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Condensed Consolidating Financial Information (Tables) | 6 Months Ended
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Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (dollars in thousands) (unaudited)
| For the Three Months Ended June 30, 2015
| The GEO Group, Inc. |  | Combined Subsidiary Guarantors |  | Combined Non-Guarantor Subsidiaries |  | Eliminations |  | Consolidated
Revenues | $ | 161,365 |  |  | $ | 367,482 |  |  | $ | 61,521 |  |  | $ | (144,423 | ) |  | $ | 445,945 |
Operating expenses | 141,323 |  |  | 286,414 |  |  | 50,616 |  |  | (144,423 | ) |  | 333,930 |
Depreciation and amortization | 6,381 |  |  | 19,182 |  |  | 997 |  |  | — |  |  | 26,560 |
General and administrative expenses | 11,049 |  |  | 16,928 |  |  | 4,197 |  |  | — |  |  | 32,174 |
Operating income | 2,612 |  |  | 44,958 |  |  | 5,711 |  |  | — |  |  | 53,281 |
Interest income | 5,735 |  |  | 847 |  |  | 3,183 |  |  | (6,897 | ) |  | 2,868 |
Interest expense | (15,537 | ) |  | (14,743 | ) |  | (3,268 | ) |  | 6,897 |  |  | (26,651 | )
Income before income taxes and equity in earnings of affiliates | (7,190 | ) |  | 31,062 |  |  | 5,626 |  |  | — |  |  | 29,498 |
Income tax provision (benefit) | (61 | ) |  | 1,588 |  |  | 842 |  |  | — |  |  | 2,369 |
Equity in earnings of affiliates, net of income tax provision | — |  |  | — |  |  | 1,124 |  |  | — |  |  | 1,124 |
Income (loss) before equity in income of consolidated subsidiaries | (7,129 | ) |  | 29,474 |  |  | 5,908 |  |  | — |  |  | 28,253 |
Income from consolidated subsidiaries, net of income tax provision | 35,382 |  |  | — |  |  | — |  |  | (35,382 | ) |  | — |
Net income | 28,253 |  |  | 29,474 |  |  | 5,908 |  |  | (35,382 | ) |  | 28,253 |
Net loss attributable to noncontrolling interests | — |  |  | — |  |  | 38 |  |  |  |  |  | 38 |
Net income attributable to The GEO Group, Inc. | $ | 28,253 |  |  | $ | 29,474 |  |  | $ | 5,946 |  |  | $ | (35,382 | ) |  | $ | 28,291 |
Net income | $ | 28,253 |  |  | $ | 29,474 |  |  | $ | 5,908 |  |  | $ | (35,382 | ) |  | $ | 28,253 |
Other comprehensive income, net of tax | — |  |  | 40 |  |  | 4,810 |  |  | — |  |  | 4,850 |
Total comprehensive income | $ | 28,253 |  |  | $ | 29,514 |  |  | $ | 10,718 |  |  | $ | (35,382 | ) |  | $ | 33,103 |
Comprehensive loss attributable to noncontrolling interests | — |  |  | — |  |  | 43 |  |  | — |  |  | 43 |
Comprehensive income attributable to The GEO Group, Inc. | $ | 28,253 |  |  | $ | 29,514 |  |  | $ | 10,761 |  |  | $ | (35,382 | ) |  | $ | 33,146 |
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (dollars in thousands) (unaudited)
| For the Three Months Ended June 30, 2014
| The GEO Group, Inc. |  | Combined Subsidiary Guarantors |  | Combined Non-Guarantor Subsidiaries |  | Eliminations |  | Consolidated
Revenues | $ | 139,083 |  |  | $ | 327,427 |  |  | $ | 56,760 |  |  | $ | (110,427 | ) |  | $ | 412,843 |
Operating expenses | 111,191 |  |  | 251,833 |  |  | 47,461 |  |  | (110,427 | ) |  | 300,058 |
Depreciation and amortization | 6,441 |  |  | 16,169 |  |  | 1,138 |  |  | — |  |  | 23,748 |
General and administrative expenses | 9,082 |  |  | 15,355 |  |  | 3,711 |  |  | — |  |  | 28,148 |
Operating income | 12,369 |  |  | 44,070 |  |  | 4,450 |  |  | — |  |  | 60,889 |
