SEGMENT REPORTING

3 Months Ended

Mar. 31, 2025

SEGMENT REPORTING

9.SEGMENT REPORTING

The President and Chief Operating Officer of the Company is identified as the Chief Operating Decision Maker ("CODM") as defined by ASU 2023-07, "Improvements to Reportable Segment Disclosures (Topic 280)". The CODM routinely reviews segment net operating income compared to budget and prior periods to assess performance and allocate resources within reportable segments. As of March 31, 2025, CoreCivic operated 43 correctional and detention facilities, 39 of which the Company owned or controlled via a long-term lease. In addition, CoreCivic operated 21 residential reentry centers, which it owned or controlled via a long-term lease, and owned 6 properties held for lease to government agencies. Management views CoreCivic's operating results in three operating segments, CoreCivic Safety, CoreCivic Community, and CoreCivic Properties, each of which is a reportable segment. 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 held for lease to government agencies. 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 months ended March 31, 2025 and 2024 (in thousands):

	For the Three Months Ended March 31,
	2025			2024
Revenue:
Safety	$	454,184		$	457,746
Community		29,708			29,900
Properties		4,642			13,039
Total segment revenue		488,534			500,685
Operating expenses:(1)
Safety		347,983			350,098
Community		23,613			24,144
Properties		3,123			3,835
Total segment operating expenses		374,719			378,077
Facility net operating income:
Safety		106,201			107,648
Community		6,095			5,756
Properties		1,519			9,204
Total facility net operating income		113,815			122,608
Other revenue (expense):
Other revenue		93			1
Other operating expense		(18	)		(26	)
General and administrative		(36,016	)		(36,465	)
Depreciation and amortization		(30,518	)		(31,730	)
Interest expense, net		(15,231	)		(18,613	)
Expenses associated with debt repayments     and refinancing transactions		—			(27,242	)
Gain on sale of real estate assets, net		—			568
Other expense		(35	)		(58	)
Income before income taxes	$	32,090		$	9,043

(1) Salaries and benefits expense is the only significant reportable segment expense regularly reviewed by the CODM for both the Safety and Community segments and represents the majority of segment-level operating expenses given that substantial staff are required to operate the facilities and is the primary factor that drives operating expenses and profitability. Conversely, the Properties segment does not have a significant segment expense given the fact that those properties are operated by government agencies. The following table summarizes the significant segment expense, along with other segment operating expenses to reconcile to total segment operating expenses for both the Safety and Community segments, for the three months ended March 31, 2025 and 2024 (in thousands):

	For the Three Months Ended March 31,
	2025		2024
Safety:
Salaries and benefits	$	220,651	$	218,405
Other segment operating expenses (1)		127,332		131,693
Safety operating expenses		347,983		350,098
Community:
Salaries and benefits		13,204		13,640
Other segment operating expenses (1)		10,409		10,504
Community operating expenses	$	23,613	$	24,144

(1) Other segment operating expenses for each reportable segment include, but are not limited to, utilities, property taxes, repairs and maintenance, food, medical, vocational and educational programming, personal care and other resident supplies.

The following table summarizes capital expenditures including accrued amounts for the three months ended March 31, 2025 and 2024 (in thousands):

	For the Three Months Ended March 31,
	2025		2024
Capital expenditures:
Safety	$	20,030	$	7,497
Community		1,014		1,907
Properties		311		305
Corporate and other		3,174		908
Total capital expenditures	$	24,529	$	10,617

The total assets are as follows (in thousands):

	March 31, 2025		December 31, 2024
Assets:
Safety	$	2,261,864	$	2,147,369
Community		202,078		204,782
Properties		384,307		386,913
Corporate and other		154,197		192,827
Total assets	$	3,002,446	$	2,931,891