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Business Segments and Geographic Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Business Segments and Geographic Information
14.
Business Segments and Geographic Information

Operating and Reporting Segments

The Company's segments are determined as those operations whose results are reviewed regularly by the chief operating decision maker ("CODM"), who is the Company's Chief Executive Officer, in deciding how to allocate recourses and assess performance. 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.

Revenue and operating income for each segment are used by the CODM to assess the performance of each segment in a financial period. The performance of the operating segments is evaluated based on segment operating income, which is defined as income before income taxes before the following: unallocated corporate general and administrative expenses, interest expense, net, loss on extinguishment of debt, and certain gains and losses not allocated to the operating segments. The CODM uses segment operating income as the measure to make resource (including financial or capital resources) allocation decisions for each segment, predominantly in the annual budget and forecasting process. The CODM considers budget-to-actual variances on a monthly and quarterly basis when evaluating performance for each segment and making decisions about capital allocation.

Summarized financial information for the Company's segments is shown in the following tables including 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, 2024, 2023 and 2022, respectively.

Fiscal Year 2024

 

U.S. Secure Services

 

 

Electronic Monitoring and Supervision Services

 

 

Reentry Services

 

 

International Services

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

1,604,386

 

 

$

332,826

 

 

$

277,566

 

 

$

208,924

 

 

$

2,423,702

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Labor and Related Taxes [1]

 

 

885,863

 

 

 

91,262

 

 

 

126,610

 

 

 

122,039

 

 

 

1,225,774

 

    Medical Services and Supplies [1]

 

 

63,585

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

63,585

 

    Other Segment Items [2]

 

 

352,021

 

 

 

94,209

 

 

 

92,659

 

 

 

72,451

 

 

 

611,340

 

Operating Income from Segments

 

$

302,917

 

 

$

147,355

 

 

$

58,297

 

 

$

14,434

 

 

$

523,003

 

Unallocated amounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

        General and administrative expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(213,028

)

        Net interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(181,837

)

        Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(86,637

)

        Net loss on asset divestitures/impairment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,907

)

Income before income taxes and equity in earnings of affiliates

 

 

 

 

 

 

 

 

 

 

 

 

 

$

38,594

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

 

$

46,837

 

 

$

24,190

 

 

$

6,206

 

 

$

1,458

 

 

$

78,691

 

Depreciation and amortization

 

$

85,685

 

 

$

24,523

 

 

$

13,619

 

 

$

2,393

 

 

$

126,220

 

 

Fiscal Year 2023

 

U.S. Secure Services

 

 

Electronic Monitoring and Supervision Services

 

 

Reentry Services

 

 

International Services

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

1,518,292

 

 

$

425,879

 

 

$

275,102

 

 

$

193,894

 

 

$

2,413,167

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Labor and Related Taxes [1]

 

 

824,893

 

 

 

96,510

 

 

 

125,626

 

 

 

104,028

 

 

 

1,151,057

 

    Medical Services and Supplies [1]

 

 

71,483

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

71,483

 

    Other Segment Items [2]

 

 

351,927

 

 

 

116,466

 

 

 

100,741

 

 

 

78,338

 

 

 

647,472

 

Operating Income from Segments

 

$

269,989

 

 

$

212,903

 

 

$

48,735

 

 

$

11,528

 

 

$

543,155

 

Unallocated amounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

        General and administrative expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(190,766

)

        Net interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(210,500

)

        Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,532

)

        Net gain on asset divestitures/impairment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,691

 

Income before income taxes and equity in earnings of affiliates

 

 

 

 

 

 

 

 

 

 

 

 

 

$

138,048

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

 

$

48,270

 

 

$

17,434

 

 

$

4,403

 

 

$

2,895

 

 

$

73,002

 

Depreciation and amortization

 

$

78,917

 

 

$

28,053

 

 

$

16,588

 

 

$

2,226

 

 

$

125,784

 

 

 

Fiscal Year 2022

 

U.S. Secure Services

 

 

Electronic Monitoring and Supervision Services

 

 

Reentry Services

 

 

International Services

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

1,437,831

 

 

$

496,268

 

 

$

255,428

 

 

$

187,200

 

 

$

2,376,727

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Labor and Related Taxes [1]

 

 

755,290

 

 

 

95,157

 

 

 

113,649

 

 

 

89,261

 

 

 

1,053,357

 

    Medical Services and Supplies [1]

 

 

67,327

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

67,327

 

    Other Segment Items [2]

 

 

334,396

 

 

 

162,917

 

 

 

98,856

 

 

 

78,957

 

 

 

675,126

 

Operating Income from Segments

 

$

280,818

 

 

$

238,194

 

 

$

42,923

 

 

$

18,982

 

 

$

580,917

 

Unallocated amounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

        General and administrative expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(196,972

)

        Net interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(148,562

)

        Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(37,895

)

        Net gain on asset divestitures/impairment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

32,332

 

Income before income taxes and equity in earnings of affiliates

 

 

 

 

 

 

 

 

 

 

 

 

 

$

229,820

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

 

$

52,613

 

 

$

31,354

 

 

$

3,181

 

 

$

2,878

 

 

$

90,026

 

Depreciation and amortization

 

$

80,600

 

 

$

31,838

 

 

$

18,416

 

 

$

2,071

 

 

$

132,925

 

 

[1] The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Intersegment expenses are included in the amounts shown.

