Condensed Consolidating Financial Information (Tables)

9 Months Ended

Sep. 30, 2013

Condensed Consolidating Financial Information Disclosure [Abstract]

CONDENSED CONSOLIDATING BALANCE SHEET

	As of September 30, 2013
	The GEO Group, Inc.		Combined Subsidiary Guarantors		Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	24,964	$	3,479	$	24,718	$	—		$	53,161
Restricted cash and investments	—		—		9,337		—			9,337
Accounts receivable, less allowance for doubtful accounts	78,712		147,352		18,494		—			244,558
Current deferred income tax assets	—		14,605		3,685		—			18,290
Prepaid expenses and other current assets	9,264		23,817		16,554		(1,154		)	48,481
Total current assets	112,940		189,253		72,788		(1,154		)	373,827
Restricted Cash and Investments	149		10,008		14,146		—			24,303
Property and Equipment, Net	684,368		959,137		85,902		—			1,729,407
Assets Held for Sale	—		1,200		—		—			1,200
Direct Finance Lease Receivable	—		—		19,310		—			19,310
Intercompany Receivable	935,735		193,497		—		(1,129,232		)	—
Non-Current Deferred Income Tax Assets	—		—		2,532		—			2,532
Goodwill	34		489,502		694		—			490,230
Intangible Assets, Net	—		165,767		1,318		—			167,085
Investment in Subsidiaries	969,465		420,318		—		(1,389,783		)	—
Other Non-Current Assets	25,890		105,758		35,431		(79,568		)	87,511
Total Assets	$	2,728,581	$	2,534,440	$	232,121	$	(2,599,737	)	$	2,895,405
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable	$	2,163	$	40,723	$	3,171	$	—		$	46,057
Accrued payroll and related taxes	207		29,371		16,859		—			46,437
Accrued expenses	41,780		62,520		16,123		(1,155		)	119,268
Current portion of capital lease obligations, long-term debt and non-recourse debt	3,000		1,193		12,927		—			17,120
Current liabilities of discontinued operations	2,265		—		—		—			2,265
Total current liabilities	49,415		133,807		49,080		(1,155		)	231,147
Non-Current Deferred Income Tax Liabilities	—		15,703		—		—			15,703
Intercompany Payable	183,142		931,904		14,187		(1,129,233		)	—
Other Non-Current Liabilities	13,872		136,647		3,269		(79,564		)	74,224
Capital Lease Obligations	—		11,177		—		—			11,177
Long-Term Debt	1,448,233		—		—		—			1,448,233
Non-Recourse Debt	—		—		80,548		—			80,548
Commitments & Contingencies
Shareholders' Equity:
The GEO Group, Inc. Shareholders' Equity	1,033,919		1,305,202		84,583		(1,389,785		)	1,033,919
Noncontrolling Interests	—		—		454		—			454
Total Shareholders’ Equity	1,033,919		1,305,202		85,037		(1,389,785		)	1,034,373
Total Liabilities and Shareholders' Equity	$	2,728,581	$	2,534,440	$	232,121	$	(2,599,737	)	$	2,895,405

CONDENSED CONSOLIDATING BALANCE SHEET

(dollars in thousands)

	As of December 31, 2012
	The GEO Group, Inc.		Combined Subsidiary Guarantors		Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	4,764	$	1,917	$	25,074	$	—		$	31,755
Restricted cash and investments	—		—		15,654		—			15,654
Accounts receivable, less allowance for doubtful accounts	124,670		102,704		19,261		—			246,635
Current deferred income tax assets	13,106		1,498		3,686		—			18,290
Prepaid expenses and other current assets	8,657		5,890		11,456		(1,154		)	24,849
Total current assets	151,197		112,009		75,131		(1,154		)	337,183
Restricted Cash and Investments	7,953		—		24,803		—			32,756
Property and Equipment, Net	633,458		939,995		113,706		—			1,687,159
Assets Held for Sale	—		3,243		—		—			3,243
Direct Finance Lease Receivable	—		—		26,757		—			26,757
Intercompany Receivable	591,273		14,305		—		(605,578		)	—
Non-Current Deferred Income Tax Assets	16,230		—		2,532		(16,230		)	2,532
Goodwill	34		489,502		772		—			490,308
Intangible Assets, Net	—		176,666		1,652		—			178,318
Investment in Subsidiaries	1,151,998		41,356		—		(1,193,354		)	—
Other Non-Current Assets	38,574		84,931		36,584		(79,151		)	80,938
Total Assets	$	2,590,717	$	1,862,007	$	281,937	$	(1,895,467	)	$	2,839,194
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable	$	29,889	$	17,407	$	2,814	$	—		$	50,110
Accrued payroll and related taxes	4,774		16,264		18,284		—			39,322
Accrued expenses	94,350		5,515		17,846		(1,154		)	116,557
Current portion of capital lease obligations, long-term debt and non-recourse debt	33,925		1,311		18,646		—			53,882
Total current liabilities	162,938		40,497		57,590		(1,154		)	259,871
Non-Current Deferred Income Tax Liabilities	—		31,933		—		(16,230		)	15,703
Intercompany Payable	—		586,428		19,150		(605,578		)	—
Other Non-Current Liabilities	63,657		96,822		697		(79,151		)	82,025
Capital Lease Obligations	—		11,926		—		—			11,926
Long-Term Debt	1,317,310		219		—		—			1,317,529
Non-Recourse Debt	—		—		104,836		—			104,836
Commitments & Contingencies
Shareholders' Equity:
The GEO Group, Inc. Shareholders' Equity	1,046,812		1,094,182		99,172		(1,193,354		)	1,046,812
Noncontrolling Interests	—		—		492		—			492
Total Shareholders’ Equity	1,046,812		1,094,182		99,664		(1,193,354		)	1,047,304
Total Liabilities and Shareholders' Equity	$	2,590,717	$	1,862,007	$	281,937	$	(1,895,467	)	$	2,839,194

