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

6 Months Ended

Jun. 30, 2011

Property and Equipment [Abstract]

Property and Equipment

4. Property and Equipment

Property and equipment consists of the following:


		June 30,			December 31,
	2011			2010
	(In thousands)
Land	$	117,637		$	76,357
Building and improvements		400,970			353,088
Office equipment and fixtures		82,788			77,654
Parts and service equipment		58,354			56,651
Company vehicles		8,447			8,137
Construction in progress		63,176			48,230

Total, at cost		731,372			620,117
Less: accumulated depreciation		(199,785	)		(181,837	)

Subtotal		531,587			438,280
Less: real estate held for sale (1)		(2,020	)		(2,020	)

Property and equipment, net	$	529,567		$	436,260


(1)		Included in other current assets in the accompanying Unaudited Condensed Consolidated Balance Sheets.

In the second quarter and six-month periods ended June 30, 2011, capital expenditures were approximately $22.1 million and $112.7 million ($58.7 million, net of mortgage funding of $54.0 million), respectively. In January 2011, Sonic purchased five dealership properties for $75.2 million which it previously leased through long-term operating leases, utilizing cash on hand and borrowings under the 2010 Credit Facilities (see Note 6 for discussion on the 2010 Credit Facilities). Subsequent to the purchase date, Sonic obtained mortgage funding of $54.0 million related these properties.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References + Details