Segment Reporting

6 Months Ended

Jun. 30, 2011

Segment Reporting

Segment Reporting

11. SEGMENT REPORTING

As of June 30, 2011, CCA owned and managed 45 correctional and detention facilities, and managed 21 correctional and detention facilities it did not own. Management views CCA's operating results in two reportable segments: (1) owned and managed correctional and detention facilities and (2) managed-only correctional and detention facilities. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies in the notes to consolidated financial statements included in CCA's 2010 Form 10-K. Owned and managed facilities include the operating results of those facilities placed into service that were owned and managed by CCA. Managed-only facilities include the operating results of those facilities owned by a third party and managed by CCA. CCA measures the operating performance of each facility within the above two reportable segments, without differentiation, based on facility contribution. CCA defines facility contribution as a facility's operating income or loss from operations before interest, taxes, goodwill impairment, depreciation, and amortization. Since each of CCA's facilities within the two reportable segments exhibit similar economic characteristics, provide similar services to governmental agencies, and operate under a similar set of operating procedures and regulatory guidelines, the facilities within the identified segments have been aggregated and reported as one reportable segment.

The revenue and facility contribution for the reportable segments and a reconciliation to CCA's operating income is as follows for the three and six months ended June 30, 2011 and 2010 (in thousands):

	For the Three Months Ended  June 30,						For the Six Months Ended  June 30,
	2011			2010			2011			2010
Revenue:
Owned and managed	$	336,078		$	327,248		$	671,709		$	653,266
Managed-only		94,632			80,490			185,648			158,856
Total management revenue		430,710			407,738			857,357			812,122
Operating expenses:
Owned and managed		214,105			211,103			427,296			427,034
Managed-only		78,740			70,663			158,439			141,039
Total operating expenses		292,845			281,766			585,735			568,073
Facility contribution:
Owned and managed		121,973			116,145			244,413			226,232
Managed-only		15,892			9,827			27,209			17,817
Total facility contribution		137,865			125,972			271,622			244,049
Other revenue (expense):
Rental and other revenue		2,093			2,161			3,520			3,559
Other operating expense		(4,204	)		(4,461	)		(7,419	)		(7,827	)
General and administrative		(21,782	)		(19,867	)		(43,229	)		(38,481	)
Depreciation and amortization		(27,191	)		(25,556	)		(54,246	)		(50,520	)
Operating income	$	86,781		$	78,249		$	170,248		$	150,780

The following table summarizes capital expenditures for the reportable segments for the three and six months ended June 30, 2011 and 2010 (amounts in thousands):

	For the Three Months Ended  June 30,				For the Six Months Ended  June 30,
	2011		2010		2011		2010
Capital expenditures:
Owned and managed	$	20,192	$	37,271	$	31,483	$	76,107
Managed-only		1,732		1,373		2,635		2,327
Discontinued operations		—		12		—		83
Corporate and other		2,045		2,434		3,399		3,484
Total capital expenditures	$	23,969	$	41,090	$	37,517	$	82,001

The assets for the reportable segments are as follows (amounts in thousands):

	June 30, 2011		December 31, 2010
Assets:
Owned and managed	$	2,633,916	$	2,698,509
Managed-only		116,509		127,960
Corporate and other		183,893		154,598
Discontinued operations		2,030		2,161
Total assets	$	2,936,348	$	2,983,228