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(dollars in thousands)

(unaudited)

	For the Three Months Ended September 30, 2013
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	131,159		$	301,244		$	52,584		$	(105,145	)	$	379,842
Operating expenses	115,671			233,143			40,234			(105,145		)	283,903
Depreciation and amortization	6,266			16,411			1,211			—			23,888
General and administrative expenses	9,235			14,314			3,673			—			27,222
Operating income (loss)	(13		)	37,376			7,466			—			44,829
Interest income	11,358			382			980			(11,636		)	1,084
Interest expense	(10,650		)	(20,328		)	(2,227		)	11,636			(21,569		)
Loss on extinguishment of debt	—			(1,451		)	—			—			(1,451		)
Income (loss) before income taxes and equity in earnings of affiliates	695			15,979			6,219			—			22,893
Income tax (benefit) provision	(5,673		)	(3,300		)	1,218			—			(7,755		)
Equity in earnings of affiliates, net of income tax provision	—			—			1,526			—			1,526
Income before equity in income of consolidated subsidiaries	6,368			19,279			6,527			—			32,174
Income from consolidated subsidiaries, net of income tax provision	25,806			—			—			(25,806		)	—
Income from continuing operations	32,174			19,279			6,527			(25,806		)	32,174
Net loss from discontinued operations	(2,265		)	—			—			—			(2,265		)
Net income	29,909			19,279			6,527			(25,806		)	29,909
Net income attributable to noncontrolling interests	—			—			(12		)	—			(12		)
Net income attributable to The GEO Group, Inc.	$	29,909		$	19,279		$	6,515		$	(25,806	)	$	29,897
Net income	$	29,909		$	19,279		$	6,527		$	(25,806	)	$	29,909
Other comprehensive income, net of tax	—			40			608			—			648
Total comprehensive income	$	29,909		$	19,319		$	7,135		$	(25,806	)	$	30,557
Comprehensive loss attributable to noncontrolling interests	—			—			(4		)	—			(4		)
Comprehensive income attributable to The GEO Group, Inc.	$	29,909		$	19,319		$	7,131		$	(25,806	)	$	30,553

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(dollars in thousands)

(unaudited)

	For the Three Months Ended September 30, 2012
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	152,628		$	179,803		$	56,967		$	(20,282	)	$	369,116
Operating expenses	129,012			111,489			47,923			(20,282		)	268,142
Depreciation and amortization	7,328			13,687			1,929			—			22,944
General and administrative expenses	9,625			12,903			3,900			—			26,428
Operating income	6,663			41,724			3,215			—			51,602
Interest income	8,178			385			1,640			(8,552		)	1,651
Interest expense	(17,288		)	(8,433		)	(3,436		)	8,552			(20,605		)
Loss on early extinguishment of debt	—			(8,462		)	—			—			(8,462		)
Income (loss) before income taxes and equity in earnings of affiliates	(2,447		)	25,214			1,419			—			24,186
Income tax (benefit) provision	(994		)	9,873			1,246			—			10,125
Equity in earnings of affiliates, net of income tax provision	—			—			474			—			474
Income (loss) from continuing operations before equity in income of consolidated subsidiaries	(1,453		)	15,341			647			—			14,535
Income from consolidated subsidiaries, net of income tax provision	15,988			—			—			(15,988		)	—
Income from continuing operations	14,535			15,341			647			(15,988		)	14,535
Net income from discontinued operations	192			1,724			164			(1,888		)	192
Net income	14,727			17,065			811			(17,876		)	14,727
Net income attributable to noncontrolling interests	—			—			890			—			890
Net income attributable to The GEO Group, Inc.	$	14,727		$	17,065		$	1,701		$	(17,876	)	$	15,617
Net income	$	14,727		$	17,065		$	811		$	(17,876	)	$	14,727
Other comprehensive income (loss), net of tax	30			—			85			—			115
Total comprehensive income	$	14,757		$	17,065		$	896		$	(17,876	)	$	14,842
Comprehensive income attributable to noncontrolling interests	—			—			903			—			903
Comprehensive income attributable to The GEO Group, Inc.	$	14,757		$	17,065		$	1,799		$	(17,876	)	$	15,745

