Condensed Consolidating Financial Information (Tables)

9 Months Ended

Oct. 02, 2011

Condensed Consolidating Financial Information Disclosure [Abstract]

CONDENSED CONSOLIDATING BALANCE SHEET

CONDENSED CONSOLIDATING BALANCE SHEET

(dollars in thousands)

(unaudited)

	As of October 2, 2011
	The GEO Group, Inc.		Combined Subsidiary Guarantors		Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(Dollars in thousands)
ASSETS
Cash and cash equivalents	$	3,161	$	3,794	$	37,001	$	—		$	43,956
Restricted cash and investments		—		—		41,033		—			41,033
Accounts receivable, less allowance for doubtful accounts		115,684		136,041		22,569		—			274,294
Deferred income tax assets, net		15,191		25,654		4,127		—			44,972
Prepaid expenses and other current assets		4,376		8,200		10,189		(1,154	)		21,611
Total current assets		138,412		173,689		114,919		(1,154	)		425,866
Restricted Cash and Investments		7,454		—		45,820		—			53,274
Property and Equipment, Net		584,276		882,274		207,301		—			1,673,851
Assets Held for Sale		3,083		915		—		—			3,998
Direct Finance Lease Receivable		—		—		31,673		—			31,673
Intercompany Receivable		401,879		14,212		1,718		(417,809	)		—
Deferred Income Tax Assets, Net		—		—		936					936
Goodwill		34		511,915		720		—			512,669
Intangible Assets, Net		—		203,236		1,895		—			205,131
Investment in Subsidiaries		1,372,562		—		—		(1,372,562	)		—
Other Non-Current Assets		41,702		73,013		29,715		(61,238	)		83,192
	$	2,549,402	$	1,859,254	$	434,697	$	(1,852,763	)	$	2,990,590
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable	$	30,346	$	39,510	$	2,360	$	—		$	72,216
Accrued payroll and related taxes		18,271		14,431		15,070		—			47,772
Accrued expenses		85,326		23,640		21,722		(1,154	)		129,534
Current portion of capital lease obligations, long-term debt and non-recourse debt		17,197		1,366		32,641		—			51,204
Total current liabilities		151,140		78,947		71,793		(1,154	)		300,726
Deferred Income Tax Liabilities		15,874		83,248		20		—			99,142
Intercompany Payable		1,718		392,388		23,703		(417,809	)		—
Other Non-Current Liabilities		25,156		35,090		60,314		(61,238	)		59,322
Capital Lease Obligations		—		13,363		—		—			13,363
Long-Term Debt		1,310,281		490		—		—			1,310,771
Non-Recourse Debt		—		—		162,033		—			162,033
Commitments & Contingencies
Total Shareholders’ Equity		1,045,233		1,255,728		116,834		(1,372,562	)		1,045,233
	$	2,549,402	$	1,859,254	$	434,697	$	(1,852,763	)	$	2,990,590

CONDENSED CONSOLIDATING BALANCE SHEET

(dollars in thousands)

	As of January 2, 2011
	The GEO Group, Inc.		Combined Subsidiary Guarantors		Combined Non-Guarantor 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		9,797		4,127		—			29,115
Prepaid expenses and other current assets		12,325		23,222		9,256		(8,426	)		36,377
Total current assets		151,879		163,437		115,194		(8,426	)		422,084
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		235,798		762		—			236,594
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	$	1,418,752	$	441,579	$	(1,454,361	)	$	2,412,373
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		38,193		33,624		(8,426	)		118,472
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		63,194		84,388		(8,426	)		267,287
Deferred Income Tax Liabilities		15,874		39,424		20		—			55,318
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	$	1,418,752	$	441,579	$	(1,454,361	)	$	2,412,373

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(dollars in thousands)

(unaudited)

