Annual report pursuant to Section 13 and 15(d)

Property and Equipment

v2.4.1.9
Property and Equipment
 12 Months Ended
Dec. 31, 2014
Property Plant And Equipment [Abstract]  
Property and Equipment

4. Property and Equipment

Property and equipment consists of the following:

 

 

 

 

 

 

 

 

 

 

December 31, 2014

 

 

December 31, 2013

 

 

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land

 

$

224,124

 

 

$

194,639

 

 

 

Building and improvements

 

 

582,261

 

 

 

569,619

 

 

 

Office equipment and fixtures

 

 

151,165

 

 

 

135,221

 

 

 

Parts and service equipment

 

 

68,248

 

 

 

70,950

 

 

 

Company vehicles

 

 

8,958

 

 

 

8,002

 

 

 

Construction in progress

 

 

81,180

 

 

 

27,716

 

 

 

       Total, at cost

 

 

1,115,936

 

 

 

1,006,147

 

 

 

Less accumulated depreciation

 

 

(316,617

)

 

 

(300,035

)

 

 

Subtotal

 

 

799,319

 

 

 

706,112

 

 

 

Less assets held for sale

 

 

-

 

 

 

(4,101

)

 

 

       Property and equipment, net

 

$

799,319

 

 

$

702,011

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest capitalized in conjunction with construction projects and software development was approximately $1.9 million, $2.5 million and $1.2 million for the years ended December 31, 2014, 2013 and 2012, respectively. As of December 31, 2014, commitments for facility construction projects totaled approximately $32.9 million. Assets held for sale at December 31, 2013 consist of land and buildings related to several properties that are not being used in operations. Amounts are included in other current assets in the accompanying Consolidated Balance Sheets.

During the years ended December 31, 2014, 2013 and 2012, property and equipment impairment charges were recorded as noted in the following table:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing

Operations

 

 

Discontinued

Operations

 

 

 

 

 

(In thousands)

 

 

 

Year ended December 31,

 

 

 

 

 

 

 

 

 

 

2014

 

$

4,394

 

 

$

-

 

 

 

2013

 

$

9,272

 

 

$

-

 

 

 

2012

 

$

440

 

 

$

510

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment charges related to continuing operations were related to land and buildings held for sale, the abandonment of construction and software development projects, the abandonment and disposal of dealership equipment or Sonic’s estimate that based on historical and projected operating losses for certain dealerships, these dealerships would not be able to recover recorded property and equipment asset balances.