STOCKHOLDERS EQUITY

3 Months Ended

Nov. 30, 2013

Stockholders' Equity Note [Abstract]

STOCKHOLDERS EQUITY

STOCKHOLDERS’ EQUITY

Dividends

Dividends

No dividends were declared by the Company's Board of Directors during the first three months of fiscal year 2014. The following table summarizes the dividends declared and paid during fiscal year 2013.

First Payment

Second Payment

Declared

Amount

Record Date

Date Paid

Date Payable

Amount

Record Date

Date Paid

Date Payable

Amount

11/27/12

$

0.60

12/10/12

12/21/12

N/A

$

0.30

8/15/13

8/30/13

N/A

$

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. 

Preferred Stock Authorized Shares

As of November 30, 2013, 2,000,000 shares of preferred stock with a par value of $.0001, were authorized, but no shares were outstanding.  Upon issuance, our Board of Directors has the ability to define the terms of the preferred shares, including voting rights, liquidation preferences, conversion and redemption provisions and dividend rates.

Comprehensive Income and Accumulated Other Comprehensive Loss

The following tables disclose the tax effects allocated to each component of other comprehensive income (loss) (in thousands):

	Three Months Ended
	November 30, 2013									November 30, 2012
	Before-Tax Amount			Tax (expense) or benefit			Net-of-Tax Amount			Before-Tax Amount			Tax (expense) or benefit			Net-of-Tax Amount
Foreign currency translation adjustments (1)	$	1,289		$	—		$	1,289		$	(1,396	)	$	—		$	(1,396	)
Defined benefit pension plans:
Net gain (loss) arising during period	5			(2		)	3			(1		)	2			1
Total defined pension plans	5			(2		)	3			(1		)	2			1
Unrealized gains (losses) on change in fair value of interest rate swaps(2)	(176		)	33			(143		)	(185		)	(20		)	(205		)
Other comprehensive income (loss)	$	1,118		$	31		$	1,149		$	(1,582	)	$	(18	)	$	(1,600	)

⁽¹⁾ Translation adjustments arising in translating the financial statements of a foreign entity have no effect on the income taxes of that foreign entity. They may, however, affect: (a) the amount, measured in the parent entity's reporting currency, of withholding taxes assessed on dividends paid to the parent entity and (b) the amount of taxes assessed on the parent entity by the government of its country. The Company has determined that the reinvestment of earnings of its foreign subsidiaries are indefinite because of the long-term nature of the Company's foreign investment plans. Therefore, deferred taxes are not provided for on translation adjustments related to unremitted earnings of the Company's foreign subsidiaries.

⁽²⁾ See Note 9 - Derivative Instruments and Hedging Activities.

The following tables disclose the changes in the balances of each component of other comprehensive loss included as a separate component of equity within the balance sheet and for each component of other comprehensive income, the current period reclassifications out of accumulated other comprehensive income (in thousands):

	Three Months Ended November 30, 2013
	Foreign currency translation adjustments			Defined benefit pension plans			Unrealized gains/(losses) on change in fair value of interest rate swaps (1)				Accumulated other comprehensive loss
Beginning balance, September 1, 2013	$	(42,321	)	$	(152	)	$	998			$	(41,475	)
Other comprehensive income before reclassifications	1,289			—			—				1,289
Amounts reclassified from accumulated other comprehensive income	—			3			(143		)	(1)	(140		)
Net current-period other comprehensive income	1,289			3			(143		)		1,149
Ending Balance November 30, 2013	$	(41,032	)	$	(149	)	$	855			$	(40,326	)

	Three Months Ended November 30, 2012
	Foreign currency translation adjustments			Defined benefit pension plans			Unrealized gains/(losses) on change in fair value of interest rate swaps (1)				Accumulated other comprehensive loss
Beginning balance, September 1, 2012	$	(31,962	)	$	(74	)	$	(1,146	)		$	(33,182	)
Other comprehensive income before reclassifications	(1,396		)	—			—				(1,396		)
Amounts reclassified from accumulated other comprehensive income	—			1			(205		)	(1)	(204		)
Net current-period other comprehensive income	(1,396		)	1			(205		)		(1,600		)
Ending Balance November 30, 2012	$	(33,358	)	$	(73	)	$	(1,351	)		$	(34,782	)

	Twelve Months Ended August 31, 2013
	Foreign currency translation adjustments			Defined benefit pension plans			Unrealized gains/(losses) on change in fair value of interest rate swaps (1)				Accumulated other comprehensive loss
Beginning balance, September 1, 2012	$	(31,962	)	$	(74	)	$	(1,146	)		$	(33,182	)
Other comprehensive income before reclassifications	(10,359		)	—			—				(10,359		)
Amounts reclassified from accumulated other comprehensive income	—			(78		)	2,144			(1)	2,066
Net current-period other comprehensive income	(10,359		)	(78		)	2,144				(8,293		)
Ending balance, August 31, 2013	$	(42,321	)	$	(152	)	$	998			$	(41,475	)

⁽¹⁾ See Note 9 - Derivative Instruments and Hedging Activities.

The following tables disclose the effects on net income of significant amounts reclassified out of each component of accumulated other comprehensive loss (in thousands):

	Three Months Ended								Twelve Months Ended
	November 30, 2013				November 30, 2012				August 31, 2013
	Amount reclassified from accumulated other comprehensive (loss) income			Financial statement line item where effect is presented	Amount reclassified from accumulated other comprehensive (loss) income			Financial statement line item where effect is presented	Amount reclassified from accumulated other comprehensive (loss) income			Financial statement line item where effect is presented
Amortization of Defined benefit pension plan
Prior service costs	$	—		(1)	$	—		(1)	$	260		(1)
Actuarial gains (losses)	5			(1)	(1		)	(1)	(365		)	(1)
Total before tax	5				(1		)		(105		)
Tax benefit	(2		)	Statement of Income- Provision for income taxes	2			Statement of Income- Provision for income taxes	27			Statement of Income- Provision for income taxes
Net of tax	$	3		(1)	$	1		(1)	$	(78	)	(1)
Unrealized gains/(losses) on change in fair value of interest rate swaps
Cross currency interest rate cash flow hedges	$	(181	)	Balance sheet- other non-current assets	$	—		Balance sheet- other non-current assets	$	1,505		Balance sheet-other non-current assets
Interest rate cash flow hedges	14			Balance sheet- other long-term liabilities	81			Balance sheet- other long-term liabilities	203			Balance sheet-other long-term liabilities
Cross currency interest rate cash flow hedges	(9		)	Balance sheet- other long-term liabilities	(266		)	Balance sheet- other long-term liabilities	983			Balance sheet-other long-term liabilities
Total before tax	(176		)		(185		)		2,691
Tax expense	(4		)	Balance sheet- Deferred tax assets	(20		)	Balance sheet- Deferred tax assets	(50		)	Balance sheet- Deferred tax assets
Tax expense	37			Balance sheet- Deferred tax liabilities	—			Balance sheet- Deferred tax liabilities	(497		)	Balance sheet- Deferred tax liabilities
Net of tax	$	(143	)	Balance sheet- other long-term liabilities	$	(205	)	Balance sheet- other long-term liabilities	$	2,144		Balance sheet-other long-term liabilities

⁽¹⁾ These amounts are included as part of salaries reported within the statement of income; warehouse club operations.

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):

	November 30, 2013		August 31, 2013
Retained earnings not available for distribution	$	7,200	$	6,872