Business Segments and Geographic Information

3 Months Ended

Apr. 01, 2012

Segment Reporting [Abstract]

Business Segments and Geographic Information

BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION

Operating and Reporting Segments

The Company conducts its business through four reportable business segments: the U.S. Corrections & Detention segment; the GEO Care segment; the International Services segment; and the Facility Construction & Design segment. The Company's segment revenues from external customers and a measure of segment profit are as follows (in thousands):

	Thirteen Weeks Ended
	April 1, 2012		April 3, 2011
Revenues:
U.S. Corrections & Detention	$	246,119	$	241,630
GEO Care	109,693		96,889
International Services	56,530		53,128
Facility Construction & Design	—		119
Total revenues	$	412,342	$	391,766
Operating income:
U.S. Corrections & Detention	$	47,188	$	55,773
GEO Care	18,624		13,850
International Services	4,187		3,952
Facility Construction & Design	—		103
Operating income from segments	$	69,999	$	73,678

Pre-Tax Income Reconciliation of Segments

The following is a reconciliation of the Company’s total operating income from its reportable segments to the Company’s income before income taxes and equity in earnings of affiliates (in thousands):

	Thirteen Weeks Ended
	April 1, 2012			April 3, 2011
Total operating income from segments	$	69,999		$	73,678
Unallocated amounts:
General and Administrative Expenses	(27,441		)	(32,788		)
Net interest expense	(19,000		)	(15,392		)
Income before income taxes and equity in earnings of affiliates	$	23,558		$	25,498

Equity in Earnings of Affiliates

Equity in earnings of affiliates includes the Company’s 50% owned joint ventures in SACS, located in South Africa, and GEOAmey, located in the United Kingdom. Our investments in these entities are accounted for under the equity method of accounting. The Company’s investments in these entities are presented as a component of Other Non-Current Assets in the accompanying consolidated balance sheets.

As of April 1, 2012 and January 1, 2012 and for the thirteen weeks weeks ended April 1, 2012 and April 3, 2011, SACS was considered to be a significant subsidiary and as such, summarized financial data is included below as follows (in thousands):

	Thirteen Weeks Ended
	April 1, 2012		April 3, 2011
Statement of Operations Data
Revenues	$	11,846	$	12,171
Operating income	4,768		4,760
Net income	2,591		1,323
	April 1, 2012		January 1, 2012
Balance Sheet Data
Current assets	$	22,817	$	21,068
Non-current assets	40,504		39,110
Current liabilities	7,189		3,645
Non-current liabilities	41,589		45,237
Shareholders’ equity	14,543		11,296

As of April 1, 2012 and January 1, 2012, the Company’s investment in SACS was $7.3 million and $5.6 million, respectively.

The Company has recorded $0.5 million in losses, net of tax impact, for GEOAmey’s operations during the thirteen weeks ended April 1, 2012, which is included in Equity in earnings of affiliates in the accompanying consolidated statement of comprehensive income. As of April 1, 2012, the Company’s investment in GEOAmey was equal to its share of reported losses of $2.9 million.