PROPERTY AND EQUIPMENT

12 Months Ended

Aug. 31, 2020

NOTE 4 – PROPERTY AND EQUIPMENT

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 3 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 certain 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.

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



	August 31,		August 31,
	2020		2019
Land	$	215,433	$	207,167
Building and improvements		498,964		464,025
Fixtures and equipment		287,073		258,543
Construction in progress		44,362		49,555
Total property and equipment, historical cost		1,045,832		979,290
Less: accumulated depreciation		(353,553)		(308,139)
Property and equipment, net	$	692,279	$	671,151

Depreciation and amortization expense (in thousands):



	Years Ended August 31,
	2020		2019		2018
Depreciation expense, Property and equipment	$	58,815	$	52,554	$	51,520
Amortization expense, Intangible assets		2,410		2,404		1,120
Total depreciation and amortization expense	$	61,225	$	54,958	$	52,640

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 Company’s consolidated capitalization rate (average interest rate) to the average amount of accumulated expenditures for the qualifying asset, for each country, during the period. The capitalization rates are based on the interest rates applicable to borrowings outstanding during the period.

Total interest capitalized (in thousands):

Total interest capitalized (in thousands):



	Years Ended August 31,
	2020		2019		2018
Interest capitalized	$	2,190	$	2,116	$	1,134

A summary of asset disposal activity for fiscal years 2020, 2019 and 2018 is as follows (in thousands):



	Historical ‎Cost		Accumulated ‎Depreciation		Receivables and Proceeds from Disposal		Loss recognized
Fiscal Year 2020	$	5,115	$	4,640	$	32	$	(443)
Fiscal Year 2019	$	10,740	$	9,587	$	74	$	(1,079)
Fiscal Year 2018	$	10,465	$	8,388	$	738	$	(1,339)

The Company also recorded within accounts payable, other accrued expenses, and other long-term liabilities approximately $2.2 million, $7.3 million, and $1.0 million, respectively, as of August 31, 2020 and $322,000, $6.3 million and $0, respectively, as of August 31, 2019 of liabilities related to the acquisition and/or construction of property and equipment.

Balance as of

August 31,

August 31,

Total interest capitalized