Guarantor Financial Information

12 Months Ended

Dec. 31, 2018

Supplemental Guarantor Financial Information [Abstract]

Guarantor Financial Information

19.     Guarantor financial information:

The Fairfax Notes are guaranteed by the following wholly owned subsidiaries of the Company, each a “Guarantor”:

• Seaspan 140 Ltd.  

• Seaspan Holding 140 Ltd.  

• Seaspan (Asia) Corporation

• Seaspan Containership 2180 Ltd.

• Seaspan Containership 2181 Ltd.

• Seaspan Holdco I Ltd.

• Seaspan Holdco II Ltd.

• Seaspan Holdco III Ltd.

• Seaspan Holdco IV Ltd.

• Seaspan Investment I Ltd.

• Seaspan Ship Management Ltd.

• Seaspan Crew Management Ltd.

• Seaspan Management Services Limited

• Seaspan Advisory Services Limited

The guarantees are full and unconditional and joint and several, subject to certain customary release provisions including (1) the sale, exchange or transfer of a Guarantor in accordance with the terms of the Fairfax Notes (2) upon the legal defeasance or covenant defeasance or discharge of obligations under the Fairfax Notes and (3) merger or consolidation of a Guarantor with Seaspan Corporation or another Guarantor   For the purposes of the following footnote, Seaspan Corporation is referred to as “Issuer”.  The following supplemental combining and condensed consolidating financial information reflects the Issuer’s separate account, the combined accounts of the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries, the combining and consolidating adjustments and eliminations and the Issuer’s consolidated
accounts for the dates and periods indicated.  For purposes of the following combining and consolidating information, the Issuer’s investment in its subsidiaries and the Guarantor subsidiaries’ investments in their subsidiaries include their proportionate interest in the net assets of the subsidiaries.

The following tables present consolidating financial information related to the guarantees of the Fairfax Notes:

	December 31, 2018
	Parent Issuer			Guarantors		Non-Guarantors		Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	218,903		$	32,017	$	106,407	$	—		$	357,327
Short-term investments		—			105		2,427		—			2,532
Accounts receivable		1,926			7,707		3,368		—			13,001
Intercompany accounts receivable		169,170			65,173		2,176		(236,519	)		—
Loans to affiliate		36,527			—		—		(36,527	)		—
Prepaid expenses and other		24,045			33,388		1,174		(22,088	)		36,519
Gross investment in lease		44,348			—		—		—			44,348
Fair value of financial instruments		—			—		113		—			113
		494,919			138,390		115,665		(295,134	)		453,840
Vessels		3,813,906			294,305		1,818,786		(723	)		5,926,274
Gross investment in lease		817,631			—		—		—			817,631
Goodwill		—			75,321		—		—			75,321
Investment in subsidiaries		951,062			577,305		—		(1,528,367	)		—
Other assets		100,264			18,978		96,168		(10,479	)		204,931
	$	6,177,782		$	1,104,299	$	2,030,619	$	(1,834,703	)	$	7,477,997
Liabilities, puttable preferred shares and shareholders' equity
Current liabilities:
Accounts payable and accrued liabilities	$	29,443		$	38,620	$	2,148	$	—		$	70,211
Intercompany accounts payable		48,942			38,499		149,078		(236,519	)		—
Loans from affiliate		—			—		36,527		(36,527	)		—
Current portion of deferred revenue		51,191			20,985		4,724		(20,985	)		55,915
Current portion of long-term debt		619,839			—		102,802		—			722,641
Current portion of long-term obligations under capital lease		32,050			16,334		—		—			48,384
Current portion of other long-term liabilities		23,594			—		8,649		—			32,243
		805,059			114,438		303,928		(294,031	)		929,394
Deferred revenue		376,884			—		—		—			376,884
Long-term debt		1,732,110			—		1,032,790		—			2,764,900
Long-term obligations under capital lease		459,520			131,852		—		—			591,372
Other long-term liabilities		169,934			15,530		6,433		(11,740	)		180,157
Fair value of financial instruments		126,157			—		1,015		—			127,172
		3,669,664			261,820		1,344,166		(305,771	)		4,969,879
Puttable preferred shares		48,139			—		—		—			48,139
Shareholders’ equity:
Share capital		2,102			436,669		526,532		(963,201	)		2,102
Treasury shares		(371	)		—		—		—			(371	)
Additional paid in capital		3,126,457			233,739		116,127		(349,866	)		3,126,457
Retained earnings (deficit)		(645,638	)		172,071		43,794		(215,865	)		(645,638	)
Accumulated other comprehensive loss		(22,571	)		—		—		—			(22,571	)
		2,459,979			842,479		686,453		(1,528,932	)		2,459,979
	$	6,177,782		$	1,104,299	$	2,030,619	$	(1,834,703	)	$	7,477,997

