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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Feb. 28, 2019
Feb. 28, 2018
Feb. 28, 2019
Feb. 28, 2018
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]        
Net income $ 23,863 $ 14,148 $ 38,508 $ 36,638
Less: net (income) loss attributable to noncontrolling interest (53)   (86)  
Net income attributable to PriceSmart, Inc. 23,810 [1] 14,148 38,422 [1] 36,638
Other Comprehensive Income, net of tax:        
Foreign currency translation adjustments [2] 5,121 4,339 (8,276) 2,313
Defined benefit pension plan:        
Net gain (loss) arising during period 4   13  
Amortization of prior service cost and actuarial gains included in net periodic pensions cost 18 29 37 59
Total defined benefit pension plan 22 29 50 59
Derivative instruments:        
Unrealized gains/(losses) on change in fair value of interest rate swaps [3] (791) 850 (668) 1,437
Total derivative instruments [3] (791) 850 (668) 1,437
Other comprehensive income (loss) 4,352 5,218 (8,894) 3,809
Comprehensive income 28,162 19,366 29,528 40,447
Less: comprehensive income/(loss) attributable to noncontrolling interest 22   21  
Comprehensive income attributable to PriceSmart Inc. to stockholders $ 28,140 $ 19,366 $ 29,507 $ 40,447
[1] In March 2018, the Company acquired technology, talent and cross-border logistics infrastructure that operated a marketplace and casillero business. Investments in the technology, talent and infrastructure to expand our omni-channel capabilities, together with the operating results from the marketplace and casillero business, negatively impacted Net income attributable to PriceSmart, Inc. by $4.2 million for the quarter and $8.1 million for the six months ended February 28, 2019. Management considers this business to be part of its United States operations.
[2] 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.
[3] See Note 8 - Derivative Instruments and Hedging Activities.