Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Feb. 28, 2021 | Mar. 31, 2021 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Feb. 28, 2021 | |
Document Transition Report | false | |
Entity File Number | 0-22793 | |
Entity Registrant Name | PriceSmart, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 33-0628530 | |
Entity Address, Address Line One | 9740 Scranton Road | |
Entity Address, City or Town | San Diego | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92121 | |
City Area Code | 858 | |
Local Phone Number | 404-8800 | |
Entity Central Index Key | 0001041803 | |
Current Fiscal Year End Date | --08-31 | |
Title of 12(b) Security | Common Stock, $0.0001 par value | |
Trading Symbol | PSMT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 30,749,497 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Feb. 28, 2021 | Aug. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 180,179 | $ 299,481 |
Short-term restricted cash | 736 | 185 |
Short-term investments | 81,430 | 46,509 |
Receivables, net of allowance for doubtful accounts of $178 as of February 28, 2021 and $147 as of August 31, 2020, respectively | 11,874 | 13,153 |
Merchandise inventories | 339,237 | 309,509 |
Prepaid expenses and other current assets | 32,283 | 30,165 |
Total current assets | 645,739 | 699,002 |
Long-term restricted cash | 6,864 | 4,105 |
Property and equipment, net | 712,758 | 692,279 |
Operating lease right-of-use assets, net | 123,968 | 119,533 |
Goodwill | 45,157 | 45,206 |
Other intangibles, net | 8,974 | 10,166 |
Deferred tax assets | 22,332 | 21,672 |
Other non-current assets (includes $228 and $872 as of February 28, 2021 and August 31, 2020, respectively, for the fair value of derivative instruments) | 54,462 | 54,260 |
Investment in unconsolidated affiliates | 10,582 | 10,602 |
Total Assets | 1,630,836 | 1,656,825 |
Current Liabilities: | ||
Short-term borrowings | 23,067 | 65,143 |
Accounts payable | 335,821 | 373,172 |
Accrued salaries and benefits | 29,278 | 32,946 |
Deferred income | 28,283 | 23,525 |
Income taxes payable | 10,181 | 7,727 |
Other accrued expenses and other current liabilities | 35,835 | 37,731 |
Operating lease liabilities, current portion | 7,975 | 8,594 |
Dividends payable | 10,755 | |
Long-term debt, current portion | 20,406 | 19,437 |
Total current liabilities | 501,601 | 568,275 |
Deferred tax liability | 1,557 | 1,713 |
Long-term income taxes payable, net of current portion | 5,439 | 5,132 |
Long-term operating lease liabilities | 129,789 | 124,181 |
Long-term debt, net of current portion | 106,160 | 112,610 |
Other long-term liabilities (includes $3,712 and $4,685 for the fair value of derivative instruments and $6,522 and $6,155 for post-employment plans as of February 28, 2021 and August 31, 2020, respectively) | 11,039 | 12,182 |
Total Liabilities | 755,585 | 824,093 |
Stockholders' Equity: | ||
Common stock $0.0001 par value, 45,000,000 shares authorized; 31,451,915 and 31,417,576 shares issued and 30,777,030 and 30,670,712 shares outstanding (net of treasury shares) as of February 28, 2021 and August 31, 2020, respectively | 3 | 3 |
Additional paid-in capital | 454,881 | 454,455 |
Accumulated other comprehensive loss | (174,778) | (176,820) |
Retained earnings | 616,943 | 582,487 |
Less: treasury stock at cost, 674,885 shares as of February 28, 2021 and 746,864 shares as of August 31, 2020 | (22,781) | (28,406) |
Total stockholders' equity attributable to PriceSmart, Inc. stockholders | 874,268 | 831,719 |
Noncontrolling interest in consolidated subsidiaries | 983 | 1,013 |
Total Stockholders' Equity | 875,251 | 832,732 |
Total Liabilities and Equity | $ 1,630,836 | $ 1,656,825 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Feb. 28, 2021 | Aug. 31, 2020 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Receivables, allowance for doubtful accounts | $ 178 | $ 147 |
Other non-current assets, fair value of derivative instruments | 228 | 872 |
Other long-term liabilities, fair value of derivative instruments | 3,712 | 4,685 |
Other long-term liabilities, post-employment plans | $ 6,522 | $ 6,155 |
Common stock, par value per share | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 45,000,000 | 45,000,000 |
Common stock, shares issued | 31,451,915 | 31,417,576 |
Common stock, shares outstanding | 30,777,030 | 30,670,712 |
Treasury stock, shares | 674,885 | 746,864 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2021 | Feb. 29, 2020 | |
Revenues: | ||||
Net merchandise sales | $ 898,404 | $ 871,726 | $ 1,736,773 | $ 1,650,454 |
Export sales | 9,706 | 8,434 | 20,587 | 16,708 |
Membership income | 13,799 | 14,093 | 27,098 | 27,839 |
Other revenue and income | 15,660 | 12,482 | 30,543 | 23,675 |
Total revenues | 937,569 | 906,735 | 1,815,001 | 1,718,676 |
Cost of goods sold: | ||||
Net merchandise sales | 755,108 | 743,434 | 1,458,727 | 1,406,158 |
Export sales | 9,315 | 8,078 | 19,748 | 16,049 |
Non-merchandise | 6,268 | 4,662 | 12,092 | 8,913 |
Selling, general and administrative: | ||||
Warehouse club and other operations | 90,449 | 84,022 | 175,281 | 163,395 |
General and administrative | 31,270 | 27,618 | 58,791 | 53,502 |
Pre-opening expenses | 48 | 44 | 650 | 997 |
Loss on disposal of assets | 132 | 68 | 202 | 139 |
Total operating expenses | 892,590 | 867,926 | 1,725,491 | 1,649,153 |
Operating income | 44,979 | 38,809 | 89,510 | 69,523 |
Other income (expense): | ||||
Interest income | 445 | 586 | 936 | 879 |
Interest expense | (2,228) | (1,690) | (4,261) | (2,552) |
Other income (expense), net | (292) | 723 | (1,837) | (262) |
Total other expense | (2,075) | (381) | (5,162) | (1,935) |
Income before provision for income taxes and loss of unconsolidated affiliates | 42,904 | 38,428 | 84,348 | 67,588 |
Provision for income taxes | (14,565) | (12,702) | (28,183) | (22,105) |
Loss of unconsolidated affiliates | (12) | (15) | (21) | (63) |
Net income | 28,327 | 25,711 | 56,144 | 45,420 |
Less: net income attributable to noncontrolling interest | (91) | (111) | (171) | (92) |
Net income attributable to PriceSmart, Inc. | $ 28,236 | $ 25,600 | $ 55,973 | $ 45,328 |
Net income attributable to PriceSmart Inc, per share available for distribution: | ||||
Basic | $ 0.92 | $ 0.85 | $ 1.82 | $ 1.49 |
Diluted | $ 0.92 | $ 0.85 | $ 1.82 | $ 1.49 |
Shares used in per share computations: | ||||
Basic | 30,376 | 30,255 | 30,387 | 30,266 |
Diluted | 30,404 | 30,258 | 30,412 | 30,271 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2021 | Feb. 29, 2020 | ||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Abstract] | |||||
Net income | $ 28,327 | $ 25,711 | $ 56,144 | $ 45,420 | |
Less: net income attributable to noncontrolling interest | (91) | (111) | (171) | (92) | |
Net income attributable to PriceSmart, Inc. | 28,236 | 25,600 | 55,973 | 45,328 | |
Other Comprehensive Income, net of tax: | |||||
Foreign currency translation adjustments | [1] | (2,331) | (3,384) | 430 | (7,107) |
Defined benefit pension plan: | |||||
Net gain arising during period | 2 | 6 | 62 | 13 | |
Amortization of prior service cost and actuarial gains included in net periodic pensions cost | 33 | 19 | 66 | 37 | |
Total defined benefit pension plan | 35 | 25 | 128 | 50 | |
Derivative instruments: | |||||
Unrealized gains/(losses) on change in derivative obligations | [2] | (75) | 1,691 | 1,155 | 1,263 |
Unrealized gains/(losses) on change in fair value of interest rate swaps | [2] | 1,251 | (6,128) | 329 | (5,191) |
Amounts reclassified from accumulated other comprehensive income to other expense, net for settlement of derivatives | [2] | 2,747 | 2,751 | ||
Total derivative instruments | [2] | 1,176 | (1,690) | 1,484 | (1,177) |
Other comprehensive income (loss) | (1,120) | (5,049) | 2,042 | (8,234) | |
Comprehensive income | 27,116 | 20,551 | 58,015 | 37,094 | |
Less: comprehensive income attributable to noncontrolling interest | 27 | 21 | 58 | 55 | |
Comprehensive income attributable to PriceSmart, Inc. | $ 27,089 | $ 20,530 | $ 57,957 | $ 37,039 | |
[1] | Translation adjustments arising in translating the financial statements of a foreign entity have no effect on the income taxes of that foreign entity. They may, however, affect: (a) the amount, measured in the parent entity's reporting currency, of withholding taxes assessed on dividends paid to the parent entity and (b) the amount of taxes assessed on the parent entity by the government of its country. The Company has determined that the reinvestment of earnings of its foreign subsidiaries are indefinite because of the long-term nature of the Company's foreign investment plans. Therefore, deferred taxes are not provided for on translation adjustments related to non-remitted earnings of the Company's foreign subsidiaries. | ||||
[2] | See Note 8 - Derivative Instruments and Hedging Activities. |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total Stockholders' Equity Attributable To PriceSmart, Inc. [Member] | Noncontrolling Interest [Member] | Total |
Balance at Aug. 31, 2019 | $ 3 | $ 454,570 | $ (144,339) | $ 525,804 | $ (38,687) | $ 797,351 | $ 928 | $ 798,279 |
Balance (in shares) at Aug. 31, 2019 | 31,461,000 | 924,000 | ||||||
Purchase of treasury stock | $ (1,381) | (1,381) | (1,381) | |||||
Purchase of treasury stock (in shares) | 22,000 | |||||||
Issuance of treasury stock | (7,970) | $ 7,970 | ||||||
Issuance of treasury stock (in shares) | (94,000) | (94,000) | ||||||
Issuance of restricted stock award (in shares) | 109,000 | |||||||
Forfeiture of restricted stock awards (in shares) | (25,000) | |||||||
Stock-based compensation | 6,258 | 6,258 | 6,258 | |||||
Dividend paid to stockholders | (10,710) | (10,710) | (101) | (10,811) | ||||
Dividend payable to stockholders | (10,719) | (10,719) | (10,719) | |||||
Net income | 45,328 | 45,328 | 92 | 45,420 | ||||
Other comprehensive income (loss) | (8,234) | (8,234) | 55 | (8,179) | ||||
Balance at Feb. 29, 2020 | $ 3 | 452,858 | (152,573) | 549,703 | $ (32,098) | 817,893 | 974 | 818,867 |
Balance (in shares) at Feb. 29, 2020 | 31,451,000 | 852,000 | ||||||
Balance at Aug. 31, 2019 | $ 3 | 454,570 | (144,339) | 525,804 | $ (38,687) | 797,351 | 928 | 798,279 |
Balance (in shares) at Aug. 31, 2019 | 31,461,000 | 924,000 | ||||||
Balance at Aug. 31, 2020 | $ 3 | 454,455 | (176,820) | 582,487 | $ (28,406) | 831,719 | 1,013 | $ 832,732 |
Balance (in shares) at Aug. 31, 2020 | 31,418,000 | 747,000 | 30,670,712 | |||||
Balance at Nov. 30, 2019 | $ 3 | 452,242 | (147,524) | 545,532 | $ (33,424) | 816,829 | 943 | $ 817,772 |
Balance (in shares) at Nov. 30, 2019 | 31,475,000 | 862,000 | ||||||
Purchase of treasury stock | $ (920) | (920) | (920) | |||||
Purchase of treasury stock (in shares) | 15,000 | |||||||
Issuance of treasury stock | (2,246) | $ 2,246 | ||||||
Issuance of treasury stock (in shares) | (25,000) | (25,000) | ||||||
Issuance of restricted stock award (in shares) | 24,000 | |||||||
Forfeiture of restricted stock awards (in shares) | (23,000) | |||||||
Stock-based compensation | 2,862 | 2,862 | 2,862 | |||||
Dividend paid to stockholders | (10,710) | (10,710) | (101) | (10,811) | ||||
Dividend payable to stockholders | (10,719) | (10,719) | (10,719) | |||||
Net income | 25,600 | 25,600 | 111 | 25,711 | ||||
Other comprehensive income (loss) | (5,049) | (5,049) | 21 | (5,028) | ||||
Balance at Feb. 29, 2020 | $ 3 | 452,858 | (152,573) | 549,703 | $ (32,098) | 817,893 | 974 | 818,867 |
Balance (in shares) at Feb. 29, 2020 | 31,451,000 | 852,000 | ||||||
Balance at Aug. 31, 2020 | $ 3 | 454,455 | (176,820) | 582,487 | $ (28,406) | 831,719 | 1,013 | $ 832,732 |
Balance (in shares) at Aug. 31, 2020 | 31,418,000 | 747,000 | 30,670,712 | |||||
Purchase of treasury stock | $ (2,239) | (2,239) | $ (2,239) | |||||
Purchase of treasury stock (in shares) | 24,000 | |||||||
Issuance of treasury stock | (7,864) | $ 7,864 | ||||||
Issuance of treasury stock (in shares) | (96,000) | (96,000) | ||||||
Issuance of restricted stock award (in shares) | 133,000 | |||||||
Forfeiture of restricted stock awards (in shares) | (3,000) | |||||||
Stock-based compensation | 8,290 | 8,290 | 8,290 | |||||
Dividend paid to stockholders | (10,762) | (10,762) | (259) | (11,021) | ||||
Dividend payable to stockholders | (10,755) | (10,755) | (10,755) | |||||
Net income | 55,973 | 55,973 | 171 | 56,144 | ||||
Other comprehensive income (loss) | 2,042 | 2,042 | 58 | 2,100 | ||||
Balance at Feb. 28, 2021 | $ 3 | 454,881 | (174,778) | 616,943 | $ (22,781) | 874,268 | 983 | $ 875,251 |
Balance (in shares) at Feb. 28, 2021 | 31,452,000 | 675,000 | 30,777,030 | |||||
Balance at Nov. 30, 2020 | $ 3 | 450,666 | (173,658) | 610,224 | $ (21,068) | 866,167 | 1,124 | $ 867,291 |
Balance (in shares) at Nov. 30, 2020 | 31,396,000 | 658,000 | ||||||
Purchase of treasury stock | $ (1,713) | (1,713) | (1,713) | |||||
Purchase of treasury stock (in shares) | 17,000 | |||||||
Issuance of restricted stock award (in shares) | 56,000 | |||||||
Stock-based compensation | 4,215 | 4,215 | 4,215 | |||||
Dividend paid to stockholders | (10,762) | (10,762) | (259) | (11,021) | ||||
Dividend payable to stockholders | (10,755) | (10,755) | (10,755) | |||||
Net income | 28,236 | 28,236 | 91 | 28,327 | ||||
Other comprehensive income (loss) | (1,120) | (1,120) | 27 | (1,093) | ||||
Balance at Feb. 28, 2021 | $ 3 | $ 454,881 | $ (174,778) | $ 616,943 | $ (22,781) | $ 874,268 | $ 983 | $ 875,251 |
Balance (in shares) at Feb. 28, 2021 | 31,452,000 | 675,000 | 30,777,030 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Operating Activities: | ||
Net income | $ 56,144 | $ 45,420 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 31,765 | 29,988 |
Allowance for doubtful accounts | 31 | (19) |
Loss on sale of property and equipment | 202 | 139 |
Deferred income taxes | (1,997) | (4,063) |
Equity in losses of unconsolidated affiliates | 21 | 63 |
Stock-based compensation | 8,290 | 6,258 |
Change in operating assets and liabilities: | ||
Receivables, prepaid expenses and other current assets, non-current assets, accrued salaries and benefits, deferred membership income and other accruals | 10,156 | 4,711 |
Merchandise inventories | (29,728) | 8,251 |
Accounts payable | (45,157) | (1,683) |
Net cash provided by operating activities | 29,727 | 89,065 |
Investing Activities: | ||
Additions to property and equipment | (47,170) | (70,818) |
Purchases of short-term investments | (51,314) | (20,507) |
Proceeds from settlements of short-term investments | 16,158 | 7,059 |
Purchases of long-term investments | (1,477) | (1,478) |
Proceeds from settlements of long-term investments | 1,477 | |
Proceeds from disposal of property and equipment | 50 | 23 |
Net cash used in investing activities | (82,276) | (85,721) |
Financing Activities: | ||
Proceeds from long-term bank borrowings | 3,000 | 45,820 |
Repayment of long-term bank borrowings | (8,467) | (5,308) |
Proceeds from short-term bank borrowings | 90,019 | |
Repayment of short-term bank borrowings | (41,916) | (93,825) |
Cash dividend payments | (11,021) | (10,811) |
Purchase of treasury stock | (2,239) | (1,381) |
Other financing activities | (171) | (92) |
Net cash provided by (used in) financing activities | (60,814) | 24,422 |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (2,629) | 2,767 |
Net increase (decrease) in cash, cash equivalents | (115,992) | 30,533 |
Cash, cash equivalents and restricted cash at beginning of period | 303,771 | 106,236 |
Cash, cash equivalents and restricted cash at end of period | 187,779 | 136,769 |
Supplemental disclosure of noncash investing activities: | ||
Capital expenditures accrued, but not yet paid | 11,529 | 10,357 |
Reconciliation of cash, cash equivalents, and restricted cash: | ||
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows | $ 187,779 | $ 136,769 |
COMPANY OVERVIEW AND BASIS OF P
COMPANY OVERVIEW AND BASIS OF PRESENTATION | 6 Months Ended |
Feb. 28, 2021 | |
COMPANY OVERVIEW AND BASIS OF PRESENTATION [Abstract] | |
COMPANY OVERVIEW AND BASIS OF PRESENTATION | N OTE 1 – COMPANY OVERVIEW AND BASIS OF PRESENTATION PriceSmart, Inc.’s (“PriceSmart,” the “Company,” or "we") business consists primarily of international membership shopping warehouse clubs similar to, but typically smaller in size than, warehouse clubs in the United States. As of February 28, 2021, the Company had 47 warehouse clubs in operation in 12 countries and one U.S. territory ( eight in Costa Rica and Colombia; seven in Panama; five in the Dominican Republic, four in Trinidad and Guatemala; three in Honduras; two each in El Salvador and Nicaragua; and one each in Aruba, Barbados, Jamaica and the United States Virgin Islands), of which the Company owns 100 % of the corresponding legal entities (see Note 2 - Summary of Significant Accounting Policies). The Company also plans to open new warehouse clubs in Guatemala City, Guatemala and Bucaramanga, Colombia in the fall of 2021, and in Portmore, Jamaica in the spring of 2022. Once these three new clubs are open, the Company will operate 50 warehouse clubs. PriceSmart continues to invest in technology to increase operational efficiencies that are expected to lead to greater value to the member, to gain greater insights into the shopping preferences of our members and to enhance the overall member experience by expanding valuable services and time-saving features. Technology developments are driving omni-channel initiatives and capabilities, including online shopping and services. As of February 28, 2021, the Company offered the Click & Go™ curbside pickup and delivery service in all 13 of its markets. These services provide an alternative and convenient way for members to shop, while reducing physical contact. PriceSmart also operates a package forwarding (casillero) and marketplace business under the “Aeropost” banner in 38 countries in Latin America and the Caribbean, many of which overlap with markets where it operates warehouse clubs. Basis of Presentation – The interim consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q for interim financial reporting pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). The novel coronavirus (COVID-19) pandemic has significantly impacted the economies of the U.S. and the countries where the Company operates. The Company has assessed the impact that COVID-19 has had on our estimates, assumptions and accounting policies and made additional disclosures, if and as necessary. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2020 (the “2020 Form 10-K”). The interim consolidated financial statements include the accounts of PriceSmart, Inc., a Delaware corporation, and its subsidiaries. Inter-company transactions between the Company and its subsidiaries have been eliminated in consolidation. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Feb. 28, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation – The interim consolidated financial statements of the Company included herein include the assets, liabilities and results of operations of the Company’s wholly owned subsidiaries, subsidiaries in which it has a controlling interest, and the Company’s joint ventures for which the Company has determined that it is the primary beneficiary. The Company’s net income excludes income attributable to noncontrolling interests. The Company reports noncontrolling interests in consolidated entities as a component of equity separate from the Company’s equity. The interim consolidated financial statements also include the Company's investment in, and the Company's share of the income (loss) of, joint ventures recorded under the equity method. All significant inter-company accounts and transactions have been eliminated in consolidation. The interim consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the SEC and reflect all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary to fairly present the financial position, results of operations and cash flows for the periods presented. The results for interim periods are not necessarily indicative of the results for the year. The Company determines whether any of the joint ventures in which it has made investments is a Variable Interest Entity (“VIE”) at the start of each new venture and if a reconsideration event has occurred. At this time, the Company also considers whether it must consolidate a VIE and/or disclose information about its involvement in a VIE. A reporting entity must consolidate a VIE if that reporting entity has a variable interest (or combination of variable interests) and is determined to be the primary beneficiary. If the Company determines that it is not the primary beneficiary of the VIE, then the Company records its investment in, and the Company's share of the income (loss) of, joint ventures recorded under the equity method. Due to the nature of the joint ventures that the Company participates in and the continued commitments for additional financing, the Company determined these joint ventures are VIEs. In the case of the Company's ownership interest in real estate development joint ventures, both parties to each joint venture share all rights, obligations and the power to direct the activities of the VIE that most significantly impact the VIE's economic performance. As a result, the Company has determined that it is not the primary beneficiary of the VIEs and, therefore, has accounted for these entities under the equity method. Under the equity method, the Company's investments in unconsolidated affiliates are initially recorded as an investment in the stock of an investee at cost and are adjusted for the carrying amount of the investment to recognize the investor's share of the earnings or losses of the investee after the date of the initial investment. The Company's ownership interest in real estate development joint ventures the Company has recorded under the equity method as of February 28, 2021 are listed below: Real Estate Development Joint Ventures Countries Ownership Basis of Presentation GolfPark Plaza, S.A. Panama 50.0 % Equity (1) Price Plaza Alajuela PPA, S.A. Costa Rica 50.0 % Equity (1) (1) Joint venture interests are recorded as investment in unconsolidated affiliates on the consolidated balance sheets. The Company has determined that for its ownership interest in store-front