SEGMENT REPORTING

9 Months Ended

Sep. 30, 2021

SEGMENT REPORTING

10. SEGMENT REPORTING

As of September 30, 2021, CoreCivic operated 47 correctional and detention facilities, 42 of which the Company owned.  In addition, CoreCivic owned and operated 26 residential reentry centers and owned 9 properties for lease to third parties.  Management views CoreCivic's operating results in three operating segments, CoreCivic Safety, CoreCivic Community, and CoreCivic Properties.  CoreCivic Safety includes the operating results of those correctional and detention facilities placed into service that were owned, or controlled via a long-term lease, and managed by CoreCivic, as well as those correctional and detention facilities owned by a third party and managed by CoreCivic.  CoreCivic Safety also includes the operating results of TransCor America, LLC, a subsidiary of the Company that provides transportation services to governmental agencies.  CoreCivic Community includes the operating results of those residential reentry centers placed into service that were owned, or controlled via a long-term lease, and managed by CoreCivic.  CoreCivic Community also includes the operating results of the Company's electronic monitoring and case management services. CoreCivic Properties includes the operating results of those properties leased to third parties.  The operating performance of the three segments can be measured based on their net operating income.  CoreCivic defines facility net operating income as a facility's revenues less operating expenses.  

The revenue and facility net operating income for each of the three segments and a reconciliation to CoreCivic's income before income taxes is as follows for the three and nine months ended September 30, 2021 and 2020 (in thousands):

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2021			2020			2021			2020
Revenue:
Safety	$	431,534		$	420,032		$	1,261,183		$	1,281,914
Community		25,535			24,067			74,122			80,670
Properties		13,940			24,134			54,927			69,296
Total segment revenue		471,009			468,233			1,390,232			1,431,880
Operating expenses:
Safety		314,283			319,335			926,990			973,811
Community		20,427			21,095			61,551			67,745
Properties		3,381			7,411			15,323			21,271
Total segment operating expenses		338,091			347,841			1,003,864			1,062,827
Facility net operating income:
Safety		117,251			100,697			334,193			308,103
Community		5,108			2,972			12,571			12,925
Properties		10,559			16,723			39,604			48,025
Total facility net operating income		132,918			120,392			386,368			369,053
Other revenue (expense):
Other revenue		185			33			251			128
Other operating expense		(101	)		(86	)		(282	)		(342	)
General and administrative		(34,600	)		(35,883	)		(97,358	)		(97,307	)
Depreciation and amortization		(33,991	)		(37,865	)		(100,787	)		(114,436	)
Contingent consideration for acquisition for businesses		—			(620	)		—			(620	)
Shareholder litigation expense		—			—			(54,295	)		—
Asset impairments		(5,177	)		(805	)		(9,351	)		(13,058	)
Interest expense, net		(20,653	)		(20,193	)		(62,303	)		(63,727	)
Expenses associated with debt repayments      and refinancing transactions		—			—			(52,167	)		—
Gain on sale of real estate assets, net		—			2,102			38,766			4,920
Other income (expense)		49			11			(107	)		713
Income before income taxes	$	38,630		$	27,086		$	48,735		$	85,324

The following table summarizes capital expenditures including accrued amounts for the three and nine months ended September 30, 2021 and 2020 (in thousands):

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2021		2020		2021		2020
Capital expenditures:
Safety	$	14,598	$	11,856	$	33,519	$	25,261
Community		525		515		1,609		1,553
Properties		3,729		3,177		7,034		102,446
Corporate and other		1,012		1,239		10,562		4,859
Total capital expenditures	$	19,864	$	16,787	$	52,724	$	134,119

The total assets are as follows (in thousands):

	September 30, 2021		December 31, 2020
Assets:
Safety	$	2,494,179	$	2,589,622
Community		228,529		234,475
Properties		355,886		676,374
Corporate and other		543,383		208,844
Total Assets	$	3,621,977	$	3,709,315