RETIREMENT PLANS

Defined Contribution Plans

PriceSmart offers a defined contribution 401(k) retirement plan to its U.S. employees, which allows employees to enroll in the plan after 90 days of employment. Enrollment in these plans begins on the first of the month following the employee's eligibility. The Company makes nondiscretionary contributions to the 401(k) plan with a 4% “Company Contribution” based on the employee’s salary regardless of the employee’s own contributions to the plan up to the IRS maximum allowed. Employer contributions to the 401(k) plan for the Company's U.S. employees were $1.2 million, $1.1 million and $1.0 million during fiscal years 2014, 2013 and 2012, respectively. The Company has defined contribution plans for its employees in several countries and contributes a percentage of the respective employees' salary. Amounts contributed under these plans were $1.5 million, $969,000 and $843,000 during fiscal years 2014, 2013 and 2012, respectively.

Defined Benefit Plan

On January 21, 2011, PS Operations Ltd., a subsidiary of the Company in Trinidad, signed a collective labor agreement with the Oil Workers Trade Union on behalf of the hourly rated weekly paid and hourly rated bi-monthly paid employees who are members of the Union. This agreement was renewed on July 15, 2014; however, no changes were made to the retirement benefit plan obligation as originally established in 2011. The agreement contains a Defined Benefit Plan within the contract for retirement pay. The Company currently does not intend to fund this obligation. As a result, the entire amount of the benefit obligation is presented as a long-term liability on the consolidated balance sheets. The Company will make payments on any obligation that becomes due from available cash. The following table summarizes the amount of the funding obligation and the line items in which it is recorded on the consolidated balance sheets and consolidated statements of income as of and for the fiscal years ended August 31, 2014 and 2013 (in thousands):



	Other Long-Term Liability						Accumulated Other Comprehensive Loss							Operating Expenses
	Year Ended August 31,
	2014			2013			2014			2013				2014			2013			2012
Start of Period	$	(589	)	$	(396	)	$	204		$	99			$	—		$	—		$	—
Service cost	(114		)	(83		)	—			—				114			91			140
Interest cost	(14		)	(17		)	—			—				14			17			31
Prior service cost (including amortization)	—			—			(15		)	(15		)		15			15			14
Actuarial gains/(losses)	345			(93		)	(337		)	120				(8		)	(27		)	—
Totals	$	(372	)	$	(589	)	$	(148	)	$	204		⁽¹⁾	$	135		$	96		$	185


⁽¹⁾	The Company has recorded a deferred tax (liability)/asset of $(35,000) and $52,000 as of August 31, 2014 and 2013, respectively, relating to the unrealized expense on deferred benefit plan. The Company also recorded accumulated other comprehensive income (loss), net of tax, for $113,000 and $(152,000) as of August 31, 2014 and 2013, respectively.



	Year Ended August 31,
Valuation Assumptions Used in the Accounting of the Defined Benefit Plan:	2014		2013
Discount rate	1.5	%	2.0	%
Future salary escalation	5.0	%	5.0	%
Percentage of employees assumed to withdraw from Company without a benefit (“turnover”)	17.0	%	11.0	%
Percentage of employees assumed to withdraw from Company with a benefit (“disability”)	0.5	%	0.5	%