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 February 28, 2018
Revenue from external customers	$	9,138	$	493,905	$	234,169	$	102,351	$	—	$	839,563
Intersegment revenues		274,061		—		971		119		(275,151)		—
Depreciation and amortization		1,691		5,886		2,732		2,266		—		12,575
Operating income		1,146		36,673		13,601		3,161		(17,317)		37,264
Net income (loss)		(13,825)		30,124		12,456		2,710		(17,317)		14,148
Capital expenditures, net		584		11,191		9,332		1,024		—		22,131

Six Months Ended February 28, 2018
Revenue from external customers	$	17,285	$	946,071	$	448,811	$	194,468	$	—	$	1,606,635
Intersegment revenues		614,189		—		2,178		317		(616,684)		—
Depreciation and amortization		3,435		11,409		5,409		4,559		—		24,812
Operating income		4,237		69,206		25,225		5,209		(33,447)		70,430
Net income (loss)		(14,390)		57,512		22,926		4,037		(33,447)		36,638
Capital expenditures, net		1,588		22,561		19,629		1,856		—		45,634
Long-lived assets (other than deferred tax assets)		68,597		308,085		136,589		126,914		—		640,185
Goodwill		—		30,926		4,547		—		—		35,473
Total assets		129,623		552,343		320,848		188,910		—		1,191,724

Three Months Ended February 28, 2017
Revenue from external customers	$	8,171	$	473,994	$	219,515	$	91,616	$	—	$	793,296
Intersegment revenues		270,369		—		1,175		12		(271,556)		—
Depreciation and amortization		1,475		5,140		2,531		2,299		—		11,445
Operating income		2,324		37,462		13,611		915		(14,910)		39,402
Net income		4,135		29,636		8,221		137		(14,910)		27,219
Capital expenditures, net		49,792		15,461		2,101		1,045		—		68,399

Six Months Ended February 28, 2017
Revenue from external customers	$	18,926	$	912,228	$	426,537	$	175,177	$	—	$	1,532,868
Intersegment revenues		588,031		—		2,873		22		(590,926)		—
Depreciation and amortization		3,049		10,004		4,989		4,520		—		22,562
Operating income		9,921		70,966		25,825		1,828		(30,759)		77,781
Net income		7,793		55,863		19,082		109		(30,759)		52,088
Capital expenditures, net		52,129		26,217		6,539		1,518		—		86,403
Long-lived assets (other than deferred tax assets)		68,872		288,855		109,353		134,833		—		601,913
Goodwill		—		31,153		4,539		—		—		35,692
Total assets		126,494		538,628		300,983		190,847		—		1,156,952

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.