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Basis Of Presentation And General Information
 12 Months Ended
Dec. 31, 2011
Basis Of Presentation and General Information Abstract  
Basis Of Presentation and General Information
1.
Basis of Presentation and General Information
Capital Product Partners L.P. (the “Partnership”) was formed on January 16, 2007, under the laws of the Marshall Islands. The Partnership is engaged in the seaborne transportation services of crude oil and refined petroleum products, edible oils and soft chemicals, by chartering its vessels under short-term voyage charters and medium to long-term time and bareboat charters.
The consolidated financial statements include the following vessel-owning companies and operating company which were all incorporated or formed under the laws of the Marshall Islands.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Subsidiary
  
Date of
Incorporation
  
Name of Vessel
Owned by
Subsidiary
  
DWT
 
  
Date acquired
by the
Partnership
 
  
Date acquired
by CMTC
 
Capital Product Operating GP LLC
  
01/16/2007
  
—
  
 
—
  
  
 
—
  
  
 
—
  
Crude Carriers Corp.(6)
  
10/29/2009
  
—
  
 
—
  
  
 
09/30/2011
  
  
 
—
  
Crude Carriers Operating Corp. (6)
  
01/21/2010
  
—
  
 
—
  
  
 
09/30/2011
  
  
 
—
  
Shipping Rider Co.
  
09/16/2003
  
M/T Atlantas (M/T British Ensign) (1)
  
 
36,760
  
  
 
04/04/2007
  
  
 
04/26/2006
  
Canvey Shipmanagement Co.
  
03/18/2004
  
M/T Assos (M/T Insurgentes) (1),(4)
  
 
47,872
  
  
 
 
04/04/2007
08/16/2010
  
  
  
 
05/17/2006
  
Centurion Navigation Limited
  
08/27/2003
  
M/T Aktoras (M/T British Envoy) (1)
  
 
36,759
  
  
 
04/04/2007
  
  
 
07/12/2006
  
Polarwind Maritime S.A.
  
10/10/2003
  
M/T Agisilaos (1)
  
 
36,760
  
  
 
04/04/2007
  
  
 
08/16/2006
  
Carnation Shipping Company
  
11/10/2003
  
M/T Arionas (1)
  
 
36,725
  
  
 
04/04/2007
  
  
 
11/02/2006
  
Apollonas Shipping Company
  
02/10/2004
  
M/T Avax (1)
  
 
47,834
  
  
 
04/04/2007
  
  
 
01/12/2007
  
Tempest Maritime Inc.
  
09/12/2003
  
M/T Aiolos (M/T British Emissary) (1)
  
 
36,725
  
  
 
04/04/2007
  
  
 
03/02/2007
  
Iraklitos Shipping Company
  
02/10/2004
  
M/T Axios (1)
  
 
47,872
  
  
 
04/04/2007
  
  
 
02/28/2007
  
Epicurus Shipping Company
  
02/11/2004
  
M/T Atrotos (M/T El Pipila) (2),(5)
  
 
47,786
  
  
 
 
05/08/2007
03/01/2010
  
  
  
 
05/08/2007
  
Laredo Maritime Inc.
  
02/03/2004
  
M/T Akeraios (2)
  
 
47,781
  
  
 
07/13/2007
  
  
 
07/13/2007
  
Lorenzo Shipmanagement Inc.
  
05/26/2004
  
M/T Apostolos (2)
  
 
47,782
  
  
 
09/20/2007
  
  
 
09/20/2007
  
Splendor Shipholding S.A.
  
07/08/2004
  
M/T Anemos I (2)
  
 
47,782
  
  
 
09/28/2007
  
  
 
09/28/2007
  
Ross Shipmanagement Co.
  
12/29/2003
  
M/T Attikos (3)
  
 
12,000
  
  
 
09/24/2007
  
  
 
01/20/2005
  
Sorrel Shipmanagement Inc.
  
02/07/2006
  
M/T Alexandros II (M/T Overseas Serifos) (2)
  
 
51,258
  
  
 
01/29/2008
  
  
 
01/29/2008
  
Baymont Enterprises Incorporated
  
05/29/2007
  
M/T Amore Mio II (3)
  
 
159,982
  
  
 
03/27/2008
  
  
 
07/31/2007
  
Forbes Maritime Co.
  
02/03/2004
  
M/T Aristofanis (3)
  
 
12,000
  
  
 
04/30/2008
  
  
 
06/02/2005
  
Wind Dancer Shipping Inc.
  
02/07/2006
  
M/T Aristotelis II (M/T Overseas Sifnos) (2)
  
 
51,226
  
  
 
06/17/2008
  
  
 
06/17/2008
  
Belerion Maritime Co.
  
