Document and Entity Information (USD $)	3 Months Ended
Document and Entity Information (USD $)	Mar. 31, 2011	May 03, 2011	Jun. 30, 2010
Document and Entity Information [Abstract]
Entity Registrant Name	CORRECTIONS CORP OF AMERICA
Entity Central Index Key	0001070985
Document Type	10-Q
Document Period End Date	Mar. 31, 2011
Amendment Flag	false
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 2,085,120,098
Entity Common Stock, Shares Outstanding		107,298,464

Consolidated Balance Sheets (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2011	Dec. 31, 2010
ASSETS
Cash and cash equivalents	$ 37,792	$ 25,505
Accounts receivable, net of allowance of $1,531 and $1,568, respectively	277,616	305,305
Deferred tax assets	10,920	14,132
Prepaid expenses and other current assets	13,934	31,196
Current assets of discontinued operations	2,135	2,155
Total current assets	342,397	378,293
Property and equipment, net	2,534,839	2,549,295
Restricted cash	6,758	6,756
Investment in direct financing lease	10,425	10,798
Goodwill	11,988	11,988
Other assets	25,622	26,092
Non-current assets of discontinued operations	0	6
Total assets	2,932,029	2,983,228
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses	184,796	203,796
Income taxes payable	9,903	476
Current liabilities of discontinued operations	1,392	1,583
Total current liabilities	196,091	205,855
Long-term debt	1,112,744	1,156,568
Deferred tax liabilities	121,477	118,245
Other liabilities	32,428	31,689
Total liabilities	1,462,740	1,512,357
Commitments and contingencies
Common stock - $0.01 par value; 300,000 shares authorized; 108,094 and 109,754 shares issued and outstanding at March 31, 2011 and December 31, 2010, respectively	1,081	1,098
Additional paid-in capital	1,312,796	1,354,691
Retained earnings	155,412	115,082
Total stockholders' equity	1,469,289	1,470,871
Total liabilities and stockholders' equity	$ 2,932,029	$ 2,983,228

Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2011	Dec. 31, 2010
ASSETS
Allowance for accounts receivable	$ 1,531	$ 1,568
LIABILITIES AND STOCKHOLDERS' EQUITY
Common stock par value	$ 0.01	$ 0.01
Common stock shares authorized	300,000	300,000
Common stock shares issued	108,094	109,754
Common stock shares outstanding	108,094	109,754

Consolidated Statements of Operations (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2011	Mar. 31, 2010
REVENUE:
Management and other	$ 427,523	$ 404,989
Rental	551	793
Total revenues	428,074	405,782
EXPENSES:
Operating	296,105	289,673
General and administrative	21,447	18,614
Depreciation and amortization	27,055	24,964
Total operating expenses	344,607	333,251
OPERATING INCOME	83,467	72,531
OTHER EXPENSE:
Interest expense, net	18,402	17,271
Other expense	71	72
Total non-operating income (expense)	18,473	17,343
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	64,994	55,188
Income tax expense	(24,664)	(21,016)
INCOME FROM CONTINUING OPERATIONS	40,330	34,172
Income from discontinued operations, net of taxes		734
NET INCOME	$ 40,330	$ 34,906
BASIC EARNINGS PER SHARE:
Income from continuing operations	$ 0.37	$ 0.29
Income from discontinued operations, net of taxes		$ 0.01
Net income	$ 0.37	$ 0.30
DILUTED EARNINGS PER SHARE:
Income from continuing operations	$ 0.37	$ 0.29
Income from discontinued operations, net of taxes		$ 0.01
Net income	$ 0.37	$ 0.30

Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2011	Mar. 31, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 40,330	$ 34,906
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	27,055	25,198
Amortization of debt issuance costs and other non-cash interest	1,066	1,074
Deferred income taxes	6,046	3,137
Income tax benefit of equity compensation	(860)	(1,206)
Non-cash equity compensation	2,715	2,260
Other expenses and non-cash items	798	142
Changes in assets and liabilities, net:
Accounts receivable, prepaid expenses and other assets	44,959	2,385
Accounts payable, accrued expenses and other liabilities	(21,286)	(2,867)
Income taxes payable	10,130	7,112
Net cash provided by operating activities	110,953	72,141
CASH FLOWS FROM INVESTING ACTIVITIES:
Expenditures for facility development and expansions	(6,014)	(36,618)
Expenditures for other capital improvements	(6,728)	(6,469)
Proceeds from sale of assets	181	25
Increase in other assets	(228)	(205)
Payments received on direct financing leases and notes receivable	330	293
Net cash used in investing activities	(12,459)	(42,974)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of debt	29,421	5,000
Principal repayments of debt	(73,589)	(5,000)
Income tax benefit of equity compensation	860	1,206
Purchase and retirement of common stock	(43,678)	(31,040)
Proceeds from exercise of stock options	775	1,925
Net cash used in financing activities	(86,211)	(27,909)
NET INCREASE IN CASH AND CASH EQUIVALENTS	12,283	1,258
CASH AND CASH EQUIVALENTS, beginning of period	25,509	45,908
CASH AND CASH EQUIVALENTS, end of period	37,792	47,166
Cash paid during the period for:
Interest (net of amounts capitalized of $106 and $1,326 in 2011 and 2010, respectively)	17,460	16,188
Income taxes paid (refund)	$ (4)	$ 52

