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Condensed Consolidating Financial Information (Tables) | 3 Months Ended
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Mar. 31, 2018
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 March 31, 2018
| The GEO Group, Inc. |  | Combined Subsidiary Guarantors |  | Combined Non-Guarantor Subsidiaries |  | Eliminations |  | Consolidated
Revenues | $ | 195,630 |  |  | $ | 458,728 |  |  | $ | 68,806 |  |  | $ | (158,247 | ) |  | $ | 564,917 |
Operating expenses | 151,822 |  |  | 377,966 |  |  | 55,168 |  |  | (158,247 | ) |  | 426,709 |
Depreciation and amortization | 6,460 |  |  | 24,443 |  |  | 1,023 |  |  | — |  |  | 31,926 |
General and administrative expenses | 14,341 |  |  | 22,447 |  |  | 5,044 |  |  | — |  |  | 41,832 |
Operating income | 23,007 |  |  | 33,872 |  |  | 7,571 |  |  | — |  |  | 64,450 |
Interest income | 4,177 |  |  | 1,417 |  |  | 9,384 |  |  | (5,879 | ) |  | 9,099 |
Interest expense | (18,622 | ) |  | (14,460 | ) |  | (8,666 | ) |  | 5,879 |  |  | (35,869 | )
Income before income taxes and equity in earnings of affiliates | 8,562 |  |  | 20,829 |  |  | 8,289 |  |  | — |  |  | 37,680 |
Income tax provision | 177 |  |  | 2,300 |  |  | 2,278 |  |  | — |  |  | 4,755 |
Equity in earnings of affiliates, net of income tax provision | — |  |  | — |  |  | 1,995 |  |  | — |  |  | 1,995 |
Income before equity in income of consolidated subsidiaries | 8,385 |  |  | 18,529 |  |  | 8,006 |  |  | — |  |  | 34,920 |
Income from consolidated subsidiaries, net of income tax provision | 26,535 |  |  | — |  |  | — |  |  | (26,535 | ) |  | — |
Net income | 34,920 |  |  | 18,529 |  |  | 8,006 |  |  | (26,535 | ) |  | 34,920 |
Net loss attributable to noncontrolling interests | — |  |  | — |  |  | 67 |  |  | — |  |  | 67 |
Net income attributable to The GEO Group, Inc. | $ | 34,920 |  |  | $ | 18,529 |  |  | $ | 8,073 |  |  | $ | (26,535 | ) |  | $ | 34,987 |
Net income | $ | 34,920 |  |  | $ | 18,529 |  |  | $ | 8,006 |  |  | $ | (26,535 | ) |  | $ | 34,920 |
Other comprehensive income, net of tax | — |  |  | 105 |  |  | 1,257 |  |  | — |  |  | 1,362 |
Total comprehensive income | $ | 34,920 |  |  | $ | 18,634 |  |  | $ | 9,263 |  |  | $ | (26,535 | ) |  | $ | 36,282 |
Comprehensive loss attributable to noncontrolling interests | — |  |  | — |  |  | 59 |  |  | — |  |  | 59 |
Comprehensive income attributable to The GEO Group, Inc. | $ | 34,920 |  |  | $ | 18,634 |  |  | $ | 9,322 |  |  | $ | (26,535 | ) |  | $ | 36,341 |
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (dollars in thousands) (unaudited)
| For the Three Months Ended March 31, 2017
| The GEO Group, Inc. |  | Combined Subsidiary Guarantors |  | Combined Non-Guarantor Subsidiaries |  | Eliminations |  | Consolidated
Revenues | $ | 178,173 |  |  | $ | 413,194 |  |  | $ | 101,484 |  |  | $ | (142,237 | ) |  | $ | 550,614 |
Operating expenses | 132,167 |  |  | 337,999 |  |  | 86,778 |  |  | (142,237 | ) |  | 414,707 |
Depreciation and amortization | 6,150 |  |  | 21,875 |  |  | 924 |  |  | — |  |  | 28,949 |
General and administrative expenses | 13,667 |  |  | 20,981 |  |  | 7,938 |  |  | — |  |  | 42,586 |
Operating income | 26,189 |  |  | 32,339 |  |  | 5,844 |  |  | — |  |  | 64,372 |
Interest income | 3,354 |  |  | 820 |  |  | 11,828 |  |  | (4,025 | ) |  | 11,977 |
