SEGMENTS

The Company and its subsidiaries are principally engaged in the 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, which are used by management in setting up management lines of responsibility, providing support services, and making operational decisions and assessments of financial performance.

During the second quarter of fiscal year 2015, the Company added to its operating segments, the Colombia Operations, and desegregated the Colombia Operations from the Latin America Operations, renaming that segment Central America Operations. The Company has made this change as a result of the information that the Company's chief operating decision maker regularly reviews for purposes of allocating resources and assessing performance and the growing level of investment and sales activity in Colombia. Therefore, beginning in the second quarter of fiscal year 2015, the Company has reported its financial performance based on these new segments and has retrospectively adopted this change for the disclosure of financial information presented by segment. The Company’s operating segments are the United States, Central America, the Caribbean and Colombia. Additionally, certain inter-company charges are no longer allocated to the segments within this presentation and now appear as reconciling items to reflect the amount eliminated on consolidation of intersegment transactions. This presentation more closely reflects the information reviewed by the Company's chief operating decision maker. 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, in order to reflect the information reviewed by the Company's chief operating decision maker or it is impractical to do so.

The Company has made reclassifications to the consolidated balance sheet recorded during fiscal year 2015 (see Note 1 - Company Overview and Basis of Presentation) to the consolidated balance sheet for fiscal year 2014 to conform to the presentation in fiscal year 2015. These reclassifications did not impact net income. The following tables summarize the impact of these reclassifications to the amounts reported for each segment (in thousands):



	United States Operations			Central American Operations		Caribbean Operations		Colombia Operations			Total

Six Month Period Ended February 28, 2014
Long-lived assets (other than deferred tax assets) as previously reported	$	13,087		$	257,053	$	115,316	$	87,295		$	472,751
Reclassifications to long-lived assets	65			965		—		767			1,797
Long-lived assets (other than deferred tax assets) as currently reported	$	13,152		$	258,018	$	115,316	$	88,062		$	474,548

Total assets as previously reported	$	57,377		$	436,252	$	218,513	$	122,174		$	834,316
Reclassifications to total assets	—			72		—		—			72
Total assets as currently reported	$	57,377		$	436,324	$	218,513	$	122,174		$	834,388

As of August 31, 2014
Long-lived assets (other than deferred tax assets) as previously reported	$	16,488		$	265,950	$	113,134	$	130,330		$	525,902
Reclassifications to long-lived assets	96			2,096		—		970			3,162
Long-lived assets (other than deferred tax assets) as currently reported	$	16,584		$	268,046	$	113,134	$	131,300		$	529,064

Total assets as previously reported	$	91,190		$	457,325	$	223,251	$	168,452		$	940,218
Reclassifications to total assets	(15		)	70		—		(2,203		)	(2,148		)
Total assets as currently reported	$	91,175		$	457,395	$	223,251	$	166,249		$	938,070

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 Month Period Ended February 28, 2015
Revenue from external customers	$	6,235			$	426,226	$	220,225	97,610						$	750,296
Intersegment revenues	259,611				—		1,507		—			(261,118		)	—
Depreciation and amortization	545				3,698		2,451		1,942						8,636
Operating income	7,811				37,122		13,408		(844		)	(15,789		)	41,708
Net income	3,619				28,846		11,579		(3,420		)	(15,789		)	24,835
Capital expenditures, net	1,332				8,425		1,666		2,827						14,250

Six Month Period Ended February 28, 2015
Revenue from external customers	$	14,666			$	809,390	$	418,616	$	163,645		$	—		$	1,406,317
Intersegment revenues	597,939				—		2,890		—			(600,829		)	—
Depreciation and amortization	1,087				7,342		4,739		3,265			—			16,433
Operating income	15,714				68,254		25,577		(1,781		)	(29,771		)	77,993
Net income	6,981				53,174		21,833		(6,735		)	(29,771		)	45,482
Capital expenditures, net	(1,441		)	⁽²⁾	23,231		4,862		17,218			—			43,870
Long-lived assets (other than deferred tax assets)	14,045				284,661		112,877		122,786			—			534,369
Goodwill	—				31,381		4,688		—			—			36,069
Total assets	62,021				492,395		241,096		190,854			—			986,366

Three Month Period Ended February 28, 2014
Revenue from external customers	$	6,764			$	403,087	$	212,366	52,157			$	—		$	674,374
Intersegment revenues	209,102				—		1,143		—			(210,245		)	—
Depreciation and amortization	583				3,279		2,264		1,013			—			7,139
Operating income	5,904				34,076		12,939		1,973			(15,517		)	39,375
Net income	2,451				28,919		11,040		1,385			(15,517		)	28,278
Capital expenditures, net	3,565				9,269		1,710		25,264			—			39,808

Six Month Period Ended February 28, 2014
Revenue from external customers	$	12,485			$	762,622	$	404,426	$	100,442		$	—		$	1,279,975
Intersegment revenues	514,694				—		2,619		—			(517,313		)	—
Depreciation and amortization	1,155				6,107		4,483		2,048			—			13,793
Operating income	12,853				61,163		22,397		3,473			(28,152		)	71,734
Net income	5,517				50,810		19,340		2,195			(28,152		)	49,710
Capital expenditures, net	3,139				22,922		5,663		26,372			—			58,096
Long-lived assets (other than deferred tax assets)	13,152				258,018		115,316		88,062			—			474,548
Goodwill	—				31,530		4,791		—			—			36,321
Total assets	57,377				436,324		218,513		122,174			—			834,388

As of August 31, 2014
Long-lived assets (other than deferred tax assets)	$	16,584			$	268,046	$	113,134	$	131,300		$	—		$	529,064
Goodwill	—				31,383		4,725		—			—			36,108
Total assets	91,175				457,395		223,251		166,249			—			938,070


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


⁽²⁾	The decrease in capital expenditures is a result of the transfers of capital assets from this segment to other segments.