Consolidated Statements of Stockholders' Equity (Unaudited) (USD $) In Thousands, unless otherwise specified	Total	Common Stock	Additional Paid-in Capital	Retained Earnings
Beginning Balance at Dec. 31, 2009	$ 1,442,546	$ 1,160	$ 1,483,497	$ (42,111)
Beginning balance, shares at Dec. 31, 2009		115,962
Comprehensive income:
Net income	34,906			34,906
Total comprehensive income	34,906			34,906
Issuance of common stock	12		12
Issuance of common stock, shares		1
Retirement of common stock	(34,432)	(17)	(34,415)
Retirement of common stock, shares		(1,681)
Amortization of restricted stock compensation, net of forfeitures	1,336		1,336
Amortization of restricted stock compensation, net of forfeitures, shares		(8)
Income tax benefit of equity compensation	684		684
Restricted stock grant		2	(2)
Restricted stock grant, shares		176
Stock option compensation expense, net of forfeitures	912		912
Stock options exercised	1,925	2	1,923
Stock options exercised, shares		213
Ending Balance at Mar. 31, 2010	1,447,889	1,147	1,453,947	(7,205)
Ending Balance, shares at Mar. 31, 2010		114,663
Beginning Balance at Dec. 31, 2010	1,470,871	1,098	1,354,691	115,082
Beginning balance, shares at Dec. 31, 2010		109,754
Comprehensive income:
Net income	40,330			40,330
Total comprehensive income	40,330			40,330
Issuance of common stock	12		12
Issuance of common stock, shares		1
Retirement of common stock	(46,153)	(19)	(46,134)
Retirement of common stock, shares		(1,904)
Amortization of restricted stock compensation, net of forfeitures	1,531	(1)	1,532
Amortization of restricted stock compensation, net of forfeitures, shares		(9)
Income tax benefit of equity compensation	751		751
Restricted stock grant		2	(2)
Restricted stock grant, shares		166
Stock option compensation expense, net of forfeitures	1,172		1,172
Stock options exercised	775	1	774
Stock options exercised, shares		86
Ending Balance at Mar. 31, 2011	$ 1,469,289	$ 1,081	$ 1,312,796	$ 155,412
Ending Balance, shares at Mar. 31, 2011		108,094

Organization and Operations

3 Months Ended

Mar. 31, 2011

Organization and Operations [Abstract]

ORGANIZATION AND OPERATIONS

ORGANIZATION AND OPERATIONS

As of March 31, 2011, Corrections Corporation of America, a Maryland corporation (together with its subsidiaries, the “Company” or “CCA”), owned 47 correctional and detention facilities, two of which are leased to other operators. As of March 31, 2011, CCA operated 66 facilities located in 20 states and the District of Columbia. CCA is also constructing an additional 1,124-bed correctional facility under a contract awarded by the Georgia Department of Corrections in Millen, Georgia that is currently expected to be completed during the first quarter of 2012.

CCA specializes in owning, operating and managing prisons and other correctional facilities and providing inmate residential and prisoner transportation services for governmental agencies. In addition to providing the fundamental residential services relating to inmates, CCA’s facilities offer a variety of rehabilitation and educational programs, including basic education, religious services, life skills and employment training, and substance abuse treatment. These services are intended to reduce recidivism and to prepare inmates for their successful re-entry into society upon their release. CCA also provides health care (including medical, dental and psychiatric services), food services, and work and recreational programs.