	For the Thirteen Weeks Ended October 2, 2011
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	149,413		$	221,807		$	55,389		$	(19,762	)	$	406,847
Operating expenses		134,178			150,769			42,536			(19,762	)		307,721
Depreciation and amortization		5,502			14,616			1,856			—			21,974
General and administrative expenses		9,091			13,483			3,348			—			25,922
Operating income		642			42,939			7,649			—			51,230
Interest income		7,754			405			1,648			(8,040	)		1,767
Interest expense		(15,805	)		(8,065	)		(3,497	)		8,040			(19,327	)
Income (loss) before income taxes and equity in earnings of affiliates		(7,409	)		35,279			5,800			—			33,670
Provision (benefit) for income taxes		(2,863	)		13,632			1,880			—			12,649
Equity in earnings of affiliates, net of income tax provision		—			—			272			—			272
Income (loss) before equity income of consolidated subsidiaries		(4,546	)		21,647			4,192			—			21,293
Income from consolidated subsidiaries, net of income tax provision		25,839			—			—			(25,839	)		—
Net income		21,293			21,647			4,192			(25,839	)		21,293
Net loss attributable to noncontrolling interests		—			—			—			225			225
Net income attributable to the GEO Group, Inc.	$	21,293		$	21,647		$	4,192		$	(25,614	)	$	21,518

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(dollars in thousands)

(unaudited)

	For the Thirteen Weeks Ended October 3, 2010
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	151,656		$	142,293		$	53,209		$	(19,225	)	$	327,933
Operating expenses		137,612			92,057			40,656			(19,225	)		251,100
Depreciation and amortization		4,503			7,370			1,511			—			13,384
General and administrative expenses		14,820			13,905			5,200			—			33,925
Operating income (loss)		(5,279	)		28,961			5,842			—			29,524
Interest income		302			343			1,608			(519	)		1,734
Interest expense		(8,793	)		(512	)		(3,131	)		519			(11,917	)
Loss on extinguishment of debt		(7,933	)		—			—			—			(7,933	)
Income (loss) before income taxes and equity in earnings of affiliates		(21,703	)		28,792			4,319			—			11,408
Provision (benefit) for income taxes		(4,663	)		10,486			1,724			—			7,547
Equity in earnings of affiliates, net of income tax provision		—			—			1,149			—			1,149
Income (loss) before equity income of consolidated subsidiaries		(17,040	)		18,306			3,744			—			5,010
Income from consolidated subsidiaries, net of income tax provision		22,050			—			—			(22,050	)		—
Net income		5,010			18,306			3,744			(22,050	)		5,010
Net loss attributable to noncontrolling interests		—			—			—			271			271
Net income attributable to The GEO Group, Inc.	$	5,010		$	18,306		$	3,744		$	(21,779	)	$	5,281

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(dollars in thousands)

(unaudited)

	For the Thirty-nine Weeks Ended October 2, 2011
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	439,537		$	655,900		$	168,404		$	(57,411	)	$	1,206,430
Operating expenses		399,639			442,281			131,142			(57,411	)		915,651
Depreciation and amortization		14,501			41,743			5,588			—			61,832
General and administrative expenses		30,055			44,850			11,515			—			86,420
Operating income (loss)		(4,658	)		127,026			20,159			—			142,527
Interest income		21,258			1,142			4,673			(22,108	)		4,965
Interest expense		(45,044	)		(21,987	)		(10,777	)		22,108			(55,700	)
Income (loss) before income taxes and equity in earnings of affiliates		(28,444	)		106,181			14,055			—			91,792
Provision (benefit) for income taxes		(10,904	)		41,029			5,183			—			35,308
Equity in earnings of affiliates, net of income tax provision		—			—			2,352			—			2,352
Income (loss) before equity income of consolidated subsidiaries		(17,540	)		65,152			11,224			—			58,836
Income from consolidated subsidiaries, net of income tax provision		76,376			—			—			(76,376	)		—
Net income		58,836			65,152			11,224			(76,376	)		58,836
Net loss attributable to noncontrolling interests		—			—			—			1,050			1,050
Net income attributable to the GEO Group, Inc.	$	58,836		$	65,152		$	11,224		$	(75,326	)	$	59,886

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(dollars in thousands)

(unaudited)

