COVER
COVER - USD ($) | 12 Months Ended | ||
Aug. 31, 2023 | Oct. 25, 2023 | Feb. 28, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Aug. 31, 2023 | ||
Current Fiscal Year End Date | --08-31 | ||
Document Transition Report | false | ||
Entity File Number | 000-22793 | ||
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 | ||
Title of 12(b) Security | Common Stock, $0.0001 par value | ||
Trading Symbol | PSMT | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,818,035,453 | ||
Entity Common Stock, Shares Outstanding | 30,161,886 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCEPortions of the Company’s definitive Proxy Statement for the Annual Meeting of Stockholders to be held on February 1, 2024 are incorporated by reference into Part III of this Form 10-K. | ||
Entity Central Index Key | 0001041803 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Document Financial Statement Error Correction [Flag] | false |
AUDIT INFORMATION
AUDIT INFORMATION | 12 Months Ended |
Aug. 31, 2023 | |
Auditor Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Location | San Diego, California |
Auditor Name | Ernst & Young LLP |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 239,984 | $ 237,710 |
Short-term restricted cash | 2,865 | 3,013 |
Short-term investments | 91,081 | 11,160 |
Receivables, net of allowance for doubtful accounts of $67 as of August 31, 2023 and $103 as of August 31, 2022, respectively | 17,904 | 13,391 |
Merchandise inventories | 471,407 | 464,411 |
Prepaid expenses and other current assets (includes $0 and $2,761 as of August 31, 2023 and August 31, 2022, respectively, for the fair value of derivative instruments) | 53,866 | 43,894 |
Total current assets | 877,107 | 773,579 |
Long-term restricted cash | 9,353 | 10,650 |
Property and equipment, net | 850,328 | 757,241 |
Operating lease right-of-use assets, net | 114,201 | 111,810 |
Goodwill | 43,110 | 43,303 |
Deferred tax assets | 32,039 | 28,355 |
Other non-current assets (includes $7,817 and $11,884 as of August 31, 2023 and August 31, 2022, respectively, for the fair value of derivative instruments) | 68,991 | 72,928 |
Investment in unconsolidated affiliates | 10,479 | 10,534 |
Total Assets | 2,005,608 | 1,808,400 |
Current Liabilities: | ||
Short-term borrowings | 8,679 | 10,608 |
Accounts payable | 453,229 | 408,407 |
Accrued salaries and benefits | 45,441 | 44,097 |
Deferred income | 32,613 | 29,228 |
Income taxes payable | 9,428 | 7,243 |
Other accrued expenses and other current liabilities (includes $1,913 and $82 as of August 31, 2023 and August 31, 2022, respectively, for the fair value of derivative instruments) | 57,273 | 38,667 |
Operating lease liabilities, current portion | 7,621 | 7,491 |
Long-term debt, current portion | 20,193 | 33,715 |
Total current liabilities | 634,477 | 579,456 |
Deferred tax liability | 1,936 | 2,165 |
Long-term income taxes payable, net of current portion | 5,045 | 5,215 |
Long-term operating lease liabilities | 122,195 | 118,496 |
Long-term debt, net of current portion | 119,487 | 103,556 |
Other long-term liabilities (includes $3,321 and $0 for the fair value of derivative instruments and $12,105 and $8,440 for post-employment plans as of August 31, 2023 and August 31, 2022, respectively) | 15,425 | 8,439 |
Total Liabilities | 898,565 | 817,327 |
Stockholders' Equity: | ||
Common stock $0.0001 par value, 45,000,000 shares authorized; 31,934,900 and 31,697,590 shares issued and 30,976,941 and 30,904,826 shares outstanding (net of treasury shares) as of August 31, 2023 and August 31, 2022, respectively | 3 | 3 |
Additional paid-in capital | 497,434 | 481,406 |
Accumulated other comprehensive loss | (163,992) | (195,586) |
Retained earnings | 817,559 | 736,894 |
Less: treasury stock at cost, 957,959 shares as of August 31, 2023 and 792,764 shares as of August 31, 2022 | (43,961) | (31,644) |
Total Stockholders' Equity | 1,107,043 | 991,073 |
Total Liabilities and Equity | $ 2,005,608 | $ 1,808,400 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Receivables, allowance for doubtful accounts | $ 67 | $ 103 |
Prepaid expenses and other current assets, fair value of derivative instruments | 0 | 2,761 |
Derivative asset, noncurrent | 7,817 | 11,884 |
Fair value, liabilities, current | 1,913 | 82 |
Other long-term liabilities, fair value of derivative instruments | 3,321 | 0 |
Other long-term liabilities, post-employment plans | $ 12,105 | $ 8,440 |
Common stock, par value per share (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 45,000,000 | 45,000,000 |
Common stock, shares issued (in shares) | 31,934,900 | 31,697,590 |
Common stock, shares outstanding (in shares) | 30,976,941 | 30,904,826 |
Number of common shares acquired (in shares) | 957,959 | 792,764 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Revenues: | |||
Total revenues | $ 4,411,842 | $ 4,066,093 | $ 3,619,871 |
Selling, general and administrative: | |||
Warehouse club and other operations | 417,272 | 378,161 | 359,221 |
General and administrative | 134,783 | 133,185 | 125,416 |
Reserve for AMT settlement | 7,179 | 0 | 0 |
Separation costs associated with Chief Executive Officer departure | 7,747 | 0 | 0 |
Pre-opening expenses | 1,432 | 1,471 | 849 |
Asset impairment and closure costs | 5,658 | 0 | 0 |
Loss on disposal of assets | 744 | 1,265 | 1,027 |
Total operating expenses | 4,227,326 | 3,899,027 | 3,461,851 |
Operating income | 184,516 | 167,066 | 158,020 |
Other expense: | |||
Interest income | 9,871 | 2,201 | 1,979 |
Interest expense | (11,020) | (9,611) | (7,210) |
Other expense, net | (14,156) | (3,235) | (5,603) |
Total other expense | (15,305) | (10,645) | (10,834) |
Income before provision for income taxes and loss of unconsolidated affiliates | 169,211 | 156,421 | 147,186 |
Provision for income taxes | (59,951) | (51,858) | (48,969) |
Loss of unconsolidated affiliates | (55) | (10) | (58) |
Net income | 109,205 | 104,553 | 98,159 |
Less: net income attributable to noncontrolling interest | 0 | (19) | (196) |
Net income attributable to PriceSmart, Inc. | $ 109,205 | $ 104,534 | $ 97,963 |
Net income attributable to PriceSmart, Inc. per share available for distribution: | |||
Basic (in dollars per share) | $ 3.51 | $ 3.38 | $ 3.18 |
Diluted (in dollars per share) | $ 3.50 | $ 3.38 | $ 3.18 |
Shares used in per share computations: | |||
Basic (in shares) | 30,763,000 | 30,591,000 | 30,403,000 |
Diluted (in shares) | 30,786,000 | 30,600,000 | 30,403,000 |
Dividends (in dollars per share) | $ 0.92 | $ 0.86 | $ 0.70 |
Net merchandise sales | |||
Revenues: | |||
Total revenues | $ 4,300,706 | $ 3,944,817 | $ 3,465,442 |
Cost of goods sold: | |||
Cost of goods sold | 3,622,354 | 3,340,062 | 2,912,489 |
Export sales | |||
Revenues: | |||
Total revenues | 31,741 | 45,217 | 41,520 |
Cost of goods sold: | |||
Cost of goods sold | 30,157 | 43,074 | 39,513 |
Membership income | |||
Revenues: | |||
Total revenues | 66,048 | 60,887 | 56,030 |
Other revenue and income | |||
Revenues: | |||
Total revenues | 13,347 | 15,172 | 56,879 |
Non-merchandise | |||
Cost of goods sold: | |||
Cost of goods sold | $ 0 | $ 1,809 | $ 23,336 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 109,205 | $ 104,553 | $ 98,159 | |
Less: net income attributable to noncontrolling interest | 0 | (19) | (196) | |
Net income attributable to PriceSmart, Inc. | 109,205 | 104,534 | 97,963 | |
Other Comprehensive Income, net of tax: | ||||
Foreign currency translation adjustments | [1] | 33,708 | (19,034) | (7,837) |
Defined benefit pension plan: | ||||
Net loss arising during period | (1,819) | (341) | (230) | |
Amortization of prior service cost and actuarial gains included in net periodic pensions cost | 148 | 127 | 127 | |
Total defined benefit pension plan | (1,671) | (214) | (103) | |
Derivative instruments: | ||||
Unrealized gains (losses) on change in derivative obligations | [2] | 6,000 | (4,021) | (140) |
Unrealized gains (losses) on change in fair value of interest rate swaps | [2] | (9,177) | 10,191 | 2,392 |
Amounts reclassified from accumulated other comprehensive income to other expense, net for settlement of derivatives | [2] | 2,734 | 0 | 0 |
Total derivative instruments | [2] | (443) | 6,170 | 2,252 |
Other comprehensive income (loss) | 31,594 | (13,078) | (5,688) | |
Comprehensive income | 140,799 | 91,456 | 92,275 | |
Less: comprehensive income attributable to noncontrolling interest | 0 | 3 | 117 | |
Comprehensive income attributable to PriceSmart, Inc. | $ 140,799 | $ 91,453 | $ 92,158 | |
[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 permanently reinvested for any jurisdiction where distribution from a foreign affiliate would cause additional tax cost 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]Refer to “Note 13 - Derivative Instruments and Hedging Activities. |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Total Stockholders' Equity Attributable to PriceSmart, Inc. | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock | Non-controlling Interest |
Beginning balance (in shares) at Aug. 31, 2020 | 31,418,000 | |||||||
Beginning balance at Aug. 31, 2020 | $ 832,732 | $ 831,719 | $ 3 | $ 454,455 | $ (176,820) | $ 582,487 | $ (28,406) | $ 1,013 |
Treasury stock, beginning balance (in shares) at Aug. 31, 2020 | 747,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Purchase of treasury stock (in shares) | 62,000 | |||||||
Purchase of treasury stock | $ (5,542) | (5,542) | $ (5,542) | |||||
Issuance of treasury stock (in shares) | (96,400) | (96,000) | (96,000) | |||||
Issuance of treasury stock | $ 0 | 0 | (7,864) | $ 7,864 | ||||
Issuance of restricted stock award (in shares) | 154,000 | |||||||
Forfeiture of restricted stock awards (in shares) | (8,000) | |||||||
Stock-based compensation | 18,424 | 18,424 | 18,424 | |||||
Dividend paid to stockholders | (21,988) | (21,531) | (21,531) | (457) | ||||
Net income | 98,159 | 97,963 | 97,963 | 196 | ||||
Other comprehensive income (loss) | (5,571) | (5,688) | (5,688) | 117 | ||||
Ending balance (in shares) at Aug. 31, 2021 | 31,468,000 | |||||||
Ending balance at Aug. 31, 2021 | 916,214 | 915,345 | $ 3 | 465,015 | (182,508) | 658,919 | $ (26,084) | 869 |
Treasury stock, ending balance (in shares) at Aug. 31, 2021 | 713,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Purchase of treasury stock (in shares) | 88,000 | |||||||
Purchase of treasury stock | $ (6,259) | (6,259) | $ (6,259) | |||||
Issuance of treasury stock (in shares) | (8,314) | (8,000) | (8,000) | |||||
Issuance of treasury stock | $ 0 | 0 | (699) | $ 699 | ||||
Issuance of restricted stock award (in shares) | 247,000 | |||||||
Forfeiture of restricted stock awards (in shares) | (9,000) | |||||||
Stock-based compensation | 16,803 | 16,803 | 16,803 | |||||
Dividend paid to stockholders | (26,559) | (26,559) | (26,559) | |||||
Net income | 104,553 | 104,534 | 104,534 | 19 | ||||
Other comprehensive income (loss) | (13,075) | (13,078) | (13,078) | 3 | ||||
Sale of Aeropost stock | $ (604) | 287 | 287 | (891) | ||||
Ending balance (in shares) at Aug. 31, 2022 | 30,904,826 | 31,698,000 | ||||||
Ending balance at Aug. 31, 2022 | $ 991,073 | 991,073 | $ 3 | 481,406 | (195,586) | 736,894 | $ (31,644) | 0 |
Treasury stock, ending balance (in shares) at Aug. 31, 2022 | 792,764 | 793,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Purchase of treasury stock (in shares) | 172,000 | |||||||
Purchase of treasury stock | $ (12,863) | (12,863) | $ (12,863) | |||||
Issuance of treasury stock (in shares) | (6,333) | (7,000) | (7,000) | |||||
Issuance of treasury stock | $ 0 | 0 | (546) | $ 546 | ||||
Issuance of restricted stock award (in shares) | 319,000 | |||||||
Forfeiture of restricted stock awards (in shares) | (75,000) | |||||||
Stock-based compensation | 16,574 | 16,574 | 16,574 | |||||
Dividend paid to stockholders | (28,540) | (28,540) | (28,540) | |||||
Net income | 109,205 | 109,205 | 109,205 | 0 | ||||
Other comprehensive income (loss) | $ 31,594 | 31,594 | 31,594 | 0 | ||||
Ending balance (in shares) at Aug. 31, 2023 | 30,976,941 | 31,935,000 | ||||||
Ending balance at Aug. 31, 2023 | $ 1,107,043 | $ 1,107,043 | $ 3 | $ 497,434 | $ (163,992) | $ 817,559 | $ (43,961) | $ 0 |
Treasury stock, ending balance (in shares) at Aug. 31, 2023 | 957,959 | 958,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Operating Activities: | |||
Net income | $ 109,205 | $ 104,553 | $ 98,159 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 72,698 | 67,868 | 64,983 |
Allowance for doubtful accounts | (36) | 63 | (53) |
Reserve for AMT settlement | 7,179 | 0 | 0 |
Asset impairment and closure costs | 5,658 | 0 | 0 |
Loss on sale of property and equipment | 744 | 1,265 | 1,027 |
Deferred income taxes | (5,583) | (3,300) | (3,853) |
Equity in losses of unconsolidated affiliates | 55 | 10 | 58 |
Stock-based compensation | 16,574 | 16,803 | 18,424 |
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 | 17,589 | (13,785) | 13,097 |
Merchandise inventories | (10,173) | (74,706) | (80,202) |
Accounts payable | 43,421 | 23,058 | 15,526 |
Net cash provided by operating activities | 257,331 | 121,829 | 127,166 |
Investing Activities: | |||
Additions to property and equipment | (142,511) | (120,660) | (113,174) |
Purchases of short-term investments | (138,784) | (22,469) | (69,460) |
Proceeds from settlements of short-term investments | 58,852 | 61,733 | 65,528 |
Purchases of long-term investments | 0 | 0 | (1,478) |
Proceeds from settlements of long-term investments | 0 | 1,488 | 1,478 |
Proceeds from disposal of property and equipment | 361 | 193 | 385 |
Proceeds from the disposal of Aeropost, net of divested cash | 0 | 4,959 | 0 |
Net cash used in investing activities | (222,082) | (74,756) | (116,721) |
Financing Activities: | |||
Proceeds from long-term bank borrowings | 38,713 | 30,633 | 17,565 |
Repayment of long-term bank borrowings | (35,984) | (22,697) | (19,993) |
Proceeds from short-term bank borrowings | 848 | 23,829 | 0 |
Repayment of short-term bank borrowings | (3,229) | (11,156) | (64,983) |
Cash dividend payments | (28,540) | (26,559) | (21,988) |
Purchase of treasury stock | (12,863) | (6,259) | (5,542) |
Other financing activities | 0 | 0 | (196) |
Net cash used in financing activities | (41,055) | (12,209) | (95,137) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 6,635 | 1,030 | (3,600) |
Net increase (decrease) in cash, cash equivalents | 829 | 35,894 | (88,292) |
Cash, cash equivalents and restricted cash at beginning of period | 251,373 | 215,479 | 303,771 |
Cash, cash equivalents and restricted cash at end of period | 252,202 | 251,373 | 215,479 |
Supplemental disclosure of noncash investing activities: | |||
Capital expenditures accrued, but not yet paid | 4,530 | 3,129 | 3,497 |
Cash paid during the period for: | |||
Interest | 10,558 | 9,392 | 7,774 |
Income taxes | 77,925 | 67,143 | 58,571 |
Reconciliation of cash, cash equivalents, and restricted cash: | |||
Cash and cash equivalents | 239,984 | 237,710 | 202,060 |
Short-term restricted cash | 2,865 | 3,013 | 3,647 |
Long-term restricted cash | 9,353 | 10,650 | 9,772 |
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows | $ 252,202 | $ 251,373 | $ 215,479 |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Aug. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II PRICESMART, INC. VALUATION AND QUALIFYING ACCOUNTS (amounts in thousands) Balance at Charged to Deductions Balance at Allowance for doubtful accounts: Year ended August 31, 2021 $ 147 $ 93 $ (146) $ 94 Year ended August 31, 2022 $ 94 $ 89 $ (80) $ 103 Year ended August 31, 2023 $ 103 $ 42 $ (78) $ 67 |
COMPANY OVERVIEW AND BASIS OF P
COMPANY OVERVIEW AND BASIS OF PRESENTATION | 12 Months Ended |
Aug. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
COMPANY OVERVIEW AND BASIS OF PRESENTATION | COMPANY OVERVIEW AND BASIS OF PRESENTATION PriceSmart, Inc.’s (“PriceSmart,” the “Company,” “we” or “our”) 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 August 31, 2023, the Company had 51 warehouse clubs in operation in 12 countries and one U.S. territory (nine in Colombia; eight in Costa Rica; seven in Panama; five in the Dominican Republic and Guatemala; four in Trinidad; three each in El Salvador and Honduras; two each in Jamaica and Nicaragua; and one each in Aruba, Barbados, 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). In September 2023, we opened a new warehouse club in Medellín, Colombia, bringing the total number of warehouse clubs in operation by the Company to 52. In addition, the Company plans to open a warehouse club in Escuintla, Guatemala on November 30, 2023 and a warehouse club in Santa Ana, El Salvador in early 2024. Once these two new clubs are open, the Company will operate 54 warehouse clubs. Our operating segments are the United States, Central America, the Caribbean, and Colombia. PriceSmart continues to invest in technology and talent to support the following three major drivers of growth: 1. Invest in Remodeling Current PriceSmart Clubs, Adding New PriceSmart Locations and Opening More Distribution Centers ; 2. Increase Membership Value ; and 3. Increase Sales via PriceSmart.com and Enhanced Online, Digital and Technological Capabilities . |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Aug. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation – The 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 non-controlling interests. The Company reports non-controlling interests in consolidated entities as a component of equity separate from the Company’s equity. The 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 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 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 August 31, 2023 are listed below: Real Estate Development Joint Ventures Countries Ownership Basis of 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. 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 consolidated financial statements and accompanying notes. These estimates and assumptions take into account historical and forward-looking factors that the Company believes are reasonable. Actual results could differ from those estimates and assumptions. 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. In addition, the Company invests some of our cash in money market funds which are considered equity securities and are held at fair value in Cash and cash equivalents on the Consolidated Balance Sheets. The fair value of money market funds held was $100.2 million as of August 31, 2023 and $6.6 million as of August 31, 2022. We receive interest payments from the money market funds which are recorded in the Interest income line item under the Other expense caption within the Consolidated Statements of Income. Restricted Cash – The following table summarizes the restricted cash reported by the Company (in thousands): August 31, August 31, Short-term restricted cash $ 2,865 $ 3,013 Long-term restricted cash 9,353 10,650 Total restricted cash (1) $ 12,218 $ 13,663 (1) Restricted cash consists of cash deposits held within banking institutions in compliance with federal regulatory requirements in Costa Rica and Panama. In addition, the Company is required to maintain a certificate of deposit and/or security deposits of Trinidad dollars, as measured in U.S dollars, of approximately $6.4 million with a few of its lenders as compensating balances for several U.S. dollar and euro denominated loans payable over several years. The certificates of deposit will be reduced annually commensurate with the loan balances. 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 – Goodwill totaled $43.1 million as of August 31, 2023 and $43.3 million as of August 31, 2022. The Company reviews reported goodwill at the reporting 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. The changes in the carrying amount of goodwill for the year ended August 31, 2023 are as follows (in thousands): Amount Goodwill at August 31, 2022 $ 43,303 Foreign currency exchange rate changes (193) Goodwill at August 31, 2023 $ 43,110 Amount Other intangibles at August 31, 2022 $ 765 Amortization (765) Net other intangibles at August 31, 2023 $ — Total goodwill and other intangibles, net August 31, 2023 $ 43,110 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. Additionally, we are occasionally required to make payments for tax assessments that we are appealing, because we believe it is more likely than not we will ultimately prevail. In two countries where the Company operates, minimum income tax rules require the Company to pay taxes based on a percentage of sales if the resulting tax were greater than the tax payable based on a percentage of income (Alternative Minimum Tax or "AMT"). As a result, the Company is making AMT payments substantially in excess of those it would expect to pay based on taxable income. The Company had income tax receivables of $10.7 million and $11.0 million and deferred tax assets of $3.7 million and $3.5 million as of August 31, 2023 and August 31, 2022, respectively, in these countries. In the fourth quarter of fiscal year 2023, we recorded a $7.2 million charge to settle the AMT payment dispute in one of the aforementioned countries. Of this amount, $1.0 million relates to the reserve for an income tax receivable for one of the tax years for which we sought a refund and the remaining $6.2 million is an accrual for the unpaid years of the dispute in which the Company made tax payments using the original computation based on taxable income. 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. Deferred tax assets or amounts that may be deemed under-paid, because the Company believes that it is more likely than not that it will ultimately succeed in its refund requests and appeals of these rules. In one of the countries with a significant VAT receivable balance, the Company received unfavorable rulings at the supreme court level of that country denying a portion of the Company’s appeals for refund of over-withholdings of VAT. After evaluating the merits of the Company’s arguments, the court’s decision, and probability that the other related refund appeals would receive the same judgment, the Company concluded that a total of $2.3 million of related VAT receivables would not be recoverable and this amount was written-off in the third quarter of fiscal year 2023. These charges were recorded in the Warehouse club and other expenses line item under the Selling, general and administrative caption within the consolidated statements of income. The Company's various outstanding VAT receivables and/or income tax receivables are based on cases or appeals with their own set of facts and circumstances. The Company consults and evaluates with legal and tax advisors regularly to understand the strength of its legal arguments and probability of successful outcomes in addition to its own experience handling complex tax issues. Based on those evaluations, the Company has not placed any type of allowance on the recoverability of the remaining 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. 