INVESTMENT IN AFFILIATE

12 Months Ended

Dec. 31, 2023

Agecroft Prison Management Ltd

INVESTMENT IN AFFILIATE

7.INVESTMENT IN AFFILIATE

CoreCivic has a 50% ownership interest in APM, an entity holding the management contract for a correctional facility, HM Prison Forest Bank, under a 25-year prison management contract with an agency of the United Kingdom government. CoreCivic has determined that its joint venture investment in APM represents a variable interest entity ("VIE") in accordance with ASC 810, "Consolidation" of which CoreCivic is not the primary beneficiary. The Forest Bank facility, located in Salford, England, which was sold in April 2001, was previously constructed and owned by a wholly-owned subsidiary of CoreCivic. All gains and losses under the joint venture are accounted for using the equity method of accounting. During 2000, CoreCivic extended a working capital loan to APM, which has an outstanding balance of $2.9 million as of December 31, 2023 and is reported in other assets on the accompanying consolidated balance sheets.

For the year ended December 31, 2023, equity in earnings of the joint venture was $325,000. For the years ended December 31, 2022 and 2021, equity in losses of the joint venture was $124,000 and $138,000, respectively. The equity in earnings and losses of the joint venture is included in other income (expense) in the consolidated statements of operations.