Property, Equipment And Capital Leases

12 Months Ended

Aug. 31, 2017

Property, Plant and Equipment [Abstract]

Property, Equipment And Capital Leases

Property, Equipment and Capital Leases

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

	Estimated Useful Life	2017			2016
Property, equipment and capital leases:
Land		$	117,402		$	154,420
Buildings and improvements	8 – 25 yrs	251,695			325,068
Drive-In equipment	5 – 7 yrs	75,410			132,488
Brand technology development and other equipment	2 – 5 yrs	126,179			110,554
Property and equipment, at cost		570,686			722,530
Accumulated depreciation		(272,233		)	(345,284		)
Property and equipment, net		298,453			377,246
Capital leases	Life of lease	45,315			43,991
Accumulated amortization		(31,388		)	(28,857		)
Capital leases, net		13,927			15,134
Property, equipment and capital leases, net		$	312,380		$	392,380

Depreciation expense for property and equipment was $35.6 million, $40.4 million and $41.7 million for fiscal years 2017, 2016 and 2015, respectively.  Land, buildings and equipment with a carrying amount of $110.8 million at August 31, 2017, were leased under operating leases to franchisees and other parties.  The accumulated depreciation related to these buildings and equipment was $45.0 million at August 31, 2017.  Amortization expense related to capital leases is included within depreciation and amortization on the consolidated statements of income.  As of August 31, 2017, the Company had no 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 $0.6 million, $0.6 million and $0.4 million for fiscal years 2017, 2016 and 2015, respectively.