<SEC-DOCUMENT>0001193125-13-024297.txt : 20130610
<SEC-HEADER>0001193125-13-024297.hdr.sgml : 20130610
<ACCEPTANCE-DATETIME>20130125172426
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001193125-13-024297
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20130125

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			GEO GROUP INC
		CENTRAL INDEX KEY:			0000923796
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-FACILITIES SUPPORT MANAGEMENT SERVICES [8744]
		IRS NUMBER:				650043078
		STATE OF INCORPORATION:			FL
		FISCAL YEAR END:			0101

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		621 NW 53RD STREET
		STREET 2:		SUITE 700
		CITY:			BOCA RATON
		STATE:			FL
		ZIP:			33487
		BUSINESS PHONE:		561-893-0101

	MAIL ADDRESS:	
		STREET 1:		621 NW 53RD STREET
		STREET 2:		SUITE 700
		CITY:			BOCA RATON
		STATE:			FL
		ZIP:			33487

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	WACKENHUT CORRECTIONS CORP
		DATE OF NAME CHANGE:	19940525
</SEC-HEADER>
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<TYPE>CORRESP
<SEQUENCE>1
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">January&nbsp;25, 2013 </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">VIA EDGAR </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Mr.&nbsp;Rufus Decker </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Accounting Branch Chief </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">United States Securities and Exchange Commission </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Division of Corporation Finance </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">100 F Street,
N.E. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Washington, D.C. 20549 </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>RE:</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>The GEO Group, Inc. </B></FONT></TD></TR></TABLE>
<P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Form 10-K for the Year Ended January&nbsp;1, 2012 </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>Filed March&nbsp;1, 2012 </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Form 10-Q for the Period Ended
September&nbsp;30, 2012 </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Filed November&nbsp;8, 2012 </B></FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Form 8-K </B></FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Filed August&nbsp;13, 2012 </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>File No.&nbsp;1-14260 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Dear Mr.&nbsp;Decker: </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">On behalf of The GEO Group, Inc. (the &#147;Company&#148; or &#147;GEO&#148;), we hereby respond to the Staff&#146;s comment letter,
dated January&nbsp;10, 2013, regarding the above referenced Form 10-K for the Year Ended January&nbsp;1, 2012 (the &#147;Form 10-K&#148;), Form 10-Q for the Period Ended September&nbsp;30, 2012 (the &#147;Form 10-Q&#148;) and Form 8-K filed
August&nbsp;13, 2012 (the &#147;Form 8-K&#148;). The Company&#146;s management respectfully requests that the Company be permitted to make any necessary changes in future filings beginning with the Form 10-K for the year ended December&nbsp;31,
2012, as provided in the Staff&#146;s comment 1. and our response to comment 1 below. Please note that, for the Staff&#146;s convenience, we have recited the Staff&#146;s comments in boldface type and provided our response to each comment
immediately thereafter. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Form 10-K for the Year Ended January&nbsp;1, 2012 </U></B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>General </U></B></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>1.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Where a comment below requests additional disclosures or other revisions to be made, please show us in your supplemental response what the revisions will look like.
