STOCKHOLDERS EQUITY

9 Months Ended

May 31, 2014

Stockholders' Equity Note [Abstract]

STOCKHOLDERS EQUITY

STOCKHOLDERS’ EQUITY

Dividends

The following table summarizes the dividends declared and paid during fiscal year 2014 and 2013.

First Payment

Second Payment

Declared

Amount

Record Date

Date Paid

Date Payable

Amount

Record Date

Date Paid

Date Payable

Amount

1/23/14

$

0.70

2/14/14

2/28/14

N/A

$

0.35

8/15/14

N/A

8/29/14

$

0.35

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. 

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 May 31,
	2014									2013
	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)	$	3,929		$	—		$	3,929		$	(2,073	)	$	—		$	(2,073	)
Defined benefit pension plans:
Net gain (loss) arising during period	6			(1		)	5			1			(3		)	(2		)
Total defined pension plans	6			(1		)	5			1			(3		)	(2		)
Unrealized gains (losses) on change in fair value of interest rate swaps(2)	(1,857		)	514			(1,343		)	2,558			(335		)	2,223
Other comprehensive income (loss)	$	2,078		$	513		$	2,591		$	486		$	(338	)	$	148

	Nine Months Ended May 31,
	2014									2013
	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)	$	(8,443	)	$	—		$	(8,443	)	$	(5,083	)	$	—		$	(5,083	)
Defined benefit pension plans:
Net gain (loss) arising during period	18			(2		)	16			2			(1		)	1
Total defined pension plans	18			(2		)	16			2			(1		)	1
Unrealized gains (losses) on change in fair value of interest rate swaps(2)	(489		)	68			(421		)	1,974			(366		)	1,608
Other comprehensive income (loss)	$	(8,914	)	$	66		$	(8,848	)	$	(3,107	)	$	(367	)	$	(3,474	)

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

⁽²⁾ See Note 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):

	Nine Months Ended May 31, 2014
	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	(8,443		)	—			—			(8,443		)
Amounts reclassified from accumulated other comprehensive income	—			16			(421		)	(405		)
Net current-period other comprehensive income	(8,443		)	16			(421		)	(8,848		)
Ending balance, May 31, 2014	$	(50,764	)	$	(136	)	$	577		$	(50,323	)

	Nine Months Ended May 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	(5,083		)	—			—			(5,083		)
Amounts reclassified from accumulated other comprehensive income	—			1			1,608			1,609
Net current-period other comprehensive income	(5,083		)	1			1,608			(3,474		)
Ending balance, May 31, 2013	$	(37,045	)	$	(73	)	$	462		$	(36,656	)

	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			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 amounts reclassified out of each component of accumulated other comprehensive loss (in thousands):

	Nine Months Ended								Twelve Months Ended
	May 31, 2014				May 31, 2013				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)	18			(1)	2			(1)	(365		)	(1)
Total before tax	18				2				(105		)
Tax (expense) benefit	(2		)	Statement of Income- Provision for income taxes	(1		)	Statement of Income- Provision for income taxes	27			Statement of Income- Provision for income taxes
Net of tax	$	16		(1)	$	1		(1)	$	(78	)	(1)
Unrealized gains/(losses) on change in fair value of interest rate swaps
Cross currency interest rate cash flow hedges	$	(776	)	Balance sheet- other non-current assets	$	987		Balance sheet- other non-current assets	$	1,505		Balance sheet-other non-current assets
Cross currency interest rate cash flow hedges	378			Prepaid expenses and current assets	—			Prepaid expenses and current assets	—			Prepaid expenses and current assets
Interest rate cash flow hedges	(15		)	Balance sheet- other long-term liabilities	163			Balance sheet- other long-term liabilities	203			Balance sheet-other long-term liabilities
Cross currency interest rate cash flow hedges	(76		)	Balance sheet- other long-term liabilities	824			Balance sheet- other long-term liabilities	983			Balance sheet-other long-term liabilities
Total before tax	(489		)		1,974				2,691
Tax expense	6			Balance sheet- Deferred tax assets	(41		)	Balance sheet- Deferred tax assets	(50		)	Balance sheet- Deferred tax assets
Tax expense	62			Balance sheet- Deferred tax liabilities	(325		)	Balance sheet- Deferred tax liabilities	(497		)	Balance sheet- Deferred tax liabilities
Net of tax	$	(421	)	Balance sheet- other long-term liabilities	$	1,608		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):

	May 31, 2014		August 31, 2013
Retained earnings not available for distribution	$	4,529	$	4,171