DISCONTINUED OPERATIONS

12 Months Ended

Aug. 31, 2011

DISCONTINUED OPERATIONS [Abstract]

DISCONTINUED OPERATIONS

NOTE 3 - DISCONTINUED OPERATIONS

In accordance with FASB guidance on accounting for the impairment or disposal of long-lived assets the accompanying consolidated financial statements reflect the results of operations and financial position of the Company's activities in the Philippines and Guam as discontinued operations.  Following the closure of the Guam operations in December 2003, the Company included the results of operations from Guam in the asset impairment and closure costs line of the consolidated statements of income through May 2005. However, after the sale of the Philippine operations in August 2005, the results of the Philippines and Guam activities have been consolidated in the discontinued operations line of the consolidated statements of income. Management views these activities as one activity managed under a shared management structure. Cash flow activities related to the Guam discontinued operations' leased property were terminated in August 2011, which was the end of the lease term.

The assets and liabilities of the discontinued operations are presented in the consolidated balance sheets under the captions "Assets of discontinued operations" and "Liabilities of discontinued operations." The underlying assets and liabilities of the discontinued operations for the periods presented are as follows (in thousands):

	August 31,
	2011		2010
Cash and cash equivalents	$	33	$	41
Accounts receivable, net		430		219
Prepaid expenses and other current assets		-		39
Other assets, non-current		1		393
Assets of discontinued operations	$	464	$	692
Other accrued expenses	$	40	$	109
Liabilities of discontinued operations	$	40	$	109

The Company's former Guam operation had a deferred tax asset of $2.6 million, primarily generated from NOLs. This deferred tax asset had a 100% valuation allowance, as the Company was not able utilize these losses. These losses are limited as to their future use due to the Company's Section 382 change of ownership in October 2004. 

The following table sets forth the income (loss) from the discontinued operations of each period presented, in thousands.

	Years Ended August 31,
	2011			2010		2009
Net warehouse club sales	$	-		$	-	$	-
Pre-tax income (loss) from discontinued operations		(44	)		16		(28	)
Income tax (provision) benefit		(42	)		-		-
Income (loss) from discontinued operations	$	(86	)	$	16	$	(28	)

The pre-tax income (loss) from discontinued operations for fiscal years 2011, 2010 and 2009 is the net result of the subleasing activity in Guam.