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What changed in CoreCivic, Inc.'s 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of CoreCivic, Inc.'s 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+681 added−780 removedSource: 10-K (2023-12-31) vs 10-K (2022-12-31)

Top changes in CoreCivic, Inc.'s 2023 10-K

681 paragraphs added · 780 removed · 461 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

162 edited+91 added−113 removed111 unchanged
Biggest changeThe requesting agency selects a provider believed to be able to provide the requested bed capacity, if needed, and most qualified to provide the requested services, and then negotiates the price and terms of the contract with that provider. 2022 Accomp lishments In spite of the continued challenges presented by the actions related to COVID-19 and the challenging labor market in 2022, we renewed several significant contracts and completed numerous other transactions and milestones, including the following: CoreCivic Safety: • Introduced MaxxContent as a pilot program at each of our Crossroads Correctional Center in Montana, our Lee Adjustment Center in Kentucky, our Red Rock Correctional Center in Arizona, our Trousdale Turner Correctional Center in Tennessee, and our La Palma Correctional Center in Arizona.
Biggest changeThe requesting agency selects a provider believed to be able to provide the requested bed capacity, if needed, and most qualified to provide the requested services, and then negotiates the price and terms of the contract with that provider. 17 2023 Accomp lishments In spite of the continued challenges presented by the actions in response to COVID-19 and the challenging labor market in 2023, we renewed several significant contracts and completed numerous other transactions and milestones, including the following: CoreCivic Safety: • Renewed all of the 18 management contracts scheduled to expire during 2023. • Entered into a new management contract with Hinds County, Mississippi to care for up to 250 adult male pre-trial detainees at our Tallahatchie County Correctional Facility in Tutwiler, Mississippi. • Entered into a new management contract with the state of Wyoming to care for up to 240 male inmates at the Tallahatchie County Correctional Facility. • Entered into a new management contract with Harris County, Texas, to care for up to 360 male inmates at the Tallahatchie County Correctional Facility. • Entered into a new management contract with the state of Montana to care for up to 120 inmates at our 1,896-bed Saguaro Correctional Facility in Eloy, Arizona. • Served our customer's unique surge in demand by accommodating and managing an average daily ICE population that more than doubled following the expiration of Title 42 in May 2023. • Deployed ResNet at approximately 20 of our correctional facilities, which involved the installation of a secure controlled network, and the addition of an average of 20 new Microsoft® Surface laptops at each of these sites.
CoreCivic Safety also includes the operating results of our subsidiary that provides transportation services to governmental agencies, TransCor America, LLC, or TransCor. • CoreCivic Community segment, consisting of the 23 residential reentry centers that are owned, or controlled via a long-term lease, and managed by CoreCivic.
CoreCivic Safety also includes the operating results of our subsidiary that provides transportation services to governmental agencies, TransCor America, LLC, or TransCor. • CoreCivic Community segment, consisting of 23 residential reentry centers that are owned, or controlled via a long-term lease, and managed by CoreCivic.
Our trade programs are certified by the National Center for Construction Education and Research, or NCCER. This progressive program has evolved into curricula for more than 70 craft and maintenance areas and a complete series of more than 70 assessments offered in over 6,000 NCCER-accredited training and assessment locations across the United States.
Our construction trade programs are certified by the National Center for Construction Education and Research, or NCCER. This progressive program has evolved into curricula for more than 70 craft and maintenance areas and a complete series of more than 70 assessments offered in over 6,000 NCCER-accredited training and assessment locations across the United States.
We believe that we can further develop our business by, among other things: 17 • Maintaining and expanding our existing customer relationships and filling existing capacity within our facilities, while maintaining an adequate inventory of available capacity that we believe provides us with flexibility and a competitive advantage when bidding for new management contracts; • Enhancing the terms of our existing contracts and expanding the services we provide under those contracts; • Pursuing additional opportunities to lease our facilities to government and other third-party operators in need of correctional, detention, and residential reentry capacity; • Pursuing mission-critical real estate solutions for government agencies focused on corrections and detention real estate assets; • Pursuing other asset acquisitions and business combinations through transactions with non-government third parties; • Maintaining and expanding our focus on community corrections and reentry programming that align with the needs of our government partners; • Exploring potential opportunities to expand the scope of non-residential correctional alternative solutions we provide to government agencies; and • Establishing relationships with new customers that have either previously not outsourced their correctional facility management needs or have utilized other private enterprises.
We believe that we can further develop our business by, among other things: • Maintaining and expanding our existing customer relationships and filling existing capacity within our facilities, while maintaining an adequate inventory of available capacity that we believe provides us with flexibility and a competitive advantage when bidding for new management contracts; • Enhancing the terms of our existing contracts and expanding the services we provide under those contracts; • Pursuing additional opportunities to lease our facilities to government and other third-party operators in need of correctional, detention, and residential reentry capacity; • Pursuing mission-critical real estate solutions for government agencies focused on corrections and detention real estate assets; • Pursuing other asset acquisitions and business combinations through transactions with non-government third parties; • Maintaining and expanding our focus on community corrections and reentry programming that align with the needs of our government partners; • Exploring potential opportunities to expand the scope of non-residential correctional alternative solutions we provide to government agencies; and • Establishing relationships with new customers that have either previously not outsourced their correctional facility management needs or have utilized other private enterprises.
We believe these critical reentry programs help fight the serious challenge of recidivism facing the United States. Through our community corrections facilities, we provide an array of services to defendants and offenders who are serving their full sentence, the last portion of their sentence, waiting to be sentenced, or awaiting trial while supervised in a community environment.
We believe these critical reentry programs help fight the serious challenge of recidivism facing the United States. 11 Through our community corrections facilities, we provide an array of services to defendants and offenders who are serving their full sentence, the last portion of their sentence, waiting to be sentenced, or awaiting trial while supervised in a community environment.
The BOP has experienced a steady decline in inmate populations over the last decade, a trend that has been accelerated by the COVID-19 pandemic. Our remaining prison contract with the BOP at the 1,978-bed McRae Correctional Facility expired on November 30, 2022, and was not renewed.
The BOP has experienced a steady decline in inmate populations over the last decade, a trend that was accelerated by the COVID-19 pandemic. Our remaining prison contract with the BOP at the 1,978-bed McRae Correctional Facility expired on November 30, 2022 and was not renewed.
In addition, we evaluate internal pay equity though the use of job evaluation and market analyses that we then adjust for tenure, experience, location, performance, and other variables that can affect wages. We have experienced labor shortages and wage pressures in many markets across the country.
In addition, we evaluate internal pay equity though the use of job evaluation and market analyses 35 that we then adjust for tenure, experience, location, performance, and other variables that can affect wages. We have experienced labor shortages and wage pressures in many markets across the country.
We pioneered modern-day private prisons with a list of notable accomplishments, such as: • the first company to design, build, and operate a private prison; • the first company to manage a private maximum-security facility under a direct contract with the federal government; • the first company to purchase a government-owned correctional facility from a government agency in the United States and to manage the facility for the government agency; • the first company to lease a private prison to a state government; and • the first company to develop a privately-owned, build-to-suit correctional facility to be operated by a government agency through a long-term lease agreement. 29 In addition to providing us with extensive experience and institutional knowledge, our size also helps us deliver value to our customers by providing purchasing power and allowing us to achieve certain economies of scale.
We pioneered modern-day private prisons with a list of notable accomplishments, such as: • the first company to design, build, and operate a private prison; • the first company to manage a private maximum-security facility under a direct contract with the federal government; • the first company to purchase a government-owned correctional facility from a government agency in the United States and to manage the facility for the government agency; • the first company to lease a private prison to a state government; and • the first company to develop a privately-owned, build-to-suit correctional facility to be operated by a government agency through a long-term lease agreement. 28 In addition to providing us with extensive experience and institutional knowledge, our size also helps us deliver value to our customers by providing purchasing power and allowing us to achieve certain economies of scale.
It is too early to predict the outcome of the expiration of the contract scheduled to expire in September 2025, and future developments could occur prior to the scheduled expiration date . 15 In March 2020, the World Health Organization declared the outbreak of COVID-19 as a pandemic.
It is too early to predict the outcome of the expiration of the contract scheduled to expire in September 2025, and future developments could occur prior to the scheduled expiration date. In March 2020, the World Health Organization declared the outbreak of COVID-19 as a pandemic.
The primary functional categories are: • Correctional Facilities . Correctional facilities care for and provide contractually agreed upon programs and services to sentenced adult prisoners, typically prisoners on whom a sentence in excess of one year has been imposed. • Detention Facilities .
The primary functional categories are: • Correctional Facilities . Correctional facilities care for and provide contractually agreed upon programs and services primarily to sentenced adult prisoners, typically prisoners on whom a sentence in excess of one year has been imposed. • Detention Facilities .
Failure to comply with these regulations and contract requirements can result in material penalties or non-renewal or termination of facility management contracts which could have a material effect on our financial position, results of operations and cash flows, or on our competitive position as a dependable government partner. 37 Environmental Matters Under various federal, state, and local environmental laws, ordinances and regulations, a current or previous owner or operator of real property may be liable for the costs of removal or remediation of hazardous or toxic substances on, under, or in such property.
Failure to comply with these regulations and contract requirements can result in material penalties or non-renewal or termination of facility management contracts which could have a material effect on our financial position, results of operations and cash flows, or on our competitive position as a dependable government partner. 36 Environmental Matters Under various federal, state, and local environmental laws, ordinances and regulations, a current or previous owner or operator of real property may be liable for the costs of removal or remediation of hazardous or toxic substances on, under, or in such property.
In 2022, our programs in the state of Colorado partnered with a financial institution to conduct classes with our residents on financial wellness, including the importance of having a savings account, the importance of, and how to establish, credit, and how to establish a bank account.
Beginning in 2022, our programs in the state of Colorado partnered with a financial institution to conduct classes with our residents on financial wellness, including the importance of having a savings account, the importance of, and how to establish, credit, and how to establish a bank account.
Don Hutto Residential Center ICE 512 Medium Detention Jul-23 (7) 1 year Taylor, Texas Webb County Detention Center ICE 480 Medium Detention Feb-23 Indefinite Laredo, Texas Safety - Managed Only: Citrus County Detention Facility Citrus County, FL 760 Multi Detention Sep-30 (2) 5 year Lecanto, Florida Lake City Correctional Facility State of Florida 893 Medium Correctional Jun-24 Indefinite Lake City, Florida Hardeman County Correctional Facility State of Tennessee 2,016 Medium Correctional Jun-24 — Whiteville, Tennessee South Central Correctional Center State of Tennessee 1,676 Medium Correctional Jun-23 (1) 2 year Clifton, Tennessee Total design capacity for CoreCivic Safety Facilities 66,399 24 Facility Name Primary Customer Design Capacity (A) Security Level Facility Type (B) Term Remaining Renewal Options (C) CoreCivic Community Facilities: CAI Boston Avenue State of California 120 — Community Jun-24 — San Diego, California Corrections CAI Ocean View BOP 483 — Community Aug-23 (3) 1 year San Diego, California Corrections Adams Transitional Center Adams County 102 — Community Jun-23 Indefinite Denver, Colorado Corrections Arapahoe Community Treatment Center Arapahoe County 135 — Community Corrections Jun-23 — Englewood, Colorado Centennial Community Transition Center Arapahoe County 107 — Community Corrections Jun-23 — Englewood, Colorado Columbine Facility * Idled 2020 60 — Community — — Denver, Colorado Corrections Commerce Transitional Center Adams County 136 — Community Jun-23 Indefinite Commerce City, Colorado Corrections Dahlia Facility Denver County 120 — Community Jun-23 — Denver, Colorado Corrections Longmont Community Treatment Center Boulder County 69 — Community Corrections Jun-23 (1) 1 year and Longmont, Colorado (1) 6 month South Raleigh Reentry Center BOP 60 — Community Sep-23 (4) 1 year Raleigh, North Carolina Corrections Oklahoma Reentry Opportunity Center BOP 494 — Community Jan-24 (2) 1 year Oklahoma City, Oklahoma Corrections Tulsa Transitional Center Idled 2020 390 — Community — — Tulsa, Oklahoma Corrections Turley Residential Center BOP 289 — Community Jan-24 (2) 1 year Tulsa, Oklahoma Corrections Austin Residential Reentry Center BOP 116 — Community Aug-23 (1) 1 year Del Valle, Texas Corrections Austin Transitional Center State of Texas 460 — Community Aug-23 — Del Valle, Texas Corrections Corpus Christi Transitional Center State of Texas 160 — Community Aug-23 (2) 2 year Corpus Christi, Texas Corrections 25 Facility Name Primary Customer Design Capacity (A) Security Level Facility Type (B) Term Remaining Renewal Options (C) Dallas Transitional Center State of Texas 300 — Community Aug-23 — Hutchins, Texas Corrections El Paso Multi-Use Facility State of Texas 360 — Community Aug-23 — El Paso, Texas Corrections El Paso Transitional Center State of Texas 224 — Community Aug-23 — El Paso, Texas Corrections Fort Worth Transitional Center State of Texas 248 — Community Aug-23 — Fort Worth, Texas Corrections Ghent Residential Reentry Center BOP 36 — Community Aug-23 (4) 1 year Norfolk, Virginia Corrections James River Residential Reentry Center BOP 84 — Community Corrections Aug-23 (4) 1 year Newport News, Virginia Cheyenne Transitional Center State of Wyoming 116 — Community Jun-24 (2) 1 year and Cheyenne, Wyoming Corrections (1) 1 year Total design capacity for CoreCivic Community Facilities 4,669 *Held for Sale 26 (A) Design capacity measures the number of beds, and accordingly, the number of offenders each facility is designed to accommodate.
Don Hutto Residential Center ICE 512 Medium Detention Jul-24 (6) 1 year Taylor, Texas Webb County Detention Center ICE 480 Medium Detention Feb-24 Indefinite Laredo, Texas Safety - Managed Only: Citrus County Detention Facility Citrus County, FL 760 Multi Detention Sep-30 (2) 5 year Lecanto, Florida Lake City Correctional Facility State of Florida 893 Medium Correctional Jun-24 Indefinite Lake City, Florida Hardeman County Correctional Facility State of Tennessee 2,016 Medium Correctional Jun-25 (1) 2 year Whiteville, Tennessee South Central Correctional Center State of Tennessee 1,676 Medium Correctional Jun-25 — Clifton, Tennessee Total design capacity for CoreCivic Safety Facilities 64,729 23 Facility Name Primary Customer Design Capacity (A) Security Level Facility Type (B) Term Remaining Renewal Options (C) CoreCivic Community Facilities: CAI Boston Avenue State of California 120 — Community Jun-24 — San Diego, California Corrections CAI Ocean View BOP 483 — Community Aug-24 (2) 1 year San Diego, California Corrections Adams Transitional Center Adams County 102 — Community Jun-24 Indefinite Denver, Colorado Corrections Arapahoe Community Treatment Center Arapahoe County 135 — Community Corrections Jun-24 — Englewood, Colorado Centennial Community Transition Center Arapahoe County 107 — Community Corrections Jun-24 — Englewood, Colorado Columbine Facility Idled 2020 60 — Community — — Denver, Colorado Corrections Commerce Transitional Center Adams County 136 — Community Jun-24 Indefinite Commerce City, Colorado Corrections Dahlia Facility* Denver County 120 — Community Jun-24 — Denver, Colorado Corrections Longmont Community Treatment Center Boulder County 69 — Community Corrections Jun-24 (1) 6 month Longmont, Colorado South Raleigh Reentry Center BOP 60 — Community Sep-24 (3) 1 year Raleigh, North Carolina Corrections Oklahoma Reentry Opportunity Center BOP 494 — Community Jan-25 (1) 1 year Oklahoma City, Oklahoma Corrections Tulsa Transitional Center Idled 2020 390 — Community — — Tulsa, Oklahoma Corrections Turley Residential Center BOP 289 — Community Jan-25 (1) 1 year Tulsa, Oklahoma Corrections Austin Residential Reentry Center BOP 116 — Community Aug-24 — Del Valle, Texas Corrections Austin Transitional Center State of Texas 460 — Community Aug-25 (3) 1 year Del Valle, Texas Corrections Corpus Christi Transitional Center State of Texas 160 — Community Aug-25 (1) 2 year Corpus Christi, Texas Corrections 24 Facility Name Primary Customer Design Capacity (A) Security Level Facility Type (B) Term Remaining Renewal Options (C) Dallas Transitional Center State of Texas 300 — Community Aug-25 (3) 1 year Hutchins, Texas Corrections El Paso Multi-Use Facility State of Texas 360 — Community Aug-25 (3) 1 year El Paso, Texas Corrections El Paso Transitional Center State of Texas 224 — Community Aug-25 (3) 1 year El Paso, Texas Corrections Fort Worth Transitional Center State of Texas 248 — Community Aug-25 (3) 1 year Fort Worth, Texas Corrections Ghent Residential Reentry Center BOP 36 — Community Aug-24 (3) 1 year Norfolk, Virginia Corrections James River Residential Reentry Center BOP 84 — Community Corrections Aug-24 (3) 1 year Newport News, Virginia Cheyenne Transitional Center State of Wyoming 116 — Community Jun-24 (2) 1 year and Cheyenne, Wyoming Corrections (1) 1 year Total design capacity for CoreCivic Community Facilities 4,669 *Held for Sale 25 (A) Design capacity measures the number of beds, and accordingly, the number of offenders each facility is designed to accommodate.
In addition, revenue derived from our facilities will be affected by a number of factors, including the demand for beds, general economic conditions, and the age of the general population. 39
In addition, revenue derived from our facilities will be affected by a number of factors, including the demand for beds, general economic conditions, and the age of the general population.
(B) We manage numerous facilities that have more than a single function (i.e., housing both long-term sentenced adult prisoners and pre-trial detainees). The primary functional categories into which facility types are identified were determined by the relative size of offender populations in a particular facility on December 31, 2022.
(B) We manage numerous facilities that have more than a single function (i.e., housing both long-term sentenced adult prisoners and pre-trial detainees). The primary functional categories into which facility types are identified were determined by the relative size of offender populations in a particular facility on December 31, 2023.