Interest income | 5,079 |  |  | 615 |  |  | 750 |  |  | (5,620 | ) |  | 824 |
Interest expense | (11,123 | ) |  | (13,357 | ) |  | (1,742 | ) |  | 5,620 |  |  | (20,602 | )
Income before income taxes and equity in earnings of affiliates | 6,325 |  |  | 31,328 |  |  | 3,458 |  |  | — |  |  | 41,111 |
Income tax provision | — |  |  | 2,671 |  |  | 716 |  |  | — |  |  | 3,387 |
Equity in earnings of affiliates, net of income tax provision | — |  |  | — |  |  | 1,174 |  |  | — |  |  | 1,174 |
Income before equity in income of consolidated subsidiaries | 6,325 |  |  | 28,657 |  |  | 3,916 |  |  | — |  |  | 38,898 |
Income from consolidated subsidiaries, net of income tax provision | 32,573 |  |  | — |  |  | — |  |  | (32,573 | ) |  | — |
Net income | 38,898 |  |  | 28,657 |  |  | 3,916 |  |  | (32,573 | ) |  | 38,898 |
Net income attributable to The GEO Group, Inc. | $ | 38,898 |  |  | $ | 28,657 |  |  | $ | 3,916 |  |  | $ | (32,573 | ) |  | $ | 38,898 |
Net income | $ | 38,898 |  |  | $ | 28,657 |  |  | $ | 3,916 |  |  | $ | (32,573 | ) |  | $ | 38,898 |
Other comprehensive income, net of tax | — |  |  | 20 |  |  | 621 |  |  | — |  |  | 641 |
Total comprehensive income | $ | 38,898 |  |  | $ | 28,677 |  |  | $ | 4,537 |  |  | $ | (32,573 | ) |  | $ | 39,539 |
Comprehensive loss attributable to noncontrolling interests | — |  |  | — |  |  | 5 |  |  | — |  |  | 5 |
Comprehensive income attributable to The GEO Group, Inc. | $ | 38,898 |  |  | $ | 28,677 |  |  | $ | 4,542 |  |  | $ | (32,573 | ) |  | $ | 39,544 |
CONDENSED CONSOLIDATING BALANCE SHEET |
| As of June 30, 2015
| The GEO Group, Inc. |  | Combined Subsidiary Guarantors |  | Combined Non-Guarantor Subsidiaries |  | Eliminations |  | Consolidated
ASSETS
Cash and cash equivalents | $ | 5,852 |  |  | $ | 8,013 |  |  | $ | 33,179 |  |  | $ | — |  |  | $ | 47,044 |
Restricted cash and investments | — |  |  | — |  |  | 7,946 |  |  | — |  |  | 7,946 |
Accounts receivable, less allowance for doubtful accounts | 105,451 |  |  | 151,966 |  |  | 12,714 |  |  | — |  |  | 270,131 |
Current deferred income tax assets | — |  |  | 21,694 |  |  | 4,227 |  |  | — |  |  | 25,921 |
Prepaid expenses and other current assets | 4,375 |  |  | 19,702 |  |  | 9,749 |  |  | (1,154 | ) |  | 32,672 |
Total current assets | 115,678 |  |  | 201,375 |  |  | 67,815 |  |  | (1,154 | ) |  | 383,714 |
Restricted Cash and Investments | 131 |  |  | 16,126 |  |  | 4,790 |  |  | — |  |  | 21,047 |
Property and Equipment, Net | 747,862 |  |  | 1,088,613 |  |  | 82,791 |  |  | — |  |  | 1,919,266 |
Contract Receivable | — |  |  | — |  |  | 110,176 |  |  | — |  |  | 110,176 |
Direct Finance Lease Receivable | — |  |  | — |  |  | 5,339 |  |  | — |  |  | 5,339 |
Intercompany Receivable | 944,769 |  |  | 116,878 |  |  | — |  |  | (1,061,647 | ) |  | — |
Non-Current Deferred Income Tax Assets | — |  |  | — |  |  | 5,873 |  |  | — |  |  | 5,873 |
Goodwill | 90 |  |  | 615,652 |  |  | 438 |  |  | — |  |  | 616,180 |
Intangible Assets, Net | — |  |  | 233,570 |  |  | 955 |  |  | — |  |  | 234,525 |
Investment in Subsidiaries | 1,182,865 |  |  | 217,278 |  |  | — |  |  | (1,400,143 | ) |  | — |
Other Non-Current Assets | 23,555 |  |  | 110,144 |  |  | 51,748 |  |  | (80,116 | ) |  | 105,331 |