Basis of Presentation and Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2011

Basis of Presentation and Summary of Significant Accounting Policies [Abstract]

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying unaudited interim consolidated financial statements have been prepared by the Company and, in the opinion of management, reflect all normal recurring adjustments necessary for a fair presentation of results for the unaudited interim periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted. The results of operations for the interim period are not necessarily indicative of the results to be obtained for the full fiscal year. Reference is made to the audited financial statements of CCA included in its Annual Report on Form 10-K as of and for the year ended December 31, 2010 (the “2010 Form 10-K”) with respect to certain significant accounting and financial reporting policies as well as other pertinent information of the Company.

Fair Value of Financial Instruments

To meet the reporting requirements of Accounting Standard Codification (“ASC”) 825 regarding fair value of financial instruments, CCA calculates the estimated fair value of financial instruments using quoted market prices of similar instruments or discounted cash flow techniques. At March 31, 2011 and December 31, 2010, there were no material differences between the carrying amounts and the estimated fair values of CCA’s financial instruments, other than as follows (in thousands):


	March 31, 2011						December 31, 2010
	Carrying						Carrying
	Amount			Fair Value			Amount			Fair Value
Investment in direct financing lease	$	11,854		$	13,922		$	12,185		$	14,439
Note receivable from APM	$	5,058		$	8,201		$	4,880		$	7,970
Debt	$	(1,112,744	)	$	(1,172,530	)	$	(1,156,568	)	$	(1,206,347	)

Goodwill

3 Months Ended

Mar. 31, 2011

Goodwill [Abstract]

GOODWILL

GOODWILL

ASC 350, “Intangibles-Goodwill and Other”, establishes accounting and reporting requirements for goodwill and other intangible assets. Goodwill was $12.0 million as of March 31, 2011 and December 31, 2010 and was associated with facilities CCA manages but does not own. This goodwill was established in connection with the acquisitions of two service companies during 2000.

Facility Activation, Developments, and Closures

3 Months Ended

Mar. 31, 2011

Facility Activation, Developments, and Closures [Abstract]

FACILITY ACTIVATION, DEVELOPMENTS, AND CLOSURES

FACILITY ACTIVATION, DEVELOPMENTS, AND CLOSURES

In February 2008, CCA announced its intention to construct a new correctional facility in Trousdale County, Tennessee. However, during the first quarter of 2009 CCA temporarily suspended the construction of this facility until there is greater clarity around the timing of future bed absorption by its customers. CCA will continue to monitor its customers’ needs, and could promptly resume construction of the facility. As of March 31, 2011, CCA has capitalized $27.8 million related to the Trousdale facility, a majority of which consists of pre-fabricated concrete cells that are generally transferable to other potential CCA development projects.

During December 2009, CCA announced its decision to idle its 1,600-bed Prairie Correctional Facility in Minnesota due to low inmate populations at the facility. During 2009, the Prairie facility housed offenders from the states of Minnesota and Washington. However, due to excess capacity in the states’ systems, both states reduced the populations held at Prairie throughout 2009. During January 2010, the final transfer of offenders from the Prairie facility to the state of Minnesota was completed. The state of Washington has also removed all of its offenders from the Prairie facility.

On January 15, 2010, the Arizona Governor and Legislature proposed budgets that would phase out the utilization of private out-of-state beds due to in-state capacity coming on-line and severe budget conditions. During January 2010, the Arizona Department of Corrections notified CCA that it elected not to renew the contract at CCA’s 752-bed Huerfano County Correctional Center upon expiration of the contract in March 2010. As a result, the Arizona Department of Corrections removed all of the inmates from the Huerfano facility during March 2010. Further, during March 2010, the Arizona Department of Corrections notified CCA that it elected not to renew its contract at CCA’s 2,160-bed Diamondback Correctional Facility in Oklahoma, which expired on May 1, 2010. The Arizona Department of Corrections completed the transfer of offenders from the Diamondback facility during May 2010. As a result, CCA has idled the Huerfano and Diamondback facilities. The Diamondback facility previously housed inmates from the states of Wisconsin, Hawaii, and Oklahoma, while the Huerfano facility recently housed inmates from the state of Colorado. CCA continues to manage inmate populations from the states of Oklahoma, Hawaii, and Colorado at other facilities it owns and operates.

CCA is currently pursuing new management contracts to take advantage of the beds that have become available at the Huerfano and Diamondback facilities but can provide no assurance that it will be successful in doing so. Additionally, CCA owns the Queensgate Correctional Facility in Ohio and Shelby Training Center in Tennessee that were both idled in 2008 and are currently available to potential customers. The carrying values of these four idle facilities totaled $84.0 million and $84.8 million as of March 31, 2011 and December 31, 2010, respectively, excluding equipment and other assets that could generally be transferred and used at other facilities CCA owns without significant cost.

