Sonic Automotive, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

Property and Equipment

9 Months Ended

Sep. 30, 2015

Property Plant And Equipment [Abstract]

Property and Equipment

4. Property and Equipment

Property and equipment, net consists of the following:

	September 30, 2015			December 31, 2014
	(In thousands)
Land	$	252,939		$	224,124
Building and improvements		637,356			582,261
Office equipment and fixtures		177,450			151,165
Parts and service equipment		75,763			68,248
Company vehicles		9,228			8,958
Construction in progress		72,832			81,180
Total, at cost		1,225,568			1,115,936
Less accumulated depreciation		(365,713	)		(316,617	)
Property and equipment, net	$	859,855		$	799,319

In the three and nine months ended September 30, 2015, capital expenditures were approximately $44.2 million and $127.1 million, respectively, and in the three and nine months ended September 30, 2014, capital expenditures were approximately $41.3 million and $89.9 million, respectively. Capital expenditures for the three and nine months ended September 30, 2015 and 2014 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 September 30, 2015 were immaterial and for the nine months ended September 30, 2015 were approximately $16.7 million. Impairment charges for the three and nine months ended September 30, 2015 include the write-off of goodwill, intangible assets, property and equipment as part of the disposal of a franchise, the write-off of certain costs associated with website and software development projects as well as abandonment of certain construction projects.