Asset Retirement Obligations

6 Months Ended

Feb. 29, 2020

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligations

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 24 years.

A reconciliation of the Company’s asset retirement liability for the twenty-six weeks ended February 29, 2020 was as follows (in thousands):

	February 29, 2020
Beginning balance as of August 31, 2019	$	12,727
Accretion expense		463
Effect of exchange rate changes		28
Balance as of February 29, 2020	$	13,218

Asset retirement obligations are included in current and long-term accrued liabilities in the accompanying Consolidated Balance Sheets.