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POST EMPLOYMENT PLANS | 12 Months Ended
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Aug. 31, 2018
POST EMPLOYMENT PLANS [Abstract] |
POST EMPLOYMENT PLANS | NOTE 6 – POST EMPLOYMENT PLANS Defined Contribution Plans ﻿ PriceSmart offers a defined contribution 401(k) retirement plan to its U.S. employees, including warehouse club employees in the U.S. Virgin Islands, which auto-enrolls employees in the plan immediately on the first day of employment. The Company makes nondiscretionary contributions to the 401(k) plan with a 4% “Company Contribution” based on the employee’s salary regardless of the employee’s own contributions to the plan up to the IRS maximum allowed. Effective January 1, 2016, the Company also makes nondiscretionary contributions to the 401(k) plan to the non-officer employees that defer up to 2% of their salary. Employer contributions to the 401(k) plan for the Company's U.S. employees were $2.0 million, $1.8 million and $1.7 million during fiscal years 2018, 2017 and 2016, respectively. ﻿ PriceSmart also offers and/or is implementing defined contribution retirement plans in most of its subsidiaries. The Company makes nondiscretionary contributions to these plans based on the employee’s salary, regardless of the employee’s own contributions to the plan, up to the maximum allowed. The expenses associated with the plans for the Company’s non-U.S. employees were $2.9 million, $3.1 million and $3.1 million during fiscal years 2018, 2017, and 2016, respectively. ﻿ Defined Benefit Plans ﻿ The Company's subsidiaries located in three countries are parties to unfunded post-employment benefit plans (defined benefit plans) in which the subsidiary is required to pay a specified benefit upon retirement, voluntary departure or death of the employee. The amount of the benefit is predetermined by a formula based on the employee's earnings history, tenure of service and age. Because the obligation to provide benefits arises as employees render the services necessary to earn the benefits pursuant to the terms of the plan, the Company recognizes the cost of providing the benefits over the projected employee service periods. These payments are only due if an employee reaches certain thresholds, such as tenure and/or age. Therefore, these plans are treated as defined benefit plans. For these defined benefit plans, the Company has engaged actuaries to assist with estimating the current costs associated with these future benefits. The liabilities for these unfunded plans are recorded as non-current liabilities. ﻿ The following table summarizes the amount of the funding obligation and the line items in which it is recorded on the consolidated balance sheets as of August 31, 2018 and 2017 and consolidated statements of income for the fiscal years ended August 31, 2018, 2017 and 2016 (in thousands): ﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  | Other Long-Term Liability |  | Accumulated Other Comprehensive Loss |  |  | Operating Expenses
﻿ |  | August 31, |  |  | Year Ended August 31,
﻿ |  | 2018 |  | 2017 |  | 2018 |  | 2017 |  |  | 2018 |  | 2017 |  | 2016
﻿Start of period |  | $ | (1,070) |  | $ | (882) |  | $ | 650 |  | $ | 465 |  |  | $ | — |  | $ | — |  | $ | —
﻿Service cost |  |  | (17) |  |  | 88 |  |  | — |  |  | — |  |  |  | 117 |  |  | 119 |  |  | 35
﻿Interest cost |  |  | (64) |  |  | (80) |  |  | — |  |  | — |  |  |  | 64 |  |  | 80 |  |  | 52
﻿Prior service cost (amortization) |  |  | — |  |  | — |  |  | (52) |  |  | (55) |  |  |  | 52 |  |  | 55 |  |  | 56
﻿Actuarial gains/(losses) |  |  | (139) |  |  | (196) |  |  | 121 |  |  | 240 |  |  |  | 13 |  |  | (45) |  |  | (87)
﻿Totals |  | $ | (1,290) |  | $ | (1,070) |  | $ | 719 |  | $ | 650 | (1) |  | $ | 246 |  | $ | 209 |  | $ | 56
﻿
| (1) |  | The Company has recorded a deferred tax (liability)/asset of $231,000 and $208,000 as of August 31, 2018 and 2017, respectively, relating to the unrealized expense on defined benefit plans. The Company also recorded accumulated other comprehensive income (loss), net of tax, for $(488,000) and $(442,000) as of August 31, 2018 and 2017, respectively.
﻿ The valuation assumptions used to calculate the liability for the defined benefit plans differ based on the country where the plan applies. These assumptions are summarized as follows: ﻿ ﻿
﻿ |  |  |  |
﻿ |  |  |  |
﻿ |  | Year Ended August 31,
﻿Valuation Assumptions: |  | 2018 |  | 2017
﻿Discount rate |  | 3.5% to 10.8% |  | 3.5% to 10.5%
﻿Future salary escalation |  | 3.0% to 5.0% |  | 3.0% to 5.0%
﻿Percentage of employees assumed to withdraw from Company without a benefit (“turnover”) |  | 9.6% to 19.5% |  | 3.9% to 19.5%
﻿Percentage of employees assumed to withdraw from Company with a benefit (“disability”) |  | 0.5% to 4.5% |  | 0.5% to 6.0%
﻿ For the fiscal year ending August 31, 2018, the Company expects to recognize, as components of net periodic benefit cost, the following amounts currently recorded in accumulated other comprehensive income (in thousands): ﻿ ﻿
﻿ |  |  |
﻿ |  | Expected Recognition
﻿ |  | Year Ended August 31,
﻿ |  | 2019
﻿Prior service cost |  | $ | 55
﻿Actuarial gain/loss |  |  | 64
﻿ |  | $ | 119
﻿ Other Post-Employment Benefit Plans Some of the Company’s subsidiaries are parties to funded and unfunded post-employment benefit plans based on services that the employees have rendered. These plans require the Company to pay a specified benefit on retirement, voluntary departure or death of the employee, or monthly payments to an external fund manager. The amount of these payments is predetermined by a formula based on the employee's earnings history and tenure of service. Because the obligation to provide benefits arises as employees render the services necessary to earn the benefits pursuant to the terms of the plan, the cost associated with providing the benefits is recognized as the employee provides those services. The employees' rights to receive payment on these plans are not dependent on their reaching certain thresholds like age or tenure. Therefore, these plans are not treated as defined benefit plans. For these post-employment benefit plans, the Company has accrued liabilities that are recorded as accrued salaries and benefits and other long-term liabilities. The following table summarizes the amounts recorded on the balance sheet and amounts expensed on the consolidated statements of income (in thousands): ﻿ ﻿
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﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿ |  | Accrued Salaries and Benefits |  | Other Long-Term Liability |  | Restricted Cash Held (1) |  | Operating Expenses
﻿ |  | Years Ended August 31,
﻿ |  | 2018 |  | 2017 |  | 2018 |  | 2017 |  | 2018 |  | 2017 |  | 2018 |  | 2017 |  | 2016
﻿Other Post- Employment Plans |  | $ | 443 |  | $ | 425 |  | $ | 3,077 |  | $ | 2,720 |  | $ | 2,772 |  | $ | 2,493 |  | $ | 1,187 |  | $ | 1,017 |  | $ | 1,026
﻿
| (1) |  | With some locations, local statutes require the applicable Company subsidiary to deposit cash in its own name with designated fund managers. The funds earn interest which the Company recognizes as interest income.

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- Definition The entire disclosure for an entity's employee compensation and benefit plans, including, but not limited to, postemployment and postretirement benefit plans, defined benefit pension plans, defined contribution plans, non-qualified and supplemental benefit plans, deferred compensation, share-based compensation, life insurance, severance, health care, unemployment and other benefit plans. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 712 -URI http://asc.fasb.org/topic&trid=2197446 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 710 -URI http://asc.fasb.org/topic&trid=2127225 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
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