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(dollars in thousands)

(unaudited)

	For the Nine Months Ended September 30, 2013
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	363,508		$	927,893		$	165,553		$	(318,428	)	$	1,138,526
Operating expenses	317,189			712,814			132,371			(318,428		)	843,946
Depreciation and amortization	17,963			48,849			3,668			—			70,480
General and administrative expenses	26,589			47,926			12,110			—			86,625
Operating income (loss)	1,767			118,304			17,404			—			137,475
Interest income	19,347			1,291			3,199			(20,404		)	3,433
Interest expense	(30,942		)	(44,467		)	(7,008		)	20,404			(62,013		)
Loss on extinguishment of debt	(2,600		)	(4,378		)	—			—			(6,978		)
Income (loss) before income taxes and equity in earnings of affiliates	(12,428		)	70,750			13,595			—			71,917
Income tax (benefit) provision	(14,679		)	(2,668		)	3,205			—			(14,142		)
Equity in earnings of affiliates, net of income tax provision	—			—			3,772			—			3,772
Income (loss) from continuing operations before equity in income of consolidated subsidiaries	2,251			73,418			14,162			—			89,831
Income from consolidated subsidiaries, net of income tax provision	87,580			—			—			(87,580		)	—
Income from continuing operations	89,831			73,418			14,162			(87,580		)	89,831
Net income loss from discontinued operations	(2,265		)	—			—			—			(2,265		)
Net income	87,566			73,418			14,162			(87,580		)	87,566
Net income attributable to noncontrolling interests	—			—			(42		)	—			(42		)
Net income attributable to The GEO Group, Inc.	$	87,566		$	73,418		$	14,120		$	(87,580	)	$	87,524
Net income	$	87,566		$	73,418		$	14,162		$	(87,580	)	$	87,566
Other comprehensive income (loss), net of tax	—			121			(5,912		)	—			(5,791		)
Total comprehensive income	87,566			73,539			8,250			(87,580		)	81,775
Comprehensive loss attributable to noncontrolling interests	—			—			38			—			38
Comprehensive income attributable to The GEO Group, Inc.	$	87,566		$	73,539		$	8,288		$	(87,580	)	$	81,813

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(dollars in thousands)

(unaudited)

	For the Nine Months Ended September 30, 2012
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	446,997		$	541,291		$	172,740		$	(60,697	)	$	1,100,331
Operating expenses	390,472			339,494			138,734			(60,697		)	808,003
Depreciation and amortization	21,572			40,372			6,201			—			68,145
General and administrative expenses	28,405			38,980			11,758			—			79,143
Operating income (loss)	6,548			122,445			16,047			—			145,040
Interest income	23,833			1,271			4,902			(24,787		)	5,219
Interest expense	(51,042		)	(24,270		)	(11,504		)	24,787			(62,029		)
Loss on early extinguishment of debt	—			(8,462		)	—			—			(8,462		)
Income (loss) before income taxes and equity in earnings of affiliates	(20,661		)	90,984			9,445			—			79,768
Income tax (benefit) provision	(7,316		)	35,044			4,547			—			32,275
Equity in earnings of affiliates, net of income tax provision	—			—			1,652			—			1,652
Income (loss) from continuing operations before equity in income of consolidated subsidiaries	(13,345		)	55,940			6,550			—			49,145
Income from consolidated subsidiaries, net of income tax provision	62,489			—			—			(62,489		)	—
Income from continuing operations	49,144			55,940			6,550			(62,489		)	49,145
Net income from discontinued operations	3,117			4,842			716			(5,558		)	3,117
Net income	52,261			60,782			7,266			(68,047		)	52,262
Net income attributable to noncontrolling interests	—			—			881			—			881
Net income attributable to The GEO Group, Inc.	$	52,261		$	60,782		$	8,147		$	(68,047	)	$	53,143
Net income	$	52,261		$	60,782		$	7,266		$	(68,047	)	$	52,262
Other comprehensive income (loss), net of tax	89			—			(469		)	—			(380		)
Total comprehensive income	$	52,350		$	60,782		$	6,797		$	(68,047	)	$	51,882
Comprehensive income attributable to noncontrolling interests	—			—			900			—			900
Comprehensive income attributable to The GEO Group, Inc.	$	52,350		$	60,782		$	7,697		$	(68,047	)	$	52,782

