Segment Reporting

12 Months Ended

Aug. 28, 2011

Segment Reporting

Segment Reporting

Note 12—Segment Reporting

The Company and its subsidiaries are principally engaged in the operation of membership warehouses in the United States, Canada, the United Kingdom, Japan, Australia, through majority-owned subsidiaries in Taiwan and Korea, and the Mexico joint venture. The Company's reportable segments are largely based on management's organization of the operating segments for operational decisions and assessments of financial performance, which considers geographic locations. As discussed in Note 1, the Company began consolidating Mexico on August 30, 2010. For segment reporting, these operations are included as a component of other international operations for the year ended August 28, 2011. Prior year amounts for Mexico are only included in total assets under United States operations in the table below, representing the equity method investment in the joint venture, as it was previously accounted for under the equity method and its operations were not consolidated. The material accounting policies of the segments are the same as those described in Note 1. All material inter-segment net sales and expenses have been eliminated in computing total revenue and operating income.

	United States Operations		Canadian Operations		Other International Operations		Total
Year Ended August 28, 2011
Total revenue	$	64,904	$	14,020	$	9,991	$	88,915
Operating income		1,395		621		423		2,439
Depreciation and amortization		640		117		98		855
Capital expenditures, net		876		144		270		1,290
Property and equipment, net		8,870		1,608		1,954		12,432
Total assets		18,558		3,741		4,462		26,761
Year Ended August 29, 2010
Total revenue	$	59,624	$	12,051	$	6,271	$	77,946
Operating income		1,310		547		220		2,077
Depreciation and amortization		625		107		63		795
Capital expenditures, net		804		162		89		1,055
Property and equipment, net		8,709		1,474		1,131		11,314
Total assets		18,247		3,147		2,421		23,815
Year Ended August 30, 2009
Total revenue	$	56,548	$	9,737	$	5,137	$	71,422
Operating income		1,273		354		150		1,777
Depreciation and amortization		589		90		49		728
Capital expenditures, net		904		135		211		1,250
Property and equipment, net		8,415		1,394		1,091		10,900
Total assets		17,228		2,641		2,110		21,979

Certain home office operating expenses are incurred on behalf of the Company's Canadian and Other International Operations, but are included in the United States Operations above because those costs are not allocated internally and generally come under the responsibility of the Company's United States management team.