	December 31, 2017
	Parent Issuer			Guarantors		Non-Guarantors		Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	146,328		$	77,712	$	29,136	$	—		$	253,176
Short-term investments		—			104		—		—			104
Accounts receivable		37,303			25,347		—		(50,972	)		11,678
Loans to affiliate		36,100			—		—		—			36,100
Prepaid expenses and other		29,037			30,348		938		(15,454	)		44,869
Gross investment in lease		35,478			—		—		—			35,478
		284,246			133,511		30,074		(66,426	)		381,405
Vessels		3,918,672			286,342		332,202		—			4,537,216
Gross investment in lease		687,896			—		—		—			687,896
Goodwill		—			75,321		—		—			75,321
Intercompany accounts receivable (payable)		(11,594	)		11,189		405		—			—
Investment in subsidiaries		474,713			59,902		—		(534,615	)		—
Other assets		116,154			81,463		9,104		(10,417	)		196,304
	$	5,470,087		$	647,728	$	371,785	$	(611,458	)	$	5,878,142
Liabilities and shareholders' equity
Current liabilities:
Accounts payable and accrued liabilities	$	35,307		$	75,125	$	2,789	$	(50,001	)	$	63,220
Current portion of deferred revenue		54,578			16,104		140		(15,455	)		55,367
Current portion of long-term debt		239,858			—		17,942		—			257,800
Current portion of long-term obligations under capital lease		28,534			15,378		—		—			43,912
Current portion of other long-term liabilities		23,635			—		—		—			23,635
		381,912			106,607		20,871		(65,456	)		443,934
Deferred revenue		327,641			1,040		—		—			328,681
Long-term debt		2,001,504			—		191,329		—			2,192,833
Long-term obligations under capital lease		445,279			149,737		—		—			595,016
Other long-term liabilities		195,459			15,273		—		(11,346	)		199,386
Fair value of financial instruments		168,860			—		—		—			168,860
		3,520,655			272,657		212,200		(76,802	)		3,928,710
Shareholders’ equity:
Share capital		1,646			41,789		33,299		(75,088	)		1,646
Treasury shares		(377	)		—		—		—			(377	)
Additional paid in capital		2,752,988			233,739		109,488		(343,227	)		2,752,988
Retained earnings (deficit)		(781,137	)		99,543		16,798		(116,341	)		(781,137	)
Accumulated other comprehensive loss		(23,688	)		—		—		—			(23,688	)
		1,949,432			375,071		159,585		(534,656	)		1,949,432
	$	5,470,087		$	647,728	$	371,785	$	(611,458	)	$	5,878,142

