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REAL ESTATE TRANSACTIONS | 3 Months Ended
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Mar. 31, 2016
REAL ESTATE TRANSACTIONS |
4. | REAL ESTATE TRANSACTIONS
Idle Facilities CCA has seven idled core facilities that are currently available and being actively marketed to other customers. CCA considers its core facilities to be those that were designed for adult secure correctional, detention, and residential reentry purposes. The following table summarizes each of the idled facilities and their respective carrying values, excluding equipment and other assets that could generally be transferred and used at other facilities CCA owns without significant cost (dollars in thousands):
|  |  | Design |  |  | Date |  |  | Net Carrying Values |
Facility |  | Capacity |  |  | Idled |  | March 31, 2016 |  |  | December 31, 2015 |
Prairie Correctional Facility |  |  | 1,600 |  |  | 2010 |  | $ | 17,956 |  |  | $ | 17,961 |
Huerfano County Correctional Center |  |  | 752 |  |  | 2010 |  |  | 18,089 |  |  |  | 18,276 |
Diamondback Correctional Facility |  |  | 2,160 |  |  | 2010 |  |  | 42,659 |  |  |  | 43,030 |
Otter Creek Correctional Center |  |  | 656 |  |  | 2012 |  |  | 23,212 |  |  |  | 23,270 |
Marion Adjustment Center |  |  | 826 |  |  | 2013 |  |  | 12,427 |  |  |  | 12,536 |
Lee Adjustment Center |  |  | 816 |  |  | 2015 |  |  | 10,715 |  |  |  | 10,840 |
North Fork Correctional Facility |  |  | 2,400 |  |  | 2015 |  |  | 74,189 |  |  |  | 74,805 |
|  |  | 9,210 |  |  |  |  | $ | 199,247 |  |  | $ | 200,718 |
From the date each of the aforementioned seven core facilities became idle, CCA incurred operating expenses of approximately $2.5 million and $1.8 million during the three months ended March 31, 2016 and 2015, respectively. CCA also has four idled non-core facilities with carrying values amounting to $5.1 million as of both March 31, 2016 and December 31, 2015. CCA considers the Shelby Training Center, Queensgate Correctional Facility, Mineral Wells Pre-Parole Transfer Facility, and Leo Chesney Correctional Center to be non-core facilities because they were designed for uses other than for adult secure correctional purposes. CCA considers the cancellation of a contract as an indicator of impairment and tested each of the aforementioned facilities for impairment when it was notified by the respective customers that they would no longer be utilizing such facility. Upon notification of cancellation by the respective customers, CCA concluded in each case that no impairment had occurred. CCA updates the impairment analyses on an annual basis for each of the idled facilities and evaluates on a quarterly basis market developments for the potential utilization of each of these facilities in order to identify events that may cause CCA to reconsider its most recent assumptions. As a result of CCA’s analyses, CCA determined each of the idled facilities to have recoverable values in excess of the corresponding carrying values. Activations Pursuant to an agreement with Trousdale County, Tennessee, CCA agreed to finance, design, construct, and operate a 2,552-bed facility to meet the responsibilities of a separate IGSA between Trousdale County and the state of Tennessee regarding correctional services. CCA invested approximately $144.0 million in the Trousdale Turner Correctional Center and construction was completed in the fourth quarter of 2015. In order to guarantee access to the beds at the facility, the IGSA with the state of Tennessee includes a minimum monthly payment plus a per diem payment for each inmate housed in the facility in excess of 90% of the design capacity, provided that during a twenty-six week ramp period the minimum payment is based on the greater of the number of inmates actually at the facility or 90% of the beds available pursuant to the ramp schedule. CCA began housing state of Tennessee inmates at the newly activated facility in January 2016. As of March 31, 2016, CCA housed approximately 1,200 inmates at the Trousdale Turner Correctional Center. In December 2015, CCA announced it was awarded a new contract from the Arizona Department of Corrections to house up to an additional 1,000 medium-security inmates at its 1,596-bed Red Rock Correctional Center in Arizona. In connection with the new contract, CCA is expanding its Red Rock facility to a design capacity of 2,024 beds and adding additional space for inmate reentry programming. Total cost of the expansion is estimated at approximately $35.0 million to $38.0 million, including $8.8 million invested through March 31, 2016. Construction is expected to be completed late in the fourth quarter of 2016, although CCA expects to begin receiving inmates under the new contract during the third quarter of 2016.

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- Definition The entire disclosure for real estate transactions including acquisitions, real estate closures and idle facilities, sales, construction of new facilities, activations, and other leasing transactions. + References No definition available. + Details
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