SEGMENT REPORTING

6 Months Ended

Jun. 30, 2012

SEGMENT REPORTING

11. SEGMENT REPORTING

As of June 30, 2012, CCA owned and managed 47 correctional and detention facilities, and managed 20 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 2011 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, 2012 and 2011 (in thousands):

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2012			2011			2012			2011
Revenue:
Owned and managed	$	352,194		$	336,078		$	697,895		$	671,709
Managed-only		89,220			91,773			177,690			179,895
Total management revenue		441,414			427,851			875,585			851,604
Operating expenses:
Owned and managed		233,066			214,105			463,546			427,296
Managed-only		79,010			75,706			159,225			152,462
Total operating expenses		312,076			289,811			622,771			579,758
Facility contribution:
Owned and managed		119,128			121,973			234,349			244,413
Managed-only		10,210			16,067			18,465			27,433
Total facility contribution		129,338			138,040			252,814			271,846
Other revenue (expense):
Rental and other revenue		1,452			2,093			2,586			3,520
Other operating expense		(4,508	)		(4,204	)		(9,347	)		(7,419	)
General and administrative		(23,095	)		(21,782	)		(44,935	)		(43,229	)
Depreciation and amortization		(28,302	)		(27,047	)		(56,689	)		(53,973	)
Operating income	$	74,885		$	87,100		$	144,429		$	170,745

The following table summarizes capital expenditures including accrued amounts for the reportable segments for the three and six months ended June 30, 2012 and 2011 (amounts in thousands):

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2012		2011		2012		2011
Capital expenditures:
Owned and managed	$	15,495	$	20,192	$	29,086	$	31,483
Managed-only		2,104		1,622		3,036		2,472
Discontinued operations		—		110		—		163
Corporate and other		2,308		2,045		9,255		3,399
Total capital expenditures	$	19,907	$	23,969	$	41,377	$	37,517

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

	June 30, 2012		December 31, 2011
Assets:
Owned and managed	$	2,686,035	$	2,711,926
Managed-only		113,373		123,806
Corporate and other		196,582		180,220
Discontinued operations		12		3,679
Total assets	$	2,996,002	$	3,019,631