Norwegian Cruise Line Holdings Ltd. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Property and Equipment, Net

Property and Equipment, Net

12 Months Ended

Dec. 31, 2022

Property Plant And Equipment [Abstract]

7.	Property and Equipment, Net

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


	December 31,
	2022		2021
Ships	$	15,751,860	$	14,488,539
Ship improvements		2,718,818		2,444,910
Ships under construction		871,813		833,973
Land and land improvements		58,370		58,370
Other		880,056		767,819
		20,280,917		18,593,611
Less: accumulated depreciation		(5,764,551)		(5,064,805)
Property and equipment, net	$	14,516,366	$	13,528,806

The increase in ships was primarily due to the addition of Norwegian Prima. The Company capitalized approximately $300.7 million of costs associated with ship improvements during the year ended December 31, 2022. Repairs and maintenance expenses including Dry-dock expenses were $223.5 million, $199.7 million and $129.9 million for the years ended December 31, 2022, 2021 and 2020, 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 $58.4 million, $43.6 million and $25.2 million for the years ended December 31, 2022, 2021 and 2020, respectively.