SEGMENT REPORTING

3 Months Ended

Mar. 31, 2015

SEGMENT REPORTING

10. SEGMENT REPORTING

As of March 31, 2015, CCA owned and managed 47 correctional and detention facilities, and managed 12 correctional and detention facilities it did not own. In addition, CCA owned three facilities that it leased to third-party operators. Management views CCA’s operating results in one operating segment. However, the Company has chosen to report financial performance segregated for (1) owned and managed correctional and detention facilities and (2) managed-only correctional and detention facilities as the Company believes this information is useful to users of the financial statements. Owned and managed facilities include the operating results of those facilities placed into service that were owned or controlled via a long-term lease and managed by CCA. Managed-only facilities include the operating results of those facilities owned by a third party and managed by CCA. The operating performance of the owned and managed and the managed-only correctional and detention facilities can be measured based on their net operating income. CCA defines facility net operating income as a facility’s operating income or loss from operations before interest, taxes, asset impairments, depreciation, and amortization.

The revenue and net operating income for the owned and managed and the managed-only facilities and a reconciliation to CCA’s operating income is as follows for the three months ended March 31, 2015 and 2014 (in thousands):

	For the Three Months Ended March 31,
	2015			2014
Revenue:
Owned and managed	$	363,964		$	334,912
Managed-only		52,944			64,003
Total management revenue		416,908			398,915
Operating expenses:
Owned and managed		244,300			227,648
Managed-only		48,009			58,445
Total operating expenses		292,309			286,093
Facility net operating income
Owned and managed		119,664			107,264
Managed-only		4,935			5,558
Total facility net operating income		124,599			112,822
Other revenue (expense):
Rental and other revenue		9,092			5,307
Other operating expense		(8,353	)		(1,287	)
General and administrative expense		(26,872	)		(25,392	)
Depreciation and amortization		(28,685	)		(28,384	)
Asset impairments		(955	)		—
Operating income	$	68,826		$	63,066

The following table summarizes capital expenditures for the three months ended March 31, 2015 and 2014 (in thousands):

	For the Three Months Ended March 31,
	2015		2014
Capital expenditures:
Owned and managed	$	82,834	$	25,620
Managed-only		731		632
Corporate and other		7,614		1,032
Total capital expenditures	$	91,179	$	27,284

The total assets are as follows (in thousands):

	March 31, 2015		December 31, 2014
Assets:
Owned and managed	$	2,784,343	$	2,745,905
Managed-only		63,513		68,146
Corporate and other		311,915		313,140
Total assets	$	3,159,771	$	3,127,191