Financial Instruments

3 Months Ended

Mar. 31, 2023

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 March 31, 2023 and December 31, 2022 (in thousands):

			Fair Value Measurements at March 31, 2023
	Carrying Value at March 31, 2023		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Restricted investment:
Rabbi Trusts	$	44,712	$	7,014	$	37,698	$	—
Marketable equity and fixed income securities		36,844		10,051		26,793		—
Interest rate swap derivatives		3,313		—		3,313		—

			Fair Value Measurements at December 31, 2022
	Carrying Value at December 31, 2022		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Restricted investments:
Rabbi Trust	$	36,982	$	—	$	36,982	$	—
Marketable equity and fixed income securities		25,939		—		25,939		—
Interest rate swap derivatives		4,613		—		4,613		—

The Company’s Level 2 financial instruments included in the tables above as of March 31, 2023 and December 31, 2022 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 and the Company's rabbi trust established for a GEO employee and employer contributions to The GEO Group, Inc. Non-qualified Deferred Compensation Plan. The Company's Level 1 financial instruments included in the table above as of March 31, 2023 consist of money market funds held in Florina and money market funds held in the Company's rabbi trust established for its Executive Chairman's retirement account.

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 for The GEO Group, Inc. Non-qualified Deferred Compensation Plan 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 marketable equity and fixed income securities are valued using quoted rates.