joint ventures within its marketplace and casillero business, the Company has the power to direct the activities that most significantly impact the economic performance of these VIEs. Therefore, the Company has determined that it is the primary beneficiary of these VIEs and has consolidated these entities within its consolidated financial statements. The Company's ownership interest in store-front joint ventures for which the Company has consolidated their financial statements as of February 28, 2021 are listed below: Marketplace and Casillero Store-front Joint Ventures Countries Ownership Basis of Presentation Guatemala Guatemala 60.0 % Consolidated Tortola British Virgin Islands 50.0 % Consolidated Trinidad Trinidad 50.0 % Consolidated Use of Estimates – The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the interim consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Cash and Cash Equivalents – The Company considers as cash and cash equivalents all cash on deposit, highly liquid investments with a maturity of three months or less at the date of purchase and proceeds due from credit and debit card transactions in the process of settlement. Restricted Cash – The following table summarizes the restricted cash reported by the Company (in thousands): February 28, August 31, 2021 2020 Short-term restricted cash $ 736 $ 185 Long-term restricted cash 6,864 4,105 Total restricted cash (1) $ 7,600 $ 4,290 (1) Restricted cash consists of cash deposits held within banking institutions to comply with federal regulatory requirements in Costa Rica and Panama. In addition, the Company is required to maintain a certificate of deposit of Trinidad dollars, as measured in U.S. dollars, of approximately $ 3.0 million with one of its lenders as a compensating balance for a $3.0 million U.S. dollar denominated loan payable over several years. The certificate of deposit will be reduced annually commensurate with the loan balance. Short-Term Investments – The Company considers as short-term investments certificates of deposit and similar time-based deposits with financial institutions with maturities over three months and up to one year. Long-Term Investments – The Company considers as long-term investments certificates of deposit and similar time-based deposits with financial institutions with maturities over one year. Goodwill and Other Intangibles, net – Goodwill and other intangibles totaled $ 54.1 million as of February 28, 2021 and $ 55.4 million as of August 31, 2020 . The Company reviews reported goodwill and other intangibles at the cash-generating unit level for impairment. The Company tests goodwill for impairment at least annually or when events or changes in circumstances indicate that it is more likely than not that the asset is impaired. Receivables – Receivables consist primarily of credit card receivables and receivables from vendors and are stated net of allowances for credit losses. The determination of the allowance for credit losses is based on the Company’s assessment of collectability along with the consideration of current and expected market conditions that could impact collectability. Tax Receivables – The Company pays Value Added Tax (“VAT”) or similar taxes, income taxes, and other taxes within the normal course of business in most of the countries in which it operates related to the procurement of merchandise and/or services the Company acquires and/or on sales and taxable income. VAT is a form of indirect tax applied to the value added at each stage of production (primary, manufacturing, wholesale and retail). This tax is similar to, but operates somewhat differently than, sales tax paid in the United States. The Company generally collects VAT from its members upon sale of goods and services and pays VAT to its vendors upon purchase of goods and services. Periodically, the Company submits VAT reports to governmental agencies and reconciles the VAT paid and VAT received. The net overpaid VAT may be refunded or applied to subsequent returns, and the net underpaid VAT must be remitted to the government. With respect to income taxes paid, if the estimated income taxes paid or withheld exceed the actual income tax due this creates an income tax receivable. In most countries where the Company operates, the governments have implemented additional collection procedures, such as requiring credit card processors to remit a portion of sales processed via credit and debit cards directly to the government as advance payments of VAT and/or income tax. This collection mechanism generally leaves the Company with net VAT and/or income tax receivables, forcing the Company to process significant refund claims on a recurring basis. These refund or offset processes can take anywhere from several months to several years to complete. In most countries where the Company operates, there are defined and structured processes to recover VAT receivables via refunds or offsets. However, in one country without a clearly defined refund process, the Company is actively engaged with the local government to recover VAT receivables totaling $ 8.7 million and $ 7.0 million as of February 28, 2021 and August 31, 2020, respectively. In two other countries, there have been changes in the method of computing minimum tax payments, under which the governments have sought to require the Company to pay taxes based on a percentage of sales rather than taxable income. As a result, the Company has made and may continue to make income tax payments substantially in excess of those it would expect to pay based on taxable income. The Company had income tax receivables of $ 11.0 million and $ 10.4 million and deferred tax assets of $ 3.2 million and $ 2.8 million as of February 28, 2021 and August 31, 2020, respectively, in these countries. While the rules related to refunds of income tax receivables in these countries are either unclear or complex, the Company has not placed any type of allowance on the recoverability of these tax receivables or deferred tax assets, because the Company believes that it is more likely than not that it will ultimately succeed in its refund requests. Similarly, we have not placed any recoverability allowances on tax receivables that arise from payments we are required to make originating from tax assessments that we are appealing, as we believe it is more likely than not that we will ultimately prevail in the related appeals. There can be no assurance, however, that the Company will be successful in recovering all tax receivables or deferred tax assets. The Company’s policy for classification and presentation of VAT receivables, income tax receivables and other tax receivables is as follows: Short-term VAT and Income tax receivables, recorded as Prepaid expenses and other current assets: This classification is used for any countries where the Company’s subsidiary has generally demonstrated the ability to recover the VAT or income tax receivable within one year. The Company also classifies as short-term any approved refunds or credit notes to the extent that the Company expects to receive the refund or use the credit notes within one year. Long-term VAT and Income tax receivables, recorded as Other non-current assets: This classification is used for amounts not approved for refund or credit in countries where the Company’s subsidiary has not demonstrated the ability to obtain refunds within one year and/or for amounts which are subject to outstanding disputes. An allowance is provided against VAT and income tax receivable balances in dispute when the Company does not expect to eventually prevail in its recovery. The Company does not currently have any allowances provided against VAT and income tax receivables. The following table summarizes the VAT receivables reported by the Company (in thousands): February 28, August 31, 2021 2020 Prepaid expenses and other current assets $ 2,023 $ 1,749 Other non-current assets 27,493 25,851 Total amount of VAT receivables reported $ 29,516 $ 27,600 The following table summarizes the Income tax receivables reported by the Company (in thousands): February 28, August 31, 2021 2020 Prepaid expenses and other current assets $ 8,896 $ 10,944 Other non-current assets 19,630 20,116 Total amount of income tax receivables reported $ 28,526 $ 31,060 Lease Accounting – The Company’s leases are operating leases for warehouse clubs and non-warehouse club facilities such as corporate headquarters, regional offices, and regional distribution centers. The Company determines if an arrangement is a lease and classifies it as either a finance or operating lease at lease inception. Operating leases are included in Operating lease right-of-use assets, net ; Operating lease liabilities, current portion ; and Long-term operating lease liabilities on the consolidated balance sheets. The Company does not have finance leases. Operating lease liabilities are recognized at commencement date based on the present value of the future minimum lease payments over the lease term. The Company’s leases generally do not have a readily determinable implicit rate; therefore, the Company uses a collateralized incremental borrowing rate at the commencement date in determining the present value of future payments. The incremental borrowing rate is based on a yield curve derived from publicly traded bond offerings for companies with credit characteristics that approximate the Company's market risk profile. In addition, we adjust the incremental borrowing rate for jurisdictional risk derived from quoted interest rates from financial institutions to reflect the cost of borrowing in the Company’s local markets. The Company’s lease terms may include options to purchase, extend or terminate the lease, which are recognized when it is reasonably certain that the Company will exercise that option. T he Company does not combine lease and non-lease components. The Company measures Right-of-use (“ROU”) assets based on the corresponding lease liabilities, adjusted for any initial direct costs and prepaid lease payments made to the lessor before or at the commencement date (net of lease incentives). The lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Variable lease payments are not included in the calculation of the ROU asset and the related lease liability and are recognized as this lease expense is incurred. The Company’s variable lease payments generally relate to amounts the Company pays for additional contingent rent based on a contractually stipulated percentage of sales. Merchandise Inventories – Merchandise inventories, which include merchandise for resale, are valued at the lower of cost (average cost) or net realizable value. The Company provides for estimated inventory losses and obsolescence based on a percentage of sales. The provision is adjusted every reporting period to reflect the trend of actual physical inventory and cycle count results. In addition, the Company may be required to take markdowns below the carrying cost of certain inventory to expedite the sale of such merchandise. Stock Based Compensation – The Company utilizes three types of equity awards: restricted stock awards (“RSAs”), restricted stock units (“RSUs”) and performance-based restricted stock units (“PSUs”). Compensation related to RSAs, RSUs and PSUs is based on the fair market value at the time of grant. The Company recognizes the compensation cost related to RSAs and RSUs over the requisite service period as determined by the grant, amortized ratably or on a straight-line basis over the life of the grant. The Company also recognizes compensation cost for PSUs over the performance period of each tranche, adjusting this cost based on the Company’s estimate of the probability that performance metrics will be achieved. If the Company determines that an award is unlikely to vest, any previously recorded expense is then reversed. The Company accounts for actual forfeitures as they occur. The Company records the tax savings resulting from tax deductions in excess of expense for stock-based compensation and the tax deficiency resulting from stock-based compensation in excess of the related tax deduction as income tax expense or benefit. In addition, the Company reflects the tax savings (deficiency) resulting from the taxation of stock-based compensation as an operating cash flow in its consolidated statement of cash flows. RSAs are outstanding shares of common stock and have the same cash dividend and voting rights as other shares of common stock. Shares of common stock subject to RSUs are not issued nor outstanding until vested, and RSUs do not have the same dividend and voting rights as common stock. However, all outstanding RSUs have accompanying dividend equivalents, requiring payment to the employees and directors with unvested RSUs of amounts equal to the dividend they would have received had the shares of common stock underlying the RSUs been actually issued and outstanding. Payments of dividend equivalents to employees are recorded as compensation expense. PSUs, similar to RSUs, are awarded with dividend equivalents, provided that such amounts become payable only if the performance metric is achieved. At the time the Compensation Committee confirms the performance metric has been achieved, the accrued dividend equivalents are paid on the PSUs. Treasury Stock – Shares of common stock repurchased by the Company are recorded at cost as treasury stock and result in the reduction of stockholders’ equity in the Company’s consolidated balance sheets. The Company may reissue these treasury shares as part of its stock-based compensation programs. When treasury shares are reissued, the Company uses the first in/first out (“FIFO”) cost method for determining cost of the reissued shares. If the issuance price is higher than the cost, the excess of the issuance price over the cost is credited to additional paid-in capital (“APIC”). If the issuance price is lower than the cost, the difference is first charged against any credit balance in APIC from treasury stock and the balance is charged to retained earnings. During the six months ended February 28, 2021, the Company reissued approximately 96,400 treasury shares. Fair Value Measurements – The Company measures the fair value for all financial and nonfinancial assets and liabilities that are recognized or disclosed at fair value in the consolidated financial statements on a recurring or nonrecurring basis. The fair value of an asset is the price at which the asset could be sold in an orderly transaction between unrelated, knowledgeable and willing parties able to engage in the transaction. A liability’s fair value is defined as the amount that would be paid to transfer the liability to a new obligor in a transaction between such parties, not the amount that would be paid to settle the liability with the creditor. The Company has established a three-tier fair value hierarchy, which prioritizes the inputs used in measuring and revaluing fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The Company was not required to revalue any assets or liabilities utilizing Level 1 or Level 3 inputs at the balance sheet dates. The Company's Level 2 assets and liabilities revalued at the balance sheet dates, on a recurring basis, consisted of cash flow hedges (interest rate swaps and cross-currency interest rate swaps) and forward foreign exchange contracts. In addition, the Company utilizes Level 2 inputs in determining the fair value of long-term debt. Non-financial assets and liabilities are revalued and recognized at fair value subsequent to initial recognition when there is evidence of impairment. For the periods reported, no impairment of such non-financial assets was recorded. The Company’s current and long-term financial assets and liabilities have fair values that approximate their carrying values. The Company’s long-term financial liabilities consist of long-term debt, which is recorded on the balance sheet at issuance price and adjusted for any applicable unamortized discounts or premiums and debt issuance costs. There have been no significant changes in fair market value of the Company’s current and long-term financial assets, and there have been no material changes to the valuation techniques utilized in the fair value measurement of assets and liabilities disclosed in the Company’s 2020 Annual Report on Form 10-K. Derivatives Instruments and Hedging Activities – The Company uses derivative financial instruments for hedging and non-trading purposes to manage its exposure to changes in interest and currency exchange rates. In using derivative financial instruments for the purpose of hedging the Company’s exposure to interest and currency exchange rate risks, the contractual terms of a hedged instrument closely mirror those of the hedged item and are intended to provide a high degree of risk reduction and correlation. Contracts that are effective at meeting the risk reduction and correlation criteria (effective hedge) are recorded using hedge accounting. If a derivative financial instrument is an effective hedge, changes in the fair value of the instrument will be reported in accumulated other comprehensive loss until the hedged item completes its contractual term. Instruments that do not meet the criteria for hedge accounting, or contracts for which the Company has not elected hedge accounting, are valued at fair value with unrealized gains or losses reported in earnings during the period of the change. The Company did not change valuation techniques utilized in the fair value measurement of assets and liabilities presented on the Company’s consolidated balance sheets from previous practice during the reporting period. The Company seeks to manage counterparty risk associated with these contracts by limiting transactions to counterparties with which the Company has an established banking relationship. There can be no assurance, however, that this practice effectively mitigates counterparty risk. Cash Flow Instruments. The Company is a party to receive floating interest rate, pay fixed-rate interest rate swaps to hedge the interest rate risk of certain U.S. dollar denominated debt within its international subsidiaries. The swaps are designated as cash flow hedges of interest expense risk. These instruments are considered effective hedges and are recorded using hedge accounting. The Company is also a party to receive variable interest rate, pay fixed interest rate cross-currency interest rate swaps to hedge the interest rate and currency exposure associated with the expected payments of principal and interest of U.S. denominated debt within its international subsidiaries whose functional currency is other than the U.S. dollar. The swaps are designated as cash flow hedges of the currency risk and interest-rate risk related to payments on the U.S. denominated debt. These instruments are also considered to be effective hedges and are recorded using hedge accounting. Under cash flow hedging, the entire gain or loss of the derivative, calculated as the net present value of the future cash flows, is reported on the consolidated balance sheets in accumulated other comprehensive loss. Amounts recorded in accumulated other comprehensive loss are released to earnings in the same period that the hedged transaction impacts consolidated earnings. Refer to “Note 8 - Derivative Instruments and Hedging Activities” for information on the fair value of interest rate swaps and cross-currency interest rate swaps as of February 28, 2021 and August 31, 2020. Fair Value Instruments. The Company is exposed to foreign currency exchange rate fluctuations in the normal course of business. This includes exposure to foreign currency exchange rate fluctuations on U.S. dollar denominated liabilities within the Company’s international subsidiaries whose functional currency is other than the U.S. dollar. The Company manages these fluctuations, in part, through the use of non-deliverable forward foreign-exchange contracts that are intended to offset changes in cash flows attributable to currency exchange movements. The contracts are intended primarily to economically address exposure to U.S. dollar merchandise inventory expenditures made by the Company’s international subsidiaries whose functional currency is other than the U.S. dollar. Currently, these contracts are treated for accounting purposes as fair value instruments and do not qualify for derivative hedge accounting, and as such the Company does not apply derivative hedge accounting to record these transactions. As a result, these contracts are valued at fair value with unrealized gains or losses reported in earnings during the period of the change. The Company seeks to mitigate foreign currency exchange-rate risk with the use of these contracts and does not intend to engage in speculative transactions. These contracts do not contain any credit-risk-related contingent features and are limited to less than one year in duration. Other Instruments. Other derivatives not designated as hedging instruments consist primarily of written call options in which the Company receives a premium that it uses to reduce the costs associated with its hedging activities. For derivative instruments not designated as hedging instruments, the Company recognizes changes in fair value of the derivative instrument, as well as the offsetting change in the fair value of the hedged item, in Other expense, net in the consolidated statements of income in the period of change. Revenue Recognition – The accounting policies and other disclosures such as the disclosure of disaggregated revenues are described in “Note 3 – Revenue Recognition.” Insurance Reimbursements – Receipts from insurance reimbursements up to the amount of the losses recognized are considered recoveries. These recoveries are accounted for when they are probable of receipt. Insurance recoveries are not recognized prior to the recognition of the related cost. Anticipated proceeds in excess of the amount of loss recognized are considered gains and are subject to gain contingency guidance. Anticipated proceeds in excess of a loss recognized in the financial statements are not recognized until all contingencies related to the insurance