Sonic 2002 Annual Report Download - page 33

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Sonic 02 31
Notes to Consolidated Financial Statements
August 31, 2002, 2001 and 2000 (In thousands, except share data)
7. Property, Equipment and Capital Leases
Property, equipment and capital leases consist of the following at August 31, 2002 and 2001:
Estimated
Useful Life 2002 2001
Home office:
Land and leasehold improvements Life of lease $ 1,697 $ 1,545
Computer and other equipment 2 – 5 yrs 24,662 24,727
Restaurants, including those leased to others:
Land 94,148 81,522
Buildings 15 – 25 yrs 168,055 142,395
Equipment 5 – 7 yrs 101,788 88,145
Property and equipment, at cost 390,350 338,334
Less accumulated depreciation 96,107 77,124
Property and equipment, net 294,243 261,210
Leased restaurant buildings and equipment under capital leases,
including those held for sublease Life of lease 16,449 16,540
Less accumulated amortization 5,406 4,552
Capital leases, net 11,043 11,988
Property, equipment and capital leases, net $ 305,286 $ 273,198
Land, buildings and equipment with a carrying amount of $26,238 at August 31, 2002 were leased under operating
leases to franchisees or other parties. The accumulated depreciation related to these buildings and equipment was $3,962
at August 31, 2002. As of August 31, 2002, the company had restaurants under construction with costs to complete
which aggregated $9,308.
8. Accrued Liabilities
Accrued liabilities consist of the following at August 31, 2002 and 2001:
2002 2001
Wages and other employee benefits $ 5,003 $ 4,022
Taxes, other than income taxes 7,752 6,030
Income taxes payable 5,061 1,210
Accrued interest 1,618 1,852
Obligation to acquire treasury stock 8,729 –
Other 5,866 5,266
$ 34,029 $ 18,380
9. Long-Term Debt
Long-term debt consists of the following at August 31, 2002 and 2001:
2002 2001
Senior unsecured notes (A) $ 50,000 $ 50,000
Borrowings under line of credit (B) 29,000 28,600
Senior unsecured notes (C) 30,000 30,000
Other 375 568
109,375 109,168
Less long-term debt due within one year 125 196
Long-term debt due after one year $ 109,250 $ 108,972