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

	For the Nine Months Ended September 30, 2013
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Consolidated
Cash Flow from Operating Activities:
Cash provided by operating activities - continuing operations	$	110,143		$	30,302		$	15,110		$	155,555
Cash provided by operating activities - discontinued operations	$	2,265		$	—		$	—		$	2,265
Net cash provided by operating activities	$	112,408		$	30,302		$	15,110		$	157,820
Cash Flow from Investing Activities:
Proceeds from sale of property and equipment	—			204			—			204
Proceeds from sale of assets held for sale	—			1,968			—			1,968
Net working capital adjustment from RTS divestiture	(996		)	—			—			(996		)
Change in restricted cash and investments	(149		)	(2,055		)	16,180			13,976
Capital expenditures	(71,848		)	(27,967		)	(1,635		)	(101,450		)
Net cash provided by (used in) investing activities	(72,993		)	(27,850		)	14,545			(86,298		)
Cash Flow from Financing Activities:
Proceeds from long-term debt	842,000			—			—			842,000
Payments on long-term debt	(741,424		)	(890		)	(27,042		)	(769,356		)
Proceeds from reissuance of treasury stock in connection with ESPP	228			—			—			228
Debt issuance costs	(19,317		)	—			—			(19,317		)
Income tax benefit of equity compensation	1,883			—			—			1,883
Proceeds from the exercise of stock options	4,941			—			—			4,941
Cash dividends paid	(107,526		)	—			—			(107,526		)
Net cash used in financing activities	(19,215		)	(890		)	(27,042		)	(47,147		)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	—			—			(2,969		)	(2,969		)
Net Increase (Decrease) in Cash and Cash Equivalents	20,200			1,562			(356		)	21,406
Cash and Cash Equivalents, beginning of period	4,764			1,917			25,074			31,755
Cash and Cash Equivalents, end of period	$	24,964		$	3,479		$	24,718		$	53,161

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(dollars in thousands)

(unaudited)

	For the Nine Months Ended September 30, 2012
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Consolidated
Cash Flow from Operating Activities:
Cash provided by operating activities - continuing operations	$	85,422		$	81,376		$	61,941		$	228,739
Cash provided by operating activities - discontinued operations	339			(4,378		)	2,863			(1,176		)
Net cash provided by operating activities	85,761			76,998			64,804			227,563
Cash Flow from Investing Activities:
Acquisition of ownership interests in MCF	—			(35,154		)	—			(35,154		)
Proceeds from sale of property and equipment	302			203			103			608
Proceeds from sale of assets held for sale	—			5,641						5,641
Change in restricted cash and investments	416			—			40,659			41,075
Capital expenditures	(58,709		)	(28,750		)	(3,019		)	(90,478		)
Cash (used in) provided by investing activities - continuing operations	(57,991		)	(58,060		)	37,743			(78,308		)
Cash used in investing activities - discontinued operations	(388		)	(1,787		)	—			(2,175		)
Net cash (used in) provided by investing activities	(58,379		)	(59,847		)	37,743			(80,483		)
Cash Flow from Financing Activities:
Distribution to noncontrolling interests	—			—			(5,758		)	(5,758		)
Proceeds from long-term debt	263,000			—			—			263,000
Payments on long-term debt	(247,834		)	(1,038		)	(103,259		)	(352,131		)
Payments for retirement of common stock	(1,035		)	—			—			(1,035		)
Payment of make-whole provision and other fees for early extinguishment of debt	—			(14,861		)	—			(14,861		)
Proceeds from reissuance of treasury stock in connection with ESPP	373			—			—			373
Decrease in common stock	(48		)	—			—			(48		)
Debt issuance costs	(880		)	—			(37		)	(917		)
Income tax provision of equity compensation	241			—			—			241
Proceeds from the exercise of stock options	1,846			—			—			1,846
Cash dividends paid	(12,304		)	—			—			(12,304		)
Net cash provided by (used in) financing activities	3,359			(15,899		)	(109,054		)	(121,594		)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	—			—			15			15
Net Increase (Decrease) in Cash and Cash Equivalents	30,741			1,252			(6,492		)	25,501
Cash and Cash Equivalents, beginning of period	15,086			3,091			25,200			43,377
Cash and Cash Equivalents, end of period	$	45,827		$	4,343		$	18,708		$	68,878