The following table includes certain information regarding each facility, including the term of the primary customer contract related to such facility. 21 Facility Name Primary Customer Design Capacity (A) Security Level Facility Type (B) Term Remaining Renewal Options (C) CoreCivic Safety Facilities: Safety - Owned and Managed: Central Arizona Florence Correctional Complex USMS 4,128 Multi Detention Sep-23 (1) 5 year Florence, Arizona Eloy Detention Center ICE 1,500 Medium Detention Indefinite — Eloy, Arizona La Palma Correctional Center State of Arizona 3,060 Multi Correctional Apr-27 (1) 5 year Eloy, Arizona Red Rock Correctional Center (D) State of Arizona 2,024 Medium Correctional Jul-26 (2) 5 year Eloy, Arizona Saguaro Correctional Facility State of Hawaii 1,896 Multi Correctional Jul-24 (2) 1 year Eloy, Arizona Leo Chesney Correctional Center Idled 2015 240 — — — — Live Oak, California Otay Mesa Detention Center ICE 1,994 Minimum/ Detention Dec-24 (2) 5 year San Diego, California Medium Bent County Correctional Facility State of Colorado 1,420 Medium Correctional Jun-23 (3) 1 year Las Animas, Colorado Crowley County Correctional Facility State of Colorado 1,794 Medium Correctional Jun-23 (3) 1 year Olney Springs, Colorado Huerfano County Correctional Center Idled 2010 752 Medium Correctional — — Walsenburg, Colorado Kit Carson Correctional Center Idled 2016 1,488 Medium Correctional — — Burlington, Colorado Coffee Correctional Facility (E) State of Georgia 2,312 Medium Correctional Jun-23 (11) 1 year Nicholls, Georgia Jenkins Correctional Center (E) State of Georgia 1,124 Medium Correctional Jun-23 (12) 1 year Millen, Georgia Stewart Detention Center ICE 1,752 Medium Detention Indefinite — Lumpkin, Georgia Wheeler Correctional Facility (E) State of Georgia 2,312 Medium Correctional Jun-23 (11) 1 year Alamo, Georgia Midwest Regional Reception Center Idled 2021 1,033 Multi Detention — — Leavenworth, Kansas Lee Adjustment Center Commonwealth of 816 Multi Correctional Jun-25 (3) 2 year Beattyville, Kentucky Kentucky 22 Facility Name Primary Customer Design Capacity (A) Security Level Facility Type (B) Term Remaining Renewal Options (C) Marion Adjustment Center Idled 2013 826 Minimum/ Correctional — — St.
The following table includes certain information regarding each facility, including the term of the primary customer contract related to such facility. 20 Facility Name Primary Customer Design Capacity (A) Security Level Facility Type (B) Term Remaining Renewal Options (C) CoreCivic Safety Facilities: Safety - Owned and Managed: Central Arizona Florence Correctional Complex USMS 4,128 Multi Detention Sep-28 — Florence, Arizona Eloy Detention Center ICE 1,500 Medium Detention Jun-28 Indefinite Eloy, Arizona La Palma Correctional Center State of Arizona 3,060 Multi Correctional Apr-27 (1) 5 year Eloy, Arizona Red Rock Correctional Center (D) State of Arizona 2,024 Medium Correctional Jul-26 (2) 5 year Eloy, Arizona Saguaro Correctional Facility State of Hawaii 1,896 Multi Correctional Jul-24 (2) 1 year Eloy, Arizona Leo Chesney Correctional Center Idled 2015 240 — — — — Live Oak, California Otay Mesa Detention Center ICE 1,994 Minimum/ Detention Dec-24 (2) 5 year San Diego, California Medium Bent County Correctional Facility State of Colorado 1,420 Medium Correctional Jun-24 (2) 1 year Las Animas, Colorado Crowley County Correctional Facility State of Colorado 1,794 Medium Correctional Jun-24 (2) 1 year Olney Springs, Colorado Huerfano County Correctional Center Idled 2010 752 Medium Correctional — — Walsenburg, Colorado Kit Carson Correctional Center Idled 2016 1,488 Medium Correctional — — Burlington, Colorado Coffee Correctional Facility (E) State of Georgia 2,312 Medium Correctional Jun-24 (10) 1 year Nicholls, Georgia Jenkins Correctional Center (E) State of Georgia 1,124 Medium Correctional Jun-24 (11) 1 year Millen, Georgia Stewart Detention Center ICE 1,752 Medium Detention Indefinite — Lumpkin, Georgia Wheeler Correctional Facility (E) State of Georgia 2,312 Medium Correctional Jun-24 (10) 1 year Alamo, Georgia Midwest Regional Reception Center Idled 2021 1,033 Multi Detention — — Leavenworth, Kansas Lee Adjustment Center Commonwealth of 816 Multi Correctional Jun-25 (3) 2 year Beattyville, Kentucky Kentucky 21 Facility Name Primary Customer Design Capacity (A) Security Level Facility Type (B) Term Remaining Renewal Options (C) Marion Adjustment Center Idled 2013 826 Minimum/ Correctional — — St.
In our CoreCivic Community segment, we own, or control via a long-term lease, 0.5 million square feet of real estate representing, as of December 31, 2022, 23 residential reentry centers with a design capacity of 4,669 beds, making us the second largest community corrections owner and operator in the United States.
In our CoreCivic Community segment, we own, or control via a long-term lease, 0.5 million square feet of real estate representing, as of December 31, 2023, 23 residential reentry centers with a design capacity of 4,669 beds, making us the second largest community corrections owner and operator in the United States.
As part of their standard monitoring and compliance programs, approximately 77% of our federal and state government partners typically conduct formal contract-compliance audits and inspections at least annually at CoreCivic Safety facilities. In addition to these annual audits of our facilities, many partners conduct additional area-specific operational audits and inspections on a more frequent basis, including monthly, quarterly, and semi-annually.
As part of their standard monitoring and compliance programs, approximately 71% of our federal and state government partners typically conduct formal contract-compliance audits and inspections at least annually at CoreCivic Safety facilities. In addition to these annual audits of our facilities, many partners conduct additional area-specific operational audits and inspections on a more frequent basis, including monthly, quarterly, and semi-annually.
Accordingly, we believe that we benefit from the following competitive strengths: Largest Private Owner of Correctional and Detention Facilities. As of December 31, 2022, we owned, or controlled via a long-term lease, approximately 14.6 million square feet of real estate, all used directly or indirectly by government agencies.
Accordingly, we believe that we benefit from the following competitive strengths: Largest Private Owner of Correctional and Detention Facilities. As of December 31, 2023, we owned, or controlled via a long-term lease, approximately 14.6 million square feet of real estate, all used directly or indirectly by government agencies.
In our CoreCivic Safety segment, we own, or control via a long-term lease, 12.3 million square feet of real estate used to provide innovative, comprehensive, flexible, turn-key correctional and detention services to federal, state and local government agencies.
In our CoreCivic Safety segment, we own, or control via a long-term lease, 12.0 million square feet of real estate used to provide innovative, comprehensive, flexible, turn-key correctional and detention services to federal, state and local government agencies.
Federal correctional and detention authorities primarily consist of U.S. Immigration and Customs Enforcement, or ICE, the USMS, and the BOP. Payments by federal correctional, detention and residential reentry authorities represented 54%, 56%, and 52% of our total revenue for the years ended December 31, 2022, 2021, and 2020, respectively.
Federal correctional and detention authorities primarily consist of U.S. Immigration and Customs Enforcement, or ICE, the USMS, and the BOP. Payments by federal correctional, detention and residential reentry authorities represented 52%, 54%, and 56% of our total revenue for the years ended December 31, 2023, 2022, and 2021, respectively.
To date, we have graduated 4,365 employees from CoreCivic University programs. For new and existing employees alike, we provide training that meets or exceeds ACA and government partner standards, including an average of 200 hours of pre-service and on-the-job training for new employees.
To date, we have graduated 4,733 employees from CoreCivic University programs. For new and existing employees alike, we provide training that meets or exceeds ACA and government partner standards, including an average of 200 hours of pre-service and on-the-job training for new employees.
Employee Safety We are committed to bettering the public good by making our facilities and communities safe for our team members, those under our care, and the public. In 2022, our "Team Safety" program continued initiatives to provide a safe environment and safe working conditions as reflected in our policies and procedures.
Employee Safety We are committed to bettering the public good by making our facilities and communities safe for our team members, those under our care, and the public. In 2023, our "Team Safety" program continued initiatives to provide a safe environment and safe working conditions as reflected in our policies and procedures.
Under our senior management team's leadership, we have successfully executed strategies to diversify our business and offer a broader range of solutions to government partners, created new business opportunities with customers that have not previously utilized the private corrections sector, completed several business combination transactions and corporate structure changes adapting to dynamic environments, and successfully completed numerous financing transactions. 33 ESG Accountability.
Under our senior management team's leadership, we have successfully executed strategies to diversify our business and offer a broader range of solutions to government partners, created new business opportunities with customers that have not previously utilized the private corrections sector, completed several business combination transactions and corporate structure changes adapting to dynamic environments, and successfully completed numerous financing transactions.
We have made significant investments and strides in the development of an executive-endorsed company roadmap for our DE&I intended outcomes and established goals. We have communicated our plans to all leaders, employees, and the BOD.
We have made significant investments and strides in the development of an executive-endorsed company roadmap for our DE&I-intended outcomes and established principles. We have communicated our plans to all leaders, employees, and the BOD.
Some of these audits and facility inspections by our partners are conducted on an unannounced basis. In 2022, our government partners conducted approximately 220 annual, semi-annual, quarterly, and monthly compliance audits and inspections at our CoreCivic Safety facilities.
Some of these audits and facility inspections by our partners are conducted on an unannounced basis. In 2023, our government partners conducted approximately 220 annual, semi-annual, quarterly, and monthly compliance audits and inspections at our CoreCivic Safety facilities.
(D) The KYDOC has an option to purchase the facility at any time during the term of the lease with us at a price equal to the fair market value of the property. 28 Competitive Strengths Through our three segments, CoreCivic Safety, CoreCivic Community, and CoreCivic Properties, we offer multiple solutions to unique challenges, allowing government organizations to address their various needs while customizing the solution based on their unique circumstances.
(C) The KYDOC has an option to purchase the facility at any time during the term of the lease with us at a price equal to the fair market value of the property. 27 Competitive Strengths Through our three segments, CoreCivic Safety, CoreCivic Community, and CoreCivic Properties, we offer multiple solutions to unique challenges, allowing government organizations to address their various needs while customizing the solution based on their unique circumstances.
We can also serve multiple levels of government on an as-needed basis, all toward reaching the goal we share with our government partners of providing offenders with the opportunity to succeed when they are released, making our communities safer, and, ultimately, reducing recidivism.
We can also serve multiple levels of government on an as-needed basis, all toward reaching the goal we share with our government partners of providing incarcerated individuals with the opportunity to succeed when they are released, making our communities safer, and, ultimately, reducing recidivism.
COVID-19 notwithstanding, we believe the demand for the housing and programs that community corrections facilities offer will grow as offenders are released from prison and due to an increased awareness of the important role these programs play in an offender's successful transition from prison to society.
We believe the demand for the housing and programs that community corrections facilities offer will grow as offenders are released from prison and due to an increased awareness of the important role these programs play in an offender's successful transition from prison to society.
MaxxContent is a custom online Learning Management System that includes content such as life skills, mental health, financial literacy, GED preparation, communications, workforce skills, and reentry preparation, and is available to students in our facility education computer labs. • In 2022, we partnered with Felon Education Project and introduced Felon Education as a pilot program at our Wheeler Correctional Facility in Georgia.
MaxxContent is a custom online Learning Management System that includes content such as life skills, mental health, financial literacy, GED preparation, communications, workforce skills, and reentry preparation, and is available to students in the education computer labs at each of the pilot program facilities. • In 2022, we partnered with Felon Education Project and introduced Felon Education as a pilot program at our Wheeler Correctional Facility in Georgia.
Mary, Kentucky Medium Prairie Correctional Facility Idled 2010 1,600 Medium Correctional — — Appleton, Minnesota Adams County Correctional Center ICE 2,232 Medium Detention Aug-24 Indefinite Adams County, Mississippi Tallahatchie County Correctional Facility (F) USMS 2,672 Multi Correctional Jun-24 Indefinite Tutwiler, Mississippi Crossroads Correctional Center (G) State of Montana 664 Multi Correctional Jun-23 (3) 2 year Shelby, Montana Nevada Southern Detention Center USMS 1,072 Medium Detention Sep-25 (1) 5 year Pahrump, Nevada Elizabeth Detention Center ICE 300 Minimum Detention Aug-23 — Elizabeth, New Jersey Cibola County Corrections Center USMS 1,129 Medium Detention Indefinite — Milan, New Mexico Torrance County Detention Facility ICE 910 Multi Detention May-24 Indefinite Estancia, New Mexico Lake Erie Correctional Institution (H) State of Ohio 1,798 Medium Correctional Jun-32 Indefinite Conneaut, Ohio Northeast Ohio Correctional Center State of Ohio 2,016 Medium Correctional Jun-32 Indefinite Youngstown, Ohio Cimarron Correctional Facility USMS 1,600 Multi Detention Sep-23 Indefinite Cushing, Oklahoma Davis Correctional Facility (I) State of Oklahoma 1,670 Multi Correctional Jun-23 — Holdenville, Oklahoma Diamondback Correctional Facility Idled 2010 2,160 Multi Correctional — — Watonga, Oklahoma Trousdale Turner Correctional Center State of Tennessee 2,552 Multi Correctional Jun-26 — Hartsville, Tennessee West Tennessee Detention Facility Idled 2021 600 Multi Detention — — Mason, Tennessee Whiteville Correctional Facility (J) State of Tennessee 1,536 Medium Correctional Jun-26 — Whiteville, Tennessee 23 Facility Name Primary Customer Design Capacity (A) Security Level Facility Type (B) Term Remaining Renewal Options (C) Eden Detention Center USMS 1,422 Medium Detention Indefinite — Eden, Texas Houston Processing Center ICE 1,000 Medium Detention Aug-23 (7) 1 year Houston, Texas Laredo Processing Center ICE 258 Minimum/ Detention Jun-23 Indefinite Laredo, Texas Medium South Texas Family Residential Center ICE 2,400 — Residential Sep-26 Indefinite Dilley, Texas T.
Mary, Kentucky Medium Prairie Correctional Facility Idled 2010 1,600 Medium Correctional — — Appleton, Minnesota Adams County Correctional Center ICE 2,232 Medium Detention Aug-24 Indefinite Adams County, Mississippi Tallahatchie County Correctional Facility (F) USMS 2,672 Multi Correctional Jun-24 Indefinite Tutwiler, Mississippi Crossroads Correctional Center (G) State of Montana 664 Multi Correctional Jun-25 (2) 2 year Shelby, Montana Nevada Southern Detention Center USMS 1,072 Medium Detention Sep-25 (1) 5 year Pahrump, Nevada Elizabeth Detention Center ICE 300 Minimum Detention Feb-24 (1) 6 month Elizabeth, New Jersey Cibola County Corrections Center USMS 1,129 Medium Detention Indefinite — Milan, New Mexico Torrance County Detention Facility ICE 910 Multi Detention May-24 Indefinite Estancia, New Mexico Lake Erie Correctional Institution (H) State of Ohio 1,798 Medium Correctional Jun-32 Indefinite Conneaut, Ohio Northeast Ohio Correctional Center State of Ohio 2,016 Medium Correctional Jun-24 Indefinite Youngstown, Ohio Cimarron Correctional Facility USMS 1,600 Multi Detention Sep-25 Indefinite Cushing, Oklahoma Diamondback Correctional Facility Idled 2010 2,160 Multi Correctional — — Watonga, Oklahoma Trousdale Turner Correctional Center State of Tennessee 2,552 Multi Correctional Jun-26 — Hartsville, Tennessee West Tennessee Detention Facility Idled 2021 600 Multi Detention — — Mason, Tennessee Whiteville Correctional Facility (I) State of Tennessee 1,536 Medium Correctional Jun-26 — Whiteville, Tennessee Eden Detention Center USMS 1,422 Medium Detention Indefinite — Eden, Texas 22 Facility Name Primary Customer Design Capacity (A) Security Level Facility Type (B) Term Remaining Renewal Options (C) Houston Processing Center ICE 1,000 Medium Detention Aug-24 (6) 1 year Houston, Texas Laredo Processing Center ICE 258 Minimum/ Detention Feb-24 Indefinite Laredo, Texas Medium South Texas Family Residential Center ICE 2,400 — Residential Sep-26 Indefinite Dilley, Texas T.
For the twelve months ended December 31, 2022, USMS and ICE accounted for 22% ($403.9 million) and 29% ($527.3 million), respectively, of our total revenue. For the twelve months ended December 31, 2021, USMS and ICE accounted for 23% ($433.6 million) and 30% ($552.2 million), respectively, of our total revenue.
For the year ended December 31, 2022, USMS and ICE accounted for 22% ($403.9 million) and 29% ($527.3 million), respectively, of our total revenue. For the year ended December 31, 2021, USMS and ICE accounted for 23% ($433.6 million) and 30% ($552.2 million), respectively, of our total revenue.
Governments are continuing to assess their need for correctional space in light of COVID-19, and several are continuing to consider alternative correctional capacity for their aged or inefficient infrastructure, or are seeking cost savings by utilizing the private sector, which could result in increased future demand for the solutions we provide.
Governments are continuing to assess their need for correctional space, and several are continuing to consider alternative correctional capacity for their aged or inefficient infrastructure, or are seeking cost savings by utilizing the private sector, which could result in increased future demand for the solutions we provide.
Governments are continuing to assess their need for correctional space in light of COVID-19, and several are continuing to consider alternative correctional capacity for their aged or inefficient infrastructure, or are seeking cost savings by utilizing the private sector, which could result in increased future demand for the solutions we provide.
Governments are continuing to assess their need for correctional space, and several are continuing to consider alternative correctional capacity for their aged or inefficient infrastructure, or are seeking cost savings by utilizing the private sector, which could result in increased future demand for the solutions we provide.
In 2022, to further expand our programming in this area, we partnered with Pivot Technology School to pilot Pivot Tech, a technology career program, at our Jenkins Correctional Center in Georgia. Pivot Tech is a five-month "boot camp" style course taught in a classroom setting with instructors participating virtually.
In 2022, to further expand our programming in this area, we partnered with Pivot Technology School to pilot Pivot Tech, a technology career program, at our Jenkins facility. Pivot Tech is a five-month "boot camp" style course taught in a classroom setting with instructors participating virtually.
ICE (29%, 30%, and 28% during 2022, 2021, and 2020, respectively) and the USMS (22%, 23%, and 21% during 2022, 2021 and 2020, respectively) each accounted for 10% or more of our total revenue during the last three years.
ICE (30%, 29%, and 30% during 2023, 2022, and 2021, respectively) and the USMS (21%, 22%, and 23% during 2023, 2022 and 2021, respectively) each accounted for 10% or more of our total revenue during the last three years.
For the years ended December 31, 2022, 2021, and 2020, our total segment net operating income, which we define as a facility's revenues (including interest income associated with finance leases) less operating expenses, was divided among our three business segments as follows: For the Years Ended December 31, 2022 2021 2020 Segment: Safety 84.1 % 85.5 % 82.2 % Community 3.9 % 3.3 % 3.4 % Properties 12.0 % 11.2 % 14.4 % Our customers primarily consist of federal, state, and local government agencies.
For the years ended December 31, 2023, 2022, and 2021, our total segment net operating income, which we define as a facility's revenues (including interest income associated with finance leases) less operating expenses, was divided among our three business segments as follows: For the Years Ended December 31, 2023 2022 2021 Segment: Safety 84.7 % 84.1 % 85.5 % Community 5.2 % 3.9 % 3.3 % Properties 10.1 % 12.0 % 11.2 % Our customers primarily consist of federal, state, and local government agencies.
We also provide retirement benefits to our employees through a 401(k) retirement plan. To be eligible for most benefit plans, employees must be in a full-time position; certain exceptions apply, such as eligibility for the 401(k) retirement plan if the 401(k) retirement plan's service and hour requirements are met or at locations where the McNamara-O'Hara Service Contract Act applies.