	Year ended December 31, 2018
	Parent Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Revenue	$	876,894		$	266,906		$	234,660		$	(282,129	)	$	1,096,331
Operating expenses:
Ship operating		243,311			191,151			42,627			(257,819	)		219,270
Depreciation and amortization		181,397			13,846			50,558			—			245,801
General and administrative		33,327			21,586			962			(24,310	)		31,565
Operating leases		111,008			5,501			13,238			—			129,747
		569,043			232,084			107,385			(282,129	)		626,383
Operating earnings		307,851			34,822			127,275			—			469,948
Other expenses (income):
Interest expense and amortization of deferred    financing fees		149,696			8,514			54,200			(345	)		212,065
Interest income		(3,812	)		(429	)		(301	)		345			(4,197	)
Acquisition related gain on contract settlement		—			(2,430	)		—			—			(2,430	)
Change in fair value of financial instruments		(15,720	)		91			139			—			(15,490	)
Equity income on consolidated subsidiaries		(102,650	)		(68,582	)		—			171,232			—
Equity income on investment		—			(1,216	)		—			—			(1,216	)
Other expense (income)		1,539			797			82			—			2,418
		29,053			(63,255	)		54,120			171,232			191,150
Net earnings (loss)	$	278,798		$	98,077		$	73,155		$	(171,232	)	$	278,798

	Year ended December 31, 2018
	Parent Issuer		Guarantors		Non-Guarantors		Eliminations			Consolidated
Net earnings (loss)	$	278,798	$	98,077	$	73,155	$	(171,232	)	$	278,798
Amounts reclassified to net earnings during the        year relating to cash flow hedging        instruments		1,117		—		—		—			1,117
Comprehensive income (loss)	$	279,915	$	98,077	$	73,155	$	(171,232	)	$	279,915

	Year ended December 31, 2017
	Parent Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Revenue	$	797,317		$	237,056		$	45,086		$	(248,135	)	$	831,324
Operating expenses:
Ship operating		211,966			180,349			10,864			(219,263	)		183,916
Cost of services, supervision fees		—			1,300			—			—			1,300
Depreciation and amortization		173,464			13,317			13,157			—			199,938
General and administrative		52,742			16,115			106			(28,872	)		40,091
Operating leases		98,175			5,046			12,323			—			115,544
Gain on disposals		(1	)		(13,603	)		—			—			(13,604	)
Expenses related to customer    bankruptcy		472			—			541			—			1,013
Vessel impairments		—			—			—			—			—
		536,818			202,524			36,991			(248,135	)		528,198
Operating earnings		260,499			34,532			8,095			—			303,126
Other expenses (income):
Interest expense and amortization of    deferred financing fees		97,762			7,795			10,832			—			116,389
Interest income		(4,146	)		(412	)		—			—			(4,558	)
Change in fair value of financial    instruments		11,894			737			—			—			12,631
Equity income on investment		(29,013	)		(12,761	)		—			35,939			(5,835	)
Other expense		8,765			497			—			—			9,262
		85,262			(4,144	)		10,832			35,939			127,889
Net earnings (loss)	$	175,237		$	38,676		$	(2,737	)	$	(35,939	)	$	175,237

	Year ended December 31, 2017
	Parent Issuer		Guarantors		Non-Guarantors			Eliminations			Consolidated
Net earnings (loss)	$	175,237	$	38,676	$	(2,737	)	$	(35,939	)	$	175,237
Other comprehensive income:
Amounts reclassified to net earnings        during the year relating to cash        low hedging instruments		2,859		—		—			—			2,859
Comprehensive income (loss)	$	178,096	$	38,676	$	(2,737	)	$	(35,939	)	$	178,096

	Year ended December 31, 2016
	Parent Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Revenue	$	835,851		$	250,606		$	50,969		$	(259,521	)	$	877,905
Operating expenses:
Ship operating		229,439			185,750			9,967			(232,829	)		192,327
Cost of services, supervision fees		—			7,390			—			—			7,390
Depreciation and amortization		188,816			14,172			13,110			—			216,098
General and administrative		42,507			16,189			114			(26,692	)		32,118
Operating leases		74,175			4,780			6,955			—			85,910
Loss on disposals		31,876			—			—			—			31,876
Expenses related to customer bankruptcy		7,342			—			12,390			—			19,732
Vessel impairments		285,195			—			—			—			285,195
		859,350			228,281			42,536			(259,521	)		870,646
Operating earnings (loss)		(23,499	)		22,325			8,433			—			7,259
Other expenses (income):
Interest expense and amortization of deferred    financing fees		101,009			7,583			11,290			—			119,882
Interest income		(8,273	)		(179	)		(3	)		—			(8,455	)
Refinancing expenses		1,962			—			—			—			1,962
Change in fair value of financial instruments		28,616			502			—			—			29,118
Equity income on investment		(11,176	)		(5,500	)		—			16,488			(188	)
Other expense (income)		3,402			578			—			(1	)		3,979
		115,540			2,984			11,287			16,487			146,298
Net earnings (loss)	$	(139,039	)	$	19,341		$	(2,854	)	$	(16,487	)	$	(139,039	)

