CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF CORECIVIC AND SUBSIDIARIES (Tables)

12 Months Ended

Dec. 31, 2019

As of December 31, 2019

(in thousands)

ASSETS	Parent		Combined Subsidiary Guarantors		Non- Guarantor Subsidiaries			Consolidating Adjustments and Other			Total Consolidated Amounts
Cash and cash equivalents	$	45,427	$	45,309	$	1,384		$	—		$	92,120
Restricted cash		—		7		26,966			—			26,973
Accounts receivable, net of allowance		154,533		545,291		86			(419,125	)		280,785
Prepaid expenses and other current assets		3,084		32,600		3,966			(4,143	)		35,507
Total current assets		203,044		623,207		32,402			(423,268	)		435,385
Real estate and related assets:
Property and equipment, net		2,226,822		272,888		200,397			—			2,700,107
Other real estate assets		238,637		—		—			—			238,637
Goodwill		35,425		15,112		—			—			50,537
Non-current deferred tax assets		—		14,125		2,411			(478	)		16,058
Other assets		606,718		136,125		173,268			(565,204	)		350,907
Total assets	$	3,310,646	$	1,061,457	$	408,478		$	(988,950	)	$	3,791,631
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses	$	261,588	$	396,703	$	102,404		$	(423,233	)	$	337,462
Current portion of long-term debt		23,776		—		7,573			—			31,349
Total current liabilities		285,364		396,703		109,977			(423,233	)		368,811
Long-term debt, net		1,629,745		114,682		298,596			(115,000	)		1,928,023
Non-current deferred tax liabilities		478		—		—			(478	)		—
Deferred revenue		—		12,469		—			—			12,469
Other liabilities		18,310		87,269		—			—			105,579
Total liabilities		1,933,897		611,123		408,573			(538,711	)		2,414,882

Total stockholders' equity		1,376,749		450,334		(95	)		(450,239	)		1,376,749
Total liabilities and stockholders' equity	$	3,310,646	$	1,061,457	$	408,478		$	(988,950	)	$	3,791,631

CONDENSED CONSOLIDATING BALANCE SHEET

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	$	294,474	$	377,699	$	115,661	$	(435,559	)	$	352,275
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 STATEMENT OF OPERATIONS

For the year ended December 31, 2019

(in thousands)

	Parent			Combined Subsidiary Guarantors			Non- Guarantor Subsidiaries			Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	1,363,562		$	1,627,226		$	23,546		$	(1,033,645	)	$	1,980,689
EXPENSES:
Operating		1,065,596			1,381,676			9,142			(1,033,645	)		1,422,769
General and administrative		42,680			84,398			—			—			127,078
Depreciation and amortization		93,575			43,231			7,766			—			144,572
Asset impairments		4,706			—			—			—			4,706
		1,206,557			1,509,305			16,908			(1,033,645	)		1,699,125
OPERATING INCOME		157,005			117,921			6,638			—			281,564
OTHER (INCOME) EXPENSE:
Interest expense, net		71,969			5,658			6,774			—			84,401
Expenses associated with debt refinancing transactions		493			109			—			—			602
Other (income) expense		(363	)		72			335			(208	)		(164	)
		72,099			5,839			7,109			(208	)		84,839
INCOME BEFORE INCOME TAXES		84,906			112,082			(471	)		208			196,725
Income tax expense		(1,710	)		(6,129	)		—			—			(7,839	)
INCOME BEFORE EQUITY IN SUBSIDIARIES		83,196			105,953			(471	)		208			188,886
Income from equity in subsidiaries		105,690			—			—			(105,690	)		—
NET INCOME	$	188,886		$	105,953		$	(471	)	$	(105,482	)	$	188,886

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

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 CASH FLOWS

For the year ended December 31, 2019

(in thousands)

	Parent			Combined Subsidiary Guarantors			Non- Guarantor Subsidiaries			Consolidating Adjustments And Other		Total Consolidated Amounts
Net cash provided by operating activities	$	284,933		$	61,845		$	7,606		$	—	$	354,384
Net cash used in investing activities		(71,312	)		(79,477	)		(93,800	)		—		(244,589	)
Net cash provided by (used in) financing activities		(179,303	)		22,600			91,864			—		(64,839	)
Net increase in cash, cash equivalents and restricted cash		34,318			4,968			5,670			—		44,956
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of year		11,109			40,348			22,680			—		74,137
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of year	$	45,427		$	45,316		$	28,350		$	—		119,093

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

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