Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jul. 01, 2012

Condensed Consolidating Financial Information Disclosure [Abstract]



	As of July 1, 2012
	The GEO Group, Inc.		Combined Subsidiary Guarantors		Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(Dollars in thousands)
ASSETS
Cash and cash equivalents	43,081		$	4,550	$	20,907	$	—		$	68,538
Restricted cash and investments	—		1,350		38,721		—			40,071
Accounts receivable, less allowance for doubtful accounts	122,746		138,653		23,032		—			284,431
Deferred income tax assets, net	13,891		11,047		3,788		—			28,726
Prepaid expenses and other current assets	6,878		7,094		10,565		(1,154		)	23,383
Current assets of discontinued operations	4,740		1,973		—		—			6,713
Total current assets	191,336		164,667		97,013		(1,154		)	451,862
Restricted Cash and Investments	8,941		—		51,129		—			60,070
Property and Equipment, Net	638,967		830,739		248,686		—			1,718,392
Assets Held for Sale	3,083		2,307		—		—			5,390
Direct Finance Lease Receivable	—		—		29,253		—			29,253
Intercompany Receivable	378,861		14,380		12,708		(405,949		)	—
Deferred Income Tax Assets, Net	—		—		1,711		—			1,711
Goodwill	34		507,272		762		—			508,068
Intangible Assets, Net	—		188,957		1,786		—			190,743
Investment in Subsidiaries	1,317,002		16,615		—		(1,333,617		)	—
Other Non-Current Assets	38,680		81,700		37,104		(74,321		)	83,163
Non-Current Assets of Discontinued Operations	$	541	$	35	$	—	$	—		$	576
Total Assets	$	2,577,445	$	1,806,672	$	480,152	$	(1,815,041	)	$	3,049,228

LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable	$	27,396	$	33,154	$	3,131	$	—		$	63,681
Accrued payroll and related taxes	2,829		16,911		17,469		—			37,209
Accrued expenses	73,968		21,626		27,164		(1,154		)	121,604
Current portion of capital lease obligations, long-term debt and non-recourse debt	24,606		1,424		33,728		—			59,758
Current liabilities of discontinued operations	546		156		—		—			702
Total current liabilities	129,345		73,271		81,492		(1,154		)	282,954
Deferred Income Tax Liabilities	42,879		82,296		34		—			125,209
Intercompany Payable	12,708		375,695		17,546		(405,949		)	—
Other Non-Current Liabilities	31,692		26,798		74,769		(74,321		)	58,938
Capital Lease Obligations	—		12,456		—		—			12,456
Long-Term Debt	1,297,724		306		—		—			1,298,030
Non-Recourse Debt	—		—		198,995		—			198,995
Commitments & Contingencies
Shareholders' Equity:
The GEO Group, Inc. Shareholders' Equity	1,063,097		1,226,841		106,776		(1,333,617		)	1,063,097
Noncontrolling Interests	—		9,009		540		—			9,549
Total Shareholders’ Equity	1,063,097		1,235,850		107,316		(1,333,617		)	1,072,646
Total Liabilities and Shareholders' Equity	$	2,577,445	$	1,806,672	$	480,152	$	(1,815,041	)	$	3,049,228

CONDENSED CONSOLIDATING BALANCE SHEET

(dollars in thousands)

(unaudited)



	As of January 1, 2012
	The GEO Group, Inc.		Combined Subsidiary Guarantors		Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
	(Dollars in thousands)
ASSETS
Cash and cash equivalents	$	15,085	$	3,155	$	26,513	$	—		$	44,753
Restricted cash and investments	—		—		42,535		—			42,535
Accounts receivable, less allowance for doubtful accounts	123,426		139,574		22,810		—			285,810
Deferred income tax assets, net	14,063		10,875		3,788		—			28,726
Prepaid expenses and other current assets	17,170		23,791		10,539		(1,154		)	50,346
Current assets of discontinued operations	5,021		2,138		—		—			7,159
Total current assets	174,765		179,533		106,185		(1,154		)	459,329
Restricted Cash and Investments	8,016		—		49,896		—			57,912
Property and Equipment, Net	620,124		834,345		250,837		—			1,705,306
Assets Held for Sale	3,083		1,280		—		—			4,363
Direct Finance Lease Receivable	—		—		32,146		—			32,146
Intercompany Receivable	386,026		14,305		14,028		(414,359		)	—
Deferred Income Tax Assets, Net	—		—		1,711		—			1,711
Goodwill	34		507,272		760		—			508,066
Intangible Assets, Net	—		198,477		1,865		—			200,342
Investment in Subsidiaries	1,333,885		9,784		—		(1,343,669		)	—
Other Non-Current Assets	40,695		73,480		31,022		(65,621		)	79,576
Non-Current Assets of Discontinued Operations	$	697	$	168	$	—	$	—		$	865
Total Assets	$	2,567,325	$	1,818,644	$	488,450	$	(1,824,803	)	$	3,049,616

LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable	$	47,159	$	18,531	$	3,942	$	—		$	69,632
Accrued payroll and related taxes	2,855		18,273		17,002		—			38,130
Accrued expenses	69,585		33,500		24,751		(1,154		)	126,682
Current portion of capital lease obligations, long-term debt and non-recourse debt	19,037		1,363		33,266		—			53,666
Current liabilities of discontinued operations	542		166		—		—			708
Total current liabilities	139,178		71,833		78,961		(1,154		)	288,818
Deferred Income Tax Liabilities	42,879		82,296		34		—			125,209
Intercompany Payable	14,027		378,005		22,327		(414,359		)	—
Other Non-Current Liabilities	29,384		28,654		63,964		(65,621		)	56,381
Capital Lease Obligations	—		13,087		—		—			13,087
Long-Term Debt	1,318,639		429		—		—			1,319,068
Non-Recourse Debt	—		—		208,532		—			208,532
Commitments & Contingencies
Shareholders' Equity:
The GEO Group, Inc. Shareholders' Equity	1,023,218		1,229,553		114,116		(1,343,669		)	1,023,218
Noncontrolling Interests	—		14,787		516		—			15,303
Total Shareholders’ Equity	1,023,218		1,244,340		114,632		(1,343,669		)	1,038,521
Total Liabilities and Shareholders' Equity	$	2,567,325	$	1,818,644	$	488,450	$	(1,824,803	)	$	3,049,616

CONDENSED CONSOLIDATING STATEMENTS OF INCOME



	For the Thirteen Weeks Ended July 1, 2012
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	153,754		$	217,573		$	61,400		$	(20,379	)	$	412,348
Operating expenses	130,229			145,784			49,401			(20,379		)	305,035
Depreciation and amortization	7,390			14,255			2,162			—			23,807
General and administrative expenses	9,609			13,597			3,837			—			27,043
Operating income	6,526			43,937			6,000			—			56,463
Interest income	7,848			393			1,661			(8,141		)	1,761
Interest expense	(16,836		)	(7,926		)	(3,996		)	8,141			(20,617		)
Income (loss) before income taxes and equity in earnings of affiliates	(2,462		)	36,404			3,665			—			37,607
Provision (benefit) for income taxes	(663		)	14,089			1,565			—			14,991
Equity in earnings of affiliates, net of income tax provision	—			—			430			—			430
Income (loss) from continuing operations before equity in income of consolidated subsidiaries	(1,799		)	22,315			2,530			—			23,046
Income from consolidated subsidiaries, net of income tax provision	24,845			—			—			(24,845		)	—
Income from continuing operations	23,046			22,315			2,530			(24,845		)	23,046
Net income (loss) from discontinued operations	(570		)	85			—			(85		)	(570		)
Net income	22,476			22,400			2,530			(24,930		)	22,476
Net loss attributable to noncontrolling interests	—			—			25			—			25
Net income attributable to The GEO Group, Inc.	$	22,476		$	22,400		$	2,555		$	(24,930	)	$	22,501

Net income	$	22,476		$	22,400		$	2,530		$	(24,930	)	$	22,476
Other comprehensive income (loss), net of tax	$	29		$	—		$	(2,498	)	$	—		$	(2,469	)
Comprehensive income	$	22,505		$	22,400		$	32		$	(24,930	)	$	20,007
Comprehensive loss attributable to noncontrolling interests	$	—					$	58		$	—		$	58
Comprehensive income attributable to The GEO Group, Inc.	$	22,505		$	22,400		$	90		$	(24,930	)	$	20,065

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

(dollars in thousands)

(unaudited)