To be eligible for most benefit plans, employees must be in a full-time position; certain exceptions apply, such as eligibility for the 401(k) retirement plan if the 401(k) retirement plan's service and hour requirements are met or at locations where the McNamara-O'Hara Service Contract Act applies.
We believe that as successful as we may be with our work inside our facilities, offenders still face embedded societal barriers when they return to their communities. Supporting recidivism-reducing policies is one way we can bridge the gap and give the men and women entrusted in our care a better opportunity at never returning to prison. Operating guidelines.
We believe that as successful as we may be with our work inside our facilities, incarcerated individuals still face embedded societal barriers and collateral consequences when they return to their communities. Supporting recidivism-reducing policies is one way we can bridge the gap and give the men and women entrusted in our care a better opportunity at never returning to prison.
Eight facilities in our Safety segment, containing 8,699 beds, are currently idle and available for growth opportunities. Our CoreCivic Safety segment generated 84.1% of our total segment net operating income during 2022.
Eight facilities in our Safety segment, containing 8,699 beds, are currently idle and available for growth opportunities. Our CoreCivic Safety segment generated 84.7% of our total segment net operating income during 2023.
For example, in the first quarter of 2021, we activated a new contract with the BOP for residential reentry and home confinement services at our previously idled 289-bed Turley Residential Center and at our 494-bed Oklahoma Reentry Opportunity Center, both in Oklahoma. The new contract supplements the existing utilization by the state of Oklahoma at the Oklahoma Reentry Opportunity Center.
For example, in the first quarter of 2021, we activated a new contract with the BOP for residential reentry and home confinement services at our previously idled 289-bed Turley Residential Center and at our 494-bed Oklahoma Reentry Opportunity Center, both in Oklahoma.
During the third quarter of 2022, we provided wage increases to nearly all of our facility staff not covered by the McNamara-O'Hara Service Contract Act, which is applicable to our facilities with federal contracts, in order to remain competitive. Additionally, throughout the year we made out-of-cycle wage adjustments to maintain market competitiveness, often through collaboration with our government partners.
During the third quarter of 2023, we provided wage increases to nearly all of our facility staff not covered by the McNamara-O'Hara Service Contract Act, which is applicable to our facilities with federal contracts, in order to remain competitive. Additionally, throughout the year we made out-of-cycle wage adjustments to maintain market competitiveness.
We have also been in discussions with several state partners that have experienced challenges in staffing their public-sector facilities and are seeking solutions from the private sector.
We have also been in discussions with several state and county government agencies that have experienced challenges in staffing their public-sector facilities and are seeking solutions from the private sector.
For the past twelve consecutive years, CoreCivic has been recognized as a GI Jobs Military Friendly employer. For 2023, CoreCivic has been notified that we will once again receive awards for Military Friendly Employer, Military Friendly Spouse, Military Friendly Brand, and Military Friendly Supplier Diversity Program.
For the past thirteen consecutive years, CoreCivic has been recognized as a GI Jobs Military Friendly employer. CoreCivic has been notified that we will once again receive awards for Military Friendly Employer, Military Friendly Spouse, Military Friendly Brand, and Military Friendly Supplier Diversity Program in 2024.
In addition, the majority of our federal and state government partners employ on-site contract monitors who monitor performance and contract compliance at our facilities on a full- or part-time basis. In 2022, 100% of the CoreCivic Safety facilities we manage have an assigned contract monitor.
In addition, the majority of our federal and state government partners employ on-site contract monitors who monitor performance and contract compliance at our facilities on a full- or part-time basis. In 2023, 94% of the CoreCivic Safety facilities we manage had an assigned contract monitor.
These include women, military, and multicultural interests. 20 Facility Portfolio CoreCivic Safety and Community Facilities and Facility Management Contracts Our correctional, detention, and residential reentry facilities can generally be classified according to the level(s) of security at such facility. Minimum security facilities have open housing within an appropriately designed and patrolled institutional perimeter.
Facility Portfolio CoreCivic Safety and Community Facilities and Facility Management Contracts Our correctional, detention, and residential reentry facilities can generally be classified according to the level(s) of security at such facility. Minimum security facilities have open housing within an appropriately designed and patrolled institutional perimeter.
Privacy and Security Requirements The Health Insurance Portability and Accountability Act of 1996, as amended, or HIPAA, and implementing regulations, require covered entities, which include health plans, most health care providers, and health clearinghouses, to protect the privacy and security of individually identifiable health information, known as “protected health information.” The regulations also provide for individual rights related to understanding and controlling how health information is used or disclosed.
Privacy and Security Requirements The Health Insurance Portability and Accountability Act of 1996, as amended and implementing regulations, or HIPAA, require covered entities, which include most health care providers, to protect the privacy and security of individually identifiable health information, known as “protected health information” and establish individual rights related to understanding and controlling how health information is used or disclosed.
As of December 31, 2022, through our CoreCivic Safety segment, we operated 44 correctional and detention facilities, 40 of which we owned and managed and four of which we managed and were owned by our government partners. Through our CoreCivic Community segment, we also owned and managed 23 residential reentry centers.
As of December 31, 2023, through our CoreCivic Safety segment, we operated 43 correctional and detention facilities, 39 of which we owned and managed and four of which we managed and were owned by our government partners. Through our CoreCivic Community segment, we also owned and managed 23 residential reentry centers.
Violations may result in penalties or other disincentives. Insur ance We maintain general liability insurance for all the facilities we operate, as well as insurance in amounts we deem adequate to cover property and casualty risks, employee health, workers' compensation, automobile liability, cybersecurity, and directors and officers liability.
Insur ance We maintain general liability insurance for all the facilities we operate, as well as insurance in amounts we deem adequate to cover property and casualty risks, employee health, workers' compensation, automobile liability, cybersecurity, and directors and officers liability.
We provide equal opportunity employment to all candidates and follow the United States Department of Labor Office of Federal Contract Compliance Programs equal employment opportunity guidelines for hiring. In 2022, we invested approximately $30.9 million in talent attraction efforts to reach prospective candidates, and we received over 66,400 job applications, an increase of 30% over 2021.
We provide equal opportunity employment to all candidates and follow the United States Department of Labor Office of Federal Contract Compliance Programs equal employment opportunity guidelines for hiring. In 2023, we invested approximately $9.2 million in talent attraction efforts to reach prospective candidates, and we received over 106,900 job applications, an increase of 61% over 2022.
Additionally, we have taken steps towards achieving our stated DE&I goals (Create a Common DE&I Language, Create a Culture of Belongingness and Respect, and Create a Diverse Pipeline of Leadership Candidates) through the actions of our established DE&I Advisory Council.
Additionally, we have taken steps towards achieving our stated DE&I principles (Create a Common DE&I Language, Create a Culture of Belongingness and Respect, and Create a Pipeline of Diverse Candidates) through the recommendations of our DE&I Advisory Council.
All of our facility chaplains facilitate diverse and inclusive opportunities for those in our care to engage in the practice of spirituality and to exercise individual religious freedom. In several facilities, we offer faith-based programs with an emphasis on character development, spiritual growth, and successful reentry.
All of our facility chaplains facilitate diverse and inclusive opportunities for those in our care to engage in the practice of spirituality and to exercise individual religious freedom. In several facilities, we offer faith-based programs with an emphasis on character development, spiritual growth, and successful reentry. Presently, we utilize Threshold, an innovative, evidence-based inter-faith component of comprehensive reentry services.
However, we believe this conversion in corporate tax structure improves our overall credit profile and will lower our overall cost of capital, as we are able to allocate our free cash flow toward the repayment of debt, which may include the purchase of our outstanding debt in open market transactions, privately negotiated transactions or otherwise.
We believe this conversion in corporate tax structure improves our overall credit profile, as we are able to allocate our free cash flow toward the repayment of debt, which may include the purchase of our outstanding debt in open market transactions, privately negotiated transactions or otherwise, and to exercise more discretion in returning capital to our shareholders.
Available Beds within Our Existing Facilities. We currently have 8,459 beds at seven prison facilities that are vacant and immediately available to use. We are actively engaged in marketing this available capacity as solutions to meet the needs of potential customers. Historically, we have been successful in identifying opportunities to utilize our inventory of available beds.
Available Beds within Our Existing Facilities. We currently have 10,859 beds at eight correctional and detention facilities that are vacant and immediately available to use. We are actively engaged in marketing this available capacity as solutions to meet the needs of potential customers. Historically, we have been successful in identifying opportunities to utilize our inventory of available beds.
Any future dividend is subject to the BOD's determinations as to the amount of distributions and the timing thereof, as well as limitations under the Company's debt covenants.
Any future dividend is subject to the Board of Directors', or BODs', determinations as to the amount of distributions and the timing thereof, as well as limitations under the Company's debt covenants.
As of December 31, 2022, through our CoreCivic Safety segment, we operated 44 correctional and detention facilities, 40 of which we owned, with a total design capacity of approximately 66,000 beds. Through our CoreCivic Community segment, we owned and operated 23 residential reentry centers with a total design capacity of approximately 5,000 beds.
As of December 31, 2023, through our CoreCivic Safety segment, we operated 43 correctional and detention facilities, 39 of which we owned, with a total design capacity of approximately 65,000 beds. Through our CoreCivic Community segment, we owned and operated 23 residential reentry centers with a total design capacity of approximately 5,000 beds.
The American Correctional Association, or ACA, is an independent organization comprised of corrections professionals that establishes accreditation standards for correctional and detention facilities around the world. Outside agency standards, such as those established by the ACA, provide us with the industry's most widely accepted operational guidelines. ACA accredited facilities must be audited and re-accredited at least every three years.
Operating guidelines. The American Correctional Association, or ACA, is an independent organization comprised of corrections professionals that establishes accreditation standards for correctional and detention facilities around the world. Outside agency standards, such as those established by the ACA, provide us with the industry's most widely accepted operational guidelines.
In addition, our facilities are operated in compliance with the Prison Rape Elimination Act, or PREA, standards. All confinement facilities covered under the PREA standards must be audited at least every three years to maintain compliance with the PREA standards. We utilize DOJ certified PREA auditors to help ensure that all facilities operate in compliance with applicable PREA regulations.
All confinement facilities covered under the PREA standards must be audited at least every three years to maintain compliance with the PREA standards. We utilize DOJ certified PREA auditors to help ensure that all facilities operate in compliance with applicable PREA regulations.
We also provide an Adult Education in Spanish program for offenders with that specific language need. 9 For the offenders who are close to taking their GED/HiSET exam, we have invested in the equipment needed to use the GED/HiSET Academy software program, which is an offline software program providing over 200 hours of individualized lessons up to a 12 th grade level.
For the offenders who are close to taking their GED/HiSET exam, we have invested in the equipment needed to use the GED/HiSET Academy software program, which is an offline software program providing over 200 hours of individualized lessons up to a 12 th grade level.
With the extensively aged criminal justice infrastructure in the U.S. today, we also believe we can bring real estate solutions to government agencies like we did in connection with the construction of the Lansing Correctional Facility that was brought online in January 2020. Increasing Financial Flexibility.
With the extensively aged criminal justice infrastructure in the U.S. today, we also believe we can bring real estate solutions to government agencies like we did in connection with the construction of the Lansing Correctional Facility that was brought online in January 2020. Increasing Financial Flexibility. Effective January 1, 2021, we revoked our election to be taxed as a REIT.
We endeavor to improve operating performance and efficiency through the following key operating initiatives: (1) standardizing supply and service purchasing practices and usage; (2) implementing a standard approach to staffing and business practices; (3) improving offender management, resource consumption, and reporting procedures through the utilization of numerous technological initiatives; (4) reconfiguring facility bed space to optimize capacity utilization; and (5) improving productivity.
We endeavor to improve operating performance and efficiency through the following key operating initiatives: (1) standardizing supply and service purchasing practices and usage; (2) implementing a standard approach to staffing and business practices; (3) improving offender management, resource consumption, and reporting procedures through the utilization of numerous technological initiatives; (4) reconfiguring facility bed space to optimize capacity utilization; and (5) improving outcomes for incarcerated individuals in our care through investments in a variety of programs intended to reduce recidivism.
As of December 31, 2022, our CoreCivic Safety segment operated 44 facilities, 40 of which we owned, with a total design capacity of 66,399 beds, making us the nation's largest private prison owner and one of the largest prison operators in the United States.
As of December 31, 2023, our CoreCivic Safety segment operated 43 facilities, 39 of which we owned, with a total design capacity of 64,729 beds, making us the nation's largest private prison owner and one of the largest prison operators in the United States.
We believe our government partners seek a compelling value and service offering when selecting an outsourced correctional services provider. We believe we offer a cost-effective alternative to our government partners by reducing their correctional services costs, including the avoidance of long-term pension obligations and large capital investments in new bed capacity.
We believe we offer a cost-effective alternative to our government partners by reducing their correctional services costs, including the avoidance of long-term pension obligations and large capital investments in new bed capacity.
Labor Relations As of December 31, 2022, we employed 11,144 full- and part-time employees, including at our transportation and electronic monitoring subsidiaries, TransCor and Recovery Monitoring Solutions Corporation, respectively. Approximately 1,420 of our employees at eight of our facilities, or approximately 12.7% of our workforce, are represented by labor unions.
Labor Relations As of December 31, 2023, we employed 11,694 full- and part-time employees, including employees with our transportation and electronic monitoring subsidiaries, TransCor and Recovery Monitoring Solutions Corporation, respectively. Approximately 1,860 of our employees at 12 of our facilities, or approximately 15.9% of our workforce, are represented by labor unions.
The New Bank Credit Facility extends the maturity to May 2026 from the April 2023 maturity under the Previous Bank Credit Facility.
The New Bank Credit Facility extends the maturity to October 2028 from the May 2026 maturity under the Previous Bank Credit Facility.
(B) Remaining renewal options represents the number of renewal options, if applicable, and the term of each option renewal. (C) On December 6, 2022, we received notice from the California Department of Corrections and Rehabilitation, or CDCR, of its intent to terminate the lease agreement for the facility by March 31, 2024, due to the state's declining inmate population.
(B) On December 6, 2022, we received notice from the California Department of Corrections and Rehabilitation, or CDCR, of its intent to terminate the lease agreement for the facility by March 31, 2024, due to the state's declining inmate population.
Annually, QAD auditors generally conduct unannounced on-site evaluations of each CoreCivic Safety facility we operate using specialized audit tools, typically containing approximately 1,550 audit indicators across all major operational areas. In most instances, these audit tools are tailored to facility and partner specific requirements. In 2022, due to the impact of COVID-19, the QAD's annual facility audits were announced.
Annually, QAD auditors generally conduct unannounced on-site evaluations of each CoreCivic Safety facility we operate using specialized audit tools, typically containing approximately 1,350 audit indicators across all major operational areas. In most instances, these audit tools are tailored to facility and partner specific requirements.
Additionally, the report summarizes our management approach and activities in topics including DE&I; political activity and contributions; supplier diversity; charitable giving; PREA compliance; ethics; and workforce rights, compensation, benefits and training. The ESG report was prepared in accordance with the Global Reporting Initiative, or GRI, standards: Core option issued by the Global Sustainability Standards Board.
The report also summarizes our management approach and activities in topics including energy/utilities management; DE&I; lobbying and political activity; supplier diversity; charitable giving; PREA compliance; ethics; and employee compensation, benefits and training. The ESG report was designed to be in accordance with the Global Reporting Initiative, or GRI, standards: Core option issued by the Global Sustainability Standards Board.
As part of this continued initiative, we apply government relations resources and expertise to advocate for the following policies: • "Ban-the-Box" proposals to help improve former inmates' chances at getting a job; • Reduced legal barriers to make it easier and less risky for companies to hire former inmates; • Increased funding for reentry programs in areas such as education, addiction treatment, faith-based offerings, victim impact and post-release employment; and • Social impact bond pilot programs that tie contractor payments to positive outcomes.
As part of this continued initiative, we apply government relations resources and expertise to advocate for the following policies: • "Ban-the-Box" proposals to help improve former inmates' chances at getting a job; • Reduced legal barriers to make it easier and less risky for companies to hire former incarcerated individuals; • Increased funding for reentry programs in areas such as education, addiction treatment, faith-based offerings, victim impact and post-release employment; and • Social impact bond pilot programs that tie contractor payments to positive outcomes. 12 In 2020, we announced that we will publicly advocate at the federal and state levels for a slate of new policies that will help people succeed in their communities after being released from prison.
We have committed to evolving our model with an increased focus on reentry services, and we are working to equip the men and women in our care with the services, support, and resources they need to be successful upon reentry.
We have committed to evolving our model with an increased focus on reentry services, and we are working to equip the men and women in our care with the services, support, and resources they need to be successful upon reentry. We provide a wide range of evidence-based reentry programs and activities in our facilities.
COVID-19 notwithstanding, we believe the long-term growth opportunities of our business remain attractive as government agencies consider their emergent needs (including capacity to help mitigate the spread of infectious disease), as well as the efficiency and offender programming opportunities we provide as flexible solutions to satisfy our partners' needs.
We believe the long-term growth opportunities of our business remain attractive as government agencies consider their emergent needs, as well as the efficiency and offender programming opportunities we provide as flexible solutions to satisfy our partners' needs.
As of December 31, 2022, the properties we owned or controlled represented 95% of our portfolio of 75 facilities. The weighted average age of our portfolio of facilities in our CoreCivic Safety, CoreCivic Community, and CoreCivic Properties segments is 23, 28, and 21 years, respectively.
As of December 31, 2023, the properties we owned or controlled represented 94% of our portfolio of 72 facilities. The weighted average age of the facilities we own in the portfolio of facilities in our CoreCivic Safety, CoreCivic Community, and CoreCivic Properties segments is 25, 31, and 23 years, respectively.
In 2023, the QAD's annual facility audits will again be unannounced, with certain exceptions if necessary. In addition, audit teams provide guidance to facility staff on operational best practices and assist staff with addressing specific areas of need, such as meeting requirements of new partner contracts and providing detailed training on compliance requirements for new departmental managers.
In addition, audit teams provide guidance to facility staff on operational best practices and assist staff with addressing specific areas of need, such as meeting requirements of new partner contracts and providing detailed training on compliance requirements for new departmental managers.
Corporate and Other: • Entered into a Third Amended and Restated Credit Agreement, or the New Bank Credit Facility, in an aggregate principal amount of $350.0 million, consisting of a $100.0 million term loan, or the New Term Loan A, and a revolving credit facility with a borrowing capacity of $250.0 million, or the New Revolving Credit Facility.
Corporate and Other: • Amended and extended our Third Amended and Restated Credit Agreement, or the Previous Bank Credit Facility, by entering into a Fourth Amended and Restated Credit Agreement, or the New Bank Credit Facility, in an aggregate principal amount of $400.0 million, consisting of a $125.0 million term loan (previously $100.0 million under the Previous Bank Credit Facility), or the Term Loan, and a revolving credit facility with a borrowing capacity of $275.0 million (previously $250.0 million under the Previous Bank Credit Facility), or the Revolving Credit Facility.
