Asset Retirement Obligations

6 Months Ended

Feb. 25, 2023

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 twenty-six weeks ended February 25, 2023 was as follows (in thousands):


	February 25, 2023
Beginning balance as of August 27, 2022	$	15,274
Accretion expense		458
Effect of exchange rate changes		177
Balance as of February 25, 2023	$	15,909

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