Annual report pursuant to Section 13 and 15(d)

Property and Equipment

v2.4.0.6
Property and Equipment
12 Months Ended
Dec. 31, 2012
Property and Equipment [Abstract]  
Property and Equipment
4. Property and Equipment

Property and equipment consists of the following:

 

                 
    December 31,  
    2012     2011  
    (In thousands)  

Land

  $ 142,730     $ 131,865  

Building and improvements

    476,846       455,650  

Office equipment and fixtures

    115,509       92,920  

Parts and service equipment

    62,678       61,561  

Company vehicles

    7,750       8,391  

Construction in progress

    39,139       16,191  
   

 

 

   

 

 

 

Total, at cost

    844,652       766,578  

Less accumulated depreciation

    (249,528     (214,541
   

 

 

   

 

 

 

Property and equipment, net

  $ 595,124     $ 552,037  
   

 

 

   

 

 

 

Interest capitalized in conjunction with construction projects was approximately $1.2 million, $2.3 million and $2.3 million for the years ended December 31, 2012, 2011 and 2010, respectively. As of December 31, 2012, commitments for facility construction projects totaled approximately $44.8 million.

During the years ended December 31, 2012, 2011 and 2010, property and equipment impairment charges were recorded as noted in the following table:

 

                 

Year ended December 31,

  Continuing
Operations
    Discontinued
Operations
 
    (In millions)  

2012

  $ 0.4     $ 0.5  

2011

    0.2       1.0  

2010

    0.2        

Impairment charges related to continuing operations were related to the abandonment of construction 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.