PROPERTY AND EQUIPMENT, NET

Property and equipment are stated at historical cost. The historical cost of acquiring an asset includes the costs incurred to bring it to the condition and location necessary for its intended use. 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 certain components of building improvements and buildings from 10 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 where management believes it is reasonably assured that the renewal option in the underlying lease will be exercised because 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,
	2015			2014
Land and land improvements	$	128,071		$	124,082
Building and building improvements	278,982			244,485
Fixtures and equipment	164,916			148,143
Construction in progress	26,679			55,664
Total property and equipment, historical cost	598,648			572,374
Less: accumulated depreciation	(165,608		)	(146,049		)
Property and equipment, net	$	433,040		$	426,325

Depreciation and amortization expense (in thousands):



	Years Ended August 31,
	2015		2014		2013
Depreciation and amortization expense	$	34,445	$	28,475	$	24,444

The Company capitalizes interest on expenditures for qualifying assets over a period that covers the duration of the activities required to get the asset ready for its intended use, provided that expenditures for the asset have been made and interest cost is being incurred. Interest capitalization continues as long as those activities and the incurrence of interest cost continue. The amount capitalized in an accounting period is determined by applying the capitalization rate (average interest rate) to the average amount of accumulated expenditures for the qualifying asset during the period. The capitalization rates are based on the interest rates applicable to borrowings outstanding during the period.

Total interest capitalized (in thousands):



	As of August 31, 2015		As of August 31, 2014
Total interest capitalized	$	6,961	$	6,542

Total interest capitalized (in thousands):



	Twelve Months Ended August 31,
	2015		2014		2013
Interest capitalized	$	1,055	$	1,482	$	1,353

A summary of asset disposal activity for fiscal years 2015, 2014 and 2013 is as follows (in thousands):



	Historical Cost		Accumulated Depreciation		Proceeds from disposal		Gain/(Loss) recognized
Fiscal Year 2015	$	11,740	$	9,367	$	368	$	(2,005	)
Fiscal Year 2014	$	14,733	$	13,146	$	142	$	(1,445	)
Fiscal Year 2013	$	5,282	$	4,129	$	264	$	(889	)

The Company acquired beneficial rights to land in the municipality of Chia, Colombia, which is a northern suburb of Bogota, in May 2015. The Company announced on October 26, 2015 that it received all permits required for the construction and operation of its seventh warehouse club in Colombia on this site. The Company plans to commence construction in November 2015 and currently anticipates that this club will open in fall 2016.

The Company recorded within accounts payable and other accrued expenses approximately $458,000 and $1.5 million, respectively, as of August 31, 2015 and $2.9 million and $1.2 million, respectively, as of August 31, 2014 of liabilities related to the acquisition and/or construction of property and equipment.