PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2017

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

5.PROPERTY AND EQUIPMENT

Property and equipment at December 31, 2017 and 2016, and depreciation expense for the three years ended December 31, 2017, 2016 and 2015 is as following:

	As of December 31, 2017						As of December 31, 2016
			Accumulated						Accumulated
(In millions)	Cost		Depreciation		Net Book Value		Cost		Depreciation		Net Book Value
Vessels	$	1,433.6	$	893.2	$	540.4	$	1,416.1	$	840.7	$	575.4
Containers and equipment		543.0		349.0		194.0		536.9		326.7		210.2
Terminal facilities and other property		64.8		36.3		28.5		43.2		35.3		7.9
Vessel construction in progress		376.6		—		376.6		124.5		—		124.5
Other construction in progress		26.2		—		26.2		31.2		—		31.2
Total	$	2,444.2	$	1,278.5	$	1,165.7	$	2,151.9	$	1,202.7	$	949.2

	Years Ended December 31,
(In millions)	2017		2016		2015
Depreciation expense	$	86.7	$	86.0	$	76.4

The Company entered into agreements for the construction of four new vessels at an estimated combined contractual cost of approximately $924.5 million, excluding owners’ items and capitalized interest.  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 $10.4 million and $2.9 million as of December 31, 2017 and 2016, respectively. 

Property and equipment includes assets subject to capital leases with a net book value of $4.9 million and $6.4 million, net of accumulated depreciation of $3.8 million and $2.4 million at December 31, 2017 and 2016, respectively.  Amortization recorded in the Consolidated Statement of Income and Comprehensive Income was $1.5 million, $1.2 million and $0.6 million for the years ended December 31, 2017, 2016 and 2015, respectively.