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Condensed Consolidating Financial Information | 9 Months Ended
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Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Condensed Consolidating Financial Information | CONDENSED CONSOLIDATING FINANCIAL INFORMATION As of September 30, 2017, 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, 2017
| The GEO Group, Inc. |  | Combined Subsidiary Guarantors |  | Combined Non-Guarantor Subsidiaries |  | Eliminations |  | Consolidated
Revenues | $ | 171,553 |  |  | $ | 464,140 |  |  | $ | 69,698 |  |  | $ | (138,632 | ) |  | $ | 566,759 |
Operating expenses | 139,165 |  |  | 364,834 |  |  | 57,767 |  |  | (138,632 | ) |  | 423,134 |
Depreciation and amortization | 6,104 |  |  | 24,623 |  |  | 922 |  |  | — |  |  | 31,649 |
General and administrative expenses | 14,699 |  |  | 28,066 |  |  | 6,309 |  |  | — |  |  | 49,074 |
Operating income | 11,585 |  |  | 46,617 |  |  | 4,700 |  |  | — |  |  | 62,902 |
Interest income | 2,688 |  |  | 1,629 |  |  | 14,871 |  |  | (4,540 | ) |  | 14,648 |
Interest expense | (18,148 | ) |  | (13,093 | ) |  | (12,018 | ) |  | 4,540 |  |  | (38,719 | )
Income (loss) before income taxes and equity in earnings of affiliates | (3,875 | ) |  | 35,153 |  |  | 7,553 |  |  | — |  |  | 38,831 |
Income tax provision | 147 |  |  | 811 |  |  | 762 |  |  | — |  |  | 1,720 |
Equity in earnings of affiliates, net of income tax provision | — |  |  | — |  |  | 1,342 |  |  | — |  |  | 1,342 |
Income (loss) before equity in income of consolidated subsidiaries | (4,022 | ) |  | 34,342 |  |  | 8,133 |  |  | — |  |  | 38,453 |
Income from consolidated subsidiaries, net of income tax provision | 42,475 |  |  | — |  |  | — |  |  | (42,475 | ) |  | — |
Net income | 38,453 |  |  | 34,342 |  |  | 8,133 |  |  | (42,475 | ) |  | 38,453 |
Net loss attributable to noncontrolling interests | — |  |  | — |  |  | 36 |  |  | — |  |  | 36 |
Net income attributable to The GEO Group, Inc. | $ | 38,453 |  |  | $ | 34,342 |  |  | $ | 8,169 |  |  | $ | (42,475 | ) |  | $ | 38,489 |
Net income | $ | 38,453 |  |  | $ | 34,342 |  |  | $ | 8,133 |  |  | $ | (42,475 | ) |  | $ | 38,453 |
Other comprehensive income, net of tax | — |  |  | 64 |  |  | 1,561 |  |  | — |  |  | 1,625 |
Total comprehensive income | $ | 38,453 |  |  | $ | 34,406 |  |  | $ | 9,694 |  |  | $ | (42,475 | ) |  | $ | 40,078 |
Comprehensive loss attributable to noncontrolling interests | — |  |  | — |  |  | 34 |  |  | — |  |  | 34 |
Comprehensive income attributable to The GEO Group, Inc. | $ | 38,453 |  |  | $ | 34,406 |  |  | $ | 9,728 |  |  | $ | (42,475 | ) |  | $ | 40,112 |
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 | )
Income (loss) before income taxes and equity in earnings of affiliates | (453 | ) |  | 43,535 |  |  | 3,869 |  |  | — |  |  | 46,951 |
Income tax provision (benefit) | (9 | ) |  | 4,032 |  |  | 947 |  |  | — |  |  | 4,970 |
Equity in earnings of affiliates, net of income tax provision | — |  |  | — |  |  | 1,693 |  |  | — |  |  | 1,693 |
