500 | 382,500 | |||||||||
Citibank $382.5 mil. Revolving Credit Facility | SOFR | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Spread on variable rate | 2% | ||||||||||
Senior unsecured notes | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Face amount of debt | $ 300,000 | ||||||||||
Fixed interest rate (as a percent) | 8.50% | ||||||||||
Percentage of principal amount redeemable from equity offering within 90 days of closing | 35% | ||||||||||
Redemption period of principal from closing of equity offering | 90 days | ||||||||||
Amount repurchased | $ 37,200 | 37,200 | |||||||||
Deferred bond issuance costs | $ 9,000 | ||||||||||
Long-term debt | 262,766 | 262,766 | $ 300,000 | ||||||||
Senior unsecured notes | Prior to March 1, 2024 | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Percent of equity offering proceeds within 90 days after the equity offering closing | 108.50% | ||||||||||
Senior unsecured notes | On or after March 1, 2024 | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Percent of principal amount being redeemed | 104.25% | ||||||||||
Senior unsecured notes | On or after March 1, 2025 | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Percent of principal amount being redeemed | 102.125% | ||||||||||
Senior unsecured notes | On or after March 1, 2026 | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Percent of principal amount being redeemed | 100% | ||||||||||
Senior unsecured notes | Maximum | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Face amount of debt | 300,000 | ||||||||||
Citibank/Natwest $815 mil. Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Credit facility | $ 815,000 | 815,000 | 815,000 | ||||||||
Term of debt | 4 years | ||||||||||
Number of quarterly instalments | installment | 16 | ||||||||||
Amount of quarterly instalment | $ 20,400 | 12,900 | |||||||||
Balloon payment at maturity | $ 489,000 | 309,000 | |||||||||
Outstanding balance | 437,750 | 437,750 | |||||||||
Long-term debt | 774,250 | ||||||||||
Early repaid amount | 270,000 | ||||||||||
Gain on debt extinguishment, net | 26,900 | ||||||||||
Citibank/Natwest $815 mil. Facility | LIBOR | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Spread on variable rate | 2.50% | ||||||||||
Macquarie Bank $58 mil. Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Credit facility | 58,000 | 58,000 | |||||||||
Long-term debt | 45,600 | ||||||||||
Early repaid amount | $ 43,000 | ||||||||||
SinoPac $13.3 mil. Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Credit facility | 13,300 | 13,300 | |||||||||
Long-term debt | 10,800 | ||||||||||
Early repaid amount | 9,800 | ||||||||||
Eurobank $30.0 mil. Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Credit facility | $ 30,000 | $ 30,000 | |||||||||
Long-term debt | $ 21,375 | ||||||||||
Early repaid amount | $ 20,600 | ||||||||||
Alpha Bank $55.25 mil. Facility and Citibank $382.5 mil. Revolving Credit Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Minimum percentage of fair market value of collateral vessels required to cover loan value | 120% | 120% | |||||||||
Alpha Bank $55.25 mil. Facility, Citibank $382.5 mil. Revolving Credit Facility and BNP Paribas/Credit Agricole $130 mil. Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Minimum liquidity | $ 30,000 | $ 30,000 | |||||||||
Maximum leverage ratio | 6.5 | 6.5 | |||||||||
Minimum interest coverage ratio | 2.5 | 2.5 |
Long-Term Debt, net - 2021 Refi
Long-Term Debt, net - 2021 Refinancing (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jul. 12, 2021 USD ($) | Apr. 12, 2021 USD ($) installment | May 31, 2022 USD ($) | Dec. 31, 2022 USD ($) installment | Dec. 31, 2021 USD ($) | Feb. 11, 2021 USD ($) | |
Line of Credit Facility [Line Items] | ||||||
Proceeds from sale and leaseback agreement | $ 135,000 | |||||
Gain on debt extinguishment, net | 111,600 | $ 4,351 | $ 111,616 | |||