Total Assets | $ | 3,014,950 |  |  | $ | 2,599,636 |  |  | $ | 329,925 |  |  | $ | (2,543,060 | ) |  | $ | 3,401,451 |
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable | $ | 8,058 |  |  | $ | 49,975 |  |  | $ | 1,534 |  |  | $ | — |  |  | $ | 59,567 |
Accrued payroll and related taxes | — |  |  | 30,076 |  |  | 15,037 |  |  | — |  |  | 45,113 |
Accrued expenses and other | 42,941 |  |  | 68,924 |  |  | 24,072 |  |  | (1,154 | ) |  | 134,783 |
Current portion of capital lease obligations, long-term debt and non-recourse debt | 3,000 |  |  | 1,323 |  |  | 12,499 |  |  | — |  |  | 16,822 |
Total current liabilities | 53,999 |  |  | 150,298 |  |  | 53,142 |  |  | (1,154 | ) |  | 256,285 |
Non-Current Deferred Income Tax Liabilities | (4,670 | ) |  | 20,434 |  |  | 5 |  |  | — |  |  | 15,769 |
Intercompany Payable | 100,410 |  |  | 953,347 |  |  | 7,890 |  |  | (1,061,647 | ) |  | — |
Other Non-Current Liabilities | 4,104 |  |  | 143,356 |  |  | 18,575 |  |  | (80,116 | ) |  | 85,919 |
Capital Lease Obligations | — |  |  | 9,286 |  |  | — |  |  | — |  |  | 9,286 |
Long-Term Debt | 1,844,763 |  |  | — |  |  | — |  |  | — |  |  | 1,844,763 |
Non-Recourse Debt | — |  |  | — |  |  | 172,852 |  |  | — |  |  | 172,852 |
Commitments & Contingencies and Other |  |  |  |  |  |  |  |  |  |  |  |  |  |
Shareholders' Equity: |  |  |  |  |  |  |  |  |
The GEO Group, Inc. Shareholders' Equity | 1,016,344 |  |  | 1,322,915 |  |  | 77,228 |  |  | (1,400,143 | ) |  | 1,016,344 |
Noncontrolling Interests | — |  |  | — |  |  | 233 |  |  | — |  |  | 233 |
Total Shareholders’ Equity | 1,016,344 |  |  | 1,322,915 |  |  | 77,461 |  |  | (1,400,143 | ) |  | 1,016,577 |
Total Liabilities and Shareholders' Equity | $ | 3,014,950 |  |  | $ | 2,599,636 |  |  | $ | 329,925 |  |  | $ | (2,543,060 | ) |  | $ | 3,401,451 |
CONDENSED CONSOLIDATING BALANCE SHEET (dollars in thousands)
| As of December 31, 2014
| The GEO Group, Inc. |  | Combined Subsidiary Guarantors |  | Combined Non-Guarantor Subsidiaries |  | Eliminations |  | Consolidated
ASSETS
Cash and cash equivalents | $ | 18,492 |  |  | $ | 782 |  |  | $ | 22,063 |  |  | $ | — |  |  | $ | 41,337 |
Restricted cash and investments | — |  |  | — |  |  | 4,341 |  |  | — |  |  | 4,341 |
Accounts receivable, less allowance for doubtful accounts | 92,456 |  |  | 159,505 |  |  | 17,077 |  |  | — |  |  | 269,038 |
Current deferred income tax assets | — |  |  | 21,657 |  |  | 4,227 |  |  | — |  |  | 25,884 |
Prepaid expenses and other current assets | 7,022 |  |  | 19,593 |  |  | 11,345 |  |  | (1,154 | ) |  | 36,806 |
Total current assets | 117,970 |  |  | 201,537 |  |  | 59,053 |  |  | (1,154 | ) |  | 377,406 |
Restricted Cash and Investments | 228 |  |  | 13,729 |  |  | 5,621 |  |  | — |  |  | 19,578 |
Property and Equipment, Net | 726,238 |  |  | 961,896 |  |  | 84,032 |  |  | — |  |  | 1,772,166 |
Direct Finance Lease Receivable | — |  |  | — |  |  | 9,256 |  |  | — |  |  | 9,256 |
Contract Receivable | — |  |  | — |  |  | 66,229 |  |  |  |  | 66,229 |
Intercompany Receivable | 962,314 |  |  | 119,414 |  |  | — |  |  | (1,081,728 | ) |  | — |
Non-Current Deferred Income Tax Assets | — |  |  | — |  |  | 5,873 |  |  | — |  |  | 5,873 |
Goodwill | 34 |  |  | 493,389 |  |  | 467 |  |  | — |  |  | 493,890 |
