PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2013

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

5.             PROPERTY AND EQUIPMENT

Property and equipment at December 31, 2013 and 2012 includes the following (in millions):

	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

	As of December 31, 2012
	Cost		Accumulated Depreciation		Net Book Value
Vessels	$	1,249.1	$	679.4	$	569.7
Containers and equipment	468.5		300.1		168.4
Terminal facilities and other property	38.5		28.8		9.7
Construction in progress	14.7		—		14.7
Total	$	1,770.8	$	1,008.3	$	762.5

	Years Ended December 31,
	2013		2012		2011
Depreciation Expense	$	67.4	$	70.6	$	69.4

Property and equipment subject to capital leases was $3.1 million at December 31, 2013 and amortization recorded in the Consolidated Statement of Income and Comprehensive Income was $0.3 million for the year ended December 31, 2013.

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.  Additional payments totaling $92.0 million are payable in 2015 and 2016, with the remaining balance payable in 2017 and 2018.