Income (loss) 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 |
| For the Nine Months Ended September 30, 2017
| The GEO Group, Inc. |  | Combined Subsidiary Guarantors |  | Combined Non-Guarantor Subsidiaries |  | Eliminations |  | Consolidated
Revenues | $ | 520,986 |  |  | $ | 1,342,620 |  |  | $ | 250,618 |  |  | $ | (419,781 | ) |  | $ | 1,694,443 |
Operating expenses | 406,576 |  |  | 1,076,232 |  |  | 213,259 |  |  | (419,781 | ) |  | 1,276,286 |
Depreciation and amortization | 18,319 |  |  | 71,404 |  |  | 2,741 |  |  | — |  |  | 92,464 |
General and administrative expenses | 43,939 |  |  | 78,479 |  |  | 21,448 |  |  | — |  |  | 143,866 |
Operating income | 52,152 |  |  | 116,505 |  |  | 13,170 |  |  | — |  |  | 181,827 |
Interest income | 12,793 |  |  | 2,858 |  |  | 39,175 |  |  | (15,855 | ) |  | 38,971 |
Interest expense | (51,391 | ) |  | (41,353 | ) |  | (32,813 | ) |  | 15,855 |  |  | (109,702 | )
Income before income taxes and equity in earnings of affiliates | 13,554 |  |  | 78,010 |  |  | 19,532 |  |  | — |  |  | 111,096 |
Income tax provision | 441 |  |  | 3,058 |  |  | 2,091 |  |  | — |  |  | 5,590 |
Equity in earnings of affiliates, net of income tax provision | — |  |  | — |  |  | 4,255 |  |  | — |  |  | 4,255 |
Income before equity in income of consolidated subsidiaries | 13,113 |  |  | 74,952 |  |  | 21,696 |  |  | — |  |  | 109,761 |
Income from consolidated subsidiaries, net of income tax provision | 96,648 |  |  | — |  |  | — |  |  | (96,648 | ) |  | — |
Net income | 109,761 |  |  | 74,952 |  |  | 21,696 |  |  | (96,648 | ) |  | 109,761 |
Net loss attributable to noncontrolling interests | — |  |  | — |  |  | 123 |  |  | — |  |  | 123 |
Net income attributable to The GEO Group, Inc. | $ | 109,761 |  |  | $ | 74,952 |  |  | $ | 21,819 |  |  | $ | (96,648 | ) |  | $ | 109,884 |
Net income | $ | 109,761 |  |  | $ | 74,952 |  |  | $ | 21,696 |  |  | $ | (96,648 | ) |  | $ | 109,761 |
Other comprehensive income, net of tax | — |  |  | 175 |  |  | 4,586 |  |  | — |  |  | 4,761 |
Total comprehensive income | $ | 109,761 |  |  | $ | 75,127 |  |  | $ | 26,282 |  |  | $ | (96,648 | ) |  | $ | 114,522 |
Comprehensive loss attributable to noncontrolling interests | — |  |  | — |  |  | 119 |  |  | — |  |  | 119 |
Comprehensive income attributable to The GEO Group, Inc. | $ | 109,761 |  |  | $ | 75,127 |  |  | $ | 26,401 |  |  | $ | (96,648 | ) |  | $ | 114,641 |
| 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 early 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 provision (benefit) | (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 BALANCE SHEET (dollars in thousands) (unaudited)
| As of September 30, 2017
| The GEO Group, Inc. |  | Combined Subsidiary Guarantors |  | Combined Non-Guarantor Subsidiaries |  | Eliminations |  | Consolidated
ASSETS
Cash and cash equivalents | $ | 6,191 |  |  | $ | 13,853 |  |  | $ | 31,482 |  |  | $ | — |  |  | $ | 51,526 |
Restricted cash and investments | — |  |  | — |  |  | 12,452 |  |  | — |  |  | 12,452 |