Citibank/Natwest | Other current liabilities | ||||||
Line of Credit Facility [Line Items] | ||||||
Accrued additional fees | 6,000 | |||||
Citibank/Natwest | Other long-term liabilities | ||||||
Line of Credit Facility [Line Items] | ||||||
Accrued additional fees | 3,000 | |||||
2018 Credit Facilities | ||||||
Line of Credit Facility [Line Items] | ||||||
Legal and other fees | 2,300 | |||||
Loan arrangement fees deferred | $ 15,600 | |||||
RBS | ||||||
Line of Credit Facility [Line Items] | ||||||
Deferred gain on debt extinguishment | 33,300 | |||||
Citibank/Natwest $815 mil. Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility | $ 815,000 | 815,000 | ||||
Line of credit term | 4 years | |||||
Number of quarterly instalments | installment | 16 | |||||
Amount of quarterly instalment | $ 20,400 | $ 12,900 | ||||
Balloon payment at maturity | $ 489,000 | 309,000 | ||||
Additional fees amount | $ 12,000 | |||||
Additional fees number of quarterly payments | installment | 8 | |||||
Outstanding balance | $ 437,750 | |||||
Gain on debt extinguishment, net | $ 26,900 | |||||
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] | ||||||
Net proceeds | 294,400 | |||||
Face amount of debt | $ 300,000 | |||||
HSH Nordbank AG-Aegean Baltic Bank-Piraeus Bank | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit facility | 382,500 | |||||
HSH Nordbank AG-Aegean Baltic Bank-Piraeus Bank | HSH Nordbank AG-Aegean Baltic Bank-Piraeus Bank | ||||||
Line of Credit Facility [Line Items] | ||||||
Accumulated accrued interest | 75,300 | |||||
RBS | ||||||
Line of Credit Facility [Line Items] | ||||||
Accumulated accrued interest | $ 475,500 | |||||
Gain on debt extinguishment, net | $ 35,600 |
Long-Term Debt, net - Principal
Long-Term Debt, net - Principal Payments (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Scheduled maturities of long-term debt | |
December 31, 2023 | $ 27,500 |
December 31, 2024 | 21,300 |
December 31, 2025 | 15,100 |
December 31, 2026 | 15,100 |
December 31, 2027 | 96,250 |
Thereafter | 262,766 |
Total long-term debt | $ 438,016 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Thousands, € in Millions | 12 Months Ended | |||||||||
Jul. 01, 2021 USD ($) | Apr. 12, 2021 USD ($) | Aug. 10, 2018 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 EUR (€) | Dec. 31, 2020 USD ($) | Dec. 31, 2020 EUR (€) | Jun. 30, 2021 | |
Related Party Transactions | ||||||||||
Daily management fees | $ 850 | |||||||||
Advances on account of the vessels' operating expenses | $ 34,002 | $ 21,875 | ||||||||
Aggregate gross purchase price | $ 31,000 | |||||||||
Prior service cost arising from the retrospective recognition of past service recognized in the Other Comprehensive Income | 14,184 | |||||||||
Prior service cost exercised | 7,808 | |||||||||
Recognized non-cash share-based compensation expense | 5,972 | 15,278 | $ 1,199 | |||||||
Gemini Shipholdings Corporation | ||||||||||
Related Party Transactions | ||||||||||
Percentage of voting interest acquired | 51% | 49% | ||||||||
Aggregate gross purchase price | $ 86,700 | |||||||||
Executive officers | ||||||||||
Related Party Transactions | ||||||||||
Recognized non-cash share-based compensation expense | $ 5,400 | 11,800 | 1,000 | |||||||
Manager | ||||||||||
Related Party Transactions | ||||||||||
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% | |||||||
Supervision fee per vessel under construction | $ 725 | |||||||||
Management fees incurred shown under General and administrative expenses | $ 21,900 | 19,900 | 17,700 | |||||||
Management commissions incurred shown under Voyage expenses | 14,600 | 10,400 | 5,700 | |||||||
Amount capitalized | 700 | 1,300 | 700 | |||||||
Advances on account of the vessels' operating expenses | 34,000 | 21,900 | ||||||||
Executive officers compensation | 2,100 | € 2 | 2,100 | € 1.8 | 1,800 | € 1.5 | ||||