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): August 31, August 31, Prepaid expenses and other current assets $ 2,774 $ 3,890 Other non-current assets 36,060 32,460 Total amount of VAT receivables reported $ 38,834 $ 36,350 The following table summarizes the Income tax receivables reported by the Company (in thousands): August 31, August 31, Prepaid expenses and other current assets $ 17,749 $ 12,077 Other non-current assets 19,176 19,985 Total amount of income tax receivables reported $ 36,925 $ 32,062 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. The 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 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, including transaction costs and excise taxes, 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 twelve months ended August 31, 2023, the Company reissued approximately 6,333 treasury shares. Fair Value Measurements – The Company measures the fair value for all financial and non-financial 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. ASC 820, Fair Value Measurements and Disclosures, sets forth a fair value hierarchy that categorizes inputs to valuation techniques used to measure and revalue 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. During fiscal year 2023, we recorded impairment charges of $4.8 million to mark our available-for-sale assets down to their fair market value. The disclosure of fair value of certain financial assets and liabilities recorded at cost is as follows: Cash and cash equivalents: The carrying value approximates fair value due to the short maturity of these instruments. The carrying value of our money market funds is the fair value based on quoted prices in active markets at the measurement date and therefore are classified as Level 1 inputs. The fair value of money market funds held was $100.2 million as of August 31, 2023 and $6.6 million as of August 31, 2022. Short-term restricted cash: The carrying value approximates fair value due to the short maturity of these instruments. Short-term investments: Short-term investments consists of certificates of deposit and similar time-based deposits with financial institutions with maturity dates over three months and up to twelve months. The carrying value approximates fair value due to the maturity of the underlying certificates of deposit within the normal operating cycle of the Company. Long-term investments: Long-term investments consists of certificates of deposit and similar time-based deposits with financial institutions with maturity dates over one year. The carrying value approximates fair value due to the maturity of the underlying certificates of deposit. Long-term restricted cash: Long-term restricted cash primarily consists of certificates of deposit with maturity dates of over a year, which are held as collateral against our long-term debt. The carrying value approximates fair value due to the maturity of the underlying certificates of deposit. Accounts receivable: 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. Short-term VAT and income tax receivables: The carrying value approximates fair value due to the short maturity of these accounts. Long-term VAT and income tax receivables: The fair value of long-term receivables would normally be measured using a discounted cash flow analysis based on the current market interest rates for similar types of financial instruments, with an estimate of the time these receivables are expected to be outstanding. The Company is not able to provide an estimate as to the time these receivables owed to the Company by various government agencies are expected to be outstanding; therefore, the Company has not presented a fair value on the long-term VAT and income tax receivables. Short-term debt: The carrying value approximates fair value due to the short maturity of these instruments. Long-term debt: The fair value of debt is generally measured using a discounted cash flow analysis based on current market interest rates for similar types of financial instruments. These inputs are not quoted prices in active markets but they are either directly or indirectly observable; therefore, they are classified as Level 2 inputs. The carrying value and fair value of the Company’s debt as of August 31, 2023 and August 31, 2022 is as follows (in thousands): August 31, 2023 August 31, 2022 Carrying Fair Value (1) Carrying Fair Value (1) Long-term debt, including current portion $ 139,680 $ 133,150 $ 137,271 $ 136,479 (1) The Company has disclosed the fair value of long-term debt, including debt for which it has entered into cross-currency interest rate swaps, using the derivative obligation as of August 31, 2023 to estimate the fair value of long-term debt, which includes the effects that the cross-currency interest rate swaps have had on the fair value of long-term debt. Derivative 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 13 - Derivative Instruments and Hedging Activities” for information on the fair value of interest rate swaps and cross-currency interest rate swaps as of August 31, 2023 and August 31, 2022. 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. Revenue Recognition – The accounting policies and other disclosures such as the disclosure of disaggregated revenues are described in “Note 3 – Revenue Recognition.” Cost of Goods Sold – The Company includes the cost of merchandise and 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. Until the disposal of Aeropost in the first quarter of fiscal year 2022, the Company included the costs for the marketplace and casillero operations 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 and time-limited promotions are recognized on a systematic and rational allocation of the cash consideration as the Company progresses toward earning the rebate, provided the amounts to be earned are probable and reasonably estimable. 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. 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. 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 recor |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Aug. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION The Company uses the five-step model to recognize revenue according to Accounting Standards Codification (ASC) Topic 606, “Revenue Recognition from Contracts with Customers.” The five steps are: • Identify the contract with the customer; • Identity the performance obligation(s); • Determine the transaction price; • Allocate the transaction price to each performance obligation if multiple obligations exist; and • Recognize the revenue as the performance obligations are satisfied. 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 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. Until the disposal of Aeropost in the first quarter of fiscal year 2022, the Company recognized non-merchandise revenue, net of sales taxes, on transactions where the Company had determined that it was the agent in the transaction. These transactions primarily consisted of contracts the Company entered into with its customers to provide delivery, insurance and customs processing services for products its customers purchased online in the United States either directly from other vendors utilizing the vendor’s website or through the Company’s marketplace site. Revenue was recognized when the Company’s performance obligations were completed (that is when delivery of the items have been made to the destination point) and was recorded in “non-merchandise revenue” on the consolidated statements of income. Prepayment for orders for which the Company had not fulfilled its performance obligation were recorded as deferred income. Additionally, the Company recorded 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 was acting as an agent and was 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 for 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 markets. 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 cards; therefore, the Company assumes a 100% redemption rate prior to expiration of the gift card. The Company periodically reviews unredeemed outstanding gift cards, and the gift cards 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. Determining the Transaction Price The transaction price is the amount of consideration the Company expects to receive under the arrangement. The Company is required to estimate variable consideration (if any) and to factor that estimate into the determination of the transaction price. The Company may offer sales incentives to customers, including discounts. For retail transactions, the Company has significant experience with returns and refund patterns and relied on this experience in its determination that expected returns are not material; therefore, returns are not factored when determining the transaction price. Discounts given to customers are usually in the form of coupons and instant markdowns and are recognized as redeemed and recorded in contra revenue accounts, as they are part of the transaction price of the merchandise sale. Manufacturer coupons that are available for redemption at all retailers are not recorded as a reduction to the sale price of merchandise. Manufacturer coupons or discounts that are specific to the Company are recorded as a reduction to the cost of sales. Agent Relationships The Company evaluates the criteria outlined in ASC 606-10-55, Principal versus Agent Considerations, in determining whether it is appropriate in these arrangements to record the gross amount of merchandise sales and related costs, or the net amount earned as commissions. When the Company is considered the principal in a transaction, revenue is recorded gross; otherwise, revenue is recorded on a net basis. The Company's Non-merchandise Sales revenues are recorded on a net basis. Significant Judgments For arrangements that contain multiple performance obligations, the Company allocates the transaction price to each performance obligation on a relative standalone selling price basis. During fiscal year 2023, there were no revenue transactions that required significant judgement. Incremental costs to obtain contracts are not material to the Company. Policy Elections In addition to those previously disclosed, the Company has made the following accounting policy elections and practical expedients: • Taxes - The Company excludes from the transaction price any taxes collected from customers that are remitted to taxing authorities. • Shipping and Handling Charges - Charges that are incurred after the customer obtains control of goods are deemed costs required to complete our performance obligation. Therefore, the Company considers the act of shipping after the customer obtains control of goods to not be a separate performance obligation. These shipping and handling costs are classified as “Costs of goods sold” in the consolidated statements of income because they are incurred to fulfill a revenue obligation. • Time Value of Money - The Company's payment terms are less than one year from the transfer of goods. Therefore, the Company does not adjust promised amounts of consideration for the effects of the time value of money. 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 and 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 August 31, August 31, Deferred membership income $ 31,079 $ 28,000 Other contract performance liabilities $ 12,347 $ 10,473 Disaggregated Revenues In the following table, net merchandise sales are disaggregated by merchandise category (in thousands): Years Ended August 31, August 31, August 31, Foods & Sundries $ 2,148,584 $ 1,947,734 $ 1,736,509 Fresh Foods 1,262,132 1,145,920 1,003,694 Hardlines 454,207 443,311 409,644 Softlines 230,950 227,371 175,505 Other Business 204,833 180,481 140,090 Net Merchandise Sales $ 4,300,706 $ 3,944,817 $ 3,465,442 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Aug. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment are stated at historical cost. The historical cost of acquiring an asset includes the costs incurred to bring it to the condition and location necessary for its intended use. Depreciation is computed on the straight-line basis over the estimated useful lives of the assets. The useful life of fixtures and equipment ranges from 3 to 15 years and that of certain components of building improvements and buildings from 10 to 40 years. Leasehold improvements are amortized over the shorter of the life of the improvement or the expected term of the lease. In some locations, leasehold improvements are amortized over a period longer than the initial lease term where management believes it is reasonably certain that the renewal option in the underlying lease will be exercised because an economic penalty may be incurred if the option is not exercised. The sale or purchase of property and equipment is recognized upon legal transfer of property. Property and equipment consist of the following (in thousands): August 31, August 31, Land $ 238,374 $ 224,278 Building and improvements 650,060 592,749 Fixtures and equipment 385,100 343,859 Construction in progress 99,545 42,602 Total property and equipment, historical cost 1,373,079 1,203,488 Less: accumulated depreciation (522,751) (446,247) Property and equipment, net $ 850,328 $ 757,241 Depreciation and amortization expense (in thousands): Years Ended August 31, 2023 2022 2021 Depreciation expense, Property and equipment $ 71,933 $ 66,255 $ 62,579 Amortization expense, Intangible assets 765 1,613 2,404 Total depreciation and amortization expense $ 72,698 $ 67,868 $ 64,983 The Company capitalizes interest on expenditures for qualifying assets over a period that covers the duration of the activities required to get the asset ready for its intended use, provided that expenditures for the asset have been made and interest cost is being incurred. Interest capitalization continues as long as those activities and the incurrence of interest cost continue. The amount capitalized in an accounting period is determined by applying the Company’s consolidated capitalization rate (average interest rate) to the average amount of accumulated expenditures for the qualifying asset, for each country, during the period. The capitalization rates are based on the interest rates applicable to borrowings outstanding during the period. Total interest capitalized (in thousands): Balance as of August 31, August 31, Total interest capitalized $ 15,426 $ 12,934 Total interest capitalized (in thousands): Years Ended August 31, 2023 2022 2021 Interest capitalized $ 2,083 $ 1,263 $ 2,282 A summary of asset disposal activity for fiscal years 2023, 2022 and 2021 is as follows (in thousands): Historical Accumulated Proceeds from Loss Fiscal Year 2023 $ 11,484 $ 10,379 $ 361 $ (744) Fiscal Year 2022 $ 12,785 $ 11,327 $ 193 $ (1,265) Fiscal Year 2021 $ 10,946 $ 9,534 $ 385 $ (1,027) The Company also recorded within accounts payable and other accrued expenses approximately $3.9 million and $0.6 million, respectively, as of August 31, 2023 and $2.2 million and $0.9 million, respectively, as of August 31, 2022 of liabilities related to the acquisition and/or construction of property and equipment. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Aug. 31, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHAREThe 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 (“RSAs”), restricted stock units (“RSUs”) and performance stock units (“PSUs”) issued pursuant to the 2013 Equity Incentive Award Plan, provided that the Company does not include PSUs as participating securities until the performance conditions have been met. 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. 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 corresponding dividend equivalents are paid on the PSUs. 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 attributable to PriceSmart for the twelve months ended August 31, 2023, 2022 and 2021 (in thousands, except per share amounts): Years Ended August 31, 2023 2022 2021 Net income attributable to PriceSmart, Inc. $ 109,205 $ 104,534 $ 97,963 Less: Allocation of income to unvested stockholders (1,311) (1,245) (1,282) Net income attributable to PriceSmart, Inc. available for distribution $ 107,894 $ 103,289 $ 96,681 Basic weighted average shares outstanding 30,763 30,591 30,403 Add dilutive effect of performance stock units (two-class method) 23 9 — Diluted average shares outstanding 30,786 30,600 30,403 Basic net income per share $ 3.51 $ 3.38 $ 3.18 Diluted net income per share $ 3.50 $ 3.38 $ 3.18 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Aug. 31, 2023 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Dividends The following table summarizes the dividends declared and paid during fiscal years 2023, 2022 and 2021 (amounts are per share): First Payment Second Payment Declared Amount Record Date Amount Record Date Amount 2/3/2023 $ 0.92 2/16/2023 2/28/2023 $ 0.46 8/15/2023 8/31/2023 $ 0.46 2/3/2022 $ 0.86 2/15/2022 2/28/2022 $ 0.43 8/15/2022 8/31/2022 $ 0.43 2/4/2021 $ 0.70 2/15/2021 2/26/2021 $ 0.35 8/15/2021 8/31/2021 $ 0.35 The Company anticipates the ongoing payment of semi-annual dividends in subsequent periods, although the actual declaration of future dividends, if any, 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 uncertain macroeconomic conditions on our results of operations and cash flows. Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss The following tables disclose the effects on accumulated other comprehensive loss of each component of other comprehensive income (loss), net of tax (in thousands): Attributable to PriceSmart Non-controlling Interests Total Ending balance, August 31, 2020 $ (176,820) $ 134 $ (176,686) Foreign currency translation adjustments (7,837) 117 (7,720) Defined benefit pension plans (1) (230) — (230) Derivative instruments (2) 2,252 — 2,252 Amounts reclassified from accumulated other comprehensive loss 127 — 127 Ending balance, August 31, 2021 $ (182,508) $ 251 $ (182,257) Foreign currency translation adjustments (19,034) 3 (19,031) Defined benefit pension plans (1) (341) — (341) Derivative instruments (2) 6,170 — 6,170 Amounts reclassified from accumulated other comprehensive loss 127 — 127 Sale of Aeropost — (254) (254) Ending balance, August 31, 2022 $ (195,586) $ — $ (195,586) Foreign currency translation adjustments 33,708 — 33,708 Defined benefit pension plans (1) (1,819) — (1,819) Derivative instruments (2) (443) — (443) Amounts reclassified from accumulated other comprehensive loss 148 — 148 Ending balance, August 31, 2023 $ (163,992) $ — $ (163,992) (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 13 - 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): August 31, August 31, Retained earnings not available for distribution $ 9,110 $ 8,648 Share Repurchase Program In July 2023 we announced a program authorized by our Board of Directors to repurchase up to $75 million of our common stock. Subsequent to our fiscal year that ended on August 31, 2023, we successfully completed the program. We purchased a total of approximately 1,007,000 shares of our common stock under the program. The repurchases were made on the open market pursuant to a trading plan established pursuant to Rule 10(b)5-1 under the Securities Exchange Act of 1934, as amended, which permits common stock to be repurchased at a time that we might otherwise be precluded from doing so under insider trading laws or self-imposed trading restrictions. We do not expect to continue repurchases or adopt a new repurchase plan at this time. However, the Board of Directors could choose to commence another program in the future at its discretion after its review of the Company’s financial performance and anticipated capital requirements. Share repurchase activity under the Company’s repurchase programs for the periods indicated was as follows (total cost in thousands): Years Ended August 31, August 31, Number of common shares acquired 71,530 — Average price per common share acquired $ 78.54 $ — Total cost of common share acquired $ 5,618 $ — |
POST EMPLOYMENT PLANS
POST EMPLOYMENT PLANS | 12 Months Ended |
Aug. 31, 2023 | |
Retirement Benefits [Abstract] | |
POST EMPLOYMENT PLANS | POST EMPLOYMENT PLANS Defined Contribution Plans PriceSmart offers a defined contribution 401(k) retirement plan to its U.S. employees, including warehouse club employees in the U.S. Virgin Islands, which auto-enrolls employees in the plan immediately on the first day of employment. The Company makes non-discretionary contributions to the 401(k) plan with a 4% “Company Contribution” based on the employee’s salary regardless of the employee’s own contributions to the plan up to the IRS maximum allowed. The Company also makes incremental non-discretionary contributions to the 401(k) plan to the employees who defer up to 2% of their salary. Employer contributions to the 401(k) plan for the Company's U.S. employees were $2.9 million during fiscal years 2023 and 2022, and $2.6 million during fiscal year 2021. PriceSmart also offers defined contribution retirement plans in many of its subsidiaries. The Company makes non-discretionary contributions to these plans based on the employee’s salary, regardless of the employee’s own contributions to the plan, up to the maximum allowed. The expenses associated with the plans for the Company’s non-U.S. employees were $4.5 million, $3.6 million and $3.0 million during fiscal years 2023, 2022 and 2021, respectively. Defined Benefit Plans The Company's subsidiaries located in three countries have unfunded post-employment benefit plans (defined benefit plans) in which the subsidiary is required to pay a specified benefit upon retirement, voluntary departure or death of the employee. The amount of the benefit is predetermined by a formula based on the employee's earnings history, tenure of service and age. Because the obligation to provide benefits arises as employees render the services necessary to earn the benefits pursuant to the terms of the plan, the Company recognizes the cost of providing the benefits over the projected employee service periods. These payments are only due if an employee reaches certain thresholds, such as tenure and/or age. Therefore, these plans are treated as defined benefit plans. For these defined benefit plans, the Company has engaged actuaries to assist with estimating the current costs associated with these future benefits. The liabilities for these unfunded plans are recorded as non-current liabilities. The following table summarizes the amount of the funding obligation and the line items in which it is recorded on the consolidated balance sheets as of August 31, 2023 and 2022 and consolidated statements of income for the fiscal years ended August 31, 2023, 2022 and 2021 (in thousands): Other Long-Term Accumulated Other Operating Expenses August 31, Year Ended August 31, 2023 2022 2023 2022 2023 2022 2021 Start of period $ (2,976) $ (2,298) $ 1,205 $ 897 $ — $ — $ — Service cost (303) (205) — — 365 315 229 Interest cost (139) (129) — — 139 129 104 Prior service cost (including amortization) — — (26) (36) 26 36 55 Actuarial gains/(losses) (2,425) (344) 2,425 344 122 92 72 Totals $ (5,843) $ (2,976) $ 3,604 $ 1,205 (1) $ 652 $ 572 $ 460 (1) The Company has recorded a deferred tax asset of $1,106,000 and $377,000 as of August 31, 2023 and 2022, respectively, relating to the unrealized expense on defined benefit plans. The Company also recorded accumulated other comprehensive loss, net of tax, for $(2,500,000) and $(829,000) as of August 31, 2023 and 2022, respectively. The primary driver of the recorded accumulated other comprehensive loss was a change in assumption for our Trinidad and Tobago post-employment benefit plan in which we expect less turnover from our employees. The valuation assumptions used to calculate the liability for the defined benefit plans differ based on the country where the plan applies. These assumptions are summarized as follows: Year Ended August 31, Valuation Assumptions: 2023 2022 Discount rate 4.6% to 6.4% 3.5% to 6.4% Future salary escalation 3.0% to 5.2% 3.0% to 4.5% Percentage of employees assumed to withdraw from Company without a benefit (“turnover”) 6.7% to 15.0% 6.7% to 15.0% Percentage of employees assumed to withdraw from Company with a benefit (“disability”) 0.5% to 1.5% 0.5% to 6.6% For the fiscal year ending August 31, 2024, the Company expects to recognize, as components of net periodic benefit cost, the following amounts currently recorded in accumulated other comprehensive loss (in thousands): Prior service cost $ 26 Amortization of actuarial loss 539 $ 565 Other Post-Employment Benefit Plans Some of the Company’s subsidiaries are parties to funded and unfunded post-employment benefit plans based on services that the employees have rendered. These plans require the Company to pay a specified benefit on retirement, voluntary departure or death of the employee, or monthly payments to an external fund manager. The amount of these payments is predetermined by a formula based on the employee's earnings history and tenure of service. Because the obligation to provide benefits arises as employees render the services necessary to earn the benefits pursuant to the terms of the plan, the cost associated with providing the benefits is recognized as the employee provides those services. The employees' rights to receive payment on these plans are not dependent on their reaching certain thresholds like age or tenure. Therefore, these plans are not treated as defined benefit plans. For these post-employment benefit plans, the Company has accrued liabilities that are recorded as accrued salaries and benefits and other long-term liabilities. The following table summarizes the amounts recorded on the balance sheet and amounts expensed on the consolidated statements of income (in thousands): Accrued Salaries Other Long-Term Liability Restricted Cash Held (1) Operating Expenses Years Ended August 31, 2023 2022 2023 2022 2023 2022 2023 2022 2021 Other Post Employment Plans $ 738 $ 522 $ 5,077 $ 4,567 $ 4,859 $ 4,382 $ 1,754 $ 1,423 $ 1,447 |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 12 Months Ended |
