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PROPERTY AND EQUIPMENT
 12 Months Ended
Dec. 31, 2014
PROPERTY AND EQUIPMENT  
PROPERTY AND EQUIPMENT

 

4.PROPERTY AND EQUIPMENT

 

Property and equipment at December 31, 2014 and 2013 includes the following (in millions):

 

 

 

As of December 31, 2014

 

 

 

Cost

 

Accumulated
Depreciation

 

Net Book
Value

 

Vessels

 

$
1,263.8 

 

$
757.7 

 

$
506.1 

 

Containers and equipment

 
466.8 

 
316.1 

 
150.7 

 

Terminal facilities and other property

 
39.2 

 
33.2 

 
6.0 

 

Construction in progress

 
28.4 

 

—

 
28.4 

 

Total

 

$
1,798.2 

 

$
1,107.0 

 

$
691.2 

 

 

 

 

As of December 31, 2013

 

 

 

Cost

 

Accumulated
Depreciation

 

Net Book
Value

 

Vessels

 

$
1,260.2 

 

$
718.1 

 

$
542.1 

 

Containers and equipment

 
470.6 

 
310.4 

 
160.2 

 

Terminal facilities and other property

 
38.9 

 
30.9 

 
8.0 

 

Construction in progress

 
25.1 

 

—

 
25.1 

 

Total

 

$
1,794.8 

 

$
1,059.4 

 

$
735.4 

 

 

 

 

Years Ended December 31,

 

 

 

2014

 

2013

 

2012

 

Depreciation Expense

 

$
66.8 

 

$
67.4 

 

$
70.6 

 

 

Property and equipment subject to capital leases was $2.6 million and $3.1 million at December 31, 2014 and 2013, respectively. Amortization recorded in the consolidated statement of income and comprehensive income was $0.3 million and $0.3 million for the years ended December 31, 2014 and 2013, respectively.

 

During the fourth quarter of 2013, the Company entered into agreements with a shipyard for the construction of two new 3,600 twenty-foot equivalent units Aloha-class container ships at a cost of $418.0 million.  The container ships are expected to be delivered during 2018.  The Company made an initial payment of $8.4 million to the shipyard during 2013, which is included in construction in progress.  No payments were made in 2014.