UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2022
Commission File Number 001-39237
ATLAS CORP.
(Exact name of Registrant as specified in its Charter)
23 Berkeley Square
London, United Kingdom
W1J 6HE
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101 (b)(1). Yes ☐ No ☒
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101 (b)(7). Yes ☐ No ☒



Item 1 — Information Contained in this Form 6-K Report
This report on Form 6-K of Atlas Corp., or this Report, is hereby incorporated by reference into: the Registration Statement of Atlas Corp. filed with the Securities and Exchange Commission, (the “SEC”), on May 30, 2008 on Form F-3D (Registration No. 333-151329), as amended on February 28, 2020, the Registration Statement of Atlas Corp. filed with the SEC on March 31, 2011 on Form S-8 (Registration No. 333-173207), as amended on February 28, 2020, the Registration Statement of Atlas Corp. filed with the SEC on June 20, 2013 on Form S-8 (Registration No. 333-189493), as amended on February 28, 2020, the Registration Statement of Atlas Corp. filed with the SEC on April 24, 2012 on Form F-3 (Registration No. 333-180895), as amended on March 22, 2013 and February 28, 2020, the Registration Statement of Atlas Corp. filed with the SEC on April 29, 2014 on Form F-3 (Registration No. 333-195571), as amended on March 6, 2017, April 19, 2017 and February 28, 2020, the Registration Statement of Atlas Corp. filed with the SEC on November 28, 2014 on Form F-3 (Registration No. 333-200639), as amended on March 6, 2017, April 19, 2017 and February 28, 2020, the Registration Statement of Atlas Corp. filed with the SEC on November 28, 2014 on Form S-8 (Registration No. 333-200640), as amended on February 28, 2020, the Registration Statement of Atlas Corp. filed with the SEC on March 12, 2015 on Form F-3D (Registration No. 333-202698), as amended on February 28, 2020, the Registration Statement of Atlas Corp. filed with the SEC on June 24, 2016 on Form S-8 (Registration No. 333-212230), as amended on February 28, 2020, the Registration Statement of Atlas Corp. filed with the SEC on August 25, 2017 on Form F-3 (Registration No. 333-220176), as amended on February 28, 2020, the Registration Statement of Atlas Corp. filed with the SEC on December 21, 2017 on Form S-8 (Registration No. 333-222216), as amended on February 28, 2020, the Registration Statement of Atlas Corp. filed with the SEC on April 13, 2018 on Form F-3D (Registration No. 333-224291), as amended on February 28, 2020, the Registration Statement of Atlas Corp. filed with the SEC on April 13, 2018 on Form F-3 (Registration No. 333-224288), as amended on May 3, 2018, May 7, 2018 and February 28, 2020, the Registration Statement of Atlas Corp. filed with the SEC on September 28, 2018 on Form F-3 (Registration No. 333-227597), as amended on February 28, 2020, the Registration Statement of Atlas Corp. filed with the SEC on January 18, 2019 on Form F-3 (Registration No. 333-229312), as amended on February 28, 2020, the Registration Statement of Atlas Corp. filed with the SEC on March 27, 2019 on Form F-3 (Registration No. 333-230524), as amended on February 28, 2020, the Registration Statement of Atlas Corp. filed with the SEC on May 11, 2020 on Form F-3 (Registration No. 333-238178), as supplemented on December 7, 2020, the Registration Statement of Atlas Corp. filed with the SEC on June 30, 2020 on Form S-8 (Registration No. 333-239578), the Registration Statement of Atlas Corp filed with the SEC on March 19, 2021 on Form F-3 (Registration No. 333-254536), the Registration Statement of Atlas Corp filed with the SEC on July 16, 2021 on Form F-3 (Registration No. 333-257967) and the Registration Statement of Atlas Corp. filed with the SEC on March 25, 2022 on From S-8 (Registration No. 333-263872).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
  ATLAS CORP.
     
Date: May 13, 2022 By: /s/ Graham Talbot
    Graham Talbot
    Chief Financial Officer
    (Principal Financial and Accounting Officer)



EXHIBIT I
ATLAS CORP.
REPORT ON FORM 6-K FOR THE QUARTER ENDED MARCH 31, 2022
INDEX
Unless we otherwise specify, when used in this Report, (i) the terms “Atlas”, the “Company”, “we”, “our” and “us” refer to Atlas Corp. and its subsidiaries, (ii) the term “Seaspan” refers to Seaspan Corporation and its subsidiaries and (iii) the term “APR Energy” refers to Apple Bidco Limited, its subsidiary APR Energy Ltd., and APR Energy Ltd.’s subsidiaries.



ATLAS CORP.
PART I — FINANCIAL INFORMATION
1


ITEM 1 — INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
ATLAS CORP.
Interim Consolidated Balance Sheets
(Unaudited)
(Expressed in millions of United States dollars, except number of shares and par value amounts)
  March 31, 2022   December 31, 2021
Assets      
Current assets:      
Cash and cash equivalents $ 251.3  $ 288.6 
Accounts receivable 66.5  56.2 
Inventories 49.6  46.4 
Prepaid expenses and other 43.2  35.7 
Net investment in lease (note 5) 17.1  16.8 
Assets held for sale (note 6) 48.2  — 
Acquisition related assets 96.4  104.0 
572.3  547.7 
Property, plant and equipment (note 6) 6,809.7  6,952.2 
Vessels under construction (note 7) 1,213.7  1,095.6 
Right-of-use assets (note 8) 728.3  724.9 
Net investment in lease (note 5) 736.8  741.5 
Goodwill 75.3  75.3 
Deferred tax assets 0.5  1.9 
Derivative instruments (note 20(c)) 39.0  6.1 
Other assets (note 9) 421.1  424.4 
$ 10,596.7  $ 10,569.6 
Liabilities and shareholders' equity
Current liabilities:
Accounts payable and accrued liabilities $ 166.2  $ 183.4 
Deferred revenue 29.5  46.6 
Income tax payable 94.3  96.9 
Long-term debt - current (note 10) 651.9  551.0 
Operating lease liabilities - current (note 11) 145.3  155.1 
Finance lease liabilities - current (note 12) 59.3  — 
Other financing arrangements - current (note 13) 100.8  100.5 
Other liabilities - current (note 14) 62.9  42.0 
1,310.2  1,175.5 
Long-term debt (note 10) 3,592.0  3,731.8 
Operating lease liabilities (note 11) 515.6  562.3 
Other financing arrangements (note 13) 1,212.2  1,239.3 
Derivative instruments (note 20(c)) 14.6  28.5 
Other liabilities (note 14) 15.6  17.7 
Total liabilities 6,660.2  6,755.1 
Cumulative redeemable preferred shares, $0.01 par value; 12,000,000 issued and outstanding (2021 – 12,000,000) (note 16 (c)) 296.9  296.9 
Shareholders’ equity:
Share capital (note 16):
Preferred shares; $0.01 par value; 150,000,000 shares authorized (2021 – 150,000,000);
   20,118,833 shares issued and outstanding (2021 – 20,118,833)
Common shares; $0.01 par value; 400,000,000 shares authorized (2021 – 400,000,000);
  251,875,620 shares issued and outstanding (2021 – 247,024,699);
  727,351 shares held in treasury (2021 – 727,351)
2.5  2.4 
Additional paid in capital 3,531.4  3,526.8 
Retained earnings 124.6  7.5 
Accumulated other comprehensive loss (18.9) (19.1)
3,639.6  3,517.6 
$ 10,596.7  $ 10,569.6 
Commitments and contingencies (note 19)
Subsequent events (note 21)
See accompanying notes to interim consolidated financial statements.
2


ATLAS CORP.
Interim Consolidated Statements of Operations
(Unaudited)
(Expressed in millions of United States dollars, except per share amounts)

  Three Months Ended March 31,
  2022 2021
Revenue (note 3) $ 408.1  $ 372.6 
Operating expenses:
Operating expenses 86.6  80.6 
Depreciation and amortization 88.1  87.3 
General and administrative 27.9  19.1 
Indemnity claim under acquisition agreement (note 9) (13.5) — 
Operating leases (note 11) 33.6  36.1 
Loss (Gain) on sale (note 6) 2.4  (0.5)
225.1  222.6 
Operating earnings 183.0  150.0 
Other expenses (income):
Interest expense 45.8  46.8 
Interest income (0.2) (0.5)
Equity income on investment (0.7) — 
Gain on derivative instruments (note 20(c)) (40.7) (8.7)
Other expenses 9.1  8.1 
13.3  45.7 
Net earnings before income tax 169.7  104.3 
Income tax expense (note 15) 0.3  6.7 
Net earnings $ 169.4  $ 97.6 
Earnings per share (note 17):
Common share, basic $ 0.62  $ 0.33 
Common share, diluted $ 0.56  $ 0.31 


















See accompanying notes to interim consolidated financial statements.
3


ATLAS CORP.
Interim Consolidated Statements of Comprehensive Income
(Unaudited)
(Expressed in millions of United States dollars)

  Three Months Ended March 31,
  2022 2021
Net earnings $ 169.4  $ 97.6 
Other comprehensive income:
Amounts reclassified to net earnings during the period
   relating to cash flow hedging instruments (note 20(c))
0.2  0.3 
Comprehensive income $ 169.6  $ 97.9 










































