Annual report pursuant to Section 13 and 15(d)

Property and Equipment

v3.6.0.2
Property and Equipment
 12 Months Ended
Dec. 31, 2016
Property Plant And Equipment [Abstract]  
Property and Equipment

4. Property and Equipment

Property and equipment consists of the following: 

 

 

December 31, 2016

 

 

December 31, 2015

 

 

 

(In thousands)

 

Land

 

$

306,457

 

 

$

260,275

 

Building and improvements

 

 

777,766

 

 

 

679,712

 

Software and computer equipment

 

 

128,366

 

 

 

107,086

 

Parts and service equipment

 

 

93,901

 

 

 

79,219

 

Office equipment and fixtures

 

 

86,216

 

 

 

76,810

 

Company vehicles

 

 

9,107

 

 

 

8,478

 

Construction in progress

 

 

62,982

 

 

 

55,010

 

       Total, at cost

 

 

1,464,795

 

 

 

1,266,590

 

Less accumulated depreciation

 

 

(450,184

)

 

 

(379,688

)

Subtotal

 

 

1,014,611

 

 

 

886,902

 

Less assets held for sale (1)

 

 

(4,231

)

 

 

-

 

       Property and equipment, net

 

$

1,010,380

 

 

$

886,902

 

(1)

Classified in other current assets

Interest capitalized in conjunction with construction projects and software development was approximately $2.8 million, $1.9 million and $1.9 million for the years ended December 31, 2016, 2015 and 2014, respectively. As of December 31, 2016, commitments for facility construction projects totaled approximately $56.5 million.

During the years ended December 31, 2016, 2015 and 2014, property and equipment impairment charges were recorded in continuing operations as noted in the following table:

 

Year Ended December 31,

 

(In thousands)

 

2016

 

$

8,063

 

2015

 

$

12,210

 

2014

 

$

4,394

 

Impairment charges related to continuing operations were due to 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.