12.	CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF THE COMPANY AND SUBSIDIARIES

The following condensed consolidating financial statements of CoreCivic and subsidiaries have been prepared pursuant to Rule 3-10 of Regulation S-X. These condensed consolidating financial statements have been prepared from the Company's financial information on the same basis of accounting as the consolidated financial statements.

CONDENSED CONSOLIDATING BALANCE SHEET

As of September 30, 2018

(Unaudited and in thousands)

ASSETS	Parent		Combined Subsidiary Guarantors		Non-Guarantor Subsidiaries		Consolidating Adjustments and Other			Total Consolidated Amounts
Cash and cash equivalents	$	68,599	$	24,664	$	362	$	—		$	93,625
Restricted cash		—		—		11,103		—			11,103
Accounts receivable, net of allowance		143,538		449,928		2,802		(362,106	)		234,162
Prepaid expenses and other current assets		2,929		27,498		2,943		(5,405	)		27,965
Total current assets		215,066		502,090		17,210		(367,511	)		366,855
Property and equipment, net		2,470,164		314,981		238,818		—			3,023,963
Goodwill		33,057		10,939		—		—			43,996
Non-current deferred tax assets		—		14,780		—		(471	)		14,309
Other assets		608,586		51,269		38,669		(563,615	)		134,909
Total assets	$	3,326,873	$	894,059	$	294,697	$	(931,597	)	$	3,584,032
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses	$	312,080	$	352,062	$	11,023	$	(367,476	)	$	307,689
Income taxes payable		321		1,054		—		—			1,375
Current portion of long-term debt		7,456		—		5,339		—			12,795
Total current liabilities		319,857		353,116		16,362		(367,476	)		321,859
Long-term debt, net		1,569,543		114,373		183,269		(115,000	)		1,752,185
Non-current deferred tax liabilities		471		—		—		(471	)		—
Deferred revenue		—		29,510		—		—			29,510
Other liabilities		14,927		43,476		—		—			58,403
Total liabilities		1,904,798		540,475		199,631		(482,947	)		2,161,957

Total stockholders' equity		1,422,075		353,584		95,066		(448,650	)		1,422,075
Total liabilities and stockholders' equity	$	3,326,873	$	894,059	$	294,697	$	(931,597	)	$	3,584,032

CONDENSED CONSOLIDATING BALANCE SHEET

As of December 31, 2017

(in thousands)

ASSETS	Parent		Combined Subsidiary Guarantors		Consolidating Adjustments and Other			Total Consolidated Amounts
Cash and cash equivalents	$	25,745	$	26,438	$	—		$	52,183
Accounts receivable, net of allowance		211,673		372,755		(330,240	)		254,188
Prepaid expenses and other current assets		1,835		24,986		(5,702	)		21,119
Total current assets		239,253		424,179		(335,942	)		327,490
Property and equipment, net		2,467,166		335,283		—			2,802,449
Goodwill		26,031		14,896		—			40,927
Non-current deferred tax assets		—		13,193		(379	)		12,814
Other assets		421,474		69,117		(401,873	)		88,718
Total assets	$	3,153,924	$	856,668	$	(738,194	)	$	3,272,398
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses	$	251,011	$	362,701	$	(335,908	)	$	277,804
Income taxes payable		1,443		1,591		—			3,034
Current portion of long-term debt		10,000		—		—			10,000
Total current liabilities		262,454		364,292		(335,908	)		290,838
Long-term debt, net		1,437,982		114,205		(115,000	)		1,437,187
Non-current deferred tax liabilities		379		—		(379	)		—
Deferred revenue		—		39,735		—			39,735
Other liabilities		1,501		51,529		—			53,030
Total liabilities		1,702,316		569,761		(451,287	)		1,820,790

Total stockholders' equity		1,451,608		286,907		(286,907	)		1,451,608
Total liabilities and stockholders' equity	$	3,153,924	$	856,668	$	(738,194	)	$	3,272,398

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the three months ended September 30, 2018

(Unaudited and in thousands)

	Parent			Combined Subsidiary Guarantors			Non-Guarantor Subsidiaries		Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	322,872		$	381,594		$	2,497	$	(244,235	)	$	462,728
EXPENSES:
Operating		253,267			323,765			962		(244,235	)		333,759
General and administrative		8,686			16,399			—		—			25,085
Depreciation and amortization		23,475			15,349			641		—			39,465
		285,428			355,513			1,603		(244,235	)		398,309
OPERATING INCOME		37,444			26,081			894		—			64,419
OTHER (INCOME) EXPENSE:
Interest expense, net		16,962			2,825			747		—			20,534
Other (income) expense		42			(20	)		27		—			49
		17,004			2,805			774		—			20,583
INCOME BEFORE INCOME TAXES		20,440			23,276			120		—			43,836
Income tax expense		(332	)		(2,510	)		—		—			(2,842	)
INCOME BEFORE EQUITY IN SUBSIDIARIES		20,108			20,766			120		—			40,994
Income from equity in subsidiaries		20,886			—			—		(20,886	)		—
NET INCOME	$	40,994		$	20,766		$	120	$	(20,886	)	$	40,994

