DISCONTINUED OPERATIONS

9 Months Ended

Sep. 30, 2012

DISCONTINUED OPERATIONS

5. DISCONTINUED OPERATIONS

In November 2011, CCA announced its joint decision with the state of Mississippi to cease operations at the state-owned 1,172-bed Delta Correctional Facility in Greenwood, Mississippi. In December 2011, CCA began the process of transferring the population of approximately 900 inmates from the facility, which was completed in January 2012. Accordingly, the results of operations, net of taxes, and the assets and liabilities of the Delta facility have been reported as discontinued operations for all periods presented.

The following table summarizes the results of operations for this facility for the three and nine months ended September 30, 2012 and 2011 (in thousands):

	For the Three Months Ended  September 30,					For the Nine Months Ended  September 30,
	2012		2011			2012			2011
REVENUE:
Managed-only	$	—	$	2,906		$	193		$	8,659
		—		2,906			193			8,659
EXPENSES:
Managed-only		—		2,975			861			8,952
Depreciation and amortization		—		101			—			374
		—		3,076			861			9,326
OPERATING LOSS		—		(170	)		(668	)		(667	)
Other income		—		—			91			—
LOSS FROM DISCONTINUED OPERATIONS BEFORE INCOME TAXES		—		(170	)		(577	)		(667	)
Income tax benefit		—		63			215			252
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAXES	$	—	$	(107	)	$	(362	)	$	(415	)

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

	September 30, 2012		December 31, 2011
ASSETS
Cash and cash equivalents	$	—	$	30
Accounts receivable		—		3,353
Prepaid expenses and other current assets		12		115
Total current assets		12		3,498
Property and equipment, net		—		178
Other assets		—		3
Total assets	$	12	$	3,679
LIABILITIES
Accounts payable and accrued expenses	$	963	$	2,031
Total current liabilities	$	963	$	2,031

These assets and liabilities include those of the Delta facility, along with the assets and liabilities of the Gadsden Correctional Institution and the Hernando County Jail, both of which we ceased operating during the third quarter of 2010, and the Bay County Jail, which we ceased operating in 2008. We did not own any of these facilities.