SEGMENTS

The Company and its subsidiaries are principally engaged in the international operation of membership shopping warehouse clubs in 13 countries/territories that are located in Latin America and the Caribbean. In addition, the Company operates distribution centers and corporate offices in the United States. The Company’s reportable segments are based on management’s organization of these locations into operating segments by general geographic location, used by management in setting up management lines of responsibility, providing support services, and making operational decisions and assessments of financial performance. The Company’s operating segments are the United States, Latin America and the Caribbean. Segment amounts are presented after converting to U.S. dollars and consolidating eliminations. Certain revenues and operating costs included in the United States segment have not been allocated, as it is impractical to do so.

As of August 31, 2010, the Company changed the “Central America” operating segment to the “Latin America” operating segment to reflect the inclusion of Colombia within the general geographic area of the Company’s operations.



	United States Operations		Latin American Operations		Caribbean Operations		Reconciling Items⁽¹⁾			Total
Year ended August 31, 2012
Revenue from external customers	$	15,320	$	1,341,688	$	693,737	$	—		$	2,050,745
Intersegment revenues	766,462		40		4,726		(771,228		)	—
Depreciation and amortization⁽²⁾	1,782		11,655		10,302		—			23,739
Operating income	30,750		57,657		19,519		—			107,926
Interest income from external sources	220		611		77		—			908
Interest income from intersegment sources	2,430		386		536		(3,352		)	—
Interest expense from external sources	25		4,148		1,110		—			5,283
Interest expense from intersegment sources	62		464		2,826		(3,352		)	—
Provision for income taxes	10,720		18,226		6,107		—			35,053
Net income attributable to PriceSmart	20,220		33,264		14,137		—			67,621
Long-lived assets (other than deferred tax assets)	17,781		249,925		116,557		—			384,263
Goodwill	—		31,760		5,126		—			36,886
Investment in unconsolidated affiliates	—		7,559		—		—			7,559
Identifiable assets	87,467		441,857		206,388		—			735,712
Capital expenditures, net	1,972		42,116		8,617		—			52,705
	United States Operations		Latin American Operations		Caribbean Operations		Reconciling Items⁽¹⁾			Total
Year ended August 31, 2011
Revenue from external customers	$	8,892	$	1,081,830	$	623,525	$	—		$	1,714,247
Intersegment revenues	638,684		—		4,875		(643,559		)	—
Depreciation and amortization⁽³⁾	1,171		11,683		8,300		—			21,154
Operating income	25,251		48,796		14,509		—			88,556
Interest income from external sources	117		624		111		—			852
Interest income from intersegment sources	2,946		1,076		290		(4,312		)	—
Interest expense from external sources	77		2,648		1,191		—			3,916
Interest expense from intersegment sources	—		1,164		3,148		(4,312		)	—
Provision for income taxes ⁽⁴⁾	5,357		18,539		3,572		—			27,468
Net income attributable to PriceSmart	22,753		30,471		8,526		—			61,750
Long-lived assets (other than deferred tax assets)	38,601		192,594		123,356		—			354,551
Goodwill	—		32,152		5,209		—			37,361
Investment in unconsolidated affiliates	—		8,063		—		—			8,063
Identifiable assets	63,154		388,325		212,849		—			664,328
Capital expenditures, net	4,979		28,940		13,114		—			47,033



	United States Operations		Latin American Operations		Caribbean Operations		Reconciling Items⁽¹⁾			Total
Year ended August 31, 2010
Revenue from external customers	$	4,199	$	856,994	$	534,698	$	—		$	1,395,891
Intersegment revenues	487,042		—		3,923		(490,965		)	—
Depreciation and amortization	953		8,341		5,966		—			15,260
Operating income	16,443		41,885		15,032		—			73,360
Interest income from external sources	135		306		112		—			553
Interest income from intersegment sources	3,378		1,057		417		(4,852		)	—
Interest expense from external sources	28		2,288		407		—			2,723
Interest expense from intersegment sources	120		1,900		2,832		(4,852		)	—
Provision for income taxes	6,742		11,466		4,579		—			22,787
Net income attributable to PriceSmart	12,882		27,294		9,139		—			49,315
Long-lived assets (other than deferred tax assets)	27,484		173,968		119,635		—			321,087
Goodwill	—		32,247		5,224		—			37,471
Investment in unconsolidated affiliates	—		8,091		—		—			8,091
Identifiable assets	65,635		305,429		201,501		—			572,565
Capital expenditures, net	4,283		15,400		30,524		—			50,207

⁽¹⁾ The reconciling items reflect the amount eliminated on consolidation of intersegment transactions.

⁽²⁾ Includes a $1.1 million error that increased expenses in the Caribbean operations and a $313,000 error that increased expenses in the Latin America operations both of which were related to prior periods. See Note 1- Company Overview and Basis of Presentation.

⁽³⁾ Includes a $2.0 million and $235,000 error that increased expense in the Latin America and Caribbean operations, respectively, related to prior periods. See Note 1 - Company Overview and Basis of Presentation.

⁽⁴⁾ Includes a $3.2 million error that decreased expense in the United States operations related to prior periods. See Note 1 - Company Overview and Basis of Presentation.