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, 2016
Property Plant And Equipment [Abstract]  
Property and Equipment, Net
  6. Property and Equipment, Net

 

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

 

    December 31,  
    2016     2015  
Ships   $ 10,781,703     $ 10,266,874  
Ships improvements     807,233       506,880  
Ships under construction     450,372       300,575  
Land and land improvements     37,535       19,138  
Other     483,744       408,523  
      12,560,587       11,501,990  
Less: accumulated depreciation     (2,442,898 )     (2,043,185 )
Property and equipment, net   $ 10,117,689     $ 9,458,805  

 

The increase in ships was primarily due to the additions of Seven Seas Explorer and Sirena. Depreciation and amortization expense for the years ended December 31, 2016, 2015 and 2014 was $432.5 million, $432.1 million and $273.1 million, respectively. Repairs and maintenance expenses including Dry-dock expenses were $155.4 million, $124.8 million and $69.9 million for the years ended December 31, 2016, 2015 and 2014, respectively and were recorded within other cruise operating expense.

 
Ships under construction include progress payments to the shipyard, planning and design fees, loan interest and commitment fees and other associated costs. The interest costs capitalized were primarily associated with the construction or revitalization of ships which amounted to $33.7 million, $31.9 million and $22.0 million for the years ended December 31, 2016, 2015 and 2014, respectively.