Annual report pursuant to Section 13 and 15(d)

Property and Equipment, Net

v2.4.1.9
Property and Equipment, Net
 12 Months Ended
Dec. 31, 2014
Property Plant And Equipment [Abstract]  
Property and Equipment, Net
6. Property and Equipment, Net

 

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

 

    December 31,  
    2014     2013  
Ships   $ 9,706,093     $ 6,542,073  
Ships under construction     290,381       297,624  
Land     1,009       1,009  
Other     351,377       273,077  
      10,348,860       7,113,783  
Less: accumulated depreciation and amortization     (1,725,087 )     (1,466,113 )
Total   $ 8,623,773     $ 5,647,670  

 

Ships increased to $9.7 billion from $6.5 billion primarily due to the Acquisition of Prestige as well as the addition of Norwegian Getaway. Depreciation and amortization expense for the years ended December 31, 2014, 2013 and 2012 was $273.1 million, $215.6 million and $189.5 million, respectively. Repairs and maintenance expenses including Dry-dock expenses were $69.9 million, $67.1 million and $44.7 million for the years ended December 31, 2014, 2013 and 2012, respectively.

 

Ships under construction include progress payments to the shipyard, planning and design fees, loan interest and commitment fees and other associated costs. Interest costs associated with the construction of ships that were capitalized during the construction period amounted to $22.0 million, $26.3 million and $22.1 million for the years ended December 31, 2014, 2013 and 2012, respectively.

 

In December 2014, an incident onboard Oceania’s Insignia resulted in the cancellation of certain voyages. Repairs on the ship are on schedule for a return to service in March 2015. This resulted in a reduction to diluted EPS for the full year 2014 of $0.02.