Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

v2.4.1.9
Property and Equipment
 3 Months Ended
Mar. 31, 2015
Property Plant And Equipment [Abstract]  
Property and Equipment

4. Property and Equipment

Property and equipment, net consists of the following:

 

 

 

 

 

 

 

 

March 31, 2015

 

December 31, 2014

 

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

Land

 

$                         232,812

 

$                         224,124

 

 

Building and improvements

 

627,372

 

582,261

 

 

Office equipment and fixtures

 

164,731

 

151,165

 

 

Parts and service equipment

 

71,774

 

68,248

 

 

Company vehicles

 

8,969

 

8,958

 

 

Construction in progress

 

50,024

 

81,180

 

 

       Total, at cost

 

1,155,682

 

1,115,936

 

 

Less accumulated depreciation

 

(332,543)

 

(316,617)

 

 

       Property and equipment, net

 

$                         823,139

 

$                         799,319

 

 

 

 

 

 

 

 

In the three months ended March 31, 2015 and 2014, capital expenditures were approximately $46.8 million and $21.5 million, respectively. Capital expenditures in both periods were primarily related to real estate acquisitions, construction of new dealerships and EchoPark® stores, building improvements and equipment purchased for use in Sonic’s dealerships and EchoPark® stores.

Impairment charges for the three months ended March 31, 2015 were approximately $6.2 million, with $4.8 million recorded in the Franchised Dealerships segment and $1.4 million recorded in the EchoPark® segment, and primarily consist of the write-off of certain costs associated with abandoned website and software development projects in addition to the abandonment of certain construction projects.