As further described in Note 2, CoreCivic accounts for leases in accordance with ASC 842. CoreCivic leases land and buildings from third-party lessors for multiple properties under operating leases that expire over varying dates through 2032. The ROU asset related to these leases amounted to $119.8 million and $145.5 million at December 31, 2023 and 2022, respectively, while the current portion of the lease liability amounted to $25.9 million and $24.1 million and the long-term portion of the liability amounted to $70.9 million and $96.9 million at December 31, 2023 and 2022, respectively. As of December 31, 2023, the weighted-average lease term of the operating leases was 3.5 years, and the weighted average discount rate associated with the operating leases was 6.3%.

CoreCivic leases the South Texas Family Residential Center and the site upon which it was constructed from a third-party lessor. CoreCivic's lease agreement with the lessor is over a base period concurrent with an inter-governmental service agreement ("IGSA") with ICE, which was amended in September 2020 to extend the term of the agreement through September 2026. ICE's termination rights, which permit ICE to terminate the agreement for convenience or non-appropriation of funds, without penalty, by providing CoreCivic with at least a 60-day notice, were unchanged under the extension. Concurrent with the extension of the amended IGSA, the lease with the third-party lessor for the site was also extended through September 2026. Other terms of the extended lease agreement were unchanged and provide CoreCivic with the ability to terminate the lease if ICE terminates the amended IGSA associated with the facility. Under provisions of ASC 842, CoreCivic determined that the South Texas Family Residential Center lease with the third-party lessor includes a non-lease component for food services representing approximately 44% of the consideration paid under the lease.

The expense incurred for all operating leases, inclusive of short-term and variable leases, but exclusive of the non-lease food services component of the South Texas Family Residential Center lease, was $34.2 million, $34.2 million, and $34.6 million for the years ended December 31, 2023, 2022, and 2021, respectively. The cash payments for operating leases are reflected as cash flows from operating activities on the accompanying consolidated statements of cash flows and cash payments for financing leases are reflected as cash flows from financing activities. Future minimum lease payments as of December 31, 2023 for the Company's operating lease liabilities, inclusive of $79.1 million of payments expected to be made under the cancelable lease at the South Texas facility (excluding the non-lease food services component), are as follows (in thousands):


2024	$	33,372
2025		33,263
2026		25,705
2027		3,579
2028		3,167
Thereafter		8,940
Total future minimum lease payments		108,026
Less amount representing interest		(11,202	)
Total present value of minimum lease payments	$	96,824

In addition, through its CoreCivic Properties segment, as of December 31, 2023, the Company owned $248.0 million in property and equipment at 6 properties, 5 of which are currently leased to government agencies under operating and finance leases that expire over varying dates through 2040 and some of which contain renewal options. In accordance with ASC 842, minimum lease revenue is recognized on a straight-line basis over the term of the related lease. Lease incentives are recognized as a reduction to lease revenue on a straight-line basis over the term of the related lease. Lease revenue associated with expense reimbursements from tenants is recognized in the period that the related expenses are incurred based upon the tenant lease provision. See Note 6 for further discussion regarding a 20-year lease agreement with the Kansas Department of Corrections ("KDOC"). Future minimum lease payments to be received from third-party lessees as of December 31, 2023 for the Company's operating and finance leases are as follows (in thousands):


2024	$	39,466
2025		28,119
2026		28,542
2027		28,971
2028		29,412
Thereafter		228,343