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, 2018
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,  
    2018     2017  
Ships   $ 13,032,555     $ 11,814,409  
Ships improvements     1,407,989       1,060,049  
Ships under construction     491,632       521,597  
Land and land improvements     34,936       37,535  
Other     558,052       487,921  
      15,525,164       13,921,511  
Less: accumulated depreciation     (3,405,911 )     (2,881,023 )
Property and equipment, net   $ 12,119,253     $ 11,040,488  

  

The increase in ships was primarily due to the addition of Norwegian Bliss. Depreciation expense for the years ended December 31, 2018, 2017 and 2016 was $534.9 million, $478.7 million and $411.4 million, respectively. Repairs and maintenance expenses including Dry-dock expenses were $199.5 million, $157.2 million and $155.4 million for the years ended December 31, 2018, 2017 and 2016, 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 $30.4 million, $29.0 million and $33.7 million for the years ended December 31, 2018, 2017 and 2016, respectively.