Aug. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK BASED COMPENSATION | 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”). Refer “Note 2 - Summary of Significant Accounting Policies.” The Company adopted the 2013 Equity Incentive Award Plan (the "2013 Plan") for the benefit of its eligible employees, consultants and non-employee directors on January 22, 2013. The 2013 Plan provides for awards covering up to 1.1 million shares of common stock plus the number of shares that remained available for issuance as of January 22, 2013 under three equity participation plans previously maintained by the Company. The 2013 plan was amended in fiscal years 2021 to increase the number of shares of Common Stock available for the grant of awards by 500,000 shares and further amended in fiscal year 2023 to increase the number of shares of Common Stock available for the grant of awards by an additional 750,000 shares. The number of shares reserved for issuance under the 2013 Plan increases during the term of the plan by the number of shares relating to awards outstanding under the 2013 Plan or any of the prior plans that expire, or are forfeited, terminated, canceled or repurchased, or are settled in cash in lieu of shares. However, in no event will more than an aggregate of 2,966,867 shares of the Company’s common stock be issued under the 2013 Plan. The following table summarizes the shares authorized and shares available for future grants: Shares available to grant Shares authorized for issuance as of August 31, 2023 August 31, August 31, 2013 Plan 2,317,923 1,223,574 549,319 The following table summarizes the components of the stock-based compensation expense for the twelve-month periods ended August 31, 2023, 2022 and 2021 (in thousands), which are included in general and administrative expense and warehouse club and other operations in the consolidated statements of income: Years Ended August 31, 2023 2022 2021 Restricted stock awards $ 10,641 $ 9,378 $ 11,010 Restricted stock units 3,701 3,519 3,939 Performance-based restricted stock units 2,232 3,906 3,475 Stock-based compensation expense $ 16,574 $ 16,803 $ 18,424 The following tables summarize other information related to stock-based compensation: Balance as of August 31, August 31, August 31, Remaining unrecognized compensation cost (in thousands) $ 15,386 $ 18,478 $ 16,349 Weighted average period of time over which this cost will be recognized (years) 2 2 2 Years Ended August 31, 2023 2022 2021 Excess tax benefit (deficiency) on stock-based compensation (in thousands) $ (2,787) $ (2,259) $ (778) The restricted stock awards and units generally vest over a three-year period and the unvested portion of the award is forfeited if the employee or non-employee director leaves the Company before the vesting period is completed. Restricted stock awards, restricted stock units, and performance-based restricted stock units activity for the twelve-months ended August 31, 2023, 2022 and 2021 was as follows: Years Ended August 31, August 31, August 31, Grants outstanding at beginning of period 361,822 375,622 415,869 Granted 365,850 261,204 166,160 Forfeited (118,577) (16,184) (12,436) Vested (266,354) (258,820) (193,971) Grants outstanding at end of period 342,741 361,822 375,622 The following table summarizes the weighted average per share grant date fair value for restricted stock awards, restricted stock units, and performance based restricted stock units for fiscal years 2023, 2022 and 2021: Weighted Average Grant Date Fair Value Years Ended August 31, August 31, August 31, RSAs, RSUs, and PSUs granted $ 63.93 $ 76.85 $ 79.02 RSAs, RSUs, and PSUs vested $ 70.26 $ 72.69 $ 70.03 RSAs, RSUs, and PSUs forfeited $ 66.14 $ 69.70 $ 70.56 The following table summarizes the total fair market value of restricted stock awards, restricted stock units, and performance based restricted stock units vested for the period (in thousands): Years Ended August 31, August 31, August 31, Total fair market value of restricted stock awards and units vested (in thousands) $ 19,325 $ 18,422 $ 17,478 At the vesting dates for restricted stock awards to employees, the Company repurchases a portion of the shares that have vested at the prior day's closing price per share, with the funds used to pay the employees' tax withholding requirements related to the vesting of restricted stock awards. The Company expects to continue this practice going forward. 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. The following table summarizes the equity securities repurchased during fiscal years 2023, 2022 and 2021 as part of the Company's stock-based compensation programs: Years Ended August 31, August 31, August 31, Shares repurchased 99,998 88,415 62,282 Cost of repurchase of shares (in thousands) $ 7,245 $ 6,259 $ 5,542 The Company reissues treasury shares as part of its stock-based compensation programs. The following table summarizes the treasury shares reissued during the period: Years Ended August 31, August 31, August 31, Reissued treasury shares 6,333 8,314 96,400 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Aug. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal Proceedings F rom 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. Income Taxes 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 (refer to “Note 10 - Income Taxes for additional information”). 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 August 31, 2023 and 2022, the Company has recorded within other accrued expenses and other current liabilities a total of $9.6 million and $1.1 million, respectively, for various non-income tax related tax contingencies. In the fourth quarter of fiscal year 2023, we recorded a $7.2 million charge to settle an AMT payment dispute in one of the aforementioned countries. Of this amount, $1.0 million is a reserve recorded against an income tax receivable for one of the tax years for which we sought a refund and the remaining $6.2 million is an accrual for the unpaid years of the dispute in which the Company made tax payments using the original computation based on taxable income. Additionally, as part of the settlement, the Company agreed to pay AMT on a go-forward basis and accrued $2.0 million for fiscal year 2023. 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. Other Commitments The Company is committed under non-cancelable operating leases for the rental of facilities and land. Refer to “Note 12 – Leases”. The Company also committed to non-cancelable construction service obligations for various warehouse club developments and expansions. As of August 31, 2023 and August 31, 2022, the Company had approximately $11.3 million and $16.5 million, respectively, in contractual obligations for construction services not yet rendered. As of August 31, 2023, the Company has signed one lease agreement which has not commenced related to the relocation of its warehouse club in Miraflores, Guatemala. As part of the agreement, the landlord has agreed to build a shell building which is estimated to be delivered in the first half of calendar year 2025. The lease will have a term of approximately 20 years and will commence upon delivery of the shell building to the Company. Per the lease agreement, the Company will pay monthly fixed base rent payments which increase annually based on the Consumer Price Index. The Company will also pay variable rent payments if the yearly warehouse sales for the location are in excess of a certain threshold. A collateralized incremental borrowing rate was used to determine the present value of estimated future minimum lease commitments. The present value of estimated future minimum lease commitments for this lease are as follows (in thousands): Years Ended August 31, Amount 2024 $ — 2025 276 2026 1,604 2027 1,558 2028 1,513 Thereafter 20,013 Total future lease payments $ 24,964 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 August 31, 2023, the Company had entered into four land purchase agreements that, if completed, would result in the use of approximately $14.0 million in cash. Lastly, the Company has one lease option agreement for one additional warehouse club. Refer to “Note 15 - Unconsolidated Affiliates” for a description of additional capital contributions that may be required in connection with joint ventures to develop commercial centers adjacent to PriceSmart warehouse clubs in Panama and Costa Rica. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Aug. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income from continuing operations before provision for income taxes and loss of unconsolidated affiliates includes the following components (in thousands): Years Ended August 31, 2023 2022 2021 United States $ 57,941 $ 55,667 $ 33,818 Foreign 111,270 100,754 113,368 Income from continuing operations before provision for income taxes and loss of unconsolidated affiliates $ 169,211 $ 156,421 $ 147,186 Significant components of the income tax provision are as follows (in thousands): Years Ended August 31, 2023 2022 2021 Current: U.S. tax expense $ 21,604 $ 20,824 $ 16,904 Foreign tax expense 41,639 34,334 35,918 Total $ 63,243 $ 55,158 $ 52,822 Deferred: U.S. tax benefit $ (11,958) $ (11,894) $ (10,212) U.S. valuation allowance change 12,598 11,823 9,777 Foreign tax benefit (3,935) (3,259) (3,125) Foreign valuation allowance change 3 30 (293) Total $ (3,292) $ (3,300) $ (3,853) Provision for income taxes $ 59,951 $ 51,858 $ 48,969 The reconciliation of income tax computed at the Federal statutory tax rate to the provision for income taxes is as follows (in percentages): Years Ended August 31, 2023 2022 2021 Federal tax provision at statutory rates 21.0 % 21.0 % 21.0 % State taxes, net of federal benefit 0.3 0.2 0.1 Differences in foreign tax rates 6.8 7.1 6.9 Permanent items and other adjustments (0.1) (2.6) (2.2) Increase in valuation allowance 7.4 7.5 7.5 Provision for income taxes 35.4 % 33.2 % 33.3 % Significant components of the Company’s deferred tax assets as of August 31, 2023 and 2022 are shown below (in thousands): August 31, 2023 2022 Deferred tax assets: Foreign tax credits $ 43,632 $ 32,322 Deferred compensation 1,664 1,782 U.S. timing differences 6,845 7,746 Foreign net operating losses 4,911 5,026 Foreign timing differences: Accrued expenses and other timing differences 9,365 9,937 Depreciation and amortization 15,160 13,019 Deferred income 7,338 7,749 Gross deferred tax assets 88,915 77,581 U.S. deferred tax liabilities (depreciation and other timing differences) (3,035) (2,273) Foreign deferred tax liabilities netted against deferred tax assets (5,552) (8,697) U.S. valuation allowance (43,860) (33,824) Foreign valuation allowance (4,430) (4,432) Net deferred tax assets $ 32,038 $ 28,355 For fiscal year 2023, the effective tax rate was 35.4%. The increase in the effective rate versus the prior year was primarily attributable to the comparably favorable impact of 2.0% due to a greater portion of income falling into lower tax jurisdictions, offset by the comparably unfavorable impact of 1.8% from the AMT settlement and 2.2% from asset impairment and related closure costs. For fiscal year 2023, management concluded that a valuation allowance continues to be necessary for certain U.S. and foreign deferred tax assets primarily because of the existence of negative objective evidence, such as the fact that certain subsidiaries are in a cumulative loss position for the past three years, and the determination that certain net operating loss carryforward periods are not sufficient to realize the related deferred tax assets. The Company factored into its analysis the inherent risk of forecasting revenue and expenses over an extended period of time and also considered the potential risks associated with its business. The Company had net foreign deferred tax assets of $26.8 million and $22.6 million as of August 31, 2023 and 2022, respectively. The Company does not provide for income taxes which would be payable if undistributed earnings of its foreign subsidiaries were remitted to the U.S. The Company considers earnings to be permanently reinvested for any jurisdiction where distribution from a foreign affiliate would cause additional tax cost, and management has no plans to repatriate the related undistributed earnings and profits from these foreign affiliates. As of August 31, 2023 and 2022 the undistributed earnings of these foreign subsidiaries are approximately $369.6 million and $335.5 million, respectively. The Company accrues for the estimated additional amount of taxes for uncertain income tax positions if the likelihood of sustaining the tax position does not meet the more-likely-than-not-standard for recognition of tax benefits. These positions are recorded as unrecognized tax benefits. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Years Ended August 31, 2023 2022 2021 Balance at beginning of fiscal year $ 5,041 $ 3,911 $ 4,573 Gross increase - tax positions in prior period 35 264 135 Gross decrease - tax positions in prior period — — (306) Additions based on tax positions related to the current year 143 1,356 333 Expiration of the statute of limitations for the assessment of taxes (474) (490) (824) Balance at end of fiscal year $ 4,745 $ 5,041 $ 3,911 As of August 31, 2023, the liability for income taxes associated with unrecognized tax benefits was $4.7 million and can be reduced by $1.4 million of tax benefits recorded as deferred tax assets and liabilities. The total $4.7 million unrecognized tax benefit includes $300,000 of associated timing adjustments. The net amount of $4.4 million would, if recognized, favorably affect the Company's financial statements and favorably affect the Company's effective income tax rate. The Company recognizes interest and/or penalties related to unrecognized tax benefits in income tax expense. As of August 31, 2023 and 2022, the Company had accrued an additional $1.6 million and $1.5 million, respectively, for the payment of interest and penalties related to the above-mentioned unrecognized tax benefits. The Company expects changes in the amount of unrecognized tax benefits in the next 12 months as the result of a lapse in various statutes of limitations. The lapse of statutes of limitations in the twelve-month period ending August 31, 2023 could result in a total income tax benefit amounting up to $600,000. The Company has various appeals pending before tax courts in its subsidiaries' jurisdictions. Any possible settlement could increase or decrease earnings but is not expected to be significant. Audit outcomes and the timing of audit settlements are subject to significant uncertainty. In two countries where the Company operates, minimum income tax rules require the Company to pay taxes based on a percentage of sales if the resulting tax were greater than the tax payable based on a percentage of income (AMT). As a result, the Company is making AMT payments substantially in excess of those it would expect to pay based on taxable income. The Company had income tax receivables of $10.7 million and $11.0 million as of August 31, 2023 and August 31, 2022, respectively, and deferred tax assets of $3.7 million and $3.5 million as of August 31, 2023 and August 31, 2022, respectively, in these countries. In the fourth quarter of fiscal year 2023, we recorded a $7.2 million charge to settle the AMT payment dispute in one of the aforementioned countries, $1.0 million of which was a reserve for an income tax receivable for one of the tax years for which we sought a refund and the remaining $6.2 million is an accrual for the unpaid years of the dispute in which the Company made tax payments using the original computation based on taxable income. 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 the remaining tax receivables, deferred tax assets or amounts that may be deemed under-paid, because the Company believes that it is more likely than not that it will ultimately succeed in its refund requests and appeals of these rules. The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The Company is generally no longer subject to income tax examinations by tax authorities in its major jurisdictions except for the fiscal years subject to audit as set forth in the table below: Tax Jurisdiction Fiscal Years Subject to Audit U.S. federal 2005, 2007, 2014* to 2017*, 2018, 2020 to the present California (U.S.) (state return) 2005 and 2019 to the present Florida (U.S.) (state return) 2011* to 2018*, 2020 to the present Aruba 2018 to the present Barbados 2017 to the present Costa Rica 2011 to 2012, 2015 to 2016, 2019 to the present Colombia 2017 to the present Dominican Republic 2011 to 2012, 2016, 2020 to the present El Salvador 2019 to the present Guatemala 2012 to 2013, 2019 to the present Honduras 2018 to the present Jamaica 2017 to the present Mexico 2019 to the present Nicaragua 2019 to the present Panama 2018 to the present Trinidad 2016 to the present U.S. Virgin Islands 2001 to the present Spain 2020 to the present Chile 2020* to the present *Aeropost only Generally for U.S. federal and U.S. Virgin Islands tax reporting purposes, the statute of limitations is three years from the date of filing of the income tax return. If and to the extent the tax year resulted in a taxable loss, the statute is extended to three years from the filing date of the income tax return in which the carryforward tax loss was used to offset taxable income in the carryforward year. Given the historical losses in these jurisdictions and the Section 382 change in control limitations on the use of the tax loss carryforwards, there is uncertainty and significant variation as to when a tax year is no longer subject to audit. |
DEBT
DEBT | 12 Months Ended |
Aug. 31, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Short-term borrowings consist of unsecured lines of credit and short-term overdraft borrowings. The following table summarizes the balances of total facilities, facilities used and facilities available (in thousands): Total Amount Facilities Used Facilities Weighted average Short-term Letters of August 31, 2023 - Committed $ 75,000 — — 75,000 —% August 31, 2023 - Uncommitted 91,000 8,376 — 82,624 13.2 August 31, 2023 - Overdraft Used (Uncommitted) — 303 — — 12.0 August 31, 2023 - Total $ 166,000 $ 8,679 $ — $ 157,624 12.7% August 31, 2022 - Committed $ 75,000 — 73 74,927 —% August 31, 2022 - Uncommitted 91,000 10,608 — 80,392 5.3 August 31, 2022 - Total $ 166,000 $ 10,608 $ 73 $ 155,319 5.3% As of August 31, 2023 and August 31, 2022, 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. One of these facilities is a committed credit agreement with one bank for $75.0 million . In exchange for the bank’s commitment to fund any drawdowns the Company requests, the Company pays an annual commitment fee of 0.25%, payable quarterly, on any unused portion of this facility. Additionally, the Company has uncommitted facilities in most of the countries where it operates, with drawdown requests subject to approval by the individual banks each time a drawdown is requested. The following table provides the changes in long-term debt for the twelve months ended August 31, 2023: (Amounts in thousands) Current Long-term Total Balances as of August 31, 2021 $ 19,395 $ 110,110 $ 129,505 (1) Proceeds from long-term debt received during the period: Guatemala subsidiary — 4,204 4,204 Trinidad subsidiary 4,924 21,505 26,429 Total proceeds from long-term debt received during the period 4,924 25,709 30,633 Repayments of long-term debt: (8,110) (14,587) (22,697) Reclassifications of long-term debt due in the next 12 months 17,618 (17,618) — Translation adjustments on foreign currency debt of subsidiaries whose functional currency is not the U.S. dollar (2) (112) (58) (170) Balances as of August 31, 2022 33,715 103,556 137,271 (3) Proceeds from long-term debt received during the period: Guatemala subsidiary — 12,454 12,454 Barbados subsidiary — 7,460 7,460 Honduras subsidiary 1,001 12,798 13,799 Trinidad subsidiary 750 4,250 5,000 Total proceeds from long-term debt received during the period 1,751 36,962 38,713 Repayments of long-term debt: (17,541) (18,443) (35,984) Reclassifications of long-term debt due in the next 12 months 1,729 (1,729) — Translation adjustments on foreign currency debt of subsidiaries whose functional currency is not the U.S. dollar (2) 539 (859) (320) Balances as of August 31, 2023 $ 20,193 $ 119,487 $ 139,680 (4) (1) The carrying amount of non-cash assets assigned as collateral for these loans was $153.5 million. The carrying amount of cash assets assigned as collateral for these loans was $7.0 million. (2) These foreign currency translation adjustments are recorded within other comprehensive loss. (3) The carrying amount of non-cash assets assigned as collateral for these loans was $155.6 million. The carrying amount of cash assets assigned as collateral for these loans was $5.3 million. (4) The carrying amount of non-cash assets assigned as collateral for these loans was $156.2 million. The carrying amount of cash assets assigned as collateral for these loans was $3.5 million. The following table provides a summary of the long-term loans entered into by the Company: August 31, August 31, Loans entered into by the Company's subsidiaries for which the subsidiary has entered into a cross-currency interest rate swap with non-cash assets and/or cash or cash equivalents assigned as collateral and with/without established debt covenants $ 23,099 $ 33,853 Loans entered into by the Company's subsidiaries for which the subsidiary has entered into an interest rate swap with non-cash assets and/or cash or cash equivalents assigned as collateral and with/without established debt covenants 30,069 39,969 Unhedged loans entered into by the Company's subsidiaries with non-cash assets and/or cash or cash equivalents assigned as collateral and with/without established debt covenants 86,512 63,449 Total long-term debt 139,680 137,271 Less: current portion 20,193 33,715 Long-term debt, net of current portion $ 119,487 $ 103,556 As of August 31, 2023 and August 31, 2022, the Company had approximately $91.2 million and $110.7 million, respectively, of long-term loans in several foreign subsidiaries which require these entities 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. The net increase in long-term debt during the twelve months ended August 31, 2023 is primarily attributable to loans entered into by the Company’s Honduras, Guatemala, Barbados, and Trinidad subsidiaries, and offset by payments on its long-term debt. Annual maturities of long-term debt are as follows (in thousands): Twelve Months Ended August 31, Amount 2024 $ 20,193 2025 36,151 2026 18,450 2027 33,188 2028 17,512 Thereafter 14,186 Total $ 139,680 |
LEASES
LEASES | 12 Months Ended |
Aug. 31, 2023 | |
Leases [Abstract] | |
LEASES | LEASES In accordance with ASC 842, the Company determines if an arrangement is a lease at inception or modification of a contract and classifies each lease as either operating or finance lease at commencement. The Company only reassesses lease classification subsequent to commencement upon a change to the expected lease term or the contract being modified. As of August 31, 2023, the Company only has operating leases for its clubs, distribution centers, office space, and land. Operating leases, net of accumulated amortization, are included in operating lease right of use (“ROU”) assets, and current and non-current operating lease liabilities, on the Company’s consolidated balance sheets. Lease expense for operating leases is included in selling, general and administrative expense on the Company’s consolidated statements of income. Leases with an initial term of twelve months or less are not recorded on the Company’s consolidated balance sheet. The Company is generally obligated for the cost of property taxes, insurance, and maintenance relating to its leases, which are often variable lease payments. Such costs are included in selling, general and administrative expense in the consolidated statements of income. Certain of the Company's lease agreements provide for lease payments based on future sales volumes at the leased location, or include rental payments adjusted periodically for inflation or based on an index, which are not measurable at the inception of the lease. The Company expenses such variable amounts in the period incurred, which is the period in which it becomes probable that the specified target that triggers the variable lease payments will be achieved. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. ROU assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the reasonably certain lease term. The operating lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option or if an economic penalty may be incurred if the option is not exercised. The initial lease term of the Company’s operating leases range from two Where the Company's leases do not provide an implicit rate, a collateralized incremental borrowing rate ("IBR") is used to determine the present value of lease payments. The IBR is based on a yield curve derived by publicly traded bond offerings for companies with similar credit characteristics that approximate the Company's market risk profile. In addition, we adjust the IBR for jurisdictional risk derived from quoted interest rates from financial institutions to reflect the cost of borrowing in the Company’s local markets. The following table is a summary of the Company’s components of total lease costs for fiscal year 2023 and 2022 (in thousands): Years Ended August 31, 2023 2022 Operating lease cost $ 15,753 $ 15,632 Short-term lease cost 162 49 Variable lease cost 5,034 4,376 Sublease income (91) (180) Total lease costs $ 20,858 $ 19,877 The weighted average remaining lease term and weighted average discount rate for operating leases as of August 31, 2023 and August 31, 2022 were as follows: Years Ended August 31, 2023 2022 Weighted average remaining lease term in years 17.8 18.3 Weighted average discount rate percentage 6.8 % 6.7 % Supplemental cash flow information related to leases under which the Company is the lessee was as follows (amounts in thousands): Years Ended August 31, 2023 2022 Operating cash flows paid for operating leases $ 15,753 $ 14,885 The Company is committed under non-cancelable operating leases for the rental of facilities and land. Future minimum lease commitments for facilities under these leases with an initial term in excess of one year are as follows (in thousands): Years Ended August 31, Leased 2024 $ 15,502 2025 15,244 2026 13,711 2027 11,520 2028 11,028 Thereafter 166,398 Total future lease payments 233,403 Less imputed interest (103,587) Total operating lease liabilities $ 129,816 |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended |
Aug. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 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 or SOFR 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 one 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 the 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. Cash Flow Hedges As of August 31, 2023, 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 twelve months ended August 31, 2023: Entity Date Derivative Derivative Initial Bank Floating Leg Fixed Rate Settlement Effective Colombia subsidiary 12-Apr-23 Citibank, N.A. ("Citi") Cross currency interest rate swap $10,000,000 PriceSmart, Inc. 4.00% 11.40 % 11th day of each July, October, January and April, beginning on July 11, 2023 April 12, 2023 - April 11, 2028 Colombia subsidiary 26-Sep-22 Citibank, N.A. ("Citi") Cross currency interest rate swap $12,500,000 PriceSmart, Inc. 3.00% 10.35 % 24th day of each December, March, June and September beginning December 26, 2022 September 26, 2022 - September 24, 2024 Colombia subsidiary 3-May-22 Citibank, N.A. ("Citi") Cross currency interest rate swap $10,000,000 PriceSmart, Inc. 3.00% 9.04 % 3rd day of each May, August, November and February, beginning on August 3, 2022 May 3, 2022 - May 3, 2027 Colombia subsidiary 17-Nov-21 Citibank, N.A. ("Citi") Cross currency interest rate swap $10,000,000 PriceSmart, Inc. 3.00% 8.40 % 17th day of each February, May, August, and November, beginning on February 17, 2022 November 17, 2021 - November 18, 2024 Colombia subsidiary 03-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 March 3, 2020 December 3, 2019 - December 3, 2024 Colombia subsidiary 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 PriceSmart, Inc. 07-Nov-16 MUFG Union Bank, N.A. ("Union Bank") Interest rate swap $35,700,000 Union Bank Variable rate 3-month Libor plus 1.70% 3.65 % 1st day of each month beginning on April 1, 2017 March 1, 2017 - March 1, 2027 For the twelve-month periods ended August 31, 2023, 2022 and 2021, 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 year ended August 31, 2023 $ 4,630 $ 1,205 $ 5,835 Interest expense for the year ended August 31, 2022 $ 2,577 $ 3,234 $ 5,811 Interest expense for the year ended August 31, 2021 $ 2,619 $ 3,655 $ 6,274 (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): Floating Rate Payer (Swap Counterparty) Notional Amount as of August 31, August 31, Union Bank $ 30,069 $ 31,344 Citibank N.A. 65,599 66,353 Scotiabank — 8,625 Total $ 95,668 $ 106,322 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): Derivatives designated as cash flow hedging instruments Balance Sheet August 31, 2023 August 31, 2022 Fair Net Tax Net Fair Net Tax Net Cross-currency interest rate swaps Other current assets $ — $ — $ — $ 2,736 $ (348) $ 2,388 Cross-currency interest rate swaps Other non-current assets 5,574 (1,950) 3,624 10,289 (4,559) 5,730 Cross-currency interest rate swaps Other current liabilities — — — (82) 25 (57) Cross-currency interest rate swaps Other long-term liabilities (3,321) 1,162 (2,159) — — — Interest rate swaps Other non-current assets 2,243 (501) 1,742 1,596 (6) 1,590 Net fair value of derivatives designated as hedging instruments $ 4,496 $ (1,289) $ 3,207 $ 14,539 $ (4,888) $ 9,651 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. The following table summarizes the non-deliverable forward foreign exchange contracts that are open as of August 31, 2023: Financial Subsidiary Dates Derivative Total Notional Settlement Scotiabank Colpatria, S.A. Colombia 11-Jan-2023 - 19-Jul-2023 Forward foreign exchange contracts (USD) $ 8,500 8-Sep-2023 - 24-Jan-2024 Citibank, N.A. ("Citi") Colombia 18-Jan-2023 - 31-Aug-2023 Forward foreign exchange contracts (USD) $ 13,000 18-Sep-2023 - 24-Apr-2024 Forward derivative gains and (losses) on non-deliverable forward foreign-exchange contracts are included in Other income (expense), net in the consolidated statements of income in the period of change, but the amounts were immaterial for the twelve months ended August 31, 2023, 2022, and 2021. |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 12 Months Ended |
Aug. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED-PARTY TRANSACTIONS | RELATED-PARTY TRANSACTIONS Relationships with Edgar Zurcher: Mr. Zurcher is also a director of a company that owns 40% of Payless ShoeSource Holdings, Ltd., which rents retail space from the Company. The Company recorded approximately $718,000, $927,000, and $1.4 million in rental income for this space during the fiscal years ended 2023, 2022 and 2021. Additionally, Mr. Zurcher is a director of Molinos de Costa Rica S.A. The Company paid approximately $1.9 million for products purchased from this entity for the fiscal year ended August 31, 2023, and $1.1 million for products purchased for each of the fiscal years ended August 31, 2022, and 2021, respectively. Relationships with Price Family Charitable Organizations: During the years ended August 31, 2023, 2022 and 2021, the Company sold approximately $1.0 million, $438,000, and $1.6 million, respectively, of supplies to Price Philanthropies Foundation. Robert Price, Chairman of the Company's Board of Directors and Interim Chief Executive Officer of the Company, is the Chairman of the Board and President of the Price Philanthropies Foundation. Sherry S. Bahrambeygui, a director of the Company, serves as a director of the Board of the Price Philanthropies Foundation. Jeffrey R. Fisher, a director of the Company, serves as the Chief Financial Officer and as a director of the Board of the Price Philanthropies Foundation. David Price, a director and the Executive Vice President and Chief Transformation Officer of the Company, serves as a Vice President and a Vice Chair of the Board of the Price Philanthropies Foundation. Relationship with Golf Park Plaza, S.A.: Golf Park Plaza, S.A. is a real estate joint venture located in Panama, entered by the Company in 2008 (see Note 15 - Unconsolidated Affiliate). On December 12, 2013, the Company entered into a lease agreement for approximately 17,976 square feet (1,670 square meters) of land with Golf Park Plaza, S.A. upon which the Company constructed its central offices in Panama. The lease term is for 15 years with three options to renew for five years each at the Company's discretion. On July 14, 2017, the Company entered into a lease agreement for approximately 2,992 square feet (278 square meters) of a building with Golf Park Plaza, S.A. for warehouse storage space. The agreement was recently renewed for an additional five years during fiscal year 2022. Combined, the Company recognized $140,000 in rent expense for the fiscal year ended August 31, 2023, $149,000 in rent expense for the fiscal year ended August 31, 2022, and $149,800 in rent expense for the fiscal year ended August 31, 2021. Relationship with Robert Price: On February 3, 2023, Robert E. Price, a Company founder and Chairman of the Board, became Interim Chief Executive Officer. Mr. Price has elected not to receive compensation for his role as Interim Chief Executive Officer. Therefore, the financial statements do not include compensation charges for his services. We have estimated the fair value of these services, based on a number of factors, to be approximately $5.1 million on an annual basis. We acknowledge that this may not be representative of what ultimately could be the cost to the Company when a replacement Chief Executive Officer is hired. |
UNCONSOLIDATED AFFILIATES
UNCONSOLIDATED AFFILIATES | 12 Months Ended |
Aug. 31, 2023 | |
UNCONSOLIDATED AFFILIATES [Abstract] | |
UNCONSOLIDATED AFFILIATES | UNCONSOLIDATED AFFILIATES 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 the power to direct the VIE’s activities that most significantly impact the VIE’s economic performance and has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The reporting entity that consolidates a VIE is called the primary beneficiary of that VIE. In 2008, the Company entered into real estate joint ventures to jointly own and operate separate commercial retail centers adjacent to warehouse clubs in Panama (GolfPark Plaza, S.A.) and Costa Rica (Price Plaza Alajuela PPA, S.A.). Due to the initial nature of the joint ventures and the continued commitments for additional financing, the Company determined these joint ventures are VIEs. Since all rights, obligations and the power to direct the activities of a VIE that most significantly impact the VIE's economic performance is shared equally by both parties within each joint venture, 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. On December 12, 2013, the Company entered into a lease agreement for approximately 17,976 square feet (1,670 square meters) of land with Golf Park Plaza, S.A. upon which the Company constructed its central offices in Panama. Construction of the offices was completed in October 2014. The lease term is for 15 years with three options to renew for five years each at the Company's discretion. On July 14, 2017, the Company entered into a lease agreement for approximately 2,992 square feet (278 square meters) of a building with Golf Park Plaza, S.A. for warehouse storage space. The agreement was recently renewed for an additional five years during fiscal year 2022. Combined, the Company recognized $140,000 in rent expense for the fiscal year ended August 31, 2023, $149,000 in rent expense for the fiscal year ended August 31, 2022, and $149,800 in rent expense for the fiscal year ended August 31, 2021. The table below summarizes the Company’s interest in these VIEs and the Company’s maximum exposure to loss as a result of its involvement with these VIEs as of August 31, 2023 (in thousands): Entity % Initial Additional Net Income (Loss) Company’s Commitment to Future Additional Investments (1) Company's Maximum Exposure to Loss in Entity (2) GolfPark Plaza, S.A. 50 % $ 4,616 $ 2,402 $ (98) $ 6,920 $ 99 $ 7,019 Price Plaza Alajuela PPA, S.A. 50 % 2,193 1,236 130 3,559 785 4,344 Total $ 6,809 $ 3,638 $ 32 $ 10,479 $ 884 $ 11,363 (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. The summarized financial information of the unconsolidated affiliates is as follows (in thousands): August 31, August 31, Current assets $ 1,654 $ 1,839 Noncurrent assets $ 10,324 $ 10,109 Current liabilities $ 158 $ 175 Noncurrent liabilities $ 9 $ 8 Years Ended August 31, 2023 2022 2021 PriceSmart’s share of the net loss of unconsolidated affiliates $ (55) $ (10) $ (58) |
SEGMENTS
SEGMENTS | 12 Months Ended |
Aug. 31, 2023 | |
Segment Reporting [Abstract] | |
SEGMENTS | SEGMENTS The Company and its subsidiaries are principally engaged in the international operation of membership shopping in 51 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, which are used by management 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 management. 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 Central Caribbean Operations (1) Colombia Operations Reconciling Items (2) Total Year Ended August 31, 2023 Revenue from external customers $ 31,741 $ 2,671,083 $ 1,269,307 $ 439,711 $ — $ 4,411,842 Intersegment revenues 1,538,588 27,709 5,621 4,466 (1,576,384) — Depreciation, Property and equipment 5,482 37,053 19,188 10,210 — 71,933 Amortization, Intangibles 765 — — — — 765 Operating income (loss) 29,844 191,721 87,223 15,467 (139,739) 184,516 Interest income from external sources 3,604 3,977 2,135 155 — 9,871 Interest income from intersegment sources 2,454 1,603 253 — (4,310) — Interest expense from external sources 1,165 2,664 3,251 3,940 — 11,020 Interest expense from intersegment sources 75 1,258 1,041 1,939 (4,313) — Provision (benefit) for income taxes 23,283 28,045 9,873 (1,250) — 59,951 Net income attributable to PriceSmart, Inc. 9,540 159,014 68,635 11,755 (139,739) 109,205 Long-lived assets (other than deferred tax assets) 71,919 566,139 210,000 205,295 — 1,053,353 Goodwill 8,981 24,083 10,046 — — 43,110 Investment in unconsolidated affiliates — 10,479 — — — 10,479 Total assets 302,115 995,881 425,145 282,467 — 2,005,608 Capital expenditures, net 10,204 79,526 24,234 29,948 — 143,912 Year Ended August 31, 2022 Revenue from external customers $ 48,716 $ 2,382,163 $ 1,156,607 $ 478,607 $ — $ 4,066,093 Intersegment revenues 1,492,648 22,119 5,857 3,600 (1,524,224) — Depreciation, Property and equipment 4,719 34,155 17,061 10,320 — 66,255 Amortization, Intangibles 1,613 — — — — 1,613 Operating income (loss) 23,364 171,119 79,022 22,526 (128,965) 167,066 Interest income from external sources 147 1,115 863 76 — 2,201 Interest income from intersegment sources 1,789 1,954 255 — (3,998) — Interest expense from external sources 1,225 3,107 2,163 3,116 — 9,611 Interest expense from intersegment sources 27 1,187 1,821 899 (3,934) — Provision for income taxes 19,629 23,396 8,106 727 — 51,858 Net income attributable to PriceSmart, Inc. 8,292 144,159 62,799 18,268 (128,984) 104,534 Long-lived assets (other than deferred tax assets) 70,978 498,204 218,021 175,194 — 962,397 Intangibles, net 765 — — — — 765 Goodwill 8,981 24,250 10,072 — — 43,303 Investment in unconsolidated affiliates — 10,534 — — — 10,534 Total assets 230,411 867,898 474,411 235,680 — 1,808,400 Capital expenditures, net 5,119 46,959 36,610 33,654 — 122,342 Year Ended August 31, 2021 Revenue from external customers $ 88,397 $ 2,105,856 $ 1,004,793 $ 420,825 $ — $ 3,619,871 Intersegment revenues 1,280,236 17,861 5,087 3,869 (1,307,053) — Depreciation, Property and equipment 6,970 31,319 15,432 8,858 — 62,579 Amortization, Intangibles 2,404 — — — — 2,404 Operating income (loss) 12,687 151,933 74,769 21,932 (103,301) 158,020 Interest income from external sources 13 878 985 103 — 1,979 Interest income from intersegment sources 2,130 2,393 483 — (5,006) — Interest expense from external sources 1,606 2,831 427 2,346 — 7,210 Interest expense from intersegment sources 34 1,286 2,647 298 (4,265) — Provision for income taxes 15,919 22,661 8,006 2,383 — 48,969 Net income (loss) attributable to PriceSmart, Inc. (4,777) 127,879 61,025 17,333 (103,497) 97,963 Long-lived assets (other than deferred tax assets) 79,404 490,099 197,030 164,970 — 931,503 Intangibles, net 7,762 — — — — 7,762 Goodwill 10,695 24,332 10,068 — — 45,095 Investment in unconsolidated affiliates — 10,544 — — — 10,544 Total assets 246,896 795,940 434,428 228,526 — 1,705,790 Capital expenditures, net 9,061 45,524 23,342 28,181 — 106,108 (1) Management considers its club in the U.S. Virgin Islands to be part of its Caribbean operations. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Aug. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTSThe Company has evaluated all events subsequent to the balance sheet date of August 31, 2023 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 (Policies) | 12 Months Ended |
Aug. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation – The consolidated financial statements have been prepared in accordance with the instructions to Form 10-K for annual financial reporting pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) and U.S. generally accepted accounting principles (“GAAP”) for annual financial information. The 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. |
Principles of Consolidation | Principles of Consolidation – The 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 non-controlling interests. The Company reports non-controlling interests in consolidated entities as a component of equity separate from the Company’s equity. The 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 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 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 August 31, 2023 are listed below: Real Estate Development Joint Ventures Countries Ownership Basis of 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. |
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 consolidated financial statements and accompanying notes. These estimates and assumptions take into account historical and forward-looking factors that the Company believes are reasonable. Actual results could differ from those estimates and assumptions. |
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. In addition, the Company invests some of our cash in money market funds which are considered equity securities and are held at fair value in Cash and cash equivalents on the Consolidated Balance Sheets. The fair value of money market funds held was $100.2 million as of August 31, 2023 and $6.6 million as of August 31, 2022. We receive interest payments from the money market funds which are recorded in the Interest income line item under the Other expense caption within the Consolidated Statements of Income. |
Restricted Cash | Restricted Cash – The following table summarizes the restricted cash reported by the Company (in thousands): August 31, August 31, Short-term restricted cash $ 2,865 $ 3,013 Long-term restricted cash 9,353 10,650 Total restricted cash (1) $ 12,218 $ 13,663 (1) Restricted cash consists of cash deposits held within banking institutions in compliance with federal regulatory requirements in Costa Rica and Panama. In addition, the Company is required to maintain a certificate of deposit and/or security deposits of Trinidad dollars, as measured in U.S dollars, of approximately $6.4 million with a few of its lenders as compensating balances for several U.S. dollar and euro denominated loans payable over several years. The certificates of deposit will be reduced annually commensurate with the loan balances. |
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 | Goodwill – Goodwill totaled $43.1 million as of August 31, 2023 and $43.3 million as of August 31, 2022. The Company reviews reported goodwill at the reporting 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. The changes in the carrying amount of goodwill for the year ended August 31, 2023 are as follows (in thousands): Amount Goodwill at August 31, 2022 $ 43,303 Foreign currency exchange rate changes (193) Goodwill at August 31, 2023 $ 43,110 Amount Other intangibles at August 31, 2022 $ 765 Amortization (765) Net other intangibles at August 31, 2023 $ — Total goodwill and other intangibles, net August 31, 2023 $ 43,110 |
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. Additionally, we are occasionally required to make payments for tax assessments that we are appealing, because we believe it is more likely than not we will ultimately prevail. |
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. The 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 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, including transaction costs and excise taxes, 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 twelve months ended August 31, 2023, the Company reissued approximately 6,333 treasury shares. |
Fair Value Measurements | Fair Value Measurements – The Company measures the fair value for all financial and non-financial 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. ASC 820, Fair Value Measurements and Disclosures, sets forth a fair value hierarchy that categorizes inputs to valuation techniques used to measure and revalue 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. During fiscal year 2023, we recorded impairment charges of $4.8 million to mark our available-for-sale assets down to their fair market value. The disclosure of fair value of certain financial assets and liabilities recorded at cost is as follows: Cash and cash equivalents: The carrying value approximates fair value due to the short maturity of these instruments. The carrying value of our money market funds is the fair value based on quoted prices in active markets at the measurement date and therefore are classified as Level 1 inputs. The fair value of money market funds held was $100.2 million as of August 31, 2023 and $6.6 million as of August 31, 2022. Short-term restricted cash: The carrying value approximates fair value due to the short maturity of these instruments. Short-term investments: Short-term investments consists of certificates of deposit and similar time-based deposits with financial institutions with maturity dates over three months and up to twelve months. The carrying value approximates fair value due to the maturity of the underlying certificates of deposit within the normal operating cycle of the Company. Long-term investments: Long-term investments consists of certificates of deposit and similar time-based deposits with financial institutions with maturity dates over one year. The carrying value approximates fair value due to the maturity of the underlying certificates of deposit. Long-term restricted cash: Long-term restricted cash primarily consists of certificates of deposit with maturity dates of over a year, which are held as collateral against our long-term debt. The carrying value approximates fair value due to the maturity of the underlying certificates of deposit. Accounts receivable: 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. Short-term VAT and income tax receivables: The carrying value approximates fair value due to the short maturity of these accounts. Long-term VAT and income tax receivables: The fair value of long-term receivables would normally be measured using a discounted cash flow analysis based on the current market interest rates for similar types of financial instruments, with an estimate of the time these receivables are expected to be outstanding. The Company is not able to provide an estimate as to the time these receivables owed to the Company by various government agencies are expected to be outstanding; therefore, the Company has not presented a fair value on the long-term VAT and income tax receivables. Short-term debt: The carrying value approximates fair value due to the short maturity of these instruments. Long-term debt: The fair value of debt is generally measured using a discounted cash flow analysis based on current market interest rates for similar types of financial instruments. These inputs are not quoted prices in active markets but they are either directly or indirectly observable; therefore, they are classified as Level 2 inputs. The carrying value and fair value of the Company’s debt as of August 31, 2023 and August 31, 2022 is as follows (in thousands): August 31, 2023 August 31, 2022 Carrying Fair Value (1) Carrying Fair Value (1) Long-term debt, including current portion $ 139,680 $ 133,150 $ 137,271 $ 136,479 (1) The Company has disclosed the fair value of long-term debt, including debt for which it has entered into cross-currency interest rate swaps, using the derivative obligation as of August 31, 2023 to estimate the fair value of long-term debt, which includes the effects that the cross-currency interest rate swaps have had on the fair value of long-term debt. |
Derivatives Instruments and Hedging Activities | Derivative 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 13 - Derivative Instruments and Hedging Activities” for information on the fair value of interest rate swaps and cross-currency interest rate swaps as of August 31, 2023 and August 31, 2022. 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. |
Revenue Recognition | Revenue Recognition – The accounting policies and other disclosures such as the disclosure of disaggregated revenues are described in “Note 3 – Revenue Recognition.” The Company uses the five-step model to recognize revenue according to Accounting Standards Codification (ASC) Topic 606, “Revenue Recognition from Contracts with Customers.” The five steps are: • Identify the contract with the customer; • Identity the performance obligation(s); • Determine the transaction price; • Allocate the transaction price to each performance obligation if multiple obligations exist; and • Recognize the revenue as the performance obligations are satisfied. 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 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. Until the disposal of Aeropost in the first quarter of fiscal year 2022, the Company recognized non-merchandise revenue, net of sales taxes, on transactions where the Company had determined that it was the agent in the transaction. These transactions primarily consisted of contracts the Company entered into with its customers to provide delivery, insurance and customs processing services for products its customers purchased online in the United States either directly from other vendors utilizing the vendor’s website or through the Company’s marketplace site. Revenue was recognized when the Company’s performance obligations were completed (that is when delivery of the items have been made to the destination point) and was recorded in “non-merchandise revenue” on the consolidated statements of income. Prepayment for orders for which the Company had not fulfilled its performance obligation were recorded as deferred income. Additionally, the Company recorded 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 was acting as an agent and was 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 for 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 markets. 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 cards; therefore, the Company assumes a 100% redemption rate prior to expiration of the gift card. The Company periodically reviews unredeemed outstanding gift cards, and the gift cards 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. Determining the Transaction Price The transaction price is the amount of consideration the Company expects to receive under the arrangement. The Company is required to estimate variable consideration (if any) and to factor that estimate into the determination of the transaction price. The Company may offer sales incentives to customers, including discounts. For retail transactions, the Company has significant experience with returns and refund patterns and relied on this experience in its determination that expected returns are not material; therefore, returns are not factored when determining the transaction price. Discounts given to customers are usually in the form of coupons and instant markdowns and are recognized as redeemed and recorded in contra revenue accounts, as they are part of the transaction price of the merchandise sale. Manufacturer coupons that are available for redemption at all retailers are not recorded as a reduction to the sale price of merchandise. Manufacturer coupons or discounts that are specific to the Company are recorded as a reduction to the cost of sales. Agent Relationships The Company evaluates the criteria outlined in ASC 606-10-55, Principal versus Agent Considerations, in determining whether it is appropriate in these arrangements to record the gross amount of merchandise sales and related costs, or the net amount earned as commissions. When the Company is considered the principal in a transaction, revenue is recorded gross; otherwise, revenue is recorded on a net basis. The Company's Non-merchandise Sales revenues are recorded on a net basis. Significant Judgments For arrangements that contain multiple performance obligations, the Company allocates the transaction price to each performance obligation on a relative standalone selling price basis. During fiscal year 2023, there were no revenue transactions that required significant judgement. Incremental costs to obtain contracts are not material to the Company. Policy Elections In addition to those previously disclosed, the Company has made the following accounting policy elections and practical expedients: • Taxes - The Company excludes from the transaction price any taxes collected from customers that are remitted to taxing authorities. • Shipping and Handling Charges - Charges that are incurred after the customer obtains control of goods are deemed costs required to complete our performance obligation. Therefore, the Company considers the act of shipping after the customer obtains control of goods to not be a separate performance obligation. These shipping and handling costs are classified as “Costs of goods sold” in the consolidated statements of income because they are incurred to fulfill a revenue obligation. • Time Value of Money - The Company's payment terms are less than one year from the transfer of goods. Therefore, the Company does not adjust promised amounts of consideration for the effects of the time value of money. |