Intangible Assets, Net | — |  |  | 154,237 |  |  | 1,038 |  |  | — |  |  | 155,275 |
Investment in Subsidiaries | 855,870 |  |  | 438,243 |  |  | — |  |  | (1,294,113 | ) |  | — |
Other Non-Current Assets | 25,635 |  |  | 110,105 |  |  | 46,838 |  |  | (80,043 | ) |  | 102,535 |
Total Assets | $ | 2,688,289 |  |  | $ | 2,492,550 |  |  | $ | 278,407 |  |  | $ | (2,457,038 | ) |  | $ | 3,002,208 |
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable | $ | 7,549 |  |  | $ | 47,130 |  |  | $ | 3,476 |  |  | $ | — |  |  | $ | 58,155 |
Accrued payroll and related taxes | — |  |  | 24,184 |  |  | 14,372 |  |  | — |  |  | 38,556 |
Accrued expenses and other | 47,637 |  |  | 75,574 |  |  | 18,555 |  |  | (1,154 | ) |  | 140,612 |
Current portion of capital lease obligations, long-term debt and non-recourse debt | 3,001 |  |  | 1,170 |  |  | 12,581 |  |  | — |  |  | 16,752 |
Total current liabilities | 58,187 |  |  | 148,058 |  |  | 48,984 |  |  | (1,154 | ) |  | 254,075 |
Non-Current Deferred Income Tax Liabilities | (4,095 | ) |  | 14,170 |  |  | (7 | ) |  | — |  |  | 10,068 |
Intercompany Payable | 121,327 |  |  | 942,071 |  |  | 18,330 |  |  | (1,081,728 | ) |  | — |
Other Non-Current Liabilities | 4,372 |  |  | 143,584 |  |  | 19,507 |  |  | (80,034 | ) |  | 87,429 |
Capital Lease Obligations | — |  |  | 9,856 |  |  | — |  |  | — |  |  | 9,856 |
Long-Term Debt | 1,462,819 |  |  | — |  |  | — |  |  | — |  |  | 1,462,819 |
Non-Recourse Debt | — |  |  | — |  |  | 131,968 |  |  | — |  |  | 131,968 |
Commitments & Contingencies and Other |  |  |  |  |  |  |  |  |
Shareholders' Equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |
The GEO Group, Inc. Shareholders' Equity | 1,045,679 |  |  | 1,234,811 |  |  | 59,311 |  |  | (1,294,122 | ) |  | 1,045,679 |
Noncontrolling Interests | — |  |  | — |  |  | 314 |  |  | — |  |  | 314 |
Total Shareholders’ Equity | 1,045,679 |  |  | 1,234,811 |  |  | 59,625 |  |  | (1,294,122 | ) |  | 1,045,993 |
Total Liabilities and Shareholders' Equity | $ | 2,688,289 |  |  | $ | 2,492,550 |  |  | $ | 278,407 |  |  | $ | (2,457,038 | ) |  | $ | 3,002,208 |
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS |
| For the Six Months Ended June 30, 2015
| The GEO Group, Inc. |  | Combined Subsidiary Guarantors |  | Combined Non-Guarantor Subsidiaries |  | Consolidated
Cash Flow from Operating Activities: |  |  |  |  |  |  |
Net cash provided by (used in) operating activities | $ | 39,103 |  |  | $ | 62,486 |  |  | $ | (21,791 | ) |  | $ | 79,798 |
Cash Flow from Investing Activities: |  |  |  |  |  |  |
Acquisition of SoberLink, cash consideration |  |  | (24,402 | ) |  |  |  | (24,402 | )
Acquisition of LCS, net of cash acquired | (307,403 | ) |  | — |  |  | — |  |  | (307,403 | )
Proceeds from sale of property and equipment | — |  |  | 123 |  |  | — |  |  | 123 |
Insurance proceeds - damaged property | — |  |  | 901 |  |  | — |  |  | 901 |
Change in restricted cash and investments | (97 | ) |  | 2,396 |  |  | (7,716 | ) |  | (5,417 | )
Capital expenditures | (36,367 | ) |  | (34,273 | ) |  | (1,054 | ) |  | (71,694 | )
Net cash used in investing activities | (343,867 | ) |  | (55,255 | ) |  | (8,770 | ) |  | (407,892 | )
Cash Flow from Financing Activities: |  |  |  |  |  |  |
Proceeds from long-term debt | 518,000 |  |  | — |  |  | — |  |  | 518,000 |