claim are resolved. Cost of Goods Sold – The Company includes the cost of merchandise, food service and bakery raw materials in cost of goods sold, net merchandise sales. The Company also includes in cost of goods sold: net merchandise sales the external and internal distribution and handling costs for supplying merchandise, raw materials and supplies to the warehouse clubs, and, when applicable, costs of shipping to members. External costs include inbound freight, duties, drayage, fees, insurance, and non-recoverable value-added tax related to inventory shrink, spoilage and damage. Internal costs include payroll and related costs, utilities, consumable supplies, repair and maintenance, rent expense and building and equipment depreciation at the Company's distribution facilities and payroll and other direct costs for in-club demonstrations. For export sales, the Company includes the cost of merchandise and external and internal distribution and handling costs for supplying merchandise in cost of goods sold, exports. For the marketplace and casillero operations, the Company includes the costs of external and internal shipping, handling and other direct costs incurred to provide delivery, insurance and customs processing services in cost of goods sold, non-merchandise. Vendor consideration consists primarily of volume rebates, time-limited product promotions, cooperative marketing efforts, digital advertising, slotting fees, demonstration reimbursements and prompt payment discounts. Volume rebates that are not threshold based are incorporated into the unit cost of merchandise reducing the inventory cost and cost of goods sold. Volume rebates that are threshold based are recorded as a reduction to cost of goods sold when the Company achieves established purchase levels that are confirmed by the vendor in writing or upon receipt of funds. On a quarterly basis, the Company calculates the amount of rebates recorded in cost of goods sold that relates to inventory on hand and this amount is reclassified as a reduction to inventory, if significant. Cooperative marketing efforts and digital advertising are related to consideration received by the Company from vendors for non-distinct online advertising services on the Company’s website and social media platforms. Slotting fees are related to consideration received by the Company from vendors for preferential "end cap" placement of the vendor's products within the warehouse club. Demonstration reimbursements are related to consideration received by the Company from vendors for the in-club promotion of the vendors' products. The Company records the reduction in cost of goods sold on a transactional basis for these programs. Prompt payment discounts are taken in substantially all cases and therefore are applied directly to reduce the acquisition cost of the related inventory, with the resulting effect recorded to cost of goods sold when the inventory is sold. Selling, General and Administrative – Selling, general and administrative costs consist primarily of expenses associated with operating warehouse clubs and freight forwarding operations. These costs include payroll and related costs, utilities, consumable supplies, repair and maintenance, rent expense, building and equipment depreciation, bank, credit card processing fees, and amortization of intangibles. Also included in selling, general and administrative expenses are the payroll and related costs for the Company’s U.S. and regional management and purchasing centers. Pre-Opening Costs – The Company expenses pre-opening costs (the costs of start-up activities, including organization costs and rent) for new warehouse clubs as incurred. Contingencies and Litigation – The Company records and reserves for loss contingencies if (a) information available prior to issuance of the consolidated financial statements indicates that it is probable that an asset had been impaired or a liability had been incurred at the date of the consolidated financial statements and (b) the amount of loss can be reasonably estimated. If one or both criteria for accrual are not met, but there is at least a reasonable possibility that a material loss will occur, the Company does not record and reserve for a loss contingency but describes the contingency within a note and provides detail, when possible, of the estimated potential loss or range of loss. If an estimate cannot be made, a statement to that effect is made. Foreign Currency Translation – The assets and liabilities of the Company’s foreign operations are translated to U.S. dollars when the functional currency in the Company’s international subsidiaries is the local currency and not U.S. dollars. Assets and liabilities of these foreign subsidiaries are translated to U.S. dollars at the exchange rate on the balance sheet date, and revenue, costs and expenses are translated at average rates of exchange in effect during the period. The corresponding translation gains and losses are recorded as a component of accumulated other comprehensive income or loss. These adjustments will affect net income upon the sale or liquidation of the underlying investment. The following table discloses the net effect of translation into the reporting currency on other comprehensive loss for these local currency denominated accounts for the three and six months ended February 28, 2021 and February 29, 2020 (in thousands): Three Months Ended Six Months Ended February 28, February 29, February 28, February 29, 2021 2020 2021 2020 Effect on other comprehensive income/(loss) due to foreign currency translation $ ( 2,331 ) $ ( 3,384 ) $ 430 $ ( 7,107 ) Monetary assets and liabilities denominated in currencies other than the functional currency of the respective entity (primarily U.S. dollars) are revalued to the functional currency using the exchange rate on the balance sheet date. These foreign exchange transaction gains (losses), including transactions recorded involving these monetary assets and liabilities, are recorded as Other income (expense) in the consolidated statements of income (in thousands): Three Months Ended Six Months Ended February 28, February 29, February 28, February 29, 2021 2020 2021 2020 Currency gain (loss) $ ( 238 ) $ 755 $ ( 1,731 ) $ ( 902 ) Recent Accounting Prono |
REVENUE RECOGNITION
REVENUE RECOGNITION | 6 Months Ended |
Feb. 28, 2021 | |
REVENUE RECOGNITION [Abstract] | |
Revenue Recognition | NOTE 3 – REVENUE RECOGNITION Performance Obligations The Company identifies each distinct performance obligation to transfer goods (or bundle of goods) or services. The Company recognizes revenue when (or as) it satisfies a performance obligation by transferring control of the goods or services to the customer. Net Merchandise Sales . The Company recognizes net merchandise sales revenue, net of sales taxes, on transactions where the Company has determined that it is the principal in the sale of merchandise. These transactions may include shipping commitments and/or shipping revenue if the transaction involves delivery to the customer. Non-merchandise Sales . The Company recognizes non-merchandise revenue, net of sales taxes, on transactions where the Company has determined that it is the agent in the transaction. These transactions primarily consist of contracts the Company enters into with its customers to provide delivery, insurance and customs processing services for products its customers purchase online in the United States either directly from other vendors utilizing the vendor’s website or through the Company’s marketplace site. Revenue is recognized when the Company’s performance obligations have been completed (that is when delivery of the items have been made to the destination point) and is recorded in “non-merchandise revenue” on the consolidated statements of income. Prepayment for orders for which the Company has not fulfilled its performance obligation are recorded as deferred income. Additionally, the Company records revenue at the net amounts retained, i.e., the amount paid by the customer less amounts remitted to the respective merchandise vendors, as the Company is acting as an agent and is not the principal in the sale of those goods being purchased from the vendors by the Company’s customers. Membership Fee Revenue. Membership income represents annual membership fees paid by the Company’s warehouse club members, which are recognized ratably over the 12-month term of the membership. Our membership policy allows members to cancel their membership in the first 60 days and receive a full refund. After the 60-day period, membership refunds are prorated over the remaining term of the membership. The Company has significant experience with membership refund patterns and expects membership refunds will not be material. Therefore, no refund reserve was required for the periods presented. Membership fee revenue is included in membership income in the Company's consolidated statements of income. The deferred membership fee is included in deferred income in the Company's consolidated balance sheets. Platinum Points Reward Programs. The Company currently offers Platinum memberships in all of its thirteen countries. The annual fee for a Platinum membership is approximately $ 75 . The Platinum membership provides members with a 2 % rebate on most items, up to an annual maximum of $ 500 . The rebate is issued annually to Platinum members on March 1 and expires August 31. Platinum members can apply this rebate to future purchases at the warehouse club during the redemption period. The Company records this 2 % rebate as a reduction of revenue at the time of the sales transaction. Accordingly, the Company has reduced warehouse sales and has accrued a liability within other accrued expenses and other current liabilities, platinum rewards. The Company has determined that breakage revenue is 5 % of the awards issued; therefore, it records 95 % of the Platinum membership liability at the time of sale. Annually, the Company reviews for expired unused rebates outstanding, and the expired unused rebates are recognized as “Other revenue and income” on the consolidated statements of income. Co-branded Credit Card Points Reward Programs. Most of the Company’s subsidiaries have points reward programs related to co-branded Credit Cards. These points reward programs provide incremental points that can be used at a future time to acquire merchandise within the Company’s warehouse clubs. This results in two performance obligations, the first performance obligation being the initial sale of the merchandise or services purchased with the co-branded credit card and the second performance obligation being the future use of the points rewards to purchase merchandise or services. As a result, upon the initial sale, the Company allocates the transaction price to each performance obligation with the amount allocated to the future use points rewards recorded as a contract liability within other accrued expenses and other current liabilities on the consolidated balance sheet. The portion of the selling price allocated to the reward points is recognized as Net merchandise sales when the points are used or when the points expire. The Company reviews on an annual basis expired points rewards outstanding, and the expired rewards are recognized as Net merchandise sales on the consolidated statements of income within markets where the co-branded credit card agreement allows for such treatment. Gift Cards . Members’ purchases of gift cards, to be utilized at the Company's warehouse clubs, are not recognized as sales until the card is redeemed and the customer purchases merchandise using the gift card. The outstanding gift cards are reflected as other accrued expenses and other current liabilities in the consolidated balance sheets. These gift cards generally have a one-year stated expiration date from the date of issuance and are generally redeemed prior to expiration. However, the absence of a large volume of transactions for gift cards impairs the Company's ability to make a reasonable estimate of the redemption levels for gift certificates; therefore, the Company assumes a 100 % redemption rate prior to expiration of the gift certificate. The Company periodically reviews unredeemed outstanding gift certificates, and the gift certificates that have expired are recognized as “Other revenue and income” on the consolidated statements of income. Co-branded Credit Card Revenue Sharing Agreements . As part of the co-branded credit card agreements that the Company has entered into with financial institutions within its markets, the Company often enters into revenue sharing agreements. As part of these agreements, in some countries, the Company receives a portion of the interest income generated from the average outstanding balances on the co-branded credit cards from these financial institutions (“interest generating portfolio” or “IGP”). The Company recognizes its portion of interest received as revenue during the period it is earned. The Company has determined that this revenue should be recognized as “Other revenue and income” on the consolidated statements of income. Contract Performance Liabilities Contract performance liabilities as a result of transactions with customers primarily consist of deferred membership income, other deferred income, deferred gift card revenue, Platinum points programs, and liabilities related to co-branded credit card points rewards programs which are included in deferred income and other accrued expenses and other current liabilities in the Company’s consolidated balance sheets. The following table provides these contract balances from transactions with customers as of the dates listed (in thousands): Contract Liabilities February 28, 2021 August 31, 2020 Deferred membership income $ 27,324 $ 23,051 Other contract performance liabilities $ 11,175 $ 5,190 Disaggregated Revenues In the following table, net merchandise sales are disaggregated by merchandise category (in thousands): Three Months Ended Six Months Ended February 28, 2021 February 29, 2020 February 28, 2021 February 29, 2020 Foods & Sundries $ 448,751 $ 438,345 $ 867,127 $ 831,150 Fresh Foods 257,505 241,317 492,794 456,555 Hardlines 110,712 100,419 223,496 191,422 Softlines 46,935 49,904 87,264 90,263 Other Business 34,501 41,741 66,092 81,064 Net Merchandise Sales $ 898,404 $ 871,726 $ 1,736,773 $ 1,650,454 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Feb. 28, 2021 | |
EARNINGS PER SHARE [Abstract] | |
EARNINGS PER SHARE | NOTE 4 – EARNINGS PER SHARE The Company presents basic net income per share using the two-class method. The two-class method is an earnings allocation formula that treats a participating security as having rights to earnings that otherwise would have been available to common stockholders and that determines basic net income per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings that would have been available to common stockholders. A participating security is defined as a security that may participate in undistributed earnings with common stock. The Company’s capital structure includes securities that participate with common stock on a one-for-one basis for distribution of dividends. These are the restricted stock awards and restricted stock units issued pursuant to the 2013 Equity Incentive Award Plan. The Company does not include performance stock units as participating securities until they vest. The Company determines the diluted net income per share by using the more dilutive of the two class-method or the treasury stock method and by including the basic weighted average of outstanding performance stock units in the calculation of diluted net income per share under the two-class method and including all potential common shares assumed issued in the calculation of diluted net income per share under the treasury stock method. The following table sets forth the computation of net income per share for the three and six months ended February 28, 2021 and February 29, 2020 (in thousands, except per share amounts): Three Months Ended Six Months Ended February 28, February 29, February 28, February 29, 2021 2020 2021 2020 Net income attributable to PriceSmart, Inc. $ 28,236 $ 25,600 $ 55,973 $ 45,328 Less: Allocation of income to unvested stockholders ( 117 ) ( 64 ) ( 580 ) ( 339 ) Net income attributable to PriceSmart, Inc. per share available for distribution $ 28,119 $ 25,536 $ 55,393 $ 44,989 Basic weighted average shares outstanding 30,376 30,255 30,387 30,266 Add dilutive effect of performance stock units (two-class method) 28 3 25 5 Diluted average shares outstanding 30,404 30,258 30,412 30,271 Basic net income per share $ 0.92 $ 0.85 $ 1.82 $ 1.49 Diluted net income per share $ 0.92 $ 0.85 $ 1.82 $ 1.49 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Feb. 28, 2021 | |
STOCKHOLDERS' EQUITY [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 5 – STOCKHOLDERS’ EQUITY Dividends The following table summarizes the dividends declared and paid during fiscal year 2021 and 2020 (amounts are per share). First Payment Second Payment Declared Amount Record Date Date Paid Date Payable Amount Record Date Date Paid Date Payable Amount 2/4/2021 $ 0.70 2/15/2021 2/26/2021 N/A $ 0.35 8/15/2021 N/A 8/31/2021 $ 0.35 2/6/2020 $ 0.70 2/15/2020 2/28/2020 N/A $ 0.35 8/15/2020 8/31/2020 N/A $ 0.35 The Company anticipates the ongoing payment of semi-annual dividends in subsequent periods, although the actual declaration of future dividends, the amount of such dividends, and the establishment of record and payment dates is subject to final determination by the Board of Directors at its discretion after its review of the Company’s financial performance and anticipated capital requirements, taking into account the uncertainty surrounding the ongoing effects of the COVID-19 pandemic on our results of operations and cash flows. Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss The following tables disclose the effects of each component of other comprehensive income (loss), net of tax (in thousands): Attributable to Noncontrolling PriceSmart Interests Total Beginning balance, September 1, 2020 $ ( 176,820 ) $ 134 $ ( 176,686 ) Foreign currency translation adjustments 430 58 488 Defined benefit pension plans (1) 128 — 128 Derivative instruments (2) 1,484 — 1,484 Ending balance, February 28, 2021 $ ( 174,778 ) $ 192 $ ( 174,586 ) Attributable to Noncontrolling PriceSmart Interests Total Beginning balance, September 1, 2019 $ ( 144,339 ) $ 20 $ ( 144,319 ) Foreign currency translation adjustments ( 7,107 ) 55 ( 7,052 ) Defined benefit pension plans (1) 50 — 50 Derivative Instruments (2) ( 1,177 ) — ( 1,177 ) Ending balance, February 29, 2020 $ ( 152,573 ) $ 75 $ ( 152,498 ) Attributable to Noncontrolling PriceSmart Interests Total Beginning balance, September 1, 2019 $ ( 144,339 ) $ 20 $ ( 144,319 ) Foreign currency translation adjustments ( 29,413 ) 114 ( 29,299 ) Defined benefit pension plans (1) ( 79 ) — ( 79 ) Derivative Instruments (2) ( 5,803 ) — ( 5,803 ) Amounts reclassified from accumulated other comprehensive loss 2,814 — 2,814 Ending balance, August 31, 2020 $ ( 176,820 ) $ 134 $ ( 176,686 ) (1) Amounts reclassified from accumulated other comprehensive income (loss) related to the minimum pension liability are included in warehouse club and other operations in the Company's consolidated statements of income. (2) Refer to Note 8 - Derivative Instruments and Hedging Activities. Retained Earnings Not Available for Distribution The following table summarizes retained earnings designated as legal reserves of various subsidiaries which cannot be distributed as dividends to PriceSmart, Inc. according to applicable statutory regulations (in thousands): February 28, August 31, 2021 2020 Retained earnings not available for distribution $ 9,218 $ 8,726 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Feb. 28, 2021 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 6 – COMMITMENTS AND CONTINGENCIES Legal Proceedings From time to time, the Company and its subsidiaries are subject to legal proceedings, claims and litigation arising in the ordinary course of business related to the Company’s operations and property ownership. The Company evaluates such matters on a case by case basis, and vigorously contests any such legal proceedings or claims which the Company believes are without merit. The Company believes that the final disposition of these matters will not have a material adverse effect on its financial position, results of operations or liquidity. It is possible, however, that the Company's results of operations for a particular quarter or fiscal year could be impacted by changes in circumstances relating to such matters. The Company establishes an accrual for legal proceedings if and when those matters reach a stage where they present loss contingencies that are both probable and reasonably estimable. In such cases, there may be a possible exposure to loss in excess of any amounts accrued. The Company monitors those matters for developments that would affect the likelihood of a loss and the accrued amount, if any, thereof, and adjusts the amount as appropriate. If the loss contingency at issue is not both probable and reasonably estimable, the Company does not establish an accrual, but will continue to monitor the matter for developments that will make the loss contingency both probable and reasonably estimable. If it is at least a reasonable possibility that a material loss will occur, the Company will provide disclosure regarding the contingency. On May 22, 2019, a class action complaint was filed against PriceSmart, Inc., as well as certain former and current officers in the United States District Court for the Southern District of California. On October 7, 2019, the Court granted Public Employees Retirement Association of New Mexico’s (PERA’s) Motion for Appointment as Lead Plaintiff. On January 3, 2020, PERA filed a consolidated class action complaint, which alleges violations of Section 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The Company intends to vigorously defend itself against any obligations or liability to the plaintiffs with respect to such claims. The Company believes the claims are without merit. During the third quarter of fiscal 2020, the Company filed a Motion to Dismiss the Plaintiff’s Consolidated Amended Complaint and the Plaintiff filed an Opposition to the Motion to Dismiss. During the fourth quarter of fiscal 2020, the Company filed a Reply to the Opposition and in the second quarter of fiscal 2021, the Motion to Dismiss was granted. The Plaintiff’s time to appeal the Order of the court granting the Company’s Motion to Dismiss has expired. Income Taxes – For interim reporting, the Company uses an estimated annual effective tax rate (AETR), pursuant to ASC 740-270, to calculate income tax expense. Income tax expense, deferred tax assets and liabilities, and liabilities for unrecognized tax benefits reflect management’s best estimate of current and future taxes to be paid. The Company is subject to income taxes in the United States and numerous foreign jurisdictions. Significant judgments and estimates are required in the determination of the consolidated income tax expense. Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in the future. In evaluating its ability to recover deferred tax assets in the jurisdictions from which they arise, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies, and results of recent operations. In projecting future taxable income, the Company begins with historical results adjusted for the results of discontinued operations and incorporates assumptions about the amount of future state, federal, and foreign pretax operating income adjusted for items that do not have tax consequences. The assumptions about future taxable income require the use of significant judgment and are consistent with the plans and estimates we are using to manage the underlying businesses. In evaluating the objective evidence that historical results provide, the Company considers three years of cumulative operating income (loss). The Company is required to file federal and state tax returns in the United States and various other tax returns in foreign jurisdictions. The preparation of these tax returns requires the Company to interpret the applicable tax laws and regulations in effect in such jurisdictions, which could affect the amount of tax paid by the Company. The Company, in consultation with its tax advisors, bases its tax returns on interpretations that are believed to be reasonable under the circumstances. The tax returns, however, are subject to routine reviews by the various taxing authorities in the jurisdictions in which the Company files its returns. As part of these reviews, a taxing authority may disagree with the interpretations the Company used to calculate its tax liability and therefore require the Company to pay additional taxes. The Company accrues an amount for its estimate of probable additional income tax liability. In certain cases, the impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than 50% likelihood of being sustained. There were no significant changes in the Company's uncertain income tax positions since August 31, 2020. In evaluating the exposure associated with various non-income tax filing positions, the Company accrues for probable and estimable exposures for non-income tax related tax contingencies. As of February 28, 2021 and August 31, 2020, the Company has recorded within other accrued expenses and other current liabilities a total of $ 2.0 million and $ 2.5 million, respectively, for various non-income tax related tax contingencies. While the Company believes the recorded liabilities are adequate, there are inherent limitations in projecting the outcome of litigation, in estimating probable additional income tax liability taking into account uncertain tax positions and in evaluating the probable additional tax associated with various non-income tax filing positions. As such, the Company is unable to make a reasonable estimate of the sensitivity to change of estimates affecting its recorded liabilities. As additional information becomes available, the Company assesses the potential liability and revises its estimates as appropriate. In two other countries where the Company operates, minimum income tax rules require the Company to pay taxes based on a percentage of sales rather than income. As a result, the Company is making income tax payments substantially in excess of those it would expect to pay based on taxable income. The Company had income tax receivables of $ 11.0 million and $ 10.4 million and deferred tax assets of $ 3.2 million and $ 2.8 million as of February 28, 2021 and August 31, 2020, respectively, in these countries. While the rules related to refunds of income tax receivables in these countries are either unclear or complex, the Company has not placed any type of allowance on the recoverability of these tax receivables or deferred tax assets, because the Company believes that it is more likely than not that it will ultimately succeed in its refund requests . Other Commitments The Company is also committed to non-cancelable construction service obligations for various warehouse club developments and expansions. As of February 28, 2021 and August 31, 2020, the Company had approximately $ 19.1 million and $ 5.1 million, respectively, in contractual obligations for construction services not yet rendered. From time to time, the Company has entered into general land purchase and land purchase option agreements. The Company’s land purchase agreements are typically subject to various conditions, including, but not limited to, the ability to obtain necessary governmental permits or approvals. A deposit under an agreement is typically returned to the Company if all permits or approvals are not obtained. Generally, the Company has the right to cancel any of its agreements to purchase land without cause by forfeiture of some or all of the deposits it has made pursuant to the agreement. As of February 28, 2021, the Company had entered into a land purchase option agreement that, if completed, would result in the use of approximately $ 7.6 million in cash. The table below summarizes the Company’s interest in real estate joint ventures, commitments to additional future investments and the Company’s maximum exposure to loss as a result of its involvement in these joint venture as of February 28, 2021 (in thousands): Entity % Ownership Initial Investment Additional Investments Net Income Inception to Date Company’s Variable Interest in Entity Commitment to Future Additional Investments (1) Company's Maximum Exposure to Loss in Entity (2) GolfPark Plaza, S.A. 50 % $ 4,616 $ 2,402 $ 41 $ 7,059 $ 99 $ 7,158 Price Plaza Alajuela PPA, S.A. 50 % 2,193 1,236 94 3,523 785 4,308 Total $ 6,809 $ 3,638 $ 135 $ 10,582 $ 884 $ 11,466 (1) The parties intend to seek alternate financing for the project, which could reduce the amount of investments each party would be required to provide. The parties may mutually agree on changes to the project, which could increase or decrease the amount of contributions each party is required to provide. (2) The maximum exposure is determined by adding the Company’s variable interest in the entity and any explicit or implicit arrangements that could require the Company to provide additional financial support. |
DEBT
DEBT | 6 Months Ended |
Feb. 28, 2021 | |
DEBT [Abstract] | |
DEBT | NOTE 7 – DEBT Short-term borrowings consist of unsecured lines of credit. The following table summarizes the balances of total facilities, facilities used and facilities available (in thousands): Facilities Used Total Amount Short-term Letters of Facilities Weighted average of Facilities Borrowings Credit Available interest rate February 28, 2021 $ 131,000 $ 23,067 $ 259 $ 107,674 2.2 % August 31, 2020 $ 81,210 $ 65,143 $ 388 $ 15,679 3.7 % As of February 28, 2021 and August 31, 2020, the Company was in compliance with all covenants or amended covenants for each of its short-term facility agreements. These facilities generally expire annually or bi-annually and are normally renewed. The following table provides the changes in long-term debt for the six-months ended February 28, 2021: (Amounts in thousands) Current portion of long-term debt Long-term debt (net of current portion) Total Balances as of August 31, 2020 $ 19,437 $ 112,610 $ 132,047 (1) Proceeds from long-term debt incurred during the period: Trinidad subsidiary 547 2,453 3,000 Regularly scheduled loan payments ( 650 ) ( 7,817 ) ( 8,467 ) Reclassifications of long-term debt due in the next 12 months 1,058 ( 1,058 ) — Translation adjustments on foreign currency debt of subsidiaries whose functional currency is not the U.S. dollar (2) 14 ( 28 ) ( 14 ) Balances as of February 28, 2021 $ 20,406 $ 106,160 $ 126,566 (3) (1) The carrying amount of non-cash assets assigned as collateral for these loans was $ 158.6 million. No cash assets were assigned as collateral for these loans. (2) These foreign currency translation adjustments are recorded within Other comprehensive loss. (3) The carrying amount of cash and non-cash assets assigned as collateral for these loans was $ 3.0 million and $ 149.3 million, respectively. As of February 28, 2021 and August 31, 2020, the Company had approximately $ 100.0 million and $ 107.4 million, respectively, of long-term loans in several foreign subsidiaries that require these subsidiaries to comply with certain annual or quarterly financial covenants, which include debt service and leverage ratios. The Company was in compliance with all covenants or amended covenants for both periods. Annual maturities of long-term debt are as follows (in thousands): Twelve Months Ended February 28, Amount 2022 $ 20,406 2023 21,046 2024 17,079 2025 26,754 2026 4,476 Thereafter 36,805 Total $ 126,566 |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 6 Months Ended |
Feb. 28, 2021 | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | NOTE 8 – DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Company is exposed to interest rate risk relating to its ongoing business operations. To manage interest rate exposure, the Company enters into hedge transactions (interest rate swaps) using derivative financial instruments. The objective of entering into interest rate swaps is to eliminate the variability of cash flows in the LIBOR interest payments associated with variable-rate loans over the life of the loans. As changes in interest rates impact the future cash flow of interest payments, the hedges provide a synthetic offset to interest rate movements. In addition, the Company is exposed to foreign currency and interest rate cash flow exposure related to non-functional currency long-term debt of two of its wholly owned subsidiaries. To manage this foreign currency and interest rate cash flow exposure, the Company’s subsidiaries entered into cross-currency interest rate swaps that convert their U.S. dollar denominated floating interest payments to functional currency fixed interest payments during the life of the hedging instrument. As changes in foreign exchange and interest rates impact the future cash flow of interest payments, the hedges are intended to offset changes in cash flows attributable to interest rate and foreign exchange movements. These derivative instruments (cash flow hedging instruments) are designated and qualify as cash flow hedges, with the entire gain or loss on the derivative reported as a component of other comprehensive loss. Amounts are deferred in other comprehensive loss and reclassified into earnings in the same income statement line item that is used to present earnings effect of the hedged item when the hedged item affects earnings. The Company is exposed to foreign-currency exchange-rate fluctuations in the normal course of business, including foreign-currency exchange-rate fluctuations on U.S. dollar denominated liabilities within its international subsidiaries whose functional currency is other than the U.S. dollar. The Company manages these fluctuations, in part, through the use of non-deliverable forward foreign-exchange contracts (NDFs) that are intended to offset changes in cash flow attributable to currency exchange movements. These contracts are intended primarily to economically address exposure to U.S. dollar merchandise inventory expenditures made by the Company’s international subsidiaries whose functional currency is other than the U.S. dollar. Currently, these contracts do not qualify for derivative hedge accounting. The Company seeks to mitigate foreign-currency exchange-rate risk with the use of these contracts and does not intend to engage in speculative transactions. These contracts do not contain any credit-risk-related contingent features. The Company uses other derivatives not designated as hedging instruments that consist primarily of written call options in which the Company receives a premium from the holder. This premium lowers the cost of the Company’s hedging activities. The Company recognizes changes in fair value of the derivative instrument, as well as the offsetting change in the fair value of the hedged item, in Other expense, net in the consolidated statements of income in the period of change. Cash Flow Hedges As of February 28, 2021, all of the Company’s interest rate swap and cross-currency interest rate swap derivative financial instruments are designated and qualify as cash flow hedges. The Company formally documents the hedging relationships for its derivative instruments that qualify for hedge accounting. The following table summarizes agreements for which the Company has recorded cash flow hedge accounting for the six months ended February 28, 2021: Subsidiary Date Entered into Derivative Financial Counter- party Derivative Financial Instruments Initial US$ Notional Amount Bank US$ loan Held with Floating Leg (swap counter-party) Fixed Rate for PSMT Subsidiary Settlement Dates Effective Period of swap Colombia 3-Dec-19 Citibank, N.A. ("Citi") Cross currency interest rate swap $ 7,875,000 Citibank, N.A. Variable rate 3-month Libor plus 2.45 % 7.87 % 3rd day of each December, March, June, and September, beginning on March 3, 2020 December 3, 2019 - December 3, 2024 Colombia 27-Nov-19 Citibank, N.A. ("Citi") Cross currency interest rate swap $ 25,000,000 Citibank, N.A. Variable rate 3-month Libor plus 2.45 % 7.93 % 27th day of each November, February, May and August beginning February 27, 2020 November 27, 2019 - November 27, 2024 Colombia 24-Sep-19 Citibank, N.A. ("Citi") Cross currency interest rate swap $ 12,500,000 PriceSmart, Inc. Variable rate 3-month Libor plus 2.50 % 7.09 % 24th day of each December, March, June and September beginning December 24, 2019 September 24, 2019 - September 26, 2022 Panama 25-Jun-18 Bank of Nova Scotia ("Scotiabank") Interest rate swap $ 14,625,000 Bank of Nova Scotia Variable rate 3-month Libor plus 3.0 % 5.99 % 23rd day of each month beginning on July 23, 2018 June 25, 2018 - March 23, 2023 Honduras 26-Feb-18 Citibank, N.A. ("Citi") Cross currency interest rate swap $ 13,500,000 Citibank, N.A. Variable rate 3-month Libor plus 3.00 % 9.75 % 29th day of May, August, November and February beginning May 29, 2018 February 26, 2018 - February 24, 2024 PriceSmart, Inc 7-Nov-16 MUFG Union Bank, N.A. ("Union Bank") Interest rate swap $ 35,700,000 Union Bank Variable rate 1-month Libor plus 1.7 % 3.65 % 1st day of each month beginning on April 1, 2017 March 1, 2017 - March 1, 2027 For the three and six months ended February 28, 2021 and February 29, 2020, the Company included the gain or loss on the hedged items (that is, variable-rate borrowings) in the same line item—interest expense—as the offsetting gain or loss on the related interest rate swaps as follows (in thousands): Income Statement Classification Interest expense on borrowings (1) Cost of swaps (2) Total Interest expense for the three months ended February 28, 2021 $ 676 $ 953 $ 1,629 Interest expense for the three months ended February 29, 2020 $ 1,206 $ 596 $ 1,802 Interest expense for the six months ended February 28, 2021 $ 1,360 $ 1,878 $ 3,238 Interest expense for the six months ended February 29, 2020 $ 2,219 $ 857 $ 3,076 (1) This amount is representative of the interest expense recognized on the underlying hedged transactions. (2) This amount is representative of the interest expense recognized on the interest rate swaps and cross-currency swaps designated as cash flow hedging instruments. The total notional balance of the Company’s pay-fixed/receive-variable interest rate swaps and cross-currency interest rate swaps was as follows (in thousands): Notional Amount as of February 28, August 31, Floating Rate Payer (Swap Counterparty) 2021 2020 Union Bank $ 33,256 $ 33,894 Citibank N.A. 53,371 55,086 Scotiabank 10,875 11,625 Total $ 97,502 $ 100,605 Derivatives listed on the table below were designated as cash flow hedging instruments. The table summarizes the effect of the fair value of interest rate swap and cross-currency interest rate swap derivative instruments that qualify for derivative hedge accounting and its associated tax effect on accumulated other comprehensive (income)/loss (in thousands): February 28, 2021 August 31, 2020 Derivatives designated as cash flow hedging instruments Balance Sheet Classification Fair Value Net Tax Effect Net OCI Fair Value Net Tax Effect Net OCI Cross-currency interest rate swaps Other non-current assets $ 228 $ ( 69 ) $ 159 $ 872 $ ( 265 ) $ 607 Interest rate swaps Other long-term liabilities ( 2,517 ) 591 ( 1,926 ) ( 3,857 ) 898 ( 2,959 ) Cross-currency interest rate swaps Other long-term liabilities ( 1,195 ) 360 ( 835 ) ( 828 ) 248 ( 580 ) Net fair value of derivatives designated as hedging instruments $ ( 3,484 ) $ 882 $ ( 2,602 ) $ ( 3,813 ) $ 881 $ ( 2,932 ) Fair Value Instruments From time to time the Company enters into non-deliverable forward foreign-exchange contracts. These contracts are treated for accounting purposes as fair value contracts and do not qualify for derivative hedge accounting. The use of non-deliverable forward foreign-exchange contracts is intended to offset changes in cash flow attributable to currency exchange movements. These contracts are intended primarily to economically hedge exposure to U.S. dollar merchandise inventory expenditures made by the Company’s international subsidiaries whose functional currency is other than the U.S. dollar. As of February 28, 2021, the Company did not have any material non-deliverable forward foreign-exchange contracts. Other Instruments Other derivatives not designated as hedging instruments consist primarily of written call options in which the Company receives a premium that it uses to reduce the costs associated with its hedging activities. As of February 28, 2021, all of the Company’s contracts are designated as hedging instruments. For the three and six months ended February 28, 2021 and February 29, 2020, the Company included in its consolidated statements of income the loss of its other non-designated derivative contracts as follows (in thousands): Three Months Ended Six Months Ended February 28, February 29, February 28, February 29, Income Statement Classification 2021 2020 2021 2020 Other income (expense), net $ — $ 358 $ — $ ( 912 ) |
SEGMENTS
SEGMENTS | 6 Months Ended |
Feb. 28, 2021 | |
SEGMENTS [Abstract] | |
SEGMENTS | NOTE 9 – SEGMENTS The Company and its subsidiaries are principally engaged in the international operation of membership shopping in 47 warehouse clubs located in 12 countries and one U.S. territory that are located in Central America, the Caribbean and Colombia. In addition, the Company operates distribution centers and corporate offices in the United States. The Company has aggregated its warehouse clubs, distribution centers and corporate offices into reportable segments. The Company’s reportable segments are based on management’s organization of these locations into operating segments by general geographic location, used by management and the Company's chief operating decision maker in setting up management lines of responsibility, providing support services, and making operational decisions and assessments of financial performance. Segment amounts are presented after converting to U.S. dollars and consolidating eliminations. Certain revenues, operating costs and inter-company charges included in the United States segment are not allocated to the segments within this presentation, as it is impractical to do so, and they appear as reconciling items to reflect the amount eliminated on consolidation of intersegment transactions. From time to time, the Company revises the measurement of each segment's operating income and net income, including certain corporate overhead allocations, and other measures as determined by the information regularly reviewed by the Company's chief operating decision maker. When the Company does so, the previous period amounts and balances are reclassified to conform to the current period's presentation. The following tables summarize by segment certain revenues, operating costs and balance sheet items (in thousands): United States Operations Central American Operations Caribbean Operations (1) Colombia Operations Reconciling Items (2) Total Three Months Ended February 28, 2021 Revenue from external customers $ 22,768 $ 541,000 $ 260,169 $ 113,632 — $ 937,569 Intersegment revenues 296,255 3,801 1,124 850 ( 302,030 ) — Depreciation, Property and equipment 1,784 7,683 3,858 2,362 — 15,687 Amortization, Intangibles 593 — — — — 593 Operating income (loss) 2,028 40,362 20,766 6,439 ( 24,616 ) 44,979 Net income (loss) attributable to PriceSmart, Inc. ( 1,545 ) 32,309 17,480 4,699 ( 24,707 ) 28,236 Capital expenditures, net 1,500 14,066 5,804 7,007 — 28,377 Six Months Ended February 28, 2021 Revenue from external customers $ 46,385 $ 1,035,692 $ 518,685 $ 214,239 $ — $ 1,815,001 Intersegment revenues 646,358 8,537 2,270 1,979 ( 659,144 ) — Depreciation, Property and equipment 3,449 15,377 7,650 4,097 — 30,573 Amortization, Intangibles 1,192 — — — — 1,192 Operating income (loss) 7,771 74,807 42,359 12,004 ( 47,431 ) 89,510 Net income (loss) attributable to PriceSmart, Inc. ( 1,917 ) 61,547 34,650 9,295 ( 47,602 ) 55,973 Long-lived assets (other than deferred tax assets) 80,449 483,729 181,815 162,641 — 908,634 Intangibles, net 8,974 — — — — 8,974 Goodwill 10,695 24,389 10,073 — — 45,157 Total assets 201,726 770,899 430,327 227,884 — 1,630,836 Capital expenditures, net 2,718 21,610 8,262 15,546 — 48,136 Three Months Ended February 29, 2020 Revenue from external customers $ 18,848 $ 522,607 $ 261,683 $ 103,597 $ — $ 906,735 Intersegment revenues 287,362 3,909 860 547 ( 292,678 ) — Depreciation, Property and equipment 1,338 7,568 3,826 1,844 — 14,576 Amortization, Intangibles 599 — — — — 599 Operating income (loss) 1,928 37,667 15,079 5,400 ( 21,265 ) 38,809 Net income (loss) attributable to PriceSmart, Inc. ( 841 ) 30,339 13,810 3,666 ( 21,374 ) 25,600 Capital expenditures, net 3,489 18,128 7,230 4,465 — 33,312 Six Months Ended February 29, 2020 Revenue from external customers $ 36,187 $ 989,409 $ 496,700 $ 196,380 $ — $ 1,718,676 Intersegment revenues 637,312 7,954 2,079 1,083 ( 648,428 ) — Depreciation, Property and equipment 2,687 14,450 7,792 3,861 — 28,790 Amortization, Intangibles 1,198 — — — — 1,198 Operating income (loss) 4,516 69,367 26,889 9,924 ( 41,173 ) 69,523 Net income (loss) attributable to PriceSmart, Inc. ( 1,564 ) 57,091 24,129 6,937 ( 41,265 ) 45,328 Long-lived assets (other than deferred tax assets) 86,306 477,195 187,641 145,981 — 897,123 Intangibles, net 11,378 — — — — 11,378 Goodwill 10,695 24,522 10,196 — — 45,413 Total assets 157,116 723,673 390,000 227,503 — 1,498,292 Capital expenditures, net 4,118 33,371 11,750 25,299 — 74,538 As of August 31, 2020 Long-lived assets (other than deferred tax assets) $ 81,008 $ 475,744 $ 177,166 $ 146,862 $ — $ 880,780 Intangibles, net 10,166 — — — — 10,166 Goodwill 10,696 24,418 10,092 — — 45,206 Total assets 272,190 741,523 395,244 247,868 — 1,656,825 (1) Management considers its club in the U.S. Virgin Islands to be part of its Caribbean operations. (2) The reconciling items reflect the amount eliminated on consolidation of intersegment transactions. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Feb. 28, 2021 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | NOTE 10 – SUBSEQUENT EVENTS The Company has evaluated all events subsequent to the balance sheet date of February 28, 2021 through the date of issuance of these consolidated financial statements and has determined that there are no subsequent events that require disclosure. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy) | 6 Months Ended |
