SEGMENT REPORTING

9 Months Ended

Sep. 30, 2015

SEGMENT REPORTING

11. SEGMENT REPORTING

As of September 30, 2015, CCA owned and managed 47 correctional and detention facilities, and managed 11 correctional and detention facilities it did not own. In addition, CCA owned seven 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 nine months ended September 30, 2015 and 2014 (in thousands):

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2015			2014			2015			2014
Revenue:
Owned and managed	$	395,587		$	345,105		$	1,155,604		$	1,020,041
Managed-only		54,750			53,915			161,408			178,246
Total management revenue		450,337			399,020			1,317,012			1,198,287
Operating expenses:
Owned and managed		270,221			227,816			777,940			683,143
Managed-only		50,364			47,300			147,073			159,581
Total operating expenses		320,585			275,116			925,013			842,724
Facility net operating income:
Owned and managed		125,366			117,289			377,664			336,898
Managed-only		4,386			6,615			14,335			18,665
Total facility net operating income		129,752			123,904			391,999			355,563
Other revenue (expense):
Rental and other revenue		9,620			9,454			28,240			25,103
Other operating expense		(5,915	)		(7,596	)		(20,184	)		(14,978	)
General and administrative		(26,791	)		(27,635	)		(76,770	)		(79,586	)
Depreciation and amortization		(41,230	)		(28,277	)		(108,315	)		(85,413	)
Asset impairments		—			—			(955	)		(2,238	)
Operating income	$	65,436		$	69,850		$	214,015		$	198,451

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

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2015		2014		2015		2014
Capital expenditures:
Owned and managed	$	41,775	$	101,920	$	195,136	$	151,391
Managed-only		1,074		872		2,973		2,271
Corporate and other		15,809		4,995		25,409		7,872
Total capital expenditures	$	58,658	$	107,787	$	223,518	$	161,534

The total assets are as follows (in thousands):

	September 30, 2015		December 31, 2014
Assets:
Owned and managed	$	2,852,712	$	2,745,905
Managed-only		65,588		68,146
Corporate and other		332,332		313,140
Total assets	$	3,250,632	$	3,127,191