XML 95 R26.htm IDEA: XBRL DOCUMENT v3.20.1
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 6 Months Ended
Feb. 29, 2020
Cash Flow Hedging [Member]  
Derivative [Line Items]  
Schedule of Interest Rate Derivatives

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

Colombia

3-Dec-19

Citibank, N.A. ("Citi")

Cross currency interest rate swap

$

7,875,000

Citibank, N.A.

Variable rate 3-month Libor plus 2.45%

7.87

%

3rd day of each December, March, June, and September, beginning on March 3, 2020

December 3, 2019 -

December 3, 2024

Colombia

27-Nov-19

Citibank, N.A. ("Citi")

Cross currency interest rate swap

$

25,000,000

Citibank, N.A.

Variable rate 3-month Libor plus 2.45%

7.93

%

27th day of each November, February, May and August beginning February 27, 2020

November 27, 2019 -

November 27, 2024

Colombia

24-Sep-19

Citibank, N.A. ("Citi")

Cross currency interest rate swap

$

12,500,000

PriceSmart, Inc.

Variable rate 3-month Libor plus 2.50%

7.09

%

24th day of each December, March, June and September beginning December 24, 2019

September 24, 2019 -

September 26, 2022

Panama

25-Jun-18

Bank of Nova Scotia ("Scotiabank")

Interest rate swap

$

14,625,000

Bank of Nova Scotia

Variable rate 3-month Libor plus 3.0%

5.99

%

23rd day of each month beginning on July 23, 2018

June 25, 2018 -

March 23, 2023

Honduras

26-Feb-18

Citibank, N.A. ("Citi")

Cross currency interest rate swap

$

13,500,000

Citibank, N.A.

Variable rate 3-month Libor plus 3.00%

9.75

%

29th day of May, August, November and February beginning May 29, 2018

February 26, 2018 -

February 24, 2024

PriceSmart, Inc

7-Nov-16

MUFG Union Bank, N.A. ("Union Bank")

Interest rate swap

$

35,700,000

Union Bank

Variable rate 1-month Libor plus 1.7%

3.65

%

1st day of each month beginning on April 1, 2017

March 1, 2017 - March 1, 2027

Costa Rica

28-Aug-15

Citibank, N.A. ("Citi")

Cross currency interest rate swap

$

7,500,000

Citibank, N.A.

Variable rate 3-month Libor plus 2.50%

7.65

%

28th day of August, November, February, and May beginning on November 30, 2015

August 28, 2015 -

August 28, 2020
Interest Rate Swaps [Member] | Cash Flow Hedging [Member]  
Derivative [Line Items]  
Schedule of Notional Amounts of Outstanding Derivative Positions

Notional Amount as of

February 29,

August 31,

 Floating Rate Payer (Swap Counterparty)

2020

2019

Union Bank

$

34,531

$

35,169

Citibank N.A.

52,425

24,225

Scotiabank

17,125

18,375

Total

$

104,081

$

77,769
Derivative Swaps [Member] | Cash Flow Hedging [Member]  
Derivative [Line Items]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

February 29, 2020

August 31, 2019

Derivatives designated as cash flow hedging instruments

Balance Sheet

Classification

Fair
‎Value

Net Tax
‎Effect

Net
‎OCI

Fair
‎Value

Net Tax
‎Effect

Net
‎OCI

Cross-currency interest rate swaps

Other non-current assets

$

241

$

(75)

$

166

$

—

$

—

$

—

Cross-currency interest rate swaps

Other current assets

—

—

—

2,736

(903)

1,833

Interest rate swaps

Other long-term liabilities

(2,714)

638

(2,076)

(2,178)

517

(1,661)

Cross-currency interest rate swaps

Other long-term liabilities

(1,206)

367

(839)

(732)

220

(512)

Cross-currency interest rate swaps

Other current liabilities

(45)

14

(31)

—

—

—

Net fair value of derivatives designated as hedging instruments

$

(3,724)

$

944

$

(2,780)

$

(174)

$

(166)

$

(340)
Derivative Swaps [Member] | Cash Flow Hedging [Member] | Interest Expense [Member]  
Derivative [Line Items]  
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location

Income Statement Classification

Interest
‎expense on
‎borrowings(1)

Cost of
‎swaps (2)

Total

Interest expense for the three months ended February 29, 2020

$

1,206

$

596

$

1,802

Interest expense for the three months ended February 28, 2019

$

1,210

$

102

$

1,312

Interest expense for the six months ended February 29, 2020

$

2,219

$

857

$

3,076

Interest expense for the six months ended February 28, 2019

$

2,403

$

269

$

2,672

(1)This amount is representative of the interest expense recognized on the underlying hedged transactions.

(2)This amount is representative of the interest expense recognized on the cross-currency interest rate swaps designated as cash flow hedging instruments.
Not Designated as Hedging Instrument [Member] | Other Instruments [Member]  
Derivative [Line Items]  
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location

Three Months Ended

Six Months Ended

February 29,

February 28,

February 29,

February 28,

Income Statement Classification

2020

2019

2020

2019

Other income (expense), net

$

358 

$

—

$

(912)

$

—