SEGMENTS

The Company and its subsidiaries are principally engaged in the international operation of membership shopping in 37 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.

Prior to fiscal year 2015, the Company's operating segments, were the United States, Latin American and the Caribbean. During the second quarter of fiscal year 2015, the Company created a new operating segment comprised of its Colombia Operations and separated 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 senior operating management 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. This presentation more closely reflects the information reviewed by the Company's chief operating decision maker.

The Company has made reclassifications to the consolidated balance sheet for fiscal year 2014 (see Note 1 - Company Overview and Basis of Presentation) 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
As of August 31, 2014
Long-lived assets (other than deferred tax assets) as previously reported	$	16,488		$	234,567	$	108,409	$	130,330		$	489,794
Reclassifications to long-lived assets	96			2,096		—		970			3,162
Long-lived assets (other than deferred tax assets) as currently reported	$	16,584		$	236,663	$	108,409	$	131,300		$	492,956

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



	United States Operations		Central American Operations		Caribbean Operations		Colombia Operations			Reconciling Items⁽¹⁾			Total
Year ended August 31, 2015
Revenue from external customers	$	33,320	$	1,625,567	$	821,047	$	322,669		$	—		$	2,802,603
Intersegment revenues	1,107,592		—		5,626		—			(1,113,218		)	—
Depreciation and amortization	2,733		15,115		9,605		6,992			—			34,445
Operating income	26,728		130,763		49,351		(1,488		)	(58,988		)	146,366
Interest income from external sources	79		811		114		54			—			1,058
Interest income from intersegment sources	3,142		282		556		—			(3,980		)	—
Interest expense from external sources	5		4,147		607		1,681			—			6,440
Interest expense from intersegment sources	126		1,204		1,966		684			(3,980		)	—
Provision for income taxes	15,548		24,618		6,787		613			—			47,566
Net income	11,490		102,397		41,626		(7,401		)	(58,988		)	89,124
Long-lived assets (other than deferred tax assets)	15,391		255,576		107,746		105,290			—			484,003
Goodwill	—		31,211		4,660		—			—			35,871
Investment in unconsolidated affiliates	—		10,317		—		—			—			10,317
Total assets	89,167		491,548		239,311		171,666			—			991,692
Capital expenditures, net	1,655		54,735		10,619		24,172			—			91,181
	United States Operations		Central American Operations		Caribbean Operations		Colombia Operations			Reconciling Items⁽¹⁾			Total
Year ended August 31, 2014
Revenue from external customers	$	31,279	$	1,503,446	$	785,225	$	197,617		$	—		$	2,517,567
Intersegment revenues	959,297		—		5,265		—			(964,562		)	—
Depreciation and amortization	2,238		12,992		9,062		4,183			—			28,475
Operating income	22,191		119,101		45,343		4,881			(54,809		)	136,707
Interest income from external sources	18		631		159		45			—			853
Interest income from intersegment sources	2,603		325		561		—			(3,489		)	—
Interest expense from external sources	34		2,530		712		1,019			—			4,295
Interest expense from intersegment sources	120		1,054		2,014		301			(3,489		)	—
Provision for income taxes	12,739		21,542		6,701		390			—			41,372
Net income	9,360		96,204		38,534		3,597			(54,809		)	92,886
Long-lived assets (other than deferred tax assets)	16,584		236,663		108,409		131,300			—			492,956
Goodwill	—		31,383		4,725		—			—			36,108
Investment in unconsolidated affiliates	—		8,863		—		—			—			8,863
Total assets	91,175		457,395		223,251		166,249			—			938,070
Capital expenditures, net	7,627		35,802		9,534		68,177			—			121,140



	United States Operations		Central American Operations		Caribbean Operations		Colombia Operations			Reconciling Items⁽¹⁾			Total
Year ended August 31, 2013
Revenue from external customers	$	23,059	$	1,387,290	$	734,352	$	155,111		$	—		$	2,299,812
Intersegment revenues	877,337		99		4,721		—			(882,157		)	—
Depreciation and amortization	2,121		10,390		8,870		3,063			—			24,444
Operating income	30,701		106,837		37,667		1,688			(49,847		)	127,046
Interest income from external sources	163		1,055		95		22			—			1,335
Interest income from intersegment sources	2,841		410		556		—			(3,807		)	—
Interest expense from external sources	8		1,841		1,072		1,295			—			4,216
Interest expense from intersegment sources	141		403		2,605		658			(3,807		)	—
Provision for income taxes	11,011		21,748		6,010		173			—			38,942
Net income	19,769		84,391		30,702		(750		)	(49,847		)	84,265
Long-lived assets (other than deferred tax assets)	19,213		208,248		108,852		66,440			—			402,753
Goodwill	—		31,474		4,890		—			—			36,364
Investment in unconsolidated affiliates	—		8,104		—		—			—			8,104
Total assets	103,844		420,704		203,882		97,609			—			826,039
Capital expenditures, net	3,456		40,862		7,407		18,202			—			69,927


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