Property and Equipment

Property and equipment consists of the following (in thousands):



	2015			2014
Ships	$	22,102,025		$	21,620,336
Ship improvements	2,019,294			1,904,524
Ships under construction	734,998			561,779
Land, buildings and improvements, including leasehold improvements and port facilities	337,109			303,394
Computer hardware and software, transportation equipment and other	1,025,264			889,579
Total property and equipment	26,218,690			25,279,612
Less—accumulated depreciation and amortization	(7,440,912		)	(7,085,985		)
	$	18,777,778		$	18,193,627

Ships under construction include progress payments for the construction of new ships as well as planning, design, interest and other associated costs. We capitalized interest costs of $26.5 million, $28.8 million and $17.9 million for the years 2015, 2014 and 2013, respectively.

We review our long-lived assets for impairment whenever events or changes in circumstances indicate potential impairment. In conjunction with performing the two-step goodwill impairment test for the Pullmantur reporting unit, we identified that the estimated fair value of certain long-lived assets, consisting of two ships and three aircraft were less than their carrying values. As a result of this determination, we evaluated these assets pursuant to our long-lived asset impairment test. The decision to significantly reduce our exposure to the Latin American market negatively impacted the expected undiscounted cash flows of these vessels and aircraft and resulted in an impairment charge of $113.2 million to write down these assets to their estimated fair values. This impairment charge was recognized in earnings during the third quarter of 2015 and is reported within Impairment of Pullmantur related assets within our consolidated statements of comprehensive income (loss). Additionally, during 2013, the fair value of Pullmantur's aircraft were determined to be less than their carrying value which led to a restructuring related impairment charge of $13.5 million. Furthermore, Pullmantur's non-core businesses met the accounting criteria to be classified as held for sale during the fourth quarter of 2013 which led to restructuring related impairment charges of $18.2 million to adjust the carrying value of property and equipment held for sale to its fair value, less cost to sell. These impairment charges were reported within Restructuring and related impairment charges in our consolidated statements of comprehensive income (loss).

During 2015, our conditional agreements with STX France to build two ships of a new generation of Celebrity Cruises ships, known as "Project Edge" became effective. In addition, our conditional agreement with Meyer Werft to build the fourth and fifth Quantum-class ships for Royal Caribbean International became effective. Refer to Note 15. Commitments and Contingencies for further information.

During 2015, Pullmantur sold Ocean Dream to an unrelated third party for $34.6 million. The purchase price was paid via a secured promissory note, payable over a nine year period. The buyer's obligations under this loan accrues interest at the rate of 6.0% per annum and are secured by a first priority mortgage on the ship. The sale resulted in an immaterial gain that will be deferred and is expected to be recognized at the end of the nine year term.

During 2014, we sold Celebrity Century to a subsidiary of Skysea Holding International Ltd. ("Skysea Holding") for $220.0 million in cash. We agreed to charter the Celebrity Century from the buyer until April 2015 to fulfill existing passenger commitments. The sale resulted in a loss of $17.4 million that was recognized in earnings during the third quarter of 2014 and is reported within Other operating expenses in our consolidated statements of comprehensive income (loss). We subsequently acquired a 35% equity stake in Skysea Holding in November 2014. Refer to Note 6. Other Assets for further discussion.

In December 2014, we terminated the leasing of Brilliance of the Seas under the 25 year operating lease originally entered into in July 2002, denominated in British pound sterling. As part of the agreement, we purchased the Brilliance of the Seas for a net settlement purchase price of approximately £175.4 million or $275.4 million. At the date of purchase, the total carrying amount of the ship, including capital improvements previously accounted for as leasehold improvements, was $330.5 million which approximated the estimated fair market value of the ship. We funded the purchase using proceeds from our $1.2 billion unsecured revolving credit facility. Refer to Note 7. Long-Term Debt for further information.