| Notes to the Consolidated Financial Statements |
| Note 3. Property and Equipment | ||||
| Property and equipment consists of the following (in thousands): | ||||
| 1996 | 1995 | |||
| Land | $ | 5,080 | $ | 5,080 |
| Vessels | 1,739,842 | 1,426,448 | ||
| Vessels under capital lease | 758,966 | 367,819 | ||
| Vessels under construction | 137,206 | 185,308 | ||
| Other | 117,098 | 102,617 | ||
| 2,758,192 | 2,087,272 | |||
| Less-accumulated depreciation and amortization | (379,258) | (328,826) | ||
| $ | 2,378,934 | $ | 1,758,446 | |
|
Vessels under construction includes progress payments for the construction of new vessels as well as planning, design, interest, commitment fees and other associated costs. The Company capitalized interest costs of $15.9, $14.1 and $7.3 million for the years 1996, 1995 and 1994, respectively. Accumulated amortization related to vessels under capital lease was $24.0 million and $6.0 million at December 31, 1996 and 1995, respectively.
In October 1996, the Company sold Song of Norway for $40.0 million and recognized a gain on the sale of $10.3 million which is included in Other income (expense). In January 1995, the Company sold Nordic Prince for $55.0 million and recognized a gain on the sale of $19.2 million which is included in Other income (expense). |