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Financial Instruments | 12 Months Ended
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Dec. 31, 2012
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] |
Financial Instruments | Financial Instruments The following table provides a summary of the Company’s significant financial assets and liabilities carried at fair value and measured on a recurring basis (in thousands):
|  |  |  | Fair Value Measurements at December 31, 2012
|  | Carrying Value at December 31, 2012 |  | Quoted Prices in Active Markets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Assets: |  |  |  |  |  |  |  |
Interest rate swap derivative assets |  | $ | 6,212 |  |  | $ | — |  |  | $ | 6,212 |  |  | $ | — |
Restricted investments: |  |  |  |  |  |  |  |
Guaranteed Investment Contract |  | $ | 5,742 |  |  | $ | — |  |  | $ | 5,742 |  |  | $ | — |
Guaranteed Repurchase Agreements |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Rabbi Trust |  | $ | 7,718 |  |  | $ | 7,718 |  |  | $ | — |  |  | $ | — |
Fixed income securities |  | $ | 2,152 |  |  | $ | — |  |  | $ | 2,152 |  |  | $ | — |
Liabilities: |  |  |  |  |  |  |  |
Interest rate swap derivative liability |  | $ | 708 |  |  | $ | — |  |  | $ | 708 |  |  | $ | — |
|  |  |  | Fair Value Measurements at January 1, 2012
|  | Carrying Value at January 1, 2012 |  | Quoted Prices in Active Markets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Assets: |  |  |  |  |  |  |  |
Interest rate swap derivative assets |  | $ | 7,440 |  |  | $ | — |  |  | $ | 7,440 |  |  | $ | — |
Restricted investments: |  |  |  |  |  |  |  |
Guaranteed Investment Contact |  | $ | 5,742 |  |  | $ | — |  |  | $ | 5,742 |  |  | $ | — |
Guaranteed Repurchase Agreements |  | $ | 33,821 |  |  | $ | — |  |  | $ | 33,821 |  |  | $ | — |
Rabbi Trust |  | $ | 8,016 |  |  | $ | 5,898 |  |  | $ | 2,118 |  |  | $ | — |
Fixed income securities |  | $ | 2,013 |  |  | $ | — |  |  | $ | 2,013 |  |  | $ | — |
The Company’s Level 1 investment relates to its rabbi trust established for GEO employee and employer contributions to The GEO Group Inc. Non-qualified Deferred Compensation Plan. Although at January 1, 2012 a portion of the rabbi trust was considered a Level 2 investment, these contributions were primarily invested in mutual funds for which quoted market prices in active markets are available. The Company’s restricted investment in the rabbi trust is measured at fair value on a recurring basis. In connection with the divestiture of RTS, $1.9 million of the rabbi trust investment was included in the assets and liabilities sold. See Note 2 - Discontinued Operations for additional information. The Company’s Level 2 financial instruments included in the tables above as of December 31, 2012 and January 1, 2012 consist of all or a portion of the Company’s rabbi trust, an interest rate swap asset held by our Australian subsidiary, other interest rate swap assets of the Company, an investment in Canadian dollar denominated fixed income securities, a guaranteed investment contract which is a restricted investment related to CSC of Tacoma LLC and a Guaranteed Repurchase Agreement (“Repo Agreement”) relative to MCF, the Company’s previously consolidated VIE. During the fiscal year ended January 1, 2012, MCF entered into the Repo Agreement to establish an investment for its debt service reserve fund and bond fund payment account. The Repo Agreement consisted of a guaranteed investment in the principal amount of $23.9 million related to the debt service reserve fund and a second guaranteed investment related to the bond fund payment account which was $9.9 million as of January 1, 2012. Both of these investments were restricted to eligible investments as defined in the 8.47% Revenue Bond indenture (refer to Note 15 - Debt) and were to mature on August 1, 2016. On August 31, 2012, the Company closed on the purchase of MCF and in connection with the transaction, redeemed the MCF bonds and the Repo Agreement was terminated. Refer to Note 1 - Variable Interest Entities for additional information. As of January 1, 2012, the Repo Agreement was included above as a Level 2 restricted investment since its fair value was based using market interest rates for similar securities. A portion of the rabbi trust as of January 1, 2012 was invested in interest bearing assets, such as long term bonds, which were valued using market interest rates for similar securities. The Australian subsidiary’s interest rate swap asset is valued using a discounted cash flow model based on projected Australian borrowing rates. The Company’s other interest rate swap assets and liabilities are based on pricing models which consider prevailing interest rates, credit risk and similar instruments. The Canadian dollar denominated securities, not actively traded, are valued using quoted rates for these and similar securities. The restricted investment in the guaranteed investment contract is valued using quoted rates for these and similar instruments.

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- Definition The entire disclosure for financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References No definition available. + Details
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