During November 2010, the State of California Department of Corrections and Rehabilitation (the “CDCR”) extended their existing agreement with CCA to manage up to 9,588 inmates at four of the five facilities CCA currently manages for them, and notified CCA of its Intent to Award an additional contract to manage up to 3,256 offenders at CCA’s Crowley County Correctional Facility and its currently idle Prairie Correctional Facility. Between the contract extension and the Intent to Award, CCA could have the opportunity to house a total of up to 12,844 inmates for the CDCR in six of CCA’s facilities. The extension, which is subject to appropriations by the state of California’s legislature, begins July 1, 2011 and expires June 30, 2013. The Intent to Award is subject to final negotiations and, if executed, is not currently expected to result in inmate populations until the second half of 2012.

In January 2011, the newly elected Governor of California proposed a state budget which calls for a significant reallocation of responsibilities between the state government and local jurisdictions, including transferring some number of inmates from state custody to the custody of cities and counties. The Governor has approved the realignment of services contingent upon identifying a funding source. At this time CCA cannot reasonably assess the opportunities or challenges that could develop if the realignment plan is implemented. However, if the realignment plan is implemented, there could ultimately be a reduction in demand for CCA’s services because a large number of inmates may be transferred to city and county government facilities, and the state may then seek the return of inmates CCA currently houses to space that is freed up in California state facilities. Approximately 14% of CCA’s management revenue for the first quarter of 2011 was generated from the CDCR. Negotiations for the contract under the Intent to Award have been suspended pending the outcome of the State’s proposed budget for fiscal year 2012.

In September 2010, CCA announced it was awarded a contract by the Georgia Department of Corrections to manage up to 1,150 male inmates in the Jenkins Correctional Center, which will be constructed, owned and operated by CCA in Millen, Georgia. CCA commenced development of the new Jenkins Correctional Center during the third quarter of 2010, with an estimated total construction cost of approximately $57.0 million. Construction is expected to be completed during the first quarter of 2012. The contract has an initial one-year base term with 24 one-year renewal options. Additionally, the contract provides for a population guarantee of 90% following a 120-day ramp-up period.

Discontinued Operations

3 Months Ended

Mar. 31, 2011

Discontinued Operations [Abstract]

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

In April 2010, CCA announced that pursuant to a re-bid of the management contract at the 1,520-bed Gadsden Correctional Institution in Quincy, Florida, the Florida DMS indicated its intent to award the management of the Gadsden facility to another operator. CCA transitioned management of the Gadsden facility during the third quarter of 2010 to the new operator. Additionally, in April 2010, CCA also provided notice to Hernando County, Florida of its intent to terminate the management contract at the 876-bed Hernando County Jail during the third quarter of 2010. Accordingly, the results of operations, net of taxes, and the assets and liabilities of these two facilities have been reported as discontinued operations upon termination of operations in the third quarter of 2010 for all periods presented.

The following table summarizes the results of operations for these facilities for the three months ended March 31, 2011 and 2010 (in thousands):


	For the Three Months Ended
	March 31,
	2011		2010

REVENUE:
Managed-only	$	—	$	9,165

		—		9,165


EXPENSES:
Managed-only		—		7,746
Depreciation and amortization		—		234

		—		7,980


INCOME BEFORE INCOME TAXES		—		1,185

Income tax expense		—		(451	)


INCOME FROM DISCONTINUED OPERATIONS, NET OF TAXES	$	—	$	734

The assets and liabilities of the discontinued operations presented in the accompanying consolidated balance sheets are as follows (in thousands):


	March 31, 2011		December 31, 2010

ASSETS
Cash and cash equivalents	$	—	$	4
Accounts receivable		1,821		1,821
Prepaid expenses and other current assets		314		330

Total current assets		2,135		2,155


Other assets		—		6

Total assets	$	2,135	$	2,161


LIABILITIES

Accounts payable and accrued expenses	$	1,392	$	1,583

Total current liabilities	$	1,392	$	1,583

Debt

3 Months Ended

Mar. 31, 2011

Debt [Abstract]

DEBT

DEBT

Debt outstanding as of March 31, 2011 and December 31, 2010 consists of the following (in thousands):


	March 31,		December 31,
	2011		2010
Revolving Credit Facility, principal due at maturity in December 2012; interest payable periodically at variable interest rates. The weighted average rate at March 31, 2011 and December 31, 2010 was 1.0% and 1.5%, respectively	$	133,798	$	177,966