These revisions should be included in your future filings, including interim filings as appropriate. </B></FONT></TD></TR></TABLE>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Response: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">GEO
acknowledges the Staff&#146;s comment and it will revise its future filings as indicated in the responses below, including interim filings as applicable. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Mr. Rufus Decker, Accounting Branch Chief </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">January 25, 2013 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"> Page
 2
 </FONT></P> <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Management&#146;s Discussion and Analysis </U></B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Introduction, page 52 </U></B></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>2.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>We note your response to comment two from our letter dated November&nbsp;20, 2012. You propose to present the amounts by which revenues and earnings per share would
increase if all of your idle facilities were to be activated at your average per diem rate. Please expand your disclosure to fully address the following: </B></FONT></TD></TR></TABLE>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="8%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>&#149;</B></FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B></B><B>Clarify the average amount of time facilities remain idle; </B></FONT></P></TD></TR></TABLE>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="8%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>&#149;</B></FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B></B><B>Clarify, if true, that there are no firm commitments or agreements in place to activate these facilities; and
</B></FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="8%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>&#149;</B></FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B></B><B>It appears that other significant assumptions separate from your average per diem rate were used to derive these amounts. Please expand your
disclosure to fully explain all significant assumptions you utilize and your basis for such assumptions. </B></FONT></P></TD></TR></TABLE>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Response: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">The
Company intends to add the following disclosure related to idle facilities in the Results of Operations and Outlook sections of the Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations in its periodic filings
(proposed addition is underlined and italicized). </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:13%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><I><U>Idle Facilities</U></I></B> </FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;<I><U>We are currently marketing approximately 7,700 vacant beds at nine of our idle facilities to potential
customers. The annual carrying cost of idle facilities in 2012 is estimated to be $16.6 million, including depreciation expense of $8.1 million. As of January&nbsp;1, 2012, these facilities had a net book value of $297.3 million and had been vacant
for an average of 9 months. We currently do not have any firm commitment or agreement in place to activate these facilities. Historically, some facilities have been idle for multiple years before they received a new contract award. Currently, our
North Lake Correctional Facility located in Baldwin, MI and our Great Plains Correctional Facility located in Hinton, OK have been idle the longest of our idle facility inventory. Both facilities have been idle since October of 2010. These idle
facilities are all included in the U.S. Corrections&nbsp;&amp; Detention segment. The per diem rates that we charge our clients often vary by contract across our portfolio. However, if all of these idle facilities were to be activated using our U.S.
Corrections&nbsp;&amp; Detention average per diem rate in 2011, (calculated as the U.S. Corrections&nbsp;&amp; Detention revenue divided by the number of U.S. Corrections&nbsp;&amp; Detention mandays) and based on the average occupancy rate in our
U.S Corrections&nbsp;&amp; Detention facilities for 2011, we would expect to receive incremental revenue of approximately $150 million and an increase in earnings per share of approximately $0.30 to $0.35 per share based on our average U.S.
Corrections&nbsp;&amp; Detention operating margin.</U></I> </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Mr. Rufus Decker, Accounting Branch Chief </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">January 25, 2013 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"> Page
 3
 </FONT></P> <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Financial Statements </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B><U>Notes to the Financial Statements </U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Note 15. Comments and Contingencies
</U></B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Litigation, Claims and Assessments, page 130 </U></B></FONT></P>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>3.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>We note your response to comment seven from our letter dated November&nbsp;20, 2012. In a similar manner to your response, please disclose the pre-judgment interest
rate and your current belief as to whether you would be required to pay interest. </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Response: </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">The Company intends to add the following disclosure related to the pre-judgment interest rate and our belief as to whether or not the
Company would be required to pay interest in its periodic filings (proposed addition is underlined and italicized). </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:13%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>15.