Payments on long-term debt | (134,744 | ) |  | — |  |  | — |  |  | (134,744 | )
Payments on non-recourse debt | — |  |  | — |  |  | (4,513 | ) |  | (4,513 | )
Proceeds from non-recourse debt | — |  |  | — |  |  | 49,731 |  |  | 49,731 |
Taxes paid related to net share settlements of equity awards | (1,784 | ) |  | — |  |  | — |  |  | (1,784 | )
Proceeds from reissuance of treasury stock in connection with ESPP | 218 |  |  | — |  |  | — |  |  | 218 |
Debt issuance costs | — |  |  | — |  |  | (2,438 | ) |  | (2,438 | )
Tax benefit related to equity compensation | 651 |  |  | — |  |  | — |  |  | 651 |
Proceeds from stock options exercised | 2,037 |  |  | — |  |  | — |  |  | 2,037 |
Cash dividends paid | (92,254 | ) |  | — |  |  | — |  |  | (92,254 | )
Net cash provided by financing activities | 292,124 |  |  | — |  |  | 42,780 |  |  | 334,904 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | — |  |  | — |  |  | (1,103 | ) |  | (1,103 | )
Net Increase (Decrease) in Cash and Cash Equivalents | (12,640 | ) |  | 7,231 |  |  | 11,116 |  |  | 5,707 |
Cash and Cash Equivalents, beginning of period | 18,492 |  |  | 782 |  |  | 22,063 |  |  | 41,337 |
Cash and Cash Equivalents, end of period | $ | 5,852 |  |  | $ | 8,013 |  |  | $ | 33,179 |  |  | $ | 47,044 |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (dollars in thousands) (unaudited)
| For the Six Months Ended June 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 | $ | 76,863 |  |  | $ | 33,090 |  |  | $ | 22,191 |  |  | $ | 132,144 |
Cash Flow from Investing Activities: |  |  |  |  |  |  |
Proceeds from sale of property and equipment | — |  |  | 514 |  |  | — |  |  | 514 |
Acquisition of Protocol, cash consideration | — |  |  | (13,000 | ) |  | — |  |  | (13,000 | )
Change in restricted cash and investments | (207 | ) |  | (1,917 | ) |  | (6,812 | ) |  | (8,936 | )
Capital expenditures | (24,197 | ) |  | (16,671 | ) |  | (254 | ) |  | (41,122 | )
Net cash used in investing activities | (24,404 | ) |  | (31,074 | ) |  | (7,066 | ) |  | (62,544 | )
Cash Flow from Financing Activities: |  |  |  |  |  |  |
Proceeds from long-term debt | 9,000 |  |  | — |  |  | — |  |  | 9,000 |
Payments on long-term debt | (14,000 | ) |  | (82 | ) |  | (3,097 | ) |  | (17,179 | )
Indirect repurchases of treasury shares | (1,416 | ) |  | — |  |  | — |  |  | (1,416 | )
Proceeds from reissuance of treasury stock in connection with ESPP | 185 |  |  | — |  |  | — |  |  | 185 |
Tax benefit related to equity compensation | 1,351 |  |  | — |  |  | — |  |  | 1,351 |
Proceeds from stock options exercised | 5,531 |  |  | — |  |  | — |  |  | 5,531 |
Cash dividends paid | (82,656 | ) |  | — |  |  | — |  |  | (82,656 | )
Net cash used in financing activities | (82,005 | ) |  | (82 | ) |  | (3,097 | ) |  | (85,184 | )
Effect of Exchange Rate Changes on Cash and Cash Equivalents | — |  |  | — |  |  | 819 |  |  | 819 |
Net Increase (Decrease) in Cash and Cash Equivalents | (29,546 | ) |  | 1,934 |  |  | 12,847 |  |  | (14,765 | )
Cash and Cash Equivalents, beginning of period | 30,730 |  |  | 985 |  |  | 20,410 |  |  | 52,125 |
Cash and Cash Equivalents, end of period | $ | 1,184 |  |  | $ | 2,919 |  |  | $ | 33,257 |  |  | $ | 37,360 |

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