Business Segments and Geographic Information

3 Months Ended

Mar. 31, 2013

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 Community Services segment; the International Services segment; and the Facility Construction & Design segment. The Facility Construction & Design segment did not have any operating activity during the 2013 and 2012 periods presented.The GEO Community Services segment was previously referred to as the GEO Care segment but was renamed concurrent with the divestiture of RTS. The U.S. Corrections and Detention and the GEO Community Services segments have been retroactively reclassified for the results of discontinued operations. Refer to Note 8 - Discontinued Operations. The Company's segment revenues from external customers and a measure of segment profit are as follows (in thousands):

	Three Months Ended
	March 31, 2013		April 1, 2012
Revenues:
U.S. Corrections & Detention	$	248,896	$	235,035
GEO Community Services	73,941		72,258
International Services	54,194		52,749
Total revenues	$	377,031	$	360,042
Operating income:
U.S. Corrections & Detention	$	54,086	$	47,106
GEO Community Services	17,405		16,249
International Services	1,808		3,728
Operating income from segments	$	73,299	$	67,083

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):

	Three Months Ended
	March 31, 2013			April 1, 2012
Total operating income from segments	$	73,299		$	67,083
Unallocated amounts:
General and Administrative Expenses	(32,040		)	(26,586		)
Net Interest Expense	(18,157		)	(18,999		)
Income before income taxes and equity in earnings of affiliates, and discontinued operations	$	23,102		$	21,498

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.

The Company has recorded $1.3 million and $1.3 million in earnings, net of tax impact, for SACS operations during both the three months ended March 31, 2013 and April 1, 2012, respectively, which are included in equity in earnings of affiliates, net of income tax provision in the accompanying consolidated statements of operations. As of March 31, 2013 and December 31, 2012, the Company’s investment in SACS was $7.6 million and $7.8 million, respectively.

The Company has recorded $0.1 million and $0.5 million in losses, net of tax impact, for GEOAmey’s operations during the three months ended March 31, 2013 and April 1, 2012 , respectively, which are included in equity in earnings of affiliates, net of income tax provision, in the accompanying consolidated statements of operations. As of March 31, 2013 and December 31, 2012, the Company’s investment in GEOAmey was $(4.2) million and $(4.1) million, respectively, and represents its share of cumulative reported losses. Losses in excess of the Company's investment have been recognized as the Company has provided certain loans and guarantees to provide financial support to GEOAmey (Refer to Note 11-Debt.)