NOTE 9 – SEGMENTS

The Company and its subsidiaries are principally engaged in the international operation of membership shopping in 41 warehouse clubs located in 13 countries/territories that are located in Central America, the Caribbean and Colombia. The Company also acquired a cross-border logistics and e-commerce provider whose central offices and primary distribution facility are located in Miami, which provides service in 38 countries 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, cross-border logistics, and e-commerce, 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. The Company has aggregated its cross-border logistics and e-commerce operations within the United States reporting segment. 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)(2)		Total
Three Months Ended May 31, 2018
Revenue from external customers	$	17,802	$	451,597	$	214,506	$	98,296	$	—	$	782,201
Intersegment revenues		291,925		—		1,087		376		(293,388)		—
Depreciation and amortization		2,245		6,050		2,934		2,337		—		13,566
Operating income		(883)		31,257		11,538		2,989		(16,472)		28,429
Net income (loss) attributable to PriceSmart, Inc.		(2,792)		25,485		10,074		2,377		(16,450)		18,694
Capital expenditures, net		3,024		12,803		14,368		873		—		31,068

Nine Months Ended May 31, 2018
Revenue from external customers	$	35,087	$	1,397,668	$	663,317	$	292,764	$	—	$	2,388,836
Intersegment revenues		906,114		—		3,265		693		(910,072)		—
Depreciation and amortization		5,680		17,459		8,343		6,896		—		38,378
Operating income		3,354		100,463		36,763		8,198		(49,919)		98,859
Net income (loss) attributable to PriceSmart, Inc.		(17,182)		82,997		33,000		6,414		(49,897)		55,332
Capital expenditures, net		4,612		35,364		33,997		2,729		—		76,702
Long-lived assets (other than deferred tax assets)		72,343		312,468		148,789		125,699		—		659,299
Goodwill and intangibles, net		31,626		30,770		4,548		—		—		66,944
Total assets		160,793		562,401		333,985		189,291		—		1,246,470

Three Months Ended May 31, 2017
Revenue from external customers	$	6,455	$	438,871	$	201,007	$	83,925	$	—	$	730,258
Intersegment revenues		259,337		—		853		31		(260,221)		—
Depreciation and amortization		1,788		5,142		2,594		2,359		—		11,883
Operating income		245		31,444		9,706		1,410		(15,179)		27,626
Net income (loss) attributable to PriceSmart, Inc.		(1,795)		25,901		9,251		660		(15,179)		18,838
Capital expenditures, net		2,336		6,895		2,015		770		—		12,016

Nine Months Ended May 31, 2017
Revenue from external customers	$	25,381	$	1,351,099	$	627,544	$	259,102	$	—	$	2,263,126
Intersegment revenues		847,368		—		3,726		53		(851,147)		—
Depreciation and amortization		4,837		15,146		7,583		6,879		—		34,445
Operating income		10,166		102,410		35,531		3,238		(45,938)		105,407
Net income (loss) attributable to PriceSmart, Inc.		5,998		81,764		28,333		769		(45,938)		70,926
Capital expenditures, net		54,465		33,112		8,554		2,288		—		98,419
Long-lived assets (other than deferred tax assets)		69,141		289,405		107,542		127,528		—		593,616
Goodwill and intangibles, net		—		31,113		4,519		—		—		35,632
Total assets		142,643		524,806		295,431		180,996		—		1,143,876

As of August 31, 2017
Long-lived assets (other than deferred tax assets)	$	70,353	$	296,915	$	122,616	$	126,206	$	—	$	616,090
Goodwill and intangibles, net		—		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.

⁽²⁾

The reconciling items contain a $22,000 adjustment for net income attributable to non-controlling interest.