8. Accrued Liabilities

Accrued liabilities consist of the following at August 31:


	2012		2011
Wages and employee benefit costs	$	11,061	$	9,757
Property taxes, sales and use taxes and employment taxes		8,869		9,441
Unredeemed gift cards and gift certificates		7,274		8,864
Other		5,403		5,470
	$	32,607	$	33,532

The Company sells gift cards that do not have expiration dates. Gift card balances are recorded as a liability on the Company's Consolidated Balance Sheets. Breakage is the amount on a gift card that is not expected to be redeemed and that the Company is not required to remit to a state under unclaimed property laws. The Company estimates breakage based upon the trend in redemption patterns from previously sold gift cards utilizing its history with the program. The Company's policy is to recognize the breakage using the delayed recognition method when it is apparent that there is a remote likelihood the gift card balance will be redeemed based on historical trends. The Company reduces the gift card liability for the estimated breakage and uses that amount to help defray the costs of operating the gift card program.