CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF CORECIVIC AND SUBSIDIARIES (Tables)

12 Months Ended

Dec. 31, 2017

As of December 31, 2017

(in thousands)

ASSETS	Parent		Combined Subsidiary Guarantors		Consolidating Adjustments and Other			Total Consolidated Amounts
Cash and cash equivalents	$	25,745	$	26,438	$	—		$	52,183
Accounts receivable, net of allowance		211,673		372,755		(330,240	)		254,188
Prepaid expenses and other current assets		1,835		24,986		(5,702	)		21,119
Total current assets		239,253		424,179		(335,942	)		327,490
Property and equipment, net		2,467,166		335,283		—			2,802,449
Goodwill		26,031		14,896		—			40,927
Non-current deferred tax assets		—		13,193		(379	)		12,814
Other assets		421,474		69,117		(401,873	)		88,718
Total assets	$	3,153,924	$	856,668	$	(738,194	)	$	3,272,398
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses	$	251,011	$	362,701	$	(335,908	)	$	277,804
Income taxes payable		1,443		1,591		—			3,034
Current portion of long-term debt		10,000		—		—			10,000
Total current liabilities		262,454		364,292		(335,908	)		290,838
Long-term debt, net		1,437,982		114,205		(115,000	)		1,437,187
Non-current deferred tax liabilities		379		—		(379	)		—
Deferred revenue		—		39,735		—			39,735
Other liabilities		1,501		51,529		—			53,030
Total liabilities		1,702,316		569,761		(451,287	)		1,820,790

Total stockholders' equity		1,451,608		286,907		(286,907	)		1,451,608
Total liabilities and stockholders' equity	$	3,153,924	$	856,668	$	(738,194	)	$	3,272,398

CONDENSED CONSOLIDATING BALANCE SHEET

As of December 31, 2016

(in thousands)

ASSETS	Parent		Combined Subsidiary Guarantors		Consolidating Adjustments and Other			Total Consolidated Amounts
Cash and cash equivalents	$	11,378	$	26,333	$	—		$	37,711
Accounts receivable, net of allowance		237,495		270,952		(278,562	)		229,885
Prepaid expenses and other current assets		7,582		30,123		(6,477	)		31,228
Total current assets		256,455		327,408		(285,039	)		298,824
Property and equipment, net		2,493,025		344,632		—			2,837,657
Goodwill		23,231		15,155		—			38,386
Non-current deferred tax assets		—		14,056		(321	)		13,735
Other assets		339,391		57,873		(314,262	)		83,002
Total assets	$	3,112,102	$	759,124	$	(599,622	)	$	3,271,604
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses	$	203,074	$	342,072	$	(285,039	)	$	260,107
Income taxes payable		1,850		236		—			2,086
Current portion of long-term debt		10,000		—		—			10,000
Total current liabilities		214,924		342,308		(285,039	)		272,193
Long-term debt, net		1,436,186		113,983		(115,000	)		1,435,169
Non-current deferred tax liabilities		321		—		(321	)		—
Deferred revenue		—		53,437		—			53,437
Other liabilities		1,708		50,134		—			51,842
Total liabilities		1,653,139		559,862		(400,360	)		1,812,641

Total stockholders' equity		1,458,963		199,262		(199,262	)		1,458,963
Total liabilities and stockholders' equity	$	3,112,102	$	759,124	$	(599,622	)	$	3,271,604

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 OPERATIONS

For the year ended December 31, 2016

(in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	1,182,765		$	1,542,231		$	(875,211	)	$	1,849,785
EXPENSES:
Operating		904,750			1,246,047			(875,211	)		1,275,586
General and administrative		35,440			71,587			—			107,027
Depreciation and amortization		84,842			81,904			—			166,746
Restructuring charges		197			3,813			—			4,010
		1,025,229			1,403,351			(875,211	)		1,553,369
OPERATING INCOME		157,536			138,880			—			296,416
OTHER (INCOME) EXPENSE:
Interest expense, net		51,928			15,827			—			67,755
Other (income) expense		995			(548	)		42			489
		52,923			15,279			42			68,244
INCOME BEFORE INCOME TAXES		104,613			123,601			(42	)		228,172
Income tax expense		(1,896	)		(6,357	)		—			(8,253	)
INCOME BEFORE EQUITY IN SUBSIDIARIES		102,717			117,244			(42	)		219,919
Income from equity in subsidiaries		117,202			—			(117,202	)		—
NET INCOME	$	219,919		$	117,244		$	(117,244	)	$	219,919

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the year ended December 31, 2015

(in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments and Other			Total Consolidated Amounts
REVENUES	$	1,184,878		$	1,469,105		$	(860,896	)	$	1,793,087
EXPENSES:
Operating		889,203			1,227,821			(860,896	)		1,256,128
General and administrative		33,248			70,688			—			103,936
Depreciation and amortization		82,745			68,769			—			151,514
Asset impairments		—			955			—			955
		1,005,196			1,368,233			(860,896	)		1,512,533
OPERATING INCOME		179,682			100,872			—			280,554
OTHER (INCOME) EXPENSE:
Interest expense, net		35,919			13,777			—			49,696
Expenses associated with debt refinancing transactions		701			—			—			701
Other (income) expense		232			(414	)		124			(58	)
		36,852			13,363			124			50,339
INCOME BEFORE INCOME TAXES		142,830			87,509			(124	)		230,215
Income tax expense		(1,541	)		(6,820	)		—			(8,361	)
INCOME BEFORE EQUITY IN SUBSIDIARIES		141,289			80,689			(124	)		221,854
Income from equity in subsidiaries		80,565			—			(80,565	)		—
NET INCOME	$	221,854		$	80,689		$	(80,689	)	$	221,854

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 and cash equivalents		14,367			105			—		14,472
CASH AND CASH EQUIVALENTS, beginning of year		11,378			26,333			—		37,711
CASH AND CASH EQUIVALENTS, end of year	$	25,745		$	26,438		$	—		52,183

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the year ended December 31, 2016

(in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments And Other			Total Consolidated Amounts
Net cash provided by operating activities	$	295,366		$	80,007		$	—		$	375,373
Net cash used in investing activities		(19,317	)		(69,571	)		(33,300	)		(122,188	)
Net cash provided by (used in) financing activities		(280,337	)		(33,728	)		33,300			(280,765	)
Net decrease in cash and cash equivalents		(4,288	)		(23,292	)		—			(27,580	)
CASH AND CASH EQUIVALENTS, beginning of year		15,666			49,625			—			65,291
CASH AND CASH EQUIVALENTS, end of year	$	11,378		$	26,333		$	—		$	37,711

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the year ended December 31, 2015

(in thousands)

	Parent			Combined Subsidiary Guarantors			Consolidating Adjustments And Other			Total Consolidated Amounts
Net cash provided by operating activities	$	102,371		$	297,427		$	—		$	399,798
Net cash used in investing activities		(93,891	)		(212,215	)		(103,175	)		(409,281	)
Net cash provided by (used in) financing activities		(5,151	)		(97,643	)		103,175			381
Net (decrease) increase in cash and cash equivalents		3,329			(12,431	)		—			(9,102	)
CASH AND CASH EQUIVALENTS, beginning of year		12,337			62,056			—			74,393
CASH AND CASH EQUIVALENTS, end of year	$	15,666		$	49,625		$	—		$	65,291