REAL ESTATE AND RELATED ASSETS

12 Months Ended

Dec. 31, 2023

At December 31, 2023, CoreCivic owned or controlled via long-term leases 68 correctional, detention, and residential reentry real estate properties, including 6 correctional properties in the Company's CoreCivic Properties segment. At December 31, 2023, CoreCivic also managed four correctional and detention facilities owned by governmental agencies.

Property and equipment, at cost, consists of the following (in thousands):


	December 31,
	2023			2022
Land and improvements	$	237,505		$	238,707
Buildings and improvements		3,193,948			3,169,493
Equipment and software		465,337			445,658
Office furniture and fixtures		38,747			38,523
		3,935,537			3,892,381
Less: Accumulated depreciation		(1,821,015	)		(1,716,283	)
	$	2,114,522		$	2,176,098

Depreciation expense was $126.8 million, $126.7 million, and $132.9 million for the years ended December 31, 2023, 2022, and 2021, respectively.

Nine of the facilities owned by CoreCivic are subject to options that allow various governmental agencies to purchase those facilities. Certain of these options to purchase are based on a depreciated book value while others are based on a fair market value calculation. Four of the facilities that are subject to options are accounted for in accordance with ASC 853 and are recorded in other real estate assets on the consolidated balance sheets, as further described in Note 2. As of December 31, 2023 and 2022, CoreCivic had $201.6 million and $208.2 million, respectively in other real estate assets, including $134.8 million and $136.3 million, respectively, accounted for as a contract cost and $66.8 million and $71.9 million, respectively, accounted for as costs of fulfilling the related service contract.