XML 30 R20.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Business Segments and Geographic Information | 9 Months Ended
--- | ---
Sep. 30, 2022
Segment Reporting [Abstract] |
Business Segments and Geographic Information | 12. 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 Electronic Monitoring and Supervision Services segment; the Reentry Services segment; and the International Services 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 Company determined that its previously reportable business segment, Facility Construction and Design, no longer qualifies as a reportable segment as it no longer met certain quantitative thresholds and has been aggregated with the Company’s International Services reportable business segment below. In addition, the Company appointed a new Chief Executive Officer, the chief operating decision maker, during fiscal 2021. Based on changes to the way the Company’s chief operating decision maker views the business and financial results used to allocate resources to its electronic monitoring and supervision services operations, along with the growth of the business, the Company determined to report the electronic monitoring and supervision services operation as a separate reportable segment. This segment is presented as Electronic Monitoring and Supervision Services. Previously, the electronic monitoring and supervision services operations were included in the GEO Care reportable segment. In addition, the GEO Care reportable segment was renamed Reentry Services and includes services provided to adults for residential and non-residential treatment, educational and community-based programs, pre-release and half-way house programs. Reentry Services also includes activities for our former youth division for half of 2021 and all historical periods. The youth division was divested on July 1, 2021. The Company has retroactively restated its segment presentation for the three and nine months ended September 30, 2021 to reflect these changes. The U.S. Secure Services segment primarily encompasses U.S.-based secure services business. The Electronic Monitoring and Supervision Services segment, which conducts its services in the United States, represents technology and services provided to adults for monitoring services for community-based parolees, probationers, and pretrial defendants. The Reentry Services segment, which conducts its services in the United States represents evidence-based supervision and treatment programs provided to adults for residential and non-residential treatment, educational and community-based programs, pre-release and half-way house programs. The International Services segment primarily consists of secure services operations in South Africa and Australia. Segment disclosures below (in thousands) reflect the results of continuing operations. All transactions between segments are eliminated. The Company's segment revenues from external customers and a measure of segment profit are as follows (in thousands):
|  | Three Months Ended |  |  | Nine Months Ended |
|  | September 30, 2022 |  |  | September 30, 2021 |  |  | September 30, 2022 |  |  | September 30, 2021 |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Secure Services |  | $ | 368,493 |  |  | $ | 369,609 |  |  | $ | 1,073,140 |  |  | $ | 1,125,014 |
Electronic Monitoring and Supervision Services |  |  | 137,039 |  |  |  | 74,575 |  |  |  | 346,444 |  |  |  | 199,788 |
Reentry Services |  |  | 65,406 |  |  |  | 60,740 |  |  |  | 192,557 |  |  |  | 212,914 |
International Services |  |  | 45,745 |  |  |  | 52,353 |  |  |  | 143,904 |  |  |  | 161,357 |
Total revenues |  | $ | 616,683 |  |  | $ | 557,277 |  |  | $ | 1,756,045 |  |  | $ | 1,699,073 |
Operating income from segments: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Secure Services |  | $ | 67,462 |  |  | $ | 72,054 |  |  | $ | 214,994 |  |  | $ | 219,471 |
Electronic Monitoring and Supervision Services |  |  | 67,673 |  |  |  | 35,052 |  |  |  | 160,838 |  |  |  | 89,520 |
Reentry Services |  |  | 9,816 |  |  |  | 13,265 |  |  |  | 34,027 |  |  |  | 39,604 |
International Services |  |  | 3,192 |  |  |  | 4,123 |  |  |  | 12,740 |  |  |  | 17,112 |
Operating income from segments |  | $ | 148,143 |  |  | $ | 124,494 |  |  | $ | 422,599 |  |  | $ | 365,707 |
General and Administrative Expenses |  |  | (50,022 | ) |  |  | (50,475 | ) |  | $ | (147,878 | ) |  |  | (153,642 | )
Total Operating Income |  | $ | 98,121 |  |  | $ | 74,019 |  |  | $ | 274,721 |  |  | $ | 212,065 |
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 thousands):
|  | Three Months Ended |  |  | Nine Months Ended |
|  | September 30, 2022 |  |  | September 30, 2021 |  |  | September 30, 2022 |  |  | September 30, 2021 |
Operating income from segments |  | $ | 148,143 |  |  | $ | 124,494 |  |  | $ | 422,599 |  |  | $ | 365,707 |
Unallocated amounts: |  |  |  |  |  |  |  |  |  |  |  |
General and administrative expenses |  |  | (50,022 | ) |  |  | (50,475 | ) |  |  | (147,878 | ) |  |  | (153,642 | )
Net interest expense |  |  | (41,426 | ) |  |  | (26,535 | ) |  |  | (95,082 | ) |  |  | (78,245 | )
(Loss) gain on extinguishment of debt |  |  | (37,487 | ) |  |  | - |  |  |  | (37,487 | ) |  |  | 4,693 |
(Loss) gain on disposition on asset divestitures |  |  | 29,279 |  |  |  | (6,088 | ) |  |  | 32,332 |  |  |  | 4,291 |
Income before income taxes and equity in earnings of affiliates |  | $ | 48,487 |  |  | $ | 41,396 |  |  | $ | 174,484 |  |  | $ | 142,804 |
Equity in Earnings of Affiliates Equity in earnings of affiliates includes the Company’s 50% owned joint ventures in South African Custodial Services Pty. Limited (“SACS”), located in South Africa, and GEOAmey PECS Limited (“GEOAmey”), located in the United Kingdom. The Company's investments in these entities are accounted for under the equity method of accounting. The Company’s investments in these entities are presented as a component of Other Non-Current Assets in the accompanying consolidated balance sheets. The Company has recorded $2.1 million in earnings, net of tax, for SACS operations during the nine months ended September 30, 2022, and $2.7 million in earnings, net of tax, for SACS operations during the nine months ended September 30, 2021, which are included in equity in earnings of affiliates, net of income tax provision in the accompanying consolidated statements of operations. As of September 30, 2022, and December 31, 2021, the Company’s investment in SACS was $9.2 million and $10.3 million, respectively, and represents its share of cumulative reported earnings. The Company has recorded $1.7 million in earnings, net of tax, for GEOAmey's operations during the nine months ended September 30, 2022, and $2.9 million in earnings, net of tax, for GEOAmey's operations during the nine months ended September 30, 2021, which are included in equity in earnings of affiliates, net of income tax provision in the accompanying consolidated statements of operations. As of September 30, 2022, and December 31, 2021, the Company’s investment in GEOAmey was $9.2 million and $10.1 million, respectively, and represents its share of cumulative reported earnings.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration