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Note 22 - Derivatives
 12 Months Ended
Dec. 31, 2023
Derivatives [Abstract]  
Derivative Instruments and Hedging Activities Disclosure [Text Block]
22. Derivatives:
 
(a) Interest rate and Cross-currency swaps and interest rate caps that meet the criteria for hedge accounting: The Company manages its exposure to floating interest rates and foreign currencies by entering into interest rate swaps, interest rate caps and cross-currency rate swap agreements with varying start and maturity dates.

The interest rate swaps are designed to hedge the variability of interest cash flows arising from floating rate debt, attributable to movements in three-month or six-month USD LIBOR or SOFR. According to the Company’s Risk Management Accounting Policy, after putting in place the formal documentation at the inception of the hedging relationship, as required by ASC 815, these interest rate derivatives instruments qualified for hedge accounting. The change in the fair value of the interest rate derivative instruments that qualified for hedge accounting is recorded in “Accumulated Other Comprehensive Income” and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings and is presented in Interest and finance costs. The change in the fair value of the interest rate derivative instruments that did not qualify for hedge accounting is recorded in Gain / (Loss) on derivative instruments.
 
During the year ended December 31, 2022, the Company entered into a series of eight interest rate cap agreements with a facility counterparty relating to the loan discussed in Note 11.A.22, with a total notional amount of $54,784 to limit the maximum interest rate on the variable-rate debt of the mentioned loan and limit exposure to interest rate variability when three-month LIBOR exceeds 1.50%. Furthermore, during the same period, the Company entered into a series of 12 interest rate cap agreements with other counterparties relating to the loans discussed in Notes 11.A.5, 11.A.20, 11.A.24, 11.A.25, 11.A.28, 11.A.29 and 11.A.33, with a total notional amount of $562,285 to limit the maximum interest rate on the variable-rate debt of the mentioned loans and limit exposure to interest rate variability when three-month LIBOR or SOFR exceeds 3.00%. The interest rate caps were accounted for as cash flow hedges because they are expected to be highly effective in hedging exposure to variable rate interest payments under the loans discussed in Notes 11.A.5, 11.A.20, 11.A.22, 11.A.24, 11.A.25, 11.A.28, 11.A.29 and 11.A.33. The Company assessed at the inception of these interest rate caps that only intrinsic value shall be included in the assessment of hedge effectiveness. The Company paid a premium of $12,948 in aggregate, representing the time value of the interest rate caps at their inception. The time value has been excluded from the assessment of hedge effectiveness and is being recognized in earnings using a systematic and rational method over the duration of the respective interest rate caps. Changes in the fair value of the interest rate caps are reported within Accumulated other comprehensive income. The interest rate caps mature during the period from July 2024 to January 2028. The fair value of these interest rate cap derivative instruments outstanding as of December 31, 2022 amounted to an asset of $24,939, and is included in the Fair value of derivatives current and non-current in the accompanying December 31, 2022 consolidated balance sheet.
 
During the year ended December 31, 2023, the Company entered into four interest rate cap agreements with a facility counterparty relating to the loans discussed in Notes 11.A.20, 11.A.33 and 11.A.42, with an aggregate notional amount of $333,727 to limit the maximum interest rate on the variable-rate debt of the mentioned loans and limit exposure to interest rate variability when three-month SOFR or Daily Compounded SOFR exceeds 2.53%-3.50%. In addition, during the same period, the Company entered into two interest rate cap agreements with a facility counterparty relating to the loans discussed in Note 11.A.37 and Note 11.A.25, with an aggregate notional amount of $310,646 to limit the maximum interest rate on the variable-rate debt of the mentioned loans and limit exposure to interest rate variability when three-month SOFR or Daily Compounded SOFR exceeds 2.74%-3.00%. The interest rate caps were accounted for as cash flow hedges because they are expected to be highly effective in hedging exposure to variable rate interest payments under the respective loans. The Company assessed at the inception of these interest rate caps that only intrinsic value shall be included in the assessment of hedge effectiveness. The Company paid a premium of $21,062 in aggregate, representing the time value of the interest rate caps at their inception. The time value has been excluded from the assessment of hedge effectiveness and is being recognized in earnings using a systematic and rational method over the duration of the respective interest rate caps. Changes in the fair value of the interest rate caps are reported within Accumulated other comprehensive income. The interest rate caps mature during the period from 2024 to 2029.
 
Furthermore, during the year ended December 31, 2023, the Company entered into an interest rate swap agreement with notional amount of $45,231, which met hedge accounting criteria according to ASC 815 related to the loan discussed in Note 11.A.17.
 
During the year ended December 31, 2023, the Company terminated the interest rate caps related to the loans discussed in Notes 11.A.5, 11.A.20, 11.A.22, 11.A.24, 11.A.25 and 11.A.29 and received the aggregate amount of $9,566, which is included in Gain / (Loss) on derivative instruments, net in the accompanying 2023 consolidated statement of operations. Additionally, the Company terminated three interest rate swaps relating to the loan discussed in Note 11.A.6 and received the amount of $7,597 in aggregate, which is included in Gain / (Loss) on derivative instruments, net in the accompanying 2023 consolidated statement of operations.
 
The fair value of the interest rate cap derivative instruments outstanding as of December 31, 2023 amounted to an asset of $26,417 ($24,939 as of December 31, 2022), and is included in the Fair value of derivatives current and non-current in the accompanying December 31, 2023 consolidated balance sheet.
 
During the year ended December 31, 2022, the Company entered into two interest rate swap agreements with an aggregate notional amount of $85,000, which both met hedge accounting criteria according to ASC 815.

Furthermore, during the year ended December 31, 2021, the Company entered into two cross-currency swap agreements, which converted the Company’s variability of the interest and principal payments in Euro into USD functional currency cash flows with respect to the Unsecured Bond (Note 11(c)), in order to hedge its exposure to fluctuations deriving from Euro. The two cross-currency swaps are designated as cash flow hedging Instruments for accounting purposes. As of December 31, 2023, the notional amount of the two cross-currency swaps was $122,375 in the aggregate. The principal terms of the two cross-currency swap agreements are as follows:
 
Effective
date
Termination
date
  
Notional
amount
(Non-amortizing)
on effective
date in Euro
    
Notional
amount
(Non-amortizing)
on effective
date in USD
    
Fixed rate
(Costamare
receives in
Euro)
    
Fixed rate
(Costamare
pays in
USD)
    
Fair value
December 31,
2023
(in USD)
  
                                 
21/5/2021
21/11/2025
  
€
50,000
    
$
61,175
      
2.70
%
    
4.10
%
  
$
(5,877
)
25/5/2021
21/11/2025
  
€
50,000
    
$
61,200
      
2.70
%
    
4.05
%
  
$
(5,756
)
Total fair value
            
$
(11,633
)
 
At December 31, 2022 and 2023, the Company had interest rate swap agreements, cross-currency rate swap agreements and interest rate cap agreements with an outstanding notional amount of $1,094,930 and $1,260,171 respectively. The fair value of these derivatives outstanding as at December 31, 2022 and 2023 amounted to a net asset of $44,918 and a net asset of $35,475, respectively, and these are included in the accompanying consolidated balance sheets. The maturity of these derivatives range between July 2024 and March 2031.
 
The estimated net amount that is expected to be reclassified within the next 12 months from Accumulated Other Comprehensive Income / (Loss) to earnings in respect of the settlements on interest rate swap, cross-currency rate swap and interest rate cap amounts to $20,405.
 
(b) Interest rate swaps/ interest rate caps/ cross currency swaps that do not meet the criteria for hedge accounting: As of December 31, 2023, the Company did not hold any interest rate swaps or interest rate caps or cross currency swaps that do not qualify for hedge accounting.
 
(c) Foreign currency agreements: As of December 31, 2023, the Company holds 24 Euro/U.S. dollar forward agreements totaling $78,600 at an average forward rate of Euro/U.S. dollar 1.0730, expiring in monthly intervals up to December 2025.
 
As of December 31, 2022, the Company was engaged in 36 Euro/U.S. dollar forward agreements totaling $108,600 at an average forward rate of Euro/U.S. dollar 1.0690, expiring in monthly intervals up to December 2025.
 
As of December 31, 2022, the Company through CBI was engaged in eight Singapore dollar/U.S. dollar forward agreements totaling $7,336 at an average forward rate of Singapore dollar/U.S. dollar 1.3411, with settlements up to December 2023.

The total change of forward contracts fair value for the year ended December 31, 2023, was a gain of $1,151 (loss of $866 for the year ended December 31, 2021 and gain of $2,784 for the year ended December 31, 2022) and is included in Gain / (Loss) on derivative instruments, net in the accompanying consolidated statements of operations. The fair value of the forward contracts as at December 31, 2022 and December 31, 2023, amounted to an asset of $2,379 and an asset of $3,529, respectively.

(d) Forward Freight Agreements (“FFAs”) and Bunker swap agreements: As of December 31, 2023, the Company had a series of bunker swap agreements, none of which qualify for hedge accounting. As of December 31, 2022, the Company had one bunker swap agreement, which does not qualify for hedge accounting. The fair value of these derivatives outstanding as of December 31, 2022 and 2023 amounted to a liability of $12 and a net liability of $2,510, respectively.
 
As of December 31, 2023, the Company had a series of FFAs, none of which qualify for hedge accounting. As of December 31, 2022, the Company had six FFAs, none of which qualify for hedge accounting. The fair value of these derivatives outstanding as of December 31, 2022 and 2023 amounted to an asset of $108 and an asset of $11,211, respectively. Following ASC 815 provisions and on the basis that enforceable master netting arrangement exists, the Company adopted net presentation for the assets and liabilities of these instruments. As of December 31, 2023, the Company deposited cash collateral related to its FFA derivative instruments and bunker swaps of $13,748, which is recorded within margin deposits in the accompanying consolidated balance sheet. The amount of collateral to be posted is defined in the terms of the respective agreement executed with counterparties and is required when the agreed upon threshold limits are exceeded. The following tables present, as of December 31, 2023, gross and net derivative assets and liabilities by contract type:
 

  
Derivatives
Assets-Current
    
Derivatives
Assets-Non-Current
  
FFAs*
  
$
30,404
    
$
2,758
  
Bunker swaps
    
101
      
-
  
Interest rate swaps
    
7,827
      
12,864
  
Interest rate caps
    
14,716
      
11,701
  
Forward currency contracts
    
1,873
      
1,656
  
Total gross derivative contracts
  
$
54,921
    
$
28,979
  
                 
Amounts offset
                
Counterparty netting*
    
(21,611
)
    
(340
)
Total derivative assets, December 31, 2023
  
$
33,310
    
$
28,639
  

   
Derivatives
Liabilities-Current
    
Derivatives
Liabilities-Non-
Current
  
FFAs*
  
$
(21,611
)
  
$
(340
)
Bunker swaps
    
(912
)
    
(1,699
)
Cross-currency rate swaps
    
(2,138
)
    
(9,495
)
Total gross derivative contracts
  
$
(24,661
)
  
$
(11,534
)
                 
Amounts offset
                
Counterparty netting*
    
21,611
      
340
  
Total derivative liabilities, December 31, 2023
  
$
(3,050
)
  
$
(11,194
)
*The Company has adopted net presentation for assets and liabilities related to FFA derivative instruments.

The Effect of Derivative Instruments for the years ended
  
December 31, 2021, 2022 and 2023
  
Derivatives in ASC 815 Cash Flow Hedging Relationships
  
   
Amount of Gain / (Loss) Recognized in
Accumulated OCI on Derivative
  
   
2021
    
2022
    
2023
  
Interest rate swaps and cross-currency swaps
  
$
(754
)
  
$
36,591
    
$
3,385
  
Interest rate caps (included component)
    
-
      
4,495
      
6,629
  
Interest rate caps (excluded component) (1)
    
-
      
6,700
      
(16,589
)
Reclassification to Interest and finance costs
    
6,417
      
(483
)
    
(22,876
)
Reclassification of amount excluded from the interest rate caps assessment of hedge effectiveness based on an amortization approach to Interest and finance costs
    
-
      
1,286
      
4,354
  
Amounts reclassified from Net settlements on interest rate swaps qualifying for hedge accounting to Depreciation
    
63
      
63
      
63
  
Total
  
$
5,726
    
$
48,652
    
$
(25,034
)

(1) Excluded component represents interest rate caps instruments time value.

Derivatives Not Designated as Hedging Instruments
under ASC 815
  
Location of Gain / (Loss)
Recognized in Gain / (Loss) on derivative
instruments, net
  
Amount of Gain / (Loss)
Recognized in Gain / (Loss) on derivative
instruments, net
  
     
2021
    
2022
    
2023
  
Interest rate swaps / caps
Gain / (loss) on derivative instruments, net
  
$
(380
)
  
$
(182
)
  
$
12,207
  
Forward Freight Agreements
Gain / (loss) on derivative instruments, net
    
-
      
108
      
5,420
  
Bunker swap agreements
Gain / (loss) on derivative instruments, net
    
-
      
(12
)
    
(1,490
)
Forward currency contracts
Gain / (loss) on derivative instruments, net
    
(866
)
    
2,784
      
1,151
  
Total
  
$
(1,246
)
  
$
2,698
    
$
17,288