SEGMENT REPORTING

12 Months Ended

Dec. 31, 2016

SEGMENT REPORTING

16.    SEGMENT REPORTING

As of December 31, 2016, CoreCivic owned and managed 66 facilities, and managed 11 facilities it did not own. In addition, CoreCivic owned eight facilities that it leased to third-party operators. Management views CoreCivic’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 CoreCivic. Managed-only facilities include the operating results of those facilities owned by a third party and managed by CoreCivic. The operating performance of the owned and managed and the managed-only facilities can be measured based on their net operating income. CoreCivic 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 CoreCivic’s operating income is as follows for the three years ended December 31, 2016, 2015, and 2014 (in thousands):

	For the Years Ended December 31,
	2016			2015			2014
Revenue:
Owned and managed	$	1,603,671		$	1,543,750		$	1,379,986
Managed-only		205,420			211,995			232,685
Total management revenue		1,809,091			1,755,745			1,612,671
Operating expenses:
Owned and managed		1,068,031			1,038,070			928,857
Managed-only		183,643			190,010			207,355
Total operating expenses		1,251,674			1,228,080			1,136,212
Facility net operating income
Owned and managed		535,640			505,680			451,129
Managed-only		21,777			21,985			25,330
Total facility net operating income		557,417			527,665			476,459
Other revenue (expense):
Rental and other revenue		40,694			37,342			34,196
Other operating expense		(23,912	)		(28,048	)		(19,923	)
General and administrative		(107,027	)		(103,936	)		(106,429	)
Depreciation and amortization		(166,746	)		(151,514	)		(113,925	)
Restructuring charges		(4,010	)		—			—
Asset impairments		—			(955	)		(30,082	)
Operating income	$	296,416		$	280,554		$	240,296

The following table summarizes capital expenditures including accrued amounts for the years ended December 31, 2016, 2015, and 2014 (in thousands):

	For the Years Ended December 31,
	2016		2015		2014
Capital expenditures:
Owned and managed	$	108,241	$	382,781	$	246,333
Managed-only		5,749		4,049		3,171
Corporate and other		20,541		28,611		13,056
Total capital expenditures	$	134,531	$	415,441	$	262,560

The total assets are as follows (in thousands):

	December 31,
	2016		2015
Assets:
Owned and managed	$	2,841,799	$	2,966,762
Managed-only		62,292		54,491
Corporate and other		367,513		334,765
Total assets	$	3,271,604	$	3,356,018