NOTE 8 – 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 May 31, 2017
Revenue from external customers	$	6,455	$	438,871	$	201,007	$	83,925	$	—	$	730,258
Intersegment revenues		259,337		—		853		31		(260,221)		—
Depreciation and amortization		1,788		5,142		2,594		2,359		—		11,883
Operating income		(959)		32,018		9,993		1,753		(15,179)		27,626
Net income		(2,999)		26,475		9,538		1,003		(15,179)		18,838
Capital expenditures, net		2,336		6,895		2,015		770		—		12,016

Nine Months Ended May 31, 2017
Revenue from external customers	$	25,381	$	1,351,099	$	627,544	$	259,102	$	—	$	2,263,126
Intersegment revenues		847,368		—		3,726		53		(851,147)		—
Depreciation and amortization		4,837		15,146		7,583		6,879		—		34,445
Operating income		6,129		104,726		36,477		4,013		(45,938)		105,407
Net income		1,961		84,080		29,279		1,544		(45,938)		70,926
Capital expenditures, net		54,465		33,112		8,554		2,288		—		98,419
Long-lived assets (other than deferred tax assets)		69,141		289,405		107,542		127,528		—		593,616
Goodwill		—		31,113		4,519		—		—		35,632
Total assets		142,643		524,806		295,431		180,996		—		1,143,876

Three Months Ended May 31, 2016
Revenue from external customers	$	7,108	$	431,001	$	200,041	$	66,112	$	—	$	704,262
Intersegment revenues		249,639		—		1,665		—		(251,304)		—
Depreciation and amortization		1,391		4,823		2,436		1,621		—		10,271
Operating income/(loss)		3,479		30,898		11,484		(1,642)		(16,730)		27,489
Net income/(loss)		714		24,999		9,886		(2,032)		(16,730)		16,837
Capital expenditures, net		831		6,760		2,631		9,976		—		20,198

Nine Months Ended May 31, 2016
Revenue from external customers	$	21,924	$	1,329,485	$	641,739	$	200,976	$	—	$	2,194,124
Intersegment revenues		809,301		—		4,429		—		(813,730)		—
Depreciation and amortization		3,352		13,634		7,285		4,732		—		29,003
Operating income		14,141		103,587		39,732		(3,674)		(49,866)		103,920
Net income		4,032		82,634		34,789		(5,138)		(49,866)		66,451
Capital expenditures, net		4,158		22,438		8,381		18,972		—		53,949
Long-lived assets (other than deferred tax assets)		16,242		269,383		109,145		123,501		—		518,271
Goodwill		—		31,082		4,570		—		—		35,652
Total assets		85,933		511,530		286,477		165,883		—		1,049,823

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.