DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 2012

DISCONTINUED OPERATIONS

12. 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 three 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, 2012, 2011, and 2010.

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.

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 these facilities for the years ended December 31, 2012, 2011, and 2010 (in thousands):

	For the Years Ended December 31,
	2012			2011			2010
REVENUE:
Managed-only	$	193		$	11,270		$	34,620
		193			11,270			34,620
EXPENSES:
Managed-only		861			12,527			32,324
Depreciation and amortization		—			715			2,563
Goodwill impairment		—			—			1,684
		861			13,242			36,571
OPERATING LOSS		(668	)		(1,972	)		(1,951	)
Other income		91			—			60
LOSS BEFORE INCOME TAXES		(577	)		(1,972	)		(1,891	)
Income tax benefit		215			716			721
LOSS FROM DISCONTINUED OPERATIONS, NET OF TAXES	$	(362	)	$	(1,256	)	$	(1,170	)

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

	December 31,
	2012		2011
ASSETS
Cash and cash equivalents	$	—	$	30
Accounts receivable		—		3,353
Prepaid expenses and other current assets		—		115
Total current assets		—		3,498
Property and equipment, net		—		178
Other assets		—		3
Total assets	$	—	$	3,679
LIABILITIES
Accounts payable and accrued expenses	$	356	$	2,031
Total current liabilities	$	356	$	2,031