Annual report pursuant to Section 13 and 15(d)

Property and Equipment

v3.3.1.900
Property and Equipment
 12 Months Ended
Dec. 31, 2015
Property Plant And Equipment [Abstract]  
Property and Equipment

4. Property and Equipment

Property and equipment consists of the following:

 

 

 

December 31, 2015

 

 

December 31, 2014

 

 

 

(In thousands)

 

Land

 

$

260,275

 

 

$

224,124

 

Building and improvements

 

 

679,712

 

 

 

582,261

 

Office equipment and fixtures

 

 

183,896

 

 

 

151,165

 

Parts and service equipment

 

 

79,219

 

 

 

68,248

 

Company vehicles

 

 

8,478

 

 

 

8,958

 

Construction in progress

 

 

55,010

 

 

 

81,180

 

       Total, at cost

 

 

1,266,590

 

 

 

1,115,936

 

Less accumulated depreciation

 

 

(379,688

)

 

 

(316,617

)

       Property and equipment, net

 

$

886,902

 

 

$

799,319

 

Interest capitalized in conjunction with construction projects and software development was approximately $1.9 million, $1.9 million and $2.5 million for the years ended December 31, 2015, 2014 and 2013, respectively. As of December 31, 2015, commitments for facility construction projects totaled approximately $64.8 million.

During the years ended December 31, 2015, 2014 and 2013, property and equipment impairment charges were recorded in continuing operations as noted in the following table:

 

Year Ended December 31,

 

(In thousands)

 

2015

 

$

12,210

 

2014

 

$

4,394

 

2013

 

$

9,272

 

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.