Interest expense | (15,792 | ) |  | (12,485 | ) |  | (10,748 | ) |  | 4,025 |  |  | (35,000 | )
Income before income taxes and equity in earnings of affiliates | 13,751 |  |  | 20,674 |  |  | 6,924 |  |  | — |  |  | 41,349 |
Income tax provision | 147 |  |  | 1,453 |  |  | 870 |  |  | — |  |  | 2,470 |
Equity in earnings of affiliates, net of income tax provision | — |  |  | — |  |  | 1,487 |  |  | — |  |  | 1,487 |
Income before equity in income of consolidated subsidiaries | 13,604 |  |  | 19,221 |  |  | 7,541 |  |  | — |  |  | 40,366 |
Income from consolidated subsidiaries, net of income tax provision | 26,762 |  |  | — |  |  | — |  |  | (26,762 | ) |  | — |
Net income | 40,366 |  |  | 19,221 |  |  | 7,541 |  |  | (26,762 | ) |  | 40,366 |
Net loss attributable to noncontrolling interests | — |  |  | — |  |  | 37 |  |  | — |  |  | 37 |
Net income attributable to The GEO Group, Inc. | $ | 40,366 |  |  | $ | 19,221 |  |  | $ | 7,578 |  |  | $ | (26,762 | ) |  | $ | 40,403 |
Net income | $ | 40,366 |  |  | $ | 19,221 |  |  | $ | 7,541 |  |  | $ | (26,762 | ) |  | $ | 40,366 |
Other comprehensive income, net of tax | — |  |  | 47 |  |  | 1,213 |  |  | — |  |  | 1,260 |
Total comprehensive income | $ | 40,366 |  |  | $ | 19,268 |  |  | $ | 8,754 |  |  | $ | (26,762 | ) |  | $ | 41,626 |
Comprehensive loss attributable to noncontrolling interests | — |  |  | — |  |  | 35 |  |  | — |  |  | 35 |
Comprehensive income attributable to The GEO Group, Inc. | $ | 40,366 |  |  | $ | 19,268 |  |  | $ | 8,789 |  |  | $ | (26,762 | ) |  | $ | 41,661 |
CONDENSED CONSOLIDATING BALANCE SHEET | CONDENSED CONSOLIDATING BALANCE SHEET (dollars in thousands) (unaudited)
| As of March 31, 2018
| The GEO Group, Inc. |  | Combined Subsidiary Guarantors |  | Combined Non-Guarantor Subsidiaries |  | Eliminations |  | Consolidated
ASSETS
Cash and cash equivalents | $ | 10,396 |  |  | $ | 13,307 |  |  | $ | 25,532 |  |  | $ | — |  |  | $ | 49,235 |
Restricted cash and cash equivalents | 6,422 |  |  | — |  |  | 50,466 |  |  | — |  |  | 56,888 |
Accounts receivable, less allowance for doubtful accounts | 136,290 |  |  | 208,114 |  |  | 40,233 |  |  | — |  |  | 384,637 |
Contract receivable, current portion | — |  |  | — |  |  | 14,285 |  |  | — |  |  | 14,285 |
Prepaid expenses and other current assets | 2,036 |  |  | 19,830 |  |  | 9,311 |  |  | — |  |  | 31,177 |
Total current assets | 155,144 |  |  | 241,251 |  |  | 139,827 |  |  | — |  |  | 536,222 |
Restricted Cash and Investments | — |  |  | 21,669 |  |  | 2,725 |  |  | — |  |  | 24,394 |
Property and Equipment, Net | 803,053 |  |  | 1,208,315 |  |  | 90,643 |  |  | — |  |  | 2,102,011 |
Non-Current Contract Receivable | — |  |  | — |  |  | 407,938 |  |  | — |  |  | 407,938 |
Intercompany Receivable | 988,910 |  |  | 120,288 |  |  | 26,598 |  |  | (1,135,796 | ) |  | — |
Non-Current Deferred Income Tax Assets | 863 |  |  | 23,913 |  |  | 1,501 |  |  | — |  |  | 26,277 |
Goodwill | — |  |  | 775,955 |  |  | 440 |  |  | — |  |  | 776,395 |
Intangible Assets, Net | — |  |  | 248,469 |  |  | 847 |  |  | — |  |  | 249,316 |
Investment in Subsidiaries | 1,514,148 |  |  | 458,228 |  |  | 2,190 |  |  | (1,974,566 | ) |  | — |
Other Non-Current Assets | 10,237 |  |  | 112,458 |  |  | 27,289 |  |  | (79,228 | ) |  | 70,756 |