6.25% Senior Notes, principal due at maturity in March 2013; interest payable semi-annually in March and September at 6.25%		375,000		375,000

6.75% Senior Notes, principal due at maturity in January 2014; interest payable semi-annually in January and July at 6.75%		150,000		150,000

7.75% Senior Notes, principal due at maturity in June 2017; interest payable semi-annually in June and December at 7.75%. These notes were issued with a $13.4 million discount, of which $11.1 million and $11.4 million was unamortized at March 31, 2011 and December 31, 2010, respectively		453,946		453,602


	$	1,112,744	$	1,156,568

Revolving Credit Facility. During December 2007, CCA entered into a $450.0 million senior secured revolving credit facility (the “Revolving Credit Facility”) arranged by Banc of America Securities LLC and Wachovia Capital Markets, LLC. The Revolving Credit Facility is utilized to fund expansion and development projects, the stock repurchase program as further described in Note 7, as well as for working capital, capital expenditures, and general corporate purposes.

The Revolving Credit Facility has an aggregate principal capacity of $450.0 million and matures in December 2012. At CCA’s option, interest on outstanding borrowings will be based on either a base rate plus a margin ranging from 0.00% to 0.50% or a London Interbank Offered Rate (“LIBOR”) plus a margin ranging from 0.75% to 1.50%. The applicable margins are subject to adjustments based on CCA’s leverage ratio. Based on CCA’s current leverage ratio, loans under the Revolving Credit Facility currently bear interest at the base rate plus a margin of 0.00% or at LIBOR plus a margin of 0.75%, and a commitment fee equal to 0.15% of the unfunded balance. As of March 31, 2011, CCA had $133.8 million of outstanding borrowings under the Revolving Credit Facility as well as $29.7 million in letters of credit outstanding.

Lehman Brothers Commercial Bank (“Lehman”), which held a $15.0 million share in the Revolving Credit Facility, was a defaulting lender under the terms of the credit agreement. During March 2011, an existing lender under the Revolving Credit Facility purchased Lehman’s commitment, thereby replenishing the $15.0 million availability under the Revolving Credit Facility.

The Revolving Credit Facility has a $20.0 million sublimit for swing line loans which enables CCA to borrow from Banc of America Securities LLC without advance notice, at the base rate. The Revolving Credit Facility also has a $100.0 million sublimit for the issuance of standby letters of credit. CCA has an option to increase the availability under the Revolving Credit Facility by up to $300.0 million (consisting of revolving credit, term loans, or a combination of the two) subject to, among other things, the receipt of commitments for the increased amount.

The Revolving Credit Facility is secured by a pledge of all of the capital stock of CCA’s domestic subsidiaries, 65% of the capital stock of CCA’s foreign subsidiaries, all of CCA’s accounts receivable, and all of CCA’s deposit accounts.

The Revolving Credit Facility requires CCA to meet certain financial covenants, including, without limitation, a maximum total leverage ratio, a maximum secured leverage ratio, and a minimum interest coverage ratio. As of March 31, 2011, CCA was in compliance with all such covenants. In addition, the Revolving Credit Facility contains certain covenants which, among other things, limits both the incurrence of additional indebtedness, investments, payment of dividends, transactions with affiliates, asset sales, acquisitions, capital expenditures, mergers and consolidations, prepayments and modifications of other indebtedness, liens and encumbrances and other matters customarily restricted in such agreements. In addition, the Revolving Credit Facility is subject to certain cross-default provisions with terms of CCA’s other indebtedness.

$375 Million 6.25% Senior Notes. Interest on the $375.0 million aggregate principal amount of CCA’s 6.25% unsecured senior notes issued in March 2005 (the “6.25% Senior Notes”) accrues at the stated rate and is payable on March 15 and September 15 of each year. The 6.25% Senior Notes are scheduled to mature on March 15, 2013. CCA may redeem all or a portion of the notes at par under terms of the indenture governing the 6.25% Senior Notes.

$150 Million 6.75% Senior Notes. Interest on the $150.0 million aggregate principal amount of CCA’s 6.75% unsecured senior notes issued in January 2006 (the “6.75% Senior Notes”) accrues at the stated rate and is payable on January 31 and July 31 of each year. The 6.75% Senior Notes are scheduled to mature on January 31, 2014. CCA may redeem all or a portion of the notes at redemption prices set forth in the indenture governing the 6.75% Senior Notes.

