Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jul. 03, 2011

Condensed Consolidating Financial Information Disclosure [Abstract]

CONDENSED CONSOLIDATING BALANCE SHEET

	As of July 3, 2011
					Combined
			Combined		Non-
			Subsidiary		Guarantor
	The GEO Group, Inc.		Guarantors		Subsidiaries		Eliminations			Consolidated
			(Dollars in thousands)
ASSETS
Cash and cash equivalents	$	9,953	$	2,466	$	45,034	$	—		$	57,453
Restricted cash and investments		—		—		38,734		—			38,734
Accounts receivable, less allowance for doubtful accounts		104,346		157,741		21,615		—			283,702
Deferred income tax assets, net		15,191		28,665		4,127		—			47,983
Prepaid expenses and other current assets		266		16,211		8,949		(1,154	)		24,272
Total current assets		129,756		205,083		118,459		(1,154	)		452,144
Restricted Cash and Investments		7,721		—		56,098		—			63,819
Property and Equipment, Net		525,960		882,471		209,073		—			1,617,504
Assets Held for Sale		3,083		548		—		—			3,631
Direct Finance Lease Receivable		—		—		36,711		—			36,711
Intercompany Receivable		403,001		14,305		1,881		(419,187	)		—
Deferred Income Tax Assets, Net		—		—		936					936
Goodwill		34		526,128		802		—			526,964
Intangible Assets, Net		—		202,654		2,319		—			204,973
Investment in Subsidiaries		1,379,112		—		—		(1,379,112	)		—
Other Non-Current Assets		39,155		68,382		25,533		(57,459	)		75,611
	$	2,487,822	$	1,899,571	$	451,812	$	(1,856,912	)	$	2,982,293
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable	$	47,308	$	33,189	$	2,114	$	(1,154	)	$	81,457
Accrued payroll and related taxes		1,759		19,612		17,208		—			38,579
Accrued expenses		64,501		37,684		26,866		—			129,051
Current portion of capital lease obligations, long-term debt and non-recourse debt		17,235		1,382		31,946		—			50,563
Total current liabilities		130,803		91,867		78,134		(1,154	)		299,650
Deferred Income Tax Liabilities		15,874		91,476		20		—			107,370
Intercompany Payable		1,881		399,214		18,092		(419,187	)		—
Other Non-Current Liabilities		25,599		38,822		56,443		(57,459	)		63,405
Capital Lease Obligations		—		13,644		—		—			13,644
Long-Term Debt		1,233,643		550		—		—			1,234,193
Non-Recourse Debt		—		—		184,009		—			184,009
Commitments & Contingencies
Total Shareholders’ Equity		1,080,022		1,263,998		115,114		(1,379,112	)		1,080,022
	$	2,487,822	$	1,899,571	$	451,812	$	(1,856,912	)	$	2,982,293

CONDENSED CONSOLIDATING BALANCE SHEET
(dollars in thousands)

	As of January 2, 2011
					Combined
			Combined		Non-
			Subsidiary		Guarantor
	The GEO Group, Inc.		Guarantors		Subsidiaries		Eliminations			Consolidated
			(Dollars in thousands)
ASSETS
Cash and cash equivalents	$	2,614	$	221	$	36,829	$	—		$	39,664
Restricted cash and investments		—		—		41,150		—			41,150
Accounts receivable, less allowance for doubtful accounts		121,749		130,197		23,832		—			275,778
Deferred income tax assets, net		15,191		12,808		4,127		—			32,126
Prepaid expenses and other current assets		12,325		23,222		9,256		(8,426	)		36,377
Total current assets		151,879		166,448		115,194		(8,426	)		425,095
Restricted Cash and Investments		6,168		—		43,324		—			49,492
Property and Equipment, Net		433,219		867,046		211,027		—			1,511,292
Assets Held for Sale		3,083		6,887		—		—			9,970
Direct Finance Lease Receivable		—		—		37,544		—			37,544
Intercompany Receivable		203,703		14,380		1,805		(219,888	)		—
Deferred Income Tax Assets, Net		—				936					936
Goodwill		34		243,213		762		—			244,009
Intangible Assets, Net		—		85,384		2,429		—			87,813
Investment in Subsidiaries		1,184,297		—		—		(1,184,297	)		—
Other Non-Current Assets		24,020		45,820		28,558		(41,750	)		56,648
	$	2,006,403	$	1,429,178	$	441,579	$	(1,454,361	)	$	2,422,799
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable	$	57,015	$	13,254	$	3,611	$	—		$	73,880
Accrued payroll and related taxes		6,535		10,965		15,861		—			33,361
Accrued expenses		55,081		40,391		33,624		(8,426	)		120,670
Current portion of capital lease obligations, long-term debt and non-recourse debt		9,500		782		31,292		—			41,574
Total current liabilities		128,131		65,392		84,388		(8,426	)		269,485
Deferred Income Tax Liabilities		15,874		47,652		20		—			63,546
Intercompany Payable		1,805		199,994		18,089		(219,888	)		—
Other Non-Current Liabilities		22,767		25,839		40,006		(41,750	)		46,862
Capital Lease Obligations		—		13,686		—		—			13,686
Long-Term Debt		798,336		—		—		—			798,336
Non-Recourse Debt		—		—		191,394		—			191,394
Commitments & Contingencies
Total Shareholders’ Equity		1,039,490		1,076,615		107,682		(1,184,297	)		1,039,490
	$	2,006,403	$	1,429,178	$	441,579	$	(1,454,361	)	$	2,422,799