Total Assets | $ | 3,472,355 |  |  | $ | 3,210,546 |  |  | $ | 699,998 |  |  | $ | (3,189,590 | ) |  | $ | 4,193,309 |
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable | $ | 14,592 |  |  | $ | 63,564 |  |  | $ | 6,154 |  |  | $ | — |  |  | $ | 84,310 |
Accrued payroll and related taxes | — |  |  | 38,308 |  |  | 19,610 |  |  | — |  |  | 57,918 |
Accrued expenses and other current liabilities | 46,744 |  |  | 106,129 |  |  | 28,262 |  |  | — |  |  | 181,135 |
Current portion of capital lease obligations, long-term debt and non-recourse debt | 8,000 |  |  | 1,902 |  |  | 15,287 |  |  | — |  |  | 25,189 |
Total current liabilities | 69,336 |  |  | 209,903 |  |  | 69,313 |  |  | — |  |  | 348,552 |
Non-Current Deferred Income Tax Liabilities | — |  |  | — |  |  | 8,757 |  |  | — |  |  | 8,757 |
Intercompany Payable | 111,828 |  |  | 988,221 |  |  | 35,747 |  |  | (1,135,796 | ) |  | — |
Other Non-Current Liabilities | 1,336 |  |  | 156,465 |  |  | 13,713 |  |  | (79,228 | ) |  | 92,286 |
Capital Lease Obligations | — |  |  | 5,698 |  |  | — |  |  | — |  |  | 5,698 |
Long-Term Debt | 2,150,902 |  |  | — |  |  | 89,155 |  |  | — |  |  | 2,240,057 |
Non-Recourse Debt | — |  |  | — |  |  | 359,387 |  |  | — |  |  | 359,387 |
Commitments & Contingencies and Other |  |  |  |  |  |  |  |  |  |  |  |  |  |
Shareholders' Equity: |  |  |  |  |  |  |  |  |
The GEO Group, Inc. Shareholders' Equity | 1,138,953 |  |  | 1,850,259 |  |  | 124,307 |  |  | (1,974,566 | ) |  | 1,138,953 |
Noncontrolling Interests | — |  |  | — |  |  | (381 | ) |  | — |  |  | (381 | )
Total Shareholders’ Equity | 1,138,953 |  |  | 1,850,259 |  |  | 123,926 |  |  | (1,974,566 | ) |  | 1,138,572 |
Total Liabilities and Shareholders' Equity | $ | 3,472,355 |  |  | $ | 3,210,546 |  |  | $ | 699,998 |  |  | $ | (3,189,590 | ) |  | $ | 4,193,309 |
CONDENSED CONSOLIDATING BALANCE SHEET (dollars in thousands)
| As of December 31, 2017
| The GEO Group, Inc. |  | Combined Subsidiary Guarantors |  | Combined Non-Guarantor Subsidiaries |  | Eliminations |  | Consolidated
ASSETS
Cash and cash equivalents | $ | 54,666 |  |  | $ | — |  |  | $ | 26,711 |  |  | $ | — |  |  | $ | 81,377 |
Restricted cash and cash equivalents | — |  |  | — |  |  | 44,932 |  |  | — |  |  | 44,932 |
Accounts receivable, less allowance for doubtful accounts | 130,354 |  |  | 225,029 |  |  | 34,533 |  |  | — |  |  | 389,916 |
Contract receivable, current portion | — |  |  | — |  |  | 18,142 |  |  | — |  |  | 18,142 |
Prepaid expenses and other current assets | 2,589 |  |  | 24,163 |  |  | 18,590 |  |  | — |  |  | 45,342 |
Total current assets | 187,609 |  |  | 249,192 |  |  | 142,908 |  |  | — |  |  | 579,709 |
Restricted Cash and Investments | — |  |  | 25,715 |  |  | 2,284 |  |  | — |  |  | 27,999 |
Property and Equipment, Net | 777,404 |  |  | 1,209,816 |  |  | 90,903 |  |  | — |  |  | 2,078,123 |
Assets Held for Sale | — |  |  | 3,915 |  |  | — |  |  | — |  |  | 3,915 |
Non-Current Contract Receivable | — |  |  | — |  |  | 404,309 |  |  |  |  | 404,309 |
Intercompany Receivable | 1,130,189 |  |  | 88,534 |  |  | 28,218 |  |  | (1,246,941 | ) |  | — |
Non-Current Deferred Income Tax Assets | 863 |  |  | 23,913 |  |  | 1,501 |  |  | — |  |  | 26,277 |
Goodwill | — |  |  | 778,504 |  |  | 447 |  |  | — |  |  | 778,951 |
Intangible Assets, Net | — |  |  | 254,531 |  |  | 808 |  |  | — |  |  | 255,339 |
