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Financial Instruments
 9 Months Ended
Sep. 30, 2022
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]  
Financial Instruments

3. FINANCIAL INSTRUMENTS

The following tables provide a summary of the Company’s significant financial assets and liabilities carried at fair value and measured on a recurring basis as of September 30, 2022 and December 31, 2021 (in thousands):

 

 

 

 

 

 

Fair Value Measurements at September 30, 2022

 

 

 

Carrying Value at
September 30,
2022

 

 

Quoted Prices in
Active Markets
(Level 1)

 

 

Significant Other
Observable Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs (Level 3)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Restricted investment:

 

 

 

 

 

 

 

 

 

 

 

 

Rabbi Trust

 

$

34,934

 

 

$

—

 

 

$

34,934

 

 

$

—

 

Marketable equity and fixed income securities

 

 

25,098

 

 

 

—

 

 

 

25,098

 

 

 

—

 

     Interest rate swap derivatives

 

 

4,712

 

 

 

—

 

 

 

4,712

 

 

 

—

 

 

 

 

 

 

 

Fair Value Measurements at December 31, 2021

 

 

 

Carrying Value at
December 31,
2021

 

 

Quoted Prices in
Active Markets
(Level 1)

 

 

Significant Other
Observable Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs (Level 3)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Restricted investments:

 

 

 

 

 

 

 

 

 

 

 

 

Rabbi Trust

 

$

42,937

 

 

$

—

 

 

$

42,937

 

 

$

—

 

Marketable equity and fixed income securities

 

 

11,551

 

 

 

—

 

 

 

11,551

 

 

 

—

 

      Fixed income securities

 

 

1,927

 

 

 

—

 

 

 

1,927

 

 

 

—

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swap derivatives

 

$

3,195

 

 

$

—

 

 

$

3,195

 

 

$

—

 

 

The Company’s Level 2 financial instruments included in the tables above as of September 30, 2022 and December 31, 2021 consist of interest rate swap derivative assets/liabilities held by GEO, investments in equity and fixed income mutual funds held in the Company’s captive insurance subsidiary, Florina, the Company's rabbi trust established for a GEO employee and employer contributions to The GEO Group, Inc. Non-qualified Deferred Compensation Plan.

The interest rate swap derivative assets/liabilities are valued using a discounted cash flow model based on projected borrowing rates. The Company's restricted investment in the rabbi trust is invested in Company-owned life insurance policies which are recorded at their cash surrender values. These investments are valued based on the underlying investments held in the policies' separate accounts. The underlying assets are equity and fixed income pooled funds. The Canadian dollar denominated securities, which are not actively traded, were valued using quoted rates for these and similar securities. The marketable equity and fixed income securities are valued using quoted rates.