
	As of December 31,
	2025		2024
Ships	$	45,108	$	41,046
Ship improvements	2,663		2,491
Ships under construction	1,312		1,048
Land, buildings and improvements, including leasehold improvements and port facilities	1,519		887
Computer hardware and software, transportation equipment and other	2,070		1,668
Total property and equipment	52,672		47,140
Less—accumulated depreciation and amortization	(16,976)		(15,309)
	$	35,696	$	31,831

Ships under construction include progress payments for the construction of new ships as well as planning, design, capitalized interest and other associated costs. We capitalized interest costs of $85 million, $63 million, and $99 million for the years ended December 31, 2025, 2024 and 2023, respectively.

In October 2025, we took delivery of Celebrity Xcel. In July 2025, we took delivery of Star of the Seas. In June 2024, we took delivery of Utopia of the Seas. In May 2024, we took delivery of Silver Ray. Refer to Note 8. Debt for further information.

In July 2025, we closed on our acquisition of the Port of Costa Maya and adjacent land in Mahahual, Mexico. The final purchase price was $294 million. The Company accounted for this acquisition as an asset acquisition, whereby the final purchase price was allocated to the net assets acquired on the basis of their estimated fair values on the acquisition date. The primary asset acquired is land that will be developed into another destination in our Perfect Day Collection, Perfect Day Mexico, which is expected to open in 2027.

In our consolidated statements of cash flows for the years ended December 31, 2025 and 2024, respectively, the acceptance of the ships and satisfaction of our obligations under the shipbuilding contract were classified as outflows and constructive disbursements within Investing Activities while the amounts novated and effectively advanced from our lenders under our previously committed financing arrangements were classified as inflows and constructive receipts within Financing Activities.

During the years ended December 31, 2025, 2024, and 2023, there were no material impairment charges recognized. Any impairment charges recognized on Long-lived Assets used in our operations are generally reported within Other operating in our consolidated statements of comprehensive income (loss).