DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

9 Months Ended

May 31, 2014

The following table summarizes agreements for which the Company has recorded cash flow hedge accounting transactions during the nine months ended May 31, 2014:

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

Panama

22-May-14

Bank of Nova Scotia ("Scotiabank")

Interest rate swap

19,800,000

Bank of Nova Scotia

Variable rate 30-day Libor plus 3.5%

4.98

4th day of each month beginning on June 4, 2014.

May 5, 2014 - April 4, 2019

Panama

22-May-14

Bank of Nova Scotia ("Scotiabank")

Interest rate swap

3,970,000

Bank of Nova Scotia

Variable rate 30-day Libor plus 3.5%

4.98

4th day of each month beginning on June 4, 2014

May 5, 2014 - April 4, 2019

Colombia

11-Dec-12

Bank of Nova Scotia ("Scotiabank")

Cross currency interest rate swap

8,000,000

Bank of Nova Scotia

Variable rate 3-month Libor plus 0.7%

4.79

March, June, September and December, beginning on March 5, 2013

December 5, 2012 - December 5, 2014

Colombia

21-Feb-12

Bank of Nova Scotia ("Scotiabank")

Cross currency interest rate swap

8,000,000

Bank of Nova Scotia

Variable rate 3-month Libor plus 0.6%

6.02

February, May, August and November beginning on May 22, 2012

February 21, 2012 - February 21, 2017

Colombia

17-Nov-11

Bank of Nova Scotia ("Scotiabank")

Cross currency interest rate swap

8,000,000

Citibank, N.A.

Variable rate 6-month Eurodollar Libor plus 2.4%

5.85

May 3, 2012 and semi-annually thereafter

November 3, 2011 - November 3, 2013

Colombia

21-Oct-11

Bank of Nova Scotia ("Scotiabank")

Cross currency interest rate swap

2,000,000

Bank of Nova Scotia

Variable rate 3-month Libor plus 0.7%

5.30

January, April, July and October, beginning on October 29, 2011

July 29, 2011 - April 1, 2016

Colombia

21-Oct-11

Bank of Nova Scotia ("Scotiabank")

Cross currency interest rate swap

6,000,000

Bank of Nova Scotia

Variable rate 3-month Libor plus 0.7%

5.45

March, June, September and December, beginning on December 29, 2011

September 29, 2011 - April 1, 2016

Colombia

5-May-11

Bank of Nova Scotia ("Scotiabank")

Cross currency interest rate swap

8,000,000

Bank of Nova Scotia

Variable rate 3-month Libor plus 0.7%

6.09

January, April, July and October, beginning on July 5, 2011

April 1, 2011 - April 1, 2016

Trinidad

20-Nov-08

Royal Bank of Trinidad & Tobago

Interest rate swaps

8,900,000

Royal Bank of Trinidad & Tobago

Variable rate 1-year Libor plus 2.75%

7.05

Annually on August 26

September 25, 2008 - September 26, 2013

Interest Rate Swap

Derivative [Line Items]

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)	May 31, 2014		August 31, 2013
RBTT	$	—	$	4,500
Scotiabank	55,770		40,000
Total	$	55,770	$	44,500

Derivative Swaps [Member]

Derivative [Line Items]

Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location

For the three and nine-month period ended May 31, 2014 and 2013, 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 three months ended May 31, 2014	$	137	$	405	$	542
Interest expense for the three months ended May 31, 2013	$	182	$	482	$	664
Interest expense for the nine months ended May 31, 2014	$	377	$	1,169	$	1,546
Interest expense for the nine months ended May 31, 2013	$	559	$	1,341	$	1,900

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table summarizes the fair value of interest rate swap and cross-currency interest rate swap derivative instruments that qualify for derivative hedge accounting (in thousands, except footnote data):



	May 31, 2014				August 31, 2013
Derivatives designated as cash flow hedging instruments	Balance Sheet Account	Fair Value			Balance Sheet Account	Fair Value
Cross currency interest rate swaps⁽¹⁾⁽²⁾	Prepaid expenses and current assets	$	378		Prepaid expenses and current assets	$	—
Cross currency interest rate swaps⁽¹⁾⁽²⁾	Other non-current assets	729			Other non-current assets	1,505
Interest rate swaps⁽³⁾	Other long-term liabilities	(28		)	Other long-term liabilities	(14		)
Cross currency interest rate swaps⁽¹⁾⁽²⁾	Other long-term liabilities	(76		)	Other long-term liabilities	—
Net fair value of derivatives designated as hedging instruments - assets (liability)⁽⁴⁾		$	1,003			$	1,491


⁽¹⁾	The effective portion of the cross-currency interest rate swaps was recorded to Accumulated other comprehensive (income)/loss for $(596,000) and $(1.0) million net of tax as of May 31, 2014 and August 31, 2013, respectively.


⁽²⁾	The Company has recorded a deferred tax liability amount with an offset to other comprehensive income - tax of $(435,000) and $(497,000) as of May 31, 2014 and August 31, 2013, respectively, related to asset positions of cross-currency interest rate swaps.


⁽³⁾	The effective portion of the interest rate swaps was recorded to Accumulated other comprehensive loss for $19,000 and $10,000 net of tax as of May 31, 2014 and August 31, 2013, respectively. The Company has recorded a deferred tax asset amount with an offset to other comprehensive income - tax of $9,000 and $4,000 as of May 31, 2014 and August 31, 2013, respectively.


⁽⁴⁾	Derivatives listed on the above table were designated as cash flow hedging instruments.

Foreign Exchange Contract

Derivative [Line Items]

Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location

For the three and nine-month periods ended May 31, 2014 and 2013, the Company included in its consolidated statements of income the forward derivative gain or (loss) on the non-deliverable forward foreign-exchange contracts as follows (in thousands):



	Three Months Ended						Nine Months Ended
Income Statement Classification	May 31, 2014			May 31, 2013			May 31, 2014			May 31, 2013
Other income (expense), net	$	(632	)	$	(168	)	$	(447	)	$	(300	)

Schedule of Notional Amounts of Outstanding Derivative Positions

The Company entered into non-deliverable forward foreign exchange contracts during the three and nine months ended May 31, 2014; however, there are no open contracts as of May 31, 2014 and as of August 31, 2013.