DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

3 Months Ended

Nov. 30, 2014

Derivative [Line Items]

Schedule of Interest Rate Derivatives

The following table summarizes agreements for which the Company has recorded cash flow hedge accounting transactions during the three months ended November 30, 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
Honduras	23-Oct-14	Citibank, N.A. ("Citi")	Cross currency interest rate swap	$	5,000,000	Citibank, N.A.	Variable rate 3-month Libor plus 3.5%	11.6	%	22nd day of January, April, July, and October beginning on January 22, 2015	October 22, 2014 - October 22, 2017
Panama	1-Aug-14	Bank of Nova Scotia ("Scotiabank")	Interest rate swap	$	5,000,000	Bank of Nova Scotia	Variable rate 30-day Libor plus 3.5%	4.89	%	21st day of each month beginning on September 22, 2014	August 21, 2014 - August 21, 2019
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	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

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)	November 30, 2014		August 31, 2014
Scotiabank	$	59,350	$	60,200
Citibank N.A.	5,000		—
Total	$	64,350	$	60,200

Derivative Swaps [Member]

Derivative [Line Items]

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

For the three-month period ended November 30, 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 November 30, 2014	$	349	$	512	$	861
Interest expense for the three months ended November 30, 2013	$	126	$	431	$	557

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):

	November 30, 2014				August 31, 2014
Derivatives designated as cash flow hedging instruments	Balance Sheet Account	Fair Value			Balance Sheet Account	Fair Value
Cross-currency interest rate swaps(1)	Prepaid expenses and current assets	$	1,493		Prepaid expenses and current assets	$	495
Cross-currency interest rate swaps(1)	Other non-current assets	3,926			Other non-current assets	970
Interest rate swaps(2)	Other non-current assets	—			Other non-current assets	125
Interest rate swaps(2)	Other long-term liabilities	(246		)	Other long-term  liabilities	—
Cross-currency interest rate swaps(3)	Other long-term liabilities	(289		)	Other long-term liabilities	—
Net fair value of derivatives designated as hedging instruments - assets (liability)(4)		$	4,884			$	1,590

⁽¹⁾  The effective portion of the cross-currency interest rate swaps for this subsidiary was recorded to Accumulated other comprehensive (income)/loss for $(3.6) million and $(917,000) net of tax as of November 30, 2014 and August 31, 2014, respectively. The Company has recorded a deferred tax liability amount with an offset to other comprehensive income - tax of $(1.8) million and $(548,000) as of November 30, 2014 and August 31, 2014, respectively, related to asset positions of cross-currency interest rate swaps. However, the equity effect of this deferred tax liability is offset by the full valuation allowance provided for the net deferred tax asset recorded for this subsidiary.

⁽²⁾  The effective portion of the interest rate swaps was recorded to Accumulated other comprehensive loss / (income) for $185,000 and $(94,000) net of tax as of November 30, 2014 and August 31, 2014, respectively.  The Company has recorded a deferred tax asset / (liability) amount with an offset to other comprehensive income - tax of $61,000 and $(31,000) as of November 30, 2014 and August 31, 2014, respectively.

⁽³⁾  The effective portion of the cross-currency interest rate swaps for this subsidiary was recorded to Accumulated other comprehensive (income)/loss for $194,000 and $0 net of tax as of November 30, 2014 and August 31, 2014, respectively. The Company has recorded a deferred tax asset amount with an offset to other comprehensive income - tax of $95,000 and $0 as of November 30, 2014 and August 31, 2014, 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-month periods ended November 30, 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
Income Statement Classification	November 30, 2014		November 30, 2013
Other income (expense), net	$	2,613	$	123

Schedule of Notional Amounts of Outstanding Derivative Positions

The Company entered into non-deliverable forward foreign exchange contracts during the three months ended November 30, 2014. The open contracts as of November 30, 2014 are summarized below:

Subsidiary	Dates entered into	Derivative Financial Counter-party	Derivative Financial Instrument	Notional Amount (in thousands)		Settlement Date	Effective Period of Forward
Colombia	October - November 2014	Bank of Nova Scotia	Forward foreign exchange contracts	$	33,000	December - January 2015	October - January 2015
Colombia	October - November 2014	Citibank, N.A.	Forward foreign exchange contracts	$	5,000	December 2014	October - December 2014