XML 32 R21.htm IDEA: XBRL DOCUMENT v3.25.0.1
INCOME TAXES
 12 Months Ended
Dec. 31, 2024
INCOME TAXES
11.
INCOME TAXES

CoreCivic recorded an income tax expense of $23.1 million, $28.2 million, and $43.0 million for the years ended December 31, 2024, 2023 and 2022, respectively. Income tax expense is comprised of the following components (in thousands):

 

 

 

For the Years Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Current income tax expense

 

 

 

 

 

 

 

 

 

Federal

 

$

26,621

 

 

$

25,037

 

 

$

25,681

 

State

 

 

4,182

 

 

 

5,899

 

 

 

5,840

 

 

 

 

30,803

 

 

 

30,936

 

 

 

31,521

 

Deferred income tax expense (benefit)

 

 

 

 

 

 

 

 

 

Federal

 

 

(7,100

)

 

 

(2,156

)

 

 

11,484

 

State

 

 

(608

)

 

 

(547

)

 

 

(23

)

 

 

 

(7,708

)

 

 

(2,703

)

 

 

11,461

 

Income tax expense

 

$

23,095

 

 

$

28,233

 

 

$

42,982

 

 

Significant components of CoreCivic's deferred tax assets and liabilities as of December 31, 2024 and 2023, are as follows (in thousands):

 

 

 

December 31,

 

 

 

2024

 

 

2023

 

Noncurrent deferred tax assets:

 

 

 

 

 

 

   Asset reserves and liabilities not yet deductible for tax

 

$

22,458

 

 

$

14,915

 

   Accrued compensation not yet deductible for tax

 

 

14,252

 

 

 

12,419

 

   Accrued workers compensation liabilities not
      yet deductible for tax

 

 

11,126

 

 

 

11,333

 

   Depreciation

 

 

8,296

 

 

 

8,669

 

   ROU lease assets

 

 

5,887

 

 

 

25,282

 

   Losses and tax credit carryforwards

 

 

1,367

 

 

 

1,591

 

   Intangible assets

 

 

6,882

 

 

 

7,669

 

   Other

 

 

7,522

 

 

 

9,010

 

 Total noncurrent deferred tax assets

 

 

77,790

 

 

 

90,888

 

 Less valuation allowance

 

 

(1,066

)

 

 

(848

)

 Total noncurrent deferred tax assets

 

 

76,724

 

 

 

90,040

 

Noncurrent deferred tax liabilities:

 

 

 

 

 

 

   Depreciation

 

 

(150,481

)

 

 

(151,918

)

   Lease liabilities

 

 

(5,290

)

 

 

(24,721

)

   Intangible liabilities

 

 

(7,411

)

 

 

(7,860

)

   Other

 

 

(2,749

)

 

 

(2,456

)

 Total noncurrent deferred tax liabilities

 

 

(165,931

)

 

 

(186,955

)

Net total noncurrent deferred tax liabilities

 

$

(89,207

)

 

$

(96,915

)

 

A reconciliation of the income tax provision at the statutory income tax rate and the effective tax rate as a percentage of income from continuing operations before income taxes for the years ended December 31, 2024, 2023, and 2022 is as follows:

 

 

 

2024

 

 

2023

 

 

2022

 

Statutory federal rate

 

 

21.0

%

 

 

21.0

%

 

 

21.0

%

State taxes, net of federal tax benefit

 

 

2.9

 

 

 

4.5

 

 

 

3.4

 

Permanent differences

 

 

5.9

 

 

 

4.3

 

 

 

1.7

 

Tax benefit of equity-based compensation

 

 

(2.5

)

 

 

(0.3

)

 

 

—

 

Other items, net

 

 

(2.2

)

 

 

—

 

 

 

(0.1

)

 

 

 

25.1

%

 

 

29.5

%

 

 

26.0

%

On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act"). The CARES Act, among other things, incentivized companies to retain employees through an Employee Retention Credit ("ERC"). The ERC compensates employers for wages of employees that were retained and could not perform their job duties at 100% capacity as a result of coronavirus pandemic restrictions. In December 2020, the Consolidated Appropriations Act provided additional funding for the ERC with expanded benefits through June 30, 2021. During the year ended December 31, 2022, the Company recorded an ERC of $7.0 million, which offset operating expenses. The credit was reduced by $1.8 million of federal income tax expense. The ERC is largely uncollected as of December 31, 2024.

The Inflation Reduction Act of 2022 (the "Inflation Reduction Act") was signed into law on August 16, 2022. Among other provisions, the Inflation Reduction Act creates an excise tax of 1% on the fair value of net stock repurchases in excess of share issuances made by publicly traded U.S. corporations, effective for repurchases after December 31, 2022. The impact of this excise tax on the Company’s financial position, and/or liquidity, in future periods, will vary based on the level of net stock repurchases in excess of share issuances made by the Company in a given year. The Company has concluded that the excise tax associated with stock repurchases is properly recognized as a component of equity given that it is a direct cost associated with the repurchase of common stock. The excise tax recognized during the years ended December 31, 2024 and 2023 was estimated to be $0.5 million and $0.3 million, respectively, associated with the repurchase of shares, net of the shares issued during the same period for restricted stock plans as permitted by the issuance offset rule under the Inflation Reduction Act.

CoreCivic had no liabilities for uncertain tax positions as of December 31, 2024 and 2023. CoreCivic recognizes interest and penalties related to unrecognized tax positions in income tax expense. CoreCivic does not currently anticipate that the total amount of unrecognized tax positions will significantly change in the next twelve months.

CoreCivic's U.S. federal income tax returns for tax years 2021 through 2023 remain subject to examination by the Internal Revenue Service ("IRS"). The majority of states in which CoreCivic files income tax returns follow the same statute of limitations as the federal government. Certain states in which CoreCivic files income tax returns have statutes that remain open from 2020.