The following unaudited pro forma information presents a summary of consolidated results of operations of the Company, including Celebrity, as if the acquisition had occurred January 1, 1996 (in thousands, except per share amounts).
The unaudited pro forma results have been prepared for comparative purposes only and include certain adjustments, such as additional depreciation expense as a result of a step-up in the basis of fixed assets and increased interest expense on acquisition debt. They do not purport to be indicative of the results which would actually have been achieved if this acquisition had been effected on the date indicated or of those results which may be obtained in the future.
Note 4. Property and Equipment
Property and equipment consists of the following (in thousands):
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 $15.8, $15.9 and $14.1 million for the years 1997, 1996 and 1995, respectively. Accumulated amortization related to vessels under capital lease was $45.8 and $24.0 million at December 31, 1997 and 1996, respectively.
In October 1997, the Company sold Sun Viking, which operated in the Royal Caribbean fleet, for $30.0 million and recognized a gain on the sale of $4.0 million. In September 1997, the Company sold Meridian, which operated in the Celebrity fleet for $62.1 million at no gain or loss. In October 1996, the Company sold Song of Norway, for $40.0 million and recognized a gain on the sale of $10.3 million. In January 1995, the Company sold Nordic Prince for $55.0 million and recognized a gain on the sale of $19.2 million. The Company has recorded the gains in Other income.