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Condensed Consolidating Financial Information | 9 Months Ended
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Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Condensed Consolidating Financial Information | CONDENSED CONSOLIDATING FINANCIAL INFORMATION As of September 30, 2016, the Company's 6.00% Senior Notes, 5.125% Senior Notes, the 5.875% Senior Notes due 2022 and the 5.875% Senior Notes due 2024 were fully and unconditionally guaranteed on a joint and several senior unsecured basis by the Company and certain of its wholly-owned domestic subsidiaries (the “Subsidiary Guarantors”). The following condensed consolidating financial information, which has been prepared in accordance with the requirements for presentation of Rule 3-10(d) of Regulation S-X promulgated under the Securities Act, presents the condensed consolidating financial information separately for:
(i) | The GEO Group, Inc., as the issuer of the notes;
(ii) | The Subsidiary Guarantors, on a combined basis, which are 100% owned by The GEO Group, Inc., and which are guarantors of the notes;
(iii) | The Company’s other subsidiaries, on a combined basis, which are not guarantors of the notes (the “Non-Guarantor Subsidiaries”);
(iv) | Consolidating entries and eliminations representing adjustments to (a) eliminate intercompany transactions between or among the Company, the Subsidiary Guarantors and the Subsidiary Non-Guarantors and (b) eliminate the investments in the Company’s subsidiaries; and
(v) | The Company and its subsidiaries on a consolidated basis.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (dollars in thousands) (unaudited)
| For the Three Months Ended September 30, 2016
| The GEO Group, Inc. |  | Combined Subsidiary Guarantors |  | Combined Non-Guarantor Subsidiaries |  | Eliminations |  | Consolidated
Revenues | $ | 173,920 |  |  | $ | 410,329 |  |  | $ | 112,708 |  |  | $ | (142,581 | ) |  | $ | 554,376 |
Operating expenses | 144,748 |  |  | 314,009 |  |  | 99,483 |  |  | (142,581 | ) |  | 415,659 |
Depreciation and amortization | 6,339 |  |  | 21,502 |  |  | 942 |  |  | — |  |  | 28,783 |
General and administrative expenses | 11,727 |  |  | 18,180 |  |  | 7,576 |  |  | — |  |  | 37,483 |
Operating income | 11,106 |  |  | 56,638 |  |  | 4,707 |  |  | — |  |  | 72,451 |
Interest income | 4,765 |  |  | 422 |  |  | 8,029 |  |  | (5,288 | ) |  | 7,928 |
Interest expense | (16,324 | ) |  | (13,525 | ) |  | (8,867 | ) |  | 5,288 |  |  | (33,428 | )
Loss on extinguishment of debt | — |  |  | — |  |  | — |  |  | — |  |  | — |
Income (loss) before income taxes and equity in earnings of affiliates | (453 | ) |  | 43,535 |  |  | 3,869 |  |  | — |  |  | 46,951 |
Income tax provision | (9 | ) |  | 4,032 |  |  | 947 |  |  | — |  |  | 4,970 |
Equity in earnings of affiliates, net of income tax provision | — |  |  | — |  |  | 1,693 |  |  | — |  |  | 1,693 |
Income before equity in income of consolidated subsidiaries | (444 | ) |  | 39,503 |  |  | 4,615 |  |  | — |  |  | 43,674 |
Income from consolidated subsidiaries, net of income tax provision | 44,118 |  |  | — |  |  | — |  |  | (44,118 | ) |  | — |
Net income | 43,674 |  |  | 39,503 |  |  | 4,615 |  |  | (44,118 | ) |  | 43,674 |
Net loss attributable to noncontrolling interests | — |  |  | — |  |  | 46 |  |  | — |  |  | 46 |