	Year ended December 31, 2016
	Parent Issuer			Guarantors		Non-Guarantors			Eliminations			Consolidated
Net earnings (loss)	$	(139,039	)	$	19,341	$	(2,854	)	$	(16,487	)	$	(139,039	)
Amounts reclassified to net earnings     during the year relating to cash     flow hedging instruments		4,373			—		—			—			4,373
Comprehensive income (loss)	$	(134,666	)	$	19,341	$	(2,854	)	$	(16,487	)	$	(134,666	)

	Year ended December 31, 2018
	Parent Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Cash from (used in) operating activities	$	223,936		$	19,832		$	275,083		$	(35,000	)	$	483,851
Financing activities:
Common shares issued, net of issuance costs		—			—			—			—			—
Preferred shares issued, net of issuance costs		144,375			—			—			—			144,375
Draws on credit facilities		205,600			—			120,000			—			325,600
Repayment of credit facilities		(242,220	)		—			(227,442	)		—			(469,662	)
2025 Notes and 2018 Warrants issued		250,000			—			—			—			250,000
Senior unsecured notes repurchased, including    Related expenses		(17,529	)		—			—			—			(17,529	)
Draws on long-term obligations under capital lease		46,964			—			—			—			46,964
Repayment on long-term obligations under    capital lease		(30,504	)		(17,636	)		—			—			(48,140	)
Preferred shares redeemed, including related expenses		(143,430	)		—			—			—			(143,430	)
Proceeds from exercise of 2018 Warrants		250,000			—			—			—			250,000
Financing fees		(10,057	)		—			(6,065	)		—			(16,122	)
Intercompany dividends paid		—			(23,800	)		(12,300	)		36,100			—
Dividends on common shares		(49,937	)		—			—			—			(49,937	)
Dividends on preferred shares		(65,765	)		—			—			—			(65,765	)
Cash from (used in) financing activities		337,497			(41,436	)		(125,807	)		36,100			206,354
Investing activities:
Expenditures for vessels		(157,268	)		(20,003	)		(141,469	)		—			(318,740	)
Short-term investments		—			(1	)		(2,427	)		—			(2,428	)
Other assets		891			(4,078	)		1,770			—			(1,417	)
Intercompany dividends received		1,100			—			—			(1,100	)		—
Acquisition of GCI		(333,581	)		—			—			—			(333,581	)
Cash acquired from GCI		—			—			70,121			—			70,121
Cash used in investing activities		(488,858	)		(24,082	)		(72,005	)		(1,100	)		(586,045	)
Increase (decrease) in cash and cash equivalents		72,575			(45,686	)		77,271			—			104,160
Cash, cash equivalents and restricted cash,    beginning of period		146,328			85,600			35,308			—			267,236
Cash, cash equivalents and restricted cash, end of    period	$	218,903		$	39,914		$	112,579		$	—		$	371,396

