Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

v2.3.0.15
Property and Equipment
 9 Months Ended
Sep. 30, 2011
Property and Equipment [Abstract]  
Property and Equipment

4. Property and Equipment

Property and equipment consists of the following:

 

                 
    September 30,
2011		     December 31,
2010		  
    (In thousands)  

Land

   $ 123,451      $ 76,357     

Building and improvements

     439,706        353,088     

Office equipment and fixtures

     88,650        77,654     

Parts and service equipment

     60,201        56,651     

Company vehicles

     8,470        8,137     

Construction in progress

     28,789        48,230     
   

 

 

    

 

 

  

Total, at cost

     749,267        620,117     

Less: accumulated depreciation

     (206,907)       (181,837)    
   

 

 

    

 

 

  

Subtotal

     542,360        438,280     

Less: real estate held for sale (1)

     —        (2,020)    
   

 

 

    

 

 

  

Property and equipment, net

   $ 542,360      $ 436,260     
   

 

 

    

 

 

  

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

 

In the nine-month period ended September 30, 2011, capital expenditures were approximately $135.9 million ($81.5 million, net of mortgage funding of $54.4 million). 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 $54.4 million related to these properties.