Further, although disrupted by the COVID-19 pandemic, several of our existing federal and state partners, as well as prospective state partners, have been experiencing growth in offender populations and overcrowded conditions, as well as an increase in violent crime.
Further, several of our existing government partners, as well as prospective government partners, have been experiencing growth in offender populations and overcrowded conditions, as well as an increase in violent crime.
(J) The state of Tennessee has the option to purchase the facility in the event of our bankruptcy, or upon an operational or financial breach under the management agreement, at a price equal to the book value, as determined under such agreement. 27 CoreCivic Properties Through our CoreCivic Properties segment, we owned 8 properties leased to government agencies.
(I) The state of Tennessee has the option to purchase the facility in the event of our bankruptcy, or upon an operational or financial breach under the management agreement, at a price equal to the book value, as determined under such agreement. 26 CoreCivic Properties Through our CoreCivic Properties segment, we owned 6 correctional facilities held for lease to third-party operators.
We also provide non-residential correctional alternatives, including electronic monitoring and case management services, to municipal, county and state governments in multiple states. We expect to continue to pursue opportunities that expand the scope of non-residential correctional alternative solutions available to government agencies. We are the second largest community corrections owner and operator in the United States.
We expect to continue to pursue opportunities that expand the scope of non-residential correctional alternative solutions available to government agencies. We are the second largest community corrections owner and operator in the United States.
In addition, through our CoreCivic Properties segment, we owned 8 properties leased to government agencies, totaling 1.8 million square feet. In addition to providing fundamental residential services, our correctional, detention, and residential reentry facilities offer a variety of rehabilitation and educational programs, including basic education, faith-based services, life skills and employment training, and substance abuse treatment.
In addition, through our CoreCivic Properties segment, we owned 6 properties, with a total design capacity of approximately 10,000 beds. In addition to providing fundamental residential services, our correctional, detention, and residential reentry facilities offer a variety of rehabilitation and educational programs, including basic education, faith-based services, life skills and employment training, and substance abuse treatment.
We plan to partner with Life Empowerment Enterprises, a local nonprofit organization, to provide this program. Across the country, our dedicated staff, along with the assistance of thousands of volunteers, work to provide guidance, direction, and post-incarceration services to the men and women in our care.
Across the country, our dedicated staff, along with the assistance of thousands of volunteers, work to provide guidance, direction, and post-incarceration services to the men and women in our care.
Graduates of these programs enter the job market with certified skills that significantly enhance employability. We are proud of the educational programs we offer and intend to maintain and continue to develop such programs.
Graduates of these programs enter the job market with certified skills that significantly enhance employability. We also offer other effective vocational programs, such as the Persevere and Pivot Tech coding programs discussed more thoroughly below. We are proud of the educational programs we offer and intend to maintain and continue to develop such programs.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeAccordingly, rising interest rates increase our interest costs, which could have an adverse impact on us and our ability to pay down our debt, return capital to our stockholders and pay maturing debt or cause us to be in default under certain debt instruments. 58 Risks Related to our Corporate Tax Structure We may fail to realize the anticipated benefits of revoking our REIT election and becoming a taxable C Corporation effective January 1, 2021, or those benefits may take longer to realize than expected, if at all, or may not offset the costs of revoking our REIT election and becoming a taxable C Corporation.
Biggest changeAccordingly, rising interest rates increase our interest costs, which could have an adverse impact on us and our ability to pay down our debt, return capital to our stockholders and pay maturing debt or cause us to be in default under certain debt instruments.
The New Bank Credit Facility includes an option to increase the availability under the New Revolving Credit Facility and to request term loans from the lenders in an aggregate amount not to exceed the greater of (a) $200.0 million and (b) 50% of consolidated EBITDA for the most recently ended four-quarter period, subject to, among other things, the receipt of commitments for the increased amount.
The New Bank Credit Facility includes an option to increase the availability under the Revolving Credit Facility and to request term loans from the lenders in an aggregate amount not to exceed the greater of (a) $200.0 million and (b) 50% of consolidated EBITDA for the most recently ended four-quarter period, subject to, among other things, the receipt of commitments for the increased amount.
Our growth is generally dependent upon our ability to obtain new contracts to develop and manage correctional, detention, and residential reentry facilities. This possible growth depends on a number of factors we cannot control, including crime rates and sentencing patterns in various jurisdictions, governmental budgetary constraints, and governmental and public acceptance of privatization.
Our growth is generally dependent upon our ability to obtain new contracts to develop and manage correctional, detention, and residential reentry facilities. This possible growth depends on a number of factors we cannot control, including crime rates and sentencing patterns in various jurisdictions, governmental budgetary constraints, and governmental and public acceptance of the privatization of correctional, detention, and reentry facilities.
Two agencies of the DOJ, the BOP and the USMS utilize our services. The BOP houses inmates who have been convicted, and the USMS is generally responsible for detainees who are awaiting trial. The BOP has experienced a steady decline in inmate populations over the last decade, a trend that has been accelerated by the COVID-19 pandemic.
Two agencies of the DOJ, the BOP and the USMS, utilize our services. The BOP houses inmates who have been convicted, and the USMS is generally responsible for detainees who are awaiting trial. The BOP has experienced a steady decline in inmate populations over the last decade, a trend that was accelerated by the COVID-19 pandemic.
Our ability to refinance all or a portion of our indebtedness on acceptable terms, or at all, will be dependent upon a number of factors, including our degree of 56 leverage, the amount of our cash flows, the value of our assets, borrowing and other financial restrictions imposed by lenders, and conditions in the credit markets at the time we refinance.
Our ability to refinance all or a portion of our indebtedness on acceptable terms, or at all, will be dependent upon a number of factors, including our degree of leverage, the amount of our cash flows, the value of our assets, borrowing and other financial restrictions imposed by lenders, and conditions in the credit markets at the time we refinance.
In addition, although we maintain 52 insurance for many types of losses, there are certain types of losses, such as losses from earthquakes and acts of terrorism, which may be either uninsurable or for which it may not be economically feasible to obtain insurance coverage in light of the substantial costs associated with such insurance.
In addition, although we maintain insurance for many types of losses, there are certain types of losses, such as losses from earthquakes and acts of terrorism, which may be either uninsurable or for which it may not be economically feasible to obtain insurance coverage in light of the substantial costs associated with such insurance.
In the event that (a) the consolidated total leverage equals or exceeds 4.00 to 1.00 or (b) we incur certain debt above a specified threshold, certain intangible assets and unencumbered real estate assets that meet a 50% loan-to-value requirement are required to be added as collateral.
In the event that (a) the consolidated total leverage equals or exceeds 4.25 to 1.00 or (b) we incur certain debt above a specified threshold, certain intangible assets and unencumbered real estate assets that meet a 50% loan-to-value requirement are required to be added as collateral.
A prolonged downturn in the financial capital markets or in our stock price could make it more difficult to obtain capital resources at favorable rates of return or obtain capital resources at all. 45 We may face community opposition to facility location, which may adversely affect our ability to obtain new contracts .
A prolonged downturn in the financial capital markets or in our stock price could make it more difficult to obtain capital resources at favorable rates of return or obtain capital resources at all. We may face community opposition to facility location, which may adversely affect our ability to obtain new contracts .
In addition, it is possible that we would need to borrow additional funds or issue additional securities to pay any such additional tax liability. 59 Even if we remained qualified as a REIT for those years we elected REIT status, we may owe taxes under certain circumstances.
In addition, it is possible that we would need to borrow additional funds or issue additional securities to pay any such additional tax liability. Even if we remained qualified as a REIT for those years we elected REIT status, we may owe taxes under certain circumstances.
In addition, these and any other contracting agencies may determine not to exercise renewal options with respect to any of our contracts in the future. Our government partners can also re-bid 43 contracts in a competitive procurement process upon termination or non-renewal of our contract.
In addition, these and any other contracting agencies may determine not to exercise renewal options with respect to any of our contracts in the future. Our government partners can also re-bid contracts in a competitive procurement process upon termination or non-renewal of our contract.
Nonetheless, the subjective nature and wide variety of methods and processes used by various stakeholders, including investors, to assess a company with respect to ESG criteria can result in the perception of negative ESG factors or a misrepresentation of our ESG policies and practices.
Nonetheless, the subjective and evolving nature and wide variety of methods and processes used by various stakeholders, including investors, to assess a company with respect to ESG criteria can result in the perception of negative ESG factors or a misrepresentation of our ESG policies and practices.
If we are unable to obtain adequate levels of surety credit on favorable terms, we would have to rely upon letters of credit under our Revolving Credit Facility, which could entail higher costs if such borrowing capacity was even available when desired, and our ability to bid for or obtain new contracts could be impaired. 53 Interruption, delay or failure of the provision of our technology services or information systems, or the compromise of the security thereof, could adversely affect our business, financial condition or results of operations.
If we are unable to obtain adequate levels of surety credit on favorable terms, we would have to rely upon letters of credit under our Revolving Credit Facility, which could entail higher costs if such borrowing capacity was even available when desired, and our ability to bid for or obtain new contracts could be impaired. 49 Interruption, delay or failure of the provision of our technology services or information systems, or the compromise of the security thereof, could adversely affect our business, financial condition or results of operations.
If new debt is added to our and our subsidiaries' current debt levels, the related risks that we and they now face could intensify. 57 Our access to capital may be affected by general macroeconomic conditions.
If new debt is added to our and our subsidiaries' current debt levels, the related risks that we and they now face could intensify. Our access to capital may be affected by general macroeconomic conditions.
Our operating costs may be affected by the obligation to pay for the cost of complying with existing environmental laws, ordinances and regulations, as well as the cost of complying with future legislation.
Our operating costs may be affected 48 by the obligation to pay for the cost of complying with existing environmental laws, ordinances and regulations, as well as the cost of complying with future legislation.
Even if we identify sites where local leaders and residents generally support the establishment of a correctional or detention facility, whether to be publicly or privately operated, such endeavors may still face resistance by broader groups to facilities perceived as supporting over-incarceration. Therefore, future efforts to find suitable host communities may not be successful.
Even if we identify sites where local leaders and residents generally support the establishment of a correctional, detention, or residential reentry facility, whether to be publicly or privately operated, such endeavors may still face resistance by broader groups to facilities perceived as supporting over-incarceration. Therefore, future efforts to find suitable host communities may not be successful.
Although we maintain cyber-security insurance covering certain security and privacy damages and claim expenses, we may not carry insurance or maintain coverage sufficient to compensate for all liability and in any event, insurance coverage would not address the reputational damage that could result from a security incident. We are subject to risks related to corporate social responsibility.
Although we maintain cybersecurity insurance covering certain security and privacy damages and claim expenses, we may not carry insurance or maintain coverage sufficient to compensate for all liability and in any event, insurance coverage would not address the reputational damage that could result from a security incident. We are subject to risks related to corporate social responsibility.
In addition to the potential civil and criminal penalties and administrative sanctions, any adverse determination with respect to contractual or regulatory violations could negatively impact our ability to bid in response to Requests for Proposals, or RFPs, in one or more jurisdictions. 47 Failure to comply with facility contracts or with unique and increased governmental regulation could result in material penalties or non-renewal or termination of noncompliant contracts or our other contracts to provide or manage correctional, detention, and residential reentry facilities.
In addition to the potential civil and criminal penalties and administrative sanctions, any adverse determination with respect to contractual or regulatory violations could negatively impact our reputation and our ability to bid in response to Requests for Proposals, or RFPs, in one or more jurisdictions. 43 Failure to comply with facility contracts or with unique and increased governmental regulation could result in material penalties or non-renewal or termination of noncompliant contracts or our other contracts to provide or manage correctional, detention, and residential reentry facilities.
The requirements could also result in attrition, including attrition of qualified personnel, and difficulty securing future labor needs, which could materially and adversely affect our results of operations, financial condition and cash flows. 50 We are subject to various types of litigation.
The requirements could also result in attrition, including attrition of qualified personnel, and difficulty securing future labor needs, which could materially and adversely affect our results of operations, financial condition and cash flows. 46 We are subject to various types of litigation.
Factors that could affect the market price of our equity securities include, but are not limited to, the following: • actual or anticipated variations in our quarterly results of operations; • changes in market valuations of companies in the corrections, detention, or residential reentry industries; • changes in expectations of future financial performance or changes in estimates of securities analysts; 60 • changes in government policy, legislation and regulations that affect utilization of the private sector for corrections, detention, and residential reentry services; • fluctuations in stock market prices and volumes; • issuances and re-purchases of common shares or other securities in the future; and • announcements by us or our competitors of acquisitions, investments or strategic actions.
Factors that could affect the market price of our equity securities include, but are not limited to, the following: • actual or anticipated variations in our quarterly results of operations; • changes in market valuations of companies in the corrections, detention, or residential reentry industries; • changes in expectations of future financial performance or changes in estimates of securities analysts; • changes in government policy, legislation and regulations that affect utilization of the private sector for corrections, detention, and residential reentry services including, but not limited to, government funding proposals; • fluctuations in stock market prices and volumes; • issuances and re-purchases of common shares or other securities in the future; and • announcements by us or our competitors of acquisitions, investments or strategic actions.
" 51 We depend in part on the performance and capabilities of third parties with whom we have commercial relationships. We maintain business relationships with key partners, suppliers, channel partners and other parties that have complementary products, services or skills.
" 47 We depend in part on the performance and capabilities of third parties with whom we have commercial relationships. We maintain business relationships with key partners, suppliers, channel partners and other parties that have complementary products, services or skills.
However, as federal and state agencies with oversight in areas where we operate review and adopt more permanent measures to address the continuing and future potential threat of airborne infections in work environments, it is possible that compliance with future mandates may impose additional compliance and other costs.
To the extent federal and state agencies with oversight in areas where we operate review and adopt more permanent measures to address the continuing and future potential threat of airborne infections in work environments, it is possible that compliance with future mandates may impose additional compliance and other costs.
For the years 2022, 2021, and 2020, the average compensated occupancy of our facilities, based on rated capacity, was 70%, 72%, and 74%, respectively, for all of the facilities we operated, exclusive of facilities that are leased to third-party operators where our revenue is generally not based on daily occupancy.
For the years 2023, 2022, and 2021, the average compensated occupancy of our facilities, based on rated capacity, was 72%, 70%, and 72%, respectively, for all of the facilities we operated, exclusive of facilities that are leased to third-party operators where our revenue is generally not based on daily occupancy.
For instance, any changes with respect to drugs and controlled substances or illegal immigration could affect the number of persons arrested, convicted, and sentenced, thereby potentially reducing demand for correctional or detention facilities to house them. Immigration reform laws are currently a focus for legislators and politicians at the federal, state, and local level.
For instance, any changes with respect to drugs and controlled substances or illegal immigration could affect the number of persons arrested, convicted, and sentenced, thereby potentially reducing demand for correctional or detention facilities to house them. Immigration reform laws are an ongoing focus for legislators and politicians at the federal, state, and local level.
For the twelve months ended December 31, 2022, USMS and ICE accounted for 22% ($403.9 million) and 29% ($527.3 million), respectively, of our total revenue. For the twelve months ended December 31, 2021, USMS and ICE accounted for 23% ($433.6 million) and 30% ($552.2 million), respectively, of our total revenue.
For the year ended December 31, 2022, USMS and ICE accounted for 22% ($403.9 million) and 29% ($527.3 million), respectively, of our total revenue. For the year ended December 31, 2021, USMS and ICE accounted for 23% ($433.6 million) and 30% ($552.2 million), respectively, of our total revenue.
We may encounter staffing constraints as well as costs and expenses associated with owning and/or operating our correctional, detention, and residential reentry facilities as a result of acts of God, outbreaks of epidemic or pandemic disease (such as the COVID-19 pandemic), global climate change (including the potential for increased inclement weather and natural disasters), war (including the war between Ukraine and Russia and the potential for war), terrorist activity (including threats of terrorist activity), political unrest, geopolitical uncertainty and other forms of civil strife, in or around locations where we own and/or operate significant properties.
We may encounter staffing constraints as well as costs and expenses associated with owning and/or operating our correctional, detention, and residential reentry facilities as a result of acts of God, outbreaks of epidemic or pandemic disease, global climate change (including the potential for increased inclement weather and natural disasters), wars and other geopolitical conflicts (including between Ukraine and Russia and Israel and Hamas) and the potential for war, terrorist activity (including threats of terrorist activity), political unrest, geopolitical uncertainty and other forms of civil strife, in or around locations where we own and/or operate significant properties.
We are subject to risks associated with ownership of real estate. Our ownership of correctional, detention, and residential reentry facilities and other government-leased assets subjects us to risks typically associated with investments in real estate. Investments in real estate and, in particular, correctional and detention facilities have limited or no alternative use and thus are relatively illiquid.
We are subject to risks associated with ownership of real estate. Our ownership of correctional, detention, and residential reentry facilities subjects us to risks typically associated with investments in real estate. Investments in real estate and, in particular, correctional and detention facilities have limited or no alternative use and thus are relatively illiquid.
Any political platform or promise, governmental agency report, investigation or inquiry, public statement by any governmental agency, policy or legislative change, or other similar occurrence or action, that seeks to, or purports to, prohibit, eliminate, or otherwise restrict or limit in any way, the federal government’s (or any state or local government’s) ability to contract with private operators of correctional, detention, and residential reentry facilities, could negatively impact our growth and our ability to renew or maintain existing contracts or to obtain new contracts and could have a material adverse effect on our business, financial condition, results of operations or the market price of our common stock.
Any political platform or promise, governmental agency report, investigation or inquiry, public statement by any governmental agency, policy or legislative change, or other similar occurrence or action, that seeks to, or purports to, prohibit, eliminate, or otherwise restrict or limit in any way, the federal government’s (or any state or local government’s) ability to contract with private operators of correctional, detention, and residential reentry facilities, could negatively impact our growth and our ability to renew or maintain existing contracts or to obtain new contracts and could have a material adverse effect on our business, financial condition, results of operations or the market price of our common stock. 38 On January 26, 2021, President Biden issued the Private Prison EO.
If we failed to remain qualified as a REIT for those years we elected REIT status, we would be subject to corporate income taxes and would not be able to deduct distributions to stockholders when computing our taxable income for those years.
Risks Related to our Corporate Tax Structure If we failed to remain qualified as a REIT for those years we elected REIT status, we would be subject to corporate income taxes and would not be able to deduct distributions to stockholders when computing our taxable income for those years.
For example, during 2022, as a result of a new contract award from the state of Arizona for up to 2,706 inmates, we transitioned the population at our 3,060-bed La Palma Correctional Center from ICE detainees to inmates from the state of Arizona, which resulted in the disruption of earnings and cash flows until the occupancy of inmates from the state of Arizona reached stabilization.
For example, during 2022, as a result of a new contract award from the state of Arizona for up to 2,706 inmates, we transitioned the population at our 3,060-bed La Palma Correctional Center from ICE detainees to inmates from the state of Arizona, which resulted in the disruption of earnings and cash flows during the transition period.
Notwithstanding any contractual renewal option of a contracting governmental agency, 38 of our facility contracts with the customers listed under "Business – Facility Portfolio" are currently scheduled to expire on or before December 31, 2023 but have renewal options (25), or are currently scheduled to expire on or before December 31, 2023 and have no renewal options (13).