Feb. 28, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Principles of Consolidation | Principles of Consolidation – The interim consolidated financial statements of the Company included herein include the assets, liabilities and results of operations of the Company’s wholly owned subsidiaries, subsidiaries in which it has a controlling interest, and the Company’s joint ventures for which the Company has determined that it is the primary beneficiary. The Company’s net income excludes income attributable to noncontrolling interests. The Company reports noncontrolling interests in consolidated entities as a component of equity separate from the Company’s equity. The interim consolidated financial statements also include the Company's investment in, and the Company's share of the income (loss) of, joint ventures recorded under the equity method. All significant inter-company accounts and transactions have been eliminated in consolidation. The interim consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the SEC and reflect all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary to fairly present the financial position, results of operations and cash flows for the periods presented. The results for interim periods are not necessarily indicative of the results for the year. The Company determines whether any of the joint ventures in which it has made investments is a Variable Interest Entity (“VIE”) at the start of each new venture and if a reconsideration event has occurred. At this time, the Company also considers whether it must consolidate a VIE and/or disclose information about its involvement in a VIE. A reporting entity must consolidate a VIE if that reporting entity has a variable interest (or combination of variable interests) and is determined to be the primary beneficiary. If the Company determines that it is not the primary beneficiary of the VIE, then the Company records its investment in, and the Company's share of the income (loss) of, joint ventures recorded under the equity method. Due to the nature of the joint ventures that the Company participates in and the continued commitments for additional financing, the Company determined these joint ventures are VIEs. In the case of the Company's ownership interest in real estate development joint ventures, both parties to each joint venture share all rights, obligations and the power to direct the activities of the VIE that most significantly impact the VIE's economic performance. As a result, the Company has determined that it is not the primary beneficiary of the VIEs and, therefore, has accounted for these entities under the equity method. Under the equity method, the Company's investments in unconsolidated affiliates are initially recorded as an investment in the stock of an investee at cost and are adjusted for the carrying amount of the investment to recognize the investor's share of the earnings or losses of the investee after the date of the initial investment. The Company's ownership interest in real estate development joint ventures the Company has recorded under the equity method as of February 28, 2021 are listed below: Real Estate Development Joint Ventures Countries Ownership Basis of Presentation GolfPark Plaza, S.A. Panama 50.0 % Equity (1) Price Plaza Alajuela PPA, S.A. Costa Rica 50.0 % Equity (1) (1) Joint venture interests are recorded as investment in unconsolidated affiliates on the consolidated balance sheets. The Company has determined that for its ownership interest in store-front joint ventures within its marketplace and casillero business, the Company has the power to direct the activities that most significantly impact the economic performance of these VIEs. Therefore, the Company has determined that it is the primary beneficiary of these VIEs and has consolidated these entities within its consolidated financial statements. The Company's ownership interest in store-front joint ventures for which the Company has consolidated their financial statements as of February 28, 2021 are listed below: Marketplace and Casillero Store-front Joint Ventures Countries Ownership Basis of Presentation Guatemala Guatemala 60.0 % Consolidated Tortola British Virgin Islands 50.0 % Consolidated Trinidad Trinidad 50.0 % Consolidated |
Use of Estimates | Use of Estimates – The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the interim consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents – The Company considers as cash and cash equivalents all cash on deposit, highly liquid investments with a maturity of three months or less at the date of purchase and proceeds due from credit and debit card transactions in the process of settlement. |
Restricted Cash | Restricted Cash – The following table summarizes the restricted cash reported by the Company (in thousands): February 28, August 31, 2021 2020 Short-term restricted cash $ 736 $ 185 Long-term restricted cash 6,864 4,105 Total restricted cash (1) $ 7,600 $ 4,290 (1) Restricted cash consists of cash deposits held within banking institutions to comply with federal regulatory requirements in Costa Rica and Panama. In addition, the Company is required to maintain a certificate of deposit of Trinidad dollars, as measured in U.S. dollars, of approximately $ 3.0 million with one of its lenders as a compensating balance for a $3.0 million U.S. dollar denominated loan payable over several years. The certificate of deposit will be reduced annually commensurate with the loan balance. |
Short-Term Investments | Short-Term Investments – The Company considers as short-term investments certificates of deposit and similar time-based deposits with financial institutions with maturities over three months and up to one year. |
Long-Term Investments | Long-Term Investments – The Company considers as long-term investments certificates of deposit and similar time-based deposits with financial institutions with maturities over one year. |
Goodwill and Other Intangibles, net | Goodwill and Other Intangibles, net – Goodwill and other intangibles totaled $ 54.1 million as of February 28, 2021 and $ 55.4 million as of August 31, 2020 . The Company reviews reported goodwill and other intangibles at the cash-generating unit level for impairment. The Company tests goodwill for impairment at least annually or when events or changes in circumstances indicate that it is more likely than not that the asset is impaired. |
Receivables | Receivables – Receivables consist primarily of credit card receivables and receivables from vendors and are stated net of allowances for credit losses. The determination of the allowance for credit losses is based on the Company’s assessment of collectability along with the consideration of current and expected market conditions that could impact collectability. |
Tax Receivables | Tax Receivables – The Company pays Value Added Tax (“VAT”) or similar taxes, income taxes, and other taxes within the normal course of business in most of the countries in which it operates related to the procurement of merchandise and/or services the Company acquires and/or on sales and taxable income. VAT is a form of indirect tax applied to the value added at each stage of production (primary, manufacturing, wholesale and retail). This tax is similar to, but operates somewhat differently than, sales tax paid in the United States. The Company generally collects VAT from its members upon sale of goods and services and pays VAT to its vendors upon purchase of goods and services. Periodically, the Company submits VAT reports to governmental agencies and reconciles the VAT paid and VAT received. The net overpaid VAT may be refunded or applied to subsequent returns, and the net underpaid VAT must be remitted to the government. With respect to income taxes paid, if the estimated income taxes paid or withheld exceed the actual income tax due this creates an income tax receivable. In most countries where the Company operates, the governments have implemented additional collection procedures, such as requiring credit card processors to remit a portion of sales processed via credit and debit cards directly to the government as advance payments of VAT and/or income tax. This collection mechanism generally leaves the Company with net VAT and/or income tax receivables, forcing the Company to process significant refund claims on a recurring basis. These refund or offset processes can take anywhere from several months to several years to complete. In most countries where the Company operates, there are defined and structured processes to recover VAT receivables via refunds or offsets. However, in one country without a clearly defined refund process, the Company is actively engaged with the local government to recover VAT receivables totaling $ 8.7 million and $ 7.0 million as of February 28, 2021 and August 31, 2020, respectively. In two other countries, there have been changes in the method of computing minimum tax payments, under which the governments have sought to require the Company to pay taxes based on a percentage of sales rather than taxable income. As a result, the Company has made and may continue to make income tax payments substantially in excess of those it would expect to pay based on taxable income. The Company had income tax receivables of $ 11.0 million and $ 10.4 million and deferred tax assets of $ 3.2 million and $ 2.8 million as of February 28, 2021 and August 31, 2020, respectively, in these countries. While the rules related to refunds of income tax receivables in these countries are either unclear or complex, the Company has not placed any type of allowance on the recoverability of these tax receivables or deferred tax assets, because the Company believes that it is more likely than not that it will ultimately succeed in its refund requests. Similarly, we have not placed any recoverability allowances on tax receivables that arise from payments we are required to make originating from tax assessments that we are appealing, as we believe it is more likely than not that we will ultimately prevail in the related appeals. There can be no assurance, however, that the Company will be successful in recovering all tax receivables or deferred tax assets. The Company’s policy for classification and presentation of VAT receivables, income tax receivables and other tax receivables is as follows: Short-term VAT and Income tax receivables, recorded as Prepaid expenses and other current assets: This classification is used for any countries where the Company’s subsidiary has generally demonstrated the ability to recover the VAT or income tax receivable within one year. The Company also classifies as short-term any approved refunds or credit notes to the extent that the Company expects to receive the refund or use the credit notes within one year. Long-term VAT and Income tax receivables, recorded as Other non-current assets: This classification is used for amounts not approved for refund or credit in countries where the Company’s subsidiary has not demonstrated the ability to obtain refunds within one year and/or for amounts which are subject to outstanding disputes. An allowance is provided against VAT and income tax receivable balances in dispute when the Company does not expect to eventually prevail in its recovery. The Company does not currently have any allowances provided against VAT and income tax receivables. The following table summarizes the VAT receivables reported by the Company (in thousands): February 28, August 31, 2021 2020 Prepaid expenses and other current assets $ 2,023 $ 1,749 Other non-current assets 27,493 25,851 Total amount of VAT receivables reported $ 29,516 $ 27,600 The following table summarizes the Income tax receivables reported by the Company (in thousands): February 28, August 31, 2021 2020 Prepaid expenses and other current assets $ 8,896 $ 10,944 Other non-current assets 19,630 20,116 Total amount of income tax receivables reported $ 28,526 $ 31,060 |
Lease Accounting | Lease Accounting – The Company’s leases are operating leases for warehouse clubs and non-warehouse club facilities such as corporate headquarters, regional offices, and regional distribution centers. The Company determines if an arrangement is a lease and classifies it as either a finance or operating lease at lease inception. Operating leases are included in Operating lease right-of-use assets, net ; Operating lease liabilities, current portion ; and Long-term operating lease liabilities on the consolidated balance sheets. The Company does not have finance leases. Operating lease liabilities are recognized at commencement date based on the present value of the future minimum lease payments over the lease term. The Company’s leases generally do not have a readily determinable implicit rate; therefore, the Company uses a collateralized incremental borrowing rate at the commencement date in determining the present value of future payments. The incremental borrowing rate is based on a yield curve derived from publicly traded bond offerings for companies with credit characteristics that approximate the Company's market risk profile. In addition, we adjust the incremental borrowing rate for jurisdictional risk derived from quoted interest rates from financial institutions to reflect the cost of borrowing in the Company’s local markets. The Company’s lease terms may include options to purchase, extend or terminate the lease, which are recognized when it is reasonably certain that the Company will exercise that option. T he Company does not combine lease and non-lease components. The Company measures Right-of-use (“ROU”) assets based on the corresponding lease liabilities, adjusted for any initial direct costs and prepaid lease payments made to the lessor before or at the commencement date (net of lease incentives). The lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Variable lease payments are not included in the calculation of the ROU asset and the related lease liability and are recognized as this lease expense is incurred. The Company’s variable lease payments generally relate to amounts the Company pays for additional contingent rent based on a contractually stipulated percentage of sales. |
Merchandise Inventories | Merchandise Inventories – Merchandise inventories, which include merchandise for resale, are valued at the lower of cost (average cost) or net realizable value. The Company provides for estimated inventory losses and obsolescence based on a percentage of sales. The provision is adjusted every reporting period to reflect the trend of actual physical inventory and cycle count results. In addition, the Company may be required to take markdowns below the carrying cost of certain inventory to expedite the sale of such merchandise. |
Stock Based Compensation | Stock Based Compensation – The Company utilizes three types of equity awards: restricted stock awards (“RSAs”), restricted stock units (“RSUs”) and performance-based restricted stock units (“PSUs”). Compensation related to RSAs, RSUs and PSUs is based on the fair market value at the time of grant. The Company recognizes the compensation cost related to RSAs and RSUs over the requisite service period as determined by the grant, amortized ratably or on a straight-line basis over the life of the grant. The Company also recognizes compensation cost for PSUs over the performance period of each tranche, adjusting this cost based on the Company’s estimate of the probability that performance metrics will be achieved. If the Company determines that an award is unlikely to vest, any previously recorded expense is then reversed. The Company accounts for actual forfeitures as they occur. The Company records the tax savings resulting from tax deductions in excess of expense for stock-based compensation and the tax deficiency resulting from stock-based compensation in excess of the related tax deduction as income tax expense or benefit. In addition, the Company reflects the tax savings (deficiency) resulting from the taxation of stock-based compensation as an operating cash flow in its consolidated statement of cash flows. RSAs are outstanding shares of common stock and have the same cash dividend and voting rights as other shares of common stock. Shares of common stock subject to RSUs are not issued nor outstanding until vested, and RSUs do not have the same dividend and voting rights as common stock. However, all outstanding RSUs have accompanying dividend equivalents, requiring payment to the employees and directors with unvested RSUs of amounts equal to the dividend they would have received had the shares of common stock underlying the RSUs been actually issued and outstanding. Payments of dividend equivalents to employees are recorded as compensation expense. PSUs, similar to RSUs, are awarded with dividend equivalents, provided that such amounts become payable only if the performance metric is achieved. At the time the Compensation Committee confirms the performance metric has been achieved, the accrued dividend equivalents are paid on the PSUs. |
Treasury Stock | Treasury Stock – Shares of common stock repurchased by the Company are recorded at cost as treasury stock and result in the reduction of stockholders’ equity in the Company’s consolidated balance sheets. The Company may reissue these treasury shares as part of its stock-based compensation programs. When treasury shares are reissued, the Company uses the first in/first out (“FIFO”) cost method for determining cost of the reissued shares. If the issuance price is higher than the cost, the excess of the issuance price over the cost is credited to additional paid-in capital (“APIC”). If the issuance price is lower than the cost, the difference is first charged against any credit balance in APIC from treasury stock and the balance is charged to retained earnings. During the six months ended February 28, 2021, the Company reissued approximately 96,400 treasury shares. |
Fair Value Measurements | Fair Value Measurements – The Company measures the fair value for all financial and nonfinancial assets and liabilities that are recognized or disclosed at fair value in the consolidated financial statements on a recurring or nonrecurring basis. The fair value of an asset is the price at which the asset could be sold in an orderly transaction between unrelated, knowledgeable and willing parties able to engage in the transaction. A liability’s fair value is defined as the amount that would be paid to transfer the liability to a new obligor in a transaction between such parties, not the amount that would be paid to settle the liability with the creditor. The Company has established a three-tier fair value hierarchy, which prioritizes the inputs used in measuring and revaluing fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The Company was not required to revalue any assets or liabilities utilizing Level 1 or Level 3 inputs at the balance sheet dates. The Company's Level 2 assets and liabilities revalued at the balance sheet dates, on a recurring basis, consisted of cash flow hedges (interest rate swaps and cross-currency interest rate swaps) and forward foreign exchange contracts. In addition, the Company utilizes Level 2 inputs in determining the fair value of long-term debt. Non-financial assets and liabilities are revalued and recognized at fair value subsequent to initial recognition when there is evidence of impairment. For the periods reported, no impairment of such non-financial assets was recorded. The Company’s current and long-term financial assets and liabilities have fair values that approximate their carrying values. The Company’s long-term financial liabilities consist of long-term debt, which is recorded on the balance sheet at issuance price and adjusted for any applicable unamortized discounts or premiums and debt issuance costs. There have been no significant changes in fair market value of the Company’s current and long-term financial assets, and there have been no material changes to the valuation techniques utilized in the fair value measurement of assets and liabilities disclosed in the Company’s 2020 Annual Report on Form 10-K. |
