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, 2021

Property Plant And Equipment [Abstract]

7.	Property and Equipment, Net

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


	December 31,
	2021		2020
Ships	$	14,488,539	$	14,528,133
Ship improvements		2,444,910		2,109,015
Ships under construction		833,973		376,062
Land and land improvements		58,370		58,370
Other		767,819		765,739
		18,593,611		17,837,319
Less: accumulated depreciation		(5,064,805)		(4,426,093)
Property and equipment, net	$	13,528,806	$	13,411,226

The Company capitalized approximately $348.0 million of costs associated with ship improvements during the year ended December 31, 2021. Depreciation expense for the years ended December 31, 2021, 2020 and 2019 was $690.0 million, $707.9 million and $627.7 million, respectively. Repairs and maintenance expenses including Dry-dock expenses were $199.7 million, $129.9 million and $199.7 million for the years ended December 31, 2021, 2020 and 2019, 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 $43.6 million, $25.2 million and $32.9 million for the years ended December 31, 2021, 2020 and 2019, respectively.