Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

v3.19.1
Property and Equipment
 3 Months Ended
Mar. 31, 2019
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
Property and equipment, net consists of the following:
March 31, 2019 December 31, 2018
(In thousands)
Land $ 386,518  $ 381,527 
Building and improvements (1) 952,333  989,872 
Software and computer equipment 119,138  116,348 
Parts and service equipment 107,320  108,040 
Office equipment and fixtures 97,355  96,622 
Company vehicles 9,153  9,139 
Construction in progress 58,711  59,523 
Total, at cost 1,730,528  1,761,071 
Less accumulated depreciation (570,412) (575,720)
Subtotal 1,160,116  1,185,351 
Less assets held for sale (2) (22,543) (6,862)
Property and equipment, net $ 1,137,573  $ 1,178,489 
(1) As discussed in Note 1, “Summary of Significant Accounting Policies,” due to the adoption of ASC 842, “Leases,” effective January 1, 2019, previously existing capital lease assets have been reclassified from property and equipment, net to right-of-use assets in the accompanying unaudited condensed consolidated balance sheets.
(2) Classified in other current assets in the accompanying unaudited condensed consolidated balance sheets.
In the three months ended March 31, 2019 and 2018, capital expenditures were approximately $30.6 million and $65.7 million, respectively. Capital expenditures in all periods were primarily related to real estate acquisitions, construction of new franchised dealerships and EchoPark stores, building improvements and equipment purchased for use in our franchised dealerships and EchoPark stores. Assets held for sale as of March 31, 2019 and December 31, 2018 consists of real property not currently used in operations that we expect to dispose of in the next 12 months.
Impairment charges were approximately $2.0 million in the three months ended March 31, 2019, related to the fair value adjustment of long-lived assets held for sale related to real estate at former EchoPark locations. Impairment charges for the three months ended March 31, 2018 were approximately $3.6 million, which include the write-off of capitalized costs associated with the abandonment of certain construction projects.