SEGMENT REPORTING

6 Months Ended

Jun. 30, 2015

SEGMENT REPORTING

10. SEGMENT REPORTING

As of June 30, 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 and six months ended June 30, 2015 and 2014 (in thousands):

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2015			2014			2015			2014
Revenue:
Owned and managed	$	396,053		$	340,024		$	760,017		$	674,936
Managed-only		53,714			60,328			106,658			124,331
Total management revenue		449,767			400,352			866,675			799,267
Operating expenses:
Owned and managed		263,419			227,679			507,719			455,327
Managed-only		48,700			53,836			96,709			112,281
Total operating expenses		312,119			281,515			604,428			567,608
Facility net operating income:
Owned and managed		132,634			112,345			252,298			219,609
Managed-only		5,014			6,492			9,949			12,050
Total facility net operating income		137,648			118,837			262,247			231,659
Other revenue (expense):
Rental and other revenue		9,528			10,342			18,620			15,649
Other operating expense		(5,916	)		(6,095	)		(14,269	)		(7,382	)
General and administrative		(23,107	)		(26,559	)		(49,979	)		(51,951	)
Depreciation and amortization		(38,400	)		(28,752	)		(67,085	)		(57,136	)
Asset impairments		—			(2,238	)		(955	)		(2,238	)
Operating income	$	79,753		$	65,535		$	148,579		$	128,601

The following table summarizes capital expenditures including accrued amounts for the three and six months ended June 30, 2015 and 2014 (amounts in thousands):

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2015		2014		2015		2014
Capital expenditures:
Owned and managed	$	70,527	$	23,851	$	153,361	$	49,471
Managed-only		1,168		767		1,899		1,399
Corporate and other		1,986		1,845		9,600		2,877
Total capital expenditures	$	73,681	$	26,463	$	164,860	$	53,747

The total assets are as follows (in thousands):

	June 30, 2015		December 31, 2014
Assets:
Owned and managed	$	2,820,603	$	2,745,905
Managed-only		65,267		68,146
Corporate and other		289,296		313,140
Total assets	$	3,175,166	$	3,127,191