Notwithstanding any contractual renewal option of a contracting governmental agency, 32 of our facility contracts with the customers listed under "Business – Facility Portfolio" are currently scheduled to expire on or before December 31, 2024 but have renewal options (25), or are currently scheduled to expire on or before December 31, 2024 and have no renewal options (7).
Any security breach or event resulting in the interruption, delay or failure of our services or information systems, or the misappropriation, loss, or other unauthorized disclosure of personal data or confidential information, including confidential information about our employees, whether by us directly or our third-party service providers, could damage our reputation, expose us to the risks of litigation and liability, result in significant monetary penalties and/or regulatory actions for violation of applicable laws or regulations, disrupt our business and result in significant costs for investigation and notification regarding the event and remedial measures to prevent future occurrences and mitigate past violations, result in lost business, or otherwise adversely affect our results of operations.
Any cyberattack, data breach, security breach, or other security incident resulting in the interruption, delay, compromise or failure of our services or information systems, or the misappropriation, loss, or other unauthorized disclosure of personal data or confidential information, including confidential information about our employees, or other proprietary information, including intellectual property, whether by us directly, our vendors, our employees, our government partners, those entrusted to our care, or our third-party service providers, could damage our reputation, expose us to the risks of litigation and liability, result in significant monetary penalties and/or regulatory actions for violation of applicable laws or regulations, disrupt our business and result in significant costs for investigation and notification regarding the incident and remedial measures to prevent future occurrences and mitigate past violations, result in lost business, or otherwise adversely affect our results of operations.
Our Credit Agreements include other restrictions that, among other things, limit our ability to incur indebtedness; grant liens; engage in mergers, consolidations and liquidations; make asset dispositions, make restricted payments and investments; issue disqualified stock; enter into transactions with affiliates; and amend, modify or prepay certain indebtedness.
The New Bank Credit Facility includes other restrictions that, among other things, limit our ability to incur indebtedness; grant liens; engage in mergers, consolidations and liquidations; make asset dispositions, make restricted payments and investments; issue disqualified stock; enter into transactions with affiliates; and amend, modify or prepay certain indebtedness.
We expect to continue to depend upon federal agencies, including ICE and the USMS, and a relatively small group of other governmental customers for a significant percentage of our revenues. Additionally, the Private Prison EO issued by President Biden on January 26, 2021, directs the Attorney General to not renew DOJ contracts with privately operated criminal detention facilities.
We expect to continue to depend upon federal agencies, including ICE and the USMS, and a relatively small group of other governmental customers for a significant percentage of our revenues. Additionally, the Private Prison EO directs the Attorney General to not renew DOJ contracts with privately operated criminal detention facilities.
The BOP houses inmates who have been convicted, and the USMS is generally responsible for detainees who are awaiting trial. The BOP has experienced a steady decline in inmate populations over the last decade, a trend that was accelerated by the COVID-19 pandemic.
Two agencies of the DOJ, the BOP and the USMS, utilize our services. The BOP houses inmates who have been convicted, and the USMS is generally responsible for detainees who are awaiting trial. The BOP has experienced a steady decline in inmate populations over the last decade, a trend that was accelerated by the COVID-19 pandemic.
While we employ industry standard administrative, technical and physical safeguards designed to protect the integrity and security of personal data we collect or process, despite the security measures we have in place, and any additional measures we may implement in the future, our facilities and systems, and those of our third-party service providers, could be vulnerable to service interruptions, outages, cyber-attacks and security breaches and incidents, human error, earthquakes, hurricanes, floods, pandemics, fires, other natural disasters, power losses, disruptions in telecommunications services, fraud, military or political conflicts (including the war between Ukraine and Russia), terrorist attacks and other geopolitical unrest, computer viruses, ransomware, and other malicious software, changes in social, political, or regulatory conditions or in laws and policies, or other changes or events.
While we employ industry standard administrative, technical and physical safeguards designed to protect the confidentiality, integrity, availability and security of personal data we collect or process, despite the security measures we have in place, and any additional measures we may implement in the future, our facilities and systems, and those of our vendors, government partners, and third-party service providers, could be vulnerable to service interruptions, outages, cyberattacks and security breaches and incidents, human error, earthquakes, hurricanes, floods, pandemics, fires, other natural disasters, power losses, disruptions in telecommunications services, fraud, military or wars and other geopolitical conflicts (including between Ukraine and Russia and Israel and Hamas), terrorist attacks and other geopolitical unrest, changes in social, political, or regulatory conditions or in laws and policies, or other changes or events.
In addition, negative publicity regarding offenders escaping, rioting or any other disturbances at our facilities or any public perception of poor operational performance at our facilities, contract non-compliance, or other conditions (including COVID-19 infections or other disease outbreaks at the facilities we own and manage) at a privately managed facility may result in adverse publicity to us and the private corrections industry in general and could negatively impact our growth and our ability to renew or maintain existing contracts or to obtain new contracts, which could have an adverse impact on our business, financial condition, results of operations or the market price of our common stock. 41 We are subject to fluctuations in occupancy levels, and a decrease in occupancy levels could cause a decrease in revenues and profitability.
In addition, negative publicity regarding offenders escaping, rioting or any other disturbances at our facilities or any public perception of poor operational performance at our facilities, contract non-compliance, or other conditions (including disease outbreaks at the facilities we own and manage) at a privately managed facility may result in adverse publicity to us and the private corrections industry in general and could negatively impact our growth and our ability to renew or maintain existing contracts or to obtain new contracts, which could have an adverse impact on our business, reputation, financial condition, results of operations or the market price of our common stock.
Incremental expenses include, but may not be limited to, incentive payments to our front-line and field staff, temporary employee housing expenses and other travel related reimbursements, additional paid time off, off-cycle wage increases in certain markets to remain competitive, further increases in registry nursing expenses, as well as expenses to procure personal protective equipment and other supplies.
Incremental expenses include, but may not be limited to, incentive payments to our front-line and field staff, temporary employee housing expenses and other travel related reimbursements, additional paid time off, off-cycle wage increases in certain markets to remain competitive, and registry nursing expenses.
Any future shutdown of the federal government or failure to enact annual appropriations could also have a material adverse impact on our liquidity, results of operations and financial condition.
Any future shutdown of the federal government or failure to enact annual appropriations could also have a material adverse impact on our liquidity, results of operations and financial condition. Competition may adversely affect the profitability of our business.
Our ESG report is not a part of this Annual Report. As an owner and operator of correctional, detention, and residential reentry facilities, we are subject to risks relating to acts of God, outbreaks of epidemic or pandemic disease, global climate change, terrorist activity and war.
Our ESG report is not incorporated by reference into and does not form any part of this Annual Report. 51 As an owner and operator of correctional, detention, and residential reentry facilities, we are subject to risks relating to acts of God, outbreaks of epidemic or pandemic disease, global climate change, terrorist activity and war.
These provisions: • authorize us to issue "blank check" preferred stock, which is preferred stock that can be created and issued by our Board of Directors, without stockholder approval, with rights senior to those of common stock; • provide that directors may be removed with or without cause only by the affirmative vote of at least a majority of the votes of shares entitled to vote thereon; and • establish advance notice requirements for submitting nominations for election to the Board of Directors and for proposing matters that can be acted upon by stockholders at a meeting. 61 We are also subject to anti-takeover provisions under Maryland law, which could delay or prevent a change of control.
These provisions: • authorize us to issue "blank check" preferred stock, which is preferred stock that can be created and issued by our Board of Directors, without stockholder approval, with rights senior to those of common stock; • provide that directors may be removed with or without cause only by the affirmative vote of at least a majority of the votes of shares entitled to vote thereon; and • establish advance notice requirements for submitting nominations for election to the Board of Directors and for proposing matters that can be acted upon by stockholders at a meeting.
For example, several well-known companies have recently disclosed high-profile security breaches involving sophisticated and highly targeted attacks on their company's infrastructure or their customers' data, which were not recognized or detected until after such companies had been affected notwithstanding the preventive measures they had in place. In addition, since Russia's invasion of Ukraine, many companies have experienced heightened cybersecurity risks.
For example, several well-known companies have recently disclosed high-profile security breaches involving sophisticated and highly targeted attacks on their company's infrastructure or their customers' data, which were not recognized or detected until after such companies had been affected notwithstanding the preventive measures they had in place.
We have incurred and expect in the future to incur indebtedness that bears interest at variable rates, including indebtedness under our New Bank Credit Facility.
Rising interest rates increase the cost of our variable rate debt. We have incurred and expect in the future to incur indebtedness that bears interest at variable rates, including indebtedness under our New Bank Credit Facility.
If we failed to qualify as a REIT in any taxable year we elected REIT status, we would be subject to federal income tax (including any applicable alternative minimum tax for years before 2018 and after 2022) on our taxable income computed in the usual manner for corporate taxpayers and without any deduction for distributions to our stockholders.
These REIT provisions of the Code are complex and are not always subject to clear interpretation. 55 If we failed to qualify as a REIT in any taxable year we elected REIT status, we would be subject to federal income tax (including any applicable alternative minimum tax for years before 2018 and after 2022) on our taxable income computed in the usual manner for corporate taxpayers and without any deduction for distributions to our stockholders.
In addition, a REIT is required to distribute annually to its stockholders at least 90% of its REIT taxable income (determined without regard to the dividends paid deduction and by excluding capital gains) and must satisfy specified asset tests on a quarterly basis. These REIT provisions of the Code are complex and are not always subject to clear interpretation.
In addition, a REIT is required to distribute annually to its stockholders at least 90% of its REIT taxable income (determined without regard to the dividends paid deduction and by excluding capital gains) and must satisfy specified asset tests on a quarterly basis.
(Although, under long-standing policy, CoreCivic does not draft, lobby for, promote, or in any way take a position on policies that determine the basis or duration of an individual's incarceration or detention, CoreCivic supported adoption of The First Step Act because the legislation aligns with our publicly stated commitment to advocate for a range of recidivism-reducing policies by providing additional resources to help ensure that incarcerated individuals are given the best possible chance to successfully return to their communities and stay out of prison.) Also, the expansion of alternatives to incarceration and detention, such as electronic monitoring or the use of other technologies, may reduce the number of offenders who would otherwise be incarcerated or detained.
Although, under long-standing policy, CoreCivic does not draft, lobby for, promote, or in any way take a position on policies that determine the basis or duration of an individual's incarceration or detention, CoreCivic supported adoption of The First Step Act because the legislation aligns with our publicly stated commitment to advocate for a range of recidivism-reducing policies by providing additional resources to help ensure that incarcerated individuals are given the best possible chance to successfully return to their communities and stay out of prison.
However, we cannot assure that we will continue to achieve such renewal rates in the future. Our ability to secure new contracts to develop and manage correctional, detention, and residential reentry facilities depends on many factors outside our control.
However, we can provide no assurance that we will continue to achieve high renewal rates in the future. 41 Our ability to secure new contracts to develop and manage correctional, detention, and residential reentry facilities depends on many factors outside our control.
As of December 31, 2022, we employed 11,144 full- and part-time employees, including at our transportation and electronic monitoring subsidiaries, TransCor and Recovery Monitoring Solutions Corporation, respectively. Approximately 1,420 of our employees at eight of our facilities, or approximately 12.7% of our workforce, are represented by labor unions.
As of December 31, 2023, we employed 11,694 full- and part-time employees, including employees with our transportation and electronic monitoring subsidiaries, TransCor and Recovery Monitoring Solutions Corporation, respectively. Approximately 1,860 of our employees at 12 of our facilities, or approximately 15.9% of our workforce, are represented by labor unions.
Increasing activist resistance to the use of public-private partnerships for correctional, detention, and residential reentry facilities could impact our ability to obtain financing to grow our business or to refinance existing indebtedness, which could have a material adverse effect on our business, financial condition and results of operations.
Such alternatives could be on terms less favorable than under existing terms, which could have a material effect on our consolidated financial position, results of operations, or cash flows. 54 Increasing activist resistance to the use of public-private partnerships for correctional, detention, and residential reentry facilities could impact our ability to obtain financing to grow our business or to refinance existing indebtedness, which could have a material adverse effect on our business, financial condition and results of operations.
We expect to continue to invest in staffing resources during 2023, which may result in additional compensation and incremental expenses.
We have continued to invest in staffing resources during 2023, which has resulted in additional compensation and incremental expenses, and we expect to continue to invest in staffing resources in future quarters, which may result in additional compensation and incremental expenses.
The indentures related to our 4.625% senior notes due 2023 (until their repayment and satisfaction on February 1, 2023), 8.25% senior notes due 2026, and 4.75% senior notes due 2027, collectively referred to herein as our senior notes, and the indentures related to our New Bank Credit Facility, together with our senior notes, our Credit Agreements, contain restrictive covenants that limit our ability to engage in activities that may be in our long-term best interests.
The indentures related to our 8.25% senior notes due 2026, and 4.75% senior notes due 2027, collectively referred to herein as our senior notes, and the credit agreement related to our New Bank Credit Facility contain restrictive covenants that limit our ability to engage in activities that may be in our long-term best interests.
Legislation has been passed in California and New Jersey, where we operate detention facilities, as well as Maryland, Illinois, Oregon and Washington, that would prohibit state agencies from contracting to detain immigrants in civil cases with ICE and private detention facilities.
Legislation has been passed in California, Colorado, and New Jersey, where we operate detention facilities, as well as Maryland, Illinois, Oregon and Washington, that prohibits state and local agencies from contracting to detain immigrants in ICE custody.
In addition, in the event any of these options is exercised, there exists the risk that the contracting governmental agency will terminate the management contract associated with such facility. For the year ended December 31, 2022, the ten facilities currently subject to these options generated $325.7 million in revenue (17.7% of total revenue) and incurred $274.4 million in operating expenses.
In addition, in the event any of these options is exercised, there exists the risk that the contracting governmental agency will terminate the management contract associated with such facility. For the year ended December 31, 2023, the nine facilities currently subject to these options generated $304.2 million in revenue (16.0% of total revenue) and incurred $260.6 million in operating expenses.
Although we do not believe that we held any properties that would be characterized as held for sale to customers in the ordinary course of our business during those years we elected REIT status, we would be subject to such 100% excise tax if the Internal Revenue Service, or IRS, were to successfully challenge our characterization of our properties or the availability of certain safe harbors.
Although we do not believe that we held any properties that would be characterized as held for sale to customers in the ordinary course of our business during those years we elected REIT status, we would be subject to such 100% excise tax if the Internal Revenue Service, or IRS, were to successfully challenge our characterization of our properties or the availability of certain safe harbors. 56 General Risk Factors The market price of our equity securities may vary substantially, which may limit our stockholders' ability to liquidate their investment.
On December 6, 2022, we received notice from the CDCR of its intent to terminate the lease agreement for our 2,560-bed California City Correctional Center by March 31, 2024, due to the state's declining inmate population. The lease agreement is fully funded through the state of California's current fiscal year ending June 30, 2023.
On December 6, 2022, we received notice from the CDCR, of its intent to terminate the lease agreement for our 2,560-bed California City Correctional Center by March 31, 2024, due to the state's declining inmate population.
These policies and practices, whether it be the standards we set for ourselves or ESG criteria established by third parties, and whether or not we meet such standards, may influence our reputation.
The policies and practices we summarize in our ESG reporting, whether they relate to the standards we set for ourselves or ESG criteria established by third parties, and whether or not we meet such standards, may influence our reputation.
We may incur substantial costs in evaluating the feasibility of the development of a correctional or detention facility. As a result, we may report significant charges if we decide to abandon efforts to develop a correctional or detention facility on a particular site. Further, in many cases, the site selection is made by the contracting governmental entity.
We may incur substantial costs in evaluating the feasibility of the development of a correctional, detention, or residential reentry facility. As a result, we may report significant charges if we decide to abandon efforts to develop a correctional, detention, or residential reentry facility on a particular site.
As of December 31, 2022, we had total indebtedness of $1,264.5 million. Our indebtedness could have important consequences.
As of December 31, 2023, we had total indebtedness of $1,106.7 million. Our indebtedness could have important consequences.
If we are unable to meet our debt service obligations, we may need to reduce capital expenditures, restructure or refinance our indebtedness, obtain additional equity financing or sell assets.
If we are unable to meet our debt service obligations, we may need to suspend our share repurchase program, reduce capital expenditures, restructure or refinance our indebtedness, obtain additional equity financing or sell assets. We may be unable to restructure or refinance our indebtedness, obtain additional equity financing or sell assets on satisfactory terms or at all.
In addition, it may become more difficult to renew our existing contracts on favorable terms or otherwise. Efforts to reduce the U.S. federal deficit could adversely affect our liquidity, results of operations and financial condition.
Further, our government partners could reduce offender population levels in facilities we own or manage to contain their correctional costs. In addition, it may become more difficult to renew our existing contracts on favorable terms or otherwise. Efforts to reduce the U.S. federal deficit could adversely affect our liquidity, results of operations and financial condition.
As of December 31, 2022, we had $233.2 million of additional borrowing capacity available under our New Revolving Credit Facility.
As of December 31, 2023, we had $257.1 million of additional borrowing capacity available under our Revolving Credit Facility.
In addition, the ability of our Board of Directors to issue shares of preferred stock without any action on the part of our stockholders may impede a takeover of us and discourage or prevent a transaction that may be favorable to our stockholders.
In addition, the ability of our Board of Directors to issue shares of preferred stock without any action on the part of our stockholders may impede a takeover of us and discourage or prevent a transaction that may be favorable to our stockholders. 57 Our charter and bylaws and Maryland law could make it difficult for a third party to acquire our company.
For the twelve months ended December 31, 2021, USMS and ICE accounted for 23% ($433.6 million) and 30% ($552.2 million), respectively, of our total revenue. 40 Unlike the BOP, the USMS does not own detention capacity and relies on the private sector, along with various government agencies, for its detainee population.
For the year ended December 31, 2023, USMS and ICE accounted for 21% ($400.4 million) and 30% ($565.5 million), respectively, of our total revenue. 45 Unlike the BOP, the USMS does not own detention capacity and relies on the private sector, along with various government agencies, for its detainee population.
The non-renewal, termination, renegotiation or competitive re-bid of any of our contracts with governmental agencies could materially adversely affect our financial condition, results of operations and liquidity, including our ability to secure new facility contracts from others. 44 Based on information available as of the date of this Annual Report, other than the previously mentioned lease agreement with the CDCR for our California City facility, we believe we will renew all other contracts with our government partners that have expired or are scheduled to expire within the next twelve months that could have a material adverse impact on our financial statements.
Based on information available as of the date of this Annual Report, other than the previously mentioned lease agreement with the CDCR for our California City facility, we believe we will renew all other contracts with our government partners that have expired or are scheduled to expire within the next twelve months that could have a material adverse impact on our financial statements.
Further, we have incurred, and expect to continue to incur, incremental expenses to help ensure sufficient staffing levels under unique and challenging working conditions.
Further, we have incurred incremental expenses to help ensure sufficient staffing levels under unique and challenging working conditions. These incremental investments have enabled us to increase overall staffing levels.
The growing integration of ESG factors in making investment decisions is relatively new, and frameworks and methods used by investors for assessing ESG policies are not fully developed and vary considerably among the investment community.
