NOTE 4 – 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 certain 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,
	2019		2018
Land	$	207,167	$	172,051
Building and improvements		464,025		424,736
Fixtures and equipment		258,543		228,891
Construction in progress		49,555		38,495
Total property and equipment, historical cost		979,290		864,173
Less: accumulated depreciation		(308,139)		(269,770)
Property and equipment, net	$	671,151	$	594,403

Depreciation and amortization expense (in thousands):



	Years Ended August 31,
	2019		2018		2017
Depreciation and amortization expense, Property and equipment	$	52,554	$	51,520	$	46,292

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):

Total interest capitalized (in thousands):



	Years Ended August 31,
	2019		2018		2017
Interest capitalized during the period	$	2,116	$	1,134	$	447

A summary of asset disposal activity for fiscal years 2019, 2018 and 2017 is as follows (in thousands):



	Historical Cost		Accumulated Depreciation		Receivables and Proceeds from Disposal		Gain/(Loss) Recognized
Fiscal Year 2019	$	10,740	$	9,587	$	74	$	(1,079)
Fiscal Year 2018	$	10,465	$	8,388	$	738	$	(1,339)
Fiscal Year 2017	$	19,774	$	17,436	$	377	$	(1,961)

The Company also recorded within accounts payable and other accrued expenses approximately $322,000 and $6.3 million, respectively, as of August 31, 2019 and $81,000 and $1.4 million, respectively, as of August 31, 2018 of liabilities related to the acquisition and/or construction of property and equipment.

Balance as of

August 31,

August 31,

Total interest capitalized