$465 Million 7.75% Senior Notes. Interest on the $465.0 million aggregate principal amount of CCA’s 7.75% unsecured senior notes issued in June 2009 (the “7.75% Senior Notes”) accrues at the stated rate and is payable on June 1 and December 1 of each year. The 7.75% Senior Notes are scheduled to mature on June 1, 2017. The 7.75% Senior Notes were issued at a price of 97.116%, resulting in a yield to maturity of 8.25%. At any time on or before June 1, 2012, CCA may redeem up to 35% of the notes with the net proceeds of certain equity offerings, as long as 65% of the aggregate principal amount of the notes remains outstanding after the redemption. CCA may redeem all or a portion of the notes on or after June 1, 2013. Redemption prices are set forth in the indenture governing the 7.75% Senior Notes.

Stockholders' Equity

3 Months Ended

Mar. 31, 2011

Stockholders' Equity [Abstract]

STOCKHOLDERS' EQUITY

7. STOCKHOLDERS’ EQUITY

		Stock Repurchase Program

		In February 2010, the Company’s Board of Directors approved a stock repurchase program to purchase up to $250.0 million of CCA’s common stock through June 30, 2011. Through March 31, 2011, CCA completed the purchase of 9.0 million shares at a cost of $189.6 million. CCA has utilized cash on hand, net cash provided by operations, and borrowings available under the Revolving Credit Facility to fund the repurchases.

		Restricted Stock

During the first quarter of 2011, CCA issued 234,000 shares of restricted common stock and common stock units to certain of its employees, with an aggregate fair value of $5.7 million, including 196,000 restricted shares or units to employees whose compensation is charged to general and administrative expense and 38,000 restricted shares to employees whose compensation is charged to operating expense. During 2010, CCA issued 446,000 shares of restricted common stock and common stock units to certain of its employees, with an aggregate fair value of $9.7 million, including 335,000 restricted shares or units to employees whose compensation is charged to general and administrative expense and 111,000 restricted shares to employees whose compensation is charged to operating expense.

CCA established performance-based vesting conditions on the shares of restricted common stock and common stock units awarded to its officers and executive officers. Unless earlier vested under the terms of the agreements, shares or units issued to officers and executive officers are subject to vesting over a three-year period based upon the satisfaction of certain performance criteria. No more than one-third of such shares or units may vest in the first performance period; however, the performance criteria are cumulative for the three-year period. Unless earlier vested under the terms of the agreements, the shares or units of restricted stock issued to the other employees vest after three years of continuous service.

During the three months ended March 31, 2011, the Company expensed $1.5 million, net of forfeitures, relating to restricted common stock and common stock units ($0.3 million of which was recorded in operating expenses and $1.2 million of which was recorded in general and administrative expenses). During the three months ended March 31, 2010, the Company expensed $1.3 million, net of forfeitures, relating to restricted common stock and common stock units ($0.2 million of which was recorded in operating expenses and $1.1 million of which was recorded in general and administrative expenses). As of March 31, 2011, 767,000 shares of restricted common stock and common stock units remained outstanding and subject to vesting.

Stock Options

During the first quarter of 2011, CCA issued to its officers and executive officers options to purchase 495,000 shares of common stock with an aggregate fair value of $4.8 million, with an exercise price of $24.42 per share. During 2010, CCA issued to its officers, executive officers, and non-employee directors options to purchase 712,000 shares of common stock with an aggregate fair value of $5.5 million, with a weighted average exercise price of $20.68 per share. CCA estimates the fair value of stock options using the Black-Scholes option pricing model. Unless earlier vested under their terms, one third of the stock options issued to CCA’s executive officers vest on the anniversary of the grant date over a three-year period while one fourth of the stock options issued to CCA’s other officers vest on the anniversary of the grant date over a four-year period. Options granted to non-employee directors vest on the one-year anniversary of the grant date.

During the three months ended March 31, 2011 and 2010, CCA expensed $1.2 million and $0.9 million, respectively, net of forfeitures, relating to its outstanding stock options. As of March 31, 2011, options to purchase 3.9 million shares of common stock were outstanding with a weighted average exercise price of $18.12.

- Definition

Disclosures related to accounts comprising shareholders' equity, including other comprehensive income. Includes: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables; effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References+ Details

Earnings Per Share

3 Months Ended

Mar. 31, 2011

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. For CCA, diluted earnings per share is computed by dividing net income by the weighted average number of common shares after considering the additional dilution related to restricted stock-based compensation and stock options.

A reconciliation of the numerator and denominator of the basic earnings per share computation to the numerator and denominator of the diluted earnings per share computation is as follows (in thousands, except per share data):


	For the Three Months
	Ended March 31,
	2011		2010
NUMERATOR
Basic:
Income from continuing operations	$	40,330	$	34,172
Income from discontinued operations, net of taxes		—		734

Net income	$	40,330	$	34,906


Diluted:
Income from continuing operations	$	40,330	$	34,172
Income from discontinued operations, net of taxes		—		734

Diluted net income	$	40,330	$	34,906


DENOMINATOR
Basic:
Weighted average common shares outstanding		108,688		115,359


Diluted:
Weighted average common shares outstanding		108,688		115,359
Effect of dilutive securities:
Stock options		693		839
Restricted stock-based compensation		162		156

Weighted average shares and assumed conversions		109,543		116,354


BASIC EARNINGS PER SHARE:
Income from continuing operations	$	0.37	$	0.29
Income from discontinued operations, net of taxes		—		0.01

Net income	$	0.37	$	0.30


DILUTED EARNINGS PER SHARE:
Income from continuing operations	$	0.37	$	0.29
Income from discontinued operations, net of taxes		—		0.01

Net income	$	0.37	$	0.30

Commitments and Contingencies

3 Months Ended

Mar. 31, 2011

Commitments and Contingencies [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

Legal Proceedings

General. The nature of CCA’s business results in claims and litigation alleging that it is liable for damages arising from the conduct of its employees, inmates, or others. The nature of such claims includes, but is not limited to, claims arising from employee or inmate misconduct, medical malpractice, employment matters, property loss, contractual claims, and personal injury or other damages resulting from contact with CCA’s facilities, personnel or prisoners, including damages arising from a prisoner’s escape or from a disturbance or riot at a facility. CCA maintains insurance to cover many of these claims, which may mitigate the risk that any single claim would have a material effect on CCA’s consolidated financial position, results of operations, or cash flows, provided the claim is one for which coverage is available. The combination of self-insured retentions and deductible amounts means that, in the aggregate, CCA is subject to substantial self-insurance risk.

CCA records litigation reserves related to certain matters for which it is probable that a loss has been incurred and the range of such loss can be estimated. Based upon management’s review of the potential claims and outstanding litigation and based upon management’s experience and history of estimating losses, management believes a loss in excess of amounts already recognized would not be material to CCA’s financial statements. In the opinion of management, there are no pending legal proceedings that would have a material effect on CCA’s consolidated financial position, results of operations, or cash flows. Any receivable for insurance recoveries is recorded separately from the corresponding litigation reserve, and only if recovery is determined to be probable. Adversarial proceedings and litigation are, however, subject to inherent uncertainties, and unfavorable decisions and rulings could occur which could have a material adverse impact on CCA’s consolidated financial position, results of operations, or cash flows for the period in which such decisions or rulings occur, or future periods. Expenses associated with legal proceedings may also fluctuate from quarter to quarter based on changes in CCA’s assumptions, new developments, or by the effectiveness of CCA’s litigation and settlement strategies.

Guarantees

Hardeman County Correctional Facilities Corporation (“HCCFC”) is a nonprofit, mutual benefit corporation organized under the Tennessee Nonprofit Corporation Act to purchase, construct, improve, equip, finance, own and manage a detention facility located in Hardeman County, Tennessee. HCCFC was created as an instrumentality of Hardeman County to implement the County’s incarceration agreement with the state of Tennessee to house certain inmates.

During 1997, HCCFC issued $72.7 million of revenue bonds, which were primarily used for the construction of a 2,016-bed medium security correctional facility. In addition, HCCFC entered into a construction and management agreement with CCA in order to assure the timely and coordinated acquisition, construction, development, marketing and operation of the correctional facility.

HCCFC leases the correctional facility to Hardeman County in exchange for all revenue from the operation of the facility. HCCFC has, in turn, entered into a management agreement with CCA for the correctional facility.

In connection with the issuance of the revenue bonds, CCA is obligated, under a debt service deficit agreement, to pay the trustee of the bond’s trust indenture (the “Trustee”) amounts necessary to pay any debt service deficits consisting of principal and interest requirements (outstanding principal balance of $37.7 million at March 31, 2011 plus future interest payments). In the event the state of Tennessee, which is currently utilizing the facility to house certain inmates, exercises its option to purchase the correctional facility, CCA is also obligated to pay the difference between principal and interest owed on the bonds on the date set for the redemption of the bonds and amounts paid by the state of Tennessee for the facility plus all other funds on deposit with the Trustee and available for redemption of the bonds. Ownership of the facility reverts to the state of Tennessee in 2017 at no cost. Therefore, CCA does not currently believe the state of Tennessee will exercise its option to purchase the facility. At March 31, 2011, the outstanding principal balance of the bonds exceeded the purchase price option by $11.8 million.

