PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2018

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

5.PROPERTY AND EQUIPMENT

Property and equipment at December 31, 2018 and 2017, and depreciation expense for the years ended December 31, 2018, 2017 and 2016 is as following:

	As of December 31, 2018						As of December 31, 2017
			Accumulated						Accumulated
(In millions)	Cost		Depreciation		Net Book Value		Cost		Depreciation		Net Book Value
Vessels	$	1,489.2		847.1	$	642.1	$	1,433.6	$	893.2	$	540.4
Containers and equipment		513.6		362.9		150.7		543.0		349.0		194.0
Terminal facilities and other property		66.0		38.6		27.4		64.8		36.3		28.5
Vessel construction in progress		487.2		—		487.2		376.6		—		376.6
Other construction in progress		59.2		—		59.2		26.2		—		26.2
Total	$	2,615.2	$	1,248.6	$	1,366.6	$	2,444.2	$	1,278.5	$	1,165.7

	Years Ended December 31,
(In millions)	2018		2017		2016
Depreciation expense	$	80.5	$	86.7	$	86.0

Vessel construction in progress represents progress payments for the construction of four new vessels, and other related costs.  During the year ended December 31, 2018, the construction of the first vessel was completed and the vessel was placed into service resulting in approximately $233.0 million, including $12.8 million of capitalized interest, transferred from Vessel construction in progress category to Vessels category within Property and Equipment.  As of December 31, 2018 and 2017, vessel construction in progress costs included capitalized interest of $16.3 million and $10.4 million, respectively. 

Property and equipment includes assets subject to capital leases with a net book value of $0.1 million and $4.9 million, net of accumulated depreciation of $0.7 million and $3.8 million at December 31, 2018 and 2017, respectively.  Depreciation of assets subject to capital leases recorded in the Consolidated Statement of Income and Comprehensive Income was $0.5 million, $1.5 million and $1.2 million for the years ended December 31, 2018, 2017 and 2016, respectively.