The growing integration of ESG factors in making investment decisions is relatively new; frameworks and methods used by investors for assessing ESG policies are not fully developed and vary considerably among the investment community; and investor, societal and political sentiments on ESG, both as to particular ESG factors and as to its general relevance to investors and their decisions, continue to evolve.
Our charter and bylaws and Maryland law could make it difficult for a third party to acquire our company. The Maryland General Corporation Law and our charter and bylaws contain provisions that could delay, deter, or prevent a change in control of our company or our management.
The Maryland General Corporation Law and our charter and bylaws contain provisions that could delay, deter, or prevent a change in control of our company or our management. These provisions could also discourage proxy contests and make it more difficult for our stockholders to elect directors and take other corporate actions.
While a substantial portion of our cost structure is fixed, a substantial portion of our revenue is generated under facility ownership and management contracts that specify per diem payments based upon daily or minimum guaranteed occupancy levels. We are dependent upon the governmental agencies with which we have contracts to provide offenders for facilities we operate.
We are subject to fluctuations in occupancy levels, and a decrease in occupancy levels could cause a decrease in revenues and profitability. While a substantial portion of our cost structure is fixed, a substantial portion of our revenue is generated under facility ownership and management contracts that specify per diem payments based upon daily or minimum guaranteed occupancy levels.
Certain of our facilities are subject to options to purchase and reversions. Ten of our facilities are subject to an option to purchase by certain governmental agencies. Such options are exercisable by the corresponding contracting governmental entity generally at any time during the term of the respective facility contract.
Such options are exercisable by the corresponding contracting governmental entity generally at any time during the term of the respective facility contract.
The indentures related to our senior notes contain limitations on our ability to effect mergers and change of control events, as well as other limitations on our ability to create liens on our assets. The indenture related to our 8.25% senior notes due 2026 additionally limits our ability to incur indebtedness, make restricted payments and investments and prepay certain indebtedness.
The indentures related to our senior notes contain limitations on our ability to effect mergers and change of control events, as well as other limitations on our ability to create liens on our assets.
If we are unable to refinance our indebtedness on acceptable terms, we may be forced to agree to otherwise unfavorable financing terms or to sell one or more properties at unattractive prices or on disadvantageous terms. Any one of these options could have a material adverse effect on our business, financial condition, results of operations and our cash flows.
If we are unable to refinance our indebtedness on acceptable terms, we may be forced to agree to otherwise unfavorable financing terms or to sell one or more properties at unattractive prices or on disadvantageous terms.
We are required to repurchase all or a portion of our senior notes upon a change of control, and the debt under our New Bank Credit Facility is subject to acceleration upon a change of control.
Any one of these options could have a material adverse effect on our business, financial condition, results of operations and our cash flows. 53 We are required to repurchase all or a portion of our senior notes upon a change of control, and the debt under our New Bank Credit Facility is subject to acceleration upon a change of control.
Moreover, certain jurisdictions recently have required successful bidders to make a significant capital investment in connection with the financing of a particular project, a trend that could significantly burden our capital resources to remain competitive. We may compete for such projects with companies that have more financial resources than we have.
Moreover, certain jurisdictions may require successful bidders to make a significant capital investment in connection with the financing of a particular project. We may compete for such projects with companies that have more financial resources than we have. Further, we may not be able to obtain capital resources with favorable terms, if at all, when needed.
The loss or reduction in value of this contract, whether due to change in mission, legal challenges, or change in government policy, could have an adverse impact on our financial condition, results of operations, and cash flows. As a result of our acquisitions, we have recorded and will continue to record goodwill and other intangible assets.
The loss or reduction in value of this contract, whether due to change in mission, legal challenges, or change in government policy, could have an adverse impact on our financial condition, results of operations, and cash flows. We are dependent upon our senior management and our ability to attract and retain sufficient qualified personnel.
Any harm to our reputation resulting from setting these standards or our failure or perceived failure to meet such standards could impact: employee retention; the willingness of our governmental partners, vendors and suppliers to do business with us; investors willingness or ability to purchase or hold our securities; or our ability to access capital, any of which could adversely affect our business, financial performance, and growth.
Any harm to our reputation resulting from sharing information, setting goals, attempting to meet external standards set by third-parties or our failure or perceived failure to meet such standards or act in a manner that meets evolving societal and political perspectives could impact, among other things: employee retention; the willingness of our governmental partners, vendors and suppliers to do business with us; investors willingness or ability to purchase or hold our securities; or our ability to access capital, any of which could adversely affect our business, results of operations, financial condition and cash flows.
As a result, our reputation could be harmed if we fail to act responsibly in the areas in which we report, such as safety and security, human rights, diversity, quality assurance and facility oversight, community development, and environmental sustainability.
As a result, our reputation could be harmed if we fail to meet goals we share, report accurate data or act in a manner deemed appropriate or responsible in light of shifting social and political standards and perspectives in the areas in which we report, such as safety and security, human rights, diversity, quality assurance, community engagement, and environmental sustainability.
Occupancy rates may, however, decrease below these levels in the future, including as a result of COVID-19 and Title 42. When combined with relatively fixed costs for operating each facility, a decrease in occupancy levels could have an adverse impact on our profitability.
Occupancy rates may, however, decrease below these levels in the future. When combined with relatively fixed costs for operating each facility, a decrease in occupancy levels could have an adverse impact on our profitability. 39 We are dependent on government appropriations, and our results of operations may be negatively affected by governmental budgetary challenges or government shutdowns.
Our failure to comply with these covenants could result in an event of default that, if not cured or waived, could result in the acceleration of all or a substantial portion of our debt.
The indenture related to our 8.25% senior notes due 2026 additionally limits our ability to incur indebtedness, make restricted payments and investments and prepay certain indebtedness. 52 Our failure to comply with these covenants could result in an event of default that, if not cured or waived, could result in the acceleration of all or a substantial portion of our debt.
For the year ended December 31, 2022, ICE, USMS, and the BOP accounted for 29% ($527.3 million), 22% ($403.9 million), and 3% ($63.4 million), respectively, of our total revenue.
For the year ended December 31, 2023, ICE, USMS, and the BOP accounted for 30% ($565.5 million), 21% ($400.4 million), and 2% ($29.1 million), respectively, of our total revenue.
While we believe we will continue to have access to capital, restrictions on our access to capital, or increases in the cost of capital, could have a material adverse effect on our business, financial condition and results of operations . Rising interest rates increase the cost of our variable rate debt.
If this legislation becomes law, certain financial institutions may be prohibited from providing us with capital, credit or financial services. While we believe we will continue to have access to capital, restrictions on our access to capital, or increases in the cost of capital, could have a material adverse effect on our business, financial condition and results of operations .
We currently derive, and expect to continue to derive, a significant portion of our revenues from a limited number of governmental agencies. The three primary federal governmental agencies with correctional and detention responsibilities, ICE, the USMS, and the BOP accounted for 54% of our total revenues for the year ended December 31, 2022 ($994.6 million).
The three primary federal governmental agencies with correctional and detention responsibilities, ICE, the USMS, and the BOP accounted for 52% of our total revenues for the year ended December 31, 2023 ($995.0 million).

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Item 2. Properties

Properties — owned and leased real estate

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Biggest changeITEM 2. PR OPERTIES. The properties we owned at December 31, 2022 are described under Item 1 and in Note 4 of the Notes to the Consolidated Financial Statements contained in this Annual Report, as well as in Schedule III in Part IV of this Annual Report.
Biggest changeITEM 2. PR OPERTIES. The properties we owned at December 31, 2023 are described under Item 1 and in Note 4 of the Notes to the Consolidated Financial Statements contained in this Annual Report, as well as in Schedule III in Part IV of this Annual Report.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeIssuer Purchases of Equity Securities Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (1) October 1, 2022 - October 31, 2022 100 $ 8.98 100 $ 150,463,905 November 1, 2022 - November 30, 2022 - - - $ 150,463,905 December 1, 2022 - December 31, 2022 - - - $ 150,463,905 Total 100 $ 8.98 100 $ 150,463,905 (1) On May 12, 2022, the Company announced that its BOD had approved a share repurchase program to repurchase up to $150.0 million of the Company's common stock.
Biggest changeIssuer Purchases of Equity Securities Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (1) October 1, 2023 - October 31, 2023 — $ — — $ 124,906,633 November 1, 2023 - November 30, 2023 — $ — — $ 124,906,633 December 1, 2023 - December 31, 2023 872,219 $ 14.33 872,219 $ 112,406,645 Total 872,219 $ 14.33 872,219 $ 112,406,645 (1) On May 12, 2022, the Company announced that its BOD had approved a share repurchase program to repurchase up to $150.0 million of the Company's common stock.
Market Price of and Distr ibutions on Capital Stock Our common stock is traded on the New York Stock Exchange, or NYSE, under the symbol "CXW." On February 13, 2023, the last reported sale price of our common stock was $11.60 per share and there were approximately 2,400 registered holders and approximately 33,000 beneficial holders, respectively, of our common stock.
Market Price of and Distr ibutions on Capital Stock Our common stock is traded on the New York Stock Exchange, or NYSE, under the symbol "CXW." On February 9, 2024, the last reported sale price of our common stock was $14.84 per share and there were approximately 2,400 registered holders and approximately 32,000 beneficial holders, respectively, of our common stock.
As of December 31, 2022, the Company had repurchased a total of 6.6 million common shares at an aggregate cost of approximately $74.5 million.
As of December 31, 2023, the Company had repurchased a total of 10.1 million common shares at an aggregate cost of approximately $112.6 million. I TEM 6. [Reserved] 62
Removed
Repurchases of our outstanding common stock will be made in accordance with applicable securities laws and may be made at our discretion based on parameters set by the BOD from time to time in the open market, through privately negotiated transactions or otherwise.
Added
In addition, subsequently, our BOD approved a share repurchase program as further described below under the heading “Issuer Purchases of Equity Securities”.
Removed
The share repurchase program has no time limit and does not obligate us to purchase any particular amount of our common stock. I TEM 6. [Reserved] 63

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeEffective CoreCivic Date Safety Community Properties Total Facilities as of December 31, 2020 47 27 15 89 Termination of contract and lease of a Colorado reentry center January 2021 — (1 ) — (1 ) Sale of an idled government-leased property in Missouri May 2021 — — (1 ) (1 ) Sale of two leased properties in Florida and Ohio May 2021 — — (2 ) (2 ) Sale of a government-leased property in Maryland June 2021 — — (1 ) (1 ) Sale of an idled property in Pennsylvania June 2021 — — (1 ) (1 ) Termination of GRES partnership (Detroit, Michigan) September 2021 — — (1 ) (1 ) Lease of the Northwest New Mexico Correctional Center November 2021 (1 ) — 1 — Facilities as of December 31, 2021 46 26 10 82 Expiration of a managed-only contract in Indiana January 2022 (1 ) — — (1 ) Sale of a residential reentry facility in Colorado February 2022 — (1 ) — (1 ) Sale of a residential reentry facility in Colorado March 2022 — (1 ) — (1 ) Sale of two leased community corrections facilities in California July 2022 — — (2 ) (2 ) Sale and subsequent termination of the contract and lease of the McRae Correctional Facility in Georgia Aug/Nov 2022 (1 ) — — (1 ) Sale of an idled residential reentry facility in Oklahoma December 2022 — (1 ) — (1 ) Facilities as of December 31, 2022 44 23 8 75 71 Year Ended December 31, 2022 Compared to the Year Ended December 31, 2021 During the year ended December 31, 2022, net income attributable to common stockholders was $122.3 million, or $1.03 per diluted share, compared with a net loss attributable to common stockholders of $51.9 million, or $0.43 per diluted share, for the previous year.
Biggest changeThe following table sets forth the changes in the number of facilities operated for the years ended December 31, 2023 and 2022. 69 Effective CoreCivic Date Safety Community Properties Total Facilities as of December 31, 2021 46 26 10 82 Expiration of a managed-only contract in Indiana January 2022 (1 ) — — (1 ) Sale of a residential reentry facility in Colorado February 2022 — (1 ) — (1 ) Sale of a residential reentry facility in Colorado March 2022 — (1 ) — (1 ) Sale of two leased community corrections facilities in California July 2022 — — (2 ) (2 ) Sale and subsequent termination of the contract and lease of the McRae Correctional Facility in Georgia Aug/Nov 2022 (1 ) — — (1 ) Sale of an idled residential reentry facility in Oklahoma December 2022 — (1 ) — (1 ) Facilities as of December 31, 2022 44 23 8 75 Sale of two leased community corrections facilities in Pennsylvania May 2023 — — (2 ) (2 ) Lease of the Allen Gamble Correctional Center October 2023 (1 ) — 1 — Sale of a leased property in Georgia December 2023 — — (1 ) (1 ) Facilities as of December 31, 2023 43 23 6 72 Year Ended December 31, 2023 Compared to the Year Ended December 31, 2022 During the year ended December 31, 2023, net income was $67.6 million, or $0.59 per diluted share, compared with net income of $122.3 million, or $1.03 per diluted share, for the previous year.
The Private Prison EO directs the Attorney General to not renew United States Department of Justice, or DOJ, contracts with privately operated criminal detention facilities. Two agencies of the DOJ, the United States Federal Bureau of Prisons, or BOP, and the United States Marshals Service, or USMS, utilize our services.
The Private Prison EO directs the Attorney General to not renew DOJ contracts with privately operated criminal detention facilities. Two agencies of the United States Department of Justice, or DOJ, the United States Federal Bureau of Prisons, or BOP, and the United States Marshals Service, or USMS, utilize our services.
We believe the measurement is useful because we are compensated for operating and managing facilities at an offender per diem rate based upon actual or minimum guaranteed occupancy levels. We also measure our costs on a per compensated man-day basis, which is largely dependent upon the number of offenders we accommodate.
We believe the measurement is useful because we are compensated for operating and managing facilities at an offender per diem rate based upon actual or minimum guaranteed occupancy levels. We also measure our costs on a per compensated man-day basis, which are largely dependent upon the number of offenders we accommodate.
Gain on sale of real estate assets, net Gain on sale of real estate assets, net during the year ended December 31, 2022, primarily includes the gains on the sales of the McRae Correctional Facility in our Safety segment and the Stockton Female Community Corrections Facility and the Long Beach Community Corrections Center in our Properties segment, all of which were recorded in the third quarter of 2022, as previously described herein.
Gain on sale of real estate assets, net during the year ended December 31, 2022, primarily includes the gains on the sales of the McRae Correctional Facility in our Safety segment and the Stockton Female Community Corrections Facility and the Long Beach Community Corrections Center in our Properties segment, all of which were recorded in the third quarter of 2022, as previously described herein.
Our undiscounted cash flows factor in assumptions around when idle facilities will commence generating revenues based on our best estimates 69 around contract negotiations and market conditions. Our impairment evaluations also take into consideration our historical experience in securing new management contracts to utilize correctional facilities that had been previously idled for substantial periods of time.
Our undiscounted cash flows factor in assumptions around when idle facilities will commence generating revenues based on our best estimates around contract negotiations and market conditions. Our impairment evaluations also take into consideration our historical experience in securing new management contracts to utilize correctional facilities that had been previously idled for substantial periods of time.
Estimating vacancy deduction amounts can be complex and subject to management judgment and 76 estimations. Some of our government partners have granted waivers for vacancy deductions in recognition of the unique and challenging labor market, while others have discretionarily adjusted such deductions based on our extraordinary costs, efforts and incentive programs implemented to attract and retain staff.
Estimating vacancy deduction amounts can be complex and subject to management judgment and estimations. Some of our government partners have granted waivers for vacancy deductions in recognition of the unique and challenging labor market, while others have discretionarily adjusted such deductions based on our extraordinary costs, efforts and incentive programs implemented to attract and retain staff.
Two agencies of the DOJ, the BOP and the USMS utilize our services. The BOP houses inmates who have been convicted, and the USMS is generally responsible for detainees who are awaiting trial. The BOP has experienced a steady decline in inmate populations over the last decade, a trend that has been accelerated by the COVID-19 pandemic.
Two agencies of the DOJ, the BOP and the USMS, utilize our services. The BOP houses inmates who have been convicted, and the USMS is generally responsible for detainees who are awaiting trial. The BOP has experienced a steady decline in inmate populations over the last decade, a trend that was accelerated by the COVID-19 pandemic.
The BOP houses inmates who have been convicted, and the USMS is generally responsible for detainees who are awaiting trial. The BOP has experienced a steady decline in inmate populations over the last decade, a trend that has been accelerated by the COVID-19 pandemic.
The BOP houses inmates who have been convicted, and the USMS is generally responsible for detainees who are awaiting trial. The BOP has experienced a steady decline in inmate populations over the last decade, a trend that was accelerated by the COVID-19 pandemic.
We believe the impact of these per diem increases will provide further benefit to our operating margins as residential populations recover from the impact of COVID-19 and will help offset the wage and employee benefit increases we have been incurring, as further discussed hereinafter.
We believe the impact of these per diem increases will provide further benefit to our operating margins as residential populations continue to recover from the impact of COVID-19 and will help offset the wage and employee benefit increases we have been incurring, as further discussed hereinafter.
As further explained under the heading "Liquidity and Capital Resources," through the revocation of our REIT election and revised capital allocation strategy, following our first priority of reducing debt, we expect to allocate a substantial portion of our free cash flow to returning capital to stockholders, further enhancing stockholder value. 68 CRITICAL ACCOUN TING POLICIES AND ESTIMATES The consolidated financial statements in this report are prepared in conformity with U.S. generally accepted accounting principles, or GAAP.
As further explained under the heading "Liquidity and Capital Resources," through the revocation of our REIT election and revised capital allocation strategy, following our first priority of reducing debt, we expect to allocate a substantial portion of our free cash flow to returning capital to stockholders, further enhancing stockholder value. 66 CRITICAL ACCOUN TING POLICIES AND ESTIMATES The consolidated financial statements in this report are prepared in conformity with U.S. generally accepted accounting principles, or GAAP.
The 66 BOP transferred the BOP inmates to alternative federal capacity prior to expiration of the contract, and the McRae Correctional Facility converted to a facility owned and operated by the State of Georgia upon the termination of our lease with the Georgia Building Authority.
The BOP transferred the BOP inmates to alternative federal capacity prior to expiration of the contract, and the McRae Correctional Facility converted to a facility owned and operated by the State of Georgia upon the termination of our lease with the Georgia Building Authority.
Following our first priority of utilizing free cash flow to reduce debt, we expect to allocate a substantial portion of our free cash flow to returning capital to our shareholders, which could include share repurchases and future dividends.
Following our first priority of utilizing free cash flow to reduce debt, we expect to allocate a substantial portion of our free cash flow to returning capital to our shareholders, which could include share repurchases and/or future dividends.
In addition, our net cash flow used in financing activities was attributable to $15.1 million of scheduled principal repayments under our Term Loan A, Term Loan B, and our non-recourse mortgage note.
In addition, our net cash flow used in financing activities was attributable to $15.1 million of scheduled principal repayments under our Term Loan, Term Loan B, and our non-recourse mortgage note.