[2] Other segment items include:

U.S. Secure Services - depreciation and amortization, food services and supplies, utilities, repairs and maintenance, rent and lease expense and certain other overhead expenses.

Electronic Monitoring and Supervision Services - depreciation and amortization, cost of goods sold, rent and lease expense and certain other overhead expenses.

Reentry Services - depreciation and amortization, medical services and supplies, food services and supplies, rent and lease expense, utilities and certain other overhead expenses.

International Services - medical services and supplies, food services and supplies, utilities, repairs and maintenance and certain other overhead expenses.

Segment Assets

 

 

2024

 

 

2023

 

 

 

 

(In thousands)

 

 

Segment assets:

 

 

 

 

 

 

 

U.S. Secure Services

 

$

2,356,105

 

 

$

2,390,803

 

 

Electronic Monitoring and Supervision Services

 

 

504,782

 

 

 

511,984

 

 

Reentry Services

 

 

465,014

 

 

 

478,124

 

 

International Services

 

 

71,610

 

 

 

77,005

 

 

Total segment assets

 

$

3,397,511

 

 

$

3,457,916

 

 

 

Asset Reconciliation

The following is a reconciliation of the Company’s reportable segment assets to the Company’s total assets as of December 31, 2024 and 2023, respectively.

 

 

 

2024

 

 

2023

 

 

 

(In thousands)

 

Reportable segment assets

 

$

3,397,511

 

 

$

3,457,916

 

Cash

 

 

76,896

 

 

 

93,971

 

Deferred income tax assets

 

 

9,522

 

 

 

8,551

 

Restricted cash and investments, current and non-current

 

 

148,151

 

 

 

135,968

 

Total assets

 

$

3,632,080

 

 

$

3,696,406

 

 

Geographic Information

During each of the years ended December 31, 2024, 2023 and 2022, 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), and (iii) the Company’s wholly-owned subsidiary in South Africa, SACM, through which the Company manages one correctional facility.

 

Fiscal Year

 

2024

 

 

2023

 

 

2022

 

 

 

(In thousands)

 

Revenues:

 

 

 

 

 

 

 

 

 

U.S. operations

 

$

2,214,778

 

 

$

2,219,400

 

 

$

2,189,527

 

Australia operations

 

 

190,872

 

 

 

177,653

 

 

 

168,225

 

South African operations

 

 

18,052

 

 

 

16,114

 

 

 

18,975

 

Total revenues

 

$

2,423,702

 

 

$

2,413,167

 

 

$

2,376,727

 

Property and Equipment, net:

 

 

 

 

 

 

 

 

 

U.S. operations

 

$

1,890,662

 

 

$

1,933,460

 

 

$

1,991,968

 

Australia operations

 

 

8,944

 

 

 

10,700

 

 

 

9,961

 

South African operations

 

 

84

 

 

 

118

 

 

 

92

 

Total Property and Equipment, net

 

$

1,899,690

 

 

$

1,944,278

 

 

$

2,002,021

 

 

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

 

2024

 

 

2023

 

 

 

 

(In thousands)

Revenues:

 

 

 

 

 

 

 

Secure Services [1]

 

$

1,813,310

 

 

$

1,712,186

 

 

Electronic Monitoring and Supervision Services

 

 

332,826

 

 

 

425,879

 

 

Reentry Services

 

 

277,566

 

 

 

275,102

 

 

Total revenues

 

$

2,423,702

 

 

$

2,413,167

 

 

 

[1] Includes international secured services

 

Equity in Earnings of Affiliates

Equity in earnings of affiliates for 2024, 2023 and 2022 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 $0.3 million, $1.7 million and $2.5 million in earnings, net of tax impact, for SACS operations during the years ended December 31, 2024, 2023 and 2022, 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, 2024 and 2023, the Company’s investment in SACS was $7.2 million and $9.1 million, respectively. The investment is included in other non-current assets in the accompanying Consolidated Balance Sheets. The Company received dividend distributions of $1.9 million, $2.2 million and $1.9 million, in 2024, 2023 and 2022, respectively, from this unconsolidated joint venture.

The Company has recorded $2.4 million, $2.9 million and $2.2 million in earnings, net of tax impact, for GEOAmey’s operations during the years ended December 31, 2024, 2023 and 2022, 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, 2024 and 2023, the Company’s investment in GEOAmey was $10.3 million and $11.2 million, respectively, and represents its share of cumulative reported earnings. The Company received dividend distributions of $3.2 million, $0.8 million and $2.6 million in 2024, 2023 and 2022, 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

 

2024

 

 

2023

 

 

2022

 

Various agencies of the U.S Federal Government:

 

 

62

%

 

 

63

%

 

 

64

%

 

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

 

Customer

 

2024

 

 

2023

 

Various agencies of the U.S Federal Government:

 

 

64

%

 

 

54

%

 

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 10%, 14% and 17% of our consolidated revenues for the years ended December 31, 2024, 2023 and 2022, respectively.