Net income attributable to The GEO Group, Inc. | $ | 43,674 |  |  | $ | 39,503 |  |  | $ | 4,661 |  |  | $ | (44,118 | ) |  | $ | 43,720 |
Net income | $ | 43,674 |  |  | $ | 39,503 |  |  | $ | 4,615 |  |  | $ | (44,118 | ) |  | $ | 43,674 |
Other comprehensive income, net of tax | — |  |  | 33 |  |  | 450 |  |  | — |  |  | 483 |
Total comprehensive income | $ | 43,674 |  |  | $ | 39,536 |  |  | $ | 5,065 |  |  | $ | (44,118 | ) |  | $ | 44,157 |
Comprehensive loss attributable to noncontrolling interests | — |  |  | — |  |  | 36 |  |  | — |  |  | 36 |
Comprehensive income attributable to The GEO Group, Inc. | $ | 43,674 |  |  | $ | 39,536 |  |  | $ | 5,101 |  |  | $ | (44,118 | ) |  | $ | 44,193 |
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (dollars in thousands) (unaudited)
| For the Three Months Ended September 30, 2015
| The GEO Group, Inc. |  | Combined Subsidiary Guarantors |  | Combined Non-Guarantor Subsidiaries |  | Eliminations |  | Consolidated
Revenues | $ | 175,353 |  |  | $ | 369,004 |  |  | $ | 65,388 |  |  | $ | (139,879 | ) |  | $ | 469,866 |
Operating expenses | 142,002 |  |  | 288,303 |  |  | 55,540 |  |  | (139,879 | ) |  | 345,966 |
Depreciation and amortization | 6,007 |  |  | 20,002 |  |  | 1,118 |  |  | — |  |  | 27,127 |
General and administrative expenses | 12,285 |  |  | 16,876 |  |  | 4,581 |  |  | — |  |  | 33,742 |
Operating income | 15,059 |  |  | 43,823 |  |  | 4,149 |  |  | — |  |  | 63,031 |
Interest income | 5,820 |  |  | 431 |  |  | 2,870 |  |  | (6,129 | ) |  | 2,992 |
Interest expense | (15,419 | ) |  | (14,320 | ) |  | (3,704 | ) |  | 6,129 |  |  | (27,314 | )
Income before income taxes and equity in earnings of affiliates | 5,460 |  |  | 29,934 |  |  | 3,315 |  |  | — |  |  | 38,709 |
Income tax provision | — |  |  | 869 |  |  | 889 |  |  | — |  |  | 1,758 |
Equity in earnings of affiliates, net of income tax provision | — |  |  | — |  |  | 1,340 |  |  | — |  |  | 1,340 |
Income before equity in income of consolidated subsidiaries | 5,460 |  |  | 29,065 |  |  | 3,766 |  |  | — |  |  | 38,291 |
Income from consolidated subsidiaries, net of income tax provision | 32,831 |  |  | — |  |  | — |  |  | (32,831 | ) |  | — |
Net income | 38,291 |  |  | 29,065 |  |  | 3,766 |  |  | (32,831 | ) |  | 38,291 |
Net loss attributable to noncontrolling interests | — |  |  | — |  |  | 21 |  |  | — |  |  | 21 |
Net income attributable to The GEO Group, Inc. | $ | 38,291 |  |  | $ | 29,065 |  |  | $ | 3,787 |  |  | $ | (32,831 | ) |  | $ | 38,312 |
Net income | $ | 38,291 |  |  | $ | 29,065 |  |  | $ | 3,766 |  |  | $ | (32,831 | ) |  | $ | 38,291 |
Other comprehensive income, net of tax | — |  |  | 43 |  |  | (6,484 | ) |  | — |  |  | (6,441 | )
Total comprehensive income | $ | 38,291 |  |  | $ | 29,108 |  |  | $ | (2,718 | ) |  | $ | (32,831 | ) |  | $ | 31,850 |
Comprehensive loss attributable to noncontrolling interests | — |  |  | — |  |  | 64 |  |  | — |  |  | 64 |
Comprehensive income attributable to The GEO Group, Inc. | $ | 38,291 |  |  | $ | 29,108 |  |  | $ | (2,654 | ) |  | $ | (32,831 | ) |  | $ | 31,914 |
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (dollars in thousands) (unaudited)
| For the Nine Months Ended September 30, 2016
| The GEO Group, Inc. |  | Combined Subsidiary Guarantors |  | Combined Non-Guarantor Subsidiaries |  | Eliminations |  | Consolidated
