Property and Equipment

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

Note 6. Property and Equipment

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


	As of December 31,
	2023		2022
Ships	$	36,255	$	34,344
Ship improvements	2,259		2,367
Ships under construction	3,052		1,061
Land, buildings and improvements, including leasehold improvements and port facilities	763		772
Computer hardware and software, transportation equipment and other	1,595		1,531
Total property and equipment	43,924		40,075
Less—accumulated depreciation and amortization	(13,810)		(12,529)
	$	30,114	$	27,546

Ships under construction include progress payments for the construction of new ships as well as planning, design, capitalized interest and other associated costs. We capitalized interest costs of $99 million, $64 million, and $59 million for the years ended December 31, 2023, 2022 and 2021, respectively.

In June 2023, we took delivery of Silver Nova. In November 2023, we took delivery of Celebrity Ascent and Icon of the Seas. In our consolidated statement of cash flows for the year ended December 31, 2023, the acceptance of the ships and satisfaction of our obligations under the shipbuilding contract were classified as outflows and constructive disbursements within Investing Activities while the amounts novated and effectively advanced from our lenders under our previously committed financing arrangements were classified as inflows and constructive receipts within Financing Activities.

In January and April 2022, we took delivery of Wonder of the Seas and Celebrity Beyond, respectively. In July 2022, we purchased the Silver Endeavour for our Silversea Cruises brand for $277 million, including transaction fees. The ship entered service during the fourth quarter of 2022. Refer to Note 8. Debt for further information on our ship financings.

Long-lived Assets impairments

During the years ended December 31, 2023 and 2022, there were no material impairment charges recognized. Any impairment charges recognized on Long-lived Assets used in our operations are generally reported within Other operating in our consolidated statements of comprehensive income (loss).