See accompanying notes to interim consolidated financial statements.
4


ATLAS CORP.
Interim Consolidated Statements of Shareholders’ Equity and Cumulative Redeemable Preferred Shares
(Unaudited)
(Expressed in millions of United States dollars, except number of shares and per share amounts)
Three months ended March 31, 2022
  Series J cumulative redeemable
preferred shares
    Number of
common
shares
  Number of
preferred
shares
  Common
shares
  Preferred
shares
  Additional
paid-in
capital
  Retained earnings   Accumulated other
comprehensive
loss
  Total
shareholders’
equity
  Shares   Amount                  
Balance, December 31, 2021, carried forward 12,000,000  $ 296.9  247,024,699  20,118,833  $ 2.1  $ 0.3  $ 3,526.8  $ 7.5  $ (19.1) $ 3,517.6 
Impact of accounting policy change (note 1(b)) —  —  —  —  —  —  —  (5.1) —  (5.1)
Adjusted balance, December 31, 2021 12,000,000  296.9  247,024,699  20,118,833  2.1  0.3  3,526.8  2.4  (19.1) 3,512.5 
Net earnings —  —  —  —  —  —  —  169.4  —  169.4 
Other comprehensive income —  —  —  —  —  —  —  —  0.2  0.2 
Issuance of common shares from unissued acquisition related equity consideration —  —  48,985  —  —  —  —  —  —  — 
Dividends on common shares
($0.125 per share)
—  —  —  —  —  —  —  (31.6) —  (31.6)
Dividends on preferred shares
(Series D - $0.50 per share;
Series H - $0.49 per share;
Series I - $0.50 per share;
Series J - $0.44 per share;)
—  —  —  —  —  —  —  (15.2) —  (15.2)
Shares issued through dividend reinvestment program —  —  6,262  —  —  —  0.1  (0.1) —  — 
Share-based compensation expense (note 16 (d) and 16 (e)) —  —  4,795,674  —  0.1  —  4.5  (0.3) —  4.3 
Balance, March 31, 2022 12,000,000  $ 296.9  251,875,620  20,118,833  $ 2.2  $ 0.3  $ 3,531.4  $ 124.6  $ (18.9) $ 3,639.6 




























See accompanying notes to interim consolidated financial statements.
5


ATLAS CORP.
Interim Consolidated Statements of Shareholders’ Equity
(Unaudited)
(Expressed in millions of United States dollars, except number of shares and per share amounts)
Three months ended March 31, 2021
  Number of
common
shares
Number of
preferred
shares
Common
shares
Preferred
shares
Additional
paid-in
capital
Deficit Accumulated other
comprehensive
loss
Total
shareholders'
equity
Balance, December 31, 2020, carried forward 246,277,338  33,335,570  $ 2.1  $ 0.3  $ 3,842.7  $ (199.2) $ (20.3) $ 3,625.6 
Net earnings —  —  —  —  —  97.6  —  97.6 
Other comprehensive income —  —  —  —  —  —  0.3  0.3 
Issuance of common shares from unissued acquisition related equity consideration 173,819  —  —  —  —  —  —  — 
Dividends on common shares
($0.125 per share)
—  —  —  —  —  (31.5) —  (31.5)
Dividends on preferred shares
(Series D - $0.50 per share;
Series E - $0.52 per share;
Series G - $0.51 per share;
Series H - $0.49 per share;
Series I - $0.50 per share)
—  —  —  —  —  (16.8) —  (16.8)
Shares issued through dividend reinvestment program 7,042  —  —  —  0.1  (0.1) —  — 
Share-based compensation expense 353,177  —  —  —  3.4  (0.3) —  3.1 
Balance, March 31, 2021 246,811,376  33,335,570  $ 2.1  $ 0.3  $ 3,846.2  $ (150.3) $ (20.0) $ 3,678.3 






























See accompanying notes to interim consolidated financial statements.
6


ATLAS CORP.
Interim Consolidated Statements of Cash Flows
(Unaudited)
(Expressed in millions of United States dollars)
  Three Months Ended March 31,
  2022 2021
Cash from (used in):
Operating activities:
Net earnings $ 169.4  $ 97.6 
Items not involving cash:
Depreciation and amortization 88.1  87.3 
Change in right-of-use asset 29.6  30.8 
Non-cash interest expense and accretion 5.6  11.9 
Unrealized change in derivative instruments (46.8) (15.5)
Amortization of acquired revenue contracts 3.2  4.2 
Equity income on investment (0.7) — 
Loss (Gain) on sale 2.4  (0.5)
Other 4.5  8.3 
Change in other operating assets and liabilities (note 18) (80.4) (42.6)
Cash from operating activities 174.9  181.5 
Investing activities:
Expenditures for property, plant and equipment and vessels under construction (123.2) (199.9)
Payment on settlement of interest swap agreements (5.0) (5.3)
Loss on foreign currency repatriation (3.2) (6.0)
Receipt from contingent consideration asset 6.2  6.9 
Other assets and liabilities 45.3  3.0 
Capitalized interest relating to newbuilds (9.3) (0.7)
Cash used in investing activities (89.2) (202.0)
Financing activities:
Repayments of long-term debt and other financing arrangements (71.5) (430.4)
Issuance of long-term debt and other financing arrangements —  534.5 
Financing fees (5.1) (2.5)
Dividends on common shares (31.2) (31.1)
Dividends on preferred shares (15.2) (16.8)
Cash (used in) from financing activities (123.0) 53.7 
(Decrease) Increase in cash and cash equivalents (37.3) 33.2 
Cash and cash equivalents and restricted cash, beginning of period 326.8  342.5 
Cash and cash equivalents and restricted cash, end of period $ 289.5  $ 375.7 
Supplemental cash flow information (note 18)



See accompanying notes to interim consolidated financial statements.

7

ATLAS CORP.
Notes to Interim Consolidated Financial Statements
(Unaudited)
(Tabular amounts in millions of United States dollars, except per share amount and number of shares)

1.Significant accounting policies:
(a)Basis of presentation:
Except for the changes described in note 1(b), the accompanying interim financial information of Atlas Corp. (the “Company” or “Atlas”) has been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), on a basis consistent with those followed in the December 31, 2021 audited annual consolidated financial statements of Atlas. The accompanying interim financial information is unaudited and reflects all adjustments, consisting of normal recurring adjustments, which, in the opinion of management, are necessary for a fair presentation of results for the interim periods presented. The unaudited interim consolidated financial statements do not include all the disclosures required under U.S. GAAP for annual financial statements and should be read in conjunction with the December 31, 2021 annual consolidated financial statements of Atlas filed with the U.S. Securities and Exchange Commission in the Company’s 2021 Annual Report on Form 20-F.
(b)Recent accounting pronouncements
Discontinuation of LIBOR
In 2021, the Company adopted ASU 2020-04, “Reference Rate Reform (Topic 848)”, prospectively to contract modifications. The guidance provides optional relief for the discontinuation of LIBOR resulting from rate reform. Contract terms that are modified due to the replacement of a reference rate are not required to be remeasured or reassessed under FASB’s relevant U.S. GAAP Topic. The election is available by Topic. The Company has elected to apply the optional relief for contracts under ASC 470, “Debt”, ASC 840 and 842, “Leases”, and ASC 815, “Derivatives and Hedging”. There was no impact to the Company's financial statements upon initial adoption. The LIBOR replacement modifications for Debt contracts will be accounted for by prospectively adjusting the effective interest rate in the agreements. Existing lease and derivative contracts will require no reassessments. The ASU has not and is currently not expected to have a material impact on our consolidated financial statements.
Debt with conversion and other options
Effective January 1, 2022, the Company adopted ASU 2020-06, “Debt – Debt with Conversion and Other Options (Subtopic 470-20)” (“ASU 2020-06”), using the modified retrospective method, whereby the cumulative effect adjustment was made as of the date of the initial application. Accordingly, financial information and disclosures in the comparative period were not restated. The impact of the adoption of ASU 2020-06 resulted in an adjustment of $5,073,000 to opening retained earnings at January 1, 2022 related to the unamortized debt discount that was initially recorded when the convertible notes were issued. Under ASU 2020-06, the accounting for convertible debt instruments is simplified by reducing the number of accounting models and circumstances when embedded conversion features are separately recognized. This update also revises the method in which diluted earnings per share is calculated related to certain instruments with conversion features, among other clarifications. As a result of the adoption, the Company recognizes the maximum potential dilutive effect of its exchangeable notes in diluted EPS using the if-converted method effective January 1, 2022.
(c)Comparative information:
Certain prior period information has been reclassified to conform with current financial statement presentation.
2.Segment reporting:
For management purposes, the Company is organized based on its two leasing businesses and has two reportable segments, containership leasing and mobile power generation. The Company’s containership leasing segment owns and operates a fleet of containerships which are chartered primarily pursuant to long-term, fixed-rate time charters. The Company’s mobile power generation segment owns and operates a fleet of power generation assets, including aero-derivative gas turbines and other equipment, and provides power solutions to customers.
The Company’s chief operating decision makers monitor the operating results of the leasing businesses separately for the purpose of making decisions about resource allocation and performance assessment based on adjusted EBITDA, which is computed as net earnings before interest expense, income tax expense, depreciation and amortization expense, impairments, write-down and gains/losses on sale, gains/losses on derivative instruments, loss on foreign currency repatriation, change in contingent consideration asset, loss on debt extinguishment, other expenses and certain other items that the Company believes are not representative of its operating performance.
8

ATLAS CORP.
Notes to Interim Consolidated Financial Statements
(Unaudited)
(Tabular amounts in millions of United States dollars, except per share amount and number of shares)

