INVESTMENT IN AFFILIATE

12 Months Ended

Dec. 31, 2024

Agecroft Prison Management Ltd

INVESTMENT IN AFFILIATE

6.INVESTMENT IN AFFILIATE

CoreCivic has a 50% ownership interest in Agecroft Prison Management Ltd. ("APM"), an entity holding the management contract for a correctional facility, HM Prison Forest Bank, under a 25-year prison management contract with an agency of the United Kingdom government. CoreCivic has determined that its joint venture investment in APM represents a variable interest entity ("VIE") in accordance with ASC 810, "Consolidation" of which CoreCivic is not the primary beneficiary. The Forest Bank facility, located in Salford, England, which was sold in April 2001, was previously constructed and owned by a wholly-owned subsidiary of CoreCivic. All gains and losses under the joint venture are accounted for using the equity method of accounting. During 2000, CoreCivic extended a working capital loan to APM, which has an outstanding balance of $2.8 million as of December 31, 2024 and is reported in prepaid expenses and other current assets on the accompanying consolidated balance sheets. This note was repaid in the first quarter of 2025.

For the years ended December 31, 2024 and 2023, equity in earnings of the joint venture was $2.3 million and $325,000, respectively. For the year ended December 31, 2022, equity in losses of the joint venture was $124,000. The equity in earnings and losses of the joint venture is included in other income (expense) in the consolidated statements of operations.