XML 61 R19.htm IDEA: XBRL DOCUMENT v2.4.0.6
Business Segments and Geographic Information
 9 Months Ended
Sep. 30, 2012
Segment Reporting [Abstract]  
Business Segments and Geographic Information
BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION
Operating and Reporting Segments
The Company conducts its business through four reportable business segments: the U.S. Corrections & Detention segment; the GEO Care segment; the International Services segment; and the Facility Construction & Design segment. The U.S. Corrections and Detention segment has been retroactively reclassified for the results of discontinued operations. Refer to Note 8-Discontinued Operations. The Company's segment revenues from external customers and a measure of segment profit are as follows (in thousands):
 
 
Thirteen Weeks Ended
 
Thirty-nine Weeks Ended
 
September 30, 2012
 
October 2, 2011
 
September 30, 2012
 
October 2, 2011
Revenues:
 
 
 
 
 
 
 
U.S. Corrections & Detention
$
244,102

 
$
232,788

 
$
725,196

 
$
693,657

GEO Care
110,186

 
109,729

 
330,199

 
317,475

International Services
57,236

 
53,166

 
169,734

 
161,580

Facility Construction & Design
—

 
—

 
—

 
119

Total revenues
$
411,524

 
$
395,683

 
$
1,225,129

 
$
1,172,831

Operating income (loss):
 
 
 
 
 
 
 
U.S. Corrections & Detention
$
58,795

 
$
53,187

 
$
165,755

 
$
160,786

GEO Care
19,945

 
18,326

 
59,772

 
53,616

International Services
3,191

 
4,663

 
9,832

 
10,939

Facility Construction & Design
—

 
(43
)
 
—

 
37

Operating income from segments
$
81,931

 
$
76,133

 
$
235,359

 
$
225,378


Pre-Tax Income Reconciliation of Segments
The following is a reconciliation of the Company’s total operating income from its reportable segments to the Company’s income before income taxes and equity in earnings of affiliates (in thousands):
 
 
Thirteen Weeks Ended
 
Thirty-nine Weeks Ended
 
September 30, 2012
 
October 2, 2011
 
September 30, 2012
 
October 2, 2011
Total operating income from segments
$
81,931

 
$
76,133

 
$
235,359

 
$
225,378

Unallocated amounts:
 
 
 
 
 
 
 
General and Administrative Expenses
(27,228
)
 
(25,922
)
 
(81,712
)
 
(86,420
)
Net Interest Expense
(18,955
)
 
(17,560
)
 
(56,811
)
 
(50,735
)
Loss on Early Extinguishment of Debt
(8,462
)
 
—

 
(8,462
)
 
—

Income before income taxes and equity in earnings of affiliates
$
27,286

 
$
32,651

 
$
88,374

 
$
88,223


Equity in Earnings of Affiliates
Equity in earnings of affiliates includes the Company’s 50% owned joint ventures in SACS, located in South Africa, and GEOAmey, located in the United Kingdom. Our investments in these entities are accounted for under the equity method of accounting. The Company’s investments in these entities are presented as a component of Other Non-Current Assets in the accompanying consolidated balance sheets.
As of September 30, 2012 and January 1, 2012 and for the thirteen and thirty-nine weeks ended September 30, 2012 and October 2, 2011, SACS was considered to be a significant subsidiary and as such, summarized financial data is included below as follows (in thousands):
 
 
Thirteen Weeks Ended
 
Thirty-nine Weeks Ended
 
September 30, 2012
 
October 2, 2011
 
September 30, 2012
 
October 2, 2011
Statement of Operations Data
 
 
 
 
 
 
 
Revenues
$
11,775

 
$
12,580

 
$
35,271

 
$
37,581

Operating income
4,764

 
4,994

 
14,238

 
15,123

Net income
2,708

 
2,688

 
7,940

 
6,848

 
 
 
 
 
 
 
 
 
September 30, 2012
 
January 1, 2012
Balance Sheet Data
 
 
 
Current assets
$23,113
 
$21,068
Non-current assets
35,821
 
39,110
Current liabilities
4,252
 
3,645
Non-current liabilities
36,084
 
45,237
Shareholders’ equity
18,598
 
11,296

The Company has recorded $1.4 million and $4.0 million in earnings, net of tax impact, for SACS operations during the thirteen and thirty-nine weeks ended September 30, 2012, respectively, and $1.3 million and $3.4 million in earnings, net of tax impact, for SACS operations during the thirteen and thirty-nine weeks ended October 2, 2011, respectively, which are included in equity in earnings of affiliates, net of income tax provision in the accompanying consolidated statements of comprehensive income. As of September 30, 2012 and January 1, 2012, the Company’s investment in SACS was $9.3 million and $5.6 million, respectively.

The Company has recorded $0.9 million and $2.3 million in losses, net of tax impact, for GEOAmey’s operations during the thirteen and thirty-nine weeks ended September 30, 2012, respectively, and $1.1 million and $1.1 million in losses, net of tax impact, during the thirteen and thirty-nine weeks ended October 2, 2011, respectively, which are included in equity in earnings of affiliates, net of income tax provision, in the accompanying consolidated statements of comprehensive income. As of September 30, 2012 and January 1, 2012, the Company’s investment in GEOAmey was $(4.7) million and $(2.4) million, respectively, and represents its share of cumulative reported losses. Losses in excess of the Company's investment have been recognized as the Company has provided certain loans and guarantees to provide financial support to GEOAmey (Refer to Note 11-Debt.)