Revenues | $ | 515,971 |  |  | $ | 1,215,469 |  |  | $ | 306,484 |  |  | $ | (425,013 | ) |  | $ | 1,612,911 |
Operating expenses | 418,261 |  |  | 957,704 |  |  | 270,050 |  |  | (425,013 | ) |  | 1,221,002 |
Depreciation and amortization | 18,866 |  |  | 64,159 |  |  | 2,861 |  |  | — |  |  | 85,886 |
General and administrative expenses | 34,548 |  |  | 53,396 |  |  | 20,504 |  |  | — |  |  | 108,448 |
Operating income | 44,296 |  |  | 140,210 |  |  | 13,069 |  |  | — |  |  | 197,575 |
Interest income | 15,646 |  |  | 1,440 |  |  | 18,699 |  |  | (17,398 | ) |  | 18,387 |
Interest expense | (49,031 | ) |  | (41,401 | ) |  | (20,830 | ) |  | 17,398 |  |  | (93,864 | )
Loss on extinguishment of debt | (15,885 | ) |  | — |  |  | — |  |  | — |  |  | (15,885 | )
Income (loss) before income taxes and equity in earnings of affiliates | (4,974 | ) |  | 100,249 |  |  | 10,938 |  |  | — |  |  | 106,213 |
Income tax (benefit) provision | (101 | ) |  | 9,323 |  |  | 2,778 |  |  | — |  |  | 12,000 |
Equity in earnings of affiliates, net of income tax provision | — |  |  | — |  |  | 4,943 |  |  | — |  |  | 4,943 |
Income (loss) before equity in income of consolidated subsidiaries | (4,873 | ) |  | 90,926 |  |  | 13,103 |  |  | — |  |  | 99,156 |
Income from consolidated subsidiaries, net of income tax provision | 104,029 |  |  |  |  |  |  |  |  | (104,029 | ) |  | — |
Net income | 99,156 |  |  | 90,926 |  |  | 13,103 |  |  | (104,029 | ) |  | 99,156 |
Net loss attributable to noncontrolling interests | — |  |  | — |  |  | 123 |  |  | — |  |  | 123 |
Net income attributable to The GEO Group, Inc. | $ | 99,156 |  |  | $ | 90,926 |  |  | $ | 13,226 |  |  | $ | (104,029 | ) |  | $ | 99,279 |
Net income | $ | 99,156 |  |  | $ | 90,926 |  |  | $ | 13,103 |  |  | $ | (104,029 | ) |  | $ | 99,156 |
Other comprehensive income (loss), net of tax | — |  |  | 98 |  |  | (3,081 | ) |  | — |  |  | (2,983 | )
Total comprehensive income | $ | 99,156 |  |  | $ | 91,024 |  |  | $ | 10,022 |  |  | $ | (104,029 | ) |  | $ | 96,173 |
Comprehensive loss attributable to noncontrolling interests | — |  |  | — |  |  | 104 |  |  | — |  |  | 104 |
Comprehensive income attributable to The GEO Group, Inc. | $ | 99,156 |  |  | $ | 91,024 |  |  | $ | 10,126 |  |  | $ | (104,029 | ) |  | $ | 96,277 |
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (dollars in thousands) (unaudited)
| For the Nine Months Ended September 30, 2015
| The GEO Group, Inc. |  | Combined Subsidiary Guarantors |  | Combined Non-Guarantor Subsidiaries |  | Eliminations |  | Consolidated
Revenues | $ | 481,102 |  |  | $ | 1,076,373 |  |  | $ | 191,876 |  |  | $ | (406,170 | ) |  | $ | 1,343,181 |
Operating expenses | 399,557 |  |  | 843,498 |  |  | 160,927 |  |  | (406,170 | ) |  | 997,812 |
Depreciation and amortization | 18,592 |  |  | 56,881 |  |  | 3,155 |  |  | — |  |  | 78,628 |
General and administrative expenses | 33,657 |  |  | 50,684 |  |  | 13,423 |  |  | — |  |  | 97,764 |
Operating income (loss) | 29,296 |  |  | 125,310 |  |  | 14,371 |  |  | — |  |  | 168,977 |
Interest income | 17,733 |  |  | 2,510 |  |  | 8,189 |  |  | (20,499 | ) |  | 7,933 |
Interest expense | (45,264 | ) |  | (43,700 | ) |  | (10,145 | ) |  | 20,499 |  |  | (78,610 | )
Income (loss) before income taxes and equity in earnings of affiliates | 1,765 |  |  | 84,120 |  |  | 12,415 |  |  | — |  |  | 98,300 |