On December 22, 2022, we delivered an irrevocable notice to the trustee of the holders of the 4.625% Senior Notes that we elected to redeem in full the 4.625% Senior Notes that remained outstanding on February 1, 2023.
On December 22, 2022, we delivered an irrevocable notice to the holders of the 4.625% Senior Notes that we elected to redeem in full the 4.625% Senior Notes that remained outstanding on February 1, 2023.
We provide an essential governmental service, and believe our ability to provide flexible solutions and fulfill emergent needs of our federal customers would be very difficult and costly to replicate in the public sector. 64 On January 26, 2021, President Biden issued the Executive Order on Reforming Our Incarceration System to Eliminate the Use of Privately Operated Criminal Detention Facilities, or the Private Prison EO.
We provide an essential governmental service, and believe our ability to provide flexible solutions and fulfill emergent needs of our federal customers would be very difficult and costly to replicate in the public sector. 63 On January 26, 2021, President Biden issued the Executive Order on Reforming Our Incarceration System to Eliminate the Use of Privately Operated Criminal Detention Facilities, or the Private Prison EO.
Asset impairments Pursuant to the agreement to sell the Oklahoma City Transitional Center in our Community segment, which closed in the fourth quarter of 2022, we recognized an impairment charge of $3.5 million during the third quarter of 2022 associated with this facility, based on its estimated fair value less costs to sell.
Pursuant to the agreement to sell the Oklahoma City Transitional Center in our Community segment, which closed in the fourth quarter of 2022, we recognized an impairment charge of $3.5 million during the third quarter of 2022 associated with this facility, based on its estimated fair value less costs to sell.
Our Current Operations Our ongoing operations are organized into three principal business segments: • CoreCivic Safety segment, consisting of the 44 correctional and detention facilities that are owned, or controlled via a long-term lease, and managed by CoreCivic, as well as those correctional and detention facilities owned by third parties but managed by CoreCivic.
Our Current Operations Our ongoing operations are organized into three principal business segments: • CoreCivic Safety segment, consisting of the 43 correctional and detention facilities that are owned, or controlled via a long-term lease, and managed by CoreCivic, as well as those correctional and detention facilities owned by third parties but managed by CoreCivic.
With the extensively aged criminal justice infrastructure in the U.S. today, we believe we can bring real estate and financing solutions to government agencies like we did in connection with the construction of the Lansing Correctional Facility that commenced operations in January 2020.
With the extensively aged criminal justice infrastructure in the U.S. today, we believe we can bring real estate and financing solutions to government agencies as we did in connection with the construction of the Lansing Correctional Facility that commenced operations in January 2020.
An inability to attract and retain sufficient personnel in our existing facilities could also cause our government partners to assess liquidated damages, reduce our residential populations, or in extreme circumstances, cancel our contracts. We have also been subjected to increasing staff vacancy deductions as a result of the labor shortages, which are reflected as reductions to other management revenue.
An inability to attract and retain sufficient personnel in our existing facilities could also cause our government partners to assess liquidated damages, reduce our residential populations, or in certain circumstances, cancel our contracts. We have also been subjected to staff vacancy deductions as a result of the labor shortages, which are reflected as reductions to other management revenue.
As of December 31, 2022, neither CoreCivic nor any of its subsidiary guarantors had any material or significant restrictions on CoreCivic's ability to obtain funds from its subsidiaries by dividend or loan or to transfer assets from such subsidiaries.
As of December 31, 2023, neither CoreCivic nor any of its subsidiary guarantors had any material or significant restrictions on CoreCivic's ability to obtain funds from its subsidiaries by dividend or loan or to transfer assets from such subsidiaries.
Year Ended December 31, 2021 Compared to the Year Ended December 31, 2020 Pursuant to Regulation S-K item 303, a detailed review of our performance for the year ended December 31, 2021 compared to our performance for the year ended December 31, 2020 is set forth in "Part 2, Item 7.
Year Ended December 31, 2022 Compared to the Year Ended December 31, 2021 Pursuant to Regulation S-K item 303, a detailed review of our performance for the year ended December 31, 2022 compared to our performance for the year ended December 31, 2021 is set forth in "Part 2, Item 7.
Financing Activities Cash flow used in financing activities was $375.2 million for the year ended December 31, 2022 and was primarily attributable to debt repayments, including the aforementioned $167.5 million related to our Previous Term Loan A, $124.1 million related to our Term Loan B, and $80.6 million related to our 4.625% and 8.25% Senior Notes.
Our net cash flow used in financing activities was $375.2 million for the year ended December 31, 2022 and was primarily attributable to debt repayments, including $167.5 million related to our previous Term Loan, $124.1 million related to our Term Loan B, and $80.6 million related to our 4.625% and 8.25% Senior Notes.
As previously described herein, we have experienced labor shortages and wage pressures in many markets across the country, and have provided inflationary wage increases to remain competitive, including increases to most of our facility staff during July of the last three years since the COVID-19 pandemic started.
As previously described herein, we have experienced labor shortages and wage pressures in many markets across the country, and have provided inflationary wage increases above historical averages to remain competitive, including increases to most of our facility staff during July of the last three years since the COVID-19 pandemic started.
Further, we have incurred, and expect to continue to incur, incremental expenses to help ensure sufficient staffing levels under unique and challenging working conditions, including but not limited to, shift incentive bonuses, recruiting and retention bonuses, temporary employee housing expenses and travel reimbursements, off-cycle wage increases, as well as relocation incentives.
Further, we have incurred incremental expenses to help ensure sufficient staffing levels under unique and challenging working conditions, including but not limited to, shift incentive bonuses, recruiting and retention bonuses, temporary employee housing expenses and travel reimbursements, off-cycle wage increases, as well as relocation incentives.
The letters of credit are renewable annually. We did not have any draws under these outstanding letters of credit during 2022, 2021, or 2020. 92 INFLA TION Many of our contracts include provisions for inflationary indexing, which may mitigate an adverse impact of inflation on net income.
The letters of credit are renewable annually. We did not have any draws under these outstanding letters of credit during 2023, 2022, or 2021. INFLA TION Many of our contracts include provisions for inflationary indexing, which may mitigate an adverse impact of inflation on net income.
Our effective tax rate could fluctuate in the future based on changes in estimates of taxable income, the implementation of additional tax planning strategies, changes in federal or state tax rates or laws affecting tax credits available to us, changes in other tax laws, changes in estimates related to uncertain tax positions, or changes in state apportionment factors, as well as changes in the valuation allowance applied to our deferred tax assets that are based primarily on the amount of state net operating losses and tax credits that could expire unused.
Our effective tax rate could fluctuate in the future based on changes in estimates of taxable income, the implementation of additional tax planning strategies, changes in federal or state tax rates or laws affecting tax credits available to us, changes in other tax laws, limits on certain deductible expenses, changes in estimates related to uncertain tax positions, or changes in state apportionment factors, as well as changes in the valuation allowance applied to our deferred tax assets that are based primarily on the amount of state net operating losses and tax credits that could expire unused.
As of December 31, 2022 and 2021, we had $6.9 million and $6.8 million, respectively, in accrued liabilities under the provisions of Accounting Standards Codification, or ASC, Subtopic 450-20, "Loss Contingencies," related to certain claims and legal proceedings in which we are involved.
As of December 31, 2023 and 2022, we had $7.8 million and $6.9 million, respectively, in accrued liabilities under the provisions of Accounting Standards Codification, or ASC, Subtopic 450-20, "Loss Contingencies," related to certain claims and legal proceedings in which we are involved.
Gross interest income is earned on notes receivable, investments, cash and cash equivalents, and restricted cash. Interest income also includes interest income associated with the 20-year finance receivable associated with the Lansing Correctional Facility lease to the KDOC, which commenced in January 2020, and amounted to $8.7 million and $8.8 million in 2022 and 2021, respectively.
Gross interest income is earned on notes receivable, investments, cash and cash equivalents, and restricted cash. Interest income also includes interest income associated with the 20-year finance receivable associated with the Lansing Correctional Facility lease to the KDOC, which commenced in January 2020, and amounted to $8.5 million and $8.7 million in 2023 and 2022, respectively.
During the third quarter of 2022, we began marketing for sale our Roth Hall Residential Reentry Center and the Walker Hall Residential Reentry Center, both of which are located in Philadelphia, Pennsylvania.
During the third quarter of 2022, we began marketing for sale our Roth Hall Residential Reentry Center and the Walker Hall Residential Reentry Center, both located in Philadelphia, Pennsylvania.
Income tax expense for 2022 included an income tax expense of $19.3 million associated with the gain on sale of real estate assets previously described, partially offset by an income tax benefit associated with shareholder litigation expenses, asset impairments, and expenses associated with debt repayments and refinancing transactions previously described.
Income tax expense related to operations for 2022 included an income tax expense of $19.3 million associated with the gain on sale of real estate assets previously described, partially offset by an income tax benefit associated with shareholder litigation expenses, asset impairments, and expenses associated with debt repayments and refinancing transactions previously described.
We have accrued the estimated liability for workers' compensation claims based on an actuarial valuation of the outstanding liabilities using a combination of actuarial methods used to project ultimate losses, and our automobile insurance claims based on estimated development factors on claims incurred.
We accrue the estimated liability for workers' compensation claims based on an actuarial valuation of the outstanding liabilities using a combination of actuarial methods used to project ultimate losses, and our automobile insurance claims based on estimated development factors on claims incurred.
As a result, in the first quarter of 2020, the federal government decided to deny entry at the United States southern border to asylum-seekers and anyone crossing the southern border without proper documentation or authority in an effort to contain the spread of COVID-19, a policy known as Title 42, continued by the Biden administration.
As a result, in the first quarter of 2020, the federal government decided to deny entry at the United States southern border to asylum-seekers and anyone crossing the southern border without proper documentation or authority in an effort to contain the spread of COVID-19, a policy known as Title 42.
Gross interest expense was based on outstanding borrowings under our Bank Credit Facility, our Term Loan B (which we repaid in full in May 2022, as further described hereinafter), our outstanding senior unsecured notes, and our outstanding non-recourse mortgage notes, as well as the amortization of loan costs and unused facility fees.
Gross interest expense was based on outstanding borrowings under our revolving credit facility, or Revolving Credit Facility, our outstanding term loan, or Term Loan, and our Term Loan B (which we repaid in full in May 2022, as further described hereinafter), our outstanding senior unsecured notes, and our outstanding non-recourse mortgage note, as well as the amortization of loan costs and unused facility fees.
For the years ended December 31, 2022 and 2021, our total segment net operating income, which we define as facility revenue (including interest income associated with finance leases) less operating expenses, was divided among our three business segments as follows: For the Years Ended December 31, 2022 2021 Segment: Safety 84.1 % 85.5 % Community 3.9 % 3.3 % Properties 12.0 % 11.2 % 72 Facility Operations A key performance indicator we use to measure the revenue and expenses associated with the operation of the correctional, detention, and residential reentry facilities we own or manage is expressed in terms of a compensated man-day, which represents the revenue we generate and expenses we incur for one offender for one calendar day.
For the years ended December 31, 2023 and 2022, our total segment net operating income, which we define as facility revenue (including interest income associated with finance leases) less operating expenses, was divided among our three business segments as follows: 70 For the Years Ended December 31, 2023 2022 Segment: Safety 84.7 % 84.1 % Community 5.2 % 3.9 % Properties 10.1 % 12.0 % Facility Operations A key performance indicator we use to measure the revenue and expenses associated with the operation of the correctional, detention, and residential reentry facilities we own or manage is expressed in terms of a compensated man-day, which represents the revenue we generate and expenses we incur for one offender for one calendar day.
The new award expands and strengthens our relationship with the state of Arizona and we believe will maximize the utilization of our La Palma facility, while providing ICE with the ability to continue its mission under existing contracts at alternative facilities we own and operate in the same geographic region.
The management contract expands and strengthens our relationship with the state of Arizona and we believe will maximize the utilization of our La Palma facility, while providing ICE with the ability to continue its mission under existing contracts at alternative facilities we own and operate in the same geographic region.
Governments are continuing to assess their need for correctional space in light of COVID-19, and several are continuing to consider alternative correctional capacity for their aged or inefficient infrastructure, or are seeking cost savings by utilizing the private sector, which could result in increased future demand for the solutions we provide.
Governments are continuing to assess their need for correctional space, and several are continuing to consider alternative correctional capacity for their aged or inefficient infrastructure, or are seeking cost savings by utilizing the private sector, which could result in increased future demand for the solutions we provide.
Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on February 18, 2022. 86 LIQUIDITY AND CA PITAL RESOURCES Our principal capital requirements are for working capital, capital expenditures, and debt service payments, as well as outstanding commitments and contingencies, as further discussed in the notes to our financial statements.
Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on February 21, 2023. 82 LIQUIDITY AND CA PITAL RESOURCES Our principal capital requirements are for working capital, capital expenditures, and debt service payments, as well as outstanding commitments and contingencies, as further discussed in the notes to our financial statements.
Supplemental Guarantor Information All of the domestic subsidiaries of CoreCivic (as the parent corporation) that guarantee the Credit Agreements have provided full and unconditional guarantees of our Senior Notes.
Supplemental Guarantor Information All of the domestic subsidiaries of CoreCivic (as the parent corporation) that guarantee the Bank Credit Facility have provided full and unconditional guarantees of our Senior Notes.
We incurred operating expenses at these idled facilities of approximately $9.7 million, $7.6 million, and $7.3 million during the period they were idle for the years ended December 31, 2022, 2021, and 2020, respectively. The amount for 2021 excludes $2.2 million of operating expenses incurred at our West Tennessee Detention Facility during the fourth quarter of 2021.
We incurred operating expenses at these idled facilities of approximately $12.5 million, $9.7 million, and $7.6 million during the period they were idle for the years ended December 31, 2023, 2022, and 2021, respectively. The amount for 2021 excludes $2.2 million of operating expenses incurred at our West Tennessee Detention Facility during the fourth quarter of 2021.
As we obtain additional information and refine our methods regarding the assumptions and estimates we use to recognize liabilities incurred, we will adjust our reserves accordingly. Arriving at these estimates, however, requires a significant amount of subjective judgment by management, and as a result these estimates are uncertain, and our actual exposure may be different from our estimates.
As we obtain additional information and refine our methods regarding the assumptions and estimates we use to recognize liabilities incurred, we will adjust our reserves accordingly. Arriving at these estimates, however, requires subjective judgment, and as a result these estimates are uncertain, and our actual exposure may be different from our estimates.
RE SULTS OF OPERATIONS Our results of operations are impacted by the number of correctional and detention facilities we operated, including 40 we owned and four owned by our government partners (CoreCivic Safety), the number of residential reentry centers we owned and operated (CoreCivic Community), the number of facilities we leased to other operators (CoreCivic Properties), and the facilities we owned that were not in operation.
RE SULTS OF OPERATIONS Our results of operations are impacted by the number of correctional and detention facilities we operated, including 39 we owned and four owned by our government partners (CoreCivic Safety), the number of residential reentry centers we owned and operated (CoreCivic Community), the number of facilities we leased to government agencies (CoreCivic Properties), and the facilities we owned that were not in operation.
The amount for 2022 excludes $3.5 million of operating expenses incurred at the West Tennessee Detention Facility and the Midwest Regional Reception Center (formerly known as the Leavenworth Detention Center) during the three months ended March 31, 2022.
The amount for 2022 excludes $3.5 million of operating expenses incurred at the West Tennessee Detention Facility and the Midwest Regional Reception Center during the three months ended March 31, 2022.
Our net cash flow used in financing activities also included $79.9 million for the share repurchase program our BOD authorized during the second quarter of 2022, as well as the purchase and retirement of common stock that was issued in connection with equity-based compensation, and dividend payments on restricted stock units that became vested of $0.9 million.
Our net cash flow used in financing activities also included $79.9 million for the share repurchase program, as well as the purchase and retirement of common stock that was issued in connection with equity-based compensation, and dividend payments on restricted stock units that became vested of $0.9 million.
CoreCivic Community CoreCivic Community includes the operating results of the residential reentry centers that we operated during each period, along with the operating results of our electronic monitoring and case management services. Total revenue generated by CoreCivic Community increased $3.8 million, or 3.8%, from $99.4 million during 2021 to $103.3 million during 2022.
CoreCivic Community CoreCivic Community includes the operating results of the residential reentry centers that we operated during each period, along with the operating results of our electronic monitoring and case management services. Total revenue generated by CoreCivic Community increased $11.8 million, or 11.4%, from $103.3 million during 2022 to $115.1 million during 2023.
Operating Expenses Operating expenses totaled $1,413.8 million and $1,337.1 million in 2022 and 2021, respectively. Operating expenses consist of those expenses incurred in the operation and management of correctional, detention, and residential reentry facilities, as well as those expenses incurred in the operations of TransCor and our electronic monitoring and case management services.
Operating Expenses Operating expenses totaled $1,462.4 million and $1,413.8 million in 2023 and 2022, respectively. Operating expenses consist of those expenses incurred in the operation and management of correctional, detention, and residential reentry facilities, as well as those expenses incurred in the operations of TransCor and our electronic monitoring and case management services.
During the years ended December 31, 2022 and 2021, we generated $153.6 million and $263.2 million, respectively, in cash through operating activities. We currently expect to be able to meet our cash expenditure requirements for the next year and beyond utilizing cash on hand, cash flows from operations, and availability under our New Revolving Credit Facility.
During the years ended December 31, 2023 and 2022, we generated $231.9 million and $153.6 million, respectively, in cash through operating activities. We currently expect to be able to meet our cash expenditure requirements for the next year and beyond utilizing cash on hand, cash flows from operations, and availability under our Revolving Credit Facility.
We have also been in discussions with several state partners that have experienced challenges in staffing their public-sector facilities and are seeking solutions from the private sector.
We have also been in discussions with several state and county government agencies that have experienced challenges in staffing their public-sector facilities and are seeking solutions from the private sector.
We believe FFO is an important supplemental measure of our operating performance and believe it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs and other real estate operating companies, many of which present FFO when reporting results.
As a company with extensive real estate holdings, we believe FFO is an important supplemental measure of our operating performance and believe it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs and other real estate operating companies, many of which present FFO when reporting results.
The negative impact on operating margins resulting from these factors was partially offset by a 3.9% increase in average revenue per compensated man-day during 2022 when compared to the prior year.
The negative impact on operating margins resulting from these factors was partially offset by a 4.9% increase in average revenue per compensated man-day during 2023 when compared to 2022.
We have consistently accrued the estimated liability for employee health insurance claims based on our history of claims experience and the estimated time lag between the incident date and the date we pay the claims.
We accrue the estimated liability for employee health insurance claims based on our history of claims experience and the estimated time lag between the incident date and the date we pay the claims.
Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good. As of December 31, 2022, through our CoreCivic Safety segment, we operated 44 correctional and detention facilities, 40 of which we owned, with a total design capacity of approximately 66,000 beds.
Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good. As of December 31, 2023, through our CoreCivic Safety segment, we operated 43 correctional and detention facilities, 39 of which we owned, with a total design capacity of approximately 65,000 beds.
