SEGMENT REPORTING

3 Months Ended

Mar. 31, 2017

SEGMENT REPORTING

10. SEGMENT REPORTING

As of March 31, 2017, CoreCivic owned and managed 66 facilities, and managed 11 facilities it did not own. In addition, CoreCivic owned nine 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 months ended March 31, 2017 and 2016 (in thousands):

	For the Three Months Ended March 31,
	2017			2016
Revenue:
Owned and managed	$	384,703		$	388,621
Managed-only		50,561			49,830
Total management revenue		435,264			438,451
Operating expenses:
Owned and managed		262,272			263,423
Managed-only		46,725			45,091
Total operating expenses		308,997			308,514
Facility net operating income
Owned and managed		122,431			125,198
Managed-only		3,836			4,739
Total facility net operating income		126,267			129,937
Other revenue (expense):
Rental and other revenue		10,420			8,934
Other operating expense		(6,306	)		(5,404	)
General and administrative expense		(24,826	)		(26,480	)
Depreciation and amortization		(36,257	)		(42,059	)
Asset impairments		(259	)		—
Operating income	$	69,039		$	64,928

The following table summarizes capital expenditures including accrued amounts for the three months ended March 31, 2017 and 2016 (in thousands):

	For the Three Months Ended March 31,
	2017		2016
Capital expenditures:
Owned and managed	$	16,840	$	11,278
Managed-only		780		655
Corporate and other		3,586		994
Total capital expenditures	$	21,206	$	12,927

The total assets are as follows (in thousands):

	March 31, 2017		December 31, 2016
Assets:
Owned and managed	$	2,817,584	$	2,841,799
Managed-only		55,287		62,292
Corporate and other		367,747		367,513
Total assets	$	3,240,618	$	3,271,604