Shareholders' Equity

3 Months Ended

Mar. 31, 2013

Equity [Abstract]

Shareholders' Equity

SHAREHOLDERS’ EQUITY

The following table presents the changes in shareholders’ equity that are attributable to the Company’s shareholders and to noncontrolling interests (in thousands):

	Common shares			Additional Paid-In		Earnings in Excess of			Accumulated Other Comprehensive			Treasury shares					Noncontrolling			Total Shareholders'
	Shares	Amount		Capital		Distributions			Income (Loss)			Shares		Amount			Interests			Equity
Balance, December 31, 2012	71,417	$	860	$	832,230	$	264,667		$	2,670		14,590		$	(53,615	)	$	492		$	1,047,304
Proceeds from stock options exercised	181	2		3,047		—			—			—		—			—			3,049
Tax benefit related to equity compensation	—	—		1,127		—			—			—		—			—			1,127
Stock based compensation expense	—	—		419		—			—			—		—			—			419
Amortization of restricted stock	—	—		1,266		—			—			—		—			—			1,266
Dividends paid	—	—		—		(35,711		)	—			—		—			—			(35,711		)
Re-issuance of treasury shares (ESPP)	2	—		59		—			—			(2	)	7			—			66
Net income:	—	—		—		23,420			—			—		—			18			23,438
Other comprehensive income (loss)	—	—		—		—			(1,139		)	—		—			(41		)	(1,180		)
Balance, March 31, 2013	71,600	$	862	$	838,148	$	252,376		$	1,531		14,588		$	(53,608	)	$	469		$	1,039,778

REIT Distributions

As a REIT, GEO is required to distribute annually at least 90% of its REIT taxable income (determined without regard to the dividends paid deduction and by excluding net capital gain) and began paying regular quarterly REIT distributions in 2013. The amount, timing and frequency of future distributions, however, will be at the sole discretion of GEO's Board of Directors (“Board”) and will be declared based upon various factors, many of which are beyond GEO's control, including, GEO's financial condition and operating cash flows, the amount required to maintain REIT status and reduce any income taxes that GEO otherwise would be required to pay, limitations on distributions in GEO's existing and future debt instruments, limitations on GEO's ability to fund distributions using cash generated through GEO's TRS's and other factors that GEO's Board may deem relevant. On January 17, 2013, the Board of Directors declared GEO's first quarterly REIT cash dividend of $0.50 per share of common stock, which was paid on March 1, 2013 to shareholders of record as of the close of business on February 15, 2013.

Stock Repurchase Program

The Company had a stock repurchase program which expired on December 31, 2012. There were no stock repurchases under the program during the three months ended April 1, 2012.

Comprehensive Income (Loss)

Comprehensive income (loss) represents the change in shareholders' equity from transactions and other events and circumstances arising from non-shareholder sources. The Company's total comprehensive income is comprised of net income attributable to GEO, net income attributable to noncontrolling interests, foreign currency translation adjustments that arise from consolidating foreign operations that do not impact cash flows, net unrealized gains and/ or losses on derivative instruments, and pension liability adjustments in the consolidated statements of shareholders' equity and comprehensive income.

The components of accumulated other comprehensive income (loss) attributable to GEO included in the consolidated statement of shareholders' equity are as follows:

	March 31, 2013			December 31, 2012
	(In thousands)
Foreign currency translation adjustments, net of tax attributable to The GEO Group, Inc. [1]	$	4,462		$	5,755
Unrealized loss on derivatives, net of tax	(344		)	(457		)
Pension adjustments, net of tax	(2,587		)	(2,628		)
Total	$	1,531		$	2,670

[1] The foreign currency translation, net of tax, related to noncontrolling interests was not significant at March 31, 2013 or December 31, 2012, respectively.