Sonic 2010 Annual Report Download - page 41

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Total rent expense for all operating leases and capital leases consists of the following for the years ended August 31:
2010 2009 2008
Operating leases:
Minimum rentals $ 14,330 $ 14,690 $ 14,438
Contingent rentals 176 199 163
Sublease rentals (2,993) (1,330) (527)
Capital leases:
Contingent rentals 740 945 1,326
$ 12,253 $ 14,504 $ 15,400
The aggregate future minimum rentals receivable under noncancelable subleases of operating leases as of August 31, 2010
was $38,147.
8. Property, Equipment and Capital Leases
Property, equipment and capital leases consist of the following at August 31:
Estimated Useful Life 2010 2009
Property and equipment:
Home office:
Leasehold improvements Life of lease $ 4,541 $ 4,491
Computer and other equipment 2 – 5 yrs 45,459 42,612
Drive-ins, including those leased to others:
Land 172,506 170,679
Buildings 8 – 25 yrs 357,173 372,224
Equipment 5 – 7 yrs 126,014 126,432
Property and equipment, at cost 705,693 716,438
Less accumulated depreciation 244,727 225,388
Property and equipment, net 460,966 491,050
Capital Leases:
Leased home office building Life of lease 9,990 9,990
Leased drive-in buildings, equipment and other assets under
capital leases, including those held for sublease Life of lease 40,795 43,288
Less accumulated amortization 22,487 20,390
Capital leases, net 28,298 32,888
Property, equipment and capital leases, net $ 489,264 $ 523,938
Land, buildings and equipment with a carrying amount of $190,617 at August 31, 2010 were leased under operating leases
to franchisees or other parties. The accumulated depreciation related to these buildings and equipment was $44,915 at August 31,
2010. As of August 31, 2010, the company had drive-ins under construction with costs to complete which aggregated $1,591.
9. Accrued Liabilities
Accrued liabilities consist of the following at August 31:
2010 2009
Wages and other employee benefits $ 5,120 $ 5,224
Taxes, other than income taxes 9,631 11,374
Accrued interest 222 887
Noncontrolling interest in consolidated drive-ins 110 1,501
Unredeemed gift cards and gift certificates 8,586 7,109
Other 9,663 8,417
$ 33,332 $ 34,512
Notes to Consolidated Financial Statements
August 31, 2010, 2009 and 2008 (In thousands, except per share data)
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