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Business Segments and Geographic Information | 12 Months Ended
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Dec. 31, 2020
Segment Reporting [Abstract] |
Business Segments and Geographic Information |
1 5. | Business Segments and Geographic Information
Operating and Reporting Segments The Company conducts its business through four reportable business segments: the U.S. Secure Services segment; the GEO Care segment; the International Services segment; and Facility Construction & Design segment. The Company has identified these four reportable segments to reflect the current view that the Company operates four distinct business lines, each of which constitutes a material part of its overall business. The U.S. Secure Services segment primarily encompasses U.S.-based secure services business. The Company’s community-based services, youth services and BI are operating segments aggregated under the GEO Care reporting segment. The GEO Care segment, which conducts its services in the United States, represents services provided to adults and juveniles for non-residential treatment, educational and community based programs, pre-release and half-way house programs, compliance technologies, monitoring services and evidence-based supervision and treatment programs for community-based parolees, probationers, and pretrial defendants. The International Services segment primarily consists of secure services operations in South Africa, Australia and the United Kingdom. The Facility Construction & Design segment primarily contracts with various state, local and federal agencies for the design and construction of facilities for which the Company has management contracts. Generally, the assets and revenues from the Facility Construction & Design segment are offset by a similar amount of liabilities and expenses. Segment disclosures below (in thousands) reflect the results of continuing operations. All transactions between segments are eliminated.
Fiscal Year |  | 2020 |  |  | 2019 |  |  | 2018 |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Secure Services |  | $ | 1,571,216 |  |  | $ | 1,601,679 |  |  | $ | 1,492,973 |
GEO Care |  |  | 551,342 |  |  |  | 614,249 |  |  |  | 580,313 |
International Services |  |  | 211,621 |  |  |  | 232,016 |  |  |  | 253,874 |
Facility Construction and Design [1] [2] |  |  | 15,919 |  |  |  | 29,978 |  |  |  | 4,226 |
Total revenues |  | $ | 2,350,098 |  |  | $ | 2,477,922 |  |  | $ | 2,331,386 |
Capital Expenditures: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Secure Services |  | $ | 58,410 |  |  | $ | 69,074 |  |  | $ | 163,208 |
GEO Care |  |  | 44,913 |  |  |  | 45,000 |  |  |  | 30,136 |
International Services |  |  | 1,142 |  |  |  | 1,468 |  |  |  | 2,322 |
Total capital expenditures [1] |  | $ | 104,465 |  |  | $ | 115,542 |  |  | $ | 195,666 |
Depreciation and amortization: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Secure Services |  | $ | 80,702 |  |  | $ | 78,974 |  |  | $ | 76,801 |
GEO Care |  |  | 51,832 |  |  |  | 49,781 |  |  |  | 47,546 |
International Services |  |  | 2,146 |  |  |  | 2,070 |  |  |  | 2,087 |
Total depreciation and amortization [1] |  | $ | 134,680 |  |  | $ | 130,825 |  |  | $ | 126,434 |
Operating Income: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Secure Services |  | $ | 298,952 |  |  | $ | 322,506 |  |  | $ | 297,453 |
GEO Care |  |  | 97,330 |  |  |  | 147,036 |  |  |  | 138,911 |
International Services |  |  | 19,610 |  |  |  | 16,723 |  |  |  | 12,816 |
Facility Construction & Design [1] [2] |  |  | 54 |  |  |  | 74 |  |  |  | — |
Operating income from segments |  | $ | 415,946 |  |  | $ | 486,339 |  |  | $ | 449,180 |
General and Administrative Expenses |  |  | (193,372 | ) |  |  | (185,926 | ) |  |  | (184,515 | )
Total operating income |  | $ | 222,574 |  |  | $ | 300,413 |  |  | $ | 264,665 |
[1] There were no capital expenditures or depreciation and amortization associated with the Facility Construction & Design segment in 2020, 2019 or 2018. [2] During 2020, 2019 and 2018, the Company had facility construction & design revenues related to an expansion project at its Fulham Correctional Centre in Australia which was substantially completed in the third quarter of 2020. Pre-Tax Income Reconciliation of Segments The following is a reconciliation of the Company’s total operating income from its reportable segments to the Company’s income before income taxes and equity in earnings of affiliates, in each case, during the years ended December 31, 2020, 2019 and 2018, respectively.
Fiscal Year Ended |  | 2020 |  |  | 2019 |  |  | 2018 |
|  | (In thousands) |
Operating income from segments |  | $ | 415,946 |  |  | $ | 486,339 |  |  | $ | 449,180 |
Unallocated amounts: |  |  |  |  |  |  |  |  |  |  |  |
General and administrative expense |  |  | (193,372 | ) |  |  | (185,926 | ) |  |  | (184,515 | )
Net interest expense |  |  | (103,765 | ) |  |  | (122,090 | ) |  |  | (115,348 | )
Gain (loss) on extinguishment of debt |  |  | 5,319 |  |  |  | (4,795 | ) |  |  | — |
Income before income taxes and equity in earnings of affiliates |  | $ | 124,128 |  |  | $ | 173,528 |  |  | $ | 149,317 |
|  | 2020 |  |  | 2019 |  |  | 2018 |
|  | (In thousands) |  |  |  |  |
Segment assets: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Secure Services |  | $ | 2,529,375 |  |  | $ | 2,618,629 |  |  | $ | 2,590,722 |
GEO Care |  |  | 1,058,505 |  |  |  | 1,112,880 |  |  |  | 1,063,484 |
International Services |  |  | 85,110 |  |  |  | 82,097 |  |  |  | 84,911 |
Facility Construction & Design |  |  | 402,930 |  |  |  | 371,846 |  |  |  | 383,713 |
Total segment assets |  | $ | 4,075,920 |  |  | $ | 4,185,452 |  |  | $ | 4,122,830 |
Asset Reconciliation The following is a reconciliation of the Company’s reportable segment assets to the Company’s total assets as of December 31, 2020 and 2019, respectively.
