Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

v2.4.0.6
Property and Equipment
 6 Months Ended
Jun. 30, 2011
Property and Equipment [Abstract]  
Property and Equipment

4. Property and Equipment

Property and equipment consists of the following:

 

      000000000000       000000000000  
    June 30,
2011 		    December 31,
2010 		 
    (In thousands)  

Land

   $ 117,637       $ 76,357    

Building and improvements

     400,970         353,088    

Office equipment and fixtures

     82,788         77,654    

Parts and service equipment

     58,354         56,651    

Company vehicles

     8,447         8,137    

Construction in progress

     63,176         48,230    
   

 

 

    

 

 

  

Total, at cost

     731,372         620,117    

Less: accumulated depreciation

     (199,785)        (181,837)   
   

 

 

    

 

 

  

Subtotal

     531,587         438,280    

Less: real estate held for sale (1)

     (2,020)        (2,020)   
   

 

 

    

 

 

  

Property and equipment, net

   $ 529,567       $ 436,260    
   

 

 

    

 

 

  

 

  (1)

Included in other current assets in the accompanying Unaudited Condensed Consolidated Balance Sheets.

In the second quarter and six-month periods ended June 30, 2011, capital expenditures were approximately $22.1 million and $112.7 million ($58.7 million, net of mortgage funding of $54.0 million), respectively. In January 2011, Sonic purchased five dealership properties for $75.2 million which it previously leased through long-term operating leases, utilizing cash on hand and borrowings under the 2010 Credit Facilities (see Note 6 for discussion on the 2010 Credit Facilities). Subsequent to the purchase date, Sonic obtained mortgage funding of $54.0 million related these properties.