PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2015

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

5.PROPERTY AND EQUIPMENT

Property and equipment at December 31, 2015 and 2014, and depreciation expense in the three years ended December 31, 2015 includes the following (in millions):

	As of December 31, 2015
	Cost		Accumulated Depreciation		Net Book Value
Vessels	$	1,384.8	$	787.4	$	597.4
Containers and equipment	496.0		307.8		188.2
Terminal facilities and other property	42.0		33.4		8.6
Construction in progress	66.1		—		66.1
Total	$	1,988.9	$	1,128.6	$	860.3

	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

	Years Ended December 31,
	2015		2014		2013
Depreciation Expense	$	76.4	$	66.8	$	67.4

Property and equipment included assets subject to capital leases with a net book value of $6.4 million and $2.6 million, net of accumulated depreciation of $1.1 million and $0.7 million at December 31, 2015 and 2014, respectively.  Amortization recorded in the consolidated statement of income and comprehensive income was $0.6 million, $0.3 million and $0.3 million for the years ended December 31, 2015, 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 vessels at a cost of $418.0 million.  The container vessels are expected to be delivered during the third quarter of 2018 and the first quarter of 2019.  Progress payments to the shipyard of $29.3 million and $8.4 million as of December 31, 2015 and 2014, respectively, are included in construction in progress.