Annual report pursuant to Section 13 and 15(d)

Property and Equipment, Net

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Property and Equipment, Net
 12 Months Ended
Dec. 31, 2017
Property Plant And Equipment [Abstract]  
Property and Equipment, Net
5. Property and Equipment, Net

 

Property and equipment, net consisted of the following (in thousands):

 

    December 31,  
    2017     2016  
Ships   $ 11,814,409     $ 10,781,703  
Ships improvements     1,060,049       807,233  
Ships under construction     521,597       450,372  
Land and land improvements     37,535       37,535  
Other     487,921       483,744  
      13,921,511       12,560,587  
Less: accumulated depreciation     (2,881,023 )     (2,442,898 )
Property and equipment, net   $ 11,040,488     $ 10,117,689  

 

The increase in ships was primarily due to the addition of Norwegian Joy. Depreciation and amortization expense for the years ended December 31, 2017, 2016 and 2015 was $510.0 million, $432.5 million and $432.1 million, respectively. Repairs and maintenance expenses including Dry-dock expenses were $157.2 million, $155.4 million and $124.8 million for the years ended December 31, 2017, 2016 and 2015, respectively, and were recorded within other cruise operating expense.

  

Ships under construction include progress payments to the shipyard, planning and design fees and other associated costs. Capitalized interest costs which were primarily associated with the construction or revitalization of ships amounted to $29.0 million, $33.7 million and $31.9 million for the years ended December 31, 2017, 2016 and 2015, respectively.