Segment Reporting

9 Months Ended

Sep. 30, 2011

Segment Reporting [Abstract]

Segment Reporting

11. SEGMENT REPORTING

As of September 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 nine months ended September 30, 2011 and 2010 (in thousands):

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2011			2010			2011			2010
Revenue:
Owned and managed	$	339,180		$	340,473		$	1,010,889		$	993,739
Managed-only		94,316			84,865			279,964			243,721
Total management revenue		433,496			425,338			1,290,853			1,237,460
Operating expenses:
Owned and managed		218,428			214,727			645,724			641,761
Managed-only		82,074			73,772			240,513			214,811
Total operating expenses		300,502			288,499			886,237			856,572
Facility contribution:
Owned and managed		120,752			125,746			365,165			351,978
Managed-only		12,242			11,093			39,451			28,910
Total facility contribution		132,994			136,839			404,616			380,888
Other revenue (expense):
Rental and other revenue		1,547			1,812			5,067			5,371
Other operating expense		(4,162	)		(3,661	)		(11,581	)		(11,488	)
General and administrative		(23,007	)		(23,606	)		(66,236	)		(62,087	)
Depreciation and amortization		(26,637	)		(26,195	)		(80,883	)		(76,715	)
Operating income	$	80,735		$	85,189		$	250,983		$	235,969

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

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2011		2010		2011		2010
Capital expenditures:
Owned and managed	$	22,699	$	13,480	$	54,182	$	89,587
Managed-only		2,340		3,406		4,975		5,733
Discontinued operations		—		—		—		83
Corporate and other		3,560		1,849		6,959		5,333
Total capital expenditures	$	28,599	$	18,735	$	66,116	$	100,736

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

	September 30, 2011		December 31, 2010
Assets:
Owned and managed	$	2,632,773	$	2,698,509
Managed-only		121,378		127,960
Corporate and other		176,345		154,598
Discontinued operations		2,057		2,161
Total assets	$	2,932,553	$	2,983,228