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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 9 Months Ended
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May 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of Interest Rate Derivatives | The following table summarizes agreements for which the Company has recorded cash flow hedge accounting for the nine months ended May 31, 2024:
Entity |  | Date Entered into |  | Derivative Financial Counter- party |  | Derivative Financial Instruments |  | Initial US$ Notional Amount |  | US$ Loan Held With |  | Floating Leg (swap counter-party) |  | Fixed Rate for PSMT Subsidiary |  | Settlement Dates |  | Effective Period of swap
Colombia subsidiary |  | 30-Nov-23 |  | Citibank, N.A. ("Citi") |  | Cross currency interest rate swap |  | $ | 10,000,000 |  |  | PriceSmart, Inc. |  | 5.00% |  | 11.27 | % |  | 30th day of each November, May and August, and 28th day of each February (except in case of a leap year, 29th day of each February) beginning on February 29, 2024 |  | November 30, 2023 - November 30, 2026
Colombia subsidiary |  | 12-Apr-23 |  | Citibank, N.A. ("Citi") |  | Cross currency interest rate swap |  | $ | 10,000,000 |  |  | PriceSmart, Inc. |  | 4.00% |  | 11.40 | % |  | 11th day of each July, October, January and April, beginning on July 11, 2023 |  | April 12, 2023 - April 11, 2028
Colombia subsidiary |  | 26-Sep-22 |  | Citibank, N.A. ("Citi") |  | Cross currency interest rate swap |  | $ | 12,500,000 |  |  | PriceSmart, Inc. |  | 3.00% |  | 10.35 | % |  | 24th day of each December, March, June and September beginning December 26, 2022 |  | September 26, 2022 - September 24, 2024
Colombia subsidiary |  | 3-May-22 |  | Citibank, N.A. ("Citi") |  | Cross currency interest rate swap |  | $ | 10,000,000 |  |  | PriceSmart, Inc. |  | 3.00% |  | 9.04 | % |  | 3rd day of each May, August, November and February, beginning on August 3, 2022 |  | May 3, 2022 - May 3, 2027
Colombia subsidiary |  | 17-Nov-21 |  | Citibank, N.A. ("Citi") |  | Cross currency interest rate swap |  | $ | 10,000,000 |  |  | PriceSmart, Inc. |  | 3.00% |  | 8.40 | % |  | 17th day of each February, May, August, and November, beginning on February 17, 2022 |  | November 17, 2021 - November 18, 2024
Colombia subsidiary |  | 3-Dec-19 |  | Citibank, N.A. ("Citi") |  | Cross currency interest rate swap |  | $ | 7,875,000 |  |  | Citibank, N.A. |  | Variable rate 3-month SOFR plus 2.45% |  | 7.87 | % |  | 3rd day of each December, March, June and September beginning March 3, 2020 |  | December 3, 2019 - December 3, 2024
Colombia subsidiary |  | 27-Nov-19 |  | Citibank, N.A. ("Citi") |  | Cross currency interest rate swap |  | $ | 25,000,000 |  |  | Citibank, N.A. |  | Variable rate 3-month SOFR plus 2.45% |  | 7.93 | % |  | 27th day of each November, February, May and August beginning February 27, 2020 |  | November 27, 2019 - November 27, 2024
PriceSmart, Inc. |  | 7-Nov-16 |  | U.S. Bank, N.A. ("U.S. Bank") |  | Interest rate swap |  | $ | 35,700,000 |  |  | U.S. Bank |  | Variable rate 3-month SOFR plus 1.7% |  | 3.65 | % |  | 1st day of each month beginning on April 1, 2017 |  | March 1, 2017 - March 1, 2027
Schedule of Cash Flow Hedging Instruments | For the three and nine months ended May 31, 2024 and May 31, 2023, the Company included the gain or loss on the hedged items (that is, variable-rate borrowings) in the same line item—interest expense—as the offsetting gain or loss on the related interest rate swaps as follows (in thousands):
Income Statement Classification |  | Interest expense on borrowings (1) |  | Cost of swaps (2) |  | Total
Interest expense for the three months ended May 31, 2024 |  | $ | 1,333 |  |  | $ | 703 |  |  | $ | 2,036 |
Interest expense for the three months ended, May 31, 2023 |  | $ | 1,108 |  |  | $ | 210 |  |  | $ | 1,318 |
Interest expense for the nine months ended May 31, 2024 |  | $ | 3,449 |  |  | $ | 1,775 |  |  | $ | 5,224 |
Interest expense for the nine months ended May 31, 2023 |  | $ | 3,538 |  |  | $ | 747 |  |  | $ | 4,285 |
(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 interest rate swaps and cross-currency swaps designated as cash flow hedging instruments.
Schedule of Notional Amounts of Outstanding Derivative Positions | The total notional balance of the Company’s pay-fixed/receive-variable interest rate swaps and cross-currency interest rate swaps was as follows (in thousands):
|  | Notional Amount as of
Floating Rate Payer (Swap Counterparty) |  | May 31, 2024 |  | August 31, 2023
U.S. Bank |  | $ | 29,113 |  |  | $ | 30,069 |
Citibank N.A. |  | 73,102 |  |  | 65,599 |
Total |  | $ | 102,215 |  |  | $ | 95,668 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The table summarizes the effect of the fair value of interest rate swap and cross-currency interest rate swap derivative instruments that qualify for derivative hedge accounting and its associated tax effect on accumulated other comprehensive income/(loss) (in thousands):
|  |  |  | May 31, 2024 |  | August 31, 2023
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 current assets |  | $ | 2,606 |  |  | $ | (912) |  |  | $ | 1,694 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Cross-currency interest rate swaps |  | Other non-current assets |  | — |  |  | — |  |  | — |  |  | 5,574 |  |  | (1,950) |  |  | 3,624 |
Cross-currency interest rate swaps |  | Other current liabilities |  | (2,342) |  |  | 820 |  |  | (1,522) |  |  | — |  |  | — |  |  | — |
Cross-currency interest rate swaps |  | Other long-term liabilities |  | (4,137) |  |  | 1,448 |  |  | (2,689) |  |  | (3,321) |  |  | 1,162 |  |  | (2,159) |
Interest rate swaps |  | Other non-current assets |  | 1,979 |  |  | (442) |  |  | 1,537 |  |  | 2,243 |  |  | (501) |  |  | 1,742 |
Net fair value of derivatives designated as hedging instruments |  | $ | (1,894) |  |  | $ | 914 |  |  | $ | (980) |  |  | $ | 4,496 |  |  | $ | (1,289) |  |  | $ | 3,207 |
Schedule of Open Non-Deliverable Forward Foreign Exchange Contract | The following table summarizes the non-deliverable forward foreign exchange contracts that are open as of May 31, 2024:
Financial Derivative (Counterparty) |  | Subsidiary |  | Dates Entered into (Range) |  | Derivative Financial Instrument |  | Total Notional Amounts (in thousands) |  | Settlement Dates (Range)
Citibank, N.A. ("Citi") |  | Colombia |  | 28-Feb-2024 - 21-May-2024 |  | Forward foreign exchange contracts (USD) |  | $ | 21,500 |  |  | 26-Jun-2024 - 18-Dec-2024

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