Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

v3.19.3
Property and Equipment
 9 Months Ended
Sep. 30, 2019
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
Property and equipment, net consists of the following:
September 30, 2019 December 31, 2018
(In thousands)
Land $ 377,818    $ 381,527   
Building and improvements (1) 996,832    989,872   
Software and computer equipment 121,436    116,348   
Parts and service equipment 108,333    108,040   
Office equipment and fixtures 98,181    96,622   
Company vehicles 9,457    9,139   
Construction in progress 43,920    59,523   
Total, at cost 1,755,977    1,761,071   
Less accumulated depreciation (610,914)   (575,720)  
Subtotal 1,145,063    1,185,351   
Less assets held for sale (2) (8,850)   (6,862)  
Property and equipment, net $ 1,136,213    $ 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 sheet as of September 30, 2019.
(2) Classified in other current assets in the accompanying unaudited condensed consolidated balance sheets.
In the three and nine months ended September 30, 2019, capital expenditures were approximately $23.3 million and $74.5 million, respectively, and in the three and nine months ended September 30, 2018, capital expenditures were approximately $34.3 million and $133.9 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 September 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.
Impairment charges for the three and nine months ended September 30, 2019 were approximately $1.1 million and $3.1 million, respectively, which include fair value adjustments of long-lived assets held for sale related to real estate at former EchoPark locations. There were no impairment charges for the three months ended September 30, 2018. Impairment charges for the nine months ended September 30, 2018 were approximately $14.0 million 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.