Commitments and Contingencies </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:13%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Litigation, Claims and Assessments </B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;In June 2004, the Company received notice of a third-party claim for property damage incurred during 2001 and
2002 at several detention facilities formerly operated by its Australian subsidiary. The claim relates to property damage caused by detainees at the detention facilities. The notice was given by the Australian government&#146;s insurance provider
and did not specify the amount of damages being sought. In August 2007, a lawsuit (Commonwealth of Australia v. Australasian Correctional Services PTY, Limited No. SC 656) was filed against the Company in the Supreme Court of the Australian Capital
Territory seeking damages of up to approximately AUD 18&nbsp;million or $18.4 million based on exchange rates as of January&nbsp;1, 2012, plus interest. <I><U>The pre-judgment interest rate in Australia is currently 7.5%&nbsp;per annum.</U></I> The
Company believes that it has several defenses to the allegations underlying the litigation and the amounts sought and intends to vigorously defend its rights with respect to this matter. The Company has established a reserve based on its estimate of
the most probable loss based on the facts and circumstances known to date and the advice of legal counsel in connection with this matter. <I><U>The accrued reserve assumes a financial settlement of this litigation which would not require payment of
pre-judgment interest.</U></I> Although the outcome of this matter cannot be predicted with certainty, based on information known to date and the Company&#146;s preliminary review of the claim and related reserve for loss, the Company believes that,
if settled unfavorably, this matter could have a material adverse effect on its financial condition, results of operations or cash flows. The Company is uninsured for any damages or costs that it may incur as a result of this claim, including the
expenses of defending the claim. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Form 10-Q for the Period Ended September&nbsp;30, 2012 </U></B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Note 8. Discontinued Operations, page 12 </U></B></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>4.</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>We note your response to comment eight from our letter dated November&nbsp;20, 2012. Please help us better understand the analysis you perform
pursuant to ASC 205-20-45-1 to determine whether the </B></FONT></P></TD></TR></TABLE>

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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Mr. Rufus Decker, Accounting Branch Chief </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">January 25, 2013 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"> Page
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termination of a management contract should be reflected as discounted operations. Your response should address the following: </B></FONT></TD></TR></TABLE>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="8%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>&#149;</B></FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B></B><B>Please clarify how you determine what the component of an entity is pursuant to ASC 205-20-20 in your analysis;
</B></FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="8%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>&#149;</B></FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B></B><B>Your response refers to your evaluation of the overall relationship with the customer. Please provide a better explanation of what this
evaluation consists of, including what kinds of continuing relationships you have with customers and how you evaluate these relationships. Please further clarify in what types of situations your evaluation would result in the termination of a
management contract being reflected as discontinued operations versus those types of situations which would not. Please also clarify whether you consider your relationship with the customer solely in regards to the facility for which the management
contract was terminated or whether you consider your relationship with the customer related to other facilities as well; and </B></FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="8%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>&#149;</B></FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B></B><B>Please provide us with an example of a situation in which you treated the termination of a management contract as a discounted operation as
well as an example in which you did not treat the termination as a discounted operation. </B></FONT></P></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Response:
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Pursuant to ASC 205-20-20, a component of an entity comprises operations and cash flows that can be clearly distinguished,
operationally and for financial reporting purposes, from the rest of the entity. The Company views our relationship with a customer as the component of an entity which may encompass more than one facility contract. Our customer relationship with the
client is represented by an ability to continue generating significant cash flows from our contract(s) with the customer and our continuing involvement in the operations of the customer after an event has occurred that must be reviewed to see if it
qualifies for discontinued operations reporting. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">The Company previously stated in our response to comment eight from the SEC
Comment letter dated November&nbsp;20, 2012 that we would add a Discontinued Operations Critical Accounting Policy. We have revised the second paragraph of the proposed disclosure provided in our prior response letter, dated December&nbsp;21, 2012.
The proposed Discontinued Operations Critical Accounting Policy is as follows (proposed addition is underlined and italicized): </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:13%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B><I><U>Discontinued Operations</U></I></B> </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>&nbsp;&nbsp;<U>We
report the results of operations of a component of an entity that either has been disposed of or is classified as held for sale or where the management contracts with that component have terminated either by expiration or otherwise in discontinued
operations. We present such events as discontinued operations so long as the financial results can be clearly identified, the operations and cash flows are completely eliminated from ongoing operations, and so long as we do not have any significant
continuing involvement in the operations of the component after the disposal or termination transaction.</U> </I></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>&nbsp;&nbsp;<U>When a component of an entity has been disposed of or classified as held for sale or a management
contract is terminated, we look at our overall relationship with the customer. If the operations or cash flows of the component have been (or will be) eliminated from the ongoing operations of the entity as a result of the transaction and the entity
will not have significant continuing involvement in the operations of the component after the transaction, the results of operations of the component of an entity are reported in discontinued operations. If we will continue to maintain a
relationship generating significant cash flows and having continuing involvement with the customer, the disposal, the asset held for sale classification or the loss of the management contract(s) is not</U>
</I></FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Mr. Rufus Decker, Accounting Branch Chief </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">January 25, 2013 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"> Page
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<U>treated as discontinued operations. If the disposal, the asset held for sale classification or the loss of the management contract(s) results in a loss in the overall customer relationship as
no future significant cash flows will be generated and we will have no continuing involvement with the customer, the results are classified in discontinued operations.</U> </I></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">If there has been a disposal event, an event treated as an asset held for sale or a management contract termination, and the Company still has the ability to generate significant cash flows with the
client due to the fact that we have at least one management contract remaining with the customer and the Company desires and expects to continuing doing business with the client, and as such, still has continuing involvement in the operations of the
component, we would not treat this event as discontinued operations. If we do not have at least one contract remaining with the customer and, therefore, are no longer able to generate significant cash flows with the customer and do not expect or
desire to continue the business relationship and, as such, will have no continuing involvement in the operations of the component, this event would be reported as discontinued operations. The Company will provide the following examples to help
explain our determination of the component of an entity. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">The Company&#146;s lost contracts with the California Department of
Corrections and Rehabilitation (&#147;CDCR&#148;) is an example of an event that did not trigger discontinued operations treatment. See the excerpt below from our Form 10-K on page 131: </FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">On July&nbsp;11, 2011, the Company announced that the State of California decided to implement its Criminal Justice
Realignment Plan, which is expected to delegate tens of thousands of low level state offenders to local county jurisdictions in California effective October&nbsp;1, 2011. As a result of the implementation of the Realignment Plan, the State of
California has decided to discontinue contracts with Community Correctional Facilities which currently house low level state offenders across the state. The Company received written notice from the California Department of Corrections and
Rehabilitation regarding the cancellation of its agreements for the housing of low level state offenders at three of its facilities: (i)&nbsp;the company-leased 305-bed Leo Chesney Community Correctional Facility which was terminated effective
September&nbsp;30, 2011; (ii)&nbsp;the company-owned 625-bed Central Valley Modified Community Correctional Facility which was terminated effective October&nbsp;12, 2011; and (iii)&nbsp;the company-owned 643-bed Desert View Modified Community
Correctional Facility which terminated effective November&nbsp;30, 2011. . . Included in revenue for the fiscal year ended January&nbsp;1, 2012 is $26.4 million of revenue related to these terminated contracts. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">The Company announced that the State of California had decided to discontinue management contracts at three of our facilities which are
part of our U.S. Corrections &amp; Detention reporting segment. The Company analyzes the facts pursuant to ASC 201-20-45-1 to determine whether or not the termination of a management contract would be reported as discontinued operations. Our
analysis consists of a four step process. We first examine whether or not continuing direct cash flows are expected to be generated by the ongoing entity. In this case, we continue to have a significant management contract with the State of
California in our U.S Corrections &amp; Detention segment as well as other contracts in other segments. We then examine whether or not cash flows result from a migration or continuation of activities. The Company continues to provide a similar
service in an active market to the State of California under remaining contracts after the termination of three of our contracts which is partially due to migration as well as a continuation of activities as the geographic region of services with
this customer encompasses the State of California. The Company then reviews the continuing direct cash flows to see if they are significant. In the case of California, the Company feels the cash flows are significant due to the remaining cash