	For the Thirteen Weeks Ended July 3, 2011
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	138,571		$	220,016		$	57,514		$	(19,297	)	$	396,804
Operating expenses	126,590			145,399			46,544			(19,297		)	299,236
Depreciation and amortization	4,668			14,401			1,876			—			20,945
General and administrative expenses	9,520			14,459			3,731			—			27,710
Operating income (loss)	(2,207		)	45,757			5,363			—			48,913
Interest income	7,767			413			1,562			(8,113		)	1,629
Interest expense	(15,886		)	(7,983		)	(3,656		)	8,113			(19,412		)
Income (loss) before income taxes and equity in earnings of affiliates	(10,326		)	38,187			3,269			—			31,130
Provision (benefit) for income taxes	(3,902		)	14,756			1,448			—			12,302
Equity in earnings of affiliates, net of income tax provision	—			—			1,418			—			1,418
Income (loss) from continuing operations before equity in income of consolidated subsidiaries	(6,424		)	23,431			3,239			—			20,246
Income from consolidated subsidiaries, net of income tax provision	26,670			—			—			(26,670		)	—
Income from continuing operations	20,246			23,431			3,239			(26,670		)	20,246
Net income from discontinued operations	917			236			—			(236		)	917
Net income	21,163			23,667			3,239			(26,906		)	21,163
Net loss attributable to noncontrolling interests	—			1			414			—			415
Net income attributable to The GEO Group, Inc.	$	21,163		$	23,668		$	3,653		$	(26,906	)	$	21,578

Net income	$	21,163		$	23,667		$	3,239		$	(26,906	)	$	21,163
Other comprehensive income, net of tax	10			—			489			—			$	499
Comprehensive income	$	21,173		$	23,667		$	3,728		$	(26,906	)	$	21,662
Comprehensive loss attributable to noncontrolling interests	—			1			417			—			418
Comprehensive income attributable to The GEO Group, Inc.	$	21,173		$	23,668		$	4,145		$	(26,906	)	$	22,080

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (dollars in thousands) (unaudited)

	For the Twenty-six Weeks Ended July 1, 2012
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	294,370		$	436,476		$	123,174		$	(40,415	)	$	813,605
Operating expenses	261,460			294,875			97,375			(40,415		)	613,295
Depreciation and amortization	14,244			28,318			4,320			—			46,882
General and administrative expenses	18,780			27,846			7,858			—			54,484
Operating income	(114		)	85,437			13,621			—			98,944
Interest income	15,655			886			3,262			(16,235		)	3,568
Interest expense	(33,754		)	(15,837		)	(8,068		)	16,235			(41,424		)
Income (loss) before income taxes and equity in earnings of affiliates	(18,213		)	70,486			8,815			—			61,088
Provision (benefit) for income taxes	(6,323		)	26,993			3,538			—			24,208
Equity in earnings of affiliates, net of income tax provision	—			—			1,178			—			1,178
Income (loss) from continuing operations before equity in income of consolidated subsidiaries	(11,890		)	43,493			6,455			—			38,058
Income from consolidated subsidiaries, net of income tax provision	49,948			—			—			(49,948		)	—
Income from continuing operations	38,058			43,493			6,455			(49,948		)	38,058
Net income (loss) from discontinued operations	(523		)	223			—			(223		)	(523		)
Net income	37,535			43,716			6,455			(50,171		)	37,535
Net income attributable to noncontrolling interests	—			—			(9		)	—			(9		)
Net income attributable to The GEO Group, Inc.	$	37,535		$	43,716		$	6,446		$	(50,171	)	$	37,526

Net income	$	37,535		$	43,716		$	6,455		$	(50,171	)	$	37,535
Other comprehensive income (loss), net of tax	59			—			(541		)	—			(482		)
Comprehensive income	$	37,594		$	43,716		$	5,914		$	(50,171	)	$	37,053
Comprehensive loss attributable to noncontrolling interests	—			—			(4		)	—			(4		)
Comprehensive income attributable to The GEO Group, Inc.	$	37,594		$	43,716		$	5,910		$	(50,171	)	$	37,049

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (dollars in thousands) (unaudited)

	For the Twenty-six Weeks Ended July 3, 2011
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	273,812		$	427,970		$	113,015		$	(37,649	)	$	777,148
Operating expenses	251,024			286,276			88,606			(37,649		)	588,257
Depreciation and amortization	8,855			27,059			3,732			—			39,646
General and administrative expenses	20,964			31,367			8,167			—			60,498
Operating income (loss)	(7,031		)	83,268			12,510			—			88,747
Interest income	13,504			737			3,025			(14,068		)	3,198
Interest expense	(29,239		)	(13,922		)	(7,280		)	14,068			(36,373		)
Income (loss) before income taxes and equity in earnings of affiliates	(22,766		)	70,083			8,255			—			55,572
Provision (benefit) for income taxes	(8,709		)	27,080			3,303			—			21,674
Equity in earnings of affiliates, net of income tax provision	—			—			2,080			—			2,080
Income (loss) from continuing operations before equity in income of consolidated subsidiaries	(14,057		)	43,003			7,032			—			35,978
Income from consolidated subsidiaries, net of income tax provision	50,035			—			—			(50,035		)	—
Income from continuing operations	35,978			43,003			7,032			(50,035		)	35,978
Net income from discontinued operations	1,565			503			—			(503		)	1,565
Net income	37,543			43,506			7,032			(50,538		)	37,543
Net loss attributable to noncontrolling interests	—			2			823			—			825
Net income attributable to The GEO Group, Inc.	$	37,543		$	43,508		$	7,855		$	(50,538	)	$	38,368

