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, 2023

Property Plant And Equipment [Abstract]

7.	Property and Equipment, Net

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


	December 31,
	2023		2022
Ships	$	18,462,250	$	15,751,860
Ship improvements		2,899,114		2,718,818
Ships under construction		548,182		871,813
Land and land improvements		58,370		58,370
Other		999,471		880,056
		22,967,387		20,280,917
Less: accumulated depreciation		(6,534,095)		(5,764,551)
Property and equipment, net	$	16,433,292	$	14,516,366

The increase in ships was primarily due to the additions of Oceania Cruises’ Vista, Norwegian Viva and Regent Seven Seas Grandeur. The Company capitalized approximately $204.2 million of costs associated with ship improvements and $96.0 million associated with other information technology assets during the year ended December 31, 2023. Repairs and maintenance expenses including Dry-dock expenses were $160.8 million, $223.5 million and $199.7 million for the years ended December 31, 2023, 2022 and 2021, 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 $56.4 million, $58.4 million and $43.6 million for the years ended December 31, 2023, 2022 and 2021, respectively.