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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 6 Months Ended
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Feb. 28, 2025
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 six months ended February 28, 2025:
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 |  | 25-Nov-24 |  | Citibank, N.A. ("Citi") |  | Cross currency interest rate swap |  | $18,700,000 |  | PriceSmart, Inc. |  | 6.00% |  | 10.91 | % |  | 27th day of each November, February, May and August beginning on February 27, 2025 |  | November 27, 2024 - November 27, 2027
Colombia subsidiary |  | 15-Nov-24 |  | Citibank, N.A. ("Citi") |  | Cross currency interest rate swap |  | $10,000,000 |  | PriceSmart, Inc. |  | 3.00% |  | 7.61 | % |  | 17th day of each February, May, August and November beginning on February 18, 2025 |  | November 18, 2024 - November 17, 2026
Colombia subsidiary |  | 19-Sep-24 |  | Citibank, N.A. ("Citi") |  | Cross currency interest rate swap |  | $12,500,000 |  | PriceSmart, Inc. |  | 4.00% |  | 9.15 | % |  | 24th day of each September, December, March and June beginning on December 24, 2024 |  | September 24, 2024 - September 24, 2029
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, 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 |  | 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
Panama subsidiary |  | 11-Jul-24 |  | Bank of Nova Scotia ("Scotiabank") |  | Interest rate swap |  | $16,500,000 |  | Bank of Nova Scotia |  | 3-month SOFR with a 2.95% floor |  | 4.43 | % |  | 1st day of each March, June, September and December beginning June 3, 2024. |  | February 29, 2024 - March 1, 2029
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 six months ended February 28, 2025 and February 29, 2024, 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 February 28, 2025 |  | $ | 699 |  |  | $ | 828 |  |  | $ | 1,527 |
Interest expense for the three months ended February 29, 2024 |  | $ | 1,054 |  |  | $ | 657 |  |  | $ | 1,711 |
Interest expense for the six months ended February 28, 2025 |  | $ | 1,924 |  |  | $ | 1,225 |  |  | $ | 3,149 |
Interest expense for the six months ended February 29, 2024 |  | $ | 2,116 |  |  | $ | 1,072 |  |  | $ | 3,188 |
(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) |  | February 28, 2025 |  | August 31, 2024
U.S. Bank |  | $ | 28,156 |  |  | $ | 28,794 |
Citibank N.A. |  | 71,200 |  |  | 72,270 |
Scotiabank |  | 16,500 |  |  | 16,500 |
Total |  | $ | 115,856 |  |  | $ | 117,564 |
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):
|  |  |  | February 28, 2025 |  | August 31, 2024
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 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 4,030 |  |  | $ | (1,411) |  |  | $ | 2,619 |
Cross-currency interest rate swaps |  | Other non-current assets |  | 48 |  |  | (17) |  |  | 31 |  |  | 259 |  |  | (90) |  |  | 169 |
Cross-currency interest rate swaps |  | Other current liabilities |  | — |  |  | — |  |  | — |  |  | (1,179) |  |  | 413 |  |  | (766) |
Cross-currency interest rate swaps |  | Other long-term liabilities |  | (3,749) |  |  | 1,312 |  |  | (2,437) |  |  | (1,778) |  |  | 622 |  |  | (1,156) |
Interest rate swaps |  | Other non-current assets |  | 1,068 |  |  | (239) |  |  | 829 |  |  | 1,223 |  |  | (274) |  |  | 949 |
Interest rate swaps |  | Other long-term liabilities |  | (264) |  |  | 74 |  |  | (190) |  |  | (322) |  |  | 90 |  |  | (232) |
Net fair value of derivatives designated as hedging instruments |  | $ | (2,897) |  |  | $ | 1,130 |  |  | $ | (1,767) |  |  | $ | 2,233 |  |  | $ | (650) |  |  | $ | 1,583 |
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 February 28, 2025:
Financial Derivative (Counterparty) |  | Subsidiary |  | Dates Entered into (Range) |  | Derivative Financial Instrument |  | Total Notional Amounts (in thousands) |  | Settlement Dates (Range)
Citibank, N.A. ("Citi") |  | Colombia |  | 21-Aug-2024 - 20-Feb-2025 |  | Forward foreign exchange contracts (USD) |  | $ | 22,500 |  |  | 20-Mar-2025 - 25-Sep-2025

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