Derivatives Instruments and Hedging Activities | Derivatives Instruments and Hedging Activities – The Company uses derivative financial instruments for hedging and non-trading purposes to manage its exposure to changes in interest and currency exchange rates. In using derivative financial instruments for the purpose of hedging the Company’s exposure to interest and currency exchange rate risks, the contractual terms of a hedged instrument closely mirror those of the hedged item and are intended to provide a high degree of risk reduction and correlation. Contracts that are effective at meeting the risk reduction and correlation criteria (effective hedge) are recorded using hedge accounting. If a derivative financial instrument is an effective hedge, changes in the fair value of the instrument will be reported in accumulated other comprehensive loss until the hedged item completes its contractual term. Instruments that do not meet the criteria for hedge accounting, or contracts for which the Company has not elected hedge accounting, are valued at fair value with unrealized gains or losses reported in earnings during the period of the change. The Company did not change valuation techniques utilized in the fair value measurement of assets and liabilities presented on the Company’s consolidated balance sheets from previous practice during the reporting period. The Company seeks to manage counterparty risk associated with these contracts by limiting transactions to counterparties with which the Company has an established banking relationship. There can be no assurance, however, that this practice effectively mitigates counterparty risk. Cash Flow Instruments. The Company is a party to receive floating interest rate, pay fixed-rate interest rate swaps to hedge the interest rate risk of certain U.S. dollar denominated debt within its international subsidiaries. The swaps are designated as cash flow hedges of interest expense risk. These instruments are considered effective hedges and are recorded using hedge accounting. The Company is also a party to receive variable interest rate, pay fixed interest rate cross-currency interest rate swaps to hedge the interest rate and currency exposure associated with the expected payments of principal and interest of U.S. denominated debt within its international subsidiaries whose functional currency is other than the U.S. dollar. The swaps are designated as cash flow hedges of the currency risk and interest-rate risk related to payments on the U.S. denominated debt. These instruments are also considered to be effective hedges and are recorded using hedge accounting. Under cash flow hedging, the entire gain or loss of the derivative, calculated as the net present value of the future cash flows, is reported on the consolidated balance sheets in accumulated other comprehensive loss. Amounts recorded in accumulated other comprehensive loss are released to earnings in the same period that the hedged transaction impacts consolidated earnings. Refer to “Note 8 - Derivative Instruments and Hedging Activities” for information on the fair value of interest rate swaps and cross-currency interest rate swaps as of February 28, 2021 and August 31, 2020. Fair Value Instruments. The Company is exposed to foreign currency exchange rate fluctuations in the normal course of business. This includes exposure to foreign currency exchange rate fluctuations on U.S. dollar denominated liabilities within the Company’s international subsidiaries whose functional currency is other than the U.S. dollar. The Company manages these fluctuations, in part, through the use of non-deliverable forward foreign-exchange contracts that are intended to offset changes in cash flows attributable to currency exchange movements. The contracts are intended primarily to economically address exposure to U.S. dollar merchandise inventory expenditures made by the Company’s international subsidiaries whose functional currency is other than the U.S. dollar. Currently, these contracts are treated for accounting purposes as fair value instruments and do not qualify for derivative hedge accounting, and as such the Company does not apply derivative hedge accounting to record these transactions. As a result, these contracts are valued at fair value with unrealized gains or losses reported in earnings during the period of the change. The Company seeks to mitigate foreign currency exchange-rate risk with the use of these contracts and does not intend to engage in speculative transactions. These contracts do not contain any credit-risk-related contingent features and are limited to less than one year in duration. Other Instruments. Other derivatives not designated as hedging instruments consist primarily of written call options in which the Company receives a premium that it uses to reduce the costs associated with its hedging activities. For derivative instruments not designated as hedging instruments, the Company recognizes changes in fair value of the derivative instrument, as well as the offsetting change in the fair value of the hedged item, in Other expense, net in the consolidated statements of income in the period of change. |
Revenue Recognition | Revenue Recognition – The accounting policies and other disclosures such as the disclosure of disaggregated revenues are described in “Note 3 – Revenue Recognition.” |
Insurance Reimbursements | Insurance Reimbursements – Receipts from insurance reimbursements up to the amount of the losses recognized are considered recoveries. These recoveries are accounted for when they are probable of receipt. Insurance recoveries are not recognized prior to the recognition of the related cost. Anticipated proceeds in excess of the amount of loss recognized are considered gains and are subject to gain contingency guidance. Anticipated proceeds in excess of a loss recognized in the financial statements are not recognized until all contingencies related to the insurance claim are resolved. |
Cost of Goods Sold | Cost of Goods Sold – The Company includes the cost of merchandise, food service and bakery raw materials in cost of goods sold, net merchandise sales. The Company also includes in cost of goods sold: net merchandise sales the external and internal distribution and handling costs for supplying merchandise, raw materials and supplies to the warehouse clubs, and, when applicable, costs of shipping to members. External costs include inbound freight, duties, drayage, fees, insurance, and non-recoverable value-added tax related to inventory shrink, spoilage and damage. Internal costs include payroll and related costs, utilities, consumable supplies, repair and maintenance, rent expense and building and equipment depreciation at the Company's distribution facilities and payroll and other direct costs for in-club demonstrations. For export sales, the Company includes the cost of merchandise and external and internal distribution and handling costs for supplying merchandise in cost of goods sold, exports. For the marketplace and casillero operations, the Company includes the costs of external and internal shipping, handling and other direct costs incurred to provide delivery, insurance and customs processing services in cost of goods sold, non-merchandise. Vendor consideration consists primarily of volume rebates, time-limited product promotions, cooperative marketing efforts, digital advertising, slotting fees, demonstration reimbursements and prompt payment discounts. Volume rebates that are not threshold based are incorporated into the unit cost of merchandise reducing the inventory cost and cost of goods sold. Volume rebates that are threshold based are recorded as a reduction to cost of goods sold when the Company achieves established purchase levels that are confirmed by the vendor in writing or upon receipt of funds. On a quarterly basis, the Company calculates the amount of rebates recorded in cost of goods sold that relates to inventory on hand and this amount is reclassified as a reduction to inventory, if significant. Cooperative marketing efforts and digital advertising are related to consideration received by the Company from vendors for non-distinct online advertising services on the Company’s website and social media platforms. Slotting fees are related to consideration received by the Company from vendors for preferential "end cap" placement of the vendor's products within the warehouse club. Demonstration reimbursements are related to consideration received by the Company from vendors for the in-club promotion of the vendors' products. The Company records the reduction in cost of goods sold on a transactional basis for these programs. Prompt payment discounts are taken in substantially all cases and therefore are applied directly to reduce the acquisition cost of the related inventory, with the resulting effect recorded to cost of goods sold when the inventory is sold. |
Selling, General and Administrative | Selling, General and Administrative – Selling, general and administrative costs consist primarily of expenses associated with operating warehouse clubs and freight forwarding operations. These costs include payroll and related costs, utilities, consumable supplies, repair and maintenance, rent expense, building and equipment depreciation, bank, credit card processing fees, and amortization of intangibles. Also included in selling, general and administrative expenses are the payroll and related costs for the Company’s U.S. and regional management and purchasing centers. |
Pre-Opening Costs | Pre-Opening Costs – The Company expenses pre-opening costs (the costs of start-up activities, including organization costs and rent) for new warehouse clubs as incurred. |
Contingencies and Litigation | Contingencies and Litigation – The Company records and reserves for loss contingencies if (a) information available prior to issuance of the consolidated financial statements indicates that it is probable that an asset had been impaired or a liability had been incurred at the date of the consolidated financial statements and (b) the amount of loss can be reasonably estimated. If one or both criteria for accrual are not met, but there is at least a reasonable possibility that a material loss will occur, the Company does not record and reserve for a loss contingency but describes the contingency within a note and provides detail, when possible, of the estimated potential loss or range of loss. If an estimate cannot be made, a statement to that effect is made. |
Foreign Currency Translation | Foreign Currency Translation – The assets and liabilities of the Company’s foreign operations are translated to U.S. dollars when the functional currency in the Company’s international subsidiaries is the local currency and not U.S. dollars. Assets and liabilities of these foreign subsidiaries are translated to U.S. dollars at the exchange rate on the balance sheet date, and revenue, costs and expenses are translated at average rates of exchange in effect during the period. The corresponding translation gains and losses are recorded as a component of accumulated other comprehensive income or loss. These adjustments will affect net income upon the sale or liquidation of the underlying investment. The following table discloses the net effect of translation into the reporting currency on other comprehensive loss for these local currency denominated accounts for the three and six months ended February 28, 2021 and February 29, 2020 (in thousands): Three Months Ended Six Months Ended February 28, February 29, February 28, February 29, 2021 2020 2021 2020 Effect on other comprehensive income/(loss) due to foreign currency translation $ ( 2,331 ) $ ( 3,384 ) $ 430 $ ( 7,107 ) Monetary assets and liabilities denominated in currencies other than the functional currency of the respective entity (primarily U.S. dollars) are revalued to the functional currency using the exchange rate on the balance sheet date. These foreign exchange transaction gains (losses), including transactions recorded involving these monetary assets and liabilities, are recorded as Other income (expense) in the consolidated statements of income (in thousands): Three Months Ended Six Months Ended February 28, February 29, February 28, February 29, 2021 2020 2021 2020 Currency gain (loss) $ ( 238 ) $ 755 $ ( 1,731 ) $ ( 902 ) |
Recent Accounting Pronouncements - Not Yet Adopted | Recent Accounting Pronouncements – Not Yet Adopted FASB ASC 740 ASU 2019-12—Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes. ASU No. 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. The ASU is effective for annual periods beginning after December 15, 2020. Early adoption is permitted. The Company expects to adopt ASU No. 2019-12 on September 1, 2021, the first quarter of fiscal year 2022. The Company is currently evaluating the impact adoption of this guidance may have on the Company’s consolidated financial statements. |
Recent Accounting Pronouncements Adopted | Recent Accounting Pronouncements Adopted FASB ASC 848 ASU 2020-04—Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting In March 2020, the FASB issued ASU No. 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU No. 2020-04 provides optional expedients and exceptions, if certain criteria are met, for a limited period of time to ease the potential burden in accounting for contracts, hedging relationships, and other transactions affected by reference rate reform. This accounting standards update is intended to ease the process of migrating away from LIBOR to new reference rates. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848). The amendments in this ASU refine the scope of ASC 848 and clarifies some of its guidance as it relates to recent rate reform activities. A substantial number of the Company’s debt agreements and hedging relationships bear interest at variable interest rates, primarily based on USD-LIBOR. To preserve the presentation of the Company’s debt and derivatives, the Company adopted ASU 2020-04 and ASU 2021-01 effective December 1, 2020, on a prospective basis. The Company has elected to apply the contract modification expedient and the hedge accounting expedients related to critical terms, probability of forecasted transactions, and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. The adoption of, and future elections under ASU 2020-04 and ASU 2021-01, did not and are not expected to have a material impact on the Company’s accounting policies or consolidated financial statements. We will continue to monitor the impact the discontinuance of LIBOR will have on the Company’s contracts, hedging relationships and other transactions. FASB ASC 350 ASU 2018-15 – Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. ASU No. 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). As such, the amendment in this ASU requires an entity (customer) in a hosting arrangement that is a service contract to follow the guidance in subtopic 350-40 in order to determine which implementation costs to capitalize as an asset and which costs to expense. Additionally, the amendments in this ASU require the entity to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. The amendments in this ASU are effective for annual periods beginning after December 15, 2019 and interim periods within those annual periods. The Company adopted ASU No. 2018-15 on a prospective basis on September 1, 2020, the first quarter of fiscal year 2021. Adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. FASB ASC 820 ASU 2018-13 – Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820). The standard eliminates such disclosures as the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy. ASU No. 2018-13 adds new disclosure requirements for Level 3 measurements. The amendments in this ASU are effective for annual periods beginning after December 15, 2019. The Company adopted ASU No. 2018-13 on a prospective basis on September 1, 2020, the first quarter of fiscal year 2021. Adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. FASB ASC 350 ASU 2017-04 – Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The amendments in this ASU modify the concept of impairment from the condition that exists when the carrying amount of a reporting unit exceeds its fair value. An entity no longer will determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Under this ASU, entities should now calculate any goodwill impairment by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge to the goodwill for the amount by which the carrying amount exceeds the reporting unit's fair value. The amendments in this ASU are effective for annual periods beginning after December 15, 2019. The Company adopted ASU No. 2017-04 on a prospective basis on September 1, 2020, the first quarter of fiscal year 2021. Adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. FASB ASC 326 ASU 2016-13 – Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments (Topic 326), which amends the FASB’s guidance on the impairment of financial instruments. In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments to clarify and address certain items related to the amendments in ASU 2016-13. These amendments require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The amendments are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company adopted the amendments on a prospective basis on September 1, 2020, the first quarter of fiscal year 2021. Adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. There were no other new accounting standards that had a material impact on the Company’s consolidated financial statements during the three and six month periods ended February 28, 2021, and there were no other new accounting standards or pronouncements that were issued but not yet effective as of February 28, 2021 that the Company expects to have a material impact on its consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Summary of Restricted Cash | February 28, August 31, 2021 2020 Short-term restricted cash $ 736 $ 185 Long-term restricted cash 6,864 4,105 Total restricted cash (1) $ 7,600 $ 4,290 (1) Restricted cash consists of cash deposits held within banking institutions to comply with federal regulatory requirements in Costa Rica and Panama. In addition, the Company is required to maintain a certificate of deposit of Trinidad dollars, as measured in U.S. dollars, of approximately $ 3.0 million with one of its lenders as a compensating balance for a $3.0 million U.S. dollar denominated loan payable over several years. The certificate of deposit will be reduced annually commensurate with the loan balance. |
Summary of Value Added Tax Receivables | February 28, August 31, 2021 2020 Prepaid expenses and other current assets $ 2,023 $ 1,749 Other non-current assets 27,493 25,851 Total amount of VAT receivables reported $ 29,516 $ 27,600 |
Summary of Income Tax Receivables | February 28, August 31, 2021 2020 Prepaid expenses and other current assets $ 8,896 $ 10,944 Other non-current assets 19,630 20,116 Total amount of income tax receivables reported $ 28,526 $ 31,060 |
Net Effect of Foreign Currency Translation | Three Months Ended Six Months Ended February 28, February 29, February 28, February 29, 2021 2020 2021 2020 Effect on other comprehensive income/(loss) due to foreign currency translation $ ( 2,331 ) $ ( 3,384 ) $ 430 $ ( 7,107 ) |
Summary of Foreign Currency Gains (Losses) | Three Months Ended Six Months Ended February 28, February 29, February 28, February 29, 2021 2020 2021 2020 Currency gain (loss) $ ( 238 ) $ 755 $ ( 1,731 ) $ ( 902 ) |
Real Estate Development [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Schedule of Joint Ventures | Real Estate Development Joint Ventures Countries Ownership Basis of Presentation GolfPark Plaza, S.A. Panama 50.0 % Equity (1) Price Plaza Alajuela PPA, S.A. Costa Rica 50.0 % Equity (1) (1) Joint venture interests are recorded as investment in unconsolidated affiliates on the consolidated balance sheets. |
Marketplace And Casillero Store Front [Member] | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Schedule of Joint Ventures | Marketplace and Casillero Store-front Joint Ventures Countries Ownership Basis of Presentation Guatemala Guatemala 60.0 % Consolidated Tortola British Virgin Islands 50.0 % Consolidated Trinidad Trinidad 50.0 % Consolidated |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
REVENUE RECOGNITION [Abstract] | |
Contract Performance Liabilities | Contract Liabilities February 28, 2021 August 31, 2020 Deferred membership income $ 27,324 $ 23,051 Other contract performance liabilities $ 11,175 $ 5,190 |
Disaggregated Revenues | Three Months Ended Six Months Ended February 28, 2021 February 29, 2020 February 28, 2021 February 29, 2020 Foods & Sundries $ 448,751 $ 438,345 $ 867,127 $ 831,150 Fresh Foods 257,505 241,317 492,794 456,555 Hardlines 110,712 100,419 223,496 191,422 Softlines 46,935 49,904 87,264 90,263 Other Business 34,501 41,741 66,092 81,064 Net Merchandise Sales $ 898,404 $ 871,726 $ 1,736,773 $ 1,650,454 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
EARNINGS PER SHARE [Abstract] | |
Schedule of the Computation of Net Income Per Share | Three Months Ended Six Months Ended February 28, February 29, February 28, February 29, 2021 2020 2021 2020 Net income attributable to PriceSmart, Inc. $ 28,236 $ 25,600 $ 55,973 $ 45,328 Less: Allocation of income to unvested stockholders ( 117 ) ( 64 ) ( 580 ) ( 339 ) Net income attributable to PriceSmart, Inc. per share available for distribution $ 28,119 $ 25,536 $ 55,393 $ 44,989 Basic weighted average shares outstanding 30,376 30,255 30,387 30,266 Add dilutive effect of performance stock units (two-class method) 28 3 25 5 Diluted average shares outstanding 30,404 30,258 30,412 30,271 Basic net income per share $ 0.92 $ 0.85 $ 1.82 $ 1.49 Diluted net income per share $ 0.92 $ 0.85 $ 1.82 $ 1.49 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
