Pricesmart PSMT Finance Lease Liabilities

Lease Accounting – The Company’s leases are operating and finance leases for warehouse clubs and non-warehouse club facilities such as regional offices and regional distribution centers. The Company determines if an arrangement is a lease and classifies it as either a finance or operating lease at lease inception. Operating leases are included in Operating lease right-of-use assets, net; Operating lease liabilities, current portion; and Long-term operating lease liabilities on the consolidated balance sheets. Finance leases are included in Other non-current assets; Other accrued expenses and other current liabilities; and Other long-term liabilities on the consolidated balance sheets. During the nine months ended May 31, 2026, the Company entered into finance leases for land to construct new clubs which resulted in the recognition of right-of-use assets and corresponding lease liabilities. As of May 31, 2026, the balances of our finance lease right-of-use assets and corresponding lease liabilities were approximately $21.9 million and $22.3 million, respectively. The Company currently has no current portion of the liability as the payments over the next twelve months do not exceed the interest expense incurred over that time period.