Note 4 - Property and Equipment

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment Disclosure [Text Block]

NOTE

– PROPERTY AND EQUIPMENT

Property and equipment, net are as follows:

	As of December 31,
	2019			2018
(In thousands)
Vessels and improvements	$	494,282		$	399,700
Furniture and equipment		14,322			12,902
Leasehold improvements		1,425			1,425
Total property and equipment, gross		510,029			414,027
Less: Accumulated depreciation		(152,239	)		(128,048	)
Property and equipment, net	$	357,790		$	285,979

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

December 31, 2019,

2018

and

2017

was

$24.2

million,

$19.0

million and

$15.8

million, respectively.

For the year ended

December 31, 2019,

the Company had

$96.0

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

$72.7

million for the

two

new polar ice-class vessels, the

National Geographic Endurance

and the

National Geographic Resolution

. 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.

The Company began to capitalize interest in

January 2018

for the

first

of its

two

new polar ice-class vessels, the

National Geographic Endurance

, and in

February 2019

for the

National Geographic Resolution

. 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 the vessel’s completion. For the year ended

December 31, 2019

and

2018,

the Company recognized

$3.7

million and

$3.8

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