XML 85 R5.htm IDEA: XBRL DOCUMENT v3.19.3
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
12 Months Ended
Aug. 31, 2019
Aug. 31, 2018
Aug. 31, 2017
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]      
Net income $ 73,489 $ 74,403 $ 90,724
Less: net (income) loss attributable to noncontrolling interest (298) (75)  
Net income attributable to PriceSmart, Inc. 73,191 [1] 74,328 [1] 90,724
Other Comprehensive Income, net of tax:      
Foreign currency translation adjustments [2] (19,717) (12,890) (6,297)
Defined benefit pension plan:      
Net gain (loss) arising during period (112) (87) (166)
Amortization of prior service cost and actuarial gains included in net periodic pensions cost 74 41 39
Total defined benefit pension plan (38) (46) (127)
Derivative instruments:      
Unrealized gains/(losses) on change in derivative obligations [3] (267) (97) 81
Unrealized gains/(losses) on change in fair value of interest rate swaps [3] (3,102) 1,882 254
Amounts reclassified from accumulated other comprehensive income (loss) to other income (expense), for settlement of derivatives [3] 1 (6) (19)
Total derivative instruments (3,368) 1,779 316
Other comprehensive income (loss) (23,123) (11,157) (6,108)
Comprehensive income 50,068 63,171 84,616
Less: comprehensive income/(loss) attributable to noncontrolling interest 21 (1)  
Comprehensive income attributable to PriceSmart Inc. stockholders $ 50,047 $ 63,172 $ 84,616
[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. $14.5 million for the twelve months ended August 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 13 - Derivative Instruments and Hedging Activities.