Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

v3.8.0.1
Property and Equipment
 3 Months Ended
Mar. 31, 2018
Property, Plant and Equipment [Abstract]  
Property and Equipment
Property and Equipment
Property and equipment, net consists of the following:
 
March 31, 2018
 
December 31, 2017
 
(In thousands)
Land
$
383,749

 
$
370,828

Building and improvements
942,426

 
893,768

Software and computer equipment
150,520

 
147,812

Parts and service equipment
111,497

 
105,123

Office equipment and fixtures
96,381

 
96,066

Company vehicles
9,839

 
9,723

Construction in progress
43,417

 
54,429

Total, at cost
1,737,829

 
1,677,749

Less accumulated depreciation
(548,958
)
 
(527,379
)
Subtotal
1,188,871

 
1,150,370

Less assets held for sale (1)
(9,928
)
 
(3,489
)
Property and equipment, net
$
1,178,943

 
$
1,146,881

(1)
Classified in other current assets in the accompanying condensed consolidated balance sheets.
In the three months ended March 31, 2018 and 2017, capital expenditures were approximately $65.7 million and $75.7 million, respectively. Capital expenditures in both periods were primarily related to real estate acquisitions, construction of new franchised dealerships and pre-owned stores, building improvements and equipment purchased for use in Sonic’s franchised dealerships and pre-owned stores. Assets held for sale as of March 31, 2018 consists of vacant land that Sonic expects to dispose of in the next 12 months.
Impairment charges for the three months ended March 31, 2018 and 2017 were approximately $3.6 million and $0.5 million, respectively. Impairment charges for both periods include the write-off of capitalized costs associated with the abandonment of certain construction projects.