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Property and Equipment, Net
6 Months Ended
Jun. 30, 2015
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net
PROPERTY AND EQUIPMENT, NET
Property and equipment consists of the following (in thousands):
 
June 30,
2015
 
December 31,
2014
Land and improvements
$
551,241

 
$
551,625

Building and improvements
15,169,341

 
15,187,427

Furniture, fixtures, equipment and leasehold improvements
3,162,457

 
3,065,859

Transportation
455,216

 
454,278

Construction in progress
2,319,805

 
1,796,554

 
21,658,060

 
21,055,743

Less — accumulated depreciation and amortization
(6,132,646
)
 
(5,683,269
)
 
$
15,525,414

 
$
15,372,474


Construction in progress consists of the following (in thousands):
 
June 30,
2015
 
December 31,
2014
The Parisian Macao
$
1,097,603

 
$
749,176

Four Seasons Macao (principally the Four Seasons Apartments)
420,170

 
417,920

Sands Cotai Central
453,420

 
289,518

Other
348,612

 
339,940

 
$
2,319,805

 
$
1,796,554


The $348.6 million in other construction in progress as of June 30, 2015, consists primarily of construction of the Las Vegas Condo Tower and various projects at The Venetian Macao.
In accordance with the April 2004 purchase and sale agreement, as amended, between Venetian Casino Resort, LLC (“VCR”) and GGP (the “Amended Agreement”), the Company sold the portion of the Grand Canal Shoppes located within The Palazzo (formerly referred to as "The Shoppes at the Palazzo"). Under the terms of the settlement with GGP on June 24, 2011, the Company retained the $295.4 million of proceeds previously received and participates in certain potential future revenues earned by GGP. Under generally accepted accounting principles, the transaction has not been accounted for as a sale because the Company’s participation in certain potential future revenues constitutes continuing involvement in The Shoppes at The Palazzo. Therefore, $266.2 million of the proceeds allocated to the mall sale transaction has been recorded as deferred proceeds (a long-term financing obligation), which will accrue interest at an imputed rate and will be offset by (i) imputed rental income and (ii) rent payments made to GGP related to spaces leased back from GGP by the Company. The property and equipment legally sold to GGP totaling $224.1 million (net of $87.3 million of accumulated depreciation) as of June 30, 2015, will continue to be recorded on the Company’s condensed consolidated balance sheet and will continue to be depreciated in the Company’s condensed consolidated income statement.
During the three and six months ended June 30, 2015 and the three and six months ended June 30, 2014, the Company capitalized interest expense of $5.5 million, $9.7 million, $1.5 million, and $3.2 million, respectively. During the three and six months ended June 30, 2015 and the three and six months ended June 30, 2014, the Company capitalized approximately $8.1 million, $15.6 million, $6.2 million and $14.1 million, respectively, of internal costs, consisting primarily of compensation expense for individuals directly involved with the development and construction of property.