DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
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9 Months Ended |
May 31, 2021 |
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| Derivative [Line Items] |
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| Schedule of Interest Rate Derivatives |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Subsidiary | | Date
Entered
into | | Derivative
Financial
Counter-
party | | Derivative
Financial
Instruments | | Initial
US$
Notional
Amount | | Bank
US$
loan
Held
with | | Floating Leg
(swap
counter-party) | | Fixed Rate
for PSMT
Subsidiary | | Settlement
Dates | | Effective
Period of swap | Colombia | | 3-Dec-19 | | Citibank, N.A. ("Citi") | | Cross currency interest rate swap | | $ | 7,875,000 | | Citibank, N.A. | | Variable rate 3-month Libor plus 2.45% | | 7.87 | % | | 3rd day of each December, March, June, and September, beginning on March 3, 2020 | | December 3, 2019 -
December 3, 2024 | Colombia | | 27-Nov-19 | | Citibank, N.A. ("Citi") | | Cross currency interest rate swap | | $ | 25,000,000 | | Citibank, N.A. | | Variable rate 3-month Libor plus 2.45% | | 7.93 | % | | 27th day of each November, February, May and August beginning February 27, 2020 | | November 27, 2019 -
November 27, 2024 | Colombia | | 24-Sep-19 | | Citibank, N.A. ("Citi") | | Cross currency interest rate swap | | $ | 12,500,000 | | PriceSmart, Inc. | | Variable rate 3-month Libor plus 2.50% | | 7.09 | % | | 24th day of each December, March, June and September beginning December 24, 2019 | | September 24, 2019 -
September 26, 2022 | Panama | | 25-Jun-18 | | Bank of Nova Scotia ("Scotiabank") | | Interest rate swap | | $ | 14,625,000 | | Bank of Nova Scotia | | Variable rate 3-month Libor plus 3.0% | | 5.99 | % | | 23rd day of each month beginning on July 23, 2018 | | June 25, 2018 -
March 23, 2023 | Honduras | | 26-Feb-18 | | Citibank, N.A. ("Citi") | | Cross currency interest rate swap | | $ | 13,500,000 | | Citibank, N.A. | | Variable rate 3-month Libor plus 3.00% | | 9.75 | % | | 29th day of May, August, November and February beginning May 29, 2018 | | February 26, 2018 -
February 24, 2024 | PriceSmart, Inc | | 7-Nov-16 | | MUFG Union Bank, N.A. ("Union Bank") | | Interest rate swap | | $ | 35,700,000 | | Union Bank | | Variable rate 1-month Libor plus 1.7% | | 3.65 | % | | 1st day of each month beginning on April 1, 2017 | | March 1, 2017 - March 1, 2027 |
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| Schedule of Notional Amounts of Outstanding Derivative Positions |
| | | | | | | | | | | | | | | | Notional Amount as of | | | May 31, | | August 31, | Floating Rate Payer (Swap Counterparty) | | 2021 | | 2020 | Union Bank | | $ | 32,938 | | $ | 33,894 | Citibank N.A. | | | 52,201 | | | 55,086 | Scotiabank | | | 10,500 | | | 11,625 | Total | | $ | 95,639 | | $ | 100,605 |
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| Schedule of Derivative Instruments in Statement of Financial Position, Fair Value |
| | | | | | | | | | | | | | | | | | | | | | | | | May 31, 2021 | | August 31, 2020 | Derivatives designated as cash flow hedging instruments | | Balance Sheet
Classification | | Fair
Value | | Net Tax
Effect | | Net
OCI | | Fair
Value | | Net Tax
Effect | | Net
OCI | Cross-currency interest rate swaps | | Other non-current assets | | $ | 1,160 | | $ | (353) | | $ | 807 | | $ | 872 | | $ | (265) | | $ | 607 | Interest rate swaps | | Other long-term liabilities | | | (2,338) | | | 547 | | | (1,791) | | | (3,857) | | | 898 | | | (2,959) | Cross-currency interest rate swaps | | Other long-term liabilities | | | (816) | | | 245 | | | (571) | | | (828) | | | 248 | | | (580) | Net fair value of derivatives designated as hedging instruments | | | | $ | (1,994) | | $ | 439 | | $ | (1,555) | | $ | (3,813) | | $ | 881 | | $ | (2,932) |
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| Derivative Swaps [Member] | Cash Flow Hedging [Member] | Interest Expense [Member] |
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| Derivative [Line Items] |
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| Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location |
| | | | | | | | | | | | | | | | | | | | Income Statement Classification | | Interest
expense on
borrowings(1) | | Cost of
swaps (2) | | Total | Interest expense for the three months ended May 31, 2021 | | $ | 656 | | $ | 907 | | $ | 1,563 | Interest expense for the three months ended May 31, 2020 | | $ | 1,067 | | $ | 620 | | $ | 1,687 | Interest expense for the nine months ended May 31, 2021 | | $ | 2,015 | | $ | 2,785 | | $ | 4,800 | Interest expense for the nine months ended May 31, 2020 | | $ | 3,287 | | $ | 1,477 | | $ | 4,764 |
(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.
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| Forward Foreign Exchange Contracts [Member] |
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| Derivative [Line Items] |
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| Schedule of Open Non-Deliverable Forward Foreign Exchange Contracts |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | Subsidiary | | Dates
entered into | | Financial
Derivative
(Counterparty) | | Derivative
Financial
Instrument | | Notional
Amount
(in thousands) | | Settlement
Date | | Effective Period
of Forward | Colombia | | 28-Apr-21 | | Scotiabank Colpatria, S.A. | | Forward foreign
exchange contracts (USD) | | $ | 5,000 | | 28-Dec-21 | | April 28, 2021 - December 28, 2021 | Colombia | | 28-May-21 | | Scotiabank Colpatria, S.A. | | Forward foreign
exchange contracts (USD) | | | 2,000 | | 29-Dec-21 | | May 28, 2021 - December 29, 2021 |
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| Not Designated as Hedging Instrument [Member] | Other Instruments [Member] |
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| Derivative [Line Items] |
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| Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location |
| | | | | | | | | | | | | | | | Three Months Ended | | | Nine Months Ended | | | | May 31, | | May 31, | | | May 31, | | May 31, | Income Statement Classification | | | 2021 | | 2020 | | | 2021 | | 2020 | Other expense, net | | $ | — | | $ | — | | $ | — | | $ | (912) |
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