2.Segment reporting (continued):
The following tables include the Company’s selected financial information by segment:
Three months ended March 31, 2022 Containership Leasing   Mobile Power Generation   Elimination and Other   Total
Revenue $ 384.6  $ 23.5  $ —  $ 408.1 
Operating expense 75.0  11.6  —  86.6 
Depreciation and amortization expense 78.4  9.7  —  88.1 
General and administrative expense 13.9  11.4  2.6  27.9 
Indemnity claim (income) under acquisition agreement —  (13.5) —  (13.5)
Operating lease expense 32.9  0.7  —  33.6 
Loss on sale 2.0  0.4  —  2.4 
Interest income (0.1) (0.1) —  (0.2)
Interest expense 40.9  5.1  (0.2) 45.8 
Income tax expense 0.3  —  —  0.3 
Three months ended March 31, 2021 Containership Leasing   Mobile Power Generation   Elimination and Other   Total
Revenue $ 331.6  $ 41.0  $ —  $ 372.6 
Operating expense 68.2  12.4  —  80.6 
Depreciation and amortization expense 75.2  12.1  —  87.3 
General and administrative expense 11.7  6.6  0.8  19.1 
Operating lease expense 35.4  0.7  —  36.1 
Gain on sale —  (0.5) —  (0.5)
Interest income (0.1) (0.4) —  (0.5)
Interest expense 42.7  5.1  (1.0) 46.8 
Income tax expense 0.1  6.6  —  6.7 
 
Three months ended March 31,
2022 2021
Containership leasing adjusted EBITDA $ 262.8  $ 216.3 
Mobile power generation adjusted EBITDA(1)
13.3  21.3 
Total segment adjusted EBITDA 276.1  237.6 
Eliminations and other (1.0) (0.3)
Depreciation and amortization 88.1  87.3 
Interest income (0.2) (0.5)
Interest expense 45.8  46.8 
Gain on derivative instruments (40.7) (8.7)
Other expenses 5.9  2.1 
Loss on contingent consideration asset 2.9  1.1 
Loss on foreign currency repatriation 3.2  6.0 
Loss (Gain) on sale 2.4  (0.5)
Consolidated net earnings before tax $ 169.7  $ 104.3 
(1)The calculation of adjusted EBITDA does not include the Indemnity claim under acquisition agreement (note 9) as an adjustment for the mobile power generation segment. Although the revenue reported for this segment is lower due to an injunction at one of the sites, the losses are recoverable through an indemnification agreement.
9

ATLAS CORP.
Notes to Interim Consolidated Financial Statements
(Unaudited)
(Tabular amounts in millions of United States dollars, except per share amount and number of shares)

2.Segment reporting (continued):
Total Assets March 31, 2022 December 31, 2021
Containership Leasing $ 9,823.6  $ 9,777.6 
Mobile Power Generation 830.4  842.7 
Elimination and Other (57.3) (50.7)
Total $ 10,596.7  $ 10,569.6 
  Three Months Ended March 31,
Capital expenditures by segment 2022 2021
Containership leasing $ 118.3  $ 198.7 
Mobile power generation 4.9  1.2 
3.Revenue:
Revenue disaggregated by segment and by type for the three months ended March 31, 2022 and 2021 is as follows:
 
Three months ended March 31, 2022
 
Containership Leasing(1)
  Mobile Power Generation   Total
Operating lease revenue $ 367.4    $ 22.4    $ 389.8 
Interest income from leasing 16.1    —    16.1 
Other 1.1    1.1    2.2 
  $ 384.6    $ 23.5    $ 408.1 
 
Three months ended March 31, 2021
 
Containership Leasing(1)
  Mobile Power Generation   Total
Operating lease revenue $ 320.5    $ 38.2    $ 358.7 
Interest income from leasing 10.0    —    10.0 
Other 1.1    2.8    3.9 
  $ 331.6    $ 41.0    $ 372.6 
(1)Containership leasing revenue includes both bareboat charter and time charter revenue.
As at March 31, 2022, the minimum future revenues to be received on committed operating leases, service arrangements and interest income to be earned from direct financing leases are as follows:
 
Operating lease (1)
 
Finance lease (2)
  Other   Total committed revenue
Remainder of 2022 $ 1,232.1  $ 47.8  $ 3.1  $ 1,283.0 
2023 1,559.9  60.9  0.6  1,621.4 
2024 1,356.2  58.2  —  1,414.4 
2025 906.5  55.2  —  961.7 
2026 469.9  53.1  —  523.0 
Thereafter 345.1  393.1  —  738.2 
  $ 5,869.7  $ 668.3  $ 3.7  $ 6,541.7 
(1)Minimum future operating lease revenue includes payments from signed charter agreements on operating vessels that have not yet commenced and includes $53,965,000 of lease payments from three vessels that are classified as “Assets held for sale”.
(2)Minimum future interest income includes direct financing leases currently in effect.
10

ATLAS CORP.
Notes to Interim Consolidated Financial Statements
(Unaudited)
(Tabular amounts in millions of United States dollars, except per share amount and number of shares)

3.Revenue (continued):
As at March 31, 2022, the minimum future revenues to be received based on each segment are as follows:
 
Containership Leasing(1)(2)
  Mobile Power Generation   Total committed revenue
Remainder of 2022 $ 1,155.4  $ 127.6  $ 1,283.0 
2023 1,517.2  104.2  1,621.4 
2024 1,349.6  64.8  1,414.4 
2025 896.9  64.8  961.7 
2026 523.0  —  523.0 
Thereafter 738.2  —  738.2 
  $ 6,180.3  $ 361.4  $ 6,541.7 
(1)Minimum future operating lease revenue includes payments from signed charter agreements on operating vessels that have not yet commenced and includes $53,965,000 of lease payments from three vessels that are classified as “Assets held for sale”.
(2)Minimum future interest income includes direct financing leases currently in effect.
Minimum future revenues assume 100% utilization, extensions only at the Company’s unilateral option and no renewals. It does not include signed charter agreements on undelivered vessels.
The Company’s revenue was derived from the following customers:
 
Three Months Ended March 31,
 
2022
 
2021
COSCO $ 121.1  $ 106.8 
Yang Ming Marine 60.4  63.4 
ONE 58.6  64.3 
Other 168.0  138.1 
  $ 408.1  $ 372.6 
4.Related party transactions:
(a)The income or expenses with related parties relate to amounts paid to or received from individuals or entities that are associated with the Company or with the Company’s directors or officers and these transactions are governed by pre-arranged contracts.
(b)Over the course of 2018, 2019 and 2020, Seaspan issued to Fairfax Financial Holdings Limited and certain of its affiliates ("Fairfax") an aggregate $600,000,000 of 5.50% senior notes due in 2025, 2026 and 2027 (the Fairfax Notes) and warrants to purchase an aggregate 101,923,078 common shares of Seaspan. Two tranches of warrants, each for 38,461,539 common shares, were exercisable at a price of $6.50 per share. One tranche of warrants, for 25,000,000 common shares, was exercisable at a price of $8.05 per share. As of April 7, 2022, all such warrants have been exercised.
In April 2021, in connection with an amendment to the APR Energy acquisition agreement, the Company issued to Fairfax warrants to purchase 5,000,000 common shares of the Company at an exercise price of $13.00 per share.
In June 2021, the Company and Seaspan exchanged and amended $300,000,000 of the Fairfax Notes for (i) 12,000,000 Series J 7.00% Cumulative Redeemable Perpetual Preferred Shares of the Company (the “Series J Preferred Shares”), representing total liquidation value of $300,000,000, and (ii) warrants to purchase 1,000,000 common shares at an exercise price of $13.71 per share. The exchanged Fairfax Notes were subsequently cancelled and, in August 2021, Seaspan redeemed for cash the remaining Fairfax Notes at a redemption price equal to 100% of the principal amount plus any accrued and unpaid interest.
During the three months ended March 31, 2022, the dividends paid on Series J Preferred Shares equal to $5,250,000 (March 31, 2021 – nil).
11

ATLAS CORP.
Notes to Interim Consolidated Financial Statements
(Unaudited)
(Tabular amounts in millions of United States dollars, except per share amount and number of shares)

4.Related party transactions (continued):
(c)On February 28, 2020, in connection with the acquisition of APR Energy, Fairfax received common shares of Atlas as consideration for its equity interests in APR Energy and as settlement of indebtedness owing to Fairfax by APR Energy. In addition, Atlas reserved for issuance Holdback Shares for Fairfax. Fairfax remains a counterparty to certain indemnification and compensation arrangements related to the acquisition of APR Energy.
During the three months ended March 31, 2022, 48,985 common shares were issued out of Holdback Shares. These Holdback Shares were released from the holdback of the minority sellers and purchased by Fairfax. Fairfax also paid $2,885,000 to the Company for settlement of an indemnity related to the cash repatriation from a foreign jurisdiction. In addition, the Company received $2,921,000 for the three months ended March 31, 2022 (March 31, 2021 – nil) from Fairfax for the settlement of an indemnity related to losses realized on sale or disposal of certain property, plant and equipment and inventory items.
For the three months ended March 31, 2021, interest expense related to the Fairfax Notes, excluding amortization of the debt discount, was $8,250,000. For the three months ended March 31, 2021, amortization of debt discount was $5,494,000.
(d)As at March 31, 2022, Fairfax held approximately 39.6% of the Company’s issued and outstanding common shares and has designated two members to the Company’s board of directors.
(e)As at March 31, 2022, the Company has invested $1,000,000 (March 31, 2021 – nil) in a joint venture with Zhejiang Energy Group (“ZE JV”). Pursuant to a ship management agreement, the Company manages the ship operations of the vessel owned by the ZE JV. During the three months ended March 31, 2022, the Company earned revenue of $489,000 (2021 – nil) and incurred expenses of $498,000 (2021 – nil) in connection with the ship management of the vessel.
5.Net investment in lease:
  March 31, 2022 December 31, 2021
Undiscounted lease receivable $ 1,428.6  $ 1,448.2 
Unearned interest income (674.7) (689.9)
Net investment in lease $ 753.9  $ 758.3 
  March 31, 2022 December 31, 2021
Lease receivables $ 753.9  $ 751.4 
Unguaranteed residual value —  6.9 
Net investment in lease 753.9  758.3 
Current portion of net investment in lease (17.1) (16.8)
Net investment in lease $ 736.8  $ 741.5 
At March 31, 2022, the minimum lease receivable from finance leases are as follows:
Remainder of 2022 $ 59.7 
2023 79.3 
2024 79.5 
2025 79.3 
2026 79.3 
Thereafter 1,051.5 
  $ 1,428.6 
12

ATLAS CORP.
Notes to Interim Consolidated Financial Statements
(Unaudited)
(Tabular amounts in millions of United States dollars, except per share amount and number of shares)

6.Property, plant and equipment:
March 31, 2022 Cost   Accumulated depreciation   Net book value
Vessels $ 9,295.7  $ (2,855.0) $ 6,440.7 
Equipment and other 564.1  (195.1) 369.0 
Property, plant and equipment $ 9,859.8  $ (3,050.1) $ 6,809.7 
December 31, 2021 Cost   Accumulated
depreciation
  Net book
value
Vessels $ 9,410.9  $ (2,830.4) $ 6,580.5 
Equipment and other 557.3  (185.6) 371.7 
Property, plant and equipment $ 9,968.2  $ (3,016.0) $ 6,952.2 
During the three months ended March 31, 2022, depreciation and amortization expense relating to property, plant and equipment was $80,486,000 (2021 – $80,006,000).
Vessel sales
In February 2022, the Company completed the sale of one 4,250 TEU vessel to a liner company for gross proceeds of $32,750,000 and recognized a gain on sale of $6,597,000.
Assets classified as held for sale
In December 2021, the Company entered into memoranda of agreement with a liner company for the sale of three 4,250 TEU vessels. As at December 31, 2021 these vessels were classified as held for use. In February 2022, one of these vessels was delivered to the purchaser as described above and the remaining two vessels were reclassified as assets held for sale as at March 31, 2022.
An additional 4,250 TEU vessel was classified as held for sale at March 31, 2022 and a loss on classification as asset held for sale of $8,562,000 was recognized for this vessel (note 21).
7.Vessels under construction
During the three months ended March 31, 2022, vessels under construction includes $9,347,000 of capitalized interest and $103,307,000 of installment payments (March 31, 2021 - $776,000 and $179,220,000, respectively).
8.Right-of-use assets:
March 31, 2022 Cost   Accumulated amortization   Net book value
Vessel operating leases $ 1,012.6  $ (353.4) $ 659.2 
Other operating leases 14.5  (7.0) 7.5 
Vessel finance leases 62.3  (0.7) 61.6 
Right-of-use assets $ 1,089.4  $ (361.1) $ 728.3 
December 31, 2021 Cost   Accumulated amortization   Net book value
Vessel operating leases $ 1,066.6  $ (350.0) $ 716.6 
Office operating leases 15.8  (7.5) 8.3 
Right-of-use assets $ 1,082.4  $ (357.5) $ 724.9 
In January 2022, the Company exercised its option under an existing lease financing arrangement to purchase one 10,000 TEU vessel. The purchase is expected to complete in January 2023 at the pre-determined purchase price of $52,690,000.
During the three months ended March 31, 2022, the amortization of right-of-use assets was $29,600,000 (2021 – $30,777,000).
13

ATLAS CORP.
Notes to Interim Consolidated Financial Statements
(Unaudited)
(Tabular amounts in millions of United States dollars, except per share amount and number of shares)

9.Other assets:
  March 31, 2022 December 31, 2021
Intangible assets (a)
$ 86.2  $ 90.1 
Deferred dry-dock (b)
75.8  79.4 
Restricted cash 38.2  38.2 
Contingent consideration asset (c)
40.7  49.2 
Indemnity claim under acquisition agreement (d)
56.1  42.5 
Deferred financing fees on undrawn financing (e)
75.3  77.0 
Other 48.8  48.0 
$ 421.1  $ 424.4 
(a)Intangible assets:
March 31, 2022 Cost   Accumulated Amortization   Net book value
Customer contracts $ 129.9  $ (80.2) $ 49.7 
Trademark 27.4  (2.9) 24.5 
Other 17.2  (5.2) 12.0 
  $ 174.5  $ (88.3) $ 86.2 
December 31, 2021 Cost   Accumulated Amortization   Net book value
Customer contracts $ 129.9  $ (76.2) $ 53.7 
Trademark 27.4  (2.5) 24.9 
Other 16.5  (5.0) 11.5 
  $ 173.8  $ (83.7) $ 90.1 
During the three months ended March 31, 2022, amortization related to intangible assets was $4,592,000 (2021 – $4,999,000).
Future amortization of intangible assets is as follows:
Remainder of 2022 $ 13.6 
2023 14.7 
2024 11.9 
2025 7.8 
2026 4.2 
Thereafter 34.0 
  $ 86.2 
(b)Deferred dry-dock:
During the three months ended March 31, 2022, changes in deferred dry-dock were as follows:
December 31, 2021 $ 79.4 
Costs incurred 3.7 
Amortization expensed (1)
(7.3)
March 31, 2022 $ 75.8 
(1)Amortization of dry-docking costs is included in depreciation and amortization
14

ATLAS CORP.
Notes to Interim Consolidated Financial Statements
(Unaudited)
(Tabular amounts in millions of United States dollars, except per share amount and number of shares)

9.Other assets (continued):
(c)Contingent consideration asset:
As a part of the acquisition of APR Energy on February 28, 2020, the Company is compensated by the sellers for certain losses that may be incurred on future cash repatriation from a foreign jurisdiction until the earlier of (1) reaching the maximum cash flows subject to compensation, (2) termination of specified contracts, (3) sustaining the ability to repatriate cash without losses, and (4) April 30, 2022. The amount of compensation depends on the Company’s ability to generate cash flows on specific contracts in the foreign jurisdiction and the magnitude of losses incurred on repatriation. The maximum amount of cash flows subject to compensation is $110,000,000. In February 2021, Fairfax additionally agreed to compensate the Company for future losses realized on sale or disposal of certain property, plant and equipment and inventory items calculated as the difference between the proceeds on sale or disposal and the book value of the respective assets at February 28, 2020, prior to acquisition. The maximum amount of losses subject to compensation under the February 2021 agreement is $64,000,000.
Contingent consideration asset, December 31, 2021
$ 55.3 
Change in fair value (2.9)
Compensation received (6.2)
Contingent consideration asset 46.2 
Current portion included in prepaid expenses and other (5.5)
Contingent consideration asset, March 31, 2022
$ 40.7 
(d)Indemnity claim under acquisition agreement
As a part of the acquisition of APR Energy on February 28, 2020, the Company is compensated by the sellers for losses resulting from an ongoing injunction on a certain site in Argentina. The losses will be settled through a combination of cancellation of Holdback Shares and cash at (i) the lifting of the injunction or (ii) the expiry of the relevant contract in May 2022.
(e)Deferred financing fees on undrawn financings
The Company has entered into financing arrangements for all of its vessels under construction. As the financing arrangements are undrawn as at March 31, 2022, the amounts incurred have been capitalized and recorded as long-term asset. As the financing is drawn, the amounts will be reclassified and presented as a direct deduction from the related debt liability.
10.Long-term debt:
  March 31, 2022 December 31, 2021
Long-term debt:      
 Revolving credit facilities (a) (c)
$ —  $ — 
 Term loan credit facilities (b) (c)
2,295.5  2,341.8 
 Senior unsecured notes
1,302.4  1,302.4 
 Senior unsecured exchangeable notes 201.3  201.3 
 Senior secured notes
500.0  500.0 
  4,299.2  4,345.5 
Debt discount on senior unsecured exchangeable notes —  (5.1)
Deferred financing fees (55.3) (57.6)
Long-term debt 4,243.9  4,282.8 
Current portion of long-term debt (651.9) (551.0)
Long-term debt $ 3,592.0  $ 3,731.8 
15

ATLAS CORP.
Notes to Interim Consolidated Financial Statements
(Unaudited)
(Tabular amounts in millions of United States dollars, except per share amount and number of shares)

10.Long-term debt (continued):
(a)Revolving credit facilities:
In February 2022, the Company closed a new $250,000,000, 3-year unsecured revolving credit facility which replaces a $150,000,000 2-year unsecured revolving credit facility. At March 31, 2022 and December 31, 2021, the Company had three revolving credit facilities, which provided, as at March 31, 2022, for aggregate borrowings of up to $700,000,000 (December 31, 2021 – $600,000,000), of which $700,000,000 (December 31, 2021 - $600,000,000) was undrawn.
The Company is subject to commitment fees ranging between 0.45% and 0.5% (December 31, 2021 – 0.5% and 0.6%) calculated on the undrawn amounts under the various facilities.
(b)Term loan credit facilities:
As at March 31, 2022, the Company has entered into $4,005,723,000 (December 31, 2021 – $4,052,103,000) of term loan credit facilities, of which $1,710,224,000 (December 31, 2021 - $1,710,224,000) was undrawn.
Term loan credit facilities drawn mature between December 31, 2022 and January 21, 2030.
For all but four of the Company’s term loan credit facilities, interest is calculated based on three month or six month LIBOR plus a margin per annum, dependent on the interest period selected by the Company. The three month and six month average LIBOR was 0.7% and 0.6%, respectively (December 31, 2021 – 0.2% and 0.2%) and the margins ranged between 0.4% and 3.5% as at March 31, 2022 (December 31, 2021 – 0.4% and 3.5%).
For one of the term loan credit facilities with a total principal amount outstanding of $24,005,000 (December 31, 2021 – $27,198,000), interest is calculated based on the Export-Import Bank of Korea (“KEXIM”) rate plus 0.7% per annum.
For two of the term loan credit facilities with a total principal amount outstanding of $9,877,000 (December 31, 2021 – $10,923,000), interest is calculated based on a fixed rate of 3.8% per annum.
The weighted average rate of interest, including the applicable margin, was 2.1% as at March 31, 2022 (December 31, 2021 – 1.9%) for the Company’s term loan credit facilities. One of the Company’s term loan credit facilities bears interest at a fixed rate of 7.7% per annum. Interest payments are made in monthly, quarterly or semi-annual payments.
The Company is subject to commitment fees ranging between 0.2% and 0.6% (December 31, 2021 – 0.2% and 0.6%) calculated on the undrawn amounts under the various facilities.
The following is a schedule of future minimum repayments of the Company’s term loan credit facilities as of March 31, 2022.
Remainder of 2022 $ 509.1 
2023 376.5 
2024 148.9 
2025 146.1 
2026 851.7 
Thereafter 263.2 
  $ 2,295.5 
16

ATLAS CORP.
Notes to Interim Consolidated Financial Statements
(Unaudited)
(Tabular amounts in millions of United States dollars, except per share amount and number of shares)

10.Long-term debt (continued):
(c)Credit facilities – other:
As at March 31, 2022, the Company’s credit facilities were primarily secured by first-priority mortgages granted on most of its power generation assets and 62 of its vessels, together with other related security. The security for each of the Company’s current secured credit facilities may include, without limitation:
A first priority mortgage on collateral assets;
An assignment of the Company’s lease agreements and earnings related to the related collateral assets;
An assignment of the insurance policies covering each of the collateral assets that are subject to a related mortgage and/or security interest;
An assignment of the Company’s related shipbuilding contracts and the corresponding refund guarantees; and
A pledge over the related retention accounts.
As at March 31, 2022, $1,479,550,000 principal amount of indebtedness under one of the Company’s term loan and revolving credit facilities, together with $500,000,000 of sustainability-linked fixed rate notes with maturities from June 2031 to June 2036, was secured by a portfolio of 49 vessels, the composition of which can be changed, and is subject to a borrowing base and portfolio concentration requirements, as well as compliance with financial covenants and certain negative covenants.
The Company may prepay certain amounts outstanding without penalty, other than breakage costs in certain circumstances, with the exception of one term loan credit facility, where the Company may prepay borrowings up to March 6, 2023 with penalties and thereafter without penalty. A prepayment may be required as a result of certain events, including (without limitation) a change of control, the sale or loss of assets, or a termination or expiration of certain lease agreements (and the inability to enter into a lease replacing the terminated or expired lease acceptable to lenders within a specified period of time). The amount that must be prepaid may be calculated based on the loan to market value. In these circumstances, valuations of the Company’s assets are conducted on a “without lease” and/or “orderly liquidation” basis as required under the credit facility agreement.
Each credit facility contains a mix of financial covenants requiring the borrower and/or guarantor of the facility to maintain minimum liquidity, tangible net worth, interest and principal coverage ratios, and debt-to-assets ratios, as defined. Each of Atlas and Seaspan are guarantors under certain facilities.
Some of the facilities also have an interest and principal coverage ratio, debt service coverage and vessel value requirement for the subsidiary borrower. The Company was in compliance with these covenants as at March 31, 2022.
11.Operating lease liabilities:
  March 31, 2022 December 31, 2021
Operating lease commitments $ 735.2  $ 791.2 
Impact of discounting (92.8) (104.6)
Impact of changes in variable rates 18.5  30.8 
Operating lease liabilities 660.9  717.4 
Current portion of operating lease liabilities (145.3) (155.1)
Operating lease liabilities $ 515.6  $ 562.3 

17

ATLAS CORP.
Notes to Interim Consolidated Financial Statements
(Unaudited)
(Tabular amounts in millions of United States dollars, except per share amount and number of shares)

11.Operating lease liabilities (continued):
Operating lease costs related to vessel sale-leaseback transactions are summarized as follows:
  Three Months Ended March 31,
  2022 2021
Lease costs:      
 Operating lease costs $ 36.3  $ 40.9 
 Variable lease adjustments (2.7) (3.8)
 
Other information:
 Operating cash outflow used for operating leases 33.0  35.5 
 Weighted average discount rate(1)
4.8  % 4.8  %
 Weighted average remaining lease term 5 years 6 years
(1)The weighted average discount rate is based on a fixed rate at the time the lease was entered into and is adjusted quarterly as each lease payment is made.
12.Finance lease liabilities:
  March 31, 2022 December 31, 2021
Finance lease liabilities $ 59.3  $ — 
Current portion of finance lease liabilities (59.3) — 
Long-term finance lease liabilities $ —  $ — 
In January 2022, the Company exercised its option under an existing operating lease to purchase one 10,000 TEU vessel. The purchase is expected to complete in January 2023 at the pre-determined purchase price of $52,690,000.
As at March 31, 2022, the total remaining commitments related to financial liabilities of this vessel were approximately $60,383,000 (December 31, 2021 – nil), including imputed interest of $1,118,000 (December 31, 2021 – nil), repayable from 2022 through 2023.
The weighted average interest rate on obligations related to finance leases as at March 31, 2022 was 3.2%.
13.Other financing arrangements:
  March 31, 2022 December 31, 2021
Other financing arrangements $ 1,338.0  $ 1,363.1 
Deferred financing fees (25.0) (23.3)
Other financing arrangements 1,313.0  1,339.8 
Current portion of other financing arrangements (100.8) (100.5)
Other financing arrangements $ 1,212.2  $ 1,239.3 
Based on amounts funded for other financing arrangements, payments due to lessors would be as follows:
Remainder of 2022 $ 75.9 
2023 101.4 
2024 102.6 
2025 97.4 
2026 94.2 
Thereafter 866.5 
$ 1,338.0 
18

ATLAS CORP.
Notes to Interim Consolidated Financial Statements
(Unaudited)
(Tabular amounts in millions of United States dollars, except per share amount and number of shares)

14.Other liabilities:
  March 31, 2022 December 31, 2021
Asset retirement obligations(a)
$ 35.1  $ 37.4 
Other 35.0  22.3 
Other long-term liabilities 70.1  59.7 
Current portion of other long-term liabilities (54.5) (42.0)
Other long-term liabilities $ 15.6  $ 17.7 
(a)Asset retirement obligations:
Asset retirement obligations, December 31, 2021
$ 37.4 
Liabilities incurred (2.3)
Asset retirement obligations, March 31, 2022
$ 35.1 
15.Income tax:
The effective tax rate for the three months ended March 31, 2022 was 0.2% (March 31, 2021 – 6.4%). The tax rate was significantly lower than the United Kingdom statutory rate of 19% primarily due to international shipping reciprocal exemptions.
16.Share capital:
(a)Common shares:
Pursuant to the APR Energy acquisition agreement, Holdback Shares are issuable to the sellers at a future date, subject to settlement of potential future events. As of March 31, 2022, 6,040,399 common shares are issuable as Holdback Shares, including 727,351 shares held in treasury.
During the three months ended March 31, 2022, 48,985 Holdback Shares were released from holdback and issued to the Sellers.
In March 2022, the Company’s stock incentive plan was amended and restated to increase the number of common shares issuable under the plan from 10,000,000 to 20,000,000.
(b)Preferred shares:
As at March 31, 2022, the Company had the following preferred shares outstanding:
                Liquidation preference
  Shares   Dividend rate
per annum
Redemption by Company
permitted on or after(1)
  March 31, 2022   December 31, 2021
Series Authorized Issued  
D 20,000,000 5,093,728 7.95  % January 30, 2018 $ 127.3  $ 127.3 
H 15,000,000 9,025,105 7.875  % August 11, 2021 225.6  225.6 
I 6,000,000 6,000,000 8.00  % October 30, 2023 150.0  150.0 
J(2)
12,000,000 12,000,000 7.00  % June 11, 2021 300.0  300.0 
(1)Redeemable by the Company, in whole or in part, at a redemption price of $25.00 per share plus unpaid dividends. The preferred shares are not convertible into common shares and are not redeemable by the holder.
(2)Dividends are payable on the Series J Cumulative Redeemable Preferred Shares at a rate of 7.0% for the first five years after the issue date, with 1.5% increases annually thereafter to a maximum of 11.5%
The Company’s preferred shares are subject to certain financial covenants. The Company was in compliance with these covenants on March 31, 2022.
19

