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SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2014
SEGMENT REPORTING
11. SEGMENT REPORTING

As of June 30, 2014, CCA owned and managed 49 correctional and detention facilities, and managed 13 correctional and detention facilities it did not own. In addition, CCA owned three facilities that it leased to third-party operators. Management views CCA’s operating results in two reportable segments: (1) owned and managed correctional and detention facilities and (2) managed-only correctional and detention facilities. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies in the notes to consolidated financial statements included in CCA’s 2013 Form 10-K. 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. CCA measures the operating performance of each facility within the above two reportable segments, without differentiation, based on facility 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. Since each of CCA’s facilities within the two reportable segments exhibit similar economic characteristics, provide similar services to governmental agencies, and operate under a similar set of operating procedures and regulatory guidelines, the facilities within the identified segments have been aggregated and reported as one reportable segment.

 

The revenue and facility net operating income for the reportable segments and a reconciliation to CCA’s operating income is as follows for the three and six months ended June 30, 2014 and 2013 (in thousands):

 

     For the Three Months
Ended June 30,		     For the Six Months
Ended June 30,		  
     2014     2013     2014     2013  

Revenue:

         

Owned and managed

    $ 340,024      $ 348,608      $ 674,936      $ 690,101   

Managed-only

      60,328        75,310        124,331        149,622   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total management revenue

      400,352        423,918        799,267        839,723   
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating expenses:

         

Owned and managed

      227,679        234,648        455,327        463,903   

Managed-only

      53,836        64,812        112,281        129,554   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

      281,515        299,460        567,608        593,457   
  

 

 

    

 

 

    

 

 

    

 

 

  

Facility net operating income:

         

Owned and managed

      112,345        113,960        219,609        226,198   

Managed-only

      6,492        10,498        12,050        20,068   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total facility net operating income

      118,837        124,458        231,659        246,266   
  

 

 

    

 

 

    

 

 

    

 

 

  

Other revenue (expense):

         

Rental and other revenue

      10,342        1,087        15,649        2,005   

Other operating expense

      (6,095 )      (4,541 )      (7,382 )      (8,766 ) 

General and administrative

      (26,559 )      (25,360 )      (51,951 )      (56,592 ) 

Depreciation and amortization

      (28,752 )      (27,675 )      (57,136 )      (55,052 ) 

Asset impairments

      (2,238 )      —          (2,238 )      —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating income

    $ 65,535      $ 67,969      $ 128,601      $ 127,861   
  

 

 

    

 

 

    

 

 

    

 

 

  

The following table summarizes capital expenditures including accrued amounts for the reportable segments for the three and six months ended June 30, 2014 and 2013 (amounts in thousands):

 

     For the Three Months
Ended June 30,		     For the Six Months
Ended June 30,		  
     2014      2013     2014      2013  

Capital expenditures:

           

Owned and managed

    $ 23,851       $ 15,023      $ 49,471       $ 23,342   

Managed-only

      767         737        1,399         1,405   

Corporate and other

      1,845         1,361        2,877         2,891   

Discontinued operations

      —           (214 )      —           72   
  

 

 

     

 

 

    

 

 

     

 

 

  

Total capital expenditures

    $ 26,463       $ 16,907      $ 53,747       $ 27,710   
  

 

 

     

 

 

    

 

 

     

 

 

  

The assets for the reportable segments are as follows (amounts in thousands):

 

     June 30, 2014      December 31, 2013  

Assets:

      

Owned and managed

    $ 2,612,954       $ 2,715,719   

Managed-only

      70,207         81,551   

Corporate and other

      290,333         210,140   

Discontinued operations

      —           15   
  

 

 

     

 

 

  

Total assets

    $ 2,973,494       $ 3,007,425