Discontinued Operations

9 Months Ended

Sep. 30, 2013

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.

During the second quarter of 2013, CCA announced that the TDCJ elected not to renew its contract for the 2,216-bed managed-only Dawson State Jail due to a legislative budget reduction. As a result, upon expiration of the contract in August 2013, CCA ceased operations of the Dawson State Jail. During the second quarter of 2013, CCA also received notification that it was not selected for the continued management of the 1,000-bed Wilkinson County Correctional Facility at the end of the contract on June 30, 2013.

Accordingly, the results of operations, net of taxes, and the assets and liabilities of these three facilities have been reported as discontinued operations for all periods presented. The following table summarizes the results of operations for the facilities classified as discontinued operations for the three and nine months ended September 30, 2013 and 2012 (in thousands):

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2013			2012			2013			2012
REVENUE:
Managed-only	$	2,007		$	9,126		$	19,984		$	27,237
		2,007			9,126			19,984			27,237
EXPENSES:
Managed-only		2,945			8,747			22,529			27,252
Depreciation and amortization		124			224			799			645
Asset impairments		—			—			2,637			—
		3,069			8,971			25,965			27,897
OPERATING (LOSS) INCOME		(1,062	)		155			(5,981	)		(660	)
Other (expense) income		(16	)		—			(17	)		90
(LOSS) INCOME FROM DISCONTINUED OPERATIONS BEFORE INCOME TAXES		(1,078	)		155			(5,998	)		(570	)
Income tax benefit (expense)		415			(56	)		2,241			215
(LOSS) INCOME FROM DISCONTINUED OPERATIONS, NET OF TAXES	$	(663	)	$	99		$	(3,757	)	$	(355	)

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

	September 30, 2013		December 31, 2012
ASSETS
Cash and cash equivalents	$	129	$	93
Accounts receivable		67		5,680
Prepaid expenses and other current assets		345		676
Total current assets		541		6,449
Property and equipment, net		—		2,309
Goodwill		—		831
Other assets		25		30
Total assets	$	566	$	9,619
LIABILITIES
Accounts payable and accrued expenses	$	1,066	$	1,827
Total current liabilities	$	1,066	$	1,827