CoreCivic (CXW) as of March 31, 2026 shows a liquidation value that is deeply negative, consistent with MFFAIS-reported CLV of approximately -$1.48B and LLV/OLV of approximately -$996M. The asymmetry is driven by a heavily encumbered balance sheet where liabilities are held at face value while assets receive standard haircuts. Total assets are $3.37B against total liabilities of $1.97B on a book basis, producing stated equity of $1.40B. Under liquidation lens, the primary asset — net PP&E of $2.12B (gross $4.16B less accumulated depreciation of $2.04B) — is subject to a 50-70% haircut; specialized correctional and detention facilities have limited alternative-use buyers and would trade at a substantial discount to book, likely toward the lower end of the haircut range. Accounts receivable of $479.8M is largely U.S. federal government (ICE/BOP) — high-quality obligor but with noted payment delays due to government shutdowns and DHS invoice approval backlogs — recoverable at 90-95% in liquidation. Cash of $209.7M recovers at par. Restricted cash of $14.6M is encumbered. OtherRealEstate ($180.1M, which appears to include the Lansing finance receivable and related assets) recovers at a meaningful discount under distress given illiquidity. Goodwill ($8.6M) and intangibles carried in OtherAssetsNoncurrent ($313.4M, which includes ROU assets, the Lansing 20-year finance receivable, and other non-cash items) receive a 0% recovery on any true intangible component; ROU assets partially offset by corresponding lease liabilities already in the stack. On the liability side, gross debt face value is $1.41B (DebtInstrumentCarryingAmount), comprising $238.5M of 4.75% Senior Notes due October 2027, $500M of 8.25% Senior Notes due April 2029, $132.8M Kansas non-recourse mortgage notes at 4.43%, $110.2M Initial Term Loan, and $425M Revolving Credit Facility drawn. Subsequent to quarter-end, CXW drew an additional $148M for the Clinical Solutions Pharmacy acquisition (funded via Revolving Credit Facility, later refinanced with a $100M Incremental Term Loan), materially increasing the debt stack in Q2 2026 — this is not reflected in the March 31 balance sheet but is disclosed and increases liquidation liability exposure. The Dilley Facility operating lease ($202M total contractual obligation) is a significant off-balance-sheet liability that survives windup. Current liabilities of $305M include $16.6M current portion of long-term debt and $288.4M of accounts payable/accrued liabilities. The deferred tax liability of $111.3M and other noncurrent liabilities of $167.3M further compress recovery. Net working capital is positive ($743.5M current assets vs. $305.0M current liabilities) but the receivables quality and payables stack are the dominant short-term recovery items. The Q1 2026 operating cash flow decline to $13.8M from $44.5M in Q1 2025 reflects a $78.2M working capital drag despite $33.2M increase in facility NOI — driven by payment delays from federal customers and timing of ERC receipts. The Dilley Facility lease obligation is discussed extensively in MD&A but is not separately XBRL-tagged as a distinct liability line; it appears embedded within OtherLiabilitiesNoncurrent and operating lease commitments. The CSP acquisition ($148M, closing April 1, 2026) adds intangible-heavy assets and contingent consideration that will further pressure liquidation recovery in Q2 2026.
▼ Community Notes