ATLAS CORP.
Notes to Interim Consolidated Financial Statements
(Unaudited)
(Tabular amounts in millions of United States dollars, except per share amount and number of shares)

16.Share capital (continued):
(c)Cumulative redeemable preferred shares:
As described in note 4(b), in June 2021, the Company and Seaspan exchanged and amended $300,000,000 of the Fairfax Notes for (i) 12,000,000 Series J 7.00% Cumulative Redeemable Perpetual Preferred Shares, representing total liquidation value of $300,000,000, and (ii) warrants to purchase 1,000,000 common shares at an exercise price of $13.71 per share.
Dividends are payable on the Series J Preferred Shares at a rate of 7.0% per annum for the first five years after the issuance, with annual increases of 1.5% thereafter to a maximum of 11.5%.
(d)Restricted shares:
During the three months ended March 31, 2022, the Company granted 56,610 restricted shares to its board of directors which vest on January 1, 2023. In March 2022, the Company granted 4,000,000 unrestricted, fully vested shares to the chairman of the board with a requisite service period until September 1, 2027. From the grant date to December 31, 2022, if he ceases to act as a director, other than for reason of his death or disability, the shares will be forfeited. From January 1, 2023 to the end of the service period, except in the event of his death or disability, a pro-rated number of shares will be returned for each month less than 56 that he serves.
(e)Restricted stock units:
During the three months ended March 31, 2022, the Company granted 336,313 restricted stock units to certain members of senior management. The restricted stock units generally vest over two years, in equal tranches.
20

ATLAS CORP.
Notes to Interim Consolidated Financial Statements
(Unaudited)
(Tabular amounts in millions of United States dollars, except per share amount and number of shares)

17.Earnings per share (“EPS”):
  Three Months Ended March 31, 2022 Three Months Ended March 31, 2021
 
Earnings
(numerator)
 
Shares
(denominator)
 
Per share
amount
 
Earnings
(numerator)
 
Shares
(denominator)
 
Per share
amount
Net earnings $ 169.4  $ 97.6 
Less preferred share dividends:
Series D (2.5) (2.5)
Series E(1)
—  (2.8)
Series G(1)
—  (4.0)
Series H (4.4) (4.5)
Series I (3.0) (3.0)
Series J (5.3) — 
Basic EPS:
Earnings attributable to common shareholders $ 154.2  247,020,000  $ 0.62  $ 80.8  246,033,000  $ 0.33 
Effect of dilutive securities:
Share-based compensation 2,391,000  —  2,030,000 
Fairfax warrants 12,098,000  —  9,284,000 
Holdback shares 3,521,000  —  6,322,000 
Senior unsecured exchangeable notes 15,475,000  —  — 
Diluted EPS:
Interest on senior unsecured exchangeable notes 1.9  — 
Earnings attributable to common shareholders $ 156.1  280,505,000  $ 0.56  $ 80.8  263,669,000  $ 0.31 
(1)On July 1, 2021, the Company redeemed all of its outstanding 8.25% Series E Cumulative Redeemable Preferred Shares and outstanding 8.20% Series G Cumulative Redeemable Perpetual Preferred shares for cash at $25.00 per share plus all accrued and unpaid dividends.
18.Supplemental cash flow information:
  Three Months Ended March 31,
  2022 2021
Interest paid $ 57.4  $ 32.6 
Interest received 0.2  0.5 
Undrawn credit facility fee paid 6.3  0.4 
Income taxes paid 1.7  2.0 
  Three Months Ended March 31,
  2022 2021
Non-cash financing and investing transactions:    
Change in right-of-use assets and operating lease liabilities $ 28.5  $ — 
Commencement of sales-type lease —  88.1 
Dividend reinvestment 0.1  0.1 
Interest capitalized on vessels under construction 9.3  0.8 
  $ 37.9  $ 89.0 
21

ATLAS CORP.
Notes to Interim Consolidated Financial Statements
(Unaudited)
(Tabular amounts in millions of United States dollars, except per share amount and number of shares)

18.Supplemental cash flow information (continued):
  Three Months Ended March 31,
  2022 2021
Changes in operating assets and liabilities
Accounts receivable $ (11.0) $ (6.1)
Inventories (3.9) (0.4)
Prepaids expenses and other, and other assets (14.2) (8.1)
Net investment in lease 4.3  3.2 
Accounts payable and accrued liabilities (21.1) (12.8)
Settlement of decommissioning provisions (3.1) (0.4)
Deferred revenue (17.3) (0.2)
Income tax payable (2.6) 5.1 
Major maintenance (2.1) (5.6)
Other liabilities 9.1  (0.1)
Operating lease liabilities (27.1) (30.0)
Finance lease liabilities (3.0) — 
Derivative instruments 6.1  6.8 
Contingent consideration asset 5.5  6.0 
  $ (80.4) $ (42.6)
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the amounts shown in the consolidated statements of cash flows:
  March 31,
  2022 2021
       
Cash and cash equivalents $ 251.3  $ 337.5 
Restricted cash included in other assets (note 9) 38.2  38.2 
Total cash, cash equivalents and restricted cash shown in the
 consolidated statements of cash flows
$ 289.5  $ 375.7 
19.Commitments and contingencies:
(a)Operating leases:
At March 31, 2022, the commitment under operating leases for vessels was $727,016,000 for the remainder of 2022 to 2029, and for other leases was $8,147,000 for the remainder of 2022 to 2024. Total commitments under these leases are as follows:
Remainder of 2022 $ 103.9 
2023 139.3 
2024 141.4 
2025 127.8 
2026 113.1 
Thereafter 109.7 
  $ 735.2 
For operating leases indexed to three-month LIBOR, commitments under these leases are calculated using the LIBOR in place as at March 31, 2022 for the Company.
22

ATLAS CORP.
Notes to Interim Consolidated Financial Statements
(Unaudited)
(Tabular amounts in millions of United States dollars, except per share amount and number of shares)

19.Commitments and contingencies:
(b) Vessel commitment:
As at March 31, 2022, the Company had entered into agreements to acquire 67 vessels (December 31, 2021 – 67 vessels). The Company has outstanding commitments for the remaining installment payments as follows:
Remainder of 2022 $ 965.1 
2023 2,747.4 
2024 2,457.8 
Total $ 6,170.3 
(c)Letter of credit:
As at March 31, 2022, the Company had $10,350,000 (December 31, 2021 $10,350,000) in letters of credit outstanding in support of its mobile power generation business, all of which are unused.

20.Financial instruments:
(a)Fair value
The carrying values of cash and cash equivalents, short-term investments, restricted cash, accounts receivable, accounts payable, income tax payable and accrued liabilities approximate their fair values because of their short term to maturity.
As of March 31, 2022, the fair value of the Company’s revolving credit facilities and term loan credit facilities, excluding deferred financing fees was $2,270,792,000 (December 31, 2021 – $2,326,568,000) and the carrying value was $2,295,499,000 (December 31, 2021 – $2,341,879,000). As of March 31, 2022, the fair value of the Company’s other financing arrangements, excluding deferred financing fees, was $1,394,100,000 (December 31, 2021 – $1,419,508,000) and the carrying value was $1,337,977,000 (December 31, 2021 – $1,363,098,000). The fair value of the revolving and term loan credit facilities and other financing arrangements, excluding deferred financing fees, was estimated based on expected principal repayments and interest, discounted by relevant forward rates plus a margin appropriate to the credit risk of the Company. Therefore, the Company categorized the fair value of these financial instruments as Level 2 in the fair value hierarchy.
As of March 31, 2022, the fair value of the Company’s senior unsecured notes was $1,341,013,000 (December 31, 2021 – $1,349,212,000) and the carrying value was $1,302,350,000 (December 31, 2021 – $1,302,350,000). The fair value of the Company’s senior unsecured exchangeable Notes was $198,724,000 (December 31, 2021 – $209,566,000) and the carrying value was $201,250,000 (December 31, 2021 $201,250,000) or $201,250,000 (December 31, 2021 $196,177,000), net of debt discount. The fair value of the Company’s senior secured notes was $453,873,000 (December 31, 2021 $456,875,000) and the carrying value was $500,000,000 (December 31, 2021 $500,000,000). The fair value was calculated using the present value of expected principal repayments and interest discounted by relevant forward rates plus a margin appropriate to the credit risk of the Company. As a result, these amounts were categorized as Level 2 in the fair value hierarchy.
The Company’s interest rate derivative financial instruments are re-measured to fair value at the end of each reporting period. The fair values of the interest rate derivative financial instruments have been calculated by discounting the future cash flow of both the fixed rate and variable rate interest rate payments. The discount rate is derived from a yield curve created by nationally recognized financial institutions adjusted for the associated credit risk. The fair values of the interest rate derivative financial instruments are determined based on inputs that are readily available in public markets or can be derived from information available in publicly quoted markets. Therefore, the Company categorized the fair value of these derivative financial instruments as Level 2 in the fair value hierarchy.
23

ATLAS CORP.
Notes to Interim Consolidated Financial Statements
(Unaudited)
(Tabular amounts in millions of United States dollars, except per share amount and number of shares)

