SEGMENT REPORTING

6 Months Ended

Jun. 30, 2016

SEGMENT REPORTING

11. SEGMENT REPORTING

As of June 30, 2016, CCA owned and managed 66 facilities, and managed 11 facilities it did not own. In addition, CCA owned eight 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 and six months ended June 30, 2016 and 2015 (in thousands):

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2016			2015			2016			2015
Revenue:
Owned and managed	$	401,931		$	396,053		$	790,552		$	760,017
Managed-only		51,346			53,714			101,176			106,658
Total management revenue		453,277			449,767			891,728			866,675
Operating expenses:
Owned and managed		266,249			263,419			529,672			507,719
Managed-only		44,218			48,700			89,309			96,709
Total operating expenses		310,467			312,119			618,981			604,428
Facility net operating income:
Owned and managed		135,682			132,634			260,880			252,298
Managed-only		7,128			5,014			11,867			9,949
Total facility net operating income		142,810			137,648			272,747			262,247
Other revenue (expense):
Rental and other revenue		10,054			9,528			18,988			18,620
Other operating expense		(5,979	)		(5,916	)		(11,383	)		(14,269	)
General and administrative		(27,364	)		(23,107	)		(53,844	)		(49,979	)
Depreciation and amortization		(42,345	)		(38,400	)		(84,404	)		(67,085	)
Asset impairments		—			—			—			(955	)
Operating income	$	77,176		$	79,753		$	142,104		$	148,579

The following table summarizes capital expenditures including accrued amounts for the three and six months ended June 30, 2016 and 2015 (amounts in thousands):

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2016		2015		2016		2015
Capital expenditures:
Owned and managed	$	59,453	$	70,527	$	70,731	$	153,361
Managed-only		686		1,168		1,341		1,899
Corporate and other		11,215		1,986		12,209		9,600
Total capital expenditures	$	71,354	$	73,681	$	84,281	$	164,860

The total assets are as follows (in thousands):

	June 30, 2016		December 31, 2015
Assets:
Owned and managed	$	2,867,330	$	2,966,762
Managed-only		64,176		54,491
Corporate and other		396,244		334,765
Total assets	$	3,327,750	$	3,356,018