At December 31, 2021, CoreCivic owned 67 correctional, detention, and residential reentry real estate properties, and 10 properties for lease to third parties. At December 31, 2021, CoreCivic also managed five correctional and detention facilities owned by governmental agencies.

	December 31,
	2021			2020
Land and improvements	$	247,525		$	253,289
Buildings and improvements		3,175,090			3,171,307
Equipment and software		436,831			420,894
Office furniture and fixtures		38,256			37,704
Construction in progress		43,263			26,466
		3,940,965			3,909,660
Less: Accumulated depreciation		(1,657,709	)		(1,559,388	)
	$	2,283,256		$	2,350,272

Construction in progress primarily consists of property improvements in process. Interest is capitalized on construction in progress and amounted to $0.4 million, $0.5 million, and $6.0 million in 2021, 2020, and 2019, respectively.

Depreciation expense was $132.9 million, $141.7 million, and $137.7 million for the years ended December 31, 2021, 2020, and 2019, respectively.

Ten of the facilities owned by CoreCivic are subject to options that allow various governmental agencies to purchase those facilities. Certain of these options to purchase are based on a depreciated book value while others are based on a fair market value calculation. Four of the facilities that are subject to options are accounted for in accordance with ASC 853 and are recorded in other real estate assets on the consolidated balance sheets, as further described in Note 2. As of December 31, 2021 and 2020, CoreCivic had $218.9 million and $228.2 million, respectively in other real estate assets, including $140.5 million and $143.6 million, respectively, accounted for as a contract cost and $78.4 million and $84.6 million, respectively, accounted for as costs of fulfilling the related service contract.

In June 2013, CoreCivic entered into an Economic Development Agreement ("EDA") with the Development Authority of Telfair County ("Telfair County") in Telfair County, Georgia to implement a tax abatement plan related to CoreCivic's bed expansion project at its McRae Correctional Facility. The tax abatement plan provides for 90% abatement of real property taxes in the first year, decreasing by 10% over the subsequent nine years. In June 2013, Telfair County issued bonds in a maximum principal amount of $15.0 million. According to the EDA, legal title of CoreCivic's real property was transferred to Telfair County. Pursuant to the EDA, the bonds were issued to CoreCivic, so no cash exchanged hands. Telfair County then leased the real property back to CoreCivic. The lease payments are equal to the amount of the payments on the bonds. At any time, CoreCivic has the option to purchase the real property by paying off the bonds, plus $100. Due to the form of the transactions, CoreCivic has not recorded the bonds or the capital lease associated with the sale lease-back transaction. The original cost of CoreCivic's property and equipment is recorded on the balance sheet and is being depreciated over its estimated useful life.