Income tax (benefit) provision | (62 | ) |  | 4,199 |  |  | 2,817 |  |  | — |  |  | 6,954 |
Equity in earnings of affiliates, net of income tax provision | — |  |  | — |  |  | 3,949 |  |  | — |  |  | 3,949 |
Income (loss) from continuing operations before equity in income of consolidated subsidiaries | 1,827 |  |  | 79,921 |  |  | 13,547 |  |  | — |  |  | 95,295 |
Income from consolidated subsidiaries, net of income tax provision | 93,468 |  |  | — |  |  | — |  |  | (93,468 | ) |  | — |
Net income | $ | 95,295 |  |  | $ | 79,921 |  |  | $ | 13,547 |  |  | $ | (93,468 | ) |  | $ | 95,295 |
Net loss attributable to noncontrolling interests | — |  |  | — |  |  | 79 |  |  | — |  |  | 79 |
Net income attributable to The GEO Group, Inc. | $ | 95,295 |  |  | $ | 79,921 |  |  | $ | 13,626 |  |  | $ | (93,468 | ) |  | $ | 95,374 |
Net income | $ | 95,295 |  |  | $ | 79,921 |  |  | $ | 13,547 |  |  | $ | (93,468 | ) |  | $ | 95,295 |
Other comprehensive income (loss), net of tax | — |  |  | 120 |  |  | (7,435 | ) |  | — |  |  | (7,315 | )
Total comprehensive income | $ | 95,295 |  |  | $ | 80,041 |  |  | $ | 6,112 |  |  | $ | (93,468 | ) |  | $ | 87,980 |
Comprehensive loss attributable to noncontrolling interests | — |  |  | — |  |  | 145 |  |  | — |  |  | 145 |
Comprehensive income attributable to The GEO Group, Inc. | $ | 95,295 |  |  | $ | 80,041 |  |  | $ | 6,257 |  |  | $ | (93,468 | ) |  | $ | 88,125 |
CONDENSED CONSOLIDATING BALANCE SHEET (dollars in thousands) (unaudited)
| As of September 30, 2016
| The GEO Group, Inc. |  | Combined Subsidiary Guarantors |  | Combined Non-Guarantor Subsidiaries |  | Eliminations |  | Consolidated
ASSETS
Cash and cash equivalents | $ | 5,136 |  |  | $ | — |  |  | $ | 24,987 |  |  | $ | — |  |  | $ | 30,123 |
Restricted cash and investments | — |  |  | — |  |  | 102,652 |  |  | — |  |  | 102,652 |
Accounts receivable, less allowance for doubtful accounts | 133,559 |  |  | 190,585 |  |  | 17,310 |  |  | — |  |  | 341,454 |
Current deferred income tax assets | — |  |  | — |  |  | — |  |  | — |  |  | — |
Prepaid expenses and other current assets | 3,534 |  |  | 21,920 |  |  | 9,352 |  |  | (1,363 | ) |  | 33,443 |
Total current assets | 142,229 |  |  | 212,505 |  |  | 154,301 |  |  | (1,363 | ) |  | 507,672 |
Restricted Cash and Investments | 162 |  |  | 19,021 |  |  | 5,280 |  |  | — |  |  | 24,463 |
Property and Equipment, Net | 737,221 |  |  | 1,087,820 |  |  | 83,012 |  |  | — |  |  | 1,908,053 |
Contract Receivable | — |  |  | — |  |  | 388,729 |  |  | — |  |  | 388,729 |
Intercompany Receivable | 1,025,018 |  |  | 119,322 |  |  | 17,924 |  |  | (1,162,264 | ) |  | — |
Non-Current Deferred Income Tax Assets | 713 |  |  | 11,898 |  |  | 11,543 |  |  | — |  |  | 24,154 |
Goodwill | 79 |  |  | 614,941 |  |  | 437 |  |  | — |  |  | 615,457 |
Intangible Assets, Net | — |  |  | 208,209 |  |  | 761 |  |  | — |  |  | 208,970 |
Investment in Subsidiaries | 1,111,728 |  |  | 453,635 |  |  | 2,190 |  |  | (1,567,553 | ) |  | — |
Other Non-Current Assets | 18,153 |  |  | 105,703 |  |  | 20,984 |  |  | (79,943 | ) |  | 64,897 |
Total Assets | $ | 3,035,303 |  |  | $ | 2,833,054 |  |  | $ | 685,161 |  |  | $ | (2,811,123 | ) |  | $ | 3,742,395 |
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable | $ | 6,935 |  |  | $ | 47,247 |  |  | $ | 27,724 |  |  | $ | — |  |  | $ | 81,906 |
Accrued payroll and related taxes | — |  |  | 31,464 |  |  | 15,483 |  |  | — |  |  | 46,947 |
