Condensed Consolidating Financial Information (Tables)

9 Months Ended

Sep. 30, 2014

Condensed Consolidating Financial Information Disclosure [Abstract]

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(dollars in thousands)

(unaudited)



	For the Three Months Ended September 30, 2014
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	141,631		$	337,769		$	92,300		$	(113,800	)	$	457,900
Operating expenses	115,580			257,645			82,791			(113,800		)	342,216
Depreciation and amortization	6,395			16,554			1,130			—			24,079
General and administrative expenses	8,352			14,295			5,640			—			28,287
Operating income	11,304			49,275			2,739			—			63,318
Interest income	5,593			966			953			(6,464		)	1,048
Interest expense	(11,716		)	(14,258		)	(1,898		)	6,464			(21,408		)
Income before income taxes and equity in earnings of affiliates	5,181			35,983			1,794			—			42,958
Income tax provision	—			4,528			1,009			—			5,537
Equity in earnings of affiliates, net of income tax provision	—			—			1,544			—			1,544
Income before equity in income of consolidated subsidiaries	5,181			31,455			2,329			—			38,965
Income from consolidated subsidiaries, net of income tax provision	33,784			—			—			(33,784		)	—
Net income	38,965			31,455			2,329			(33,784		)	38,965
Net loss attributable to noncontrolling interests	—			—			26			—			26
Net income attributable to The GEO Group, Inc.	$	38,965		$	31,455		$	2,355		$	(33,784	)	$	38,991

Net income	$	38,965		$	31,455		$	2,329		$	(33,784	)	$	38,965
Other comprehensive income (loss), net of tax	—			19			(8,002		)	—			(7,983		)
Total comprehensive income (loss)	$	38,965		$	31,474		$	(5,673	)	$	(33,784	)	$	30,982
Comprehensive loss attributable to noncontrolling interests	—			—			49			—			49
Comprehensive income (loss) attributable to The GEO Group, Inc.	$	38,965		$	31,474		$	(5,624	)	$	(33,784	)	$	31,031

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(dollars in thousands)

(unaudited)



	For the Three Months Ended September 30, 2013
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	131,159		$	301,244		$	52,584		$	(105,145	)	$	379,842
Operating expenses	115,671			233,143			40,234			(105,145		)	283,903
Depreciation and amortization	6,266			16,411			1,211			—			23,888
General and administrative expenses	9,235			14,314			3,673			—			27,222
Operating income	(13		)	37,376			7,466			—			44,829
Interest income	11,358			382			980			(11,636		)	1,084
Interest expense	(10,650		)	(20,328		)	(2,227		)	11,636			(21,569		)
Loss on early extinguishment of debt	—			(1,451		)	—			—			(1,451		)
Income (loss) before income taxes and equity in earnings of affiliates	695			15,979			6,219			—			22,893
Income tax (benefit) provision	(5,673		)	(3,300		)	1,218			—			(7,755		)
Equity in earnings of affiliates, net of income tax provision	—			—			1,526			—			1,526
Income before equity in income of consolidated subsidiaries	6,368			19,279			6,527			—			32,174
Income from consolidated subsidiaries, net of income tax provision (benefit)	25,806			—			—			(25,806		)	—
Income from continuing operations	32,174			19,279			6,527			(25,806		)	32,174
Net income from discontinued operations	(2,265		)	—			—			—			(2,265		)
Net income	29,909			19,279			6,527			(25,806		)	29,909
Net income attributable to noncontrolling interests	—			—			(12		)	—			(12		)
Net income attributable to The GEO Group, Inc.	$	29,909		$	19,279		$	6,515		$	(25,806	)	$	29,897

Net income	$	29,909		$	19,279		$	6,527		$	(25,806	)	$	29,909
Other comprehensive income, net of tax	—			40			608			—			648
Total comprehensive income	$	29,909		$	19,319		$	7,135		$	(25,806	)	$	30,557
Comprehensive income attributable to noncontrolling interests	—			—			(4		)	—			(4		)
Comprehensive income attributable to The GEO Group, Inc.	$	29,909		$	19,319		$	7,131		$	(25,806	)	$	30,553

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(dollars in thousands)

(unaudited)



