CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF CCA AND SUBSIDIARIES (Tables)

12 Months Ended

Dec. 31, 2015

CONDENSED CONSOLIDATING BALANCE SHEET

CONDENSED CONSOLIDATING BALANCE SHEET

As of December 31, 2015

(in thousands)

ASSETS	Parent		Combined Subsidiary Guarantors		Consolidating Adjustments and Other			Total Consolidated Amounts
Cash and cash equivalents	$	15,666	$	49,625	$	—		$	65,291
Restricted cash		637		240		—			877
Accounts receivable, net of allowance		300,632		159,286		(225,462	)		234,456
Prepaid expenses and other current assets		3,760		43,706		(6,032	)		41,434
Total current assets		320,695		252,857		(231,494	)		342,058
Property and equipment, net		2,526,278		356,782		—			2,883,060
Restricted cash		131		—		—			131
Investment in direct financing lease		684		—		—			684
Goodwill		20,402		15,155		—			35,557
Non-current deferred tax assets		—		10,217		(393	)		9,824
Other assets		241,510		57,120		(213,926	)		84,704
Total assets	$	3,109,700	$	692,131	$	(445,813	)	$	3,356,018
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued expenses	$	191,600	$	357,569	$	(231,494	)	$	317,675
Income taxes payable		—		1,920		—			1,920
Current portion of long-term debt		5,000		—		—			5,000
Total current liabilities		196,600		359,489		(231,494	)		324,595
Long-term debt, net of current portion		1,448,316		113,761		(115,000	)		1,447,077
Non-current deferred tax liabilities		393		—		(393	)		—
Deferred revenue		—		63,289		—			63,289
Other liabilities		1,643		56,666		—			58,309
Total liabilities		1,646,952		593,205		(346,887	)		1,893,270
Total stockholders’ equity		1,462,748		98,926		(98,926	)		1,462,748
Total liabilities and stockholders’ equity	$	3,109,700	$	692,131	$	(445,813	)	$	3,356,018

CONDENSED CONSOLIDATING BALANCE SHEET

As of December 31, 2014

(in thousands)

ASSETS	Parent		Combined Subsidiary Guarantors		Consolidating Adjustments and Other			Total Consolidated Amounts
Cash and cash equivalents	$	12,337	$	62,056	$	—		$	74,393
Accounts receivable, net of allowance		167,626		178,911		(97,949	)		248,588
Prepaid expenses and other current assets		17,060		34,705		(21,990	)		29,775
Total current assets		197,023		275,672		(119,939	)		352,756
Property and equipment, net		2,459,053		199,575		—			2,658,628
Restricted cash		1,267		1,591		—			2,858
Investment in direct financing lease		3,223		—		—			3,223
Goodwill		—		16,110		—			16,110
Non-current deferred tax assets		—		16,019		(489	)		15,530
Other assets		233,607		45,584		(210,650	)		68,541
Total assets	$	2,894,173	$	554,551	$	(331,078	)	$	3,117,646
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued expenses	$	218,403	$	205,213	$	(106,050	)	$	317,566
Income taxes payable		195		1,173		—			1,368
Note payable to an affiliate		—		13,854		(13,854	)		—
Current liabilities of discontinued operations		—		54		—			54
Total current liabilities		218,598		220,294		(119,904	)		318,988
Long-term debt		1,191,917		113,538		(115,000	)		1,190,455
Non-current deferred tax liabilities		490		—		(490	)		—
Deferred revenue		—		87,227		—			87,227
Other liabilities		1,668		37,808		—			39,476
Total liabilities		1,412,673		458,867		(235,394	)		1,636,146
Total stockholders’ equity		1,481,500		95,684		(95,684	)		1,481,500
Total liabilities and stockholders’ equity	$	2,894,173	$	554,551	$	(331,078	)	$	3,117,646

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the year ended December 31, 2015

(in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	1,184,878		$	1,469,105		$	(860,896	)	$	1,793,087
EXPENSES:
Operating		889,203			1,227,821			(860,896	)		1,256,128
General and administrative		33,248			70,688			—			103,936
Depreciation and amortization		82,745			68,769			—			151,514
Asset impairments		—			955			—			955
		1,005,196			1,368,233			(860,896	)		1,512,533
OPERATING INCOME		179,682			100,872			—			280,554
OTHER (INCOME) EXPENSE:
Interest expense, net		35,919			13,777			—			49,696
Expenses associated with debt refinancing transactions		701			—			—			701
Other (income) expense		232			(414	)		124			(58	)
		36,852			13,363			124			50,339
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		142,830			87,509			(124	)		230,215
Income tax expense		(1,541	)		(6,820	)		—			(8,361	)
INCOME FROM CONTINUING OPERATIONS		141,289			80,689			(124	)		221,854
Income from equity in subsidiaries		80,565			—			(80,565	)		—
NET INCOME	$	221,854		$	80,689		$	(80,689	)	$	221,854

