Property and Equipment, Net

6 Months Ended

Jun. 30, 2023

Property, Plant and Equipment [Abstract]

NOTE 4 — PROPERTY AND EQUIPMENT, NET

The following table summarizes property and equipment, net as of June 30, 2023 and December 31, 2022:


	June 30, 2023		December 31, 2022

	(in millions)
Land and site improvements	$	1,331	$	1,331
Buildings and improvements	1,317		1,267
Transportation fleet	625		673
Software	284		245
Furniture, fixtures and equipment	140		158
Total property and equipment excluding construction in progress	3,697		3,674
Less: accumulated depreciation and amortization on property and equipment	(652)		(564)
Property and equipment excluding construction in progress, net	3,045		3,110
Construction in progress	81		134
Property and equipment, net	$	3,126	$	3,244

Depreciation and amortization expense on property and equipment was $99 million and $85 million for the three months ended June 30, 2023 and 2022, respectively, of which $42 million and $45 million were recorded to selling, general and administrative expense, respectively, $13 million and $12 million were capitalized to vehicle inventory, respectively, and $44 million and $28 million were recorded to cost of sales, respectively, including $18 million and $11 million previously capitalized to vehicle inventory, respectively.

Depreciation and amortization expense on property and equipment was $199 million and $138 million for the six months ended June 30, 2023 and 2022, respectively, of which $86 million and $81 million were recorded to selling, general and administrative expense, respectively, $25 million and $21 million were capitalized to vehicle inventory, respectively, and $88 million and $36 million were recorded to cost of sales, respectively, including $37 million and $18 million previously capitalized to vehicle inventory, respectively.