	For the Nine Months Ended September 30, 2014
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations				Consolidated
Revenues	$	415,468		$	980,181		$	201,391		$	(333,160	)		$	1,263,880
Operating expenses	333,992			760,159			173,206			(333,160		)		934,197
Depreciation and amortization	19,242			49,357			3,370			—				71,969
General and administrative expenses	26,773			45,186			12,978			—				84,937
Operating income	35,461			125,479			11,837			—				172,777
Interest income	16,208			2,017			2,382			(18,003		)		2,604
Interest expense	(33,913		)	(41,379		)	(5,373		)	18,003				(62,662		)
Income before income taxes and equity in earnings of affiliates	17,756			86,117			8,846			—				112,719
Income tax provision	—			8,493			2,569			—				11,062
Equity in earnings of affiliates, net of income tax provision	—			—			4,202			—			2,246	4,202
Income before equity in income of consolidated subsidiaries	17,756			77,624			10,479			—				105,859
Income from consolidated subsidiaries, net of income tax provision	88,103			—			—			(88,103		)		—
Net income	105,859			77,624			10,479			(88,103		)		105,859
Net loss attributable to noncontrolling interests	—			—			20			—				20
Net income attributable to The GEO Group, Inc.	$	105,859		$	77,624		$	10,499		$	(88,103	)		$	105,879

Net income	$	105,859		$	77,624		$	10,479		$	(88,103	)		$	105,859
Other comprehensive income (loss), net of tax	—			58			(6,359		)	—				(6,301		)
Total comprehensive income (loss)	$	105,859		$	77,682		$	4,120		$	(88,103	)		$	99,558
Comprehensive loss attributable to noncontrolling interests	—			—			51			—				51
Comprehensive income (loss) attributable to The GEO Group, Inc.	$	105,859		$	77,682		$	4,171		$	(88,103	)		$	99,609

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(dollars in thousands)

(unaudited)



	For the Nine Months Ended September 30, 2013
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	363,508		$	927,893		$	165,553		$	(318,428	)	$	1,138,526
Operating expenses	317,189			712,814			132,371			(318,428		)	843,946
Depreciation and amortization	17,963			48,849			3,668			—			70,480
General and administrative expenses	26,589			47,926			12,110			—			86,625
Operating income	1,767			118,304			17,404			—			137,475
Interest income	19,347			1,291			3,199			(20,404		)	3,433
Interest expense	(30,942		)	(44,467		)	(7,008		)	20,404			(62,013		)
Loss on early extinguishment of debt	(2,600		)	(4,378		)	—			—			(6,978		)
Income (loss) before income taxes and equity in earnings of affiliates	(12,428		)	70,750			13,595			—			71,917
Income tax (benefit) provision	(14,679		)	(2,668		)	3,205			—			(14,142		)
Equity in earnings of affiliates, net of income tax provision	—			—			3,772			—			3,772
Income before equity in income of consolidated subsidiaries	2,251			73,418			14,162			—			89,831
Income from consolidated subsidiaries, net of income tax provision (benefit)	87,580			—			—			(87,580		)	—
Income from continuing operations	89,831			73,418			14,162			(87,580		)	89,831
Net income from discontinued operations	(2,265		)	—			—			—			(2,265		)

Net income	87,566			73,418			14,162			(87,580		)	87,566
Net income attributable to noncontrolling interests	—			—			(42		)	—			(42		)
Net income attributable to The GEO Group, Inc.	$	87,566		$	73,418		$	14,120		$	(87,580	)	$	87,524

Net income	$	87,566		$	73,418		$	14,162		$	(87,580	)	$	87,566
Other comprehensive income, net of tax	—			121			(5,912		)	—			(5,791		)
Total comprehensive income	87,566			73,539			8,250			(87,580		)	81,775
Comprehensive income attributable to noncontrolling interests	—			—			38			—			38
Comprehensive income attributable to The GEO Group, Inc.	$	87,566		$	73,539		$	8,288		$	(87,580	)	$	81,813

CONDENSED CONSOLIDATING BALANCE SHEET



	As of September 30, 2014
	The GEO Group, Inc.			Combined Subsidiary Guarantors		Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated

ASSETS
Cash and cash equivalents	$	19,095		$	4,744	$	28,841		$	—		$	52,680
Restricted cash and investments	—			—		14,448			—			14,448
Accounts receivable, less allowance for doubtful accounts	94,598			148,909		23,261			—			266,768
Current deferred income tax assets	—			19,236		1,700			—			20,936
Prepaid expenses and other current assets	9,396			13,496		16,705			(1,154		)	38,443
Total current assets	123,089			186,385		84,955			(1,154		)	393,275
Restricted Cash and Investments	212			13,231		7,917			—			21,360
Property and Equipment, Net	715,243			957,561		84,258			—			1,757,062
Contract Receivable	—			—		51,998			—			51,998
Direct Finance Lease Receivable	—			—		11,584			—			11,584
Intercompany Receivable	962,384			139,381		—			(1,101,765		)	—
Non-Current Deferred Income Tax Assets	—			—		4,821			—			4,821
Goodwill	34			493,391		650			—			494,075
Intangible Assets, Net	—			158,022		1,091			—			159,113
Investment in Subsidiaries	853,693			438,141		(70		)	(1,291,764		)	—
Other Non-Current Assets	25,987			106,666		51,986			(79,960		)	104,679
Total Assets	$	2,680,642		$	2,492,778	$	299,190		$	(2,474,643	)	$	2,997,967

LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable	$	9,642		$	48,855	$	3,071		$	—		$	61,568
Accrued payroll and related taxes	—			34,649		15,582			—			50,231
Accrued expenses and other	36,541			77,763		16,225			(1,154		)	129,375
Current portion of capital lease obligations, long-term debt and non-recourse debt	3,000			1,110		18,365			—			22,475
Total current liabilities	49,183			162,377		53,243			(1,154		)	263,649
Non-Current Deferred Income Tax Liabilities	(2,675		)	17,347		17			—			14,689
Intercompany Payable	129,832			957,569		14,364			(1,101,765		)	—
Other Non-Current Liabilities	4,674			139,016		10,389			(79,960		)	74,119
Capital Lease Obligations	—			10,132		—			—			10,132
Long-Term Debt	1,433,279			—		—			—			1,433,279
Non-Recourse Debt	—			—		135,347			—			135,347
Commitments & Contingencies and Other
Shareholders' Equity:
The GEO Group, Inc. Shareholders' Equity	1,066,349			1,206,337		85,427			(1,291,764		)	1,066,349
Noncontrolling Interests	—			—		403			—			403
Total Shareholders’ Equity	1,066,349			1,206,337		85,830			(1,291,764		)	1,066,752
Total Liabilities and Shareholders' Equity	$	2,680,642		$	2,492,778	$	299,190		$	(2,474,643	)	$	2,997,967

CONDENSED CONSOLIDATING BALANCE SHEET

(dollars in thousands)



	As of December 31, 2013
	The GEO Group, Inc.			Combined Subsidiary Guarantors		Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated

ASSETS
Cash and cash equivalents	$	30,730		$	985	$	20,410	$	—		$	52,125
Restricted cash and investments	—			—		11,518		—			11,518
Accounts receivable, less allowance for doubtful accounts	84,087			149,239		17,204		—			250,530
Current deferred income tax assets	—			19,236		1,700		—			20,936
Prepaid expenses and other current assets	17,834			21,032		11,524		(1,154		)	49,236
Total current assets	132,651			190,492		62,356		(1,154		)	384,345
Restricted Cash and Investments	167			11,158		7,024		—			18,349
Property and Equipment, Net	686,005			956,724		85,069		—			1,727,798
Direct Finance Lease Receivable	—			—		16,944		—			16,944
Intercompany Receivable	947,916			123,237		—		(1,071,153		)	—
Non-Current Deferred Income Tax Assets	—			—		4,821		—			4,821
Goodwill	34			489,501		661		—			490,196
Intangible Assets, Net	—			162,160		1,240		—			163,400
Investment in Subsidiaries	898,333			421,218		—		(1,319,551		)	—
Other Non-Current Assets	23,346			104,241		35,615		(79,691		)	83,511
Total Assets	$	2,688,452		$	2,458,731	$	213,730	$	(2,471,549	)	$	2,889,364

LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable	$	29,866		$	13,895	$	3,525	$	—		$	47,286
Accrued payroll and related taxes	207			23,470		15,049		—			38,726
Accrued expenses and other	26,963			74,645		14,496		(1,154		)	114,950
Current portion of capital lease obligations, long-term debt and non-recourse debt	3,000			1,185		17,978		—			22,163
Total current liabilities	60,036			113,195		51,048		(1,154		)	223,125
Non-Current Deferred Income Tax Liabilities	(120		)	14,792		17		—			14,689
Intercompany Payable	114,208			942,666		14,279		(1,071,153		)	—
Other Non-Current Liabilities	5,270			138,743		639		(79,691		)	64,961
Capital Lease Obligations	—			10,924		—		—			10,924
Long-Term Debt	1,485,536			—		—		—			1,485,536
Non-Recourse Debt	—			—		66,153		—			66,153
Commitments & Contingencies and Other
Shareholders' Equity:
The GEO Group, Inc. Shareholders' Equity	1,023,522			1,238,411		81,140		(1,319,551		)	1,023,522
Noncontrolling Interests	—			—		454		—			454
Total Shareholders’ Equity	1,023,522			1,238,411		81,594		(1,319,551		)	1,023,976
Total Liabilities and Shareholders' Equity	$	2,688,452		$	2,458,731	$	213,730	$	(2,471,549	)	$	2,889,364

