DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 2013

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 hereafter, have been reflected in the accompanying consolidated financial statements as discontinued operations in accordance with ASC 205-20 for the years ended December 31, 2013, 2012, and 2011.

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 in Dallas, Texas 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 managed-only Wilkinson County Correctional Facility in Woodville, Mississippi 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 years ended December 31, 2013, 2012 and 2011 (in thousands):

	For the Years Ended December 31,
	2013			2012			2011
REVENUE:
Managed-only	$	19,984		$	36,421		$	46,808
		19,984			36,421			46,808
EXPENSES:
Managed-only		22,529			35,994			45,131
Depreciation and amortization		799			870			1,363
Asset impairments		2,637			—			—
		25,965			36,864			46,494
OPERATING (LOSS) INCOME		(5,981	)		(443	)		314
Other (expense) income		(17	)		96			1
(LOSS) INCOME BEFORE INCOME TAXES		(5,998	)		(347	)		315
Income tax benefit (expense)		2,241			142			(135	)
(LOSS) INCOME FROM DISCONTINUED OPERATIONS, NET OF TAXES	$	(3,757	)	$	(205	)	$	180

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

	December 31,
	2013		2012
ASSETS
Cash and cash equivalents	$	10	$	93
Accounts receivable		—		5,680
Prepaid expenses and other current assets		5		676
Total current assets		15		6,449
Property and equipment, net		—		2,309
Goodwill		—		831
Other assets		—		30
Total assets	$	15	$	9,619
LIABILITIES
Accounts payable and accrued expenses	$	886	$	1,827
Total current liabilities	$	886	$	1,827