The Swedish Club | ||||||||||
Related Party Transactions | ||||||||||
Premiums paid | 6,600 | 5,200 | $ 4,300 | |||||||
Due to related parties | 1,000 | 0 | ||||||||
Other current liabilities | ||||||||||
Related Party Transactions | ||||||||||
Unpaid costs under defined benefit plan | $ 6,800 | |||||||||
Accounts payable | ||||||||||
Related Party Transactions | ||||||||||
Due to executive officers shown under accounts payable | $ 100 |
Taxes (Details)
Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Taxes | ||
Income tax withheld on divided income earned on investment | $ 18.3 | $ 5.9 |
Financial Instruments - Interes
Financial Instruments - Interest Rate Swap Hedges (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) agreement | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
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 | $ 3.6 | $ 3.6 |
Unrealized losses expected to be reclassified from accumulated other comprehensive loss to earnings within the next twelve months | $ 3.6 |
Financial Instruments - Estimat
Financial Instruments - Estimated Fair Values Of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value | ||
Financial Instruments | ||
Cash and cash equivalents | $ 267,668 | $ 129,410 |
Restricted cash | 346 | |
Equity participation ZIM | 423,024 | |
Book Value | ||
Financial Instruments | ||
Cash and cash equivalents | 267,668 | 129,410 |
Restricted cash | 346 | |
Equity participation ZIM | 423,024 | |
Secured long-term debt, including current portion | Fair Value | ||
Financial Instruments | ||
Long-term debt | 175,250 | 842,035 |
Secured long-term debt, including current portion | Book Value | ||
Financial Instruments | ||
Long-term debt | 175,250 | 842,035 |
Unsecured long-term debt | Fair Value | ||
Financial Instruments | ||
Long-term debt | 255,868 | 300,000 |
Unsecured long-term debt | Book Value | ||
Financial Instruments | ||
Long-term debt | $ 262,766 | $ 300,000 |
Financial Instruments - Financi
Financial Instruments - Financial Instruments Measured and Not Measured At Fair Value On Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financial Instruments | ||
Deferred finance costs, net | $ 8,100 | $ 28,400 |
Total | ||
Financial Instruments | ||
Cash and cash equivalents | 267,668 | 129,410 |
Restricted cash | 346 | |
Equity participation ZIM | 423,024 | |
Total | Secured long-term debt, including current portion | ||
Financial Instruments | ||
Long-term debt | 175,250 | 842,035 |
Total | Unsecured long-term debt | ||
Financial Instruments | ||
Long-term debt | 255,868 | 300,000 |
Eurobank $30.0 mil. Facility | Eurobank $30.0 mil. Facility | ||
Financial Instruments | ||
Credit facility | 30,000 | |
Non-recurring basis | (Level I) | ||
Financial Instruments | ||
Cash and cash equivalents | 267,668 | 129,410 |
Restricted cash | 346 | |
Non-recurring basis | (Level I) | Unsecured long-term debt | ||
Financial Instruments | ||
Long-term debt | 255,868 | |
Non-recurring basis | (Level II) | Secured long-term debt, including current portion | ||
Financial Instruments | ||
Long-term debt | 175,250 | 842,035 |
Non-recurring basis | (Level II) | Unsecured long-term debt | ||
Financial Instruments | ||
Long-term debt | 300,000 | |
Non-recurring basis | Total | ||
Financial Instruments | ||
Cash and cash equivalents | 267,668 | 129,410 |
Restricted cash | 346 | |
Non-recurring basis | Total | Secured long-term debt, including current portion | ||
Financial Instruments | ||
Long-term debt | 175,250 | 842,035 |
Non-recurring basis | Total | Unsecured long-term debt | ||
Financial Instruments | ||
Long-term debt | $ 255,868 | 300,000 |
ZIM | Recurring basis | (Level I) | ||
Financial Instruments | ||
Equity participation ZIM | 423,024 | |
ZIM | Recurring basis | Total | ||
Financial Instruments | ||
Equity participation ZIM | $ 423,024 |
Operating Revenue (Details)