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS



	For the Nine Months Ended September 30, 2014
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Consolidated
Cash Flow from Operating Activities:
Net cash provided by operating activities	$	149,460		$	53,506		$	(38,341	)	$	164,625
Cash Flow from Investing Activities:
Acquisition of Protocol, cash consideration	—			(13,025		)	—			(13,025		)
Proceeds from sale of property and equipment	—			515			—			515
Change in restricted cash and investments	(212		)	(2,073		)	(3,767		)	(6,052		)
Capital expenditures	(41,020		)	(34,432		)	(2,261		)	(77,713		)
Net cash used in investing activities	(41,232		)	(49,015		)	(6,028		)	(96,275		)
Cash Flow from Financing Activities:
Proceeds from long-term debt	459,384			—			—			459,384
Payments on long-term debt	(508,400		)	(732		)	—			(509,132		)
Payments on non-recourse debt	—			—			(4,511		)	(4,511		)
Proceeds from non-recourse debt	—			—			74,191			74,191
Taxes paid related to net share settlements of equity awards	(1,844		)	—			—			(1,844		)
Proceeds from reissuance of treasury stock in connection with ESPP	277			—			—			277
Issuance of common stock under prospectus supplement	54,724			—			—			54,724
Debt issuance costs	(7,802		)	—			(15,706		)	(23,508		)
Tax benefit related to equity compensation	1,498			—			—			1,498
Proceeds from stock options exercised	6,384			—			—			6,384
Cash dividends paid	(124,084		)	—			—			(124,084		)
Net cash used in financing activities	(119,863		)	(732		)	53,974			(66,621		)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	—			—			(1,174		)	(1,174		)
Net Increase (Decrease) in Cash and Cash Equivalents	(11,635		)	3,759			8,431			555
Cash and Cash Equivalents, beginning of period	30,730			985			20,410			52,125
Cash and Cash Equivalents, end of period	$	19,095		$	4,744		$	28,841		$	52,680

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(dollars in thousands)

(unaudited)



	For the Nine Months Ended September 30, 2013
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Consolidated
Cash Flow from Operating Activities:
Cash provided by operating activities - continuing operations	$	110,143		$	30,302		$	15,110		$	155,555
Cash provided by operating activities - discontinued operations	2,265			—			—			2,265
Net cash provided by operating activities	112,408			30,302			15,110			157,820
Cash Flow from Investing Activities:
Proceeds from sale of property and equipment	—			204			—			204
Proceeds from sale of assets held for sale	—			1,968			—			1,968
Net working capital adjustment from RTS divestiture	(996		)	—			—			(996		)
Change in restricted cash and investments	(149		)	(2,055		)	16,180			13,976
Capital expenditures	(71,848		)	(27,967		)	(1,635		)	(101,450		)
Net cash used in investing activities	(72,993		)	(27,850		)	14,545			(86,298		)
Cash Flow from Financing Activities:
Proceeds from long-term debt	842,000			—			—			842,000
Payments on long-term debt	(741,313		)	(890		)	—			(742,203		)
Payments on non-recourse debt	—			—			(27,153		)	(27,153		)
Proceeds from non-recourse debt	—			—			—			—
Proceeds from reissuance of treasury stock in connection with ESPP	228			—			—			228
Debt issuance costs	(19,317		)	—			—			(19,317		)
Tax benefit related to equity compensation	1,883			—			—			1,883
Proceeds from stock options exercised	4,941			—			—			4,941
Cash dividends paid	(107,526		)	—			—			(107,526		)
Net cash provided by (used in) financing activities	(19,104		)	(890		)	(27,153		)	(47,147		)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	—			—			(2,969		)	(2,969		)
Net Increase in Cash and Cash Equivalents	20,311			1,562			(467		)	21,406
Cash and Cash Equivalents, beginning of period	4,764			1,917			25,074			31,755
Cash and Cash Equivalents, end of period	$	25,075		$	3,479		$	24,607		$	53,161