Discontinued Operations

12 Months Ended

Dec. 31, 2011

Discontinued Operations [Abstract]

Discontinued Operations

13. DISCONTINUED OPERATIONS

Under the provisions of ASC 205-20, "Discontinued Operations", the identification and classification of a facility as held for sale, or the termination of any of CCA's management contracts by expiration or otherwise, may result in the classification of the operating results of such facility, net of taxes, as a discontinued operation, so long as the financial results can be clearly identified, and so long as CCA does not have any significant continuing involvement in the operations of the component after the disposal or termination transaction.

The results of operations, net of taxes, and the assets and liabilities of five correctional facilities each as further described below, have been reflected in the accompanying consolidated financial statements as discontinued operations in accordance with ASC 205-20 for the years ended December 31, 2011, 2010, and 2009.

In May 2008, CCA notified the Bay County Commission of its intention to exercise CCA's option to terminate the operational management contract for the 1,150-bed Bay County Jail and Annex in Panama City, Florida, effective October 9, 2008. The jail is owned by the County. During 2009, the Company reported expenses related to negative developments in outstanding legal matters at this facility which are presented as discontinued operations.

Pursuant to a re-bid of the management contracts, during September 2008, CCA was notified by the Texas Department of Criminal Justice ("TDCJ") of its intent to transfer the management of the 500- bed B.M. Moore Correctional Center in Overton, Texas and the 518-bed Diboll Correctional Center in Diboll, Texas to another operator, upon the expiration of the management contracts on January 16, 2009. Both of these facilities are owned by the TDCJ. Accordingly, the results of operations, net of taxes, and the assets and liabilities of these two facilities have been reported as discontinued operations since the termination of operations in the first quarter of 2009 for all periods presented.

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 since the 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 years ended December 31, 2011, 2010, and 2009 (in thousands):

	For the Years Ended December 31,
	2011		2010			2009
REVENUE:
Managed-only	$	—	$	22,906		$	41,580
		—		22,906			41,580
EXPENSES:
Managed-only		—		19,716			35,399
Depreciation and amortization		—		2,222			864
Goodwill impairment		—		1,684			—
		—		23,622			36,263
OPERATING INCOME (LOSS)		—		(716	)		5,317
Other income		—		59			18
INCOME (LOSS) BEFORE INCOME TAXES		—		(657	)		5,335
Income tax (expense) benefit		—		253			(1,723	)
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAXES	$	—	$	(404	)	$	3,612

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

	December 31,
	2011		2010
ASSETS
Cash and cash equivalents	$	—	$	4
Accounts receivable		1,821		1,821
Prepaid expenses and other current assets		27		330
Total current assets		1,848		2,155
Other assets		—		6
Total assets	$	1,848	$	2,161
LIABILITIES
Accounts payable and accrued expenses	$	1,090	$	1,583
Total current liabilities	$	1,090	$	1,583