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the three months ended September 30, 2017

(Unaudited and in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	297,856		$	368,507		$	(223,518	)	$	442,845
EXPENSES:
Operating		231,528			308,855			(223,518	)		316,865
General and administrative		9,823			18,480			—			28,303
Depreciation and amortization		22,147			14,360			—			36,507
Asset impairments		300			55			—			355
		263,798			341,750			(223,518	)		382,030
OPERATING INCOME		34,058			26,757			—			60,815
OTHER (INCOME) EXPENSE:
Interest expense, net		14,046			2,983			—			17,029
Other (income) expense		(96	)		21			10			(65	)
		13,950			3,004			10			16,964
INCOME BEFORE INCOME TAXES		20,108			23,753			(10	)		43,851
Income tax expense		(541	)		(2,132	)		—			(2,673	)
INCOME BEFORE EQUITY IN SUBSIDIARIES		19,567			21,621			(10	)		41,178
Income from equity in subsidiaries		21,611			—			(21,611	)		—
NET INCOME	$	41,178		$	21,621		$	(21,621	)	$	41,178

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the nine months ended September 30, 2018

(Unaudited and in thousands)

	Parent			Combined Subsidiary Guarantors			Non-Guarantor Subsidiaries		Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	944,064		$	1,119,524		$	2,497	$	(712,512	)	$	1,353,573
EXPENSES:
Operating		739,305			945,694			962		(712,512	)		973,449
General and administrative		26,618			50,976			—		—			77,594
Depreciation and amortization		68,921			46,552			641		—			116,114
Asset impairments		1,580			—			—		—			1,580
		836,424			1,043,222			1,603		(712,512	)		1,168,737
OPERATING INCOME		107,640			76,302			894		—			184,836
OTHER (INCOME) EXPENSE:
Interest expense, net		49,705			8,156			747		—			58,608
Expenses associated with debt refinancing transactions		1,016			—			—		—			1,016
Other (income) expense		62			(107	)		84		—			39
		50,783			8,049			831		—			59,663
INCOME BEFORE INCOME TAXES		56,857			68,253			63		—			125,173
Income tax expense		(1,097	)		(6,108	)		—		—			(7,205	)
INCOME BEFORE EQUITY IN SUBSIDIARIES		55,760			62,145			63		—			117,968
Income from equity in subsidiaries		62,208			—			—		(62,208	)		—
NET INCOME	$	117,968		$	62,145		$	63	$	(62,208	)	$	117,968

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the nine months ended September 30, 2017

(Unaudited and in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	885,271		$	1,094,805		$	(655,154	)	$	1,324,922
EXPENSES:
Operating		679,458			915,761			(655,154	)		940,065
General and administrative		26,630			52,916			—			79,546
Depreciation and amortization		65,206			44,358			—			109,564
Asset impairments		300			314			—			614
		771,594			1,013,349			(655,154	)		1,129,789
OPERATING INCOME		113,677			81,456			—			195,133
OTHER (INCOME) EXPENSE:
Interest expense, net		41,219			8,922			—			50,141
Other (income) expense		(248	)		109			31			(108	)
		40,971			9,031			31			50,033
INCOME BEFORE INCOME TAXES		72,706			72,425			(31	)		145,100
Income tax expense		(1,711	)		(6,689	)		—			(8,400	)
INCOME BEFORE EQUITY IN SUBSIDIARIES		70,995			65,736			(31	)		136,700
Income from equity in subsidiaries		65,705			—			(65,705	)		—
NET INCOME	$	136,700		$	65,736		$	(65,736	)	$	136,700

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the nine months ended September 30, 2018

(Unaudited and in thousands)

	Parent			Combined Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidating Adjustments and Other			Total Consolidated Amounts
Net cash provided by operating activities	$	255,765		$	19,472		$	9,334		$	—		$	284,571
Net cash used in investing activities		(178,280	)		(23,098	)		(124,178	)		94,920			(230,636	)
Net cash provided by (used in) financing activities		(34,631	)		1,852			126,309			(94,920	)		(1,390	)
Net increase (decrease) in cash, cash equivalents and restricted cash		42,854			(1,774	)		11,465			—			52,545
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period		25,745			26,438			—			—			52,183
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period	$	68,599		$	24,664		$	11,465		$	—			104,728

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the nine months ended September 30, 2017

(Unaudited and in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments and Other		Total Consolidated Amounts
Net cash provided by operating activities	$	239,662		$	24,473		$	—	$	264,135
Net cash used in investing activities		(50,216	)		(31,544	)		—		(81,760	)
Net cash provided by (used in) financing activities		(180,702	)		3,351			—		(177,351	)
Net increase (decrease) in cash, cash equivalents and restricted cash		8,744			(3,720	)		—		5,024
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period		11,378			26,333			—		37,711
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period	$	20,122		$	22,613		$	—	$	42,735