Shareholders' Equity

9 Months Ended

Oct. 02, 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):

	Common shares					Additional Paid-In			Retained		Accumulated Other Comprehensive			Treasury shares					Noncontrolling			Total 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		674			7		2,439																2,446
Tax benefit related to equity compensation							536																536
Stock based compensation expense							4,843																4,843
Purchase of treasury shares		(2,494	)												2,494		(49,987	)					(49,987	)
Other adjustments to Additional Paid-In Capital							(200	)															(200	)
Distribution to noncontrolling interest																				(4,012	)		(4,012	)
Comprehensive income (loss):
Net income (loss):										59,886										(1,050	)		58,836
Change in foreign currency translation, net												(5,608	)							(110	)		(5,718	)
Pension liability, net												28											28
Unrealized loss on derivative instruments, net												(1,029	)										(1,029	)
Total comprehensive income (loss)										59,886		(6,609	)							(1,160	)		52,117
Balance October 2, 2011		62,612		$	852	$	726,107		$	488,431	$	3,462			22,568	$	(189,036	)	$	15,417		$	1,045,233

Noncontrolling interests

Noncontrolling interests in consolidated entities represent equity that other investors have contributed to Municipal Correctional Finance, L.P. (“MCF”) and the noncontrolling interest in South African Custodial Management Pty. Limited (“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 thirty-nine weeks ended October 2, 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 thirty-nine weeks ended October 2, 2011. The noncontrolling interest as of October 2, 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 thirty-nine weeks ended October 2, 2011.