STOCKHOLDERS' EQUITY [Abstract] | |
Schedule of Dividends | First Payment Second Payment Declared Amount Record Date Date Paid Date Payable Amount Record Date Date Paid Date Payable Amount 2/4/2021 $ 0.70 2/15/2021 2/26/2021 N/A $ 0.35 8/15/2021 N/A 8/31/2021 $ 0.35 2/6/2020 $ 0.70 2/15/2020 2/28/2020 N/A $ 0.35 8/15/2020 8/31/2020 N/A $ 0.35 |
Schedule of Components of Other Comprehensive Income (Loss) | Attributable to Noncontrolling PriceSmart Interests Total Beginning balance, September 1, 2020 $ ( 176,820 ) $ 134 $ ( 176,686 ) Foreign currency translation adjustments 430 58 488 Defined benefit pension plans (1) 128 — 128 Derivative instruments (2) 1,484 — 1,484 Ending balance, February 28, 2021 $ ( 174,778 ) $ 192 $ ( 174,586 ) Attributable to Noncontrolling PriceSmart Interests Total Beginning balance, September 1, 2019 $ ( 144,339 ) $ 20 $ ( 144,319 ) Foreign currency translation adjustments ( 7,107 ) 55 ( 7,052 ) Defined benefit pension plans (1) 50 — 50 Derivative Instruments (2) ( 1,177 ) — ( 1,177 ) Ending balance, February 29, 2020 $ ( 152,573 ) $ 75 $ ( 152,498 ) Attributable to Noncontrolling PriceSmart Interests Total Beginning balance, September 1, 2019 $ ( 144,339 ) $ 20 $ ( 144,319 ) Foreign currency translation adjustments ( 29,413 ) 114 ( 29,299 ) Defined benefit pension plans (1) ( 79 ) — ( 79 ) Derivative Instruments (2) ( 5,803 ) — ( 5,803 ) Amounts reclassified from accumulated other comprehensive loss 2,814 — 2,814 Ending balance, August 31, 2020 $ ( 176,820 ) $ 134 $ ( 176,686 ) (1) Amounts reclassified from accumulated other comprehensive income (loss) related to the minimum pension liability are included in warehouse club and other operations in the Company's consolidated statements of income. (2) Refer to Note 8 - Derivative Instruments and Hedging Activities. |
Summary of Retained Earnings Not Available for Distribution | February 28, August 31, 2021 2020 Retained earnings not available for distribution $ 9,218 $ 8,726 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Schedule of Variable Interest Entities Maximum Loss Exposure | Entity % Ownership Initial Investment Additional Investments Net Income Inception to Date Company’s Variable Interest in Entity Commitment to Future Additional Investments (1) Company's Maximum Exposure to Loss in Entity (2) GolfPark Plaza, S.A. 50 % $ 4,616 $ 2,402 $ 41 $ 7,059 $ 99 $ 7,158 Price Plaza Alajuela PPA, S.A. 50 % 2,193 1,236 94 3,523 785 4,308 Total $ 6,809 $ 3,638 $ 135 $ 10,582 $ 884 $ 11,466 (1) The parties intend to seek alternate financing for the project, which could reduce the amount of investments each party would be required to provide. The parties may mutually agree on changes to the project, which could increase or decrease the amount of contributions each party is required to provide. (2) The maximum exposure is determined by adding the Company’s variable interest in the entity and any explicit or implicit arrangements that could require the Company to provide additional financial support. |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
DEBT [Abstract] | |
Schedule of Short-Term Borrowings | Facilities Used Total Amount Short-term Letters of Facilities Weighted average of Facilities Borrowings Credit Available interest rate February 28, 2021 $ 131,000 $ 23,067 $ 259 $ 107,674 2.2 % August 31, 2020 $ 81,210 $ 65,143 $ 388 $ 15,679 3.7 % |
Summary of Changes in Long-Term Debt | (Amounts in thousands) Current portion of long-term debt Long-term debt (net of current portion) Total Balances as of August 31, 2020 $ 19,437 $ 112,610 $ 132,047 (1) Proceeds from long-term debt incurred during the period: Trinidad subsidiary 547 2,453 3,000 Regularly scheduled loan payments ( 650 ) ( 7,817 ) ( 8,467 ) Reclassifications of long-term debt due in the next 12 months 1,058 ( 1,058 ) — Translation adjustments on foreign currency debt of subsidiaries whose functional currency is not the U.S. dollar (2) 14 ( 28 ) ( 14 ) Balances as of February 28, 2021 $ 20,406 $ 106,160 $ 126,566 (3) (1) The carrying amount of non-cash assets assigned as collateral for these loans was $ 158.6 million. No cash assets were assigned as collateral for these loans. (2) These foreign currency translation adjustments are recorded within Other comprehensive loss. (3) The carrying amount of cash and non-cash assets assigned as collateral for these loans was $ 3.0 million and $ 149.3 million, respectively. |
Schedule of Annual Maturities of Long-Term Debt | Twelve Months Ended February 28, Amount 2022 $ 20,406 2023 21,046 2024 17,079 2025 26,754 2026 4,476 Thereafter 36,805 Total $ 126,566 |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
Derivative [Line Items] | |
Schedule of Interest Rate Derivatives | Subsidiary Date Entered into Derivative Financial Counter- party Derivative Financial Instruments Initial US$ Notional Amount Bank US$ loan Held with Floating Leg (swap counter-party) Fixed Rate for PSMT Subsidiary Settlement Dates Effective Period of swap Colombia 3-Dec-19 Citibank, N.A. ("Citi") Cross currency interest rate swap $ 7,875,000 Citibank, N.A. Variable rate 3-month Libor plus 2.45 % 7.87 % 3rd day of each December, March, June, and September, beginning on March 3, 2020 December 3, 2019 - December 3, 2024 Colombia 27-Nov-19 Citibank, N.A. ("Citi") Cross currency interest rate swap $ 25,000,000 Citibank, N.A. Variable rate 3-month Libor plus 2.45 % 7.93 % 27th day of each November, February, May and August beginning February 27, 2020 November 27, 2019 - November 27, 2024 Colombia 24-Sep-19 Citibank, N.A. ("Citi") Cross currency interest rate swap $ 12,500,000 PriceSmart, Inc. Variable rate 3-month Libor plus 2.50 % 7.09 % 24th day of each December, March, June and September beginning December 24, 2019 September 24, 2019 - September 26, 2022 Panama 25-Jun-18 Bank of Nova Scotia ("Scotiabank") Interest rate swap $ 14,625,000 Bank of Nova Scotia Variable rate 3-month Libor plus 3.0 % 5.99 % 23rd day of each month beginning on July 23, 2018 June 25, 2018 - March 23, 2023 Honduras 26-Feb-18 Citibank, N.A. ("Citi") Cross currency interest rate swap $ 13,500,000 Citibank, N.A. Variable rate 3-month Libor plus 3.00 % 9.75 % 29th day of May, August, November and February beginning May 29, 2018 February 26, 2018 - February 24, 2024 PriceSmart, Inc 7-Nov-16 MUFG Union Bank, N.A. ("Union Bank") Interest rate swap $ 35,700,000 Union Bank Variable rate 1-month Libor plus 1.7 % 3.65 % 1st day of each month beginning on April 1, 2017 March 1, 2017 - March 1, 2027 |
Schedule of Notional Amounts of Outstanding Derivative Positions | Notional Amount as of February 28, August 31, Floating Rate Payer (Swap Counterparty) 2021 2020 Union Bank $ 33,256 $ 33,894 Citibank N.A. 53,371 55,086 Scotiabank 10,875 11,625 Total $ 97,502 $ 100,605 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | February 28, 2021 August 31, 2020 Derivatives designated as cash flow hedging instruments Balance Sheet Classification Fair Value Net Tax Effect Net OCI Fair Value Net Tax Effect Net OCI Cross-currency interest rate swaps Other non-current assets $ 228 $ ( 69 ) $ 159 $ 872 $ ( 265 ) $ 607 Interest rate swaps Other long-term liabilities ( 2,517 ) 591 ( 1,926 ) ( 3,857 ) 898 ( 2,959 ) Cross-currency interest rate swaps Other long-term liabilities ( 1,195 ) 360 ( 835 ) ( 828 ) 248 ( 580 ) Net fair value of derivatives designated as hedging instruments $ ( 3,484 ) $ 882 $ ( 2,602 ) $ ( 3,813 ) $ 881 $ ( 2,932 ) |
Derivative Swaps [Member] | Cash Flow Hedging [Member] | Interest Expense [Member] | |
Derivative [Line Items] | |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | Income Statement Classification Interest expense on borrowings (1) Cost of swaps (2) Total Interest expense for the three months ended February 28, 2021 $ 676 $ 953 $ 1,629 Interest expense for the three months ended February 29, 2020 $ 1,206 $ 596 $ 1,802 Interest expense for the six months ended February 28, 2021 $ 1,360 $ 1,878 $ 3,238 Interest expense for the six months ended February 29, 2020 $ 2,219 $ 857 $ 3,076 (1) This amount is representative of the interest expense recognized on the underlying hedged transactions. (2) This amount is representative of the interest expense recognized on the interest rate swaps and cross-currency swaps designated as cash flow hedging instruments. |
Not Designated as Hedging Instrument [Member] | Other Instruments [Member] | |
Derivative [Line Items] | |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | Three Months Ended Six Months Ended February 28, February 29, February 28, February 29, Income Statement Classification 2021 2020 2021 2020 Other income (expense), net $ — $ 358 $ — $ ( 912 ) |
SEGMENTS (Tables)
SEGMENTS (Tables) | 6 Months Ended |
Feb. 28, 2021 | |
SEGMENTS [Abstract] | |
Summary of Segment Revenues, Operating Costs and Balance Sheet Items | United States Operations Central American Operations Caribbean Operations (1) Colombia Operations Reconciling Items (2) Total Three Months Ended February 28, 2021 Revenue from external customers $ 22,768 $ 541,000 $ 260,169 $ 113,632 — $ 937,569 Intersegment revenues 296,255 3,801 1,124 850 ( 302,030 ) — Depreciation, Property and equipment 1,784 7,683 3,858 2,362 — 15,687 Amortization, Intangibles 593 — — — — 593 Operating income (loss) 2,028 40,362 20,766 6,439 ( 24,616 ) 44,979 Net income (loss) attributable to PriceSmart, Inc. ( 1,545 ) 32,309 17,480 4,699 ( 24,707 ) 28,236 Capital expenditures, net 1,500 14,066 5,804 7,007 — 28,377 Six Months Ended February 28, 2021 Revenue from external customers $ 46,385 $ 1,035,692 $ 518,685 $ 214,239 $ — $ 1,815,001 Intersegment revenues 646,358 8,537 2,270 1,979 ( 659,144 ) — Depreciation, Property and equipment 3,449 15,377 7,650 4,097 — 30,573 Amortization, Intangibles 1,192 — — — — 1,192 Operating income (loss) 7,771 74,807 42,359 12,004 ( 47,431 ) 89,510 Net income (loss) attributable to PriceSmart, Inc. ( 1,917 ) 61,547 34,650 9,295 ( 47,602 ) 55,973 Long-lived assets (other than deferred tax assets) 80,449 483,729 181,815 162,641 — 908,634 Intangibles, net 8,974 — — — — 8,974 Goodwill 10,695 24,389 10,073 — — 45,157 Total assets 201,726 770,899 430,327 227,884 — 1,630,836 Capital expenditures, net 2,718 21,610 8,262 15,546 — 48,136 Three Months Ended February 29, 2020 Revenue from external customers $ 18,848 $ 522,607 $ 261,683 $ 103,597 $ — $ 906,735 Intersegment revenues 287,362 3,909 860 547 ( 292,678 ) — Depreciation, Property and equipment 1,338 7,568 3,826 1,844 — 14,576 Amortization, Intangibles 599 — — — — 599 Operating income (loss) 1,928 37,667 15,079 5,400 ( 21,265 ) 38,809 Net income (loss) attributable to PriceSmart, Inc. ( 841 ) 30,339 13,810 3,666 ( 21,374 ) 25,600 Capital expenditures, net 3,489 18,128 7,230 4,465 — 33,312 Six Months Ended February 29, 2020 Revenue from external customers $ 36,187 $ 989,409 $ 496,700 $ 196,380 $ — $ 1,718,676 Intersegment revenues 637,312 7,954 2,079 1,083 ( 648,428 ) — Depreciation, Property and equipment 2,687 14,450 7,792 3,861 — 28,790 Amortization, Intangibles 1,198 — — — — 1,198 Operating income (loss) 4,516 69,367 26,889 9,924 ( 41,173 ) 69,523 Net income (loss) attributable to PriceSmart, Inc. ( 1,564 ) 57,091 24,129 6,937 ( 41,265 ) 45,328 Long-lived assets (other than deferred tax assets) 86,306 477,195 187,641 145,981 — 897,123 Intangibles, net 11,378 — — — — 11,378 Goodwill 10,695 24,522 10,196 — — 45,413 Total assets 157,116 723,673 390,000 227,503 — 1,498,292 Capital expenditures, net 4,118 33,371 11,750 25,299 — 74,538 As of August 31, 2020 Long-lived assets (other than deferred tax assets) $ 81,008 $ 475,744 $ 177,166 $ 146,862 $ — $ 880,780 Intangibles, net 10,166 — — — — 10,166 Goodwill 10,696 24,418 10,092 — — 45,206 Total assets 272,190 741,523 395,244 247,868 — 1,656,825 (1) Management considers its club in the U.S. Virgin Islands to be part of its Caribbean operations. (2) The reconciling items reflect the amount eliminated on consolidation of intersegment transactions. |
COMPANY OVERVIEW AND BASIS OF_2
COMPANY OVERVIEW AND BASIS OF PRESENTATION (Narrative) (Details) | Feb. 28, 2022warehouse | Feb. 28, 2021warehousecountry |
Company Overview And Basis Of Presentation [Line Items] | ||
Number of stores | 47 | |
Number of countries | country | 13 | |
Ownership interest | 100.00% | |
Colombia [Member] | ||
Company Overview And Basis Of Presentation [Line Items] | ||
Number of stores | 7 | |
Costa Rica [Member] | ||
Company Overview And Basis Of Presentation [Line Items] | ||
Number of stores | 8 | |
Panama [Member] | ||
Company Overview And Basis Of Presentation [Line Items] | ||
Number of stores | 7 | |
Trinidad [Member] | ||
Company Overview And Basis Of Presentation [Line Items] | ||
Number of stores | 4 | |
Dominican Republic [Member] | ||
Company Overview And Basis Of Presentation [Line Items] | ||
Number of stores | 5 | |
Guatemala [Member] | ||
Company Overview And Basis Of Presentation [Line Items] | ||
Number of stores | 4 | |
Honduras [Member] | ||
Company Overview And Basis Of Presentation [Line Items] | ||
Number of stores | 3 | |
El Salvador [Member] | ||
Company Overview And Basis Of Presentation [Line Items] | ||
Number of stores | 2 | |
Nicaragua [Member] | ||
Company Overview And Basis Of Presentation [Line Items] | ||
Number of stores | 2 | |
Aruba [Member] | ||
Company Overview And Basis Of Presentation [Line Items] | ||
Number of stores | 1 | |
Barbados [Member] | ||
Company Overview And Basis Of Presentation [Line Items] | ||
Number of stores | 1 | |
Jamaica [Member] | ||
Company Overview And Basis Of Presentation [Line Items] | ||
Number of stores | 1 | |
United States Virgin Islands [Member] | ||
Company Overview And Basis Of Presentation [Line Items] | ||
Number of stores | 1 | |
Scenario, Forecast [Member] | ||
Company Overview And Basis Of Presentation [Line Items] | ||
Number of stores | 50 | |
Scenario, Forecast [Member] | Guatemala City, Guatemala and Bucaramanga, Colombia [Member] | ||
Company Overview And Basis Of Presentation [Line Items] | ||
Number of stores | 3 | |
Foreign Countries [Member] | ||
Company Overview And Basis Of Presentation [Line Items] | ||
Number of countries | country | 12 | |
Domestic Territories [Member] | United States Operations [Member] | ||
Company Overview And Basis Of Presentation [Line Items] | ||
Number of countries | country | 1 | |
Aeropost, Inc [Member] | Latin America [Member] | ||
Company Overview And Basis Of Presentation [Line Items] | ||
Number of countries | country | 38 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Goodwill and Other Intangibles) (Narrative) (Details) - USD ($) $ in Millions | Feb. 28, 2021 | Aug. 31, 2020 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||
Goodwill and other intangibles, net | $ 54.1 | $ 55.4 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tax Receivables) (Narrative) (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Aug. 31, 2020 |
Tax Receivables [Line Items] | ||
Value added tax receivable | $ 29,516 | $ 27,600 |
Income taxes receivable | 28,526 | 31,060 |
Unknown Country [Member] | ||
Tax Receivables [Line Items] | ||
Value added tax receivable | 8,700 | 7,000 |
Deferred tax assets, net | 3,200 | 2,800 |
Income taxes receivable | $ 11,000 | $ 10,400 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Stock Based Compensation) (Narrative) (Details) | 6 Months Ended |
Feb. 28, 2021item | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Number of types of equity awards issued | 3 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Treasury Stock) (Narrative) (Details) | 6 Months Ended |
Feb. 28, 2021shares | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Reissued treasury shares | 96,400 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Fair Value Measurements) (Narrative) (Details) | 6 Months Ended |
Feb. 28, 2021USD ($) | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Non-financial asset impairment | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Joint Ventures) (Details) | 6 Months Ended | |
Feb. 28, 2021 | ||
GolfPark Plaza, S.A. [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage Ownership | 50.00% | [1] |
Price Plaza Alajuela PPA, S.A. [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage Ownership | 50.00% | [1] |
Marketplace And Casillero Store Front, Guatemala [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage Ownership | 60.00% | |
Marketplace And Casillero Store Front, Tortola [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage Ownership | 50.00% | |
Marketplace And Casillero Store Front, Trinidad [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage Ownership | 50.00% | |
[1] | Joint venture interests are recorded as investment in unconsolidated affiliates on the consolidated balance sheets. |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Summary of Restricted Cash) (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Aug. 31, 2020 | |
Cash and Cash Equivalents [Line Items] | |||
Short-term restricted cash | $ 736 | $ 185 | |
Long-term restricted cash | [1] | 6,864 | 4,105 |
Total restricted cash | 7,600 | $ 4,290 | |
Certificates of Deposit [Member] | |||
Cash and Cash Equivalents [Line Items] | |||
Total restricted cash | $ 3,000 | ||
[1] | Restricted cash consists of cash deposits held within banking institutions to comply with federal regulatory requirements in Costa Rica and Panama. In addition, the Company is required to maintain a certificate of deposit of Trinidad dollars, as measured in U.S. dollars, of approximately $ 3.0 million with one of its lenders as a compensating balance for a $3.0 million U.S. dollar denominated loan payable over several years. The certificate of deposit will be reduced annually commensurate with the loan balance. |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Summary of Value Added Tax Receivables) (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Aug. 31, 2020 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||
Value Added Tax, Prepaid expenses and other current assets | $ 2,023 | $ 1,749 |
Value Added Tax, Other non-current assets | 27,493 | 25,851 |
Total amount of VAT receivables reported | $ 29,516 | $ 27,600 |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Summary of Income Tax Receivables) (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Aug. 31, 2020 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||
Income Tax Receivable, Prepaid expenses and other current assets | $ 8,896 | $ 10,944 |
Income Tax Receivable, Other non-current assets | 19,630 | 20,116 |
Total amount of income tax receivables reported | $ 28,526 | $ 31,060 |
SUMMARY OF SIGNIFICANT ACCOU_13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Net Effect of Foreign Currency Translation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2021 | Feb. 29, 2020 | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||
Effect on other comprehensive income/(loss) due to foreign currency restatement | [1] | $ (2,331) | $ (3,384) | $ 430 | $ (7,107) |
[1] | Translation adjustments arising in translating the financial statements of a foreign entity have no effect on the income taxes of that foreign entity. They may, however, affect: (a) the amount, measured in the parent entity's reporting currency, of withholding taxes assessed on dividends paid to the parent entity and (b) the amount of taxes assessed on the parent entity by the government of its country. The Company has determined that the reinvestment of earnings of its foreign subsidiaries are indefinite because of the long-term nature of the Company's foreign investment plans. Therefore, deferred taxes are not provided for on translation adjustments related to non-remitted earnings of the Company's foreign subsidiaries. |
SUMMARY OF SIGNIFICANT ACCOU_14
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Summary of Foreign Currency Gains (Losses)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2021 | Feb. 29, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||||
Currency gain (loss) | $ (238) | $ 755 | $ (1,731) | $ (902) |
REVENUE RECOGNITION (Narrative)
REVENUE RECOGNITION (Narrative) (Details) | 6 Months Ended |
Feb. 28, 2021USD ($)country | |
REVENUE RECOGNITION [Abstract] | |
Platinum membership redemption rate | 100.00% |
Annual membership fee | $ 75 |
Platinum membership rebate | 2.00% |
Maximum Platinum annual membership rebate | $ 500 |
Platinum membership recorded liability | 95.00% |
Breakage revenue percent | 5.00% |
Number of countries | country | 13 |
REVENUE RECOGNITION (Contract P
REVENUE RECOGNITION (Contract Performance Liabilities) (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Aug. 31, 2020 |
Deferred Membership Income [Member] | ||
Contract with Customer, Asset and Liability [Line Items] | ||
Contract Liabilities | $ 27,324 | $ 23,051 |
Other Contract Performance Liabilities [Member] | ||
Contract with Customer, Asset and Liability [Line Items] | ||
Contract Liabilities | $ 11,175 | $ 5,190 |
REVENUE RECOGNITION (Disaggrega
REVENUE RECOGNITION (Disaggregated Revenues) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2021 | Feb. 29, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Net Merchandise Sales | $ 898,404 | $ 871,726 | $ 1,736,773 | $ 1,650,454 |
Foods And Sundries [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Merchandise Sales | 448,751 | 438,345 | 867,127 | 831,150 |
Fresh Foods [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Merchandise Sales | 257,505 | 241,317 | 492,794 | 456,555 |
Hardlines [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Merchandise Sales | 110,712 | 100,419 | 223,496 | 191,422 |
Softlines [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Merchandise Sales | 46,935 | 49,904 | 87,264 | 90,263 |
Other Business [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Merchandise Sales | $ 34,501 | $ 41,741 | $ 66,092 | $ 81,064 |
EARNINGS PER SHARE (Schedule of
EARNINGS PER SHARE (Schedule of the Computation of Net Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2021 | Feb. 29, 2020 | |
EARNINGS PER SHARE [Abstract] | ||||
Net income attributable to PriceSmart, Inc. | $ 28,236 | $ 25,600 | $ 55,973 | $ 45,328 |
Less: Allocation of income to unvested stockholders | (117) | (64) | (580) | (339) |
