Business Segments and Geographic Information

6 Months Ended

Jul. 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					Twenty-six Weeks Ended
	July 1, 2012		July 3, 2011			July 1, 2012		July 3, 2011
Revenues:
U.S. Corrections & Detention	$	246,060	$	230,662		$	481,094	$	460,870
GEO Care	110,320		110,857			220,013		207,746
International Services	55,968		55,285			112,498		108,413
Facility Construction & Design	—		—			—		119
Total revenues	$	412,348	$	396,804		$	813,605	$	777,148
Operating income:
U.S. Corrections & Detention	$	59,849	$	52,881		$	106,960	$	107,598
GEO Care	21,203		21,443			39,827		35,293
International Services	2,454		2,322			6,641		6,274
Facility Construction & Design	—		(23		)	—		80
Operating income from segments	$	83,506	$	76,623		$	153,428	$	149,245

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						Twenty-six Weeks Ended
	July 1, 2012			July 3, 2011			July 1, 2012			July 3, 2011
Total operating income from segments	$	83,506		$	76,623		$	153,428		$	149,245
Unallocated amounts:
General and Administrative Expenses	(27,043		)	(27,710		)	(54,484		)	(60,498		)
Net interest expense	(18,856		)	(17,783		)	(37,856		)	(33,175		)
Income before income taxes and equity in earnings of affiliates	$	37,607		$	31,130		$	61,088		$	55,572

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 July 1, 2012 and January 1, 2012 and for the thirteen and twenty-six weeks ended July 1, 2012 and July 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				Twenty-six Weeks Ended
	July 1, 2012		July 3, 2011		July 1, 2012		July 3, 2011
Statement of Operations Data
Revenues	$	11,651	$	12,830	$	23,496	$	25,001
Operating income	4,706		5,369		9,474		10,129
Net income	2,641		2,837		5,232		4,160
	July 1, 2012				January 1, 2012
Balance Sheet Data
Current assets	$22,774				$21,068
Non-current assets	37,317				39,110
Current liabilities	3,331				3,645
Non-current liabilities	40,473				45,237
Shareholders’ equity	16,287				11,296

As of July 1, 2012 and January 1, 2012, the Company’s investment in SACS was $8.1 million and $5.6 million, respectively.

The Company has recorded $0.9 million and $1.4 million in losses, net of tax impact, for GEOAmey’s operations during the thirteen and twenty-six weeks ended July 1, 2012, which is included in Equity in earnings of affiliates in the accompanying consolidated statement of comprehensive income. As of July 1, 2012, the Company’s investment in GEOAmey was $(3.8) million, and represents its share of reported losses.