Accrued expenses and other current liabilities | 50,615 |  |  | 81,013 |  |  | 14,290 |  |  | (1,534 | ) |  | 144,384 |
Current portion of capital lease obligations, long-term debt and non-recourse debt | 3,000 |  |  | 1,581 |  |  | 11,057 |  |  | — |  |  | 15,638 |
Total current liabilities | 60,550 |  |  | 161,305 |  |  | 68,554 |  |  | (1,534 | ) |  | 288,875 |
Non-Current Deferred Income Tax Liabilities | — |  |  | — |  |  | — |  |  | — |  |  | — |
Intercompany Payable | 110,122 |  |  | 1,025,366 |  |  | 26,776 |  |  | (1,162,264 | ) |  | — |
Other Non-Current Liabilities | 4,247 |  |  | 142,555 |  |  | 25,051 |  |  | (79,772 | ) |  | 92,081 |
Capital Lease Obligations | — |  |  | 7,757 |  |  | — |  |  | — |  |  | 7,757 |
Long-Term Debt | 1,893,980 |  |  | — |  |  | — |  |  | — |  |  | 1,893,980 |
Non-Recourse Debt | — |  |  | — |  |  | 493,303 |  |  | — |  |  | 493,303 |
Commitments & Contingencies and Other |  |  |  |  |  |  |  |  |  |  |  |  |  |
Shareholders' Equity: |  |  |  |  |  |  |  |  |
The GEO Group, Inc. Shareholders' Equity | 966,404 |  |  | 1,496,071 |  |  | 71,482 |  |  | (1,567,553 | ) |  | 966,404 |
Noncontrolling Interests | — |  |  | — |  |  | (5 | ) |  | — |  |  | (5 | )
Total Shareholders’ Equity | 966,404 |  |  | 1,496,071 |  |  | 71,477 |  |  | (1,567,553 | ) |  | 966,399 |
Total Liabilities and Shareholders' Equity | $ | 3,035,303 |  |  | $ | 2,833,054 |  |  | $ | 685,161 |  |  | $ | (2,811,123 | ) |  | $ | 3,742,395 |
CONDENSED CONSOLIDATING BALANCE SHEET (dollars in thousands)
| As of December 31, 2015
| The GEO Group, Inc. |  | Combined Subsidiary Guarantors |  | Combined Non-Guarantor Subsidiaries |  | Eliminations |  | Consolidated
ASSETS
Cash and cash equivalents | $ | 37,077 |  |  | $ | — |  |  | $ | 22,561 |  |  | $ | — |  |  | $ | 59,638 |
Restricted cash and investments | — |  |  | — |  |  | 8,489 |  |  | — |  |  | 8,489 |
Accounts receivable, less allowance for doubtful accounts | 131,747 |  |  | 162,538 |  |  | 19,812 |  |  | — |  |  | 314,097 |
Current deferred income tax assets | — |  |  | 23,120 |  |  | 4,794 |  |  | — |  |  | 27,914 |
Prepaid expenses and other current assets | 1,190 |  |  | 17,917 |  |  | 10,310 |  |  | (1,209 | ) |  | 28,208 |
Total current assets | 170,014 |  |  | 203,575 |  |  | 65,966 |  |  | (1,209 | ) |  | 438,346 |
Restricted Cash and Investments | 138 |  |  | 16,386 |  |  | 3,712 |  |  | — |  |  | 20,236 |
Property and Equipment, Net | 746,478 |  |  | 1,088,417 |  |  | 81,491 |  |  | — |  |  | 1,916,386 |
Direct Finance Lease Receivable | — |  |  | — |  |  | 1,826 |  |  | — |  |  | 1,826 |
Contract Receivable | — |  |  | — |  |  | 174,141 |  |  |  |  | 174,141 |
Intercompany Receivable | 971,291 |  |  | 86,519 |  |  | — |  |  | (1,057,810 | ) |  | — |
Non-Current Deferred Income Tax Assets | 710 |  |  | (102 | ) |  | 6,791 |  |  | — |  |  | 7,399 |
Goodwill | 79 |  |  | 614,941 |  |  | 418 |  |  | — |  |  | 615,438 |
Intangible Assets, Net | — |  |  | 223,426 |  |  | 722 |  |  | — |  |  | 224,148 |
Investment in Subsidiaries | 1,106,546 |  |  | 453,636 |  |  | — |  |  | (1,560,182 | ) |  | — |
Other Non-Current Assets | 2,387 |  |  | 116,561 |  |  | 25,486 |  |  | (80,127 | ) |  | 64,307 |
Total Assets | $ | 2,997,643 |  |  | $ | 2,803,359 |  |  | $ | 360,553 |  |  | $ | (2,699,328 | ) |  | $ | 3,462,227 |
