NOTE 8 – SEGMENTS

The Company and its subsidiaries are principally engaged in the international operation of membership shopping in 40 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. From time to time, the Company revises the measurement of each segment's operating income and net income, including certain corporate overhead allocations, and other measures as determined by the information regularly reviewed by the Company's chief operating decision maker. When the Company does so, the previous period amounts and balances are reclassified to conform to the current period's presentation.

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 November 30, 2017
Revenue from external customers	$	8,147	$	452,166	$	214,642	$	92,117	$	—	$	767,072
Intersegment revenues		340,128		—		1,207		198		(341,533)		—
Depreciation and amortization		1,744		5,523		2,677		2,293		—		12,237
Operating income		3,739		31,942		11,470		2,145		(16,130)		33,166
Net income (loss)		82		26,796		10,317		1,425		(16,130)		22,490
Capital expenditures, net		1,004		11,370		10,297		832		—		23,503
Long-lived assets (other than deferred tax assets)		70,352		304,434		130,896		121,629		—		627,311
Goodwill		—		31,014		4,564		—		—		35,578
Total assets		121,674		580,523		334,279		186,352		—		1,222,828

Three Months Ended November 30, 2016
Revenue from external customers	$	10,755	$	438,234	$	207,022	$	83,561	$	—	$	739,572
Intersegment revenues		317,662		—		1,698		10		(319,370)		—
Depreciation and amortization		1,574		4,864		2,458		2,221		—		11,117
Operating income		7,597		33,504		12,214		913		(15,849)		38,379
Net income		3,658		26,227		10,861		(28)		(15,849)		24,869
Capital expenditures, net		2,337		10,756		4,438		473		—		18,004
Long-lived assets (other than deferred tax assets)		20,372		278,721		110,939		125,589		—		535,621
Goodwill		—		31,072		4,531		—		—		35,603
Total assets		70,283		542,238		321,235		184,114		—		1,117,870

As of August 31, 2017
Long-lived assets (other than deferred tax assets)	$	70,353	$	296,915	$	122,616	$	126,206	$	—	$	616,090
Goodwill		—		31,118		4,524		—		—		35,642
Total assets		147,650		544,683		303,234		181,947		—		1,177,514

⁽¹⁾

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