CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF CORECIVIC AND SUBSIDIARIES (Tables)

12 Months Ended

Dec. 31, 2018

As of December 31, 2018

(in thousands)

ASSETS	Parent		Combined Subsidiary Guarantors		Non- Guarantor Subsidiaries		Consolidating Adjustments and Other			Total Consolidated Amounts
Cash and cash equivalents	$	11,109	$	40,348	$	1,345	$	—		$	52,802
Restricted cash		—		—		21,335		—			21,335
Accounts receivable, net of allowance		254,766		445,105		1,809		(431,083	)		270,597
Prepaid expenses and other current assets		4,412		26,939		1,951		(4,511	)		28,791
Total current assets		270,287		512,392		26,440		(435,594	)		373,525
Real estate and related assets:
Property and equipment, net		2,255,361		310,989		264,239		—			2,830,589
Other real estate assets		247,223		—		—		—			247,223
Goodwill		33,057		15,112		—		—			48,169
Non-current deferred tax assets		727		14,220		1,165		(1,165	)		14,947
Other assets		507,161		61,104		38,112		(465,170	)		141,207
Total assets	$	3,313,816	$	913,817	$	329,956	$	(901,929	)	$	3,655,660
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses	$	293,165	$	376,833	$	115,648	$	(435,559	)	$	350,087
Income taxes payable		1,309		866		13		—			2,188
Current portion of long-term debt		8,720		—		5,401		—			14,121
Total current liabilities		303,194		377,699		121,062		(435,559	)		366,396
Long-term debt, net		1,579,273		114,428		208,854		(115,000	)		1,787,555
Non-current deferred tax liabilities		1,165		—		—		(1,165	)		—
Deferred revenue		—		26,102		—		—			26,102
Other liabilities		15,125		45,423		—		—			60,548
Total liabilities		1,898,757		563,652		329,916		(551,724	)		2,240,601

Total stockholders' equity		1,415,059		350,165		40		(350,205	)		1,415,059
Total liabilities and stockholders' equity	$	3,313,816	$	913,817	$	329,956	$	(901,929	)	$	3,655,660

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
Real estate and related assets:
Property and equipment, net		2,211,561		335,283		—			2,546,844
Other real estate assets		255,605		—		—			255,605
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

For the year ended December 31, 2018

(in thousands)

	Parent			Combined Subsidiary Guarantors			Non- Guarantor Subsidiaries			Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	1,279,991		$	1,514,503		$	8,243		$	(966,971	)	$	1,835,766
EXPENSES:
Operating		994,505			1,284,616			3,100			(966,971	)		1,315,250
General and administrative		36,409			70,456			—			—			106,865
Depreciation and amortization		92,702			61,206			2,593			—			156,501
Contingent consideration for acquisition of businesses		6,085			—			—			—			6,085
Asset impairments		1,580			—			—			—			1,580
		1,131,281			1,416,278			5,693			(966,971	)		1,586,281
OPERATING INCOME		148,710			98,225			2,550			—			249,485
OTHER (INCOME) EXPENSE:
Interest expense, net		67,340			10,905			2,508			—			80,753
Expenses associated with debt refinancing transactions		1,016			—			—			—			1,016
Other (income) expense		160			(105	)		101			—			156
		68,516			10,800			2,609			—			81,925
INCOME BEFORE INCOME TAXES		80,194			87,425			(59	)		—			167,560
Income tax expense		(1,383	)		(6,970	)		—			—			(8,353	)
INCOME BEFORE EQUITY IN SUBSIDIARIES		78,811			80,455			(59	)		—			159,207
Income from equity in subsidiaries		80,396			—			—			(80,396	)		—
NET INCOME	$	159,207		$	80,455		$	(59	)	$	(80,396	)	$	159,207

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the year ended December 31, 2017

(in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	1,194,690		$	1,454,194		$	(883,386	)	$	1,765,498
EXPENSES:
Operating		914,443			1,218,480			(883,386	)		1,249,537
General and administrative		36,964			70,858			—			107,822
Depreciation and amortization		87,694			59,435			—			147,129
Asset impairments		300			314			—			614
		1,039,401			1,349,087			(883,386	)		1,505,102
OPERATING INCOME		155,289			105,107			—			260,396
OTHER (INCOME) EXPENSE:
Interest expense, net		56,712			11,823			—			68,535
Other (income) expense		(255	)		103			62			(90	)
		56,457			11,926			62			68,445
INCOME BEFORE INCOME TAXES		98,832			93,181			(62	)		191,951
Income tax expense		(1,765	)		(12,146	)		—			(13,911	)
INCOME BEFORE EQUITY IN SUBSIDIARIES		97,067			81,035			(62	)		178,040
Income from equity in subsidiaries		80,973			—			(80,973	)		—
NET INCOME	$	178,040		$	81,035		$	(81,035	)	$	178,040

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	)		42			489
		52,923			15,279			42			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

For the year ended December 31, 2018

(in thousands)

	Parent			Combined Subsidiary Guarantors			Non- Guarantor Subsidiaries			Consolidating Adjustments And Other		Total Consolidated Amounts
Net cash provided by operating activities	$	243,083		$	75,011		$	4,786		$	—	$	322,880
Net cash used in investing activities		(109,114	)		(47,940	)		(134,003	)		—		(291,057	)
Net cash provided by (used in) financing activities		(148,605	)		(13,161	)		151,897			—		(9,869	)
Net increase (decrease) in cash, cash equivalents and restricted cash		(14,636	)		13,910			22,680			—		21,954
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of year		25,745			26,438			—			—		52,183
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of year	$	11,109		$	40,348		$	22,680		$	—		74,137

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the year ended December 31, 2017

(in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments And Other		Total Consolidated Amounts
Net cash provided by operating activities	$	276,055		$	65,270		$	—	$	341,325
Net cash used in investing activities		(55,242	)		(69,320	)		—		(124,562	)
Net cash provided by (used in) financing activities		(206,446	)		4,155			—		(202,291	)
Net increase in cash, cash equivalents and restricted cash		14,367			105			—		14,472
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of year		11,378			26,333			—		37,711
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of year	$	25,745		$	26,438		$	—	$	52,183

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		(18,767	)		(69,571	)		(33,300	)		(121,638	)
Net cash provided by (used in) financing activities		(280,887	)		(33,728	)		33,300			(281,315	)
Net decrease in cash, cash equivalents and restricted cash		(4,288	)		(23,292	)		—			(27,580	)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of year		15,666			49,625			—			65,291
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of year	$	11,378		$	26,333		$	—		$	37,711