Assets Held For Sale and Dispositions

During the third quarter of 2025, the Company and Boulder County, Colorado entered into a short-term extension through January 2026 of the contract at the Company's Longmont Community Treatment Center in Longmont, Colorado, a reentry facility in the Company's Residential segment. Upon expiration of the contract, Boulder County transferred the residential population to a new sentencing facility it constructed. The Company has engaged a broker and is committed to a process to sell the Longmont facility resulting in the need to test the facility for impairment. As a result, an impairment charge of $1.5 million was recognized during the third quarter of 2025 to reduce the net book value of the facility to its estimated fair value, less cost to sell based on a comparable market analysis. The Longmont Facility was classified as held for sale as of June 30, 2026 and December 31, 2025.

During the full year 2025, CoreCivic completed the sales of a reentry facility and an idled non-core facility in Live Oak, California, both of which were reported in its CoreCivic Residential segment. The sales of these two assets generated aggregate net sales proceeds of $4.9 million, resulting in an aggregate gain on sale of $1.0 million after transaction costs.

As further described in Note 11, on July 2, 2026, the Company completed the sales of its California City Detention Facility in California City, California (the "California City Facility") and its Otay Mesa Detention Center in San Diego, California (the "Otay Mesa Facility"), both of which are reported in its CoreCivic Residential segment, to the United States of America and its assigns, by and through the Department of Homeland Security ("DHS") for an aggregate gross sales price of $1.5 billion, comprised of $732.6 million for the California City Facility and $739.2 million for the Otay Mesa Facility.

In addition, as further described in Note 11, on August 4, 2026, the Company completed the sales of its Prairie Correctional Facility in Appleton, Minnesota (the "Prairie Facility") and its Midwest Regional Reception Center in Leavenworth, Kansas (the "Midwest Facility"), both of which are reported in its CoreCivic Residential segment, to the United States of America and its assigns, by and through the DHS for an aggregate gross sales price of $734.0 million, comprised of $495.6 million for the Prairie Facility and $238.4 million for the Midwest Facility.

Idle Facilities

As of June 30, 2026, CoreCivic had five idle correctional facilities that are operated with a core staffing complement to remain currently available and are being actively marketed as solutions to meet the correctional or detention needs of potential customers. The following table summarizes each of the idled facilities and their respective design capacities and net carrying values, excluding equipment and other assets that could generally be transferred and used at other CoreCivic facilities without significant cost (dollars in thousands):

CoreCivic incurred aggregate operating expenses at these idled facilities, as well as the idled Longmont facility (which is held for sale), of approximately $2.4 million and $2.1 million during the period they were idle during the three months ended June 30, 2026 and 2025, respectively, and $4.8 million and $4.4 million during the period they were idle during the six months ended June 30, 2026 and 2025, respectively.

CoreCivic evaluates, on a quarterly basis, market developments for the potential utilization of each of its idle facilities in order to identify events that may cause CoreCivic to reconsider its assumptions with respect to the recoverability of book values as compared to undiscounted cash flows. CoreCivic considers the cancellation of a contract in its CoreCivic Residential segment or an expiration and non-renewal of a lease agreement in its CoreCivic Properties segment as indicators of impairment and tests each of the idled facilities for impairment when it is notified by the respective customers or tenants that they will no longer be utilizing such facility.

As further described in Note 11, on August 3, 2026, the Company was awarded a new contract with U.S. Immigration and Customs Enforcement ("ICE") to utilize the Company's 1,600-bed Prairie Facility located in Appleton, Minnesota, a facility that has been idle since 2010. As discussed above and as further described in Note 11, on August 4, 2026, the Company completed the sale of the Prairie Facility to the United States of America and its assigns, by and through the DHS.