CORECIVIC 401(k) PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2022 AND 2021
NOTE EFEDERAL INCOME TAX STATUS
Effective January 1, 2022, the Plan adopted a non-standardized pre-approved profit-sharing plan sponsored by Great West Trust Company for which an
Internal Revenue Service (IRS) determination letter was issued dated June 30, 2020. The Plan currently is designed and is being operated in compliance with the applicable requirements of the Code and the Plan continues to qualify under Code
Section 401(a), and the related trust continues to be tax-exempt as of December 31, 2022.
U.S. GAAP
requires Plan management to evaluate tax positions taken by the Plan and recognize a tax liability (or asset) if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by the IRS. The Plan
Administrator has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2022, there are no uncertain positions taken or expected to be taken that would require recognition of a liability (or asset) or
disclosure in the financial statements. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress.
NOTE FRELATED PARTY AND PARTY-IN-INTEREST TRANSACTIONS
Great West Trust Company is the trustee and custodian of the plan for all Plan assets including those invested in the CoreCivic common stock fund. Therefore,
transactions with these parties qualify as party-in-interest transactions. The Plan also held notes receivable from participants which also qualify as party-in-interest transactions.
All transactions in the CoreCivic company stock
fund qualify as party-in-interest transactions because the Company is the plan sponsor. For the year 2022, no dividends were paid. The plan held 1,355,838 and 1,417,655
shares valued at $15,673,495 and $14,134,024 December 31, 2022 and 2021, respectively.
NOTE GLIMITATION ON CORECIVIC STOCK ELECTIONS AND
TRANSFERS INTO CORECIVIC STOCK
The Plan Administrative Committee, with the approval of the CoreCivic Board of Directors, limits the percentage
of new contributions that plan participants are permitted to invest in CoreCivic stock to ten percent (10%). Transfers into CoreCivic stock from the Plans other funds are also subject to the same limitation. Therefore, requests to transfer
funds into CoreCivic stock are not permitted if, at the time of the transfer, the transfer would cause the participants CoreCivic stock balance to exceed 10% of the participants total plan balance.
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