Corrections Corporation of America Determines Fair Market Value of Shares of Series B Preferred Stock Issued on September 30, 2003 as Paid-In-Kind Dividend.Business Editors NASHVILLE, Tenn.--(BUSINESS WIRE)--Oct. 13, 2003 Corrections Corporation of America Corrections Corporation of America (NYSE: CXW) (CCA) is a company that manages public prisons and other facilities[1], and has concessions for many others. The company had annual revenues in 2004 of $1.15 billion USD. (NYSE NYSE See: New York Stock Exchange : CXW) announced today that it has determined the fair market value of the shares of its Series B Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. distributed on September 30, 2003, as a paid-in-kind dividend on previously issued shares of it Series B Preferred Stock, to be $25.37 per share. Accordingly, the Company's stockholders who received shares of the Series B Preferred Stock as the third quarter 2003 paid-in-kind dividend generally will be required to include as ordinary income on their 2003 tax returns $25.37 for each share of Series B Preferred Stock they received in the distribution, to the extent of the Company's current or accumulated earnings and profits (as determined at the end of 2003). Such amount will also constitute the stockholders' cost basis in the shares received on September 30, 2003. To the extent distributions by the Company during 2003 exceed its current or accumulated earnings and profits as of the end of 2003, the amount in excess will be treated first as a return of capital and thereafter as gain from the sale of stock. Under the terms of the Series B Preferred Stock, the Company is required to pay quarterly dividends in arrears dividends in arrears Dividend payments on cumulative preferred stock that have been passed by a firm's directors. These dividends must be brought up to date before any payments are made to common stockholders. , when and as declared by the Company's board of directors, in additional shares of Series B Preferred Stock at a rate of 12 percent per year through September 2003. Cash dividends are payable thereafter at a rate of 12 percent per year. Future cash dividends on shares of the Company's Series B Preferred Stock will also generally be taxable as ordinary income to the extent of the Company's current or accumulated earnings and profits as of the end of the year in which such shares are distributed. About the Company The Company is the nation's largest owner and operator of privatized correctional and detention facilities and one of the largest prison operators in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , behind only the federal government and four states. The Company currently operates 59 facilities, including 38 company-owned facilities, with a total design capacity of approximately 59,000 beds in 20 states and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). . The Company 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, the Company'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 recidivism: see criminology. and to prepare inmates for their successful re-entry RE-ENTRY, estates. The resuming or retaking possession of land which the party lately had. 2. Ground rent deeds and leases frequently contain a clause authorizing the landlord to reenter on the non-payment of rent, or the breach of some covenant, when the into society upon their release. The Company also provides health care (including medical, dental and psychiatric services), food services food services Hospital services A 24/7 department in a hospital that provides for the nutritional needs of inpatients–eg, those needing special diets, preparing meals and transporting them to the floor and, through the cafeteria, the hospital staff and and work and recreational programs. The Company takes no responsibility for updating the information contained in this press release following the date hereof or for any changes or modifications made to this press release or the information contained herein by any third parties, including, but not limited to, any wire or Internet services. |
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