XML 16 R5.htm IDEA: XBRL DOCUMENT v3.19.2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
May 31, 2019
May 31, 2018
May 31, 2019
May 31, 2018
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]        
Net income $ 14,069 $ 18,716 $ 52,577 $ 55,354
Less: net (income) loss attributable to noncontrolling interest 27 (22) (59) (22)
Net income attributable to PriceSmart, Inc. 14,096 [1] 18,694 52,518 [1] 55,332
Other Comprehensive Income, net of tax:        
Foreign currency translation adjustments [2] (9,697) (2,461) (17,972) (126)
Defined benefit pension plan:        
Net gain (loss) arising during period 42   129  
Amortization of prior service cost and actuarial gains included in net periodic pensions cost (19) 42 (56) 101
Total defined benefit pension plan 23 42 73 101
Derivative instruments:        
Unrealized gains/(losses) on change in fair value of interest rate swaps [3] (1,385) 79 (2,053) 1,516
Total derivative instruments [3] (1,385) 79 (2,053) 1,516
Other comprehensive income (loss) (11,059) (2,340) (19,952) 1,491
Comprehensive income 3,037 16,354 32,566 56,823
Less: comprehensive income/(loss) attributable to noncontrolling interest 59 8 80 8
Comprehensive income attributable to PriceSmart Inc. to stockholders $ 2,978 $ 16,346 $ 32,486 $ 56,815
[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 $2.9 million for the quarter and $11.0 million for the nine months ended May 31, 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.