Income Taxes

3 Months Ended

Mar. 31, 2011

Income Taxes [Abstract]

INCOME TAXES

10.

INCOME TAXES

Income taxes are accounted for under the provisions of ASC 740 “Income Taxes”. ASC 740 generally requires CCA to record deferred income taxes for the tax effect of differences between book and tax bases of its assets and liabilities.

Deferred income taxes reflect the available net operating losses and the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Realization of the future tax benefits related to deferred tax assets is dependent on many factors, including CCA’s past earnings history, expected future earnings, the character and jurisdiction of such earnings, unsettled circumstances that, if unfavorably resolved, would adversely affect utilization of its deferred tax assets, carryback and carryforward periods, and tax strategies that could potentially enhance the likelihood of realization of a deferred tax asset.

The Company’s effective tax rate was 37.9% during the first quarter of 2011 compared with 38.1% during the same period in the prior year. CCA’s overall effective tax rate is estimated based on CCA’s current projection of taxable income and could change in the future as a result of changes in these estimates, the implementation of additional tax planning strategies, changes in federal or state tax rates or laws affecting tax credits available to CCA, changes in estimates related to uncertain tax positions, or changes in state apportionment factors, as well as changes in the valuation allowance applied to CCA’s deferred tax assets that are based primarily on the amount of state net operating losses and tax credits that could expire unused.

Income Tax Contingencies

ASC 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The guidance prescribed in ASC 740 establishes a recognition threshold of more likely than not that a tax position will be sustained upon examination. The measurement attribute requires that a tax position be measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement.

CCA has a $0.1 million liability recorded for uncertain tax positions as of March 31, 2011, included in other non-current liabilities in the accompanying balance sheet. CCA recognizes interest and penalties related to unrecognized tax positions in income tax expense. The total amount of unrecognized tax positions that, if recognized, would affect the effective tax rate is $0.1 million. CCA does not currently anticipate that the total amount of unrecognized tax positions will significantly increase or decrease in the next twelve months.

Segment Reporting

3 Months Ended

Mar. 31, 2011

Segment Reporting [Abstract]

SEGMENT REPORTING

11.

SEGMENT REPORTING

As of March 31, 2011, CCA owned and managed 45 correctional and detention facilities, and managed 21 correctional and detention facilities it did not own. 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 2010 Form 10-K. Owned and managed facilities include the operating results of those facilities owned 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 contribution. CCA defines facility contribution as a facility’s operating income or loss from operations before interest, taxes, goodwill impairment, 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 contribution for the reportable segments and a reconciliation to CCA’s operating income is as follows for the three months ended March 31, 2011 and 2010 (in thousands):


	For the Three Months Ended
	March 31,
	2011			2010
Revenue:
Owned and managed	$	335,631		$	326,018
Managed-only		91,016			78,366

Total management revenue		426,647			404,384


Operating expenses:
Owned and managed		213,191			215,931
Managed-only		79,699			70,376

Total operating expenses		292,890			286,307


Facility contribution:
Owned and managed		122,440			110,087
Managed-only		11,317			7,990

Total facility contribution		133,757			118,077


Other revenue (expense):
Rental and other revenue		1,427			1,398
Other operating expense		(3,215	)		(3,366	)
General and administrative		(21,447	)		(18,614	)
Depreciation and amortization		(27,055	)		(24,964	)

Operating income	$	83,467		$	72,531

The following table summarizes capital expenditures for the reportable segments for the three months ended March 31, 2011 and 2010 (in thousands):


	For the Three Months Ended
	March 31,
	2011		2010
Capital expenditures:
Owned and managed	$	11,291	$	38,836
Managed-only		903		954
Corporate and other		1,354		1,050
Discontinued operations		—		71

Total capital expenditures	$	13,548	$	40,911








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


	March 31,
	2011		December 31, 2010
Assets:
Owned and managed	$	2,646,413	$	2,696,581
Managed-only		117,132		127,960
Corporate and other		166,349		156,526
Discontinued operations		2,135		2,161

Total assets	$	2,932,029	$	2,983,228