Cost of Goods Sold | Cost of Goods Sold – The Company includes the cost of merchandise and 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. Until the disposal of Aeropost in the first quarter of fiscal year 2022, the Company included the costs for the marketplace and casillero operations 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. |
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, including separation costs associated with the Chief Executive Officer departure, 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. |
Asset Impairment and Closure Costs | Asset Impairment and Closure Costs – The Company periodically evaluates its long-lived assets for indicators of impairment. Management's judgments are based on market and operational conditions at the time of the evaluation and can include management's best estimate of future business activity. These periodic evaluations could cause management to conclude that impairment factors exist, requiring an adjustment of these assets to their then-current fair value. Future business conditions and/or activity could differ materially from the projections made by management causing the need for additional impairment charges. In the fourth quarter of fiscal year 2023, the Company recorded a $5.7 million charge primarily related to remeasurement of the assets of our Trinidad sustainable packaging plant to their estimated fair value upon our decision to seek to sell the plant. We planned to use the plant to increase efficiencies by eliminating intermediaries in packaging and labeling and manufacturing some of our packaging materials using compostable or recyclable inputs. However, we found that achieving economic feasibility proved challenging. Therefore, we decided to refocus our efforts on our core competencies as a retailer and redeploy plant assets we could use in our club business and seek a buyer for the remainder. The assets were written down to their estimated fair value less costs to sell and are presented within the Prepaid expenses and other current assets line within the Consolidated Balance Sheets. The impairment charges are recorded within the Asset impairment and closure costs line item within the Consolidated Statements of Income and are recorded in the Company's Caribbean segment. We believe the sale of the assets held for sale is probable within one year. |
Loss Contingencies and Litigation | Loss 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. |
Income Taxes | Income Taxes – The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carry-forwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established when necessary to reduce deferred tax assets to amounts expected to be realized. The Company is required to file federal and state income 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 federal, state and foreign taxing authorities in the jurisdictions in which the Company files its returns. As part of these reviews, a taxing authority may disagree with respect to 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 a 50% or less likelihood of being sustained. This requires significant judgment, the use of estimates, and the interpretation and application of complex tax laws. When facts and circumstances change, the Company reassesses these probabilities and records any changes in the consolidated financial statements as appropriate. Other Taxes – The Company is subject to tax examinations for value added, sales-based, payroll and other non-income taxes and the Company is subject to ongoing examinations in various jurisdictions. In certain cases, the Company has received assessments and judgments from the respective tax authorities in connection with these examinations. Unless otherwise indicated, the Company considers based on its interpretation and application of complex tax laws, that a material liability is not probable or the possible losses or range of possible losses associated with these cases are immaterial; however, if decided adversely to the Company, could result in a liability material to the Company's consolidated financial statements. In certain countries, the Company is required to pay taxes based on a percentage of sales (Alternative Minimum Tax or "AMT") if the percentage of sales method results in a higher amount of tax payable than the amount payable based on taxable income at the statutory income tax rate. The portion of taxes based on a percentage of sales that is greater than the amount based on taxable income at the statutory income tax rate, are recorded in the Warehouse club and other expenses line item under the Selling, general and administrative caption within the consolidated statements of income. |
Recent Accounting Pronouncements Adopted | Recent Accounting Pronouncements Adopted There were no new accounting standards that had a material impact on the Company’s consolidated financial statements during the twelve-month period ended August 31, 2023, and there were no other new accounting standards or pronouncements that were issued but not yet effective as of August 31, 2023 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) | 12 Months Ended |
Aug. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Joint Ventures | The Company's ownership interest in real estate development joint ventures the Company has recorded under the equity method as of August 31, 2023 are listed below: Real Estate Development Joint Ventures Countries Ownership Basis of 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. |
Summary of Restricted Cash | The following table summarizes the restricted cash reported by the Company (in thousands): August 31, August 31, Short-term restricted cash $ 2,865 $ 3,013 Long-term restricted cash 9,353 10,650 Total restricted cash (1) $ 12,218 $ 13,663 (1) Restricted cash consists of cash deposits held within banking institutions in compliance with federal regulatory requirements in Costa Rica and Panama. In addition, the Company is required to maintain a certificate of deposit and/or security deposits of Trinidad dollars, as measured in U.S dollars, of approximately $6.4 million with a few of its lenders as compensating balances for several U.S. dollar and euro denominated loans payable over several years. The certificates of deposit will be reduced annually commensurate with the loan balances. |
Schedule of Goodwill | The changes in the carrying amount of goodwill for the year ended August 31, 2023 are as follows (in thousands): Amount Goodwill at August 31, 2022 $ 43,303 Foreign currency exchange rate changes (193) Goodwill at August 31, 2023 $ 43,110 |
Schedule of Goodwill and Intangibles | Amount Other intangibles at August 31, 2022 $ 765 Amortization (765) Net other intangibles at August 31, 2023 $ — Total goodwill and other intangibles, net August 31, 2023 $ 43,110 |
Summary of Value Added Tax Receivables | The following table summarizes the VAT receivables reported by the Company (in thousands): August 31, August 31, Prepaid expenses and other current assets $ 2,774 $ 3,890 Other non-current assets 36,060 32,460 Total amount of VAT receivables reported $ 38,834 $ 36,350 |
Summary of Income Tax Receivables | The following table summarizes the Income tax receivables reported by the Company (in thousands): August 31, August 31, Prepaid expenses and other current assets $ 17,749 $ 12,077 Other non-current assets 19,176 19,985 Total amount of income tax receivables reported $ 36,925 $ 32,062 |
Summary of Carrying Value and Fair Value of Debt | The carrying value and fair value of the Company’s debt as of August 31, 2023 and August 31, 2022 is as follows (in thousands): August 31, 2023 August 31, 2022 Carrying Fair Value (1) Carrying Fair Value (1) Long-term debt, including current portion $ 139,680 $ 133,150 $ 137,271 $ 136,479 (1) The Company has disclosed the fair value of long-term debt, including debt for which it has entered into cross-currency interest rate swaps, using the derivative obligation as of August 31, 2023 to estimate the fair value of long-term debt, which includes the effects that the cross-currency interest rate swaps have had on the fair value of long-term debt. |
Net Effect of Foreign Currency Translation | 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 years ended August 31, 2023, 2022 and 2021: Years Ended August 31, 2023 2022 2021 Effects on other comprehensive income (loss) due to foreign currency restatement $ 33,708 $ (19,034) $ (7,837) |
Summary of Foreign Currency Gains (Losses) | 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. Years Ended August 31, 2023 2022 2021 Currency loss $ (15,396) $ (7,414) $ (5,395) |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Contract Performance Liabilities | The following table provides these contract balances from transactions with customers as of the dates listed (in thousands): Contract Liabilities August 31, August 31, Deferred membership income $ 31,079 $ 28,000 Other contract performance liabilities $ 12,347 $ 10,473 |
Disaggregated Revenues | In the following table, net merchandise sales are disaggregated by merchandise category (in thousands): Years Ended August 31, August 31, August 31, Foods & Sundries $ 2,148,584 $ 1,947,734 $ 1,736,509 Fresh Foods 1,262,132 1,145,920 1,003,694 Hardlines 454,207 443,311 409,644 Softlines 230,950 227,371 175,505 Other Business 204,833 180,481 140,090 Net Merchandise Sales $ 4,300,706 $ 3,944,817 $ 3,465,442 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment consist of the following (in thousands): August 31, August 31, Land $ 238,374 $ 224,278 Building and improvements 650,060 592,749 Fixtures and equipment 385,100 343,859 Construction in progress 99,545 42,602 Total property and equipment, historical cost 1,373,079 1,203,488 Less: accumulated depreciation (522,751) (446,247) Property and equipment, net $ 850,328 $ 757,241 A summary of asset disposal activity for fiscal years 2023, 2022 and 2021 is as follows (in thousands): Historical Accumulated Proceeds from Loss Fiscal Year 2023 $ 11,484 $ 10,379 $ 361 $ (744) Fiscal Year 2022 $ 12,785 $ 11,327 $ 193 $ (1,265) Fiscal Year 2021 $ 10,946 $ 9,534 $ 385 $ (1,027) |
Summary of Depreciation and Amortization Expense | Depreciation and amortization expense (in thousands): Years Ended August 31, 2023 2022 2021 Depreciation expense, Property and equipment $ 71,933 $ 66,255 $ 62,579 Amortization expense, Intangible assets 765 1,613 2,404 Total depreciation and amortization expense $ 72,698 $ 67,868 $ 64,983 |
Summary of Total Interest Capitalized | Total interest capitalized (in thousands): Balance as of August 31, August 31, Total interest capitalized $ 15,426 $ 12,934 Total interest capitalized (in thousands): Years Ended August 31, 2023 2022 2021 Interest capitalized $ 2,083 $ 1,263 $ 2,282 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of the Computation of Net Income Per Share | The following table sets forth the computation of net income per share attributable to PriceSmart for the twelve months ended August 31, 2023, 2022 and 2021 (in thousands, except per share amounts): Years Ended August 31, 2023 2022 2021 Net income attributable to PriceSmart, Inc. $ 109,205 $ 104,534 $ 97,963 Less: Allocation of income to unvested stockholders (1,311) (1,245) (1,282) Net income attributable to PriceSmart, Inc. available for distribution $ 107,894 $ 103,289 $ 96,681 Basic weighted average shares outstanding 30,763 30,591 30,403 Add dilutive effect of performance stock units (two-class method) 23 9 — Diluted average shares outstanding 30,786 30,600 30,403 Basic net income per share $ 3.51 $ 3.38 $ 3.18 Diluted net income per share $ 3.50 $ 3.38 $ 3.18 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Equity [Abstract] | |
Schedule of Dividends | The following table summarizes the dividends declared and paid during fiscal years 2023, 2022 and 2021 (amounts are per share): First Payment Second Payment Declared Amount Record Date Amount Record Date Amount 2/3/2023 $ 0.92 2/16/2023 2/28/2023 $ 0.46 8/15/2023 8/31/2023 $ 0.46 2/3/2022 $ 0.86 2/15/2022 2/28/2022 $ 0.43 8/15/2022 8/31/2022 $ 0.43 2/4/2021 $ 0.70 2/15/2021 2/26/2021 $ 0.35 8/15/2021 8/31/2021 $ 0.35 |
Schedule of Components of Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss | The following tables disclose the effects on accumulated other comprehensive loss of each component of other comprehensive income (loss), net of tax (in thousands): Attributable to PriceSmart Non-controlling Interests Total Ending balance, August 31, 2020 $ (176,820) $ 134 $ (176,686) Foreign currency translation adjustments (7,837) 117 (7,720) Defined benefit pension plans (1) (230) — (230) Derivative instruments (2) 2,252 — 2,252 Amounts reclassified from accumulated other comprehensive loss 127 — 127 Ending balance, August 31, 2021 $ (182,508) $ 251 $ (182,257) Foreign currency translation adjustments (19,034) 3 (19,031) Defined benefit pension plans (1) (341) — (341) Derivative instruments (2) 6,170 — 6,170 Amounts reclassified from accumulated other comprehensive loss 127 — 127 Sale of Aeropost — (254) (254) Ending balance, August 31, 2022 $ (195,586) $ — $ (195,586) Foreign currency translation adjustments 33,708 — 33,708 Defined benefit pension plans (1) (1,819) — (1,819) Derivative instruments (2) (443) — (443) Amounts reclassified from accumulated other comprehensive loss 148 — 148 Ending balance, August 31, 2023 $ (163,992) $ — $ (163,992) (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 13 - Derivative Instruments and Hedging Activities.” |
Summary of 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): August 31, August 31, Retained earnings not available for distribution $ 9,110 $ 8,648 |
Schedule of Class of Treasury Stock | Share repurchase activity under the Company’s repurchase programs for the periods indicated was as follows (total cost in thousands): Years Ended August 31, August 31, Number of common shares acquired 71,530 — Average price per common share acquired $ 78.54 $ — Total cost of common share acquired $ 5,618 $ — |
POST EMPLOYMENT PLANS (Tables)
POST EMPLOYMENT PLANS (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans | The following table summarizes the amount of the funding obligation and the line items in which it is recorded on the consolidated balance sheets as of August 31, 2023 and 2022 and consolidated statements of income for the fiscal years ended August 31, 2023, 2022 and 2021 (in thousands): Other Long-Term Accumulated Other Operating Expenses August 31, Year Ended August 31, 2023 2022 2023 2022 2023 2022 2021 Start of period $ (2,976) $ (2,298) $ 1,205 $ 897 $ — $ — $ — Service cost (303) (205) — — 365 315 229 Interest cost (139) (129) — — 139 129 104 Prior service cost (including amortization) — — (26) (36) 26 36 55 Actuarial gains/(losses) (2,425) (344) 2,425 344 122 92 72 Totals $ (5,843) $ (2,976) $ 3,604 $ 1,205 (1) $ 652 $ 572 $ 460 (1) The Company has recorded a deferred tax asset of $1,106,000 and $377,000 as of August 31, 2023 and 2022, respectively, relating to the unrealized expense on defined benefit plans. The Company also recorded accumulated other comprehensive loss, net of tax, for $(2,500,000) and $(829,000) as of August 31, 2023 and 2022, respectively. The primary driver of the recorded accumulated other comprehensive loss was a change in assumption for our Trinidad and Tobago post-employment benefit plan in which we expect less turnover from our employees. |
Schedule of Assumptions Used | The valuation assumptions used to calculate the liability for the defined benefit plans differ based on the country where the plan applies. These assumptions are summarized as follows: Year Ended August 31, Valuation Assumptions: 2023 2022 Discount rate 4.6% to 6.4% 3.5% to 6.4% Future salary escalation 3.0% to 5.2% 3.0% to 4.5% Percentage of employees assumed to withdraw from Company without a benefit (“turnover”) 6.7% to 15.0% 6.7% to 15.0% Percentage of employees assumed to withdraw from Company with a benefit (“disability”) 0.5% to 1.5% 0.5% to 6.6% |
Schedule of Net Periodic Benefit Cost | For the fiscal year ending August 31, 2024, the Company expects to recognize, as components of net periodic benefit cost, the following amounts currently recorded in accumulated other comprehensive loss (in thousands): Prior service cost $ 26 Amortization of actuarial loss 539 $ 565 |
Summary of Other Post-Employment Plans | The following table summarizes the amounts recorded on the balance sheet and amounts expensed on the consolidated statements of income (in thousands): Accrued Salaries Other Long-Term Liability Restricted Cash Held (1) Operating Expenses Years Ended August 31, 2023 2022 2023 2022 2023 2022 2023 2022 2021 Other Post Employment Plans $ 738 $ 522 $ 5,077 $ 4,567 $ 4,859 $ 4,382 $ 1,754 $ 1,423 $ 1,447 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Shares Authorized and Shares Available for Future Grants | The following table summarizes the shares authorized and shares available for future grants: Shares available to grant Shares authorized for issuance as of August 31, 2023 August 31, August 31, 2013 Plan 2,317,923 1,223,574 549,319 |
Summary of Components of Stock-Based Compensation Expense | The following table summarizes the components of the stock-based compensation expense for the twelve-month periods ended August 31, 2023, 2022 and 2021 (in thousands), which are included in general and administrative expense and warehouse club and other operations in the consolidated statements of income: Years Ended August 31, 2023 2022 2021 Restricted stock awards $ 10,641 $ 9,378 $ 11,010 Restricted stock units 3,701 3,519 3,939 Performance-based restricted stock units 2,232 3,906 3,475 Stock-based compensation expense $ 16,574 $ 16,803 $ 18,424 |
Summary of Other Information Related to Stock-Based Compensation | The following tables summarize other information related to stock-based compensation: Balance as of August 31, August 31, August 31, Remaining unrecognized compensation cost (in thousands) $ 15,386 $ 18,478 $ 16,349 Weighted average period of time over which this cost will be recognized (years) 2 2 2 |
Summary of Excess Tax Benefit (Deficiency) on Stock-based Compensation | Years Ended August 31, 2023 2022 2021 Excess tax benefit (deficiency) on stock-based compensation (in thousands) $ (2,787) $ (2,259) $ (778) |
Summary of Restricted Stock Awards and Units Activity | Restricted stock awards, restricted stock units, and performance-based restricted stock units activity for the twelve-months ended August 31, 2023, 2022 and 2021 was as follows: Years Ended August 31, August 31, August 31, Grants outstanding at beginning of period 361,822 375,622 415,869 Granted 365,850 261,204 166,160 Forfeited (118,577) (16,184) (12,436) Vested (266,354) (258,820) (193,971) Grants outstanding at end of period 342,741 361,822 375,622 |
Summary of Weighted Average Per Share Grant Date Fair Value for Restricted Stock Awards and Units | The following table summarizes the weighted average per share grant date fair value for restricted stock awards, restricted stock units, and performance based restricted stock units for fiscal years 2023, 2022 and 2021: Weighted Average Grant Date Fair Value Years Ended August 31, August 31, August 31, RSAs, RSUs, and PSUs granted $ 63.93 $ 76.85 $ 79.02 RSAs, RSUs, and PSUs vested $ 70.26 $ 72.69 $ 70.03 RSAs, RSUs, and PSUs forfeited $ 66.14 $ 69.70 $ 70.56 |
Summary of Total Fair Market Value of Restricted Stock Awards and Units Vested | The following table summarizes the total fair market value of restricted stock awards, restricted stock units, and performance based restricted stock units vested for the period (in thousands): Years Ended August 31, August 31, August 31, Total fair market value of restricted stock awards and units vested (in thousands) $ 19,325 $ 18,422 $ 17,478 |
Summary of Shares Repurchased | The following table summarizes the equity securities repurchased during fiscal years 2023, 2022 and 2021 as part of the Company's stock-based compensation programs: Years Ended August 31, August 31, August 31, Shares repurchased 99,998 88,415 62,282 Cost of repurchase of shares (in thousands) $ 7,245 $ 6,259 $ 5,542 |
Summary of Treasury Shares Reissued | The Company reissues treasury shares as part of its stock-based compensation programs. The following table summarizes the treasury shares reissued during the period: Years Ended August 31, August 31, August 31, Reissued treasury shares 6,333 8,314 96,400 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Commitments | The present value of estimated future minimum lease commitments for this lease are as follows (in thousands): Years Ended August 31, Amount 2024 $ — 2025 276 2026 1,604 2027 1,558 2028 1,513 Thereafter 20,013 Total future lease payments $ 24,964 The Company is committed under non-cancelable operating leases for the rental of facilities and land. Future minimum lease commitments for facilities under these leases with an initial term in excess of one year are as follows (in thousands): Years Ended August 31, Leased 2024 $ 15,502 2025 15,244 2026 13,711 2027 11,520 2028 11,028 Thereafter 166,398 Total future lease payments 233,403 Less imputed interest (103,587) Total operating lease liabilities $ 129,816 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income from Continuing Operations Before Provision for Income Taxes and Loss of Unconsolidated Affiliates | Income from continuing operations before provision for income taxes and loss of unconsolidated affiliates includes the following components (in thousands): Years Ended August 31, 2023 2022 2021 United States $ 57,941 $ 55,667 $ 33,818 Foreign 111,270 100,754 113,368 Income from continuing operations before provision for income taxes and loss of unconsolidated affiliates $ 169,211 $ 156,421 $ 147,186 |
Significant Components of Income Tax Provision | Significant components of the income tax provision are as follows (in thousands): Years Ended August 31, 2023 2022 2021 Current: U.S. tax expense $ 21,604 $ 20,824 $ 16,904 Foreign tax expense 41,639 34,334 35,918 Total $ 63,243 $ 55,158 $ 52,822 Deferred: U.S. tax benefit $ (11,958) $ (11,894) $ (10,212) U.S. valuation allowance change 12,598 11,823 9,777 Foreign tax benefit (3,935) (3,259) (3,125) Foreign valuation allowance change 3 30 (293) Total $ (3,292) $ (3,300) $ (3,853) Provision for income taxes $ 59,951 $ 51,858 $ 48,969 |
Schedule of Reconciliation of Effective Tax Rate | The reconciliation of income tax computed at the Federal statutory tax rate to the provision for income taxes is as follows (in percentages): Years Ended August 31, 2023 2022 2021 Federal tax provision at statutory rates 21.0 % 21.0 % 21.0 % State taxes, net of federal benefit 0.3 0.2 0.1 Differences in foreign tax rates 6.8 7.1 6.9 Permanent items and other adjustments (0.1) (2.6) (2.2) Increase in valuation allowance 7.4 7.5 7.5 Provision for income taxes 35.4 % 33.2 % 33.3 % |