Accounts receivable, less allowance for doubtful accounts | 129,730 |  |  | 241,031 |  |  | 16,137 |  |  | — |  |  | 386,898 |
Contract receivable, current portion | — |  |  | — |  |  | 243,531 |  |  | — |  |  | 243,531 |
Prepaid expenses and other current assets | 2,921 |  |  | 28,033 |  |  | 5,119 |  |  | — |  |  | 36,073 |
Total current assets | 138,842 |  |  | 282,917 |  |  | 308,721 |  |  | — |  |  | 730,480 |
Restricted Cash and Investments | — |  |  | 24,387 |  |  | 6,645 |  |  | — |  |  | 31,032 |
Property and Equipment, Net | 751,374 |  |  | 1,213,614 |  |  | 90,994 |  |  | — |  |  | 2,055,982 |
Non-Current Contract Receivable | — |  |  | — |  |  | 405,780 |  |  | — |  |  | 405,780 |
Intercompany Receivable | 1,128,469 |  |  | 104,226 |  |  | 24,654 |  |  | (1,257,349 | ) |  | — |
Non-Current Deferred Income Tax Assets | 763 |  |  | 19,254 |  |  | 11,814 |  |  | — |  |  | 31,831 |
Goodwill | 79 |  |  | 781,444 |  |  | 449 |  |  | — |  |  | 781,972 |
Intangible Assets, Net | — |  |  | 261,053 |  |  | 737 |  |  | — |  |  | 261,790 |
Investment in Subsidiaries | 1,332,393 |  |  | 456,075 |  |  | 2,191 |  |  | (1,790,659 | ) |  | — |
Other Non-Current Assets | 12,714 |  |  | 118,579 |  |  | 18,708 |  |  | (79,527 | ) |  | 70,474 |
Total Assets | $ | 3,364,634 |  |  | $ | 3,261,549 |  |  | $ | 870,693 |  |  | $ | (3,127,535 | ) |  | $ | 4,369,341 |
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable | $ | 8,573 |  |  | $ | 66,848 |  |  | $ | 16,196 |  |  | $ | — |  |  | $ | 91,617 |
Accrued payroll and related taxes | — |  |  | 30,190 |  |  | 18,590 |  |  | — |  |  | 48,780 |
Accrued expenses and other current liabilities | 48,090 |  |  | 106,056 |  |  | 20,175 |  |  | — |  |  | 174,321 |
Current portion of capital lease obligations, long-term debt and non-recourse debt | 8,000 |  |  | 1,815 |  |  | 250,231 |  |  | — |  |  | 260,046 |
Total current liabilities | 64,663 |  |  | 204,909 |  |  | 305,192 |  |  | — |  |  | 574,764 |
Intercompany Payable | 14,535 |  |  | 1,211,260 |  |  | 31,554 |  |  | (1,257,349 | ) |  | — |
Other Non-Current Liabilities | 4,120 |  |  | 151,405 |  |  | 16,806 |  |  | (79,527 | ) |  | 92,804 |
Capital Lease Obligations | — |  |  | 6,412 |  |  | — |  |  | — |  |  | 6,412 |
Long-Term Debt | 2,067,008 |  |  | — |  |  | 90,874 |  |  | — |  |  | 2,157,882 |
Non-Recourse Debt | — |  |  | — |  |  | 323,387 |  |  | — |  |  | 323,387 |
Commitments & Contingencies and Other |  |  |  |  |  |  |  |  |  |  |  |  |  |
Shareholders' Equity: |  |  |  |  |  |  |  |  |
The GEO Group, Inc. Shareholders' Equity | 1,214,308 |  |  | 1,687,563 |  |  | 103,098 |  |  | (1,790,659 | ) |  | 1,214,310 |
Noncontrolling Interests | — |  |  | — |  |  | (218 | ) |  | — |  |  | (218 | )
Total Shareholders’ Equity | 1,214,308 |  |  | 1,687,563 |  |  | 102,880 |  |  | (1,790,659 | ) |  | 1,214,092 |
Total Liabilities and Shareholders' Equity | $ | 3,364,634 |  |  | $ | 3,261,549 |  |  | $ | 870,693 |  |  | $ | (3,127,535 | ) |  | $ | 4,369,341 |
CONDENSED CONSOLIDATING BALANCE SHEET (dollars in thousands)
