Property, Equipment And Capital Leases

12 Months Ended

Aug. 31, 2014

Property, Equipment And Capital Leases [Abstract]

Property, Equipment And Capital Leases

8.Property, Equipment and Capital Leases

Property, equipment and capital leases consist of the following at August 31:

	Estimated
	Useful Life	2014		2013
Property, equipment and capital leases:
Land		$	156,336	$	153,868
Buildings and improvements	8 – 25 yrs		345,309		336,383
Drive-In equipment	5 – 7 yrs		136,556		114,990
Brand technology development and other equipment	2 – 5 yrs		82,575		76,585
Property and equipment, at cost			720,776		681,826
Accumulated depreciation			(298,580)		(301,236)
Property and equipment, net			422,196		380,590
Capital leases	Life of lease		50,243		47,371
Accumulated amortization			(30,470)		(28,300)
Capital leases, net			19,773		19,071
Property, equipment and capital leases, net		$	441,969	$	399,661

Depreciation expense for property and equipment was $37.6million,$35.6million and $37.2 million for fiscal years 2014,  2013 and 2012, respectively.  Land, buildings and equipment with a carrying amount of $163.8 million at August 31, 2014, were leased under operating leases to franchisees and other parties.  The accumulated depreciation related to these buildings and equipment was $58.2 million at August 31, 2014.  Amortization expense related to capital leases is included within “Depreciation and amortization” on the Consolidated Statements of Income.  As of August 31, 2014, the Company had two drive-ins under construction with costs to complete.

Interest incurred in connection with the construction of new drive-ins and technology projects is capitalized.  Capitalized interest was $0.5 million, $0.7 million and $0.3 million for fiscal years 2014, 2013 and 2012, respectively.