Significant Components of Deferred Tax Assets | Significant components of the Company’s deferred tax assets as of August 31, 2023 and 2022 are shown below (in thousands): August 31, 2023 2022 Deferred tax assets: Foreign tax credits $ 43,632 $ 32,322 Deferred compensation 1,664 1,782 U.S. timing differences 6,845 7,746 Foreign net operating losses 4,911 5,026 Foreign timing differences: Accrued expenses and other timing differences 9,365 9,937 Depreciation and amortization 15,160 13,019 Deferred income 7,338 7,749 Gross deferred tax assets 88,915 77,581 U.S. deferred tax liabilities (depreciation and other timing differences) (3,035) (2,273) Foreign deferred tax liabilities netted against deferred tax assets (5,552) (8,697) U.S. valuation allowance (43,860) (33,824) Foreign valuation allowance (4,430) (4,432) Net deferred tax assets $ 32,038 $ 28,355 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Years Ended August 31, 2023 2022 2021 Balance at beginning of fiscal year $ 5,041 $ 3,911 $ 4,573 Gross increase - tax positions in prior period 35 264 135 Gross decrease - tax positions in prior period — — (306) Additions based on tax positions related to the current year 143 1,356 333 Expiration of the statute of limitations for the assessment of taxes (474) (490) (824) Balance at end of fiscal year $ 4,745 $ 5,041 $ 3,911 |
Summary of Income Tax Examinations | The Company is generally no longer subject to income tax examinations by tax authorities in its major jurisdictions except for the fiscal years subject to audit as set forth in the table below: Tax Jurisdiction Fiscal Years Subject to Audit U.S. federal 2005, 2007, 2014* to 2017*, 2018, 2020 to the present California (U.S.) (state return) 2005 and 2019 to the present Florida (U.S.) (state return) 2011* to 2018*, 2020 to the present Aruba 2018 to the present Barbados 2017 to the present Costa Rica 2011 to 2012, 2015 to 2016, 2019 to the present Colombia 2017 to the present Dominican Republic 2011 to 2012, 2016, 2020 to the present El Salvador 2019 to the present Guatemala 2012 to 2013, 2019 to the present Honduras 2018 to the present Jamaica 2017 to the present Mexico 2019 to the present Nicaragua 2019 to the present Panama 2018 to the present Trinidad 2016 to the present U.S. Virgin Islands 2001 to the present Spain 2020 to the present Chile 2020* to the present *Aeropost only |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Short-Term Borrowings | Short-term borrowings consist of unsecured lines of credit and short-term overdraft borrowings. The following table summarizes the balances of total facilities, facilities used and facilities available (in thousands): Total Amount Facilities Used Facilities Weighted average Short-term Letters of August 31, 2023 - Committed $ 75,000 — — 75,000 —% August 31, 2023 - Uncommitted 91,000 8,376 — 82,624 13.2 August 31, 2023 - Overdraft Used (Uncommitted) — 303 — — 12.0 August 31, 2023 - Total $ 166,000 $ 8,679 $ — $ 157,624 12.7% August 31, 2022 - Committed $ 75,000 — 73 74,927 —% August 31, 2022 - Uncommitted 91,000 10,608 — 80,392 5.3 August 31, 2022 - Total $ 166,000 $ 10,608 $ 73 $ 155,319 5.3% |
Summary of Changes in Long-Term Debt | The following table provides the changes in long-term debt for the twelve months ended August 31, 2023: (Amounts in thousands) Current Long-term Total Balances as of August 31, 2021 $ 19,395 $ 110,110 $ 129,505 (1) Proceeds from long-term debt received during the period: Guatemala subsidiary — 4,204 4,204 Trinidad subsidiary 4,924 21,505 26,429 Total proceeds from long-term debt received during the period 4,924 25,709 30,633 Repayments of long-term debt: (8,110) (14,587) (22,697) Reclassifications of long-term debt due in the next 12 months 17,618 (17,618) — Translation adjustments on foreign currency debt of subsidiaries whose functional currency is not the U.S. dollar (2) (112) (58) (170) Balances as of August 31, 2022 33,715 103,556 137,271 (3) Proceeds from long-term debt received during the period: Guatemala subsidiary — 12,454 12,454 Barbados subsidiary — 7,460 7,460 Honduras subsidiary 1,001 12,798 13,799 Trinidad subsidiary 750 4,250 5,000 Total proceeds from long-term debt received during the period 1,751 36,962 38,713 Repayments of long-term debt: (17,541) (18,443) (35,984) Reclassifications of long-term debt due in the next 12 months 1,729 (1,729) — Translation adjustments on foreign currency debt of subsidiaries whose functional currency is not the U.S. dollar (2) 539 (859) (320) Balances as of August 31, 2023 $ 20,193 $ 119,487 $ 139,680 (4) (1) The carrying amount of non-cash assets assigned as collateral for these loans was $153.5 million. The carrying amount of cash assets assigned as collateral for these loans was $7.0 million. (2) These foreign currency translation adjustments are recorded within other comprehensive loss. (3) The carrying amount of non-cash assets assigned as collateral for these loans was $155.6 million. The carrying amount of cash assets assigned as collateral for these loans was $5.3 million. (4) The carrying amount of non-cash assets assigned as collateral for these loans was $156.2 million. The carrying amount of cash assets assigned as collateral for these loans was $3.5 million. |
Schedule of Long-Term Debt | The following table provides a summary of the long-term loans entered into by the Company: August 31, August 31, Loans entered into by the Company's subsidiaries for which the subsidiary has entered into a cross-currency interest rate swap with non-cash assets and/or cash or cash equivalents assigned as collateral and with/without established debt covenants $ 23,099 $ 33,853 Loans entered into by the Company's subsidiaries for which the subsidiary has entered into an interest rate swap with non-cash assets and/or cash or cash equivalents assigned as collateral and with/without established debt covenants 30,069 39,969 Unhedged loans entered into by the Company's subsidiaries with non-cash assets and/or cash or cash equivalents assigned as collateral and with/without established debt covenants 86,512 63,449 Total long-term debt 139,680 137,271 Less: current portion 20,193 33,715 Long-term debt, net of current portion $ 119,487 $ 103,556 |
Schedule of Annual Maturities of Long-Term Debt | Annual maturities of long-term debt are as follows (in thousands): Twelve Months Ended August 31, Amount 2024 $ 20,193 2025 36,151 2026 18,450 2027 33,188 2028 17,512 Thereafter 14,186 Total $ 139,680 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Leases [Abstract] | |
Summary of Components of Total Lease Costs | The following table is a summary of the Company’s components of total lease costs for fiscal year 2023 and 2022 (in thousands): Years Ended August 31, 2023 2022 Operating lease cost $ 15,753 $ 15,632 Short-term lease cost 162 49 Variable lease cost 5,034 4,376 Sublease income (91) (180) Total lease costs $ 20,858 $ 19,877 The weighted average remaining lease term and weighted average discount rate for operating leases as of August 31, 2023 and August 31, 2022 were as follows: Years Ended August 31, 2023 2022 Weighted average remaining lease term in years 17.8 18.3 Weighted average discount rate percentage 6.8 % 6.7 % |
Supplemental Cash Flow Information Related To Leases | Supplemental cash flow information related to leases under which the Company is the lessee was as follows (amounts in thousands): Years Ended August 31, 2023 2022 Operating cash flows paid for operating leases $ 15,753 $ 14,885 |
Schedule of Future Minimum Lease Commitments | The present value of estimated future minimum lease commitments for this lease are as follows (in thousands): Years Ended August 31, Amount 2024 $ — 2025 276 2026 1,604 2027 1,558 2028 1,513 Thereafter 20,013 Total future lease payments $ 24,964 The Company is committed under non-cancelable operating leases for the rental of facilities and land. Future minimum lease commitments for facilities under these leases with an initial term in excess of one year are as follows (in thousands): Years Ended August 31, Leased 2024 $ 15,502 2025 15,244 2026 13,711 2027 11,520 2028 11,028 Thereafter 166,398 Total future lease payments 233,403 Less imputed interest (103,587) Total operating lease liabilities $ 129,816 |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives | The following table summarizes agreements for which the Company has recorded cash flow hedge accounting for the twelve months ended August 31, 2023: Entity Date Derivative Derivative Initial Bank Floating Leg Fixed Rate Settlement Effective Colombia subsidiary 12-Apr-23 Citibank, N.A. ("Citi") Cross currency interest rate swap $10,000,000 PriceSmart, Inc. 4.00% 11.40 % 11th day of each July, October, January and April, beginning on July 11, 2023 April 12, 2023 - April 11, 2028 Colombia subsidiary 26-Sep-22 Citibank, N.A. ("Citi") Cross currency interest rate swap $12,500,000 PriceSmart, Inc. 3.00% 10.35 % 24th day of each December, March, June and September beginning December 26, 2022 September 26, 2022 - September 24, 2024 Colombia subsidiary 3-May-22 Citibank, N.A. ("Citi") Cross currency interest rate swap $10,000,000 PriceSmart, Inc. 3.00% 9.04 % 3rd day of each May, August, November and February, beginning on August 3, 2022 May 3, 2022 - May 3, 2027 Colombia subsidiary 17-Nov-21 Citibank, N.A. ("Citi") Cross currency interest rate swap $10,000,000 PriceSmart, Inc. 3.00% 8.40 % 17th day of each February, May, August, and November, beginning on February 17, 2022 November 17, 2021 - November 18, 2024 Colombia subsidiary 03-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 March 3, 2020 December 3, 2019 - December 3, 2024 Colombia subsidiary 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 PriceSmart, Inc. 07-Nov-16 MUFG Union Bank, N.A. ("Union Bank") Interest rate swap $35,700,000 Union Bank Variable rate 3-month Libor plus 1.70% 3.65 % 1st day of each month beginning on April 1, 2017 March 1, 2017 - March 1, 2027 |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | For the twelve-month periods ended August 31, 2023, 2022 and 2021, 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 year ended August 31, 2023 $ 4,630 $ 1,205 $ 5,835 Interest expense for the year ended August 31, 2022 $ 2,577 $ 3,234 $ 5,811 Interest expense for the year ended August 31, 2021 $ 2,619 $ 3,655 $ 6,274 (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. |
Schedule of Notional Amounts of Outstanding Derivative Positions | 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): Floating Rate Payer (Swap Counterparty) Notional Amount as of August 31, August 31, Union Bank $ 30,069 $ 31,344 Citibank N.A. 65,599 66,353 Scotiabank — 8,625 Total $ 95,668 $ 106,322 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | 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): Derivatives designated as cash flow hedging instruments Balance Sheet August 31, 2023 August 31, 2022 Fair Net Tax Net Fair Net Tax Net Cross-currency interest rate swaps Other current assets $ — $ — $ — $ 2,736 $ (348) $ 2,388 Cross-currency interest rate swaps Other non-current assets 5,574 (1,950) 3,624 10,289 (4,559) 5,730 Cross-currency interest rate swaps Other current liabilities — — — (82) 25 (57) Cross-currency interest rate swaps Other long-term liabilities (3,321) 1,162 (2,159) — — — Interest rate swaps Other non-current assets 2,243 (501) 1,742 1,596 (6) 1,590 Net fair value of derivatives designated as hedging instruments $ 4,496 $ (1,289) $ 3,207 $ 14,539 $ (4,888) $ 9,651 |
Schedule of Open Non-Deliverable Forward Foreign Exchange Contract | The following table summarizes the non-deliverable forward foreign exchange contracts that are open as of August 31, 2023: Financial Subsidiary Dates Derivative Total Notional Settlement Scotiabank Colpatria, S.A. Colombia 11-Jan-2023 - 19-Jul-2023 Forward foreign exchange contracts (USD) $ 8,500 8-Sep-2023 - 24-Jan-2024 Citibank, N.A. ("Citi") Colombia 18-Jan-2023 - 31-Aug-2023 Forward foreign exchange contracts (USD) $ 13,000 18-Sep-2023 - 24-Apr-2024 |
UNCONSOLIDATED AFFILIATES (Tabl
UNCONSOLIDATED AFFILIATES (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
UNCONSOLIDATED AFFILIATES [Abstract] | |
Schedule of Variable Interest Entities Maximum Loss Exposure | The table below summarizes the Company’s interest in these VIEs and the Company’s maximum exposure to loss as a result of its involvement with these VIEs as of August 31, 2023 (in thousands): Entity % Initial Additional Net Income (Loss) Company’s Commitment to Future Additional Investments (1) Company's Maximum Exposure to Loss in Entity (2) GolfPark Plaza, S.A. 50 % $ 4,616 $ 2,402 $ (98) $ 6,920 $ 99 $ 7,019 Price Plaza Alajuela PPA, S.A. 50 % 2,193 1,236 130 3,559 785 4,344 Total $ 6,809 $ 3,638 $ 32 $ 10,479 $ 884 $ 11,363 (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. |
Summary of Financial Information of Unconsolidated Affiliates | The summarized financial information of the unconsolidated affiliates is as follows (in thousands): August 31, August 31, Current assets $ 1,654 $ 1,839 Noncurrent assets $ 10,324 $ 10,109 Current liabilities $ 158 $ 175 Noncurrent liabilities $ 9 $ 8 Years Ended August 31, 2023 2022 2021 PriceSmart’s share of the net loss of unconsolidated affiliates $ (55) $ (10) $ (58) |
SEGMENTS (Tables)
SEGMENTS (Tables) | 12 Months Ended |
Aug. 31, 2023 | |
Segment Reporting [Abstract] | |
Summary of Segment Revenues, Operating Costs and Balance Sheet Items | The following tables summarize by segment certain revenues, operating costs and balance sheet items (in thousands): United Central Caribbean Operations (1) Colombia Operations Reconciling Items (2) Total Year Ended August 31, 2023 Revenue from external customers $ 31,741 $ 2,671,083 $ 1,269,307 $ 439,711 $ — $ 4,411,842 Intersegment revenues 1,538,588 27,709 5,621 4,466 (1,576,384) — Depreciation, Property and equipment 5,482 37,053 19,188 10,210 — 71,933 Amortization, Intangibles 765 — — — — 765 Operating income (loss) 29,844 191,721 87,223 15,467 (139,739) 184,516 Interest income from external sources 3,604 3,977 2,135 155 — 9,871 Interest income from intersegment sources 2,454 1,603 253 — (4,310) — Interest expense from external sources 1,165 2,664 3,251 3,940 — 11,020 Interest expense from intersegment sources 75 1,258 1,041 1,939 (4,313) — Provision (benefit) for income taxes 23,283 28,045 9,873 (1,250) — 59,951 Net income attributable to PriceSmart, Inc. 9,540 159,014 68,635 11,755 (139,739) 109,205 Long-lived assets (other than deferred tax assets) 71,919 566,139 210,000 205,295 — 1,053,353 Goodwill 8,981 24,083 10,046 — — 43,110 Investment in unconsolidated affiliates — 10,479 — — — 10,479 Total assets 302,115 995,881 425,145 282,467 — 2,005,608 Capital expenditures, net 10,204 79,526 24,234 29,948 — 143,912 Year Ended August 31, 2022 Revenue from external customers $ 48,716 $ 2,382,163 $ 1,156,607 $ 478,607 $ — $ 4,066,093 Intersegment revenues 1,492,648 22,119 5,857 3,600 (1,524,224) — Depreciation, Property and equipment 4,719 34,155 17,061 10,320 — 66,255 Amortization, Intangibles 1,613 — — — — 1,613 Operating income (loss) 23,364 171,119 79,022 22,526 (128,965) 167,066 Interest income from external sources 147 1,115 863 76 — 2,201 Interest income from intersegment sources 1,789 1,954 255 — (3,998) — Interest expense from external sources 1,225 3,107 2,163 3,116 — 9,611 Interest expense from intersegment sources 27 1,187 1,821 899 (3,934) — Provision for income taxes 19,629 23,396 8,106 727 — 51,858 Net income attributable to PriceSmart, Inc. 8,292 144,159 62,799 18,268 (128,984) 104,534 Long-lived assets (other than deferred tax assets) 70,978 498,204 218,021 175,194 — 962,397 Intangibles, net 765 — — — — 765 Goodwill 8,981 24,250 10,072 — — 43,303 Investment in unconsolidated affiliates — 10,534 — — — 10,534 Total assets 230,411 867,898 474,411 235,680 — 1,808,400 Capital expenditures, net 5,119 46,959 36,610 33,654 — 122,342 Year Ended August 31, 2021 Revenue from external customers $ 88,397 $ 2,105,856 $ 1,004,793 $ 420,825 $ — $ 3,619,871 Intersegment revenues 1,280,236 17,861 5,087 3,869 (1,307,053) — Depreciation, Property and equipment 6,970 31,319 15,432 8,858 — 62,579 Amortization, Intangibles 2,404 — — — — 2,404 Operating income (loss) 12,687 151,933 74,769 21,932 (103,301) 158,020 Interest income from external sources 13 878 985 103 — 1,979 Interest income from intersegment sources 2,130 2,393 483 — (5,006) — Interest expense from external sources 1,606 2,831 427 2,346 — 7,210 Interest expense from intersegment sources 34 1,286 2,647 298 (4,265) — Provision for income taxes 15,919 22,661 8,006 2,383 — 48,969 Net income (loss) attributable to PriceSmart, Inc. (4,777) 127,879 61,025 17,333 (103,497) 97,963 Long-lived assets (other than deferred tax assets) 79,404 490,099 197,030 164,970 — 931,503 Intangibles, net 7,762 — — — — 7,762 Goodwill 10,695 24,332 10,068 — — 45,095 Investment in unconsolidated affiliates — 10,544 — — — 10,544 Total assets 246,896 795,940 434,428 228,526 — 1,705,790 Capital expenditures, net 9,061 45,524 23,342 28,181 — 106,108 (1) Management considers its club in the U.S. Virgin Islands to be part of its Caribbean operations. |
VALUATION AND QUALIFYING ACCO_2
VALUATION AND QUALIFYING ACCOUNTS (Details) - Allowance For Doubtful Accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 103 | $ 94 | $ 147 |
Charged to Costs and Expenses | 42 | 89 | 93 |
Deductions | (78) | (80) | (146) |
Balance at End of Period | $ 67 | $ 103 | $ 94 |
COMPANY OVERVIEW AND BASIS OF_2
COMPANY OVERVIEW AND BASIS OF PRESENTATION (Details) | 3 Months Ended | |||||
Nov. 30, 2023 warehouse | Sep. 30, 2023 warehouse | Aug. 31, 2023 warehouse | Aug. 31, 2023 country | Aug. 31, 2023 | Aug. 31, 2023 store | |
Company Overview And Basis Of Presentation [Line Items] | ||||||
Number of stores | 51 | 51 | ||||
Ownership interest | 100% | |||||
Forecast | ||||||
Company Overview And Basis Of Presentation [Line Items] | ||||||
Number of stores | 54 | |||||
Number of stores expected in the future | 2 | |||||
Subsequent Event | ||||||
Company Overview And Basis Of Presentation [Line Items] | ||||||
Number of stores | 52 | |||||
Colombia | ||||||
Company Overview And Basis Of Presentation [Line Items] | ||||||
Number of stores | 9 | |||||
Costa Rica | ||||||
Company Overview And Basis Of Presentation [Line Items] | ||||||
Number of stores | 8 | |||||
Panama | ||||||
Company Overview And Basis Of Presentation [Line Items] | ||||||
Number of stores | 7 | |||||
Dominican Republic And Guatemala | ||||||
Company Overview And Basis Of Presentation [Line Items] | ||||||
Number of stores | 5 | |||||
Trinidad | ||||||
Company Overview And Basis Of Presentation [Line Items] | ||||||
Number of stores | 4 | |||||
Honduras | ||||||
Company Overview And Basis Of Presentation [Line Items] | ||||||
Number of stores | 3 | |||||
El Salvador | ||||||
Company Overview And Basis Of Presentation [Line Items] | ||||||
Number of stores | 3 | |||||
Nicaragua | ||||||
Company Overview And Basis Of Presentation [Line Items] | ||||||
Number of stores | 2 | |||||
Jamaica | ||||||
Company Overview And Basis Of Presentation [Line Items] | ||||||
Number of stores | 2 | |||||
Aruba | ||||||
Company Overview And Basis Of Presentation [Line Items] | ||||||
Number of stores | 1 | |||||
Barbados | ||||||
Company Overview And Basis Of Presentation [Line Items] | ||||||
Number of stores | 1 | |||||
U.S. Virgin Islands | ||||||
Company Overview And Basis Of Presentation [Line Items] | ||||||
Number of stores | 1 | |||||
Foreign Countries | ||||||
Company Overview And Basis Of Presentation [Line Items] | ||||||
Number of countries | country | 12 | |||||
Domestic Territories | ||||||
Company Overview And Basis Of Presentation [Line Items] | ||||||
Number of countries | country | 1 | |||||
Domestic Territories | U.S. federal | ||||||
Company Overview And Basis Of Presentation [Line Items] | ||||||
Number of countries | country | 1 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Joint Ventures) (Details) | 12 Months Ended |
Aug. 31, 2023 | |
GolfPark Plaza, S.A. | |
Schedule of Equity Method Investments [Line Items] | |
% Ownership | 50% |
Price Plaza Alajuela PPA, S.A. | |
Schedule of Equity Method Investments [Line Items] | |
% Ownership | 50% |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2022 USD ($) | Aug. 31, 2023 USD ($) country | Aug. 31, 2023 USD ($) country shares | Aug. 31, 2023 USD ($) country | Aug. 31, 2023 USD ($) award country | Aug. 31, 2023 USD ($) item country | Aug. 31, 2022 USD ($) shares | Aug. 31, 2021 USD ($) shares | |
Tax Receivables [Line Items] | ||||||||
Money market funds, at fair value | $ 100,200 | $ 100,200 | $ 100,200 | $ 100,200 | $ 100,200 | $ 6,600 | ||
Goodwill and other intangibles, net | 43,110 | 43,110 | $ 43,110 | 43,110 | 43,110 | 43,300 | ||
Number of countries where method of computing minimum tax payments has changed | country | 2 | |||||||
Income taxes receivable | $ 36,925 | $ 36,925 | $ 36,925 | $ 36,925 | $ 36,925 | $ 32,062 | ||
Number of countries with significant VAT receivable balance | country | 1 | 1 | 1 | 1 | 1 | |||
Value added tax receivable, receivables | $ 2,300 | |||||||
Number of types of equity awards issued | 3 | 3 | ||||||
Reissued treasury shares (in shares) | shares | 6,333 | 8,314 | 96,400 | |||||
Asset impairment charge | 4,800 | |||||||
One-time separation charge | $ 7,700 | |||||||
One-time charge, net of tax | 7,200 | |||||||
One time separation charge, non-cash charges | 4,200 | |||||||
One-time separation charge, other separation costs | $ 3,500 | |||||||
Asset impairment and closure costs | 5,658 | $ 0 | $ 0 | |||||
Foreign Tax Authority | ||||||||
Tax Receivables [Line Items] | ||||||||
Liability adjustment from settlement with taxing authority | 7,200 | $ 7,200 | $ 7,200 | $ 7,200 | $ 7,200 | |||
Foreign Tax Authority | Year Of Dispute | ||||||||
Tax Receivables [Line Items] | ||||||||
Liability adjustment from settlement with taxing authority | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | |||
Foreign Tax Authority | Year Following The Dispute Year | ||||||||
Tax Receivables [Line Items] | ||||||||
Liability adjustment from settlement with taxing authority | 6,200 | 6,200 | 6,200 | 6,200 | 6,200 | |||
Two Countries | ||||||||
Tax Receivables [Line Items] | ||||||||
Income taxes receivable | 10,700 | 10,700 | 10,700 | 10,700 | 10,700 | 11,000 | ||
Deferred tax assets, net | $ 3,700 | $ 3,700 | $ 3,700 | $ 3,700 | $ 3,700 | $ 3,500 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Summary of Restricted Cash) (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 |
Cash and Cash Equivalents [Line Items] | |||
Short-term restricted cash | $ 2,865 | $ 3,013 | $ 3,647 |
Long-term restricted cash | 9,353 | 10,650 | $ 9,772 |
Total restricted cash | 12,218 | $ 13,663 | |
Certificates of Deposit | |||
Cash and Cash Equivalents [Line Items] | |||
Total restricted cash | $ 6,400 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Goodwill) (Details) $ in Thousands | 12 Months Ended |
Aug. 31, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 43,303 |
Foreign currency exchange rate changes | (193) |
Ending balance | $ 43,110 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Goodwill and Intangibles) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Accounting Policies [Abstract] | |||
Other intangibles | $ 765 | ||
Amortization | (765) | $ (1,613) | $ (2,404) |
Net other intangibles | 0 | ||
Total goodwill and other intangibles, net | $ 43,110 | $ 43,300 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Summary of Value Added Tax Receivables) (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Accounting Policies [Abstract] | ||
Prepaid expenses and other current assets | $ 2,774 | $ 3,890 |
Other non-current assets | 36,060 | 32,460 |
Total amount of VAT receivables reported | $ 38,834 | $ 36,350 |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Summary of Income Tax Receivables) (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Accounting Policies [Abstract] | ||
Prepaid expenses and other current assets | $ 17,749 | $ 12,077 |
Other non-current assets | 19,176 | 19,985 |
Total amount of income tax receivables reported | $ 36,925 | $ 32,062 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Summary of Carrying Value and Fair Value of Debt) (Details) - Fair Value, Inputs, Level 2 - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion | $ 139,680 | $ 137,271 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion | $ 133,150 | $ 136,479 |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Net Effect of Foreign Currency Translation) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | ||
Accounting Policies [Abstract] | ||||
Effects on other comprehensive income (loss) due to foreign currency restatement | [1] | $ 33,708 | $ (19,034) | $ (7,837) |
[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 permanently reinvested for any jurisdiction where distribution from a foreign affiliate would cause additional tax cost 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_13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Summary of Foreign Currency Gains (Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Accounting Policies [Abstract] | |||
Currency loss | $ (15,396) | $ (7,414) | $ (5,395) |
REVENUE RECOGNITION (Narrative)
REVENUE RECOGNITION (Narrative) (Details) | 12 Months Ended |
Aug. 31, 2023 USD ($) | |
Disaggregation of Revenue [Line Items] | |
Period where membership income is recognized ratably | 12 months |
Period where members can cancel membership | 60 days |
Period after which membership refunds are prorated over remaining term | 60 days |