Operating Revenue (Details) - Operating revenue - Significant customers | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CMA CGM | |||
Operating Revenue | |||
Percentage of operating revenue | 26% | 30% | 36% |
HMM Korea | |||
Operating Revenue | |||
Percentage of operating revenue | 12% | 17% | 24% |
MSC | |||
Operating Revenue | |||
Percentage of operating revenue | 13% |
Operating Revenue by Geograph_3
Operating Revenue by Geographic Location (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Revenue by Geographic Location | |||
Revenues | $ 993,344 | $ 689,505 | $ 461,594 |
Australia-Asia | |||
Operating Revenue by Geographic Location | |||
Revenues | 482,769 | 323,172 | 203,991 |
Europe | |||
Operating Revenue by Geographic Location | |||
Revenues | 507,293 | 338,124 | 242,704 |
America | |||
Operating Revenue by Geographic Location | |||
Revenues | $ 3,282 | $ 28,209 | $ 14,899 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 12 Months Ended | |||
Jan. 20, 2021 USD ($) | Sep. 01, 2016 item | Dec. 31, 2022 USD ($) | Dec. 31, 2021 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 Shipping | ||||
Commitments and Contingencies | ||||
Number of charters | item | 8 | |||
Number of charters cancelled | 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 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||||||
Dec. 14, 2022 shares | Dec. 10, 2021 shares | Mar. 16, 2021 shares | Feb. 12, 2021 shares | May 10, 2019 shares | Sep. 14, 2018 shares | Dec. 31, 2022 USD ($) director $ / shares shares | Dec. 31, 2021 USD ($) director $ / shares shares | Dec. 31, 2020 USD ($) director shares | Dec. 31, 2019 shares | Aug. 02, 2019 shares | |
Stock Based Compensation | |||||||||||
Average price of shares issued | $ / shares | $ 69.59 | $ 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 | 100,000 | ||||||||||
Average price of shares issued | $ / shares | $ 54.40 | $ 66 | |||||||||
Shares issued and outstanding | 0 | 19,300 | |||||||||
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 | $ | $ 6,000 | $ 15,300 | $ 1,200 | ||||||||
Manager's employees | |||||||||||
Stock Based Compensation | |||||||||||
Shares granted | 10,000 | ||||||||||
Number of cancelled shares | 224 | ||||||||||
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 | 19,076 | ||||||||||
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 | 110,000 | 35,714 | 298,774 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 14, 2022 | Dec. 10, 2021 | Mar. 16, 2021 | Feb. 12, 2021 | May 10, 2019 | Sep. 14, 2018 | Nov. 30, 2022 | Aug. 31, 2022 | May 31, 2022 | Feb. 28, 2022 | Nov. 30, 2021 | Aug. 31, 2021 | May 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2022 | Oct. 31, 2020 | Sep. 18, 2009 | |
Stockholders' Equity | |||||||||||||||||||
Dividend declared (in US$ per share) | $ 0.75 | $ 0.75 | $ 0.75 | $ 0.75 | $ 0.50 | $ 0.50 | $ 0.50 | $ 3 | $ 1.50 | ||||||||||
Dividends, common stock in cash | $ 61,500 | $ 30,900 | |||||||||||||||||
Stock issued during period, shares, dividend reinvestment plan | 143 | 146 | |||||||||||||||||
Authorized capital stock, par value of common stock (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||||
Average price of shares issued | $ 69.59 | $ 72.19 | |||||||||||||||||
Shares repurchase program authorized amount | $ 100,000 | $ 31,100 | |||||||||||||||||
Shares repurchased | 466,955 | ||||||||||||||||||
Value of shares repurchased | $ 28,553 | $ 31,127 | |||||||||||||||||
Number of shares authorized to be repurchased | 4,339,271 | ||||||||||||||||||
Shares issued | 25,155,928 | 25,056,009 | |||||||||||||||||
Shares outstanding | 20,349,702 | 20,716,738 | |||||||||||||||||
Treasury shares | 4,806,226 | 4,339,271 | |||||||||||||||||
Common stock, authorized capital stock (in shares) | 750,000,000 | 750,000,000 | 750,000,000 | ||||||||||||||||
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) | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||||
