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Business Segments and Geographic Information
 9 Months Ended
Sep. 30, 2014
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 Community Services segment; the International Services segment; and the Facility Construction & Design segment. The Company's segment revenues from external customers and a measure of segment profit are as follows (in thousands):
 
 
Three Months Ended
 
Nine Months Ended
 
September 30, 2014
 
September 30, 2013
 
September 30, 2014
 
September 30, 2013
Revenues:
 
 
 
 
 
 
 
U.S. Corrections & Detention
$
281,550

 
$
253,414

 
$
824,448

 
$
756,229

GEO Community Services
86,610

 
76,879

 
245,723

 
225,892

International Services
50,874

 
49,549

 
154,843

 
156,405

Facility Construction & Design (2)
38,866

 
—

 
38,866

 
—

Total revenues
$
457,900

 
$
379,842

 
$
1,263,880

 
$
1,138,526

Operating income:
 
 
 
 
 
 
 
U.S. Corrections & Detention
$
67,450

 
$
50,826

 
$
190,983

 
$
161,550

GEO Community Services
23,504

 
17,128

 
61,164

 
53,387

International Services (1)
62

 
4,097

 
4,978

 
9,163

Facility Construction & Design (2)
589

 
—

 
589

 
—

Operating income from segments
$
91,605

 
$
72,051

 
$
257,714

 
$
224,100


(1) Operating income in the International Services segment decreased primarily due to bid costs incurred during the three months ended September 30, 2014 at GEO's subsidiary in the United Kingdom. Additionally, operating income during the three months ended September 30, 2014 includes a non-cash mark-to-market negative adjustment on a derivative instrument held by GEO's Australian subsidiary.
(2) The Company began the design and construction of a new prison contract located in Ravenhall, a locality near Melbourne, Australia. Refer to Note 11 - Ravenhall Prison Project.
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):
 
 
Three Months Ended
 
Nine Months Ended
 
September 30, 2014
 
September 30, 2013
 
September 30, 2014
 
September 30, 2013
Total operating income from segments
$
91,605

 
$
72,051

 
$
257,714

 
$
224,100

Unallocated amounts:
 
 
 
 
 
 
 
General and Administrative Expenses
(28,287
)
 
(27,222
)
 
(84,937
)
 
(86,625
)
Net Interest Expense
(20,360
)
 
(20,485
)
 
(60,058
)
 
(58,580
)
Loss on Extinguishment of Debt
—

 
(1,451
)
 
—

 
(6,978
)
Income before income taxes and equity in earnings of affiliates
$
42,958

 
$
22,893

 
$
112,719

 
$
71,917


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. 
The Company has recorded $1.3 million and $3.6 million in earnings, net of tax, for SACS operations during the three and nine months ended September 30, 2014, respectively, and $1.3 million and $3.8 million during the three and nine months ended September 30, 2013, respectively, which are included in equity in earnings of affiliates, net of income tax provision in the accompanying consolidated statements of operations. As of September 30, 2014 and December 31, 2013, the Company’s investment in SACS was $9.2 million and $8.1 million, respectively.

The Company has recorded $0.3 million and $0.6 million in earnings, net of tax, for GEOAmey’s operations during the three and nine months ended September 30, 2014, respectively and $0.2 million and $0.1 million in losses during the three and nine months ended September 30, 2013, respectively, which are included in equity in earnings of affiliates, net of income tax provision, in the accompanying consolidated statements of operations. As of September 30, 2014 and December 31, 2013, the Company’s investment in GEOAmey was $(2.4) million and $(3.0) 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 9 - Debt.