We will also pursue attractive growth opportunities, including new development opportunities in our Properties segment, to meet the need to modernize outdated correctional infrastructure across the country, and explore potential opportunities to expand the scope of non-residential correctional alternatives we provide in our Community segment that were not available under the REIT structure.
We will also pursue attractive growth opportunities, including new development opportunities in our Properties segment, to meet the need to modernize outdated correctional infrastructure across the country, and explore potential opportunities to expand the scope of non-residential correctional alternatives we provide in our Community segment.
Incremental expenses include, but may not be limited to, incentive payments to our front-line and field staff, temporary employee housing expenses and other travel related reimbursements, additional paid time off, off-cycle wage increases in certain markets to remain competitive, further increases in registry nursing expenses, as well as expenses to procure personal protective equipment and other supplies.
Incremental expenses include, but may not be limited to, incentive payments to our front-line and field staff, temporary employee housing expenses and other travel related reimbursements, additional paid time off, off-cycle wage increases in certain markets to remain competitive, and registry nursing expenses.
However, we believe this conversion in corporate tax structure improves our overall credit profile and will lower our overall cost of capital, as we are able to allocate our free cash flow toward the repayment of debt, which may include the purchase of our outstanding debt in open market transactions, privately negotiated transactions or otherwise.
We believe this conversion in corporate tax structure improves our overall credit profile, as we are able to allocate our free cash flow toward the repayment of debt, which may include the purchase of our outstanding debt in open market transactions, privately negotiated transactions or otherwise, and to exercise more discretion in returning capital to our shareholders.
Any future dividend is subject to the BOD's determinations as to the amount of distributions and the timing thereof, as well as limitations under the Company's debt covenants.
Any future dividend is subject to the Board of Directors', or BODs', determinations as to the amount of distributions and the timing thereof, as well as limitations under the Company's debt covenants.
Such previously idled correctional facilities are currently being operated under contracts that continue to generate cash flows resulting in the recoverability of the net book value of the previously idled facilities by material amounts. We also perform sensitivity analyses that consider reductions to such cash flows.
Such previously idled correctional facilities are currently being operated under contracts that continue to generate cash flows resulting in the recoverability of the net book value of the previously idled facilities by material amounts.
The solutions we provide to our federal customers, including primarily ICE, the USMS, and the BOP, continue to be a significant component of our business. The federal customers in our Safety and Community segments generated approximately 54% and 56% of our total revenue in 2022 and 2021, respectively, decreasing $56.0 million, or 5.3%, in 2022 from 2021.
The solutions we provide to our federal customers, including primarily ICE and the USMS, continue to be a significant component of our business. The federal customers in our Safety and Community segments generated approximately 52% and 54% of our total revenue in 2023 and 2022, respectively, increasing $0.5 million, or 0.1%, in 2023 from 2022.
It is possible that future cash flows and results of operations could be materially affected by changes in our assumptions, new developments, or by the effectiveness of our strategies. 70 Legal reserves.
It is possible that future cash flows and results of operations could be materially affected by changes in assumptions and new developments. Legal reserves.
Operating expenses also consist of those expenses incurred in the operation of facilities we lease to third-party operators. 75 Operating expenses incurred by CoreCivic Safety and CoreCivic Community in connection with the operation and management of our correctional, detention, and residential reentry facilities, as well as those incurred in the operations of TransCor and our electronic monitoring and case management services, increased $81.0 million, or 6.1%, during 2022 compared with 2021.
Operating expenses also consist of those expenses incurred in the operation of facilities we lease to third-party operators. 73 Operating expenses incurred by CoreCivic Safety and CoreCivic Community in connection with the operation and management of our correctional, detention, and residential reentry facilities, as well as those incurred in the operations of TransCor and our electronic monitoring and case management services, increased $48.8 million, or 3.5%, during 2023 compared with 2022.
Revenue and expenses per compensated man-day for all of the correctional, detention, and residential reentry facilities placed into service that we owned or managed, exclusive of those held for lease, and for TransCor were as follows for the years ended December 31, 2022 and 2021: For the Years Ended December 31, 2022 2021 Revenue per compensated man-day $ 93.26 $ 89.86 Operating expenses per compensated man-day: Fixed expense 51.41 47.51 Variable expense 21.31 18.16 Total 72.72 65.67 Operating income per compensated man-day $ 20.54 $ 24.19 Operating margin 22.0 % 26.9 % Average compensated occupancy 70.3 % 71.5 % Average available beds 73,165 74,957 Average compensated population 51,446 53,613 Revenue Total revenue consists of management revenue we generate through CoreCivic Safety and CoreCivic Community in the operation of correctional, detention, and residential reentry facilities, as well as the revenue we generate from TransCor and our electronic monitoring and case management services.
Revenue and expenses per compensated man-day for all of the correctional, detention, and residential reentry facilities placed into service that we owned or managed, exclusive of those held for lease, and for TransCor were as follows for the years ended December 31, 2023 and 2022: For the Years Ended December 31, 2023 2022 Revenue per compensated man-day $ 98.06 $ 93.26 Operating expenses per compensated man-day: Fixed expense 55.40 51.41 Variable expense 21.19 21.31 Total 76.59 72.72 Operating income per compensated man-day $ 21.47 $ 20.54 Operating margin 21.9 % 22.0 % Average compensated occupancy 71.6 % 70.3 % Average available beds 70,647 73,165 Average compensated population 50,566 51,446 71 Revenue Total revenue consists of management revenue we generate through CoreCivic Safety and CoreCivic Community in the operation of correctional, detention, and residential reentry facilities, as well as the revenue we generate from TransCor and our electronic monitoring and case management services.
Based on information available as of the date of this Annual Report, other than the previously mentioned lease agreement with the CDCR for our California City facility, we believe we will renew all other contracts with our government partners that have expired or are scheduled to expire within the next twelve months that could have a material adverse impact on our financial statements.
Facility net operating income at the facility was $25.5 million and $27.9 million for 2023 and 2022, respectively. 75 Based on information available as of the date of this Annual Report, other than the previously mentioned lease agreement with the CDCR for our California City facility, we believe we will renew all other contracts with our government partners that have expired or are scheduled to expire within the next twelve months that could have a material adverse impact on our financial statements.
We believe we can also provide other real estate solutions to government agencies faced with extensively aged criminal justice infrastructure, including "turn-key" solutions like those we are providing to the state of Arizona in connection with the new contract that commenced during the second quarter of 2022 at our La Palma Correctional Center, as well as real estate only solutions to government agencies that need correctional capacity where they prefer to perform the operations.
We believe we can also provide other real estate solutions to government agencies faced with extensively aged criminal justice infrastructure, including "turn-key" solutions similar to those we are providing to the state of Arizona in connection with the new contract that commenced during the second quarter of 2022 at our La Palma Correctional Center, as well as real estate only solutions to government agencies that need correctional capacity where they prefer to operate the facility, similar to the lease of our Allen Gamble Correctional Center in Oklahoma to the ODC signed in 2023, as previously described herein.
Additionally, during the fourth quarter of 2022, we recognized an impairment charge of $0.7 million pursuant to an agreement to sell the 60-bed Columbine Facility in Denver, Colorado. The Columbine Facility is an idle residential reentry facility in our Community segment.
Additionally, during the fourth quarter of 2022, we recognized an impairment charge of $0.7 million based on its estimated fair value pursuant to an agreement to sell the 60-bed Columbine Facility in Denver, Colorado, an agreement that was terminated in 2023. The Columbine Facility is an idle residential reentry facility in our Community segment.
In connection with the sale, we entered into an agreement to lease the McRae facility from the Georgia Building Authority through November 30, 2022 to allow us to fulfill our obligations to the BOP.
We had a management contract with the BOP at this facility, which expired on November 30, 2022. In connection with the sale, we entered into an agreement to lease the McRae facility from the Georgia Building Authority through November 30, 2022 to allow us to fulfill our obligations to the BOP.
COVID-19 notwithstanding, we believe the long-term growth opportunities of our business remain attractive as government agencies consider their emergent needs (including capacity to help mitigate the spread of infectious disease), as well as the efficiency and offender programming opportunities we provide as flexible solutions to satisfy our partners' needs.
We believe the long-term growth opportunities of our business remain attractive as government agencies consider their emergent needs, as well as the efficiency and offender programming opportunities we provide as flexible solutions to satisfy our partners' needs.
The primary risk we face for asset impairment charges is associated with facilities we own. As of December 31, 2022, we had $2.2 billion in property and equipment, including $195.6 million in long-lived assets at seven idled CoreCivic Safety correctional facilities.
The primary risk we face for asset impairment charges is associated with facilities we own. As of December 31, 2023, we had $2.1 billion in property and equipment, including $247.0 million in long-lived assets at eight idled correctional facilities.
Financial results for 2022 reflected an $87.7 million gain on the sale of real estate assets, $8.1 million of expenses associated with debt repayments and refinancing transactions, $4.4 million of asset impairments, and $1.9 million associated with shareholder litigation expense. Collectively, these special items were partially offset by an income tax expense of $19.3 million associated with these special items.
Financial results for 2022 reflected an $87.7 million gain on the sale of real estate assets, $8.1 million of expenses associated with debt repayments and refinancing transactions, $4.4 million of asset impairments, and $1.9 million associated with shareholder litigation expense.
Total revenue also consists of lease revenue we generate through CoreCivic Properties from facilities we lease to government agencies.
Total revenue also consists of lease revenue we generate through CoreCivic Properties from facilities we lease to third-party operators.
The following table displays the revenue and expenses per compensated man-day for CoreCivic Community's residential reentry facilities placed into service that we own and manage, but exclusive of the electronic monitoring and case management services given that revenue is not generated on a per compensated man-day basis for these services: For the Years Ended December 31, 2022 2021 CoreCivic Community Facilities: Revenue per compensated man-day $ 65.58 $ 63.40 Operating expenses per compensated man-day: Fixed expense 38.84 38.46 Variable expense 11.94 8.76 Total 50.78 47.22 Operating income per compensated man-day $ 14.80 $ 16.18 Operating margin 22.6 % 25.5 % Average compensated occupancy 57.6 % 55.2 % Average available beds 4,869 5,054 Average compensated population 2,803 2,791 Similar to our CoreCivic Safety segment, operating margins in our CoreCivic Community segment were negatively impacted during 2022 by increased operating expenses per man-day, which were driven primarily by higher wage rates and increased variable expenses, including most notably travel related expenses.
The following table displays the revenue and expenses per compensated man-day for CoreCivic Community's residential reentry facilities placed into service that we own and manage, but exclusive of the electronic monitoring and case management services given that revenue is not generated on a per compensated man-day basis for these services: For the Years Ended December 31, 2023 2022 CoreCivic Community Facilities: Revenue per compensated man-day $ 73.98 $ 65.58 Operating expenses per compensated man-day: Fixed expense 41.50 38.84 Variable expense 12.37 11.94 Total 53.87 50.78 Operating income per compensated man-day $ 20.11 $ 14.80 Operating margin 27.2 % 22.6 % Average compensated occupancy 62.2 % 57.6 % Average available beds 4,669 4,869 Average compensated population 2,904 2,803 Similar to our CoreCivic Safety segment, operating margins in our CoreCivic Community segment were negatively impacted during 2023 by increased operating expenses per man-day, which were driven primarily by higher staffing levels and wage rates.
The new lease agreement commenced on November 1, 2021 and includes extension options that could extend the term of the lease through October 31, 2041. We will retain responsibility for facility maintenance throughout the term of the lease.
The new lease agreement commenced on November 1, 2021 and includes extension options that could extend the term of the lease through October 31, 2041.
On July 19, 2022, we sold the Stockton Female Community Corrections Facility and the Long Beach Community Corrections Center, both located in California, generating net sales proceeds of $10.9 million. During 2021, these two properties generated facility net operating income of $1.0 million.
During 2023 and 2022, CoreCivic Properties generated 10.1% and 12.0%, respectively, of our total segment net operating income. During July 2022, we sold the Stockton Female Community Corrections Facility and the Long Beach Community Corrections Center, both located in California, generating net sales proceeds of $10.9 million.
On December 6, 2022, we received notice from the CDCR of its intent to terminate the lease agreement for our 2,560-bed California City Correctional Center by March 31, 2024, due to the state's declining inmate population. The lease agreement is fully funded through the state of California's current fiscal year ending June 30, 2023.
On December 6, 2022, we received notice from the CDCR of its intent to terminate the lease agreement for our 2,560-bed California City Correctional Center by March 31, 2024, due to the state's declining inmate population.
Investing Activities Our cash flow provided by investing activities was $73.0 million for the year ended December 31, 2022 and was primarily attributable to $157.7 million in net proceeds from the sale of assets, partially offset by capital expenditures for facility development and expansions of $23.1 million and $58.3 million for facility maintenance and information technology capital expenditures.
Investing Activities Our net cash flow used in investing activities was $58.9 million for the year ended December 31, 2023 and was primarily attributable to capital expenditures for facility development and expansions of $4.9 million and $65.4 million for facility maintenance and information technology capital expenditures, partially offset by $11.1 million in net proceeds from the sale of assets.
In addition, we had $150.4 million outstanding under the Kansas Notes with a fixed stated interest rate of 4.43% and $96.3 million outstanding under our New Term Loan A with a variable interest rate of 7.5%. We had $16.8 million of letters of credit outstanding under our New Revolving Credit Facility at December 31, 2022.
In addition, as of December 31, 2023, we had $145.5 million outstanding under the Kansas Notes with a fixed stated interest rate of 4.43% and $125.0 million outstanding under our Term Loan with a variable interest rate of 8.7%. We had $17.9 million of letters of credit outstanding under our Revolving Credit Facility at December 31, 2023.
Recruiting has been particularly challenging during the pandemic due to the front-line nature of the services we provide, and the shortage of nursing staff across the country has intensified as a result of the COVID-19 pandemic, resulting in a significant increase in registry nursing expenses.
Recruiting has been particularly challenging since the start of the pandemic due to the front-line nature of the services we provide and the shortage of nursing staff across the country intensified as a result of the COVID-19 pandemic and the challenging labor market.
Our management contracts generally provide our customers with the right to terminate our management contracts at any time without cause. We are actively engaged in marketing our available capacity as solutions to meet the needs of potential customers. Historically, we have been successful in identifying opportunities to utilize our inventory of available beds and the beds that we have constructed.
Our management contracts generally provide our customers with the right to terminate our management contracts at any time without cause. We are actively engaged in marketing our available capacity as solutions to meet the needs of potential customers.
Based on our current total leverage ratio, loans under our New Bank Credit Facility bear interest at a base rate plus a margin of 2.25% or at the Bloomberg Short-Term Bank Yield Index, or BSBY, rate plus a margin of 3.25%, and a commitment fee equal to 0.45% of the unfunded balance of the New Revolving Credit Facility.
Based on our total leverage ratio, interest on loans under our Previous Bank Credit Facility through October 10, 2023 were at a base rate plus a margin of 2.25% or at BSBY plus a margin of 3.25%, and a commitment fee equal to 0.45% of the unfunded balance of the Revolving Credit Facility.
We used a combination of cash on hand and available capacity under our New Revolving Credit Facility to fund the redemption. Following the redemption of the 4.625% Senior Notes, we have no debt maturities until 2026. Our cash flow is subject to the receipt of sufficient funding of and timely payment by contracting governmental entities.
We used a combination of cash on hand and available capacity under our Revolving Credit Facility to fund the redemption. Following the redemption of the 4.625% Senior Notes, we have no debt maturities until 2026.
CoreCivic Community also includes the operating results of our electronic monitoring and case management service. • CoreCivic Properties segment, consisting of the 8 real estate properties owned by CoreCivic and leased to government agencies.
CoreCivic Community also includes the operating results of our electronic monitoring and case management services. • CoreCivic Properties segment, consisting of the 6 correctional real estate properties owned by CoreCivic.
Further, although disrupted by the COVID-19 pandemic, several of our existing federal and state partners, as well as prospective state partners, have been experiencing growth in offender populations and overcrowded conditions, as well as an increase in violent crime.
Further, several of our existing government partners, as well as prospective government partners, have been experiencing growth in offender populations and overcrowded conditions, as well as an increase in violent crime.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeWe also had $150.4 million outstanding under the Kansas Notes with a fixed interest rate of 4.43%. Because the interest rates with respect to these instruments are fixed, a hypothetical 100 basis point increase or decrease in market interest rates would not have a material impact on our financial statements.
Biggest changeBecause the interest rates with respect to these instruments are fixed, a hypothetical 100 basis point increase or decrease in market interest rates would not have a material impact on our financial statements. We may, from time to time, invest our cash in a variety of short-term financial instruments.
See the risk factor discussion captioned " Rising interest rates increase the cost of our variable rate debt " under Part 1, Item 1A of this Annual Report on Form 10-K for more discussion on interest rate risks that may affect our financial condition.
See the risk factor discussion captioned " Rising interest rates increase the cost of our variable rate debt " under Part 1, Item 1A of this Annual Report on Form 10-K for more discussion on interest rate risks that may affect our financial condition. 88
If the interest rate for our outstanding indebtedness under the Revolving Credit Facility, the Term Loan A, and the Term Loan B was 100 basis points higher or lower (but not less than 0%) during the years ended December 31, 2022, 2021, and 2020, our interest expense, net of amounts capitalized, would have been increased by $1.4 million, $3.0 million, and $8.0 million, respectively, and would have been decreased by $0.8 million, $0.3 million, and $3.4 million, respectively.
If the interest rate for our outstanding indebtedness under the Bank Credit Facility and the Term Loan B was 100 basis points higher or lower (but not less than 0%) during the years ended December 31, 2023, 2022, and 2021, our interest expense, net of amounts capitalized, would have been increased by $1.1 million, $1.4 million, and $3.0 million, respectively, and would have been decreased by $1.1 million, $0.8 million, and $0.3 million, respectively.
ITEM 7A. QUANTITATIVE AND QUALITAT IVE DISCLOSURES ABOUT MARKET RISK. Our primary market risk exposure is to changes in U.S. interest rates. In an effort to mitigate inflation, the Federal Reserve has increased interest rates throughout 2022, and it is anticipated that interest rates will continue to rise in the near term.
ITEM 7A. QUANTITATIVE AND QUALITAT IVE DISCLOSURES ABOUT MARKET RISK. Our primary market risk exposure is to changes in U.S. interest rates. In an effort to mitigate inflation, the Federal Reserve increased interest rates throughout 2022 and continued to increase interest rates in 2023.
As of December 31, 2022, we had outstanding $153.8 million of senior notes due 2023 with a fixed interest rate of 4.625%, $614.1 million of senior notes due 2026 with a fixed interest rate of 8.25%, and $250.0 million of senior notes due 2027 with a fixed interest rate of 4.75%.
As of December 31, 2023, we had outstanding $593.1 million of senior notes due 2026 with a fixed interest rate of 8.25%, and $243.1 million of senior notes due 2027 with a fixed interest rate of 4.75%. We also had $145.5 million outstanding under the Kansas Notes with a fixed interest rate of 4.43%.
We may, from time to time, invest our cash in a variety of short-term financial instruments. These instruments generally consist of highly liquid investments with original maturities at the date of purchase of three months or less.
These instruments generally consist of highly liquid investments with original maturities at the date of purchase of three months or less.

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