Quarterly report [Sections 13 or 15(d)]

Property and Equipment

v3.25.3
Property and Equipment
 9 Months Ended
Sep. 30, 2025
Property, Plant and Equipment [Abstract]  
Property and Equipment
4. Property and Equipment
Property and equipment, net consists of the following:
September 30, 2025 December 31, 2024
(In millions)
Land $ 469.1  $ 484.3 
Buildings and improvements 1,535.8  1,510.7 
Furniture, fixtures and equipment 608.8  577.3 
Construction in progress 62.6  61.6 
Total, at cost 2,676.3  2,633.9 
Less accumulated depreciation (1,081.0) (1,003.6)
Subtotal 1,595.3  1,630.3 
Less assets held for sale (1) (6.9) (23.4)
Property and equipment, net $ 1,588.4  $ 1,606.9 
(1)Classified in other current assets in the accompanying unaudited condensed consolidated balance sheets.
Capital expenditures were approximately $33.5 million and $112.6 million in the three and nine months ended September 30, 2025, respectively, and, in the three and nine months ended September 30, 2024, capital expenditures were approximately $53.3 million and $145.9 million, respectively. Capital expenditures in all periods were primarily related to construction of new franchised dealerships and powersports stores, and building improvements and equipment purchased for use in our franchised dealerships and EchoPark and powersports stores. Certain capital expenditures are recognized in the Franchised Dealerships Segment to better monitor project development costs prior to transferring the capitalized asset balance to the appropriate entity or operating segment upon project completion. Assets held for sale as of September 30, 2025 and December 31, 2024 consisted of real property not currently used in operations that we expect to dispose of in the next 12 months.
Fixed asset impairment charges for the nine months ended September 30, 2025 were approximately $0.2 million, which was related to property held for sale. Fixed asset impairment charges for the nine months ended September 30, 2024 were approximately $2.4 million, which was related to the sale of real estate, capitalized IT project write-off costs and property associated with our decision to close the remaining Northwest Motorsport stores within the EchoPark Segment in January 2024.