Benefit Plans

12 Months Ended

Jan. 01, 2012

Benefit Plans [Abstract]

Benefit Plans

17. Benefit Plans

The Company has two non-contributory defined benefit pension plans covering certain of the Company’s executives. Retirement benefits are based on years of service, employees’ average compensation for the last five years prior to retirement and social security benefits. Currently, the plans are not funded. The Company purchased and is the beneficiary of life insurance policies for certain participants enrolled in the plans. There were no significant transactions between the employer or related parties and the plan during the period.

As of January 1, 2012, the Company had a non-qualified deferred compensation agreement with its Chief Executive Officer (“CEO”). The current agreement provides for a lump sum payment upon retirement, no sooner than age 55. As of January 1, 2012, the CEO had reached age 55 and was eligible to receive the payment upon retirement. If the Company’s CEO had retired as of January 1, 2012, the Company would have had to pay him $5.8 million including a tax gross-up relating to the retirement payment equal to $2.1 million. During the fiscal year ended January 2, 2011, the Company paid a former executive $4.4 million, including an income tax gross up of $1.6 million, in discounted retirement benefits under the executive’s non-qualified deferred compensation agreement. During the fiscal year ended January 3, 2010, the Company paid a former executive $3.2 million, including an income tax gross up of $1.2 million, in discounted retirement benefits under the executive’s non-qualified deferred compensation agreement. As a result of the payments made to these executives, the Company recognized settlement charges during the fiscal years ended January 2, 2011 and January 3, 2010 of $0.3 million and $0.2 million, respectively. The long-term portion of the pension liability as of January 1, 2012 and January 2, 2011 was $16.7 million and $13.6 million, respectively, and is included in Other Non-Current liabilities in the accompanying balance sheets.

The following table summarizes key information related to the Company’s pension plans and retirement agreements. The table illustrates the reconciliation of the beginning and ending balances of the benefit obligation showing the effects during the periods presented attributable to service cost, interest cost, plan amendments, termination benefits, actuarial gains and losses. The assumptions used in the Company’s calculation of accrued pension costs are based on market information and the Company’s historical rates for employment compensation and discount rates.

	2011			2010
Change in Projected Benefit Obligation
Projected Benefit Obligation, Beginning of Year	$	13,830		$	16,206
Service Cost		645			525
Interest Cost		667			746
Actuarial (Gain) Loss		1,922			986
Benefits Paid		(185	)		(4,633	)
Projected Benefit Obligation, End of Year	$	16,879		$	13,830
Change in Plan Assets
Plan Assets at Fair Value, Beginning of Year	$	—		$	—
Company Contributions		185			4,633
Benefits Paid		(185	)		(4,633	)
Plan Assets at Fair Value, End of Year	$	—		$	—
Unfunded Status of the Plan	$	(16,879	)	$	(13,830	)
Amounts Recognized in Accumulated Other Comprehensive Income
Prior Service Cost		—			—
Net Loss		3,531			1,671
Total Pension Cost	$	3,531		$	1,671

	Fiscal 2011			Fiscal 2010
Components of Net Periodic Benefit Cost
Service Cost	$	645		$	525
Interest Cost		667			746
Amortization of:
Prior Service Cost		—			41
Net Loss		62			33
Settlements		—			297
Net Periodic Pension Cost	$	1,374		$	1,642
Weighted Average Assumptions for Expense
Discount Rate		5.50	%		5.75	%
Expected Return on Plan Assets		N/A			N/A
Rate of Compensation Increase		4.29	%		4.50	%

The amount included in other accumulated comprehensive income as of January 1, 2012 that is expected to be recognized as a component of net periodic benefit cost in fiscal year 2012 is $0.2 million.

The benefit payments reflected in the table below represent the Company’s obligations to employees that are eligible for retirement or have already retired and are receiving deferred compensation benefits:

Fiscal Year	Pension Benefits
	(In thousands)
2012	$	6,249
2013		247
2014		295
2015		340
2016		388
Thereafter		9,360
	$	16,879

The Company also maintains the GEO Group Inc., Deferred Compensation Plan (“Deferred Compensation Plan”), a non-qualified deferred compensation plan for employees who are ineligible to participate in its qualified 401(k) plan. Eligible employees may defer a fixed percentage of their salary and the Company matches employee contributions up to a certain amount based on the employee’s years of service. Payments will be made at retirement age of 65, at termination of employment or earlier depending on the employees’ elections. Effective December 18, 2009, the Company established a rabbi trust; the purpose of which is to segregate the assets of the Deferred Compensation Plan from the Company’s cash balances. The funds in the rabbi trust are included in Restricted Cash and Investments in the accompanying consolidated balance sheets. These funds are not available to the Company for any purpose other than to fund the Deferred Compensation Plan; however, these funds may be available to the Company’s creditors in the event the Company becomes insolvent. All employee and employer contributions relative to the Deferred Compensation Plan are made directly to the rabbi trust. The Company recognized expense related to its contributions of $0.3 million, $0.2 million and $0.1 million in fiscal years 2011, 2010 and 2009, respectively. The total liability, including the current portion, for this plan at January 1, 2012 and January 2, 2011 was $8.2 million and $6.2 million, respectively. The liability, excluding current portion of $0.6 million and $0.2 million as of January 1, 2012 and January 2, 2011, respectively, is included in other non-current liabilities in the accompanying consolidated balance sheets.