Sonic 2003 Annual Report Download - page 41

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p.39
Notes to Consolidated Financial Statements
August 31, 2003, 2002 and 2001 (In thousands, except share data)
7. Property, Equipment and Capital Leases
Property, equipment and capital leases consist of the following at August 31, 2003 and 2002:
Estimated
Useful Life 2003 2002
Home office:
Land and leasehold improvements Life of lease $ 3,762 $ 1,697
Computer and other equipment 2 – 5 yrs 25,972 24,662
Restaurants, including those leased to others:
Land 105,883 94,148
Buildings 15 – 25 yrs 185,747 168,055
Equipment 5 – 7 yrs 114,170 101,788
Property and equipment, at cost 435,534 390,350
Less accumulated depreciation 115,933 96,107
Property and equipment, net 319,601 294,243
Leased restaurant buildings and equipment under capital leases,
including those held for sublease Life of lease 31,943 16,449
Less accumulated amortization 5,993 5,406
Capital leases, net 25,950 11,043
Property, equipment and capital leases, net $ 345,551 $ 305,286
Land, buildings and equipment with a carrying amount of $50,138 at August 31, 2003 were leased under operating
leases to franchisees or other parties. The accumulated depreciation related to these buildings and equipment was $7,295
at August 31, 2003. As of August 31, 2003, the company had restaurants under construction with costs to complete
which aggregated $6,218.
8. Accrued Liabilities
Accrued liabilities consist of the following at August 31, 2003 and 2002:
2003 2002
Wages and other employee benefits $ 3,881 $ 5,003
Taxes, other than income taxes 10,107 7,752
Income taxes payable 7,472 5,061
Accrued interest 1,086 1,618
Obligation to acquire treasury stock –8,729
Other 7,068 5,866
$ 29,614 $ 34,029
9. Long-Term Debt
Long-term debt consists of the following at August 31, 2003 and 2002:
2003 2002
Senior unsecured notes (A) $ 30,000 $ 50,000
Borrowings under line of credit (B) 79,340 29,000
Senior unsecured notes (C) 30,000 30,000
Other 247 375
139,587 109,375
Less long-term debt due within one year 82 125
Long-term debt due after one year $ 139,505 $ 109,250