Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

v3.19.2
Property and Equipment
 6 Months Ended
Jun. 30, 2019
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
Property and equipment, net consists of the following:
June 30, 2019 December 31, 2018
(In thousands)
Land $ 382,349  $ 381,527 
Building and improvements (1) 994,101  989,872 
Software and computer equipment 97,258  116,348 
Parts and service equipment 119,895  108,040 
Office equipment and fixtures 107,392  96,622 
Company vehicles 9,207  9,139 
Construction in progress 32,390  59,523 
Total, at cost 1,742,592  1,761,071 
Less accumulated depreciation (589,108) (575,720)
Subtotal 1,153,484  1,185,351 
Less assets held for sale (2) (22,542) (6,862)
Property and equipment, net $ 1,130,942  $ 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 as of June 30, 2019.
(2) Classified in other current assets in the accompanying unaudited condensed consolidated balance sheets.
In the three and six months ended June 30, 2019, capital expenditures were approximately $20.6 million and $51.2 million, respectively, and in the three and six months ended June 30, 2018, capital expenditures were approximately $33.9 million and $99.6 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 June 30, 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.
There were no impairment charges for the three months ended June 30, 2019. Impairment charges for the six months ended June 30, 2019 were approximately $2.0 million, 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 and six months ended June 30, 2018 were approximately $10.3 million and $14.0 million, respectively, which include the write-off of certain costs associated with internally developed software as well as the write-off of capitalized costs associated with the abandonment of certain construction projects.