Net income	$	37,543		$	43,506		$	7,032		$	(50,538	)	$	37,543
Other comprehensive income	19			—			783			—			802
Comprehensive income	37,562			43,506			7,815			(50,538		)	38,345
Comprehensive loss attributable to noncontrolling interests	—			9			826			—			835
Comprehensive income attributable to The GEO Group, Inc.	$	37,562		$	43,515		$	8,641		$	(50,538	)	$	39,180

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS



	For the Twenty-six Weeks Ended July 1, 2012
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Consolidated
Cash Flow from Operating Activities:
Net cash provided by operating activities	$	98,491		$	17,218		$	10,104		$	125,813
Cash Flow from Investing Activities:
Proceeds from sale of property and equipment	—			162			69			231
Proceeds from sale of assets held for sale	—			297			—			297
Change in restricted cash and investments	—			—			333			333
Capital expenditures	(54,024		)	(15,589		)	(2,240		)	(71,853		)
Net cash (used in) provided by investing activities	(54,024		)	(15,130		)	(1,838		)	(70,992		)
Cash Flow from Financing Activities:
Payments on long-term debt	(160,556		)	(693		)	(8,033		)	(169,282		)
Proceeds from long-term debt	145,000			—			—			145,000
Distribution to noncontrolling interests	—			—			(5,758		)	(5,758		)
Proceeds from the exercise of stock options	396			—			—			396
Income tax provision of equity compensation	(270		)	—			—			(270		)
Payments for retirement of common stock	(1,035		)	—			—			(1,035		)
Debt issuance costs	(6		)	—			(38		)	(44		)
Net cash used in financing activities	(16,471		)	(693		)	(13,829		)	(30,993		)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	—			—			(43		)	(43		)
Net (Decrease) Increase in Cash and Cash Equivalents	27,996			1,395			(5,606		)	23,785
Cash and Cash Equivalents, beginning of period	15,085			3,155			26,513			44,753
Cash and Cash Equivalents, end of period	$	43,081		$	4,550		$	20,907		$	68,538

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(dollars in thousands)

(unaudited)



	For the Twenty-six Weeks Ended July 3, 2011
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Consolidated
Cash Flow from Operating Activities:
Net cash provided by (used in) operating activities	$	64,488		$	(1,202	)	$	31,976		$	95,262
Cash Flow from Investing Activities:
Acquisition, cash consideration, net of cash acquired	(409,607		)	—			—			(409,607		)
Proceeds from sale of property and equipment	—			619			—			619
Proceeds from assets held for sale	—			6,640			—			6,640
Change in restricted cash and investments	—			—			(11,478		)	(11,478		)
Capital expenditures	(82,994		)	(3,236		)	(1,132		)	(87,362		)
Net cash (used in) provided by investing activities	(492,601		)	4,023			(12,610		)	(501,188		)
Cash Flow from Financing Activities:
Payments on long-term debt	(38,638		)	(576		)	(7,618		)	(46,832		)
Proceeds from long-term debt	482,260			—			—			482,260
Distribution to noncontrolling interests	—			—			(4,012		)	(4,012		)
Proceeds from the exercise of stock options	2,209			—			—			2,209
Income tax benefit of equity compensation	392			—			—			392
Debt issuance costs	(10,771		)	—			—			(10,771		)
Net cash provided by (used in) financing activities	435,452			(576		)	(11,630		)	423,246
Effect of Exchange Rate Changes on Cash and Cash Equivalents	—			—			469			469
Net Increase in Cash and Cash Equivalents	7,339			2,245			8,205			17,789
Cash and Cash Equivalents, beginning of period	2,614			221			36,829			39,664
Cash and Cash Equivalents, end of period	$	9,953		$	2,466		$	45,034		$	57,453