Shareholders' Equity

6 Months Ended

Jun. 30, 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 exercise of stock options	234	2		4,080			—			—			—		—			—			4,082
Tax benefit related to equity compensation	—	—		1,308			—			—			—		—			—			1,308
Stock based compensation expense	—	—		705			—			—			—		—			—			705
Restricted stock granted	345	3		(3		)	—			—					—			—			—
Amortization of restricted stock	—	—		2,640			—			—			—		—			—			2,640
Dividends paid	—	—		—			(71,527		)	—			—		—			—			(71,527		)
Re-issuance of treasury shares (ESPP)	5	—		137			—			—			(5	)	18			—			155
Net income	—	—		—			57,627			—			—		—			30			57,657
Other comprehensive income (loss)	—	—		—			—			(6,368		)	—		—			(72		)	(6,440		)
Balance, June 30, 2013	72,001	$	865	$	841,097		$	250,767		$	(3,698	)	14,585		$	(53,597	)	$	450		$	1,035,884

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 dividends in 2013. The amount, timing and frequency of future dividends, however, will be at the sole discretion of GEO's Board of Directors (“the 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 and other factors that GEO's Board may deem relevant. Dividends of $0.50 per share of common stock were paid during the quarter ended March 31, 2013. Dividends of $0.50 per share of common stock were paid during the quarter ended June 30, 2013.

Prospectus Supplement

On May 8, 2013, the Company filed with the Securities and Exchange Commission a prospectus supplement related to the offer and sale from time to time of the Company's common stock at an aggregate offering price of up to $100 million through sales agents. Sales of shares of the Company's common stock under the prospectus supplement and equity distribution agreement entered into with the sales agents, if any, may be made in negotiated transactions or transactions that are deemed to be "at the market" offerings as defined in Rule 415 under the Securities Act of 1933. There were no sales of shares of the Company's common stock under the prospectus supplement during the six months ended June 30, 2013.

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:

	Six Months Ended June 30, 2013
	(In thousands)
	Foreign currency translation adjustments, net of tax attributable to The GEO Group, Inc. [1]			Unrealized (loss)/gain on derivatives, net of tax			Pension adjustments, net of tax			Total
Beginning balance	$	5,755		$	(457	)	$	(2,628	)	$	2,670
Current-period other comprehensive (loss) income	(6,589		)	140			81			(6,368		)
Ending Balance	$	(834	)	$	(317	)	$	(2,547	)	$	(3,698	)

^[1] The foreign currency translation, net of tax, related to noncontrolling interests was not significant at June 30, 2013 or December 31, 2012, respectively.