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

	For the Thirteen Weeks Ended July 3, 2011
				Combined			Combined
				Subsidiary			Non-Guarantor
	The GEO Group, Inc.			Guarantors			Subsidiaries			Eliminations			Consolidated
Revenues	$	146,733		$	222,867		$	57,514		$	(19,297	)	$	407,817
Operating expenses		133,566			147,831			46,544			(19,297	)		308,644
Depreciation and amortization		4,744			14,436			1,876			—			21,056
General and administrative expenses		9,520			14,459			3,731			—			27,710
Operating income (loss)		(1,097	)		46,141			5,363			—			50,407
Interest income		7,767			413			1,562			(8,113	)		1,629
Interest expense		(15,886	)		(7,983	)		(3,656	)		8,113			(19,412	)
Income (loss) before income taxes and equity in earnings of affiliates		(9,216	)		38,571			3,269			—			32,624
Provision (benefit) for income taxes		(3,473	)		14,904			1,448			—			12,879
Equity in earnings of affiliates, net of income tax provision		—			—			1,418			—			1,418
Income (loss) before equity income of consolidated subsidiaries		(5,743	)		23,667			3,239			—			21,163
Income from consolidated subsidiaries, net of income tax provision		26,906			—			—			(26,906	)		—
Net income		21,163			23,667			3,239			(26,906	)		21,163
Net loss attributable to noncontrolling interests		—			—			—			415			415
Net income attributable to the GEO Group, Inc.	$	21,163		$	23,667		$	3,239		$	(26,491	)	$	21,578

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(dollars in thousands)
(unaudited)

	For the Thirteen Weeks Ended July 4, 2010
				Combined			Combined
				Subsidiary			Non-Guarantor
	The GEO Group, Inc.			Guarantors			Subsidiaries			Eliminations			Consolidated
Revenues	$	154,754		$	86,962		$	51,174		$	(12,795	)	$	280,095
Operating expenses		134,011			53,826			41,874			(12,795	)		216,916
Depreciation and amortization		4,239			4,281			954			—			9,474
General and administrative expenses		10,878			6,118			3,659			—			20,655
Operating income		5,626			22,737			4,687			—			33,050
Interest income		310			319			1,450			(593	)		1,486
Interest expense		(6,178	)		(516	)		(2,346	)		593			(8,447	)
Income (loss) before income taxes and equity in earnings of affiliates		(242	)		22,540			3,791			—			26,089
Provision (benefit) for income taxes		(105	)		8,823			1,474			—			10,192
Equity in earnings of affiliates, net of income tax provision		—			—			1,128			—			1,128
Income (loss) before equity income of consolidated subsidiaries		(137	)		13,717			3,445			—			17,025
Income from consolidated subsidiaries, net of income tax provision		17,162			—			—			(17,162	)		—
Net income		17,025			13,717			3,445			(17,162	)		17,025
Net income attributable to noncontrolling interests		—			—			—			(8	)		(8	)
Net income attributable to The GEO Group, Inc.	$	17,025		$	13,717		$	3,445		$	(17,170	)	$	17,017

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(dollars in thousands)
(unaudited)

	For the Twenty-six Weeks Ended July 3, 2011
				Combined			Combined
				Subsidiary			Non-Guarantor
	The GEO Group, Inc.			Guarantors			Subsidiaries			Eliminations			Consolidated
Revenues	$	290,124		$	434,093		$	113,015		$	(37,649	)	$	799,583
Operating expenses		265,461			291,512			88,606			(37,649	)		607,930
Depreciation and amortization		8,999			27,127			3,732			—			39,858
General and administrative expenses		20,964			31,367			8,167			—			60,498
Operating income (loss)		(5,300	)		84,087			12,510			—			91,297
Interest income		13,504			737			3,025			(14,068	)		3,198
Interest expense		(29,239	)		(13,922	)		(7,280	)		14,068			(36,373	)
Income (loss) before income taxes and equity in earnings of affiliates		(21,035	)		70,902			8,255			—			58,122
Provision (benefit) for income taxes		(8,041	)		27,397			3,303			—			22,659
Equity in earnings of affiliates, net of income tax provision		—			—			2,080			—			2,080
Income (loss) before equity income of consolidated subsidiaries		(12,994	)		43,505			7,032			—			37,543
Income from consolidated subsidiaries, net of income tax provision		50,537			—			—			(50,537	)		—
Net income		37,543			43,505			7,032			(50,537	)		37,543
Net loss attributable to noncontrolling interests		—			—			—			825			825
Net income attributable to the GEO Group, Inc.	$	37,543		$	43,505		$	7,032		$	(49,712	)	$	38,368