Restricted shares | |||||||||||||||||||
Stockholders' Equity | |||||||||||||||||||
Average price of shares issued | $ 54.40 | $ 66 | |||||||||||||||||
Shares granted | 100,000 | ||||||||||||||||||
Shares issued and outstanding | 0 | 19,300 | |||||||||||||||||
Executive officers | |||||||||||||||||||
Stockholders' Equity | |||||||||||||||||||
Shares granted | 110,000 | ||||||||||||||||||
Executive officers | Restricted shares | |||||||||||||||||||
Stockholders' Equity | |||||||||||||||||||
Shares granted | 110,000 | 35,714 | 298,774 | ||||||||||||||||
Manager's employees | |||||||||||||||||||
Stockholders' Equity | |||||||||||||||||||
Shares granted | 10,000 | ||||||||||||||||||
Manager's employees | Restricted shares | |||||||||||||||||||
Stockholders' Equity | |||||||||||||||||||
Shares granted | 137,944 | ||||||||||||||||||
Shares vested | 19,076 | ||||||||||||||||||
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 | ||||||||||||||||
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 |
Executive Retirement Plan - (De
Executive Retirement Plan - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 14, 2022 | Dec. 31, 2022 | Dec. 31, 2023 | |
Executive Retirement Plan | |||
Defined Benefit Plan, Plan Name [Extensible Enumeration] | dac:ExecutiveRetirementPlanMember | ||
Discount rate | 3.80% | ||
Period considered to determine discount assumption | 10 years | ||
Maximum percentage of salary escalation | 4.50% | ||
Prior service cost arising from the retrospective recognition of past service recognized in the Other Comprehensive Income | $ 14,184 | ||
Prior service cost exercised | 7,808 | ||
Accumulated benefit obligation | $ 3,000 | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Amortization of Prior Service Cost (Credit), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | ||
Weighted average duration of the defined benefit obligation | 8 years 1 month 6 days | ||
Expected future benefit Paid in 2025 | $ 700 | ||
Expected future benefit Paid in 2030 | 2,800 | ||
Forecast | |||
Executive Retirement Plan | |||
Prior service cost expected to be reclassified in the year ending December 31, 2023 | $ 700 | ||
Projected periodic benefit cost expected in the year ending December 31, 2023 | $ 800 | ||
Minimum | |||
Executive Retirement Plan | |||
Retirement age assumption to calculate projected benefit obligation | 65 years | ||
Maximum | |||
Executive Retirement Plan | |||
Retirement age assumption to calculate projected benefit obligation | 74 years | ||
Other long-term liabilities | |||
Executive Retirement Plan | |||
Defined benefit obligation | $ 6,400 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: | |||
Net income | $ 559,210 | $ 1,052,841 | $ 153,550 |
Denominator (number of shares in thousands): | |||
Basic weighted average common shares outstanding | 20,481,894 | 20,345,394 | 23,588,994 |
Dilutive effect of non-vested shares | 19,000 | 239,000 | 216,000 |
Diluted weighted average common shares outstanding | 20,501,021 | 20,583,796 | 23,805,251 |
Gain on troubled debt write-off | $ 29,400 | $ 111,600 | |
Basic earnings per share amount related to the gain on debt extinguishment (in USD per share) | $ 1.43 | $ 5.49 | |
Diluted earnings per share amount related to the gain on debt extinguishment (in USD per share) | $ 1.43 | $ 5.42 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||||
Feb. 28, 2023 | Nov. 30, 2022 | Aug. 31, 2022 | May 31, 2022 | Feb. 28, 2022 | Nov. 30, 2021 | Aug. 31, 2021 | May 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Subsequent Events | ||||||||||
Dividend declared (in US$ per share) | $ 0.75 | $ 0.75 | $ 0.75 | $ 0.75 | $ 0.50 | $ 0.50 | $ 0.50 | $ 3 | $ 1.50 | |
Subsequent Events | ||||||||||
Subsequent Events | ||||||||||
Dividend declared (in US$ per share) | $ 0.75 | |||||||||
Dividends common stock paid | $ 15.3 |