	For the Thirty-nine Weeks Ended October 3, 2010
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	459,271		$	316,251		$	168,186		$	(48,138	)	$	895,570
Operating expenses		402,167			202,799			137,520			(48,138	)		694,348
Depreciation and amortization		12,953			15,698			3,445			—			32,096
General and administrative expenses		35,053			24,138			12,837			—			72,028
Operating income		9,098			73,616			14,384			—			97,098
Interest income		912			1,008			4,226			(1,698	)		4,448
Interest expense		(20,728	)		(1,536	)		(7,612	)		1,698			(28,178	)
Loss on extinguishment of debt		(7,933	)		—			—			—			(7,933	)
Income (loss) before income taxes and equity in earnings of affiliates		(18,651	)		73,088			10,998			—			65,435
Provision (benefit) for income taxes		(3,445	)		27,864			4,141			—			28,560
Equity in earnings of affiliates, net of income tax provision		—			—			2,868			—			2,868
Income (loss) before equity income of consolidated subsidiaries		(15,206	)		45,224			9,725			—			39,743
Income from consolidated subsidiaries, net of income tax provision		54,949			—			—			(54,949	)		—
Net income		39,743			45,224			9,725			(54,949	)		39,743
Net loss attributable to noncontrolling interests		—			—			—			227			227
Net income attributable to The GEO Group, Inc.	$	39,743		$	45,224		$	9,725		$	(54,722	)	$	39,970

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(dollars in thousands)

(unaudited)

	For the Thirty-nine Weeks Ended October 2, 2011
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Consolidated
Cash Flow from Operating Activities:
Net cash provided by operating activities	$	118,955		$	7,802		$	37,367		$	164,124
Cash Flow from Investing Activities:
BI acquisition, cash consideration, net of cash acquired		(409,607	)		—			—			(409,607	)
Proceeds from sale of property and equipment		—			781			14			795
Proceeds from sale of assets held for sale		—			7,121			—			7,121
Change in restricted cash		—			—			(4,126	)		(4,126	)
Capital expenditures		(164,926	)		(11,196	)		(1,534	)		(177,656	)
Net cash used in investing activities		(574,533	)		(3,294	)		(5,646	)		(583,473	)
Cash Flow from Financing Activities:
Payments on long-term debt		(102,925	)		(935	)		(23,684	)		(127,544	)
Proceeds from long-term debt		617,247			—			—			617,247
Distribution to MCF partners		—			—			(4,012	)		(4,012	)
Payments for purchases of treasury shares		(49,987	)		—			—			(49,987	)
Proceeds from the exercise of stock options		2,446			—			—			2,446
Income tax benefit of equity compensation		536			—			—			536
Debt issuance costs		(11,192	)		—			—			(11,192	)
Net cash provided by (used in) financing activities		456,125			(935	)		(27,696	)		427,494
Effect of Exchange Rate Changes on Cash and Cash Equivalents		—			—			(3,853	)		(3,853	)
Net Increase in Cash and Cash Equivalents		547			3,573			172			4,292
Cash and Cash Equivalents, beginning of period		2,614			221			36,829			39,664
Cash and Cash Equivalents, end of period	$	3,161		$	3,794		$	37,001		$	43,956

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(dollars in thousands)

(unaudited)

	For the Thirty-nine Weeks Ended October 3, 2010
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Consolidated
Cash Flow from Operating Activities:
Net cash provided by operating activities	$	71,482		$	2,980		$	29,142		$	103,604
Cash Flow from Investing Activities:
Cornell acquisition, cash consideration		(260,239	)		—			—			(260,239	)
Just Care purchase price adjustment		—			(41	)		—			(41	)
Proceeds from sale of property and equipment		—			334			—			334
Change in restricted cash		—			—			(2,070	)		(2,070	)
Capital expenditures		(57,340	)		(7,366	)		(3,578	)		(68,284	)
Net cash used in investing activities		(317,579	)		(7,073	)		(5,648	)		(330,300	)
Cash Flow from Financing Activities:
Payments on long-term debt		(331,490	)		(530	)		(10,440	)		(342,460	)
Proceeds from long-term debt		673,000			—			—			673,000
Payments for purchase of treasury shares		(80,000	)		—			—			(80,000	)
Payments on retirement of common stock		(7,078	)		—			—			(7,078	)
Proceeds from the exercise of stock options		5,747			—			—			5,747
Income tax benefit of equity compensation		786			—			—			786
Debt issuance costs		(5,750	)		—			—			(5,750	)
Net cash provided by (used in) financing activities		255,215			(530	)		(10,440	)		244,245
Effect of Exchange Rate Changes on Cash and Cash Equivalents		—			—			2,361			2,361
Net Increase (Decrease) in Cash and Cash Equivalents		9,118			(4,623	)		15,415			19,910
Cash and Cash Equivalents, beginning of period		12,376			5,333			16,147			33,856
Cash and Cash Equivalents, end of period	$	21,494		$	710		$	31,562		$	53,766