Sonic 2009 Annual Report Download - page 40

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Notes to Consolidated Financial Statements
August 31, 2009, 2008 and 2007 (In thousands, except per share data)
8. Property, Equipment and Capital Leases
Property, equipment and capital leases consist of the following at August 31, 2009 and 2008:
Estimated Useful Life 2009 2008
Property and equipment:
Home office:
Leasehold improvements Life of lease $ 4,491 $ 3,891
Computer and other equipment 2 – 5 yrs 42,612 40,043
Drive-ins, including those leased to others:
Land 170,679 176,201
Buildings 8 – 25 yrs 372,224 382,268
Equipment 5 – 7 yrs 126,432 192,323
Property and equipment, at cost 716,438 794,726
Less accumulated depreciation 225,388 240,251
Property and equipment, net 491,050 554,475
Capital Leases:
Leased home office building Life of lease 9,990 9,321
Leased drive-in buildings, equipment and other assets under
capital leases, including those held for sublease Life of lease 43,288 40,298
Less accumulated amortization 20,390 17,849
Capital leases, net 32,888 31,770
Property, equipment and capital leases, net $ 523,938 $ 586,245
Land, buildings and equipment with a carrying amount of $182,869 at August 31, 2009 were leased under operating leases to
franchisees or other parties. The accumulated depreciation related to these buildings and equipment was $37,946 at August 31, 2009.
As of August 31, 2009, the company had drive-ins under construction with costs to complete which aggregated $447.
9. Accrued Liabilities
Accrued liabilities consist of the following at August 31, 2009 and 2008:
2009 2008
Wages and other employee benefits $ 5,224 $ 7,685
Taxes, other than income taxes 11,374 16,004
Accrued interest 887 1,121
Minority interest in consolidated drive-ins 1,501 2,123
Unredeemed gift cards and gift certificates 7,109 6,283
Other 8,417 12,984
$ 34,512 $ 46,200
10. Long-Term Debt
Long-term debt consists of the following at August 31, 2009 and 2008:
2009 2008
5.7% Class A-2 senior notes, due December 2031 $ 511,107 $ 573,300
Class A-1 senior variable funding notes 187,250 185,000
Other 1,193 1,122
699,550 759,422
Less long-term debt due within one year 52,699 38,469
Long-term debt due after one year $ 646,851 $ 720,953
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