Shareholders' Equity

6 Months Ended

Jul. 03, 2011

Shareholders' Equity [Abstract]

SHAREHOLDERS' EQUITY

3. SHAREHOLDERS’ EQUITY

The following table presents the changes in shareholders’ equity that are attributable to the Company’s shareholders and to noncontrolling interests (in thousands):

									Accumulated
					Additional				Other											Total
	Common shares				Paid-In		Retained		Comprehensive			Treasury shares					Noncontrolling			Shareholder’s
	Shares		Amount		Capital		Earnings		Income (Loss)			Shares		Amount			Interests			Equity
Balance January 2, 2011		64,432	$	845	$	718,489	$	428,545	$	10,071			20,074	$	(139,049	)	$	20,589		$	1,039,490
Stock option and restricted stock award transactions		626		6		2,203															2,209
Tax benefit related to equity compensation						392															392
Stock based compensation expense						3,598															3,598
Distribution to noncontrolling interest																		(4,012	)		(4,012	)
Comprehensive income (loss):
Net income (loss):								38,368										(825	)		37,543
Change in foreign currency translation, net										1,150								(10	)		1,140
Pension liability, net										19											19
Unrealized loss on derivative instruments, net										(357	)										(357	)
Total comprehensive income (loss)								38,368		812								(835	)		38,345
Balance July 3, 2011		65,058	$	851	$	724,682	$	466,913	$	10,883			20,074	$	(139,049	)	$	15,742		$	1,080,022

Noncontrolling interests

Noncontrolling interests in consolidated entities represent equity that other investors have contributed to MCF and the noncontrolling interest in SACM. Noncontrolling interests are adjusted for income and losses allocable to the other shareholders in these entities.

Upon acquisition of Cornell in August 2010, the Company assumed MCF as a variable interest entity and allocated a portion of the purchase price to the noncontrolling interest based on the estimated fair value of MCF as of August 12, 2010. The noncontrolling interest in MCF represents 100% of the equity in MCF which was contributed by its partners at inception in 2001. The Company includes the results of operations and financial position of MCF in its consolidated financial statements. MCF owns eleven facilities which it leases to the Company. In the twenty-six weeks ended July 3, 2011, there was a cash distribution to the partners of MCF of $4.0 million.

The Company includes the results of operations and financial position of SACM, its majority-owned subsidiary, in its consolidated financial statements. SACM was established in 2001 to operate correctional centers in South Africa. SACM currently provides security and other management services for the Kutama Sinthumule Correctional Centre in the Republic of South Africa under a 25-year management contract which commenced in February 2002. The Company’s and the second joint venture partner’s shares in the profits of SACM are 88.75% and 11.25%, respectively. There were no changes in the Company’s ownership percentage of the consolidated subsidiary during the twenty-six weeks ended July 3, 2011. The noncontrolling interest as of July 3, 2011 and January 2, 2011 is included in Total Shareholders’ Equity in the accompanying Consolidated Balance Sheets. There were no contributions from owners or distributions to owners in the twenty-six weeks ended July 3, 2011.