Annual membership fee | 75 |
Maximum Platinum annual membership rebate | 500 |
Platinum membership rebate (as percent) | 2% |
Breakage revenue percent | 5% |
Platinum membership recorded liability | 95% |
Platinum membership redemption rate (as percent) | 100% |
Gift Card | |
Disaggregation of Revenue [Line Items] | |
Platinum membership redemption period | 1 year |
REVENUE RECOGNITION (Contract P
REVENUE RECOGNITION (Contract Performance Liabilities) (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Deferred membership income | ||
Contract with Customer, Asset and Liability [Line Items] | ||
Contract Liabilities | $ 31,079 | $ 28,000 |
Other contract performance liabilities | ||
Contract with Customer, Asset and Liability [Line Items] | ||
Contract Liabilities | $ 12,347 | $ 10,473 |
REVENUE RECOGNITION (Disaggrega
REVENUE RECOGNITION (Disaggregated Revenues) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 4,411,842 | $ 4,066,093 | $ 3,619,871 |
Net merchandise sales | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 4,300,706 | 3,944,817 | 3,465,442 |
Foods & Sundries | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 2,148,584 | 1,947,734 | 1,736,509 |
Fresh Foods | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 1,262,132 | 1,145,920 | 1,003,694 |
Hardlines | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 454,207 | 443,311 | 409,644 |
Softlines | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 230,950 | 227,371 | 175,505 |
Other Business | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 204,833 | $ 180,481 | $ 140,090 |
PROPERTY AND EQUIPMENT (Narrati
PROPERTY AND EQUIPMENT (Narrative) (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Accounts payable | $ 453,229 | $ 408,407 |
Other accrued expenses | 57,273 | 38,667 |
Construction In Progress | ||
Property, Plant and Equipment [Line Items] | ||
Accounts payable | 3,900 | 2,200 |
Other accrued expenses | $ 600 | $ 900 |
Minimum | Fixtures and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 3 years | |
Minimum | Building Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 10 years | |
Maximum | Fixtures and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 15 years | |
Maximum | Building Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 40 years |
PROPERTY AND EQUIPMENT (Summary
PROPERTY AND EQUIPMENT (Summary of Property and Equipment) (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, historical cost | $ 1,373,079 | $ 1,203,488 |
Less: accumulated depreciation | (522,751) | (446,247) |
Property and equipment, net | 850,328 | 757,241 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, historical cost | 238,374 | 224,278 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, historical cost | 650,060 | 592,749 |
Fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, historical cost | 385,100 | 343,859 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, historical cost | $ 99,545 | $ 42,602 |
PROPERTY AND EQUIPMENT (Summa_2
PROPERTY AND EQUIPMENT (Summary of Depreciation and Amortization Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense, Property and equipment | $ 71,933 | $ 66,255 | $ 62,579 |
Amortization expense, Intangible assets | 765 | 1,613 | 2,404 |
Total depreciation and amortization expense | $ 72,698 | $ 67,868 | $ 64,983 |
PROPERTY AND EQUIPMENT (Summa_3
PROPERTY AND EQUIPMENT (Summary of Total Interest Capitalized) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Total interest capitalized | $ 15,426 | $ 12,934 | |
Interest capitalized | $ 2,083 | $ 1,263 | $ 2,282 |
PROPERTY AND EQUIPMENT (Summa_4
PROPERTY AND EQUIPMENT (Summary of Assets Disposed) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Historical Cost | $ 11,484 | $ 12,785 | $ 10,946 |
Accumulated Depreciation | 10,379 | 11,327 | 9,534 |
Proceeds from disposal | 361 | 193 | 385 |
Loss on disposal of assets | $ (744) | $ (1,265) | $ (1,027) |
EARNINGS PER SHARE (Schedule of
EARNINGS PER SHARE (Schedule of the Computation of Net Income Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Net income attributable to PriceSmart, Inc. | $ 109,205 | $ 104,534 | $ 97,963 |
Less: Allocation of income to unvested stockholders | (1,311) | (1,245) | (1,282) |
Net income attributable to PriceSmart, Inc. available for distribution (in shares) | $ 107,894 | $ 103,289 | $ 96,681 |
Basic weighted average shares outstanding (in shares) | 30,763,000 | 30,591,000 | 30,403,000 |
Add dilutive effect of performance stock units (two-class method) (in shares) | 23,000 | 9,000 | 0 |
Diluted average shares outstanding (in shares) | 30,786,000 | 30,600,000 | 30,403,000 |
Basic net income per share (in dollars per share) | $ 3.51 | $ 3.38 | $ 3.18 |
Diluted net income per share (in dollars per share) | $ 3.50 | $ 3.38 | $ 3.18 |
STOCKHOLDERS' EQUITY (Schedule
STOCKHOLDERS' EQUITY (Schedule of Dividends) (Details) - $ / shares | 12 Months Ended | |||||||||||
Aug. 31, 2023 | Feb. 28, 2023 | Feb. 03, 2023 | Aug. 31, 2022 | Feb. 28, 2022 | Feb. 03, 2022 | Aug. 31, 2021 | Feb. 26, 2021 | Feb. 04, 2021 | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Equity [Abstract] | ||||||||||||
Amount | $ 0.92 | $ 0.86 | $ 0.70 | $ 0.92 | $ 0.86 | $ 0.70 | ||||||
Payment Amount | $ 0.46 | $ 0.46 | $ 0.43 | $ 0.43 | $ 0.35 | $ 0.35 |
STOCKHOLDERS' EQUITY (Schedul_2
STOCKHOLDERS' EQUITY (Schedule of Components of Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Total | |||
Beginning balance | $ 991,073 | $ 916,214 | $ 832,732 |
Ending balance | 1,107,043 | 991,073 | 916,214 |
Total | |||
Total | |||
Beginning balance | (195,586) | (182,257) | (176,686) |
Ending balance | (163,992) | (195,586) | (182,257) |
Attributable to PriceSmart | |||
Total | |||
Beginning balance | (195,586) | (182,508) | (176,820) |
Ending balance | (163,992) | (195,586) | (182,508) |
Non-controlling Interests | |||
Total | |||
Beginning balance | 0 | 251 | 134 |
Ending balance | 0 | 0 | 251 |
Foreign currency translation adjustments | |||
Total | |||
Other comprehensive income (loss), before reclassifications | 33,708 | (19,031) | (7,720) |
Foreign currency translation adjustments, Parent | |||
Total | |||
Other comprehensive income (loss), before reclassifications | 33,708 | (19,034) | (7,837) |
Foreign currency translation adjustments, Non-controlling Interests | |||
Total | |||
Other comprehensive income (loss), before reclassifications | 0 | 3 | 117 |
Defined benefit pension plans | |||
Total | |||
Other comprehensive income (loss), before reclassifications | (1,819) | (341) | (230) |
Defined benefit pension plan, parent | |||
Total | |||
Other comprehensive income (loss), before reclassifications | (1,819) | (341) | (230) |
Defined benefit pension plans, Non-controlling Interests | |||
Total | |||
Other comprehensive income (loss), before reclassifications | 0 | 0 | 0 |
Derivative Instruments | |||
Total | |||
Other comprehensive income (loss), before reclassifications | (443) | 6,170 | 2,252 |
Derivative Instruments, Parent | |||
Total | |||
Other comprehensive income (loss), before reclassifications | (443) | 6,170 | 2,252 |
Derivative Instruments, Non-controlling Interests | |||
Total | |||
Other comprehensive income (loss), before reclassifications | 0 | 0 | 0 |
Amount reclassified from accumulated other comprehensive loss | |||
Total | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 148 | 127 | 127 |
Amount reclassified from accumulated other comprehensive loss, Parent | |||
Total | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 148 | 127 | 127 |
Amounts reclassified from accumulated other comprehensive loss, Non-controlling Interests | |||
Total | |||
Amounts reclassified from accumulated other comprehensive income (loss) | $ 0 | 0 | $ 0 |
Sale of Aeropost | |||
Total | |||
Amounts reclassified from accumulated other comprehensive income (loss) | (254) | ||
Sale of Aeropost, Parent | |||
Total | |||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | ||
Sale of Aeropost, Non-controlling Interests | |||
Total | |||
Amounts reclassified from accumulated other comprehensive income (loss) | $ (254) |
STOCKHOLDERS' EQUITY (Summary o
STOCKHOLDERS' EQUITY (Summary of Retained Earnings Not Available for Distribution) (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Equity [Abstract] | ||
Retained earnings not available for distribution | $ 9,110 | $ 8,648 |
STOCKHOLDERS' EQUITY (Share Rep
STOCKHOLDERS' EQUITY (Share Repurchase Program) (Details) - Share Repurchase Program - USD ($) | 4 Months Ended | 12 Months Ended | ||
Oct. 27, 2023 | Aug. 31, 2023 | Aug. 31, 2022 | Jul. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Authorized amount | $ 75,000,000 | |||
Purchase of treasury stock (in shares) | 71,530 | 0 | ||
Subsequent Event | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Purchase of treasury stock (in shares) | 1,007,000 |
STOCKHOLDERS' EQUITY (Schedul_3
STOCKHOLDERS' EQUITY (Schedule of Share-Based Payment Arrangement, Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Equity, Class of Treasury Stock [Line Items] | |||
Total cost of common share acquired | $ 12,863 | $ 6,259 | $ 5,542 |
Share Repurchase Program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Number of common shares acquired (in shares) | 71,530 | 0 | |
Average price per common share acquired (in dollars per share) | $ 78.54 | $ 0 | |
Total cost of common share acquired | $ 5,618 | $ 0 |
POST EMPLOYMENT PLANS (Narrativ
POST EMPLOYMENT PLANS (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Aug. 31, 2023 USD ($) country | Aug. 31, 2022 USD ($) | Aug. 31, 2021 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Maximum contribution rate of annual eligible earnings to be matched under 401(k) plans | 4% | ||
Number of countries have unfunded post-employment benefit plans (defined benefit plans) in which the subsidiary is required to pay a specified benefit | country | 3 | ||
U.S. federal | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions | $ 2.9 | $ 2.9 | $ 2.6 |
Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions | $ 4.5 | $ 3.6 | $ 3 |
Maximum | Non-Officer | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employee contribution rate | 2% |
POST EMPLOYMENT PLANS (Schedule
POST EMPLOYMENT PLANS (Schedule of Defined Benefit Plans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Other Long-Term Liability | |||
Start of period | $ (2,976) | $ (2,298) | |
Service cost | (303) | (205) | |
Interest cost | (139) | (129) | $ (104) |
Prior service cost (including amortization) | 26 | 36 | 55 |
Actuarial gains/(losses) | (2,425) | (344) | |
Totals | (5,843) | (2,976) | (2,298) |
Accumulated Other Comprehensive Loss | |||
Start of period | 1,205 | 897 | |
Service cost | 0 | 0 | |
Interest cost | 0 | 0 | |
Prior service cost (including amortization) | (26) | (36) | |
Actuarial gains/(losses) | 2,425 | 344 | |
Totals | 3,604 | 1,205 | 897 |
Service cost | 365 | 315 | 229 |
Actuarial gains/(losses) | 122 | 92 | 72 |
Totals | 652 | 572 | $ 460 |
Deferred tax asset on defined benefit plan | 1,106 | 377 | |
Accumulated other comprehensive loss, net of tax | $ (2,500) | $ (829) | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Costs and Expenses | Costs and Expenses | Costs and Expenses |
POST EMPLOYMENT PLANS (Schedu_2
POST EMPLOYMENT PLANS (Schedule of Assumptions Used) (Details) - Post-Employment Benefit Plans | Aug. 31, 2023 | Aug. 31, 2022 |
Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.60% | 3.50% |
Future salary escalation | 3% | 3% |
Percentage of employees assumed to withdraw from Company without a benefit (“turnover”) | 6.70% | 6.70% |
Percentage of employees assumed to withdraw from Company with a benefit (“disability”) | 0.50% | 0.50% |
Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 6.40% | 6.40% |
Future salary escalation | 5.20% | 4.50% |
Percentage of employees assumed to withdraw from Company without a benefit (“turnover”) | 15% | 15% |
Percentage of employees assumed to withdraw from Company with a benefit (“disability”) | 1.50% | 6.60% |
POST EMPLOYMENT PLANS (Schedu_3
POST EMPLOYMENT PLANS (Schedule of Net Periodic Benefit Cost) (Details) $ in Thousands | Aug. 31, 2023 USD ($) |
Retirement Benefits [Abstract] | |
Prior service cost | $ 26 |
Amortization of actuarial loss | 539 |
Total | $ 565 |
POST EMPLOYMENT PLANS (Summary
POST EMPLOYMENT PLANS (Summary of Other Post Employment Plans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Accrued Salaries and Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other Post Employment Plans | $ 738 | $ 522 | |
Other Long-Term Liability | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other Post Employment Plans | 5,077 | 4,567 | |
Restricted Cash Held | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other Post Employment Plans | 4,859 | 4,382 | |
Operating Expense | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other Post Employment Plans | $ 1,754 | $ 1,423 | $ 1,447 |
STOCK BASED COMPENSATION (Narra
STOCK BASED COMPENSATION (Narrative) (Details) | 12 Months Ended | |||||
Jan. 22, 2013 item shares | Aug. 31, 2023 shares | Aug. 31, 2023 award shares | Aug. 31, 2023 item shares | Aug. 31, 2023 shares | Aug. 31, 2021 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of types of equity awards issued | 3 | 3 | ||||
Number of maximum aggregate shares to be issued (in shares) | 2,966,867 | 2,966,867 | 2,966,867 | 2,966,867 | ||
Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
2013 Equity Incentive Award Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized (in shares) | 1,100,000 | 2,317,923 | 2,317,923 | 2,317,923 | 2,317,923 | |
Number of previous equity incentive plans | item | 3 | |||||
Number of additional shares authorized (in shares) | 750,000 | 500,000 |
STOCK BASED COMPENSATION (Summa
STOCK BASED COMPENSATION (Summary of Shares Authorized and Shares Available for Future Grants) (Details) - 2013 Equity Incentive Award Plan - shares | Aug. 31, 2023 | Aug. 31, 2022 | Jan. 22, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized for issuance (in shares) | 2,317,923 | 1,100,000 | |
Shares available to grant (in shares) | 1,223,574 | 549,319 |
STOCK BASED COMPENSATION (Sum_2
STOCK BASED COMPENSATION (Summary of Components of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Restricted stock awards | $ 10,641 | $ 9,378 | $ 11,010 |
Restricted stock units | 3,701 | 3,519 | 3,939 |
Performance-based restricted stock units | 2,232 | 3,906 | 3,475 |
Stock-based compensation expense | $ 16,574 | $ 16,803 | $ 18,424 |
STOCK BASED COMPENSATION (Sum_3
STOCK BASED COMPENSATION (Summary of Other Information Related to Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Remaining unrecognized compensation cost | $ 15,386 | $ 18,478 | $ 16,349 |
Weighted average period of time over which this cost will be recognized (years) | 2 years | 2 years | 2 years |
STOCK BASED COMPENSATION (Sum_4
STOCK BASED COMPENSATION (Summary of Excess Tax Benefit (Deficiency) on Stock-based Compensation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Excess tax benefit (deficiency) on stock-based compensation (in thousands) | $ (2,787) | $ (2,259) | $ (778) |
STOCK BASED COMPENSATION (Sum_5
STOCK BASED COMPENSATION (Summary of Restricted Stock Awards and Units Activity) (Details) - shares shares in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Grants outstanding at beginning of period (in shares) | 361,822 | 375,622 | 415,869 |
Granted (in shares) | 365,850 | 261,204 | 166,160 |
Forfeited (in shares) | (118,577) | (16,184) | (12,436) |
Vested (in shares) | (266,354) | (258,820) | (193,971) |
Grants outstanding at end of period (in shares) | 342,741 | 361,822 | 375,622 |
STOCK BASED COMPENSATION (Sum_6
STOCK BASED COMPENSATION (Summary of Weighted Average Per Share Grant Date Fair Value for Restricted Stock Awards and Units) (Details) - $ / shares | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
RSAs, RSUs, and PSUs granted (in dollars per share) | $ 63.93 | $ 76.85 | $ 79.02 |
RSAs, RSUs, and PSUs vested (in dollars per share) | 70.26 | 72.69 | 70.03 |
RSAs, RSUs, and PSUs forfeited (in dollars per share) | $ 66.14 | $ 69.70 | $ 70.56 |
STOCK BASED COMPENSATION (Sum_7
STOCK BASED COMPENSATION (Summary of Total Fair Market Value of Restricted Stock Awards and Units Vested) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Total fair market value of restricted stock awards and units vested | $ 19,325 | $ 18,422 | $ 17,478 |
STOCK BASED COMPENSATION (Sum_8
STOCK BASED COMPENSATION (Summary of Shares Repurchased) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Shares repurchased (in shares) | 99,998 | 88,415 | 62,282 |
Cost of repurchase of shares (in thousands) | $ 7,245 | $ 6,259 | $ 5,542 |
STOCK BASED COMPENSATION (Sum_9
STOCK BASED COMPENSATION (Summary of Treasury Shares Reissued) (Details) - shares | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Reissued treasury shares (in shares) | 6,333 | 8,314 | 96,400 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) $ in Thousands | Aug. 31, 2023 USD ($) lease property agreement | Aug. 31, 2022 USD ($) |
Loss Contingencies [Line Items] | ||
Accrual for taxes other than income taxes, current | $ 9,600 | $ 1,100 |
Accrued tax liability | 2,000 | |
Contractual obligation | $ 11,300 | $ 16,500 |
Number of lease agreements | lease | 1 | |
Lease term | 20 years | |
Land purchase option, number of agreements | agreement | 4 | |
Purchase options, land | $ 14,000 | |
Warehouse | ||
Loss Contingencies [Line Items] | ||
Number of properties available for lease option | property | 1 | |
Number of lease options agreements | agreement | 1 | |
Foreign Tax Authority | ||
Loss Contingencies [Line Items] | ||
Liability adjustment from settlement with taxing authority | $ 7,200 | |
Foreign Tax Authority | Year Of Dispute | ||
Loss Contingencies [Line Items] | ||
Liability adjustment from settlement with taxing authority | 1,000 | |
Foreign Tax Authority | Year Following The Dispute Year | ||
Loss Contingencies [Line Items] | ||
Liability adjustment from settlement with taxing authority | $ 6,200 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Estimated Future Minimum Lease) (Details) $ in Thousands | Aug. 31, 2023 USD ($) |
Other Commitments [Line Items] | |
2024 | $ 15,502 |
2025 | 15,244 |
2026 | 13,711 |
2027 | 11,520 |
2028 | 11,028 |
Thereafter | 166,398 |
Total future lease payments | 233,403 |
Guatemala | |
Other Commitments [Line Items] | |
2024 | 0 |
2025 | 276 |
2026 | 1,604 |
2027 | 1,558 |
2028 | 1,513 |
Thereafter | 20,013 |
Total future lease payments | $ 24,964 |
INCOME TAXES (Income from Conti
INCOME TAXES (Income from Continuing Operations Before Provision for Income Taxes and Loss of Unconsolidated Affiliates) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 57,941 | $ 55,667 | $ 33,818 |
Foreign | 111,270 | 100,754 | 113,368 |
Income before provision for income taxes and loss of unconsolidated affiliates | $ 169,211 | $ 156,421 | $ 147,186 |
INCOME TAXES (Significant Compo
INCOME TAXES (Significant Components of Income Tax Provision) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Current: | |||
U.S. tax expense | $ 21,604 | $ 20,824 | $ 16,904 |
Foreign tax expense | 41,639 | 34,334 | 35,918 |
Total | 63,243 | 55,158 | 52,822 |
Deferred: | |||
U.S. tax benefit | (11,958) | (11,894) | (10,212) |
U.S. valuation allowance change | 12,598 | 11,823 | 9,777 |
Foreign tax benefit | (3,935) | (3,259) | (3,125) |
Foreign valuation allowance change | 3 | 30 | (293) |
Total | (3,292) | (3,300) | (3,853) |
Provision for income taxes | $ 59,951 | $ 51,858 | $ 48,969 |
INCOME TAXES (Schedule of Recon
INCOME TAXES (Schedule of Reconciliation of Effective Tax Rate) (Details) | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Federal tax provision at statutory rates | 21% | 21% | 21% |
State taxes, net of federal benefit | 0.30% | 0.20% | 0.10% |
Differences in foreign tax rates | 6.80% | 7.10% | 6.90% |
Permanent items and other adjustments | (0.10%) | (2.60%) | (2.20%) |
Increase in valuation allowance | 7.40% | 7.50% | 7.50% |
Provision for income taxes | 35.40% | 33.20% | 33.30% |
INCOME TAXES (Significant Com_2
INCOME TAXES (Significant Components of Deferred Tax Assets) (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Deferred tax assets: | ||
Foreign tax credits | $ 43,632 | $ 32,322 |
Deferred compensation | 1,664 | 1,782 |
U.S. timing differences | 6,845 | 7,746 |
Foreign net operating losses | 4,911 | 5,026 |
Gross deferred tax assets | 88,915 | 77,581 |
U.S. deferred tax liabilities (depreciation and other timing differences) | (3,035) | (2,273) |
Foreign deferred tax liabilities netted against deferred tax assets | (5,552) | (8,697) |
U.S. valuation allowance | (43,860) | (33,824) |
Foreign valuation allowance | (4,430) | (4,432) |
Net deferred tax assets | 32,038 | 28,355 |
Accrued expenses and other timing differences | ||
Deferred tax assets: | ||
Foreign timing differences | 9,365 | 9,937 |
Depreciation and amortization | ||
Deferred tax assets: | ||
Foreign timing differences | 15,160 | 13,019 |
Deferred income | ||
Deferred tax assets: | ||
Foreign timing differences | $ 7,338 | $ 7,749 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) $ in Thousands | 12 Months Ended | |||
Aug. 31, 2023 USD ($) country | Aug. 31, 2022 USD ($) | Aug. 31, 2021 USD ($) | Aug. 31, 2020 USD ($) | |
Income Tax Contingency [Line Items] | ||||
Provision for income taxes, percentage | 35.40% | 33.20% | 33.30% | |
Effective income tax rate reconciliation, favorable impact due to income falling into lower tax jurisdiction, percent | 2% | |||
Effective tax rate reconciliation, tax settlement, foreign, percent | 1.80% | |||
Effective income tax rate reconciliation, nondeductible expense, impairment losses, percent | 2.20% | |||
Deferred tax assets | $ 26,800 | $ 22,600 | ||
Undistributed foreign earnings | 369,600 | 335,500 | ||
Unrecognized tax benefits | 4,745 | 5,041 | $ 3,911 | $ 4,573 |
Deferred income taxes that could reduce unrecognized tax benefits | 1,400 | |||
Timing adjustments | 300 | |||
Unrecognized tax benefit, net amount if recognized would favorably affect the effective tax rate | 4,400 | |||
Unrecognized tax benefits, income tax penalties and interest accrued | 1,600 | 1,500 | ||
Expected change in unrecognized tax benefits reduction of taxes payable (up to) | $ 600 | |||
Number of countries that require the Company to pay taxes based on a percentage of sales rather than income | country | 2 | |||
Income taxes receivable | $ 36,925 | 32,062 | ||
Foreign Tax Authority | ||||
Income Tax Contingency [Line Items] | ||||
Liability adjustment from settlement with taxing authority | 7,200 | |||
Foreign Tax Authority | Year Of Dispute | ||||
Income Tax Contingency [Line Items] | ||||
Liability adjustment from settlement with taxing authority | 1,000 | |||
Foreign Tax Authority | Year Following The Dispute Year | ||||
Income Tax Contingency [Line Items] | ||||
Liability adjustment from settlement with taxing authority | 6,200 | |||
Two Countries | ||||
Income Tax Contingency [Line Items] | ||||
Income taxes receivable | 10,700 | 11,000 | ||
Deferred tax assets, net | $ 3,700 | $ 3,500 |
INCOME TAXES (Reconciliation of
INCOME TAXES (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of fiscal year | $ 5,041 | $ 3,911 | $ 4,573 |
Gross increase - tax positions in prior period | 35 | 264 | 135 |
Gross decrease - tax positions in prior period | 0 | 0 | (306) |
Additions based on tax positions related to the current year | 143 | 1,356 | 333 |
Expiration of the statute of limitations for the assessment of taxes | (474) | (490) | (824) |
Balance at end of fiscal year | $ 4,745 | $ 5,041 | $ 3,911 |
INCOME TAXES (Summary of Income
INCOME TAXES (Summary of Income Tax Examinations) (Details) | 12 Months Ended |
Aug. 31, 2023 | |
U.S. federal | Domestic Tax Authority | |
Income Tax Examination [Line Items] | |
Fiscal Years Subject to Audit | 2005, 2007, 2014* to 2017*, 2018, 2020 to the present |
California (U.S.) (state return) | State | |
Income Tax Examination [Line Items] | |
Fiscal Years Subject to Audit | 2005 and 2019 to the present |
Florida (U.S.) (state return) | State | |
Income Tax Examination [Line Items] | |
Fiscal Years Subject to Audit | 2011* to 2018*, 2020 to the present |
Aruba | Foreign Tax Authority | |
Income Tax Examination [Line Items] | |
Fiscal Years Subject to Audit | 2018 to the present |
Barbados | Foreign Tax Authority | |
Income Tax Examination [Line Items] | |
Fiscal Years Subject to Audit | 2017 to the present |
Costa Rica | Foreign Tax Authority | |
Income Tax Examination [Line Items] | |
Fiscal Years Subject to Audit | 2011 to 2012, 2015 to 2016, 2019 to the present |
Colombia | Foreign Tax Authority | |
Income Tax Examination [Line Items] | |
Fiscal Years Subject to Audit | 2017 to the present |
Dominican Republic | Foreign Tax Authority | |
Income Tax Examination [Line Items] | |
Fiscal Years Subject to Audit | 2011 to 2012, 2016, 2020 to the present |
El Salvador | Foreign Tax Authority | |
Income Tax Examination [Line Items] | |
Fiscal Years Subject to Audit | 2019 to the present |
Guatemala | Foreign Tax Authority | |
Income Tax Examination [Line Items] | |
Fiscal Years Subject to Audit | 2012 to 2013, 2019 to the present |
Honduras | Foreign Tax Authority | |
Income Tax Examination [Line Items] | |
Fiscal Years Subject to Audit | 2018 to the present |
Jamaica | Foreign Tax Authority | |
Income Tax Examination [Line Items] | |
Fiscal Years Subject to Audit | 2017 to the present |
Mexico | Foreign Tax Authority | |
Income Tax Examination [Line Items] | |
Fiscal Years Subject to Audit | 2019 to the present |
Nicaragua | Foreign Tax Authority | |
Income Tax Examination [Line Items] | |
Fiscal Years Subject to Audit | 2019 to the present |
Panama | Foreign Tax Authority | |
Income Tax Examination [Line Items] | |
Fiscal Years Subject to Audit | 2018 to the present |
Trinidad | Foreign Tax Authority | |
Income Tax Examination [Line Items] | |
Fiscal Years Subject to Audit | 2016 to the present |
U.S. Virgin Islands | Domestic Tax Authority | |
Income Tax Examination [Line Items] | |
Fiscal Years Subject to Audit | 2001 to the present |
Spain | Foreign Tax Authority | |
Income Tax Examination [Line Items] | |
Fiscal Years Subject to Audit | 2020 to the present |
Chile | Foreign Tax Authority | |
Income Tax Examination [Line Items] | |
Fiscal Years Subject to Audit | 2020* to the present |
DEBT (Schedule of Short-Term Bo
DEBT (Schedule of Short-Term Borrowings) (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Committed | ||
Short-Term Debt [Line Items] | ||
Total Amount of Facilities | $ 75,000 | $ 75,000 |
Facilities Available | $ 75,000 | $ 74,927 |
Weighted average interest rate | 0% | 0% |
Uncommitted | ||
Short-Term Debt [Line Items] | ||
Total Amount of Facilities | $ 91,000 | $ 91,000 |
Facilities Available | $ 82,624 | $ 80,392 |
Weighted average interest rate | 13.20% | 5.30% |
Overdraft Used Uncommitted | ||
Short-Term Debt [Line Items] | ||
Total Amount of Facilities | $ 0 | |
Facilities Available | $ 0 | |
Weighted average interest rate | 12% | |
Facilities | ||
Short-Term Debt [Line Items] | ||
Total Amount of Facilities | $ 166,000 | $ 166,000 |
Facilities Available | $ 157,624 | $ 155,319 |
Weighted average interest rate | 12.70% | 5.30% |
Short-term Borrowings | Committed | ||
Short-Term Debt [Line Items] | ||
Facilities Used | $ 0 | $ 0 |
Short-term Borrowings | Uncommitted | ||
Short-Term Debt [Line Items] | ||
Facilities Used | 8,376 | 10,608 |
Short-term Borrowings | Overdraft Used Uncommitted | ||
Short-Term Debt [Line Items] | ||
Facilities Used | 303 | |
Short-term Borrowings | Facilities | ||
Short-Term Debt [Line Items] | ||
Facilities Used | 8,679 | 10,608 |
Letters of Credit | Committed | ||
Short-Term Debt [Line Items] | ||
Facilities Used | 0 | 73 |
Letters of Credit | Uncommitted | ||
Short-Term Debt [Line Items] | ||
Facilities Used | 0 | 0 |
Letters of Credit | Overdraft Used Uncommitted | ||
Short-Term Debt [Line Items] | ||
Facilities Used | 0 | |
Letters of Credit | Facilities | ||
Short-Term Debt [Line Items] | ||
Facilities Used | $ 0 | $ 73 |
DEBT (Narrative) (Details)
DEBT (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 USD ($) bank facility | Aug. 31, 2022 USD ($) | Aug. 31, 2021 USD ($) | |
Debt Instrument [Line Items] | |||
Number of facilities in a committed credit agreement | facility | 1 | ||
Number of banks | bank | 1 | ||
Annual commitment fee | 0.25% | ||
Total long-term debt | $ 139,680 | $ 137,271 | $ 129,505 |
Group of Subsidiaries | Debt With Covenants | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 91,200 | $ 110,700 |
DEBT (Schedule of Changes in Lo
DEBT (Schedule of Changes in Long-Term Debt) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Total | |||
Current portion of long-term debt | $ 33,715 | $ 19,395 | |
Long-term debt (net of current portion) | 103,556 | 110,110 | |
Total | 137,271 | 129,505 | |
Proceeds from long-term debt received during the period: | |||
Current portion of long-term debt | 1,751 | 4,924 | |
Long-term debt (net of current portion) | 36,962 | 25,709 | |
Total | 38,713 | 30,633 | $ 17,565 |
Repayments of long-term debt: | |||
Current portion of long-term debt | (17,541) | (8,110) | |
Long-term debt (net of current portion) | (18,443) | (14,587) | |
Total | (35,984) | (22,697) | (19,993) |
Reclassifications of long-term debt due in the next 12 months | |||
Current portion of long-term debt | 1,729 | 17,618 | |
Long-term debt (net of current portion) | (1,729) | (17,618) | |
Total | 0 | 0 | |
Translation adjustments on foreign currency debt of subsidiaries whose functional currency is not the U.S. dollar | |||
Current portion of long-term debt | 539 | (112) | |
Long-term debt (net of current portion) | (859) | (58) | |
Total | (320) | (170) | |
Current portion of long-term debt | 20,193 | 33,715 | 19,395 |
Long-term debt (net of current portion) | 119,487 | 103,556 | 110,110 |
Total | 139,680 | 137,271 | 129,505 |
NonCash Asset | |||
Translation adjustments on foreign currency debt of subsidiaries whose functional currency is not the U.S. dollar | |||
Collateral amount | 156,200 | 155,600 | 153,500 |
Cash Asset | |||
Translation adjustments on foreign currency debt of subsidiaries whose functional currency is not the U.S. dollar | |||
Collateral amount | 3,500 | 5,300 | $ 7,000 |
Guatemala subsidiary | |||
Proceeds from long-term debt received during the period: | |||
Current portion of long-term debt | 0 | 0 | |
Long-term debt (net of current portion) | 12,454 | 4,204 | |
Total | 12,454 | 4,204 | |
Trinidad subsidiary | |||
Proceeds from long-term debt received during the period: | |||
Current portion of long-term debt | 750 | 4,924 | |
Long-term debt (net of current portion) | 4,250 | 21,505 | |
Total | 5,000 | $ 26,429 | |
Barbados subsidiary | |||
Proceeds from long-term debt received during the period: | |||
Current portion of long-term debt | 0 | ||
Long-term debt (net of current portion) | 7,460 | ||
Total | 7,460 | ||
Honduras subsidiary | |||
Proceeds from long-term debt received during the period: | |||
Current portion of long-term debt | 1,001 | ||
Long-term debt (net of current portion) | 12,798 | ||
Total | $ 13,799 |
DEBT (Schedule of Long-Term Deb
DEBT (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 |
Debt Instrument [Line Items] | |||
Total | $ 139,680 | $ 137,271 | $ 129,505 |
Less: current portion | 20,193 | 33,715 | 19,395 |
Long-term debt, net of current portion | 119,487 | 103,556 | $ 110,110 |
Cross Currency Interest Rate Swap With Non-Cash Assets And/Or Cash Or Cash Equivalents | |||
Debt Instrument [Line Items] | |||
Total | 23,099 | 33,853 | |
Interest Rate Swap With Non-Cash Assets And/Or Cash Or Cash Equivalents | |||
Debt Instrument [Line Items] | |||
Total | 30,069 | 39,969 | |
Non-Cash Assets And/Or Cash Or Cash Equivalents | |||
Debt Instrument [Line Items] | |||
Total | $ 86,512 | $ 63,449 |
DEBT (Schedule of Annual Maturi
DEBT (Schedule of Annual Maturities of Long-Term Debt) (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 |
Debt Disclosure [Abstract] | |||
2024 | $ 20,193 | ||
2025 | 36,151 | ||
2026 | 18,450 | ||
2027 | 33,188 | ||
2028 | 17,512 | ||
Thereafter | 14,186 | ||
Total | $ 139,680 | $ 137,271 | $ 129,505 |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) | Aug. 31, 2023 |
Lessee, Lease, Description [Line Items] | |
Lease term | 20 years |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 2 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease term | 41 years |
LEASES (Summary of Components o
LEASES (Summary of Components of Total Lease Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Leases [Abstract] | ||
Operating lease cost | $ 15,753 | $ 15,632 |
Short-term lease cost | 162 | 49 |
Variable lease cost | 5,034 | 4,376 |
Sublease income | (91) | (180) |
Total lease costs | $ 20,858 | $ 19,877 |
LEASES (Weighted Average Remain
LEASES (Weighted Average Remaining Lease Term and Weighted Average Discount Rate) (Details) | Aug. 31, 2023 | Aug. 31, 2022 |
Leases [Abstract] | ||
Weighted average remaining lease term in years | 17 years 9 months 18 days | 18 years 3 months 18 days |
Weighted average discount rate percentage | 6.80% | 6.70% |
LEASES (Supplemental Cash Flow
LEASES (Supplemental Cash Flow Information Related To Leases) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Leases [Abstract] | ||
Operating cash flows paid for operating leases | $ 15,753 | $ 14,885 |
LEASES (Schedule of Future Mini
LEASES (Schedule of Future Minimum Lease Commitments) (Details) $ in Thousands | Aug. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 15,502 |
2025 | 15,244 |
2026 | 13,711 |
2027 | 11,520 |
2028 | 11,028 |
Thereafter | 166,398 |
Total future lease payments | 233,403 |
Less imputed interest | (103,587) |
Total operating lease liabilities | $ 129,816 |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Schedule of Interest Rate Derivatives) (Details) - Cash Flow Hedging | Aug. 31, 2023 USD ($) |
Colombia $10M Cross Currency Interest Rate Swap One | |
Derivative [Line Items] | |
Initial US$ Notional Amount | $ 10,000,000 |
Floating Leg (swap counter-party) | 4% |
Fixed Rate for PSMT Subsidiary | 11.40% |
Colombia $12.5M Cross Currency Interest Rate Swap | |
Derivative [Line Items] | |
Initial US$ Notional Amount | $ 12,500,000 |
Floating Leg (swap counter-party) | 3% |
Fixed Rate for PSMT Subsidiary | 10.35% |
Colombia $10M Cross Currency Interest Rate Swap | |
Derivative [Line Items] | |
Initial US$ Notional Amount | $ 10,000,000 |
Floating Leg (swap counter-party) | 3% |
Fixed Rate for PSMT Subsidiary | 9.04% |
Colombia $10M Cross Currency Interest Rate Swap One | |
Derivative [Line Items] | |
Initial US$ Notional Amount | $ 10,000,000 |
Floating Leg (swap counter-party) | 3% |
Fixed Rate for PSMT Subsidiary | 8.40% |
Colombia $7.875M Cross Currency Interest Rate Swap | |
Derivative [Line Items] | |
Initial US$ Notional Amount | $ 7,875,000 |
Basis spread on variable rate | 2.45% |
Fixed Rate for PSMT Subsidiary | 7.87% |
Colombia $25M Interest Rate Swap | |
Derivative [Line Items] | |
Initial US$ Notional Amount | $ 25,000,000 |
Basis spread on variable rate | 2.45% |
Fixed Rate for PSMT Subsidiary | 7.93% |
Pricesmart $35.7M Interest Rate Swap | |
Derivative [Line Items] | |
Initial US$ Notional Amount | $ 35,700,000 |
Basis spread on variable rate | 1.70% |
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 | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Derivative [Line Items] | |||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Expense | Interest Expense | Interest Expense |
Cash Flow Hedging | |||
Derivative [Line Items] | |||
Derivative, gain (loss) on derivative, Net | $ 5,835 | $ 5,811 | $ 6,274 |
Interest expense on borrowings | Cash Flow Hedging | |||
Derivative [Line Items] | |||
Derivative, gain (loss) on derivative, Net | 4,630 | 2,577 | 2,619 |
Cost of swaps | Cash Flow Hedging | |||
Derivative [Line Items] | |||
Derivative, gain (loss) on derivative, Net | $ 1,205 | $ 3,234 | $ 3,655 |
DERIVATIVE INSTRUMENTS AND HE_5
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Schedule of Notional Amounts of Outstanding Derivative Positions) (Details) - Cash Flow Hedging - USD ($) $ in Thousands | Aug. 31, 2023 | Aug. 31, 2022 |
Derivative [Line Items] | ||
Notional Amount as of | $ 95,668 | $ 106,322 |
Union Bank | ||
Derivative [Line Items] | ||
Notional Amount as of | 30,069 | 31,344 |
Citibank N.A. | ||
Derivative [Line Items] | ||
Notional Amount as of | 65,599 | 66,353 |
Scotiabank | ||
Derivative [Line Items] | ||
Notional Amount as of | $ 0 | $ 8,625 |
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 | Aug. 31, 2023 | Aug. 31, 2022 |
Derivative [Line Items] | ||
Derivative asset, noncurrent | $ 7,817 | $ 11,884 |
Derivative liability, current | (1,913) | (82) |
Derivative liability, noncurrent | $ (3,321) | $ 0 |
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] | Prepaid Expense and Other Assets, Current | Prepaid Expense and Other Assets, Current |
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other non-current assets (includes $7,817 and $11,884 as of August 31, 2023 and August 31, 2022, respectively, for the fair value of derivative instruments) | Other non-current assets (includes $7,817 and $11,884 as of August 31, 2023 and August 31, 2022, respectively, for the fair value of derivative instruments) |
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other accrued expenses and other current liabilities (includes $1,913 and $82 as of August 31, 2023 and August 31, 2022, respectively, for the fair value of derivative instruments) | Other accrued expenses and other current liabilities (includes $1,913 and $82 as of August 31, 2023 and August 31, 2022, respectively, for the fair value of derivative instruments) |
Derivative Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities (includes $3,321 and $0 for the fair value of derivative instruments and $12,105 and $8,440 for post-employment plans as of August 31, 2023 and August 31, 2022, respectively) | Other long-term liabilities (includes $3,321 and $0 for the fair value of derivative instruments and $12,105 and $8,440 for post-employment plans as of August 31, 2023 and August 31, 2022, respectively) |
Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Net fair value of derivatives designated as hedging instruments | $ 4,496 | $ 14,539 |
Net Tax Effect | (1,289) | (4,888) |
Net OCI | 3,207 | 9,651 |
Cross-currency interest rate swaps | Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Fair value of asset, current | 0 | 2,736 |
Net Tax Effect | 0 | (348) |
Net OCI | 0 | 2,388 |
Cross-currency interest rate swaps | Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Derivative asset, noncurrent | 5,574 | 10,289 |
Net Tax Effect | (1,950) | (4,559) |
Net OCI | 3,624 | 5,730 |
Cross-currency interest rate swaps | Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Derivative liability, current | 0 | (82) |
Net Tax Effect | 0 | 25 |
Net OCI | 0 | (57) |
Cross-currency interest rate swaps | Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Derivative liability, noncurrent | (3,321) | 0 |
Net Tax Effect | 1,162 | 0 |
Net OCI | (2,159) | 0 |
Interest rate swaps | Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Derivative asset, noncurrent | 2,243 | 1,596 |
Net Tax Effect | (501) | (6) |
Net OCI | $ 1,742 | $ 1,590 |
DERIVATIVE INSTRUMENTS AND HE_7
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Schedule Of Open Non-Deliverable Forward Foreign Exchange Contract) (Details) - Fair Value Hedging - Non-Deliverable Foreign Exchange Forward $ in Thousands | Aug. 31, 2023 USD ($) |
8-Sep-2023 - 24-Jan-2024 | |
Derivative [Line Items] | |
Notional amount | $ 8,500 |
18-Sep-2023 - 24-Apr-2024 | |
Derivative [Line Items] | |
Notional amount | $ 13,000 |
RELATED-PARTY TRANSACTIONS (Det
RELATED-PARTY TRANSACTIONS (Details) | 12 Months Ended | ||||||||
Dec. 12, 2013 item | Aug. 31, 2023 USD ($) | Aug. 31, 2022 USD ($) | Aug. 31, 2021 USD ($) | Feb. 03, 2023 USD ($) | Jul. 14, 2017 ft² | Jul. 14, 2017 m² | Dec. 12, 2013 ft² | Dec. 12, 2013 m² | |
Refused Compensation | Founder And Chairman Of The Board | |||||||||
Related Party Transaction [Line Items] | |||||||||
Amount of unrecorded hypothetical liability | $ 5,100,000 | ||||||||
Edgar Zurcher Law Firm | Rental Income | Director | |||||||||
Related Party Transaction [Line Items] | |||||||||
Revenue from external customers | $ 718,000 | $ 927,000 | $ 1,400,000 | ||||||
Edgar Zurcher Law Firm | Product Purchases | |||||||||
Related Party Transaction [Line Items] | |||||||||
Related party transaction, purchases from related party | $ 1,900,000 | 1,100,000 | 1,100,000 | ||||||
Edgar Zurcher Law Firm | Payless ShoeSource Holdings, Ltd. | |||||||||
Related Party Transaction [Line Items] | |||||||||
Ownership percentage in unaffiliated entity | 40% | ||||||||
Price Philanthropies Foundation | Related Party | |||||||||
Related Party Transaction [Line Items] | |||||||||
Revenue from external customers | $ 1,000,000 | $ 438,000 | 1,600,000 | ||||||
GolfPark Plaza, S.A. | Corporate Joint Venture | Panama | |||||||||
Related Party Transaction [Line Items] | |||||||||
Area of property | 2,992 | 278 | 17,976 | 1,670 | |||||
Operating leases, term | 15 years | ||||||||
Number of renewal options | item | 3 | ||||||||
Renewal term | 5 years | 5 years | |||||||
Operating leases, rent expense, net | $ 140,000 | $ 149,000 | $ 149,800 |
UNCONSOLIDATED AFFILIATES (Narr
UNCONSOLIDATED AFFILIATES (Narrative) (Details) - Panama - Corporate Joint Venture - GolfPark Plaza, S.A. | 12 Months Ended | |||||||
Dec. 12, 2013 item | Aug. 31, 2023 USD ($) | Aug. 31, 2022 USD ($) | Aug. 31, 2021 USD ($) | Jul. 14, 2017 ft² | Jul. 14, 2017 m² | Dec. 12, 2013 ft² | Dec. 12, 2013 m² | |
Variable Interest Entity [Line Items] | ||||||||
Area of property | 2,992 | 278 | 17,976 | 1,670 | ||||
Operating leases, term | 15 years | |||||||
Number of renewal options | item | 3 | |||||||
Renewal term | 5 years | 5 years | ||||||
Rent expense | $ | $ 140,000 | $ 149,000 | $ 149,800 |
UNCONSOLIDATED AFFILIATES (Sche
UNCONSOLIDATED AFFILIATES (Schedule of Variable Interest Entities Maximum Loss Exposure) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2023 | Aug. 31, 2022 | |
Variable Interest Entity [Line Items] | ||
Initial Investment | $ 6,809 | |
Additional Investments | 3,638 | |
Net Income (Loss) Inception to Date | 32 | |
Company’s Variable Interest in Entity | 10,479 | $ 10,534 |
Commitment to Future Additional Investments | 884 | |
Company's Maximum Exposure to Loss in Entity | $ 11,363 | |
GolfPark Plaza, S.A. | ||
Variable Interest Entity [Line Items] | ||
% Ownership | 50% | |
Initial Investment | $ 4,616 | |
Additional Investments | 2,402 | |
Net Income (Loss) Inception to Date | (98) | |
Company’s Variable Interest in Entity | 6,920 | |
Commitment to Future Additional Investments | 99 | |
Company's Maximum Exposure to Loss in Entity | $ 7,019 | |
Price Plaza Alajuela PPA, S.A. | ||
Variable Interest Entity [Line Items] | ||
% Ownership | 50% | |
Initial Investment | $ 2,193 | |
Additional Investments | 1,236 | |
Net Income (Loss) Inception to Date | 130 | |
Company’s Variable Interest in Entity | 3,559 | |
Commitment to Future Additional Investments | 785 | |
Company's Maximum Exposure to Loss in Entity | $ 4,344 |
UNCONSOLIDATED AFFILIATES (Summ
UNCONSOLIDATED AFFILIATES (Summary of Financial Information of Unconsolidated Affiliates) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2023 | |
Assets and Liabilities, Net | |||
Current assets | $ 1,839 | $ 1,654 | |
Noncurrent assets | 10,109 | 10,324 | |
Current liabilities | 175 | 158 | |
Noncurrent liabilities | 8 | $ 9 | |
Net Income (Loss) | |||
PriceSmart’s share of the net loss of unconsolidated affiliates | $ (10) | $ (58) |
SEGMENTS (Narrative) (Details)
SEGMENTS (Narrative) (Details) - Aug. 31, 2023 | warehouse | country | store |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of stores | 51 | 51 | |
Foreign Countries | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of countries | 12 | ||
Domestic Territories | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of countries | 1 |
SEGMENTS (Summary of Segment Re
SEGMENTS (Summary of Segment Revenues, Operating Costs and Balance Sheet Items) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | $ 4,411,842 | $ 4,066,093 | $ 3,619,871 |
Depreciation, Property and equipment | 71,933 | 66,255 | 62,579 |
Amortization, Intangibles | 765 | 1,613 | 2,404 |
Operating income (loss) | 184,516 | 167,066 | 158,020 |
Interest income from external sources | 9,871 | 2,201 | 1,979 |
Interest income from intersegment sources | 0 | 0 | 0 |
Interest expense from external sources | 11,020 | 9,611 | 7,210 |
Interest expense from intersegment sources | 0 | 0 | 0 |
Provision (benefit) for income taxes | 59,951 | 51,858 | 48,969 |
Net income (loss) attributable to PriceSmart, Inc. | 109,205 | 104,534 | 97,963 |
Long-lived assets (other than deferred tax assets) | 1,053,353 | 962,397 | 931,503 |
Intangibles, net | 765 | 7,762 | |
Goodwill | 43,110 | 43,303 | 45,095 |
Investment in unconsolidated affiliates | 10,479 | 10,534 | 10,544 |
Total Assets | 2,005,608 | 1,808,400 | 1,705,790 |
Capital expenditures, net | 143,912 | 122,342 | 106,108 |
Operating Segments | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Intangibles, net | |||
Investment in unconsolidated affiliates | 0 | 0 | 0 |
Operating Segments | United States Operations | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 31,741 | 48,716 | 88,397 |
Depreciation, Property and equipment | 5,482 | 4,719 | 6,970 |
Amortization, Intangibles | 765 | 1,613 | 2,404 |
Operating income (loss) | 29,844 | 23,364 | 12,687 |
Interest income from external sources | 3,604 | 147 | 13 |
Interest income from intersegment sources | 2,454 | 1,789 | 2,130 |
Interest expense from external sources | 1,165 | 1,225 | 1,606 |
Interest expense from intersegment sources | 75 | 27 | 34 |
Provision (benefit) for income taxes | 23,283 | 19,629 | 15,919 |
Net income (loss) attributable to PriceSmart, Inc. | 9,540 | 8,292 | (4,777) |
Long-lived assets (other than deferred tax assets) | 71,919 | 70,978 | 79,404 |
Intangibles, net | 765 | 7,762 | |
Goodwill | 8,981 | 8,981 | 10,695 |
Total Assets | 302,115 | 230,411 | 246,896 |
Capital expenditures, net | 10,204 | 5,119 | 9,061 |
Operating Segments | Central American Operations | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 2,671,083 | 2,382,163 | 2,105,856 |
Depreciation, Property and equipment | 37,053 | 34,155 | 31,319 |
Amortization, Intangibles | 0 | 0 | 0 |
Operating income (loss) | 191,721 | 171,119 | 151,933 |
Interest income from external sources | 3,977 | 1,115 | 878 |
Interest income from intersegment sources | 1,603 | 1,954 | 2,393 |
Interest expense from external sources | 2,664 | 3,107 | 2,831 |
Interest expense from intersegment sources | 1,258 | 1,187 | 1,286 |
Provision (benefit) for income taxes | 28,045 | 23,396 | 22,661 |
Net income (loss) attributable to PriceSmart, Inc. | 159,014 | 144,159 | 127,879 |
Long-lived assets (other than deferred tax assets) | 566,139 | 498,204 | 490,099 |
Intangibles, net | 0 | 0 | |
Goodwill | 24,083 | 24,250 | 24,332 |
Investment in unconsolidated affiliates | 10,479 | 10,534 | 10,544 |
Total Assets | 995,881 | 867,898 | 795,940 |
Capital expenditures, net | 79,526 | 46,959 | 45,524 |
Operating Segments | Caribbean Operations Segment | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 1,269,307 | 1,156,607 | 1,004,793 |
Depreciation, Property and equipment | 19,188 | 17,061 | 15,432 |
Amortization, Intangibles | 0 | 0 | 0 |
Operating income (loss) | 87,223 | 79,022 | 74,769 |
Interest income from external sources | 2,135 | 863 | 985 |
Interest income from intersegment sources | 253 | 255 | 483 |
Interest expense from external sources | 3,251 | 2,163 | 427 |
Interest expense from intersegment sources | 1,041 | 1,821 | 2,647 |
Provision (benefit) for income taxes | 9,873 | 8,106 | 8,006 |
Net income (loss) attributable to PriceSmart, Inc. | 68,635 | 62,799 | 61,025 |
Long-lived assets (other than deferred tax assets) | 210,000 | 218,021 | 197,030 |
Intangibles, net | 0 | 0 | |
Goodwill | 10,046 | 10,072 | 10,068 |
Investment in unconsolidated affiliates | 0 | 0 | 0 |
Total Assets | 425,145 | 474,411 | 434,428 |
Capital expenditures, net | 24,234 | 36,610 | 23,342 |
Operating Segments | Colombia Operations | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 439,711 | 478,607 | 420,825 |
Depreciation, Property and equipment | 10,210 | 10,320 | 8,858 |
Amortization, Intangibles | 0 | 0 | 0 |
Operating income (loss) | 15,467 | 22,526 | 21,932 |
Interest income from external sources | 155 | 76 | 103 |
Interest income from intersegment sources | 0 | 0 | 0 |
Interest expense from external sources | 3,940 | 3,116 | 2,346 |
Interest expense from intersegment sources | 1,939 | 899 | 298 |
Provision (benefit) for income taxes | (1,250) | 727 | 2,383 |
Net income (loss) attributable to PriceSmart, Inc. | 11,755 | 18,268 | 17,333 |
Long-lived assets (other than deferred tax assets) | 205,295 | 175,194 | 164,970 |
Intangibles, net | 0 | 0 | |
Goodwill | 0 | 0 | 0 |
Investment in unconsolidated affiliates | 0 | 0 | 0 |
Total Assets | 282,467 | 235,680 | 228,526 |
Capital expenditures, net | 29,948 | 33,654 | 28,181 |
Reconciling Items | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | (1,576,384) | (1,524,224) | (1,307,053) |
Reconciling Items | United States Operations | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | (1,538,588) | (1,492,648) | (1,280,236) |
Reconciling Items | Central American Operations | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | (27,709) | (22,119) | (17,861) |
Reconciling Items | Caribbean Operations Segment | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | (5,621) | (5,857) | (5,087) |
Reconciling Items | Colombia Operations | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | (4,466) | (3,600) | (3,869) |
Consolidation, Eliminations | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from external customers | 0 | 0 | 0 |
Depreciation, Property and equipment | 0 | 0 | 0 |
Amortization, Intangibles | 0 | 0 | 0 |
Operating income (loss) | (139,739) | (128,965) | (103,301) |
Interest income from external sources | 0 | 0 | 0 |
Interest income from intersegment sources | (4,310) | (3,998) | (5,006) |
Interest expense from external sources | 0 | 0 | 0 |
Interest expense from intersegment sources | (4,313) | (3,934) | (4,265) |
Provision (benefit) for income taxes | 0 | 0 | 0 |
Net income (loss) attributable to PriceSmart, Inc. | (139,739) | (128,984) | (103,497) |
Long-lived assets (other than deferred tax assets) | 0 | 0 | 0 |
Intangibles, net | 0 | 0 | |
Goodwill | 0 | 0 | 0 |
Investment in unconsolidated affiliates | 0 | 0 | 0 |
Total Assets | 0 | 0 | 0 |
Capital expenditures, net | $ 0 | $ 0 | $ 0 |