20.Financial instruments (continued):
(a)Fair value (continued):
As part of the acquisition of APR Energy, the Company obtained a contingent consideration asset related to compensation the Company will receive from the sellers on losses that may be generated from cash repatriation from a foreign jurisdiction. The fair value of the contingent consideration asset is calculated as the present value of expected future compensable losses from conversion of cash from foreign currency to US dollars, derived from the discount expected to be realized on repatriation of cash from the foreign jurisdiction over a specified period of time, which is a significant unobservable input. As such, the Company categorized the fair value of the contingent consideration asset as Level 3 in the fair value hierarchy. The discount expected to be realized on future repatriation of cash as of March 31, 2022 is 52%. An increase of 5% on the discount would result in an increase in the fair value of approximately $55,000. A decrease of 5% on the discount would result in a decrease in the fair value of approximately $55,000.
As part of the acquisition of APR Energy, the Company also obtained a contingent consideration asset related to compensation the Company expects to receive from Fairfax on losses realized on future sale or disposal of certain property, plant and equipment and inventory items. The fair value of the contingent consideration asset is determined based on the present value of expected future compensation, calculated as the difference between the book value of the respective assets at acquisition and the realizable value of the asset obtained from market quotes, which is a significant unobservable input. As such, the Company categorized the fair value of the contingent consideration asset as Level 3 in the fair value hierarchy.
Unobservable inputs for recurring and non-recurring Level 3 disclosures are obtained from third parties whenever possible and reviewed by the Company for reasonableness.
(b)Interest rate swap derivatives:
As of March 31, 2022, the Company had the following outstanding interest rate derivatives:
Fixed per annum rate swapped for LIBOR
 
Notional
amount as of
March 31, 2022
 
Maximum
notional
amount(1)
  Effective date   Ending date
0.1925%   $ 500.0  $ 500.0  January 31, 2022 January 31, 2032
5.4200%   269.6  269.6  September 6, 2007 May 31, 2024
1.6490%   160.0  160.0  September 27, 2019 May 14, 2024
0.7270%   125.0  125.0  March 26, 2020 March 26, 2025
1.6850%   110.0  110.0  November 14, 2019 May 15, 2024
0.6300%   94.0  94.0  January 21, 2021 October 14, 2026
0.6600%   94.0  94.0  February 4, 2021 October 14, 2026
1.4900%   25.6  25.6  February 4, 2020 December 30, 2025
(1)Over the term of the interest rate swaps, the notional amounts increase and decrease. These amounts represent the peak notional amount over the remaining term of the swap.
If interest rates remain at their current levels, the Company expects that $8,998,000 would be settled in cash in the next 12 months on interest rate swaps maturing after March 31, 2022. The amount of the actual settlement may be different depending on the interest rate in effect at the time settlements are made.
24

ATLAS CORP.
Notes to Interim Consolidated Financial Statements
(Unaudited)
(Tabular amounts in millions of United States dollars, except per share amount and number of shares)

20.Financial instruments (continued):
(c)Financial instruments measured at fair value:
The following provides information about the Company’s financial instruments measured at fair value:

  March 31, 2022 December 31, 2021
Contingent consideration asset (note 9(c)) $ 46.2  $ 55.3 
Fair value of derivative assets
 Interest rate swaps 39.0  6.1 
Fair value of derivative liabilities
 Interest rate swaps 14.6  28.5 
The following table provides information about gains and losses included in net earnings and reclassified from accumulated other comprehensive loss (“AOCL”) into earnings:
  Three months ended March 31,
  2022 2021
(Gain) Loss on recognized
   in net earnings:
     
(Gain) on interest rate swaps $ (40.7) $ (9.4)
Loss on derivative put instrument —  0.7 
Loss on contingent consideration asset 2.9  1.1 
Loss reclassified from AOCL to net earnings(1)
Depreciation and amortization 0.2  0.3 
(1)The effective portion of changes in unrealized loss on interest rate swaps was recorded in accumulated other comprehensive income until September 30, 2008 when these contracts were de-designated as accounting hedges. The amounts in accumulated other comprehensive income will be recognized in earnings when and where the previously hedged interest is recognized in earnings.
The estimated amount of AOCL expected to be reclassified to net earnings within the next 12 months is approximately $1,019,000.
21.Subsequent events:
a)On April 7, 2022, the Company declared quarterly dividends of $0.496875, $0.492188, $0.500000 and $0.437500 per Series D, Series H, Series I and Series J preferred share, respectively, representing a total distribution of $15,223,000.00. The dividends were paid on May 2, 2022.
b)On April 7, 2022, the Company declared quarterly dividends of $0.125 per common share to all shareholders of record as of April 20, 2022. The dividends were paid on May 2, 2022.
c)In April 2022, the Company completed the sale of one 4,250 TEU vessel that was classified as “Assets held for Sale” for gross proceeds of $15,500,000. The Company continues to manage the ship operations of the vessel pursuant to a ship management agreement.
d)In April 2022, the Company entered into memoranda of agreement to sell four 4,250 TEU vessels, all of which are expected to be completed in the second and third quarters of 2022, subject to closing conditions.
e)In April 2022, Fairfax exercised warrants to purchase 25,000,000 common shares of Atlas at an exercise price of $8.05 per share, for an aggregate exercise price of $201,250,000.
f)In April 2022, the Company exercised options to purchase two 10,000 TEU vessels. The purchases are expected to complete in April and May 2023, respectively, at the pre-determined purchase price of $52,690,000 per vessel.
25


ITEM 2 — MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following should be read in conjunction with the unaudited consolidated financial statements and related notes included in this Report and the audited consolidated financial statements, related notes and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 20-F for the year ended December 31, 2021. The Annual Report was filed with the U.S. Securities and Exchange Commission on March 24, 2022. Unless otherwise indicated, all amounts are presented in U.S. dollars, or USD. We prepare our consolidated financial statements in accordance with U.S. GAAP.
Overview
General
We are Atlas Corp., a global asset manager and the parent company of Seaspan Corporation (“Seaspan”) and APR Energy Ltd (together with Apple Bidco Limited, “APR Energy”).
Atlas was incorporated in the Republic of the Marshall Islands in October 2019 for the purpose of facilitating, and to become the successor public company of Seaspan pursuant to, the Reorganization. Atlas is a holding company and its sole assets are its interests in Seaspan and APR Energy and their respective subsidiaries.
Segment Reporting
For management purposes, the Company is organized based on its two leasing businesses and has two reportable segments, containership leasing and power generation. The Company’s containership leasing segment, which is conducted through Seaspan, owns and operates a fleet of containerships which are chartered primarily pursuant to long-term, fixed-rate, time charters with major container liner companies. The Company’s mobile power generation segment, which is conducted through APR Energy, owns and operates a fleet of power generation assets, including gas turbines and other equipment, and provides power solutions to customers, through medium to long-term contracts.
Containership leasing
Through Seaspan, we are a leading independent charter owner and manager of containerships, which we charter primarily pursuant to long-term, fixed-rate time charters with major container liner companies. We primarily deploy our vessels on long-term, fixed-rate time charters to take advantage of the stable cash flow and high utilization rates that are typically associated with long-term time charters. As at March 31, 2022, we operated a fleet of 132 vessels that have an average age of approximately eight years, on a TEU weighted basis.
Customers for our operating fleet as at March 31, 2022 are as follows:

Customers for Current Fleet
Number of vessels
 under charter
TEUs under charter
CMA CGM 17 160,950
COSCO 28 243,750
Hapag-Lloyd(1)
16 124,550
Maersk 20 90,500
MSC 9 103,600
ONE 21 184,030
Yang Ming Marine 15 210,000
ZIM 6 30,600
Total 132 1,147,980
(1)As at March 31, 2022, two vessels are off charter and commenced charters with Hapag-Lloyd in April and May 2022.
Our primary objective for Seaspan is to continue to grow our containership leasing business through accretive vessel acquisitions as market conditions allow. Most of our customers’ containership business revenues are derived from the shipment of goods from the Asia Pacific region, primarily China, to various overseas export markets in the United States and in Europe.
We use the term “twenty-foot equivalent unit”, or TEU, the international standard measure of containers, in describing the capacity of our containerships, which are also referred to as our “vessels”.
26


The following table summarizes key facts regarding Seaspan’s fleet as of March 31, 2022:
Vessel Class
(TEU)
# Vessels (Total Fleet)   # Vessels (of which are unencumbered)  
Average Age (Years)(1)
 
Average Remaining Charter Period (Years)(1)(2)
  Average Daily Charter Rate (in thousands of USD)  
Days Off-Hire(3)
 
Total Ownership Days(4)
2500-3500 14   6   13.8   2.9   24.3   56   1,260
4250-5100 31   22   14.9   2.8   20.9   93   2,834
8500-9600(5)
18   4   12.1   3.9   40.1   11   1,620
10000-11000(6)
33   4   6.5   4.2   31.7   15   2,970
12000-13100(7)
19     7.0   6.8   42.4   2   1,710
+14000 17   2   6.2   3.9   48.0   4   1,530
Total/Average 132   38   8.5   4.0   33.4   181   11,924
(1)Averages shown are weighted by TEU.
(2)Excludes options to extend charter.
(3)Days Off-Hire includes scheduled and unscheduled days related to vessels being off-charter during the quarter ended March 31, 2022.
(4)Total Ownership Days for the quarter ended March 31, 2022, includes time charters and bareboat charters, and excludes days prior to the initial charter hire date.
(5)Includes 3 vessel on bareboat charter.
(6)Includes 8 vessels on bareboat charter.
(7)Includes 4 vessels on bareboat charter.
Power Generation
Through APR Energy, we also operate a fleet of power generation assets, providing power generation to customers including large corporations and public and private utilities. Our mobile, turnkey power plants are deployed in cities, countries, and industries around the world in both developed and developing markets. As of March 31, 2022, we operated a fleet of 30 aero-derivative gas turbines and 409 diesel generators. The average age of our turbines is approximately nine years and the average age of our diesel generators is approximately twelve years.
Our primary objective is to drive sustained growth and optimize cash flow by delivering operational excellence and providing a broad range of innovated technologies and offerings to generate customer value. Our revenues are primarily derived through power generation and our turnkey services include plant design, fast-tracked installation of generating equipment and balance of plant, plant operation, and around-the-clock service and maintenance.
We use the term “megawatts”, or MW, in describing the capacity of our power generation equipment.
Asset Type Fleet Size (MW)   Contracted Fleet (MW)  
Contracted Revenue
(USD millions)
 
Average Remaining Contract Term (Years)(1)
Mobile Power Fleet 1,320   1,186   $361.4   0.9
(1)Average remaining contract term excludes extensions; weighted by MW installed.

