CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF CORECIVIC AND SUBSIDIARIES (Tables)

12 Months Ended

Dec. 31, 2016

CONDENSED CONSOLIDATING BALANCE SHEET

CONDENSED CONSOLIDATING BALANCE SHEET

As of December 31, 2016

(in thousands)

Parent

Combined
Subsidiary
Guarantors

Consolidating
Adjustments
and Other

Total
Consolidated
Amounts

ASSETS

Cash and cash equivalents

11,378

26,333

—

37,711

Accounts receivable, net of allowance

237,495

270,952

(278,562

)

229,885

Prepaid expenses and other current assets

7,582

30,123

(6,477

)

31,228

Total current assets

256,455

327,408

(285,039

)

298,824

Property and equipment, net

2,493,025

344,632

—

2,837,657

Restricted cash

218

—

218

Goodwill

23,231

15,155

—

38,386

Non-current deferred tax assets

—

14,056

(321

)

13,735

Other assets

339,173

57,873

(314,262

)

82,784

Total assets

3,112,102

759,124

(599,622

)

3,271,604

LIABILITIES AND STOCKHOLDERS’ EQUITY

Accounts payable and accrued expenses

203,074

342,072

(285,039

)

260,107

Income taxes payable

1,850

236

—

2,086

Current portion of long-term debt

10,000

—

10,000

Total current liabilities

214,924

342,308

(285,039

)

272,193

Long-term debt, net

1,436,186

113,983

(115,000

)

1,435,169

Non-current deferred tax liabilities

321

—

(321

)

—

Deferred revenue

—

53,437

—

53,437

Other liabilities

1,708

50,134

—

51,842

Total liabilities

1,653,139

559,862

(400,360

)

1,812,641

Total stockholders’ equity

1,458,963

199,262

(199,262

)

1,458,963

Total liabilities and stockholders’ equity

3,112,102

759,124

(599,622

)

3,271,604

CONDENSED CONSOLIDATING BALANCE SHEET

As of December 31, 2015

(in thousands)


	Parent		Combined Subsidiary Guarantors		Consolidating Adjustments and Other			Total Consolidated Amounts
ASSETS
Cash and cash equivalents	$	15,666	$	49,625	$	—		$	65,291
Restricted cash		637		240		—			877
Accounts receivable, net of allowance		300,632		159,286		(225,462	)		234,456
Prepaid expenses and other current assets		3,760		43,706		(6,032	)		41,434

Total current assets		320,695		252,857		(231,494	)		342,058
Property and equipment, net		2,526,278		356,782		—			2,883,060
Restricted cash		131		—		—			131
Investment in direct financing lease		684		—		—			684
Goodwill		20,402		15,155		—			35,557
Non-current deferred tax assets		—		10,217		(393	)		9,824
Other assets		241,510		57,120		(213,926	)		84,704

Total assets	$	3,109,700	$	692,131	$	(445,813	)	$	3,356,018

LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued expenses	$	191,600	$	357,569	$	(231,494	)	$	317,675
Income taxes payable		—		1,920		—			1,920
Current portion of long-term debt		5,000		—		—			5,000

Total current liabilities		196,600		359,489		(231,494	)		324,595
Long-term debt, net		1,448,316		113,761		(115,000	)		1,447,077
Non-current deferred tax liabilities		393		—		(393	)		—
Deferred revenue		—		63,289		—			63,289
Other liabilities		1,643		56,666		—			58,309

Total liabilities		1,646,952		593,205		(346,887	)		1,893,270

Total stockholders’ equity		1,462,748		98,926		(98,926	)		1,462,748

Total liabilities and stockholders’ equity	$	3,109,700	$	692,131	$	(445,813	)	$	3,356,018

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the year ended December 31, 2016

(in thousands)

Parent

Combined
Subsidiary
Guarantors

Consolidating
Adjustments
and Other

Total
Consolidated
Amounts

REVENUES

1,182,765

1,542,231

(875,211

)

1,849,785

EXPENSES:

Operating

904,750

1,246,047

(875,211

)

1,275,586

General and administrative

35,440

71,587

—

107,027

Depreciation and amortization

84,842

81,904

—

166,746

Restructuring charges

197

3,813

—

4,010

1,025,229

1,403,351

(875,211

)

1,553,369

OPERATING INCOME

157,536

138,880

—

296,416

OTHER (INCOME) EXPENSE:

Interest expense, net

51,928

15,827

—

67,755

Other (income) expense

995

(548

)

489

52,923

15,279

68,244

INCOME BEFORE INCOME TAXES

104,613

123,601

(42

)

228,172

Income tax expense

(1,896

)

(6,357

)

—

(8,253

)