| As of December 31, 2016
| The GEO Group, Inc. |  | Combined Subsidiary Guarantors |  | Combined Non-Guarantor Subsidiaries |  | Eliminations |  | Consolidated
ASSETS
Cash and cash equivalents | $ | 45,566 |  |  | $ | 842 |  |  | $ | 21,630 |  |  | $ | — |  |  | $ | 68,038 |
Restricted cash and investments | — |  |  | — |  |  | 17,133 |  |  | — |  |  | 17,133 |
Accounts receivable, less allowance for doubtful accounts | 139,571 |  |  | 200,239 |  |  | 16,445 |  |  | — |  |  | 356,255 |
Contract receivable, current portion | — |  |  | — |  |  | 224,033 |  |  | — |  |  | 224,033 |
Prepaid expenses and other current assets | 677 |  |  | 24,096 |  |  | 7,437 |  |  | — |  |  | 32,210 |
Total current assets | 185,814 |  |  | 225,177 |  |  | 286,678 |  |  | — |  |  | 697,669 |
Restricted Cash and Investments | 170 |  |  | 19,742 |  |  | 936 |  |  | — |  |  | 20,848 |
Property and Equipment, Net | 735,104 |  |  | 1,078,220 |  |  | 83,917 |  |  | — |  |  | 1,897,241 |
Non-Current Contract Receivable | — |  |  | — |  |  | 219,783 |  |  |  |  | 219,783 |
Intercompany Receivable | 918,527 |  |  | 141,987 |  |  | 27,290 |  |  | (1,087,804 | ) |  | — |
Non-Current Deferred Income Tax Assets | 764 |  |  | 17,918 |  |  | 11,357 |  |  | — |  |  | 30,039 |
Goodwill | 79 |  |  | 614,941 |  |  | 413 |  |  | — |  |  | 615,433 |
Intangible Assets, Net | — |  |  | 203,138 |  |  | 746 |  |  | — |  |  | 203,884 |
Investment in Subsidiaries | 1,238,772 |  |  | 453,635 |  |  | 2,190 |  |  | (1,694,597 | ) |  | — |
Other Non-Current Assets | 15,011 |  |  | 108,434 |  |  | 20,933 |  |  | (79,866 | ) |  | 64,512 |
Total Assets | $ | 3,094,241 |  |  | $ | 2,863,192 |  |  | $ | 654,243 |  |  | $ | (2,862,267 | ) |  | $ | 3,749,409 |
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable | $ | 8,402 |  |  | $ | 50,200 |  |  | $ | 21,035 |  |  | $ | — |  |  | $ | 79,637 |
Accrued payroll and related taxes | — |  |  | 41,230 |  |  | 14,030 |  |  | — |  |  | 55,260 |
Accrued expenses and other current liabilities | 36,792 |  |  | 83,906 |  |  | 10,398 |  |  | — |  |  | 131,096 |
Current portion of capital lease obligations, long-term debt and non-recourse debt | 3,000 |  |  | 1,700 |  |  | 233,365 |  |  | — |  |  | 238,065 |
Total current liabilities | 48,194 |  |  | 177,036 |  |  | 278,828 |  |  | — |  |  | 504,058 |
Intercompany Payable | 133,039 |  |  | 920,825 |  |  | 33,940 |  |  | (1,087,804 | ) |  | — |
Other Non-Current Liabilities | 2,487 |  |  | 144,383 |  |  | 21,652 |  |  | (79,866 | ) |  | 88,656 |
Capital Lease Obligations | — |  |  | 7,431 |  |  | — |  |  | — |  |  | 7,431 |
Long-Term Debt | 1,935,465 |  |  | — |  |  | — |  |  | — |  |  | 1,935,465 |
Non-Recourse Debt | — |  |  | — |  |  | 238,842 |  |  | — |  |  | 238,842 |
Commitments & Contingencies and Other |  |  |  |  |  |  |  |  |
Shareholders' Equity: |  |  |  |  |  |  |  |  |
The GEO Group, Inc. Shareholders' Equity | 975,056 |  |  | 1,613,517 |  |  | 81,080 |  |  | (1,694,597 | ) |  | 975,056 |
Noncontrolling Interests | — |  |  | — |  |  | (99 | ) |  | — |  |  | (99 | )