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the year ended December 31, 2014

(in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	1,250,199		$	1,268,654		$	(871,986	)	$	1,646,867
EXPENSES:
Operating		896,470			1,131,651			(871,986	)		1,156,135
General and administrative		33,508			72,921			—			106,429
Depreciation and amortization		80,820			33,105			—			113,925
Asset impairments		29,915			167			—			30,082
		1,040,713			1,237,844			(871,986	)		1,406,571
OPERATING INCOME		209,486			30,810			—			240,296
OTHER (INCOME) EXPENSE:
Interest expense, net		35,138			4,397			—			39,535
Other (income) expense		302			(786	)		(720	)		(1,204	)
		35,440			3,611			(720	)		38,331
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		174,046			27,199			720			201,965
Income tax expense		(552	)		(6,391	)		—			(6,943	)
INCOME FROM CONTINUING OPERATIONS		173,494			20,808			720			195,022
Income from equity in subsidiaries		21,528			—			(21,528	)		—
NET INCOME	$	195,022		$	20,808		$	(20,808	)	$	195,022

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the year ended December 31, 2013

(in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	1,268,763		$	1,351,695		$	(926,161	)	$	1,694,297
EXPENSES:
Operating		945,750			1,200,762			(926,161	)		1,220,351
General and administrative		31,290			72,300			—			103,590
Depreciation and amortization		76,112			36,580			—			112,692
Asset impairments		—			6,513			—			6,513
		1,053,152			1,316,155			(926,161	)		1,443,146
OPERATING INCOME		215,611			35,540			—			251,151
OTHER (INCOME) EXPENSE:
Interest expense, net		38,319			6,807			—			45,126
Expenses associated with debt refinancing transactions		28,563			7,965			—			36,528
Other (income) expense		(45	)		23			(78	)		(100	)
		66,837			14,795			(78	)		81,554
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		148,774			20,745			78			169,597
Income tax benefit (expense)		143,590			(8,595	)		—			134,995
INCOME FROM CONTINUING OPERATIONS		292,364			12,150			78			304,592
Income from equity in subsidiaries		8,471			—			(8,471	)		—
Loss from discontinued operations, net of taxes		—			(3,757	)		—			(3,757	)
NET INCOME	$	300,835		$	8,393		$	(8,393	)	$	300,835

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the year ended December 31, 2015

(in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments And Other			Total Consolidated Amounts
Net cash provided by operating activities	$	102,371		$	297,427		$	—		$	399,798
Net cash used in investing activities		(93,891	)		(212,215	)		(103,175	)		(409,281	)
Net cash provided by (used in) financing activities		(5,151	)		(97,643	)		103,175			381
Net (decrease) increase in cash and cash equivalents		3,329			(12,431	)		—			(9,102	)
CASH AND CASH EQUIVALENTS, beginning of year		12,337			62,056			—			74,393
CASH AND CASH EQUIVALENTS, end of year	$	15,666		$	49,625		$	—		$	65,291

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the year ended December 31, 2014

(in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments And Other			Total Consolidated Amounts
Net cash provided by operating activities	$	296,087		$	127,494		$	—		$	423,581
Net cash used in investing activities		(73,404	)		(102,337	)		(21,146	)		(196,887	)
Net cash used in financing activities		(241,993	)		(9,373	)		21,146			(230,220	)
Net (decrease) increase in cash and cash equivalents		(19,310	)		15,784			—			(3,526	)
CASH AND CASH EQUIVALENTS, beginning of year		31,647			46,272			—			77,919
CASH AND CASH EQUIVALENTS, end of year	$	12,337		$	62,056		$	—		$	74,393

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the year ended December 31, 2013

(in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments And Other			Total Consolidated Amounts
Net cash provided by operating activities	$	211,247		$	158,257		$	—		$	369,504
Net cash used in investing activities		(83,895	)		(56,617	)		15,000			(125,512	)
Net cash used in financing activities		(95,705	)		(118,265	)		(15,000	)		(228,970	)
Net increase (decrease) in cash and cash equivalents		31,647			(16,625	)		—			15,022
CASH AND CASH EQUIVALENTS, beginning of year		—			62,897			—			62,897
CASH AND CASH EQUIVALENTS, end of year	$	31,647		$	46,272		$	—		$	77,919