27


Significant Developments During the Quarter ended March 31, 2022 and Subsequent
Shipbuilding Contracts for Newbuild Containerships
As at March 31, 2022, Seaspan had entered into agreements with shipyards to build 67 newbuild containerships that are summarized below.
  Newbuilds Total TEU Month Ordered
12200 TEU 2 24,400 December 2020
24000 TEU 2 48,000 February 2021
15000 TEU LNG 10 150,000 February 2021
12000 TEU 4 48,000 February 2021
15000 TEU 4 60,000 February 2021
16000 TEU 9 144,000 March 2021
15500 TEU 6 93,000 March 2021
12000 TEU 2 24,000 June 2021
15000 TEU 3 45,000 June 2021
7000 TEU LNG 15 105,000 July and September 2021
7000 TEU 10 70,000 August 2021
Total 67 811,400
Upon delivery, these vessels will commence long-term charters with leading global liner companies.
Containership Sale Developments
In February 2022, Seaspan completed the sale of one vessel for gross proceeds of $32.8 million. Seaspan continues to manage the ship operations of this vessel pursuant to a management agreement entered into in connection with the sale. As of March 31, 2022, Seaspan had also entered into agreements for five more vessel sales, one of which closed in April 2022. The remaining four vessel sales are expected to complete in the second quarter of 2022, subject to closing conditions.
In April 2022, Seaspan entered into agreements for the sale of an additional four 4,250 TEU vessels, all of which are expected to be completed in the second and third quarters of 2022, subject to closing conditions.
Financing Development
On February 16, 2022, Seaspan closed its new $250.0 million 3-year unsecured revolving credit facility (the “2022 RCF”), which replaces a $150.0 million 2-year unsecured revolving credit facility. The 2022 RCF includes several new lenders and improvements driven by Seaspan’s improving credit quality, including greater liquidity, tenor and pricing.
In April 2022, Seaspan exercised options to purchase two 10,000 TEU vessels. The purchases are expected to complete in April and May 2023, respectively, at the predetermined purchase price of $52.7 million per vessel.
Fairfax Warrant Exercise
In April 2022, Fairfax Financial Holdings Limited (“Fairfax”) exercised warrants to purchase 25.0 million common shares of Atlas. The warrants, which were originally issued on July 16, 2018, had an exercise price of $8.05 per common share for an aggregate exercise price of $201.3 million. Immediately following this exercise, Fairfax Financial Holdings and its affiliates held in aggregate 124,805,753 common shares, representing 45.1% of the then issued and outstanding common shares of Atlas. Fairfax continues to hold 6.0 million warrants.
Mobile Power Generation Developments
In December 2021, APR Energy entered into a contract to provide a customer with up to 226 MW of gas power generation capacity in Itaguaí, Rio De Janeiro, Brazil, for a minimum of 12 consecutive months commencing in May 2022. In March 2022, the term of this contract was extended to 44 months. Additionally, APR Energy entered into a contract with a US counterparty to rent to the counterparty five turbines representing 120 MW for a minimum of 12 consecutive months which commenced in February 2022. APR Energy also entered into a contract with Imperial Irrigation District (“IID”) for three turbines to provide grid stabilization solutions to Southern California for four months commencing June 1, 2022. The contract with IID represents its first renewal with APR Energy.
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Dividends
On January 6, 2022, our Board of Directors declared the quarterly cash dividends on our outstanding common and preferred shares for a total distribution of $46.1 million paid on January 31, 2022.
On April 7, 2022, our Board of Directors declared the quarterly cash dividends on outstanding common and preferred shares for a total distribution of $49.8 million paid on May 2, 2022.
Recent Changes to Directors and Senior Management
In February 2022, Karen Lawrie resigned as General Counsel of Atlas and Seaspan.
Impacts of Recent Developments in Ukraine
Since February 2022, as a result of the invasion of Ukraine by Russia, economic sanctions have been imposed by the U.S., the EU, the UK and a number of other countries on Russian financial institutions, businesses and individuals, as well as certain regions within the Donbas region of Ukraine. The nature and extent of such sanctions continue to evolve. While it is difficult to estimate the impact of current or future sanctions on the Company’s business and financial position, these sanctions could adversely impact the Company’s operations and/or financial results. Due to volatility in the region caused by the invasion, with the support of our customers, our vessels have ceased trading to Russia for the time being. Given that Ukrainians constitute a significant number of our seafarers, we also anticipate we may face challenges to recruit seafarers in sufficient numbers to replace Ukrainians seafarers who are not able to or permitted to leave their country, as well as Ukrainians seafarers currently onboard our vessels who request to disembark to return home. Finally, we expect that the Russia-Ukraine conflict may exacerbate market volatility, and may impact access to and pricing of capital.
Effects of COVID-19
The impacts of COVID-19 on our business continue unchanged since the date of our Annual Report on Form 20-F for year ended December 31, 2021 filed with the U.S. Securities and Exchange Commission on March 24, 2022 (the “2021 Annual Report”), with the most significant impacts being on our ability to conduct crew changes on our vessels and the costs associated therewith. Please read “Item 5. Operating and Financial Review and Prospects—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Effects of COVID-19” in our 2021 Annual Report for more information.
Three Months Ended March 31, 2022, Compared with Three Months Ended March 31, 2021
The following tables summarize Atlas’ consolidated financial results for select information, as well as the segmental financial results, for the three months ended March 31, 2022 and 2021.
Consolidated Financial Summary
(in millions of U.S. dollars, except earnings per share amount)
Three Months Ended
March 31,
  2022 2021
Revenue $ 408.1  $ 372.6 
Operating expense 86.6  80.6 
Depreciation and amortization expense 88.1  87.3 
General and administrative expense 27.9  19.1 
Indemnity claim under acquisition agreement (13.5) — 
Operating lease expense 33.6  36.1 
Loss (Gain) on sale 2.4  (0.5)
Operating earnings 183.0  150.0 
Interest expense 45.8  46.8 
Net earnings 169.4  97.6 
Net earnings attributable to common shareholders 154.2  80.8 
Earnings per share, diluted 0.56  0.31 
Cash from operating activities 174.9  181.5 
29


Segmental Financial Summary
(in millions of U.S. dollars)
Three Months Ended March 31, 2022
  Containership Leasing Mobile Power Generation
Elimination and Other(1)
Total
Revenue $ 384.6  $ 23.5  $ —  $ 408.1 
Operating expense 75.0  11.6  —  86.6 
Depreciation and amortization expense 78.4  9.7  —  88.1 
General and administrative expense 13.9  11.4  2.6  27.9 
Indemnity claim (income) under acquisition agreement —  (13.5) —  (13.5)
Operating lease expense 32.9  0.7  —  33.6 
Loss on sale 2.0  0.4  —  2.4 
Interest expense (0.1) (0.1) —  (0.2)
Interest income 40.9  5.1  (0.2) 45.8 
Income tax expense 0.3  —  —  0.3 
Segmental Financial Summary
(in millions of U.S. dollars)
Three Months Ended March 31, 2021
  Containership Leasing Mobile Power Generation
Elimination and Other(1)
Total
Revenue $ 331.6  $ 41.0  $ —  $ 372.6 
Operating expense 68.2  12.4  —  80.6 
Depreciation and amortization expense 75.2  12.1  —  87.3 
General and administrative expense 11.7  6.6  0.8  19.1 
Operating lease expense 35.4  0.7  —  36.1 
Gain on sale —  (0.5) —  (0.5)
Interest income (0.1) (0.4) —  (0.5)
Interest expense 42.7  5.1  (1.0) 46.8 
Income tax expense 0.1  6.6  —  6.7 
(1)Elimination and Other includes amounts relating to gain/loss on contingent consideration asset, elimination of intercompany transactions and unallocated amounts.
Operating Results – Containership Leasing Segment
Ownership Days are the number of days a vessel is owned and available for charter. Ownership Days On-Hire are the number of days a vessel is available to the charterer for use. The primary driver of Ownership Days is the increase or decrease in the number of vessels in our fleet.
Total Ownership Days increased by 495 days for the three months ended March 31, 2022, compared with the same period in 2021. The increase for the three months ended March 31, 2022 was due to the delivery of seven vessels after March 31, 2021, which contributed 630 days. This increase was partially offset by 135 fewer ownership days from the sale of two vessels.

30


Vessel Utilization represents the number of Ownership Days On-Hire as a percentage of Total Ownership Days. The following table summarizes Seaspan’s Vessel Utilization for the last eight consecutive quarters:
  2020 2021 2022
  Q2 Q3 Q4 Q1 Q2 Q3