|  | 2020 |  |  | 2019 |
|  | (In thousands) |
Reportable segment assets |  | $ | 4,075,920 |  |  | $ | 4,185,452 |
Cash |  |  | 283,524 |  |  |  | 32,463 |
Deferred income tax assets |  |  | 36,604 |  |  |  | 36,278 |
Restricted cash and investments, current and non-current |  |  | 64,078 |  |  |  | 63,341 |
Total assets |  | $ | 4,460,126 |  |  | $ | 4,317,534 |
Geographic Information During each of the years ended December 31, 2020, 2019 and 2018, the Company’s international operations were conducted through (i) the Company’s wholly owned Australian subsidiary, The GEO Group Australia Pty. Ltd., through which the Company has management contracts for four correctional facilities, (ii) the Company's wholly owned subsidiaries, GEO Ravenhall Finance Holdings Pty. Ltd. and GEO Ravenhall Holdings Pty. Ltd. which, together, had a design and construction contract for a facility in Ravenhall, Australia which was completed in November 2017, (iii) the Company’s wholly-owned subsidiary in South Africa, SACM, through which the Company manages one correctional facility, and (iv) the Company’s wholly-owned subsidiary in the United Kingdom, The GEO Group UK Ltd., through which the Company manages the Dungavel House Immigration Removal Centre.
Fiscal Year |  | 2020 |  |  | 2019 |  |  | 2018 |
|  | (In thousands) |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
U.S. operations |  | $ | 2,123,045 |  |  | $ | 2,216,401 |  |  | $ | 2,073,286 |
Australia operations |  |  | 201,932 |  |  |  | 235,462 |  |  |  | 231,164 |
South African operations |  |  | 17,044 |  |  |  | 18,779 |  |  |  | 19,806 |
United Kingdom operations |  |  | 8,077 |  |  |  | 7,280 |  |  |  | 7,130 |
Total revenues |  | $ | 2,350,098 |  |  | $ | 2,477,922 |  |  | $ | 2,331,386 |
Property and Equipment, net: |  |  |  |  |  |  |  |  |  |  |  |
U.S. operations |  | $ | 2,109,070 |  |  | $ | 2,131,877 |  |  | $ | 2,145,197 |
Australia operations |  |  | 12,908 |  |  |  | 12,215 |  |  |  | 13,006 |
South African operations |  |  | 127 |  |  |  | 182 |  |  |  | 88 |
United Kingdom operations |  |  | 90 |  |  |  | 448 |  |  |  | 319 |
Total Property and Equipment, net |  | $ | 2,122,195 |  |  | $ | 2,144,722 |  |  | $ | 2,158,610 |
Sources of Revenue The Company derives most of its revenue from the management of secure facilities through public-private partnerships. The Company also derives revenue from the provision of community based and youth services, monitoring and evidence-based supervision and treatment programs in the United States, and expansion of new and existing secure facilities, processing centers and reentry centers.
Fiscal Year |  | 2020 |  |  | 2019 |  |  | 2018 |
|  | (In thousands) |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Secure Services |  | $ | 1,782,837 |  |  | $ | 1,833,695 |  |  | $ | 1,746,847 |
GEO Care |  |  | 551,342 |  |  |  | 614,249 |  |  |  | 580,313 |
Facility Construction and Design |  |  | 15,919 |  |  |  | 29,978 |  |  |  | 4,226 |
Total revenues |  | $ | 2,350,098 |  |  | $ | 2,477,922 |  |  | $ | 2,331,386 |
Equity in Earnings of Affiliates Equity in earnings of affiliates for 2020, 2019 and 2018 includes the operating results of the Company’s joint ventures in SACS and GEOAmey. These joint ventures are accounted for under the equity method and the Company’s investments in SACS and GEOAmey are presented as a component of other non-current assets in the accompanying Consolidated Balance Sheets. The Company has recorded $3.7 million, $5.0 million and $7.4 million in earnings, net of tax impact, for SACS operations during the years ended December 31, 2020, 2019 and 2018, respectively, which are included in equity in earnings of affiliates, net of income tax provision in the accompanying Consolidated Statements of Operations. As of December 31, 2020 and 2019, the Company’s investment in SACS was $11.1 million and $12.3 million, respectively. The investment is included in other non-current assets in the accompanying Consolidated Balance Sheets. The Company received dividend distributions of $5.9 million and $6.3 million, in 2020 and 2019, respectively, from this unconsolidated joint venture. The Company has recorded $5.5 million, $4.6 million and $2.2 million in earnings, net of tax impact, for GEOAmey’s operations during the years ended December 31, 2020, 2019 and 2018, respectively, which are included in equity in earnings of affiliates, net of income tax provision, in the accompanying Consolidated Statements of Operations. As of December 31, 2020 and 2019, the Company’s investment in GEOAmey was $11.8 million and $5.7 million, respectively, and represents its share of cumulative reported earnings. The Company received dividend distributions of $4.0 million in 2020 and 2019, respectively, from this unconsolidated joint venture. There were no dividend distributions in 2020. Business Concentration Except for the major customer noted in the following table, no other single customer made up greater than 10% of the Company’s consolidated revenues for the following fiscal years:
Customer |  | 2020 |  |  | 2019 |  |  | 2018 |
Various agencies of the U.S Federal Government: |  |  | 56 | % |  |  | 53 | % |  |  | 50 | %
The concentrations above relate entirely to the Company's U.S. Secure Services segment. Credit risk related to accounts receivable is reflective of the related revenues.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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