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 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 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.

The Company has made reclassifications to the consolidated statements of income recorded during fiscal year 2014 (see Note 1 - Company Overview and Basis of Presentation) to the consolidated statement of income for fiscal year 2013 to conform to the presentation in fiscal year 2014. These reclassifications did not impact net income. The following table summarizes the impact of these reclassifications to the amounts reported for each segment (in thousands):



Twelve Month Period Ended August 31, 2013	United States Operations		Latin American Operations			Caribbean Operations			Total
Operating income -as previously reported	$	34,132	$	70,383		$	23,420		$	127,935
Reclassification - Gain/(Loss) asset disposals	—		(637		)	(252		)	(889		)
Operating income-as currently reported	$	34,132	$	69,746		$	23,168		$	127,046

The Company has made reclassifications to the consolidated balance sheet and to the consolidated statements of income recorded during fiscal year 2012 (see Note 1 - Company Overview and Basis of Presentation). These reclassifications have been made to prior fiscal year amounts to conform to the presentation in the current fiscal year. The following tables summarize the impact of these reclassifications to the amounts reported for each segment (in thousands):



Twelve Month Period Ended August 31, 2012	United States Operations			Latin American Operations			Caribbean Operations			Total
Revenue from external customers-as previously reported	$	15,320		$	1,341,688		$	693,737		$	2,050,745
Reclassifications - front end sales	—			(388		)	(294		)	(682		)
Reclassifications - demonstration income	—			(3,865		)	(1,035		)	(4,900		)
Revenue from external customers-as currently reported	$	15,320		$	1,337,435		$	692,408		$	2,045,163

Operating income -as previously reported	30,750			57,657			19,519			107,926
Reclassification - Gain/(Loss) asset disposals	(3		)	(263		)	(46		)	(312		)
Operating income-as currently reported	$	30,747		$	57,394		$	19,473		$	107,614

Long-lived assets (other than deferred tax assets)-as previously reported	17,781			249,925			116,557			384,263
Reclassification- VAT to long lived assets	—			11,321			1,992			13,313
Reclassifications prepaid assets to long lived assets⁽¹⁾	—			1,722			—			1,722
Long-lived assets (other than deferred tax assets)-as currently reported	$	17,781		$	262,968		$	118,549		$	399,298


⁽¹⁾	The Company reclassified prepaid expenses to long-lived assets within the Latin America Operations segment for approximately $1.7 million.



	United States Operations		Latin American Operations		Caribbean Operations		Reconciling Items⁽¹⁾			Total
Year ended August 31, 2014
Revenue from external customers	$	31,279	$	1,701,063	$	785,225	$	—		$	2,517,567
Intersegment revenues	959,297		—		5,265		(964,562		)	—
Depreciation and amortization	2,238		17,175		9,062		—			28,475
Operating income	38,450		71,860		26,397		—			136,707
Interest income from external sources	18		676		159		—			853
Interest income from intersegment sources	2,603		325		561		(3,489		)	—
Interest expense from external sources	34		3,549		712		—			4,295
Interest expense from intersegment sources	120		1,355		2,014		(3,489		)	—
Provision for income taxes	12,739		21,932		6,701		—			41,372
Net income	25,620		47,678		19,588		—			92,886
Long-lived assets (other than deferred tax assets)	16,488		396,280		113,134		—			525,902
Goodwill	—		31,383		4,725		—			36,108
Investment in unconsolidated affiliates	—		8,863		—		—			8,863
Total assets	91,190		625,777		223,251		—			940,218
Capital expenditures, net	7,627		103,979		9,534		—			121,140
	United States Operations		Latin American Operations		Caribbean Operations		Reconciling Items⁽¹⁾			Total
Year ended August 31, 2013
Revenue from external customers	$	23,059	$	1,542,401	$	734,352	$	—		$	2,299,812
Intersegment revenues	877,337		99		4,721		(882,157		)	—
Depreciation and amortization	2,121		13,453		8,870		—			24,444
Operating income	34,132		69,746		23,168		—			127,046
Interest income from external sources	163		1,077		95		—			1,335
Interest income from intersegment sources	2,841		410		556		(3,807		)	—
Interest expense from external sources	8		3,136		1,072		—			4,216
Interest expense from intersegment sources	141		1,061		2,605		(3,807		)	—
Provision for income taxes	11,011		21,921		6,010		—			38,942
Net income	23,200		44,862		16,203		—			84,265
Long-lived assets (other than deferred tax assets)	19,114		304,731		113,742		—			437,587
Goodwill	—		31,474		4,890		—			36,364
Investment in unconsolidated affiliates	—		8,104		—		—			8,104
Total assets	103,844		518,313		203,882		—			826,039
Capital expenditures, net	3,456		59,064		7,407		—			69,927



	United States Operations		Latin American Operations		Caribbean Operations		Reconciling Items⁽¹⁾			Total
Year ended August 31, 2012
Revenue from external customers	$	15,320	$	1,337,435	$	692,408	$	—		$	2,045,163
Intersegment revenues	766,462		40		4,726		(771,228		)	—
Depreciation and amortization⁽²⁾	1,782		11,655		10,302		—			23,739
Operating income	30,747		57,394		19,473		—			107,614
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	20,220		33,264		14,137		—			67,621
Long-lived assets (other than deferred tax assets)	17,781		262,968		118,549		—			399,298
Goodwill	—		31,760		5,126		—			36,886
Investment in unconsolidated affiliates	—		7,559		—		—			7,559
Total assets	87,467		441,857		206,388		—			735,712
Capital expenditures, net	1,972		42,116		8,617		—			52,705


⁽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.