DISCONTINUED OPERATIONS

12 Months Ended

Aug. 31, 2012

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

In accordance with FASB guidance on accounting for the impairment or disposal of long-lived assets, the accompanying consolidated financial statements reflect the results of operations and financial position of the Company’s activities in the Philippines and Guam as discontinued operations.  Following the closure of the Guam operations in December 2003, the Company included the results of operations from Guam in the asset impairment and closure costs line of the consolidated statements of income through May 2005. However, after the sale of the Philippine operations in August 2005, the results of the Philippines and Guam activities were consolidated in the discontinued operations line of the consolidated statements of income. Management views these activities as one activity managed under a shared management structure. Cash flow activities related to the Guam discontinued operations’ leased property were terminated in August 2011, which was the end of the lease term. The Company dissolved these operations in Guam at the end of fiscal year 2012.

The assets and liabilities of the discontinued operations are presented in the consolidated balance sheets under the captions “Assets of discontinued operations” and “Liabilities of discontinued operations.” The underlying assets and liabilities of the discontinued operations for the periods presented are as follows (in thousands):

	August 31,
	2012		2011
Cash and cash equivalents	$	—	$	33
Accounts receivable, net	—		430
Other assets, non-current	—		1
Assets of discontinued operations	$	—	$	464
Other accrued expenses	$	—	$	40
Liabilities of discontinued operations	$	—	$	40

The following table sets forth the income (loss) from the discontinued operations of each period presented, in thousands:

	Years Ended August 31,
	2012			2011			2010
Net warehouse club sales	$	—		$	—		$	—
Pre-tax income (loss) from discontinued operations	(25		)	(44		)	16
Income tax (provision) benefit	—			(42		)	—
Income (loss) from discontinued operations	$	(25	)	$	(86	)	$	16

The pre-tax income (loss) from discontinued operations for fiscal years 2012 is the net result of the dissolution of the operations in Guam. The pre-tax income (loss) from discontinued operations for fiscal years 2011 and 2010 is the net result of the subleasing activity in Guam.