Property, Equipment And Capital Leases

12 Months Ended

Aug. 31, 2018

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	2018			2017
Property, equipment and capital leases:
Land		$	120,352		$	117,402
Buildings and improvements	8 – 25 yrs	243,434			251,695
Drive-In equipment	5 – 7 yrs	62,679			75,410
Brand technology development and other equipment	2 – 5 yrs	133,020			126,179
Property and equipment, at cost		559,485			570,686
Accumulated depreciation		(271,940		)	(272,233		)
Property and equipment, net		287,545			298,453
Capital leases	Life of lease	39,204			45,315
Accumulated amortization		(28,527		)	(31,388		)
Capital leases, net		10,677			13,927
Property, equipment and capital leases, net		$	298,222		$	312,380

Depreciation expense for property and equipment was $35.3 million, $35.6 million and $40.4 million for fiscal years 2018, 2017 and 2016, respectively.  Land, buildings and equipment with a carrying amount of $155.5 million and $110.8 million at August 31, 2018 and August 31, 2017, respectively, were leased under operating leases to franchisees and other parties.  The accumulated depreciation related to these buildings and equipment was $63.2 million and $45.0 million at August 31, 2018 and August 31, 2017, respectively.  Amortization expense related to capital leases is included within depreciation and amortization on the consolidated statements of income.  As of August 31, 2018, 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 $0.4 million, $0.6 million and $0.6 million for fiscal years 2018, 2017 and 2016, respectively.