Sonic 2006 Annual Report Download - page 46

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Total rent expense for all operating leases and capital leases consists of the following for the years ended August 31:
2006 2005 2004
Operating leases:
Minimum rentals $ 12,731 $ 11,355 $ 9,292
Contingent rentals 199 289 254
Sublease rentals (542) (536) (596)
Capital leases:
Contingent rentals 1,123 1,109 789
$ 13,511 $ 12,217 $ 9,739
The aggregate future minimum rentals receivable under noncancelable subleases of operating leases as of
August 31, 2006 was $2,767.
7. Property, Equipment and Capital Leases
Property, equipment and capital leases consist of the following at August 31, 2006 and 2005:
Estimated Useful Life 2006 2005
Property and equipment:
Home office:
Leasehold improvements Life of lease $ 3,066 $ 3,046
Computer and other equipment 2 - 5 yrs 28,842 26,338
Drive-ins, including those leased to others:
Land 154,092 134,695
Buildings 8 - 25 yrs 275,924 231,931
Equipment 5 - 7 yrs 168,019 146,116
Property and equipment, at cost 629,943 542,126
Less accumulated depreciation 185,275 154,269
Property and equipment, net 444,668 387,857
Capital Leases:
Leased home office building Life of lease 9,321 9,321
Leased drive-in buildings, equipment and other assets under
capital leases, including those held for sublease Life of lease 35,844 36,111
Less accumulated amortization 12,779 10,464
Capital leases, net 32,386 34,968
Property, equipment and capital leases, net $477,054 $422,825
Land,buildings and equipment with a carrying amount of $33,836 at August 31, 2006 were leased under
operating leases to franchisees or other parties.The accumulated depreciation related to these buildings and
equipment was $7,507 at August 31, 2006. As of August 31, 2006, the company had drive-ins under construction with
costs to complete which aggregated $3,430.
Sonic Corp. 2006 Annual Report
44
Notes to Consolidated
Financial Statements
August 31, 2006, 2005 and 2004
(In thousands, except per share data)