XML 23 R12.htm IDEA: XBRL DOCUMENT
v3.10.0.1

REAL ESTATE TRANSACTIONS | 6 Months Ended
--- | ---
Jun. 30, 2018
REAL ESTATE TRANSACTIONS |
4. | REAL ESTATE TRANSACTIONS
Acquisitions On January 19, 2018, CoreCivic acquired the 261,000 square-foot Capital Commerce Center, located in Tallahassee, Florida for a purchase price of $44.7 million, excluding transaction-related costs and certain closing credits. Capital Commerce Center is 98% leased, including 87% leased to the state of Florida on behalf of the Florida Department of Business and Professional Regulation. In allocating the purchase price of this transaction, CoreCivic recorded $41.5 million of net tangible assets and $3.2 million of identifiable intangible assets. CoreCivic acquired the property as a strategic investment that further diversifies the Company's cash flows through government-leased properties and broadens the solutions it provides to partners. Leasing Transactions On January 24, 2018, CoreCivic entered into a 20-year lease agreement with the Kansas Department of Corrections ("KDOC") for a 2,432-bed correctional facility the Company is constructing in Lansing, Kansas. The new facility will replace the Lansing Correctional Facility, the State's largest correctional complex for adult male inmates, originally constructed in 1863. CoreCivic will be responsible for facility maintenance throughout the 20-year term of the lease, at which time ownership will revert to the State. Construction of the new facility commenced in the first quarter of 2018 with a timeline for completion of approximately 24 months. CoreCivic expects to account for the lease with the KDOC as a multiple element lease with a portion of the lease payments attributable to the capital lease. In addition, portions of the lease payments will be attributable to maintenance services and capital maintenance, representing two separately valued non-lease components. As of June 30, 2018, CoreCivic has capitalized $12.3 million associated with the construction of the project. Idle Facilities As of June 30, 2018, CoreCivic had eight idled correctional facilities that are currently available and being actively marketed as solutions to meet the needs of potential customers. The following table summarizes each of the idled facilities and their respective carrying values, excluding equipment and other assets that could generally be transferred and used at other facilities CoreCivic owns without significant cost (dollars in thousands):
|  |  |  |  |  |  |  | Net Carrying Values |
|  | Design |  |  | Date |  | June 30, |  |  | December 31, |
Facility |  | Capacity |  |  | Idled |  | 2018 |  |  | 2017 |
Prairie Correctional Facility |  |  | 1,600 |  |  | 2010 |  | $ | 15,594 |  |  | $ | 16,118 |
Huerfano County Correctional Center |  |  | 752 |  |  | 2010 |  |  | 16,964 |  |  |  | 16,980 |
Diamondback Correctional Facility |  |  | 2,160 |  |  | 2010 |  |  | 41,068 |  |  |  | 41,370 |
Southeast Kentucky Correctional Facility |  |  | 656 |  |  | 2012 |  |  | 21,446 |  |  |  | 21,864 |
Marion Adjustment Center |  |  | 826 |  |  | 2013 |  |  | 11,985 |  |  |  | 12,058 |
Kit Carson Correctional Center |  |  | 1,488 |  |  | 2016 |  |  | 56,400 |  |  |  | 57,095 |
Eden Detention Center |  |  | 1,422 |  |  | 2017 |  |  | 39,138 |  |  |  | 39,707 |
Torrance County Detention Facility |  |  | 910 |  |  | 2017 |  |  | 36,105 |  |  |  | 36,882 |
|  |  | 9,814 |  |  |  |  | $ | 238,700 |  |  | $ | 242,074 |
As of June 30, 2018, CoreCivic also had two idled non-core facilities containing 440 beds with an aggregate net book value of $3.9 million. CoreCivic incurred approximately $3.2 million and $2.3 million in operating expenses at the idled facilities for the three months ended June 30, 2018 and 2017, respectively. CoreCivic incurred approximately $6.7 million and $5.0 million in operating expenses at the idled facilities for the six months ended June 30, 2018 and 2017, respectively. CoreCivic considers the cancellation of a contract as an indicator of impairment and tested each of the idled facilities for impairment when it was notified by the respective customers that they would no longer be utilizing such facility. CoreCivic updates the impairment analyses on an annual basis for each of the idled facilities and evaluates on a quarterly basis market developments for the potential utilization of each of these facilities in order to identify events that may cause CoreCivic to reconsider its most recent assumptions. As a result of CoreCivic's analyses, CoreCivic determined each of the idled facilities to have recoverable values in excess of the corresponding carrying values.

X
- Definition The entire disclosure for certain real estate investment financial statements, real estate investment trust operating support agreements, real estate owned, retail land sales, time share transactions, as well as other real estate related disclosures. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 970 -URI http://asc.fasb.org/topic&trid=2156125 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 978 -URI http://asc.fasb.org/topic&trid=2134977 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 976 -URI http://asc.fasb.org/topic&trid=2134846 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 974 -URI http://asc.fasb.org/topic&trid=2156429 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 972 -URI http://asc.fasb.org/topic&trid=2134617 + Details
Name: | us-gaap_RealEstateDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration