Discontinued Operations

6 Months Ended

Jun. 30, 2011

Discontinued Operations

Discontinued Operations

5. DISCONTINUED OPERATIONS

In April 2010, CCA announced that pursuant to a re-bid of the management contract at the 1,520-bed Gadsden Correctional Institution in Quincy, Florida, the Florida DMS indicated its intent to award the management of the Gadsden facility to another operator. CCA transitioned management of the Gadsden facility during the third quarter of 2010 to the new operator. Additionally, in April 2010, CCA also provided notice to Hernando County, Florida of its intent to terminate the management contract at the 876-bed Hernando County Jail during the third quarter of 2010. Accordingly, the results of operations, net of taxes, and the assets and liabilities of these two facilities have been reported as discontinued operations upon termination of operations in the third quarter of 2010 for all periods presented.

The following table summarizes the results of operations for these facilities for the three and six months ended June 30, 2010 (in thousands):

	For the Three Months  Ended June 30, 2010			For the Six Months  Ended June 30, 2010
REVENUE:
Managed-only	$	9,483		$	18,648
		9,483			18,648
EXPENSES:
Managed-only		7,796			15,542
Depreciation and amortization		1,609			1,843
Goodwill impairment		1,684			1,684
		11,089			19,069
LOSS FROM DISCONTINUED OPERATIONS BEFORE INCOME TAXES BEFORE INCOME TAX		(1,606	)		(421	)
Income tax benefit		615			164
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAXES	$	(991	)	$	(257	)

The assets and liabilities of the discontinued operations presented in the accompanying consolidated balance sheets are as follows (in thousands):

	June 30, 2011		December 31, 2010
ASSETS
Cash and cash equivalents	$	—	$	4
Accounts receivable		1,821		1,821
Prepaid expenses and other current assets		209		330
Total current assets		2,030		2,155
Other assets				6
Total assets	$	2,030	$	2,161
LIABILITIES
Accounts payable and accrued expenses	$	1,158	$	1,583
Total current liabilities	$	1,158	$	1,583