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Financial Instruments
 6 Months Ended
Jun. 30, 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 June 30, 2023 and December 31, 2022 (in thousands):

 

 

 

 

 

 

Fair Value Measurements at June 30, 2023

 

 

 

Carrying Value at
June 30,
2023

 

 

Quoted Prices in
Active Markets
(Level 1)

 

 

Significant Other
Observable Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs (Level 3)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Restricted investment:

 

 

 

 

 

 

 

 

 

 

 

 

Rabbi Trusts

 

$

46,372

 

 

$

7,014

 

 

$

39,358

 

 

$

—

 

Marketable equity and fixed income securities

 

 

44,297

 

 

 

17,231

 

 

 

27,066

 

 

 

—

 

    Interest rate swap derivatives

 

 

4,360

 

 

 

—

 

 

 

4,360

 

 

 

—

 

 

 

 

 

 

 

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 June 30, 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 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 June 30, 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 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.