Total Shareholders’ Equity | 975,056 |  |  | 1,613,517 |  |  | 80,981 |  |  | (1,694,597 | ) |  | 974,957 |
Total Liabilities and Shareholders' Equity | $ | 3,094,241 |  |  | $ | 2,863,192 |  |  | $ | 654,243 |  |  | $ | (2,862,267 | ) |  | $ | 3,749,409 |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (dollars in thousands) (unaudited)
| For the Nine Months Ended September 30, 2017
| 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 | $ | 15,473 |  |  | $ | 79,088 |  |  | $ | (36,733 | ) |  | $ | 57,828 |
Cash Flow from Investing Activities: |  |  |  |  |  |  |
Acquisition of CEC, net of cash acquired | (353,555 | ) |  | — |  |  | — |  |  | (353,555 | )
Proceeds from sale of property and equipment | 845 |  |  | — |  |  | 11 |  |  | 856 |
Insurance proceeds - damaged property | 86 |  |  | — |  |  | — |  |  | 86 |
Change in restricted cash and investments | — |  |  | (4,645 | ) |  | (175 | ) |  | (4,820 | )
Capital expenditures | (34,679 | ) |  | (61,432 | ) |  | (8,019 | ) |  | (104,130 | )
Net cash used in investing activities | (387,303 | ) |  | (66,077 | ) |  | (8,183 | ) |  | (461,563 | )
Cash Flow from Financing Activities: |  |  |  |  |  |  |
Proceeds from long-term debt | 1,324,865 |  |  | — |  |  | — |  |  | 1,324,865 |
Payments on long-term debt | (1,093,088 | ) |  | — |  |  | — |  |  | (1,093,088 | )
Payments on non-recourse debt | — |  |  | — |  |  | (68,887 | ) |  | (68,887 | )
Proceeds from non-recourse debt | — |  |  | — |  |  | 123,785 |  |  | 123,785 |
Taxes paid related to net share settlements of equity awards | (4,122 | ) |  | — |  |  | — |  |  | (4,122 | )
Proceeds from issuance of common stock in connection with ESPP | — |  |  | — |  |  | 382 |  |  | 382 |
Proceeds from issuance of common stock under prospectus supplement | 275,867 |  |  | — |  |  |  |  | 275,867 |
Debt issuance costs | (8,701 | ) |  | — |  |  | (769 | ) |  | (9,470 | )
Proceeds from stock options exercised | 6,786 |  |  | — |  |  | — |  |  | 6,786 |
Dividends paid | (169,152 | ) |  |  |  |  | — |  |  | (169,152 | )
Net cash provided by financing activities | 332,455 |  |  | — |  |  | 54,511 |  |  | 386,966 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | — |  |  | — |  |  | 257 |  |  | 257 |
Net (Decrease) Increase in Cash and Cash Equivalents | (39,375 | ) |  | 13,011 |  |  | 9,852 |  |  | (16,512 | )
Cash and Cash Equivalents, beginning of period | 45,566 |  |  | 842 |  |  | 21,630 |  |  | 68,038 |
Cash and Cash Equivalents, end of period | $ | 6,191 |  |  | $ | 13,853 |  |  | $ | 31,482 |  |  | $ | 51,526 |
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: |  |  |  |  |  |  |
Taxes paid related to net share settlements of equity awards | (2,336 | ) |  | — |  |  | — |  |  | (2,336 | )
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 |
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 |
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 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 |

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