NOTE 11 – SEGMENTS

The Company and its subsidiaries are principally engaged in the international operation of membership shopping in 39 warehouse clubs located in 13 countries/territories that are located in Central America, the Caribbean and Colombia. In addition, the Company operates distribution centers and corporate offices in the United States. The Company has aggregated its warehouse clubs, distribution centers and corporate offices into reportable segments. The Company’s reportable segments are based on management’s organization of these locations into operating segments by general geographic location, used by management and the Company's chief operating decision maker in setting up management lines of responsibility, providing support services, and making operational decisions and assessments of financial performance. Segment amounts are presented after converting to U.S. dollars and consolidating eliminations. Certain revenues, operating costs and inter-company charges included in the United States segment are not allocated to the segments within this presentation, as it is impractical to do so, and they appear as reconciling items to reflect the amount eliminated on consolidation of intersegment transactions.

The following tables summarize by segment certain revenues, operating costs and balance sheet items (in thousands):



	United States Operations		Central American Operations			Caribbean Operations		Colombia Operations		Reconciling Items(1)		Total
Three Months Ended November 30, 2016
Revenue from external customers	$	10,755		$	438,234	$	207,022	$	83,561	$	—	$	739,572
Intersegment revenues		317,662			—		1,698		10		(319,370)		—
Depreciation and amortization		1,574			4,864		2,458		2,221		—		11,117
Operating income		6,247			34,337		12,526		1,118		(15,849)		38,379
Net income		2,308			27,060		11,173		177		(15,849)		24,869
Capital expenditures, net		2,337			10,756		4,438		473		—		18,004
Long-lived assets (other than deferred tax assets)		20,372			278,721		110,939		125,589		—		535,621
Goodwill		—			31,072		4,531		—		—		35,603
Total assets		70,283			542,238		321,235		184,114		—		1,117,870

Three Months Ended November 30, 2015
Revenue from external customers	$	8,249		$	423,560	$	211,663	$	68,459	$	—	$	711,931
Intersegment revenues		314,621			—		1,438		—		(316,059)		—
Depreciation and amortization		930			4,241		2,408		1,624		—		9,203
Operating income/(loss)		5,479			33,709		13,590		(334)		(15,149)		37,295
Net income/(loss)		1,727			26,202		11,803		(911)		(15,149)		23,672
Capital expenditures, net		909			11,181		3,982		3,275		—		19,347
Long-lived assets (other than deferred tax assets)		15,380			266,435		109,455		106,118		—		497,388
Goodwill		—			31,212		4,634		—		—		35,846
Total assets		71,427			529,297		278,104		168,279		—		1,047,107

As of August 31, 2016
Long-lived assets (other than deferred tax assets)	$	19,222		$	271,039	$	108,426	$	137,599	$	—	$	536,286
Goodwill		—			31,091		4,546		—		—		35,637
Total assets		100,744			515,478		287,088		193,425		—		1,096,735

⁽¹⁾

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