SEGMENT REPORTING

9 Months Ended

Sep. 30, 2012

SEGMENT REPORTING

11. SEGMENT REPORTING

As of September 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 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:
Owned and managed	$	352,908		$	339,180		$	1,050,803		$	1,010,889
Managed-only		90,240			91,410			267,930			271,305
Total management revenue		443,148			430,590			1,318,733			1,282,194
Operating expenses:
Owned and managed		231,205			218,428			694,751			645,724
Managed-only		78,352			79,099			237,577			231,561
Total operating expenses		309,557			297,527			932,328			877,285
Facility contribution:
Owned and managed		121,703			120,752			356,052			365,165
Managed-only		11,888			12,311			30,353			39,744
Total facility contribution		133,591			133,063			386,405			404,909
Other revenue (expense):
Rental and other revenue		1,705			1,547			4,291			5,067
Other operating expense		(4,781	)		(4,162	)		(14,128	)		(11,581	)
General and administrative		(22,015	)		(23,007	)		(66,950	)		(66,236	)
Depreciation and amortization		(28,612	)		(26,536	)		(85,301	)		(80,509	)
Operating income	$	79,888		$	80,905		$	224,317		$	251,650

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

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2012		2011		2012		2011
Capital expenditures:
Owned and managed	$	14,903	$	22,699	$	43,989	$	54,182
Managed-only		670		2,261		3,706		4,733
Discontinued operations		—		79		—		242
Corporate and other		2,864		3,560		12,119		6,959
Total capital expenditures	$	18,437	$	28,599	$	59,814	$	66,116

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

	September 30, 2012		December 31, 2011
Assets:
Owned and managed	$	2,651,489	$	2,711,926
Managed-only		126,544		123,806
Corporate and other		189,630		180,220
Discontinued operations		12		3,679
Total assets	$	2,967,675	$	3,019,631