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PROPERTY AND EQUIPMENT | 12 Months Ended
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Aug. 31, 2017
PROPERTY AND EQUIPMENT [Abstract] |
PROPERTY AND EQUIPMENT | NOTE 3 – PROPERTY AND EQUIPMENT ﻿ Property and equipment are stated at historical cost. The historical cost of acquiring an asset includes the costs incurred to bring it to the condition and location necessary for its intended use. Depreciation is computed on the straight-line basis over the estimated useful lives of the assets. The useful life of fixtures and equipment ranges from three to 15 years and that of certain components of building improvements and buildings from 10 to 25 years. Leasehold improvements are amortized over the shorter of the life of the improvement or the expected term of the lease. In some locations, leasehold improvements are amortized over a period longer than the initial lease term where management believes it is reasonably assured that the renewal option in the underlying lease will be exercised because an economic penalty may be incurred if the option is not exercised. The sale or purchase of property and equipment is recognized upon legal transfer of property. ﻿ Property and equipment consist of the following (in thousands): ﻿ ﻿
﻿ |  |  |  |  |  |
﻿ |  |  |  |  |  |
﻿ |  | August 31, |  | August 31,
﻿ |  | 2017 |  | 2016
﻿Land |  | $ | 161,579 |  | $ | 131,896
﻿Building and improvements |  |  | 382,236 |  |  | 305,420
﻿Fixtures and equipment |  |  | 198,147 |  |  | 186,409
﻿Construction in progress |  |  | 40,224 |  |  | 46,861
﻿Total property and equipment, historical cost |  |  | 782,186 |  |  | 670,586
﻿Less: accumulated depreciation |  |  | (224,357) |  |  | (197,541)
﻿Property and equipment, net |  | $ | 557,829 |  | $ | 473,045
﻿ Depreciation and amortization expense (in thousands): ﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |
﻿ |  | Years Ended August 31,
﻿ |  | 2017 |  | 2016 |  | 2015
﻿Depreciation and amortization expense |  | $ | 46,292 |  | $ | 39,794 |  | $ | 34,445
﻿ The Company capitalizes interest on expenditures for qualifying assets over a period that covers the duration of the activities required to get the asset ready for its intended use, provided that expenditures for the asset have been made and interest cost is being incurred. Interest capitalization continues as long as those activities and the incurrence of interest cost continue. The amount capitalized in an accounting period is determined by applying the Company’s consolidated capitalization rate (average interest rate) to the average amount of accumulated expenditures for the qualifying asset, for each country, during the period. The capitalization rates are based on the interest rates applicable to borrowings outstanding during the period. ﻿ Total interest capitalized (in thousands): ﻿ ﻿
﻿ |  |  |  |  |  |
﻿ |  |  |  |  |  |
﻿ |  | Balance as of
﻿ |  | August 31, |  | August 31,
﻿ |  | 2017 |  | 2016
﻿Total interest capitalized |  | $ | 8,262 |  | $ | 7,380
﻿ Total interest capitalized (in thousands): ﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |
﻿ |  | Years Ended August 31,
﻿ |  | 2017 |  | 2016 |  | 2015
﻿Interest capitalized |  | $ | 447 |  | $ | 1,082 |  | $ | 1,055
﻿ A summary of asset disposal activity for fiscal years 20 17, 20 16 and 2015 is as follows (in thousands): ﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  | Historical Cost |  | Accumulated Depreciation |  | Proceeds from disposal |  | Gain/(Loss) recognized
﻿Fiscal Year 2017 |  | $ | 19,774 |  | $ | 17,436 |  | $ | 377 |  | $ | (1,961)
﻿Fiscal Year 2016 |  | $ | 7,578 |  | $ | 6,330 |  | $ | 86 |  | $ | (1,162)
﻿Fiscal Year 2015 |  | $ | 11,740 |  | $ | 9,367 |  | $ | 368 |  | $ | (2,005)
﻿ The Company constructed a new warehouse club on land acquired in May 2015 in Chia, Colombia that opened in September 2016, fiscal year 2017, bringing the total of warehouse clubs operating in Colombia to seven. On December 4, 2015 the Company signed an option to acquire two properties and then swap them for 59,353 square feet of land adjacent to the Company’s San Pedro Sula warehouse club in Honduras. The parcels of land exchanged are all undeveloped contiguous land parcels that make them simil ar in all respects. T he transaction was completely nonmonetary in nature, and the transaction did not generate any gain recognition. The accounting basis of the new pro perty equals $1.9 million (the net book value of the real estate exchanged). The Company exercised this option and completed the swap during May 2016. The Company will use the acquired land to expand the parking lot for the San Pedro Sula warehouse club. In January 2017, the Company finalized its acquisition of a distribution center in Medley, Miami-Dade County, Florida, for a total purchase price of approximately $46.0 million. The Company transferred its Miami dry distribution center activities previously located in its leased facilities to this new facility. This was completed during the third quarter of fiscal year 2017. ﻿ The Company also recorded within accounts payable and other accrued expenses approximately $612,000 and $3.1 million, respectively, as of August 31, 2017 and $476,000 and $1.5 million, respectively, as of August 31, 2016 of liabilities related to the acquisition and/or construction of property and equipment. ﻿

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- Definition The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 + Details
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