Asset Retirement Obligations

3 Months Ended

Nov. 26, 2022

Asset Retirement Obligation Disclosure [Abstract]

11. Asset Retirement Obligations

The Company recognizes asset retirement obligations in the period in which they are incurred if a reasonable estimate of fair value can be made. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset. The Company

continues to depreciate, on a straight-line basis, the amount added to property, plant and equipment and recognizes accretion expense in connection with the discounted liability over the various remaining lives which range from approximately 1 to 22 years.

A reconciliation of the Company’s asset retirement liability for the thirteen weeks ended November 26, 2022 was as follows (in thousands):


	November 26, 2022
Beginning balance as of August 27, 2022	$	15,274
Accretion expense		227
Effect of exchange rate changes		140
Balance as of November 26, 2022	$	15,641

Asset retirement obligations are included in long-term accrued liabilities in the Company’s consolidated balance sheets.