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Note  Consolidate nancia Satement
August 31, 2008, 2007 and 2006 (In thousands, except per share data)
27
Sonic Corp. 2008 Annual Report
Total rent expense for all operating leases and capital leases consists of the following for the years
ended August 31:
2008 2007 2006
Operating leases:
Minimum rentals $ 14,438 $ 13,644 $ 12,731
Contingent rentals 163 229 199
Sublease rentals (527) (553) (542)
Capital leases:
Contingent rentals 1,326 1,300 1,123
$ 15,400 $ 14,620 $ 13,511
The aggregate future minimum rentals receivable under noncancelable subleases of operating leases as of
August 31, 2008 was $1,704.
7. Property, Equipment and Capital Leases
Property, equipment and capital leases consist of the following at August 31, 2008 and 2007:
Estimated Useful Life 2008 2007
Property and equipment:
Home office:
Leasehold improvements Life of lease $ 3,891 $ 3,082
Computer and other equipment 2 – 5 yrs 40,043 33,134
Drive-ins, including those leased to others:
Land 176,201 158,968
Buildings 8 – 25 yrs 382,268 331,901
Equipment 5 – 7 yrs 192,323 179,863
Property and equipment, at cost 794,726 706,948
Less accumulated depreciation 240,251 211,327
Property and equipment, net 554,475 495,621
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 40,298 40,125
Less accumulated amortization 17,849 15,074
Capital leases, net 31,770 34,372
Property, equipment and capital leases, net $ 586,245 $ 529,993
Land, buildings and equipment with a carrying amount of $27,302 at August 31, 2008 were leased under
operating leases to franchisees or other parties. The accumulated depreciation related to these buildings and
equipment was $6,461 at August 31, 2008. As of August 31, 2008, the company had drive-ins under construction
with costs to complete which aggregated $14,127.