DEFERRED REVENUE

12 Months Ended

Dec. 31, 2023

DEFERRED REVENUE

11.DEFERRED REVENUE

In September 2014, CoreCivic announced that it had agreed under an expansion of an existing IGSA to care for up to 2,400 individuals for ICE at the South Texas Family Residential Center, a facility leased by CoreCivic in Dilley, Texas. Services provided under the original IGSA commenced in the fourth quarter of 2014 and had an original term of up to four years. The agreement provided for a fixed monthly payment in accordance with a graduated schedule. In October 2016, CoreCivic entered into an amended IGSA that provided for a new, lower fixed monthly payment commencing in November 2016, and extended the term of the contract through September 2021. In September 2020, the term of the amended IGSA was extended from September 2021 to September 2026. The agreement can be further extended by bi-lateral modification. 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. ICE began housing the first residents at the facility in December 2014, and the site was completed during the second quarter of 2015.

Under the fixed monthly payment schedule of the original IGSA, ICE agreed to pay CoreCivic $70.0 million in two $35.0 million installments during the fourth quarter of 2014 and graduated fixed monthly payments over the remaining months of the contract. During the years ended December 31, 2023, 2022, and 2021, CoreCivic recognized $156.1 million, $156.1 million, and $159.7 million, respectively, in revenue associated with the amended IGSA with the unrecognized balance of the fixed monthly payments reported in deferred revenue. The current portion of deferred revenue is reflected within accounts payable and accrued expenses while the long-term portion is reflected as deferred revenue on the accompanying consolidated balance sheets. As of December 31, 2023 and 2022, total deferred revenue associated with this agreement amounted to $7.3 million and $9.9 million, respectively.