Investment in Subsidiaries | 1,336,665 |  |  | 456,076 |  |  | 2,190 |  |  | (1,794,931 | ) |  | — |
Other Non-Current Assets | 11,141 |  |  | 115,330 |  |  | 25,210 |  |  | (79,395 | ) |  | 72,286 |
Total Assets | $ | 3,443,871 |  |  | $ | 3,205,526 |  |  | $ | 698,778 |  |  | $ | (3,121,267 | ) |  | $ | 4,226,908 |
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable | $ | 20,643 |  |  | $ | 65,475 |  |  | $ | 6,469 |  |  | $ | — |  |  | $ | 92,587 |
Accrued payroll and related taxes | — |  |  | 51,780 |  |  | 19,952 |  |  | — |  |  | 71,732 |
Accrued expenses and other current liabilities | 40,344 |  |  | 115,636 |  |  | 20,344 |  |  | — |  |  | 176,324 |
Current portion of capital lease obligations, long-term debt and non-recourse debt | 8,000 |  |  | 1,870 |  |  | 19,050 |  |  | — |  |  | 28,920 |
Total current liabilities | 68,987 |  |  | 234,761 |  |  | 65,815 |  |  | — |  |  | 369,563 |
Non-Current Deferred Income Tax Liabilities | — |  |  | — |  |  | 8,757 |  |  | — |  |  | 8,757 |
Intercompany Payable | 79,984 |  |  | 1,129,590 |  |  | 37,367 |  |  | (1,246,941 | ) |  | — |
Other Non-Current Liabilities | 4,674 |  |  | 157,200 |  |  | 14,223 |  |  | (79,395 | ) |  | 96,702 |
Capital Lease Obligations | — |  |  | 6,059 |  |  | — |  |  | — |  |  | 6,059 |
Long-Term Debt | 2,090,985 |  |  | — |  |  | 90,559 |  |  | — |  |  | 2,181,544 |
Non-Recourse Debt | — |  |  | — |  |  | 365,364 |  |  | — |  |  | 365,364 |
Commitments & Contingencies and Other |  |  |  |  |  |  |  |  |
Shareholders' Equity: |  |  |  |  |  |  |  |  |
The GEO Group, Inc. Shareholders' Equity | 1,199,241 |  |  | 1,677,916 |  |  | 117,015 |  |  | (1,794,931 | ) |  | 1,199,241 |
Noncontrolling Interests | — |  |  | — |  |  | (322 | ) |  | — |  |  | (322 | )
Total Shareholders’ Equity | 1,199,241 |  |  | 1,677,916 |  |  | 116,693 |  |  | (1,794,931 | ) |  | 1,198,919 |
Total Liabilities and Shareholders' Equity | $ | 3,443,871 |  |  | $ | 3,205,526 |  |  | $ | 698,778 |  |  | $ | (3,121,267 | ) |  | $ | 4,226,908 |
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (dollars in thousands) (unaudited)
| For the Three Months Ended March 31, 2018
| The GEO Group, Inc. |  | Combined Subsidiary Guarantors |  | Combined Non-Guarantor Subsidiaries |  | Consolidated
Cash Flow from Operating Activities: |  |  |  |  |  |  |
Net cash provided by operating activities | $ | 39,888 |  |  | $ | 17,614 |  |  | $ | 7,599 |  |  | $ | 65,101 |
Cash Flow from Investing Activities: |  |  |  |  |  |  |
Proceeds from sale of assets held for sale |  |  |  | 3,797 |  |  |  |  |  | 3,797 |
Insurance proceeds - damaged property | — |  |  | 4,504 |  |  | — |  |  | 4,504 |
Change in restricted investments | — |  |  | (505 | ) |  | — |  |  | (505 | )
Capital expenditures | (34,360 | ) |  | (16,654 | ) |  | (1,133 | ) |  | (52,147 | )
Net cash used in investing activities | (34,360 | ) |  | (8,858 | ) |  | (1,133 | ) |  | (44,351 | )
Cash Flow from Financing Activities: |  |  |  |  |  |  |
Proceeds from long-term debt | 102,000 |  |  | — |  |  | — |  |  | 102,000 |
Payments on long-term debt | (43,000 | ) |  | — |  |  | — |  |  | (43,000 | )
Payments on non-recourse debt | — |  |  | — |  |  | (5,600 | ) |  | (5,600 | )
Taxes paid related to net share settlements of equity awards | (4,356 | ) |  | — |  |  | — |  |  | (4,356 | )
