Annual report pursuant to Section 13 and 15(d)

Property and Equipment

v2.4.0.8
Property and Equipment
 12 Months Ended
Dec. 31, 2013
Property Plant And Equipment [Abstract]  
Property and Equipment
4. Property and Equipment

Property and equipment consists of the following:

 

     December 31, 2013     December 31, 2012  
     (In thousands)  

Land

    $ 194,639      $ 142,730   

Building and improvements

      569,619        476,846   

Office equipment and fixtures

      135,221        115,509   

Parts and service equipment

      70,950        62,678   

Company vehicles

      8,002        7,750   

Construction in progress

      27,716        39,139   
  

 

 

    

 

 

  

Total, at cost

      1,006,147        844,652   

Less accumulated depreciation

      (300,035 )      (249,528 ) 
  

 

 

    

 

 

  

Subtotal

      706,112        595,124   

Less assets held for sale

      (4,101 )      —   
  

 

 

    

 

 

  

Property and equipment, net

    $ 702,011      $ 595,124   
  

 

 

    

 

 

  

 

Interest capitalized in conjunction with construction projects and software development was approximately $2.5 million, $1.2 million and $2.3 million for the years ended December 31, 2013, 2012 and 2011, respectively. As of December 31, 2013, commitments for facility construction projects totaled approximately $13.4 million. Assets held for sale consist of land and buildings related to several properties that are not being used in operations. Amounts are included in other current assets in the accompanying Consolidated Balance Sheets.

During the years ended December 31, 2013, 2012 and 2011, property and equipment impairment charges were recorded as noted in the following table:

 

     Continuing
Operations		      Discontinued
Operations		  
     (In thousands)  

Year ended December 31,

      

2013

    $ 9,272       $ —   

2012

    $ 440       $ 510   

2011

    $ 200       $ 951   

Impairment charges related to continuing operations were related to land and buildings held for sale, 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.