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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.