SEGMENT REPORTING

9 Months Ended

Sep. 30, 2016

SEGMENT REPORTING

12. SEGMENT REPORTING

As of September 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 nine months ended September 30, 2016 and 2015 (in thousands):

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2016			2015			2016			2015
Revenue:
Owned and managed	$	411,614		$	395,587		$	1,202,166		$	1,155,604
Managed-only		52,440			54,750			153,616			161,408
Total management revenue		464,054			450,337			1,355,782			1,317,012
Operating expenses:
Owned and managed		272,970			270,221			802,642			777,940
Managed-only		47,232			50,364			136,541			147,073
Total operating expenses		320,202			320,585			939,183			925,013
Facility net operating income:
Owned and managed		138,644			125,366			399,524			377,664
Managed-only		5,208			4,386			17,075			14,335
Total facility net operating income		143,852			129,752			416,599			391,999
Other revenue (expense):
Rental and other revenue		10,881			9,620			29,869			28,240
Other operating expense		(6,147	)		(5,915	)		(17,530	)		(20,184	)
General and administrative		(27,699	)		(26,791	)		(81,543	)		(76,770	)
Depreciation and amortization		(42,924	)		(41,230	)		(127,328	)		(108,315	)
Restructuring charges		(4,010	)		—			(4,010	)		—
Asset impairments		—			—			—			(955	)
Operating income	$	73,953		$	65,436		$	216,057		$	214,015

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

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2016		2015		2016		2015
Capital expenditures:
Owned and managed	$	17,687	$	41,775	$	88,418	$	195,136
Managed-only		1,793		1,074		3,134		2,973
Corporate and other		3,518		15,809		15,727		25,409
Total capital expenditures	$	22,998	$	58,658	$	107,279	$	223,518

The total assets are as follows (in thousands):

	September 30, 2016		December 31, 2015
Assets:
Owned and managed	$	2,850,434	$	2,966,762
Managed-only		62,693		54,491
Corporate and other		372,385		334,765
Total assets	$	3,285,512	$	3,356,018