Payment for repurchases of common stock | (40,182 | ) |  | — |  |  | — |  |  | (40,182 | )
Proceeds from issuance of common stock in connection with ESPP | 140 |  |  | — |  |  | — |  |  | 140 |
Proceeds from stock options exercised | 260 |  |  | — |  |  | — |  |  | 260 |
Dividends paid | (58,238 | ) |  |  |  |  | — |  |  | (58,238 | )
Net cash used in financing activities | (43,376 | ) |  | — |  |  | (5,600 | ) |  | (48,976 | )
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash and Cash Equivalents | — |  |  | — |  |  | 3,930 |  |  | 3,930 |
Net (Decrease) Increase in Cash. Cash Equivalents and Restricted Cash and Cash Equivalents | (37,848 | ) |  | 8,756 |  |  | 4,796 |  |  | (24,296 | )
Cash, Cash Equivalents and Restricted Cash and Cash Equivalents, beginning of period | 54,666 |  |  | 4,952 |  |  | 73,927 |  |  | 133,545 |
Cash,Cash Equivalents and Restricted Cash and Cash Equivalents, end of period | $ | 16,818 |  |  | $ | 13,708 |  |  | $ | 78,723 |  |  | $ | 109,249 |
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (dollars in thousands) (unaudited)
| For the Three Months Ended March 31, 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 | $ | (22,988 | ) |  | $ | 35,079 |  |  | $ | 35,791 |  |  | $ | 47,882 |
Cash Flow from Investing Activities: |  |  |  |  |  |  |
Proceeds from sale of property and equipment | 689 |  |  | — |  |  | — |  |  | 689 |
Change in restricted investments | — |  |  | (2,058 | ) |  | — |  |  | (2,058 | )
Capital expenditures | (5,404 | ) |  | (27,062 | ) |  | (1,955 | ) |  | (34,421 | )
Cash used in by investing activities | (4,715 | ) |  | (29,120 | ) |  | (1,955 | ) |  | (35,790 | )
Net cash used in investing activities |  |  |  |  |  |  |
Cash Flow from Financing Activities: |  |  |  |  |  |  |
Proceeds from long-term debt | 1,083,148 |  |  | — |  |  | — |  |  | 1,083,148 |
Taxes paid related to net share settlements of equity awards | (3,434 | ) |  | — |  |  | — |  |  | (3,434 | )
Payments on long-term debt | (918,500 | ) |  | — |  |  | — |  |  | (918,500 | )
Payments on non-recourse debt | — |  |  | — |  |  | (67,171 | ) |  | (67,171 | )
Proceeds from stock options exercised | 3,882 |  |  | — |  |  | — |  |  | 3,882 |
Proceeds from non-recourse debt | — |  |  | — |  |  | 36,020 |  |  | 36,020 |
Proceeds from issuance of common stock in connection with ESPP | — |  |  |  |  | 122 |  |  | 122 |
Dividends paid | (52,504 | ) |  |  |  |  | — |  |  | (52,504 | )
Issuance of common stock under prospectus supplement | 276,036 |  |  | — |  |  | — |  |  | 276,036 |
Debt issuance costs | (6,992 | ) |  | — |  |  | (379 | ) |  | (7,371 | )
Net cash provided by (used in) financing activities | 381,636 |  |  | — |  |  | (31,408 | ) |  | 350,228 |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash and Cash Equivalents | — |  |  | — |  |  | 2,679 |  |  | 2,679 |
Net Increase in Cash, Cash Equivalents and Restricted Cash and Cash Equivalents | 353,933 |  |  | 5,959 |  |  | 5,107 |  |  | 364,999 |
Cash, Cash Equivalents and Restricted Cash and Cash Equivalents, beginning of period | 45,736 |  |  | 4,922 |  |  | 39,699 |  |  | 90,357 |
Cash, Cash Equivalents and Restricted Cash and Cash Equivalents, end of period | $ | 399,669 |  |  | $ | 10,881 |  |  | $ | 44,806 |  |  | $ | 455,356 |

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