Note 4 - Property and Equipment

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

NOTE

4

– PROPERTY AND EQUIPMENT

Property and equipment, net are as follows:

	As of December 31,
(In thousands)	2018		2017
Vessels and improvements	$	399,700	$	346,895
Furniture and equipment		12,902		11,731
Leasehold improvements		1,425		1,425
Total property and equipment, gross		414,027		360,051
Less: Accumulated depreciation		(128,048)		(109,099)
Property and equipment, net	$	285,979	$	250,952

Total depreciation expense of the Company’s property and equipment for the years ended

December 31, 2018,

2017

 and

2016

 was 

$19.0

million,

$15.8

 million and

$17.1

 million, respectively.

For the year ended

December 31, 2018,

the Company had $

54.3

million in capital expenditures, including capitalized interest, added to property and equipment, net. This amount primarily included $

40.2

million for the

National Geographic Venture

, which was launched in the

fourth

quarter of

2018.

For the year ended

December 31, 2017,

the Company had

$80.5

million in capital expenditures, including capitalized interest, added to property and equipment. This amount primarily included

$42.8

million for the

two

newbuild coastal vessels, the

National Geographic Quest

and

National Geographic Venture

, and

$27.2

million toward the purchase of its new polar ice class vessel, the

National Geographic Endurance

. The Company began to capitalize interest in

January 2016

for its

two

newbuild coastal vessels, its renovation improvements to the

National Geographic Endeavour II

, and the

National Geographic Endurance

. The capitalized interest has been and will continue to be added to the historical cost of the assets and depreciated over their useful lives beginning upon completion. For the year ended

December 31, 2018 

and

2017,

the Company recognized $

3.8

 million and

$2.6

 million, respectively, in capitalized interest in property and equipment, net on the accompanying consolidated balance sheet.