INCOME BEFORE EQUITY IN SUBSIDIARIES

102,717

117,244

(42

)

219,919

Income from equity in subsidiaries

117,202

—

(117,202

)

—

NET INCOME

219,919

117,244

(117,244

)

219,919

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the year ended December 31, 2015

(in thousands)


	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	1,184,878		$	1,469,105		$	(860,896	)	$	1,793,087

EXPENSES:
Operating		889,203			1,227,821			(860,896	)		1,256,128
General and administrative		33,248			70,688			—			103,936
Depreciation and amortization		82,745			68,769			—			151,514
Asset impairments		—			955			—			955

		1,005,196			1,368,233			(860,896	)		1,512,533

OPERATING INCOME		179,682			100,872			—			280,554

OTHER (INCOME) EXPENSE:
Interest expense, net		35,919			13,777			—			49,696
Expenses associated with debt refinancing transactions		701			—			—			701
Other (income) expense		232			(414	)		124			(58	)

		36,852			13,363			124			50,339

INCOME BEFORE INCOME TAXES		142,830			87,509			(124	)		230,215

Income tax expense		(1,541	)		(6,820	)		—			(8,361	)

INCOME BEFORE EQUITY IN SUBSIDIARIES		141,289			80,689			(124	)		221,854

Income from equity in subsidiaries		80,565			—			(80,565	)		—

NET INCOME	$	221,854		$	80,689		$	(80,689	)	$	221,854

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the year ended December 31, 2014

(in thousands)


	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	1,250,199		$	1,268,654		$	(871,986	)	$	1,646,867

EXPENSES:
Operating		896,470			1,131,651			(871,986	)		1,156,135
General and administrative		33,508			72,921			—			106,429
Depreciation and amortization		80,820			33,105			—			113,925
Asset impairments		29,915			167			—			30,082

		1,040,713			1,237,844			(871,986	)		1,406,571

OPERATING INCOME		209,486			30,810			—			240,296

OTHER (INCOME) EXPENSE:
Interest expense, net		35,138			4,397			—			39,535
Other (income) expense		302			(786	)		(720	)		(1,204	)

		35,440			3,611			(720	)		38,331

INCOME BEFORE INCOME TAXES		174,046			27,199			720			201,965

Income tax expense		(552	)		(6,391	)		—			(6,943	)

INCOME BEFORE EQUITY IN SUBSIDIARIES		173,494			20,808			720			195,022

Income from equity in subsidiaries		21,528			—			(21,528	)		—

NET INCOME	$	195,022		$	20,808		$	(20,808	)	$	195,022

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the year ended December 31, 2016

(in thousands)

Parent

Combined
Subsidiary
Guarantors

Consolidating
Adjustments
And Other

Total
Consolidated
Amounts

Net cash provided by operating activities

295,366

80,007

—

375,373

Net cash used in investing activities

(19,317

)

(69,571

)

(33,300

)

(122,188

)

Net cash provided by (used in) financing activities

(280,337

)

(33,728

)

33,300

(280,765

)

Net decrease in cash and cash equivalents

(4,288

)

(23,292

)

—

(27,580

)

CASH AND CASH EQUIVALENTS, beginning of year

15,666

49,625

—

65,291

CASH AND CASH EQUIVALENTS, end of year

11,378

26,333

—

37,711

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the year ended December 31, 2015

(in thousands)


	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments And Other			Total Consolidated Amounts
Net cash provided by operating activities	$	102,371		$	297,427		$	—		$	399,798
Net cash used in investing activities		(93,891	)		(212,215	)		(103,175	)		(409,281	)
Net cash provided by (used in) financing activities		(5,151	)		(97,643	)		103,175			381

Net (decrease) increase in cash and cash equivalents		3,329			(12,431	)		—			(9,102	)

CASH AND CASH EQUIVALENTS, beginning of year		12,337			62,056			—			74,393

CASH AND CASH EQUIVALENTS, end of year	$	15,666		$	49,625		$	—		$	65,291

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the year ended December 31, 2014

(in thousands)


	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments And Other			Total Consolidated Amounts
Net cash provided by operating activities	$	296,087		$	127,494		$	—		$	423,581
Net cash used in investing activities		(73,404	)		(102,337	)		(21,146	)		(196,887	)
Net cash provided by (used in) financing activities		(241,993	)		(9,373	)		21,146			(230,220	)

Net (decrease) increase in cash and cash equivalents		(19,310	)		15,784			—			(3,526	)

CASH AND CASH EQUIVALENTS, beginning of year		31,647			46,272			—			77,919

CASH AND CASH EQUIVALENTS, end of year	$	12,337		$	62,056		$	—		$	74,393