	Year ended December 31, 2017
	Parent Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Cash from (used in) operating activities	$	315,803		$	10,891		$	(8,257	)	$	4,782		$	323,219
Financing activities:
Common shares issued, net of issuance costs		118,966			—			—			—			118,966
Preferred shares issued, net of issuance costs		2,690			—			—			—			2,690
Repayment of credit facilities		(430,271	)		—			(24,734	)		—			(455,005	)
Draws on long-term obligations under capital lease		176,254			—			—			—			176,254
Repayment on long-term obligations under capital lease		(9,649	)		(16,549	)		—			—			(26,198	)
Senior unsecured notes issued		80,000			—			—			—			80,000
Senior unsecured notes repurchased, including related    expenses		(7,075	)		—			—			—			(7,075	)
Proceeds from sale-leaseback of vessels		90,753			—			—			—			90,753
Financing fees		(9,840	)		832			784			(2	)		(8,226	)
Dividends on common shares		(61,830	)		(4,950	)		—			4,950			(61,830	)
Dividends on preferred shares		(64,416	)		—			—			—			(64,416	)
Advances from related parties		—			6,667			41,510			(48,177	)		—
Cash from (used in) financing activities		(114,418	)		(14,000	)		17,560			(43,229	)		(154,087	)
Investing activities:
Expenditures for vessels		(329,328	)		(7,076	)		(2,114	)		—			(338,518	)
Short-term investments		—			307			—			—			307
Net proceeds from vessel disposals		—			37,091			—			—			37,091
Other assets		2,782			(5,365	)		(7	)		206			(2,384	)
Loans to affiliate		27,376			(2,778	)		—			(4,950	)		19,648
Capital contribution in subsidiary		(43,188	)		(3	)		—			43,191			—
Cash used in investing activities		(342,358	)		22,176			(2,121	)		38,447			(283,856	)
Increase (decrease) in cash and cash equivalents		(140,973	)		19,067			7,182			—			(114,724	)
Cash, cash equivalents and restricted cash, beginning of    period		287,301			66,533			28,126			—			381,960
Cash, cash equivalents and restricted cash, end of    period	$	146,328		$	85,600		$	35,308		$	—		$	267,236
	Year ended December 31, 2016
	Parent Issuer			Guarantors			Non-Guarantors			Eliminations			Consolidated
Cash from (used in) operating activities	$	268,780		$	45,017		$	33,711		$	(36,421	)	$	311,087
Financing activities:
Common shares issued, net of issuance costs		95,978			—			—			—			95,978
Preferred shares issued, net of issuance costs		541,694			—			—			—			541,694
Draws on credit facilities		220,485			—			—			—			220,485
Repayment of credit facilities		(673,128	)		—			(31,162	)		(1	)		(704,291	)
Draws on long-term obligations under capital lease		180,750			—			—			—			180,750
Repayment on long-term obligations under capital lease		(9,182	)		(15,550	)		—			(1	)		(24,733	)
Proceeds from sale-leaseback of vessels		354,000			—			—			—			354,000
Common shares repurchased, including related    expenses		(8,269	)		—			—			—			(8,269	)
Preferred shares repurchased, including related    expenses		(333,074	)		—			—			—			(333,074	)
Financing fees		(14,912	)		975			945			—			(12,992	)
Dividends on common shares		(148,555	)		(23,100	)		(19,366	)		42,465			(148,556	)
Dividends on preferred shares		(54,085	)		—			—			—			(54,085	)
Cash from (used in) financing activities		151,702			(37,675	)		(49,583	)		42,463			106,907
Investing activities:
Expenditures for vessels		(324,962	)		(17,891	)		(699	)		—			(343,552	)
Short-term investments		7			2,997			—			—			3,004
Net proceeds from vessel disposals		12,078			—			—			—			12,078
Proceeds from sale of leased vessels		20,000			—			—			—			20,000
Other assets		3,678			(4,896	)		583			(6,042	)		(6,677	)
Loans to affiliate		49,735			—			—			—			49,735
Advances to related parties		(30,466	)		(12,000	)		—			42,466			—
Dividend recevied from subsidary		30,466			12,000			—			(42,466	)		—
Cash used in investing activities		(239,464	)		(19,790	)		(116	)		(6,042	)		(265,412	)
Increase (decrease) in cash and cash equivalents		181,018			(12,448	)		(15,988	)		—			152,582
Cash, cash equivalents and restricted cash, beginning of    period		106,283			78,981			44,114			—			229,378
Cash, cash equivalents and restricted cash, end of    period	$	287,301		$	66,533		$	28,126		$	—		$	381,960