Net income attributable to PriceSmart, Inc. per share available for distribution | $ 28,119 | $ 25,536 | $ 55,393 | $ 44,989 |
Basic weighted average shares outstanding | 30,376 | 30,255 | 30,387 | 30,266 |
Add dilutive effect of performance stock units (two-class method) | 28 | 3 | 25 | 5 |
Diluted average shares outstanding | 30,404 | 30,258 | 30,412 | 30,271 |
Basic net income per share | $ 0.92 | $ 0.85 | $ 1.82 | $ 1.49 |
Diluted net income per share | $ 0.92 | $ 0.85 | $ 1.82 | $ 1.49 |
STOCKHOLDERS' EQUITY (Schedule
STOCKHOLDERS' EQUITY (Schedule of Dividends) (Details) - $ / shares | Feb. 26, 2021 | Feb. 04, 2021 | Aug. 31, 2020 | Feb. 28, 2020 | Feb. 06, 2020 | Feb. 28, 2021 |
2021 Dividend Declared [Member] | ||||||
Dividends Payable [Line Items] | ||||||
Declared | Feb. 4, 2021 | |||||
2021 Dividend Declared [Member] | First Payment [Member] | ||||||
Dividends Payable [Line Items] | ||||||
Amount | $ 0.70 | |||||
Record Date | Feb. 15, 2021 | |||||
Date Paid | Feb. 26, 2021 | |||||
2021 Dividend Declared [Member] | Second Payment [Member] | ||||||
Dividends Payable [Line Items] | ||||||
Record Date | Aug. 15, 2021 | |||||
Date Payable | Aug. 31, 2021 | |||||
Payment Amount | $ 0.35 | $ 0.35 | ||||
2020 Dividend Declared [Member] | ||||||
Dividends Payable [Line Items] | ||||||
Declared | Feb. 6, 2020 | |||||
2020 Dividend Declared [Member] | First Payment [Member] | ||||||
Dividends Payable [Line Items] | ||||||
Amount | $ 0.70 | |||||
Record Date | Feb. 15, 2020 | |||||
Date Paid | Feb. 28, 2020 | |||||
2020 Dividend Declared [Member] | Second Payment [Member] | ||||||
Dividends Payable [Line Items] | ||||||
Record Date | Aug. 15, 2020 | |||||
Date Paid | Aug. 31, 2020 | |||||
Payment Amount | $ 0.35 | $ 0.35 |
STOCKHOLDERS' EQUITY (Schedul_2
STOCKHOLDERS' EQUITY (Schedule of Components of Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2021 | Feb. 29, 2020 | Aug. 31, 2020 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balance, Attributable to PriceSmart | $ 831,719 | |||||
Other comprehensive income (loss), Attributable to PriceSmart | $ (1,093) | $ (5,028) | 2,100 | $ (8,179) | ||
Balance, Attributable to PriceSmart | 874,268 | 874,268 | $ 831,719 | |||
Balance | 867,291 | 817,772 | 832,732 | 798,279 | 798,279 | |
Balance | 875,251 | 818,867 | 875,251 | 818,867 | 832,732 | |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balance, Attributable to PriceSmart | (176,820) | (144,339) | (144,339) | |||
Other comprehensive income (loss), Attributable to PriceSmart | (1,120) | (5,049) | 2,042 | (8,234) | ||
Balance, Attributable to PriceSmart | (174,778) | (152,573) | (174,778) | (152,573) | (176,820) | |
Balance | (173,658) | (147,524) | (176,820) | (144,339) | (144,339) | |
Balance | (174,778) | (152,573) | (174,778) | (152,573) | (176,820) | |
Foreign Currency Translation Adjustments [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss), Attributable to PriceSmart | 430 | (7,107) | (29,413) | |||
Defined Benefit Pension Plans [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss), Attributable to PriceSmart | [1] | 128 | 50 | (79) | ||
Derivative Instruments [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss), Attributable to PriceSmart | [2] | 1,484 | (1,177) | (5,803) | ||
AOCI Attributable to Noncontrolling Interest [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balance | 134 | 20 | 20 | |||
Balance | 192 | 75 | 192 | 75 | 134 | |
Accumulated Foreign Currency Adjustment Attributable to Noncontrolling Interest [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss) | 58 | 55 | 114 | |||
Reclassification From Other Comprehensive Income (Loss) Attributable To Noncontrolling Interest [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Amount reclassified from accumulated other comprehensive income (loss), Attributable to PriceSmart | 2,814 | |||||
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balance | (176,686) | (144,319) | (144,319) | |||
Balance | $ (174,586) | $ (152,498) | (174,586) | (152,498) | (176,686) | |
Accumulated Foreign Currency Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss) | 488 | (7,052) | (29,299) | |||
Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss) | [1] | 128 | 50 | (79) | ||
Accumulated Derivative Instruments Including Portion Attributable To Noncontrolling Interest [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss) | [2] | $ 1,484 | $ (1,177) | (5,803) | ||
Reclassification From Other Comprehensive Income (Loss) Including Portion Attributable To Noncontrolling Interest [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Amounts reclassified from accumulated other comprehensive income (loss) | $ 2,814 | |||||
[1] | Amounts reclassified from accumulated other comprehensive income (loss) related to the minimum pension liability are included in warehouse club and other operations in the Company's consolidated statements of income. | |||||
[2] | Refer to Note 8 - Derivative Instruments and Hedging Activities. |
STOCKHOLDERS' EQUITY (Summary o
STOCKHOLDERS' EQUITY (Summary of Retained Earnings Not Available for Distribution) (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Aug. 31, 2020 |
STOCKHOLDERS' EQUITY [Abstract] | ||
Retained earnings not available for distribution | $ 9,218 | $ 8,726 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Aug. 31, 2020 |
Commitments And Contingencies [Line Items] | ||
Accrual for taxes other than income taxes, Current | $ 2,000 | $ 2,500 |
Contractual obligation | 19,100 | 5,100 |
Purchase options, Land | 7,600 | |
Income taxes receivable | 28,526 | 31,060 |
Unknown Country [Member] | ||
Commitments And Contingencies [Line Items] | ||
Income taxes receivable | 11,000 | 10,400 |
Deferred tax assets, net | $ 3,200 | $ 2,800 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Schedule of Variable Interest Entities Maximum Loss Exposure) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Feb. 28, 2021 | Aug. 31, 2020 | ||
Variable Interest Entity [Line Items] | |||
Initial Investment | $ 6,809 | ||
Additional Investments | 3,638 | ||
Net Income Inception to Date | 135 | ||
Company's Variable Interest in Entity | 10,582 | $ 10,602 | |
Commitment to Future Additional Investments | [1] | 884 | |
Company's Maximum Exposure to Loss in Entity | [2] | $ 11,466 | |
GolfPark Plaza, S.A. [Member] | |||
Variable Interest Entity [Line Items] | |||
Percentage Ownership | [3] | 50.00% | |
Initial Investment | $ 4,616 | ||
Additional Investments | 2,402 | ||
Net Income Inception to Date | 41 | ||
Company's Variable Interest in Entity | 7,059 | ||
Commitment to Future Additional Investments | [1] | 99 | |
Company's Maximum Exposure to Loss in Entity | [2] | $ 7,158 | |
Price Plaza Alajuela PPA, S.A. [Member] | |||
Variable Interest Entity [Line Items] | |||
Percentage Ownership | [3] | 50.00% | |
Initial Investment | $ 2,193 | ||
Additional Investments | 1,236 | ||
Net Income Inception to Date | 94 | ||
Company's Variable Interest in Entity | 3,523 | ||
Commitment to Future Additional Investments | [1] | 785 | |
Company's Maximum Exposure to Loss in Entity | [2] | $ 4,308 | |
[1] | The parties intend to seek alternate financing for the project, which could reduce the amount of investments each party would be required to provide. The parties may mutually agree on changes to the project, which could increase or decrease the amount of contributions each party is required to provide. | ||
[2] | The maximum exposure is determined by adding the Company’s variable interest in the entity and any explicit or implicit arrangements that could require the Company to provide additional financial support. | ||
[3] | Joint venture interests are recorded as investment in unconsolidated affiliates on the consolidated balance sheets. |
DEBT (Narrative) (Details)
DEBT (Narrative) (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Aug. 31, 2020 | ||
Debt Instrument [Line Items] | ||||
Total long-term loans | $ 126,566 | [1] | $ 132,047 | [2] |
Group of Subsidiaries [Member] | Debt With Covenants [Member] | ||||
Debt Instrument [Line Items] | ||||
Total long-term loans | $ 100,000 | $ 107,400 | ||
[1] | The carrying amount of cash and non-cash assets assigned as collateral for these loans was $ 3.0 million and $ 149.3 million, respectively. | |||
[2] | The carrying amount of non-cash assets assigned as collateral for these loans was $ 158.6 million. No cash assets were assigned as collateral for these loans. |
DEBT (Schedule of Short-Term Bo
DEBT (Schedule of Short-Term Borrowings) (Details) - Facilities [Member] - USD ($) $ in Thousands | Feb. 28, 2021 | Aug. 31, 2020 |
Short-term Debt [Line Items] | ||
Total Amount of Facilities | $ 131,000 | $ 81,210 |
Facilities Available | $ 107,674 | $ 15,679 |
Weighted average interest rate | 2.20% | 3.70% |
Short-term Borrowings [Member] | ||
Short-term Debt [Line Items] | ||
Facilities Used | $ 23,067 | $ 65,143 |
Letters of Credit [Member] | ||
Short-term Debt [Line Items] | ||
Facilities Used | $ 259 | $ 388 |
DEBT (Summary of Changes in Lon
DEBT (Summary of Changes in Long-Term Debt) (Details) - USD ($) | 6 Months Ended | |||
Feb. 28, 2021 | Feb. 29, 2020 | Aug. 31, 2020 | ||
Debt Instrument [Line Items] | ||||
Current portion of long-term debt | $ 19,437,000 | |||
Long-term debt (net of current portion) | 112,610,000 | |||
Total | [1] | 132,047,000 | ||
Proceeds from long-term debt incurred during the period, | 3,000,000 | $ 45,820,000 | ||
Regularly scheduled loan payments, Current portion of long-term debt | (650,000) | |||
Regularly scheduled loan payments, Long-term debt (net of current portion) | (7,817,000) | |||
Regularly scheduled loan payments total | (8,467,000) | |||
Reclassification of long-term debt, Current portion of long-term debt | 1,058,000 | |||
Reclassification of long-term debt, Long-term debt (net of current portion) | (1,058,000) | |||
Reclassification of long-term debt total | ||||
Translation adjustments on foreign currency debt of subsidiaries whose functional currency is not the U.S. dollar, Current portion of long-term debt | [2] | 14,000 | ||
Translation adjustments on foreign currency debt of subsidiaries whose functional currency is not the U.S. dollar, Long-term debt (net of current portion) | [2] | (28,000) | ||
Translation adjustments on foreign currency debt of subsidiaries whose functional currency is not the U.S. dollar total | [2] | (14,000) | ||
Current portion of long-term debt | 20,406,000 | |||
Long-term debt (net of current portion) | 106,160,000 | |||
Total | [3] | 126,566,000 | ||
Cash Asset [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Collateral amount | 3,000,000 | $ 0 | ||
NonCash Asset [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Collateral amount | 149,300,000 | $ 158,600,000 | ||
Trinidad [Member] | ||||
Debt Instrument [Line Items] | ||||
Proceeds from long-term debt incurred during the period, Current portion of long-term debt | 547,000 | |||
Proceeds from long-term debt incurred during the period, Noncurrent | 2,453,000 | |||
Proceeds from long-term debt incurred during the period, | $ 3,000,000 | |||
[1] | The carrying amount of non-cash assets assigned as collateral for these loans was $ 158.6 million. No cash assets were assigned as collateral for these loans. | |||
[2] | These foreign currency translation adjustments are recorded within Other comprehensive loss. | |||
[3] | The carrying amount of cash and non-cash assets assigned as collateral for these loans was $ 3.0 million and $ 149.3 million, respectively. |
DEBT (Schedule of Annual Maturi
DEBT (Schedule of Annual Maturities of Long-Term Debt) (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Aug. 31, 2020 | [2] | |
DEBT [Abstract] | ||||
2022 | $ 20,406 | |||
2023 | 21,046 | |||
2024 | 17,079 | |||
2025 | 26,754 | |||
2026 | 4,476 | |||
Thereafter | 36,805 | |||
Total | $ 126,566 | [1] | $ 132,047 | |
[1] | The carrying amount of cash and non-cash assets assigned as collateral for these loans was $ 3.0 million and $ 149.3 million, respectively. | |||
[2] | The carrying amount of non-cash assets assigned as collateral for these loans was $ 158.6 million. No cash assets were assigned as collateral for these loans. |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Schedule of Interest Rate Derivatives) (Details) - Cash Flow Hedging [Member] | Feb. 28, 2021USD ($) |
Colombia $8M Cross Currency Interest Rate Swap [Member] | |
Derivative [Line Items] | |
Derivative, Initial Notional Amount | $ 7,875,000 |
Debt instrument, Basis spread on variable rate | 2.45% |
Derivative, Fixed Rate for PSMT Subsidiary | 7.87% |
Columbia $25M Interest Rate Swap [Member] | |
Derivative [Line Items] | |
Derivative, Initial Notional Amount | $ 25,000,000 |
Debt instrument, Basis spread on variable rate | 2.45% |
Derivative, Fixed Rate for PSMT Subsidiary | 7.93% |
Colombia $12.5M Cross Currency Interest Rate Swap [Member] | |
Derivative [Line Items] | |
Derivative, Initial Notional Amount | $ 12,500,000 |
Debt instrument, Basis spread on variable rate | 2.50% |
Derivative, Fixed Rate for PSMT Subsidiary | 7.09% |
Panama $15M Interest Rate Swap [Member] | |
Derivative [Line Items] | |
Derivative, Initial Notional Amount | $ 14,625,000 |
Debt instrument, Basis spread on variable rate | 3.00% |
Derivative, Fixed Rate for PSMT Subsidiary | 5.99% |
Honduras $13.5M Cross Currency Interest Rate Swap [Member] | |
Derivative [Line Items] | |
Derivative, Initial Notional Amount | $ 13,500,000 |
Debt instrument, Basis spread on variable rate | 3.00% |
Derivative, Fixed Rate for PSMT Subsidiary | 9.75% |
Pricesmart $35.7M Interest Rate Swap [Member] | |
Derivative [Line Items] | |
Derivative, Initial Notional Amount | $ 35,700,000 |
Debt instrument, Basis spread on variable rate | 1.70% |
Derivative, Fixed Rate for PSMT Subsidiary | 3.65% |
DERIVATIVE INSTRUMENTS AND HE_4
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2021 | Feb. 29, 2020 | ||
Interest Expense [Member] | Cash Flow Hedging [Member] | |||||
Derivative [Line Items] | |||||
Derivative, gain (loss) on derivative, Net | $ 1,629 | $ 1,802 | $ 3,238 | $ 3,076 | |
Interest Rate Contract [Member] | Interest Expense [Member] | Cash Flow Hedging [Member] | |||||
Derivative [Line Items] | |||||
Derivative, gain (loss) on derivative, Net | [1] | 676 | 1,206 | 1,360 | 2,219 |
Interest Rate Swap [Member] | Interest Expense [Member] | Cash Flow Hedging [Member] | |||||
Derivative [Line Items] | |||||
Derivative, gain (loss) on derivative, Net | [2] | $ 953 | 596 | $ 1,878 | 857 |
Not Designated as Hedging Instrument [Member] | Other Instruments [Member] | Other Expense, Net [Member] | |||||
Derivative [Line Items] | |||||
Derivative, gain (loss) on derivative, Net | $ 358 | $ (912) | |||
[1] | This amount is representative of the interest expense recognized on the underlying hedged transactions. | ||||
[2] | This amount is representative of the interest expense recognized on the interest rate swaps and cross-currency swaps designated as cash flow hedging instruments. |
DERIVATIVE INSTRUMENTS AND HE_5
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Schedule of Notional Amounts of Outstanding Derivative Positions) (Details) - Cash Flow Hedging [Member] - USD ($) $ in Thousands | Feb. 28, 2021 | Aug. 31, 2020 |
Derivative [Line Items] | ||
Derivative Liability, Notional Amount | $ 97,502 | $ 100,605 |
Union Bank [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Notional Amount | 33,256 | 33,894 |
Citibank N.A. [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Notional Amount | 53,371 | 55,086 |
Scotiabank [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Notional Amount | $ 10,875 | $ 11,625 |
DERIVATIVE INSTRUMENTS AND HE_6
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Schedule of Derivative Instruments in Statement of Financial Position, Fair Value) (Details) - USD ($) $ in Thousands | Feb. 28, 2021 | Aug. 31, 2020 |
Derivative [Line Items] | ||
Derivative Asset, Noncurrent | $ 228 | $ 872 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Noncurrent | (3,484) | (3,813) |
Net Tax Effect | 882 | 881 |
Net OCI | (2,602) | (2,932) |
Cross Currency Interest Rate Contract [Member] | Other Non-current Assets [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||
Derivative [Line Items] | ||
Derivative Asset, Noncurrent | 228 | 872 |
Net Tax Effect | (69) | (265) |
Net OCI | 159 | 607 |
Cross Currency Interest Rate Contract [Member] | Other Long-term Liabilities [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Noncurrent | (1,195) | (828) |
Net Tax Effect | 360 | 248 |
Net OCI | (835) | (580) |
Interest Rate Swap [Member] | Other Long-term Liabilities [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||
Derivative [Line Items] | ||
Derivative Liability, Noncurrent | (2,517) | (3,857) |
Net Tax Effect | 591 | 898 |
Net OCI | $ (1,926) | $ (2,959) |
SEGMENTS (Narrative) (Details)
SEGMENTS (Narrative) (Details) | Feb. 28, 2021warehousecountry |
Segment Reporting Information [Line Items] | |
Number of stores | warehouse | 47 |
Number of countries | 13 |
Foreign Countries [Member] | |
Segment Reporting Information [Line Items] | |
Number of countries | 12 |
SEGMENTS (Summary of Segment Re
SEGMENTS (Summary of Segment Revenues, Operating Costs and Balance Sheet Items) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2021 | Feb. 29, 2020 | Aug. 31, 2020 | ||
Segment Reporting Information [Line Items] | ||||||
Revenue | $ 937,569 | $ 906,735 | $ 1,815,001 | $ 1,718,676 | ||
Depreciation, Property and equipment | 15,687 | 14,576 | 30,573 | 28,790 | ||
Amortization, Intangibles | 593 | 599 | 1,192 | 1,198 | ||
Operating income (loss) | 44,979 | 38,809 | 89,510 | 69,523 | ||
Net income (loss) attributable to PriceSmart Inc. | 28,236 | 25,600 | 55,973 | 45,328 | ||
Long-lived assets (other than deferred tax assets) | 908,634 | 897,123 | 908,634 | 897,123 | $ 880,780 | |
Intangibles, net | 8,974 | 11,378 | 8,974 | 11,378 | 10,166 | |
Goodwill | 45,157 | 45,413 | 45,157 | 45,413 | 45,206 | |
Total assets | 1,630,836 | 1,498,292 | 1,630,836 | 1,498,292 | 1,656,825 | |
Capital expenditures, net | 28,377 | 33,312 | 48,136 | 74,538 | ||
United States Operations Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 22,768 | 18,848 | 46,385 | 36,187 | ||
Depreciation, Property and equipment | 1,784 | 1,338 | 3,449 | 2,687 | ||
Amortization, Intangibles | 593 | 599 | 1,192 | 1,198 | ||
Operating income (loss) | 2,028 | 1,928 | 7,771 | 4,516 | ||
Net income (loss) attributable to PriceSmart Inc. | (1,545) | (841) | (1,917) | (1,564) | ||
Long-lived assets (other than deferred tax assets) | 80,449 | 86,306 | 80,449 | 86,306 | 81,008 | |
Intangibles, net | 8,974 | 11,378 | 8,974 | 11,378 | 10,166 | |
Goodwill | 10,695 | 10,695 | 10,695 | 10,695 | 10,696 | |
Total assets | 201,726 | 157,116 | 201,726 | 157,116 | 272,190 | |
Capital expenditures, net | 1,500 | 3,489 | 2,718 | 4,118 | ||
Central American Operations Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 541,000 | 522,607 | 1,035,692 | 989,409 | ||
Depreciation, Property and equipment | 7,683 | 7,568 | 15,377 | 14,450 | ||
Operating income (loss) | 40,362 | 37,667 | 74,807 | 69,367 | ||
Net income (loss) attributable to PriceSmart Inc. | 32,309 | 30,339 | 61,547 | 57,091 | ||
Long-lived assets (other than deferred tax assets) | 483,729 | 477,195 | 483,729 | 477,195 | 475,744 | |
Goodwill | 24,389 | 24,522 | 24,389 | 24,522 | 24,418 | |
Total assets | 770,899 | 723,673 | 770,899 | 723,673 | 741,523 | |
Capital expenditures, net | 14,066 | 18,128 | 21,610 | 33,371 | ||
Caribbean Operations Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | [1] | 260,169 | 261,683 | 518,685 | 496,700 | |
Depreciation, Property and equipment | [1] | 3,858 | 3,826 | 7,650 | 7,792 | |
Operating income (loss) | [1] | 20,766 | 15,079 | 42,359 | 26,889 | |
Net income (loss) attributable to PriceSmart Inc. | [1] | 17,480 | 13,810 | 34,650 | 24,129 | |
Long-lived assets (other than deferred tax assets) | [1] | 181,815 | 187,641 | 181,815 | 187,641 | 177,166 |
Goodwill | [1] | 10,073 | 10,196 | 10,073 | 10,196 | 10,092 |
Total assets | [1] | 430,327 | 390,000 | 430,327 | 390,000 | 395,244 |
Capital expenditures, net | [1] | 5,804 | 7,230 | 8,262 | 11,750 | |
Colombia Operations Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 113,632 | 103,597 | 214,239 | 196,380 | ||
Depreciation, Property and equipment | 2,362 | 1,844 | 4,097 | 3,861 | ||
Operating income (loss) | 6,439 | 5,400 | 12,004 | 9,924 | ||
Net income (loss) attributable to PriceSmart Inc. | 4,699 | 3,666 | 9,295 | 6,937 | ||
Long-lived assets (other than deferred tax assets) | 162,641 | 145,981 | 162,641 | 145,981 | 146,862 | |
Total assets | 227,884 | 227,503 | 227,884 | 227,503 | $ 247,868 | |
Capital expenditures, net | 7,007 | 4,465 | 15,546 | 25,299 | ||
Intersegment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | [2] | (302,030) | (292,678) | (659,144) | (648,428) | |
Intersegment [Member] | United States Operations Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | (296,255) | (287,362) | (646,358) | (637,312) | ||
Intersegment [Member] | Central American Operations Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | (3,801) | (3,909) | (8,537) | (7,954) | ||
Intersegment [Member] | Caribbean Operations Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | [1] | (1,124) | (860) | (2,270) | (2,079) | |
Intersegment [Member] | Colombia Operations Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | (850) | (547) | (1,979) | (1,083) | ||
Reconciling Items [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating income (loss) | [2] | (24,616) | (21,265) | (47,431) | (41,173) | |
Net income (loss) attributable to PriceSmart Inc. | [2] | $ (24,707) | $ (21,374) | $ (47,602) | $ (41,265) | |
[1] | Management considers its club in the U.S. Virgin Islands to be part of its Caribbean operations. | |||||
[2] | The reconciling items reflect the amount eliminated on consolidation of intersegment transactions. |
Uncategorized Items - psmt-2021
Label | Element | Value |
Dividends Payable | us-gaap_DividendsPayableCurrentAndNoncurrent | $ 10,755,000 |
Dividends Payable | us-gaap_DividendsPayableCurrentAndNoncurrent | $ 10,719,000 |