01/24/2006
  
M/T Aris II (M/T Overseas Kimolos) (2)
  
 
51,218
  
  
 
08/20/2008
  
  
 
08/20/2008
  
Mango Finance Corp.
  
07/14/2006
  
M/T Agamemnon II (3), (4)
  
 
51,238
  
  
 
04/07/2009
  
  
 
11/24/2008
  
Navarro International S.A.
  
07/14/2006
  
M/T Ayrton II (3), (5)
  
 
51,238
  
  
 
04/13/2009
  
  
 
04/10/2009
  
Adrian Shipholding Inc.
  
06/22/2004
  
M/T Alkiviadis (3)
  
 
36,721
  
  
 
06/30/2010
  
  
 
03/29/2006
  
Patroklos Marine Corp.
  
06/17/2008
  
M/V Cape Agamemnon
  
 
179,221
  
  
 
06/10/2011
  
  
 
01/25/2011
  
Cooper Consultants Co.
  
04/06/2006
  
M/T Miltiadis M II (6)
  
 
162,000
  
  
 
09/30/2011
  
  
 
04/26/2006
  
Alexander the Great Carriers Corp.
  
01/26/2010
  
M/T Alexander
the Great (6)
  
 
297,958
  
  
 
09/30/2011
  
  
 
03/26/2010
  
Achilleas Carriers Corp.
  
01/26/2010
  
M/T Achilleas (6)
  
 
297,863
  
  
 
09/30/2011
  
  
 
06/25/2010
  
Amoureux Carriers Corp.
  
04/14/2010
  
M/T Amoureux (6)
  
 
150,000
  
  
 
09/30/2011
  
  
 
—
  
Aias Carriers Corp.
  
04/14/2010
  
M/T Aias (6)
  
 
150,000
  
  
 
09/30/2011
  
  
 
—
  
 
(1)
Initial Vessels acquired from Capital Maritime & Trading Corp. (“CMTC”) upon consummation of the Partnership's Initial Public Offering (“IPO”) which was completed on April 3, 2007.
(2)
Committed Vessels (the Partnership committed to acquire these vessels from CMTC upon consummation of the IPO)
(3)
Non-Contracted Vessels (vessels acquired from CMTC that were neither initial nor committed vessels)
(4)
Was acquired on April 4, 2007, on April 7, 2009 was exchanged with the M/T Agamemnon II and was reacquired on August 16, 2010.
(5)
Was acquired on May 8, 2007, on April 13, 2009 was exchanged with the M/T Ayrton II and was reacquired on March 1, 2010.
(6)
Were acquired upon the completion of the business acquisition of Crude Carriers Corp. (“Crude”).
 
 The Partnership Agreement provides that the Partnership's board of directors has the power to oversee, direct the operations of, manage and determine the strategies and policies of the Partnership. In addition under the Partnership Agreement, CMTC and its affiliates are not permitted to participate in the election of five out of the Partnership board's eight directors. This provision ensures that a majority of the directors on the Partnership's board are elected by the Partnership's limited unitholders that are not CMTC or its affiliates, and since July 22, 2010 a majority of the Partnership's board has been elected by unaffiliated unitholders.
As a result, the Partnership is not considered to be under common control with CMTC therefore since July 22, 2010 the Partnership no longer accounts for vessel acquisitions from CMTC as transfer of equity interest between entities under common control.
Prior to July 22, 2010, when the Partnership and CMTC were under common control, all the vessel owning companies the Partnership acquired from CMTC were recorded by the Partnership at net book value reflected by CMTC and accounted for as a combination of entities under common control or a transfer of equity interest between entities under common control. For a combination between entities under common control, the purchase cost provisions (as they relate to purchase business combinations involving unrelated entities) explicitly do not apply; instead the method of accounting prescribed by accounting standards for such transfers is similar to pooling-of-interests method of accounting. Under this method, the carrying amount of assets and liabilities recognized in the balance sheets of each combining entity are carried forward to the balance sheet of the combined entity, and no other assets or liabilities are recognized as a result of the combination. Purchase premium or discount representing the difference between the cash consideration paid and the book value of the net assets acquired was recorded as increase or decrease to the Partners' capital.
Vessels that had an operating history as part of CMTC fleet, prior to their acquisition by the Partnership have been treated as an acquisition of business. As a result, transfers of equity interests between entities under common control were accounted for as if the transfer occurred at the beginning of the period, and prior years were retroactively adjusted to furnish comparative information similar to the pooling-of-interest method.
Vessels that had no operating history and were delivered to the Partnership from the shipyards through CMTC have been treated as an acquisition of assets from an entity under common control.