PROPERTY AND EQUIPMENT, NET

12 Months Ended

Aug. 31, 2011

PROPERTY AND EQUIPMENT, NET [Abstract]

NOTE 4 - PROPERTY AND EQUIPMENT, NET

Property and equipment are stated at historical cost. Depreciation is computed on the straight-line basis over the estimated useful lives of the assets. The useful life of fixtures and equipment ranges from three to 15 years and that of buildings from ten to 25 years. Leasehold improvements are amortized over the shorter of the life of the improvement or the expected term of the lease. In some locations, leasehold improvements are amortized over a period longer than the initial lease term as management believes it is reasonably assured that the renewal option in the underlying lease will be exercised as an economic penalty may be incurred if the option is not exercised. The sale or purchase of property and equipment is recognized upon legal transfer of property. For property and equipment sales, if any long term notes are carried by the Company as part of the sales terms, the sale is reflected at the net present value of current and future cash streams.

Property and equipment consist of the following (in thousands):

	August 31,
	2011			2010
Land	$	84,912		$	81,187
Building and improvements		192,245			171,828
Fixtures and equipment		89,239			88,090
Construction in progress		18,655			13,683
Total property and equipment, historical cost		385,051			354,788
Less: accumulated depreciation		(103,940	)		(89,244	)
Property and equipment, net	$	281,111		$	265,544

Depreciation and amortization expense (in thousands):

	Twelve Months Ended
	August 31,
	2011		2010		2009
Depreciation and amortization expense	$	21,154	$	15,260	$	13,898

The Company reclassified from accumulated other comprehensive loss, approximately $4.9 million, increasing accumulated depreciation. In addition, the Company recorded approximately $2.3 million in additional depreciation. These corrections are related to the translation of foreign currencies (see Note 1 - Company Overview and Basis of Presentation).

Summary of asset disposal activity for fiscal year 2011 (in thousands):

	2011
Disposal Activity	Historical Cost			Accumulated Depreciation		Impairment and Other Costs			Proceeds from disposal		Gain/(Loss) recognized
Sale of property in Panama	$	(8,717	)	$	2,748	$	(188	)	$	7,406	$	1,249
Disposal of assets no longer in use		(9,248	)		8,046		534			182		(486	)
	$	(17,965	)	$	10,794	$	346		$	7,588	$	763

The Company capitalized during fiscal year 2011 approximately $876,000 in interest expense. The total interest capitalized at the end of fiscal year 2011 and 2010 was $4.3 million and $3.5 million, respectively.

On April 9, 2010, the Company relocated one of its three warehouse clubs in Panama City, Panama ("Los Pueblos") to the recently completed new warehouse club ("Brisas"). The Company leased the Los Pueblos site to Juan Diaz Properties, S.A./ Ace International Hardware Corporation ("ACE") under a lease agreement with an option to purchase. ACE exercised its option to purchase the property and on March 23, 2011 the Company's Panama subsidiary entered into a land sale agreement with ACE. The sales price of the property was approximately $5.3 million.

On March 23, 2011, the Company's Panama subsidiary entered into a land sale agreement with OD Panama S.A. (an affiliate of Office Depot, Mexico) for the sale of approximately 28,322 square feet of undeveloped land located adjacent to the Panama, Via Brasil location for approximately $2.1 million. Gonzalo Barrutieta, who has served as a member of the Company's board of directors since February 2008, is a board member of Office Depot, Mexico.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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