PROPERTY AND EQUIPMENT

12 Months Ended

Aug. 31, 2023

Property, Plant and Equipment [Abstract]

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 40 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, 2023		August 31, 2022
Land	$	238,374	$	224,278
Building and improvements	650,060		592,749
Fixtures and equipment	385,100		343,859
Construction in progress	99,545		42,602
Total property and equipment, historical cost	1,373,079		1,203,488
Less: accumulated depreciation	(522,751)		(446,247)
Property and equipment, net	$	850,328	$	757,241

Depreciation and amortization expense (in thousands):


	Years Ended August 31,
	2023		2022		2021
Depreciation expense, Property and equipment	$	71,933	$	66,255	$	62,579
Amortization expense, Intangible assets	765		1,613		2,404
Total depreciation and amortization expense	$	72,698	$	67,868	$	64,983

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):


	Balance as of
	August 31, 2023		August 31, 2022
Total interest capitalized	$	15,426	$	12,934

Total interest capitalized (in thousands):


	Years Ended August 31,
	2023		2022		2021
Interest capitalized	$	2,083	$	1,263	$	2,282

A summary of asset disposal activity for fiscal years 2023, 2022 and 2021 is as follows (in thousands):


	Historical Cost		Accumulated Depreciation		Proceeds from disposal		Loss recognized
Fiscal Year 2023	$	11,484	$	10,379	$	361	$	(744)
Fiscal Year 2022	$	12,785	$	11,327	$	193	$	(1,265)
Fiscal Year 2021	$	10,946	$	9,534	$	385	$	(1,027)

The Company also recorded within accounts payable and other accrued expenses approximately $3.9 million and $0.6 million, respectively, as of August 31, 2023 and $2.2 million and $0.9 million, respectively, as of August 31, 2022 of liabilities related to the acquisition and/or construction of property and equipment.