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(dollars in thousands)
(unaudited)

	For the Twenty-six Weeks Ended July 4, 2010
				Combined			Combined
				Subsidiary			Non-Guarantor
	The GEO Group, Inc.			Guarantors			Subsidiaries			Eliminations			Consolidated
Revenues	$	307,614		$	173,958		$	111,664		$	(25,599	)	$	567,637
Operating expenses		265,030			109,801			94,016			(25,599	)		443,248
Depreciation and amortization		8,451			8,328			1,933			—			18,712
General and administrative expenses		19,758			11,173			7,172			—			38,103
Operating income		14,375			44,656			8,543			—			67,574
Interest income		611			665			2,619			(1,180	)		2,715
Interest expense		(11,937	)		(1,024	)		(4,480	)		1,180			(16,261	)
Income before income taxes and equity in earnings of affiliates		3,049			44,297			6,682			—			54,028
Provision for income taxes		1,218			17,573			2,222			—			21,013
Equity in earnings of affiliates, net of income tax provision		—			—			1,718			—			1,718
Income before equity income of consolidated subsidiaries		1,831			26,724			6,178			—			34,733
Income from consolidated subsidiaries, net of income tax provision		32,902			—			—			(32,902	)		—
Net income		34,733			26,724			6,178			(32,902	)		34,733
Net income attributable to noncontrolling interests		—			—			—			(44	)		(44	)
Net income attributable to The GEO Group, Inc.	$	34,733		$	26,724		$	6,178		$	(32,946	)	$	34,689

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

	For the Twenty-six Weeks Ended July 3, 2011
				Combined			Combined
				Subsidiary			Non-Guarantor
	The GEO Group, Inc.			Guarantors			Subsidiaries			Consolidated
Cash Flow from Operating Activities:
Net cash provided by (used in) operating activities	$	64,488		$	(1,202	)	$	31,976		$	95,262
Cash Flow from Investing Activities:
Acquisition, cash consideration, net of cash acquired		(409,607	)		—			—			(409,607	)
Proceeds from sale of property and equipment		—			619			—			619
Proceeds from sale of assets held for sale		—			6,640			—			6,640
Change in restricted cash		—			—			(11,478	)		(11,478	)
Capital expenditures		(82,994	)		(3,236	)		(1,132	)		(87,362	)
Net cash (used in) provided by investing activities		(492,601	)		4,023			(12,610	)		(501,188	)
Cash Flow from Financing Activities:
Payments on long-term debt		(38,638	)		(576	)		(7,618	)		(46,832	)
Proceeds from long-term debt		482,260			—			—			482,260
Distribution to MCF partners		—			—			(4,012	)		(4,012	)
Proceeds from the exercise of stock options		2,209			—			—			2,209
Income tax benefit of equity compensation		392			—			—			392
Debt issuance costs		(10,771	)		—			—			(10,771	)
Net cash provided by (used in) financing activities		435,452			(576	)		(11,630	)		423,246
Effect of Exchange Rate Changes on Cash and Cash Equivalents		—			—			469			469
Net Increase in Cash and Cash Equivalents		7,339			2,245			8,205			17,789
Cash and Cash Equivalents, beginning of period		2,614			221			36,829			39,664
Cash and Cash Equivalents, end of period	$	9,953		$	2,466		$	45,034		$	57,453

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
(dollars in thousands)
(unaudited)

	For the Twenty-six Weeks Ended July 4, 2010
				Combined			Combined
				Subsidiary			Non-Guarantor
	The GEO Group, Inc.			Guarantors			Subsidiaries			Consolidated
Cash Flow from Operating Activities:
Net cash provided by operating activities	$	59,432		$	742		$	25,164		$	85,338
Cash Flow from Investing Activities:
Just Care purchase price adjustment		—			(41	)		—			(41	)
Proceeds from sale of property and equipment		—			334			—			334
Change in restricted cash		—			—			(5,218	)		(5,218	)
Capital expenditures		(50,127	)		(5,654	)		(582	)		(56,363	)
Net cash used in investing activities		(50,127	)		(5,361	)		(5,800	)		(61,288	)
Cash Flow from Financing Activities:
Payments on long-term debt		(33,853	)		(348	)		(6,883	)		(41,084	)
Proceeds from long-term debt		97,000			—			—			97,000
Payments for purchase of treasury shares		(77,278	)		—			—			(77,278	)
Income tax benefit of equity compensation		15			—			—			15
Proceeds from the exercise of stock options		4,871			—			—			4,871
Net cash used in financing activities		(9,245	)		(348	)		(6,883	)		(16,476	)
Effect of Exchange Rate Changes on Cash and Cash Equivalents		—			—			(1,295	)		(1,295	)
Net Increase (Decrease) in Cash and Cash Equivalents		60			(4,967	)		11,186			6,279
Cash and Cash Equivalents, beginning of period		12,376			5,333			16,147			33,856
Cash and Cash Equivalents, end of period	$	12,436		$	366		$	27,333		$	40,135