inflows related to our remaining management contracts with the State. The final step in the process is to determine if the Company will have significant continuing involvement in the operations of the component. Due to the contractual terms of our
remaining management contracts with the State of California, we still </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Mr. Rufus Decker, Accounting Branch Chief </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">January 25, 2013 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"> Page
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have the ability to influence the operating or financial policies of the remaining management contracts with the State of California. It should also be noted that the Company continues to own
assets (facilities) that were used to generate cash flows related to these contracts prior to their termination. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">The
Company&#146;s discontinuation of all of its management contracts with the Mississippi Department of Corrections (&#147;MDOC&#148;) is an example of an event that did trigger discontinued operations treatment. See the excerpt below from our Form
10-Q on page 12: </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:13%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Note 8 Discontinued Operations</B> </FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>&nbsp;&nbsp;U.S.&nbsp;Corrections&nbsp;&amp; Detention</B>:&nbsp;On April&nbsp;19, 2012, the Company announced its
discontinuation of its managed-only contract with the State of Mississippi, Department of Corrections for the 1,500-bed East Mississippi Correctional Facility (&#147;East Mississippi&#148;) effective July&nbsp;19, 2012. In connection with the
discontinuation of East Mississippi, the Company has also discontinued its managed-only contracts with the State of Mississippi, Department of Corrections for the 1,000-bed Marshall County Correctional Facility effective August&nbsp;13, 2012, and
the 1,450-bed Walnut Grove Youth Correctional Facility effective July&nbsp;1, 2012. Revenues related to the discontinued operations through their respective disposition dates, were $2.4 million and $11.2 million, for the thirteen weeks ended
September&nbsp;30, 2012 and October&nbsp;2, 2011, respectively and $24.7 million and $33.6 million for the thirty-nine weeks ended September&nbsp;30, 2012 and October&nbsp;2, 2011, respectively. Loss from discontinued operations includes a charge of
$1.1 million of insurance liability claims for the thirteen weeks and thirty-nine weeks ended September&nbsp;30, 2012 which is directly related to these discontinued operations. All income (loss) from discontinued operations included in the
consolidated statements of comprehensive income is attributable to The Geo Group, Inc. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">The Company announced the
discontinuation of all of its management contracts with MDOC. Our analysis consists of the same four step process. We first examine whether or not continuing direct cash flows are expected to be generated by the ongoing entity. In this case, we do
not have any remaining management contracts with the State of Mississippi in our U.S Corrections&nbsp;&amp; Detention segment or other significant contracts in other segments. We then examine whether or not cash flows result from a migration or
continuation of activities. The Company does not provide a similar service in an active market as we have no remaining contracts with the State of Mississippi at this time. The Company then reviews the continuing direct cash flows to see if they are
significant. This step is not applicable as there are no continuing cash flows with the State of Mississippi. The final step in the process is to determine if the Company will have significant continuing involvement in the operations of the
component. Due to the fact that we have no remaining obligations or remaining contracts with the State of Mississippi, we do not have the ability to influence the operating or financial policies of the State of Mississippi. It should also be noted
that the Company has no remaining assets related to these contracts and either moved, disposed of or wrote off any assets related to these contracts. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Mr. Rufus Decker, Accounting Branch Chief </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">January 25, 2013 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"> Page
 7
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">We believe the responses provided above fully address the Staff&#146;s comments. If you
have any questions, please call the undersigned at 305-755-5812. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><DIV ALIGN="right">
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<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Sincerely,</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD></TR>
<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">AKERMAN SENTERFITT</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT STYLE="font-family:Times New Roman" SIZE="2">/s/ Jose Gordo</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Jose Gordo</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">For the Firm</FONT></TD></TR>
</TABLE></DIV> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">cc:</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Securities and Exchange Commission </FONT></TD></TR></TABLE> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Jeanne Baker, Assistant Chief Accountant </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Nudrat Salik, Staff
Accountant </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">The GEO Group, Inc. </FONT></TD></TR></TABLE> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">John J. Bulfin, Esq., Senior Vice President and General Counsel </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Brian R. Evans, Senior Vice President and Chief Financial Officer </FONT></P>
<P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Akerman Senterfitt </FONT></TD></TR></TABLE> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Stephen K. Roddenberry, Esq. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Esther L. Moreno, Esq. </FONT></P>
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