STOCKHOLDER'S EQUITY

3 Months Ended

Nov. 30, 2011

NOTE 5 - STOCKHOLDERS' EQUITY

Dividends

No dividends were declared by the Company's Board of Directors during the first three months of fiscal year 2012. The following table summarizes the dividends declared and paid during fiscal year 2011.

				First Payment				Second Payment
Declared		Amount		Record Date	Date Paid	Amount		Record Date	Date Paid		Amount
	1-19-11	$	0.60	2-15-11	2-28-11	$	0.30	8-15-11	8-31-11	$	0.30

The Company anticipates the ongoing payment of semi-annual dividends in subsequent periods, although the actual declaration of future dividends, the amount of such dividends, and the establishment of record and payment dates is subject to final determination by the Board of Directors at its discretion after its review of the Company's financial performance and anticipated capital requirements.

Comprehensive Income and Accumulated Other Comprehensive Loss

Translation adjustment losses from the Company's subsidiaries and investment in affiliates that use a functional currency other than the U.S. dollar, resulting from the translation of the assets and liabilities of these companies into U.S. dollars, were approximately $9.1 million and $198,000 for the first three months of fiscal years 2012 and 2011, respectively. The translation adjustment loss during the first three months of fiscal year 2012 was primarily due to $8.9 million related to the merger of wholly owned subsidiaries of the Company and a correction of translation errors affecting Property and equipment, net (see Note 1). In addition, losses for approximately $200,000 were recorded during the first 3 months of fiscal year 2012 and the effect that such weaker currencies have on the translation of financial statements. The $198,000 losses recorded for the first three months of fiscal year 2011 was mainly due to weaker foreign currencies.

The following table presents the components of accumulated other comprehensive loss reported on the Company's consolidated balance sheets:

	November, 30 2011			August 31, 2011
Accumulated Other Comprehensive Loss:
Change in fair value of interest rate and cross currency interest rate swaps, net of tax	$	(86	)	$	(748	)
Prior Service Cost Accrual (including amortization) on Defined Benefit Plan, net of tax		(264	)		(273	)
Foreign-currency translation adjustment		(30,999	)		(21,894	)
Balance at November 30 and August 31, 2011	$	(31,349	)	$	(22,915	)

Retained Earnings Not Available for Distribution

As of November 30 and August 31, 2011, retained earnings included retained earnings designated as legal reserves of various subsidiaries of approximately $4.5 million and $4.4 million, respectively, which cannot be distributed as dividends to PriceSmart, Inc. according to applicable statutory regulations.

- Definition

Disclosures related to accounts comprising shareholders' equity, including other comprehensive income. Includes: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables; effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References+ Details