SEGMENT REPORTING

3 Months Ended

Mar. 31, 2016

SEGMENT REPORTING

11. SEGMENT REPORTING

As of March 31, 2016, CCA owned and managed 60 facilities, and managed 11 facilities it did not own. In addition, CCA owned six 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 facilities and (2) managed-only 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 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, 2016 and 2015 (in thousands):

	For the Three Months Ended March 31,
	2016			2015
Revenue:
Owned and managed	$	388,621		$	363,964
Managed-only		49,830			52,944
Total management revenue		438,451			416,908
Operating expenses:
Owned and managed		263,423			244,300
Managed-only		45,091			48,009
Total operating expenses		308,514			292,309
Facility net operating income
Owned and managed		125,198			119,664
Managed-only		4,739			4,935
Total facility net operating income		129,937			124,599
Other revenue (expense):
Rental and other revenue		8,934			9,092
Other operating expense		(5,404	)		(8,353	)
General and administrative expense		(26,480	)		(26,872	)
Depreciation and amortization		(42,059	)		(28,685	)
Asset impairments		—			(955	)
Operating income	$	64,928		$	68,826

The following table summarizes capital expenditures including accrued amounts for the three months ended March 31, 2016 and 2015 (in thousands):

	For the Three Months Ended March 31,
	2016		2015
Capital expenditures:
Owned and managed	$	11,278	$	82,834
Managed-only		655		731
Corporate and other		994		7,614
Total capital expenditures	$	12,927	$	91,179

The total assets are as follows (in thousands):

	March 31, 2016		December 31, 2015
Assets:
Owned and managed	$	2,914,687	$	2,966,762
Managed-only		56,462		54,491
Corporate and other		302,655		334,765
Total assets	$	3,273,804	$	3,356,018