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Business Segments and Geographic Information
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Business Segments and Geographic Information
14.
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 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 services provided to adults for monitoring services and evidence-based supervision and treatment programs for community-based parolees, probationers, and pretrial defendants. The Reentry Services segment, which conducts its services in the United States represents services 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 accounting policies of the segments are the same as those described in the summary of significant accounting policies.

 

Fiscal Year

 

2023

 

 

2022

 

 

2021

 

Revenues:

 

 

 

 

 

 

 

 

 

U.S. Secure Services

 

$

1,518,292

 

 

$

1,437,831

 

 

$

1,488,936

 

Electronic Monitoring and Supervision Services

 

 

425,879

 

 

 

496,268

 

 

 

278,934

 

Reentry Services

 

 

275,102

 

 

 

255,428

 

 

 

274,893

 

International Services

 

 

193,894

 

 

 

187,200

 

 

 

213,849

 

Total revenues

 

$

2,413,167

 

 

$

2,376,727

 

 

$

2,256,612

 

Capital Expenditures:

 

 

 

 

 

 

 

 

 

U.S. Secure Services

 

$

48,270

 

 

$

52,613

 

 

$

23,780

 

Electronic Monitoring and Supervision Services

 

 

17,434

 

 

 

31,354

 

 

 

29,504

 

Reentry Services

 

 

4,403

 

 

 

3,181

 

 

 

14,675

 

International Services

 

 

2,895

 

 

 

2,878

 

 

 

1,435

 

Total capital expenditures

 

$

73,002

 

 

$

90,026

 

 

$

69,394

 

Depreciation and amortization:

 

 

 

 

 

 

 

 

 

U.S. Secure Services

 

$

78,917

 

 

$

80,600

 

 

$

83,721

 

Electronic Monitoring and Supervision Services

 

 

28,053

 

 

 

31,838

 

 

 

30,422

 

Reentry Services

 

 

16,588

 

 

 

18,416

 

 

 

18,773

 

International Services

 

 

2,226

 

 

 

2,071

 

 

 

2,261

 

Total depreciation and amortization

 

$

125,784

 

 

$

132,925

 

 

$

135,177

 

Operating Income:

 

 

 

 

 

 

 

 

 

U.S. Secure Services

 

$

269,989

 

 

$

280,818

 

 

$

292,925

 

Electronic Monitoring and Supervision Services

 

 

212,903

 

 

 

238,194

 

 

 

127,070

 

Reentry Services

 

 

48,735

 

 

 

42,923

 

 

 

50,128

 

International Services

 

 

11,528

 

 

 

18,982

 

 

 

22,266

 

Operating income from segments

 

$

543,155

 

 

$

580,917

 

 

$

492,389

 

General and Administrative Expenses

 

 

(190,766

)

 

 

(196,972

)

 

 

(204,306

)

Total operating income

 

$

352,389

 

 

$

383,945

 

 

$

288,083

 

 

 

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, 2023, 2022 and 2021, respectively.

Fiscal Year Ended

 

2023

 

 

2022

 

 

2021

 

 

 

(In thousands)

 

Operating income from segments

 

$

543,155

 

 

$

580,917

 

 

$

492,389

 

Unallocated amounts:

 

 

 

 

 

 

 

 

 

General and administrative expense

 

 

(190,766

)

 

 

(196,972

)

 

 

(204,306

)

Net interest expense

 

 

(210,500

)

 

 

(148,562

)

 

 

(105,453

)

Gain (loss) on extinguishment of debt

 

 

(8,532

)

 

 

(37,895

)

 

 

4,693

 

Net gain on disposition of assets

 

 

4,691

 

 

 

32,332

 

 

 

5,499

 

Income before income taxes and equity in earnings of affiliates

 

$

138,048

 

 

$

229,820

 

 

$

192,822

 

 

 

 

 

2023

 

 

2022

 

 

 

 

(In thousands)

 

 

Segment assets:

 

 

 

 

 

 

 

U.S. Secure Services

 

$

2,390,803

 

 

$

2,371,146

 

 

Electronic Monitoring and Supervision Services

 

 

511,984

 

 

 

536,291

 

 

Reentry Services

 

 

478,124

 

 

 

572,154

 

 

International Services

 

 

77,005

 

 

 

66,023

 

 

Total segment assets

 

$

3,457,916

 

 

$

3,545,614

 

 

 

Asset Reconciliation

The following is a reconciliation of the Company’s reportable segment assets to the Company’s total assets as of December 31, 2023 and 2022, respectively.

