PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2016

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

5.PROPERTY AND EQUIPMENT

Property and equipment at December 31, 2016 and 2015, and depreciation expense in the three years ended December 31, 2016 includes the following (in millions):

	As of December 31, 2016
			Accumulated
	Cost		Depreciation		Net Book Value
Vessels	$	1,416.1	$	840.7	$	575.4
Containers and equipment		536.9		326.7		210.2
Terminal facilities and other property		43.2		35.3		7.9
Vessel construction in progress		124.5		—		124.5
Other construction in progress		31.2		—		31.2
Total	$	2,151.9	$	1,202.7	$	949.2

	As of December 31, 2015
			Accumulated
	Cost		Depreciation		Net Book Value
Vessels	$	1,384.8	$	787.4	$	597.4
Containers and equipment		496.0		307.8		188.2
Terminal facilities and other property		42.0		33.4		8.6
Vessel construction in progress		30.0		—		30.0
Other construction in progress		36.1		—		36.1
Total	$	1,988.9	$	1,128.6	$	860.3

	Years Ended December 31,
	2016		2015		2014
Depreciation Expense	$	86.0	$	76.4	$	66.8

The Company entered into agreements for the construction of two new Aloha Class container vessels, and two new Kanaloa Class combination container and roll-on/roll-off vessels at an estimated combined cost of approximately $925.3 million.  The vessels are expected to be delivered during the periods from 2018 to 2020.  Vessel construction in progress represents progress payments to the shipyards in accordance with the terms of the vessel construction agreements, and other related costs.  Vessel construction in progress costs include capitalized interest of $2.9 million and $0.8 million as of December 31, 2016 and 2015, respectively. 

Property and equipment includes assets subject to capital leases with a net book value of $6.4 million and $6.4 million, net of accumulated depreciation of $2.4 million and $1.1 million at December 31, 2016 and 2015, respectively. Amortization recorded in the Consolidated Statement of Income and Comprehensive Income was $1.2 million, $0.6 million and $0.3 million for the years ended December 31, 2016, 2015 and 2014, respectively.