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable | $ | 9,731 |  |  | $ | 54,675 |  |  | $ | 13,117 |  |  | $ | — |  |  | $ | 77,523 |
Accrued payroll and related taxes | — |  |  | 35,516 |  |  | 12,961 |  |  | — |  |  | 48,477 |
Accrued expenses and other current liabilities | 43,043 |  |  | 78,510 |  |  | 15,139 |  |  | (1,209 | ) |  | 135,483 |
Current portion of capital lease obligations, long-term debt and non-recourse debt | 3,000 |  |  | 1,477 |  |  | 12,664 |  |  | — |  |  | 17,141 |
Total current liabilities | 55,774 |  |  | 170,178 |  |  | 53,881 |  |  | (1,209 | ) |  | 278,624 |
Non-Current Deferred Income Tax Liabilities |  |  |  | 11,120 |  |  | 351 |  |  | — |  |  | 11,471 |
Intercompany Payable | 76,427 |  |  | 967,048 |  |  | 14,335 |  |  | (1,057,810 | ) |  | — |
Other Non-Current Liabilities | 2,894 |  |  | 143,887 |  |  | 21,040 |  |  | (80,127 | ) |  | 87,694 |
Capital Lease Obligations | — |  |  | 8,693 |  |  | — |  |  | — |  |  | 8,693 |
Long-Term Debt | 1,855,810 |  |  | — |  |  | — |  |  | — |  |  | 1,855,810 |
Non-Recourse Debt | — |  |  | — |  |  | 213,098 |  |  | — |  |  | 213,098 |
Commitments & Contingencies and Other |  |  |  |  |  |  |  |  |
Shareholders' Equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |
The GEO Group, Inc. Shareholders' Equity | 1,006,738 |  |  | 1,502,433 |  |  | 57,749 |  |  | (1,560,182 | ) |  | 1,006,738 |
Noncontrolling Interests | — |  |  | — |  |  | 99 |  |  | — |  |  | 99 |
Total Shareholders’ Equity | 1,006,738 |  |  | 1,502,433 |  |  | 57,848 |  |  | (1,560,182 | ) |  | 1,006,837 |
Total Liabilities and Shareholders' Equity | $ | 2,997,643 |  |  | $ | 2,803,359 |  |  | $ | 360,553 |  |  | $ | (2,699,328 | ) |  | $ | 3,462,227 |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (dollars in thousands) (unaudited)
| For the Nine Months Ended September 30, 2016
| The GEO Group, Inc. |  | Combined Subsidiary Guarantors |  | Combined Non-Guarantor Subsidiaries |  | Consolidated
Cash Flow from Operating Activities: |  |  |  |  |  |  |
Net cash (used in) provided by operating activities | $ | 99,124 |  |  | $ | 57,187 |  |  | $ | (168,069 | ) |  | $ | (11,758 | )
Cash Flow from Investing Activities: |  |  |  |  |  |  |
Proceeds from sale of property and equipment | 68 |  |  | — |  |  | — |  |  | 68 |
Insurance proceeds - damaged property | 4,733 |  |  | — |  |  | — |  |  | 4,733 |
Change in restricted cash and investments | (24 | ) |  | (2,635 | ) |  | (95,057 | ) |  | (97,716 | )
Capital expenditures | (9,879 | ) |  | (54,552 | ) |  | (3,584 | ) |  | (68,015 | )
Net cash used in investing activities | (5,102 | ) |  | (57,187 | ) |  | (98,641 | ) |  | (160,930 | )
Cash Flow from Financing Activities: |  |  |  |  |  |  |
Proceeds from long-term debt | 813,077 |  |  | — |  |  | — |  |  | 813,077 |
Payments on long-term debt | (775,256 | ) |  | — |  |  | — |  |  | (775,256 | )
Payments on non-recourse debt | — |  |  | — |  |  | (1,878 | ) |  | (1,878 | )
Proceeds from non-recourse debt | — |  |  | — |  |  | 273,087 |  |  | 273,087 |
Taxes paid related to net share settlements of equity awards | (2,336 | ) |  | — |  |  | — |  |  | (2,336 | )
Proceeds from issuance of common stock in connection with ESPP | — |  |  |  |  | 338 |  |  | 338 |
Debt issuance costs | (16,980 | ) |  | — |  |  | (3,510 | ) |  | (20,490 | )
Tax deficiency related to equity compensation | (844 | ) |  | — |  |  | — |  |  | (844 | )
Proceeds from stock options exercised | 2,367 |  |  | — |  |  | — |  |  | 2,367 |
Cash dividends paid | (145,991 | ) |  |  |  |  | — |  |  | (145,991 | )
Net cash (used in) provided by financing activities | (125,963 | ) |  | — |  |  | 268,037 |  |  | 142,074 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | — |  |  | — |  |  | 1,099 |  |  | 1,099 |
Net (Decrease) Increase in Cash and Cash Equivalents | (31,941 | ) |  | — |  |  | 2,426 |  |  | (29,515 | )
Cash and Cash Equivalents, beginning of period | 37,077 |  |  | — |  |  | 22,561 |  |  | 59,638 |
Cash and Cash Equivalents, end of period | $ | 5,136 |  |  | $ | — |  |  | $ | 24,987 |  |  | $ | 30,123 |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (dollars in thousands) (unaudited)
| For the Nine Months Ended September 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 | $ | 72,063 |  |  | $ | 74,464 |  |  | $ | (35,363 | ) |  | $ | 111,164 |
Cash Flow from Investing Activities: |  |  |  |  |  |  |
Acquisition of SoberLink, cash consideration |  |  |  | (24,402 | ) |  |  |  |  | (24,402 | )
Proceeds from sale of property and equipment | — |  |  | 49 |  |  | — |  |  | 49 |
Insurance proceeds - damaged property | — |  |  | 1,270 |  |  | — |  |  | 1,270 |
Acquisition of LCS, net of cash acquired | (307,403 | ) |  |  |  |  | — |  |  | (307,403 | )
Change in restricted cash and investments | 101 |  |  | (1,957 | ) |  | (9,280 | ) |  | (11,136 | )
Capital expenditures | (51,084 | ) |  | (47,833 | ) |  | (1,927 | ) |  | (100,844 | )
Net cash used in investing activities | (358,386 | ) |  | (72,873 | ) |  | (11,207 | ) |  | (442,466 | )
Cash Flow from Financing Activities: |  |  |  |  |  |  |
Taxes paid related to net share settlements of equity awards | (2,748 | ) |  | — |  |  | — |  |  | (2,748 | )
Proceeds from long-term debt | 642,000 |  |  | — |  |  | — |  |  | 642,000 |
Payments on long-term debt | (222,675 | ) |  |  |  |  | — |  |  | (222,675 | )
Payments on non-recourse debt | — |  |  | — |  |  | (6,366 | ) |  | (6,366 | )
Proceeds from non-recourse debt | — |  |  | — |  |  | 70,117 |  |  | 70,117 |
Proceeds from issuance of common stock in connection with ESPP | 321 |  |  | — |  |  | — |  |  | 321 |
Debt issuance costs |  |  |  | — |  |  | (5,217 | ) |  | (5,217 | )
Tax benefit related to equity compensation | 1,252 |  |  | — |  |  | — |  |  | 1,252 |
Proceeds from stock options exercised | 2,513 |  |  | — |  |  | — |  |  | 2,513 |
Cash dividends paid | (138,454 | ) |  | — |  |  | — |  |  | (138,454 | )
Net cash provided by financing activities | 282,209 |  |  | — |  |  | 58,534 |  |  | 340,743 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | — |  |  | — |  |  | (3,647 | ) |  | (3,647 | )
Net Increase (Decrease) in Cash and Cash Equivalents | (4,114 | ) |  | 1,591 |  |  | 8,317 |  |  | 5,794 |
Cash and Cash Equivalents, beginning of period | 18,492 |  |  | 782 |  |  | 22,063 |  |  | 41,337 |
Cash and Cash Equivalents, end of period | $ | 14,378 |  |  | $ | 2,373 |  |  | $ | 30,380 |  |  | $ | 47,131 |

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- Definition The entire disclosure for condensed financial statements. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=18733093&loc=d3e5614-111684 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 10 -Paragraph f -Article 3 + Details
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