 

 

 

2023

 

 

2022

 

 

 

(In thousands)

 

Reportable segment assets

 

$

3,457,916

 

 

$

3,545,614

 

Cash

 

 

93,971

 

 

 

95,073

 

Deferred income tax assets

 

 

8,551

 

 

 

8,005

 

Restricted cash and investments, current and non-current

 

 

135,968

 

 

 

111,691

 

Total assets

 

$

3,696,406

 

 

$

3,760,383

 

 

Geographic Information

During each of the years ended December 31, 2023, 2022 and 2021, 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 three correctional facilities and a contract to provide health services for several public prisons, (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 (these subsidiaries were sold in September 2022), (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 managed the Dungavel House Immigration Removal Centre (GEO transitioned the management contract for Dungavel to the government effective September 30, 2021).

 

Fiscal Year

 

2023

 

 

2022

 

 

2021

 

 

 

(In thousands)

 

Revenues:

 

 

 

 

 

 

 

 

 

U.S. operations

 

$

2,219,400

 

 

$

2,189,527

 

 

$

2,043,157

 

Australia operations

 

 

177,653

 

 

 

168,225

 

 

 

186,980

 

South African operations

 

 

16,114

 

 

 

18,975

 

 

 

19,527

 

United Kingdom operations

 

 

—

 

 

 

—

 

 

 

6,948

 

Total revenues

 

$

2,413,167

 

 

$

2,376,727

 

 

$

2,256,612

 

Property and Equipment, net:

 

 

 

 

 

 

 

 

 

U.S. operations

 

$

1,933,460

 

 

$

1,991,968

 

 

$

2,026,252

 

Australia operations

 

 

10,700

 

 

 

9,961

 

 

 

11,491

 

South African operations

 

 

118

 

 

 

92

 

 

 

102

 

Total Property and Equipment, net

 

$

1,944,278

 

 

$

2,002,021

 

 

$

2,037,845

 

 

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 reentry services and electronic 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

 

2023

 

 

2022

 

 

 

 

(In thousands)

Revenues:

 

 

 

 

 

 

 

Secure Services [1]

 

$

1,712,186

 

 

$

1,625,031

 

 

Electronic Monitoring and Supervision Services

 

 

425,879

 

 

 

496,268

 

 

Reentry Services

 

 

275,102

 

 

 

255,428

 

 

Total revenues

 

$

2,413,167

 

 

$

2,376,727

 

 

 

[1] Includes international secured services

 

Equity in Earnings of Affiliates

Equity in earnings of affiliates for 2023, 2022 and 2021 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 $1.7 million, $2.5 million and $3.6 million in earnings, net of tax impact, for SACS operations during the years ended December 31, 2023, 2022 and 2021, 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, 2023 and 2022, the Company’s investment in SACS was $9.1 million and $10.2 million, respectively. The investment is included in other non-current assets in the accompanying Consolidated Balance Sheets. The Company received dividend distributions of $2.2 million, $1.9 million and $3.1 million, in 2023, 2022 and 2021, respectively, from this unconsolidated joint venture.

The Company has recorded $2.9 million, $2.2 million and $3.6 million in earnings, net of tax impact, for GEOAmey’s operations during the years ended December 31, 2023, 2022 and 2021, 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, 2023 and 2022, the Company’s investment in GEOAmey was $11.2 million and $8.7 million, respectively, and represents its share of cumulative reported earnings. The Company received dividend distributions of $0.8 million, $2.6 million and $5.2 million in 2023, 2022 and 2021, respectively, from this unconsolidated joint venture.

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

 

2023

 

 

2022

 

 

2021

 

Various agencies of the U.S Federal Government:

 

 

63

%

 

 

64

%

 

 

58

%

 

Concentration of credit risk related to the major customer above for accounts receivable is as follows:

 

Customer

 

2023

 

 

2022

 

Various agencies of the U.S Federal Government:

 

 

54

%

 

 

60

%

 

The concentrations above relate primarily to the Company's U.S. Secure Services and its Electronic Monitoring Supervision segments.

 

In addition, our ISAP contract accounted for 14%, 17% and 8% of our consolidated revenues for the years ended December 31, 2023, 2022 and 2021, respectively.