Business Segments and Geographic Information

12 Months Ended

Dec. 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 International Services segment; the GEO Community Services segment; and Facility Construction & Design segment. The Company has identified these four reportable segments to reflect the current view that the Company operates four distinct business lines, each of which constitutes a material part of its overall business. The U.S. Corrections & Detention segment primarily encompasses U.S.-based privatized corrections and detention business. The International Services segment primarily consists of privatized corrections and detention operations in South Africa, Australia, United Kingdom and Canada. The Company’s community-based services, youth services and BI are operating segments aggregated under the GEO Community Services reporting segment. The GEO Community Services segment, which conducts its services in the United States, represents services provided to adult offenders and juveniles for non-residential treatment, educational and community based programs, pre-release and half-way house programs, compliance technologies, monitoring services and evidence-based supervision and treatment programs for community-based parolees, probationers, and pretrial defendants. The Facility Construction & Design segment primarily contracts with various state, local and federal agencies for the design and construction of facilities for which the Company has management contracts. Generally, the assets and revenues from the Facility Construction & Design segment are offset by a similar amount of liabilities and expenses. There was no activity in the Facility Construction & Design segment during 2013, 2012 or 2011. Segment disclosures below (in thousands) reflect the results of continuing operations. All transactions between segments are eliminated.

Fiscal Year	2013			2012			2011
Revenues:
U.S. Corrections & Detention	$	1,011,818		$	974,780		$	925,098
GEO Community Services	302,094			291,891			280,080
International Services	208,162			212,391			201,994
Total revenues	$	1,522,074		$	1,479,062		$	1,407,172
Depreciation and amortization:
U.S. Corrections & Detention	$	62,112		$	62,578		$	55,208
GEO Community Services	29,989			26,738			24,271
International Services	2,563			2,369			2,069
Total depreciation and amortization	$	94,664		$	91,685		$	81,548
Operating Income:
U.S. Corrections & Detention	$	217,918		$	222,976		$	215,281
GEO Community Services	71,279			65,401			61,270
International Services	13,348			9,768			13,063
Operating income from segments	$	302,545		$	298,145		$	289,614
General and Administrative Expenses	(117,061		)	(113,792		)	(110,015		)
Total operating income	$	185,484		$	184,353		$	179,599

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, equity in earnings of affiliates and discontinued operations, in each case, during the fiscal years ended December 31, 2013, December 31, 2012 and January 1, 2012, respectively.

Fiscal Year Ended	2013			2012			2011
	(In thousands)
Operating income from segments	$	302,545		$	298,145		$	289,614
Unallocated amounts:
General and administrative expense	(117,061		)	(113,792		)	(110,015		)
Net interest expense	(79,680		)	(75,473		)	(68,346		)
Loss on Early Extinguishment of Debt	(20,657		)	(8,462		)	—
Income before income taxes, equity in earnings of affiliates and discontinued operations	$	85,147		$	100,418		$	111,253

	2013		2012
	(In thousands)
Segment assets:
U.S. Corrections & Detention	$	2,048,882	$	1,967,226
GEO Community Services	654,352		673,397
International Services	78,381		97,584
Total segment assets	$	2,781,615	$	2,738,207

Asset Reconciliation

The following is a reconciliation of the Company’s reportable segment assets to the Company’s total assets as of December 31, 2013 and 2012, respectively.

	2013		2012
	(In thousands)
Reportable segment assets	$	2,781,615	$	2,738,207
Cash	52,125		31,755
Deferred income tax assets, net	25,757		20,822
Restricted cash and investments, current and non-current	29,867		48,410
Total assets	$	2,889,364	$	2,839,194

Geographic Information

During each of the fiscal years ended December 31, 2013, December 31, 2012 and January 1, 2012, the Company’s international operations were conducted through (i) the Company’s wholly owned Australian subsidiary, The GEO Group Australia Pty. Ltd., through which the Company has management contracts for four correctional facilities (ii) the Company’s consolidated joint venture in South Africa, SACM, through which the Company manages one correctional facility; and (iii) the Company’s wholly-owned subsidiary in the United Kingdom, The GEO Group UK Ltd., through which the Company manages both the Dungavel House Immigration Removal Centre and the Harmondsworth Immigration Removal Centre.

Fiscal Year	2013		2012		2011
	(In thousands)
Revenues:
U.S. operations	$	1,313,912	$	1,266,670	$	1,205,179
Australia operations	158,028		159,444		150,753
South African operations	17,992		20,029		21,357
United Kingdom operations	31,629		32,254		29,287
Canada operations	513		665		596
Total revenues	$	1,522,074	$	1,479,062	$	1,407,172
Long-lived assets:
U.S. operations	$	1,721,761	$	1,680,038
Australia operations	4,828		5,634
South African operations	158		234
United Kingdom operations	1,051		1,253
Total long-lived assets [1]	$	1,727,798	$	1,687,159

[1]As of December 31, 2013 and 2012 Canada did not have any significant long-lived assets.

Sources of Revenue

The Company derives most of its revenue from the management of privatized correction and detention facilities. The Company also derives revenue from the provision of community based and youth services in the United States and monitoring and evidence-based supervision and treatment programs. All of the Company’s revenue is generated from external customers.

Fiscal Year	2013		2012		2011
	(In thousands)
Revenues:
Corrections & Detention	$	1,219,980	$	1,187,171	$	1,127,092
GEO Community Services	302,094		291,891		280,080
Total revenues	$	1,522,074	$	1,479,062	$	1,407,172

Equity in Earnings of Affiliates

Equity in earnings of affiliates for 2013, 2012 and 2011 includes the operating results of the Company’s joint ventures in SACS and GEOAmey. These joint ventures are accounted for under the equity method and the Company’s investments in SACS and GEOAmey are presented as a component of other non-current assets in the accompanying Consolidated Balance Sheets.

The Company has recorded $5.1 million, $5.3 million and $3.9 million in earnings, net of tax impact, for SACS operations during the fiscal years ended December 31, 2013, December 31, 2012, and January 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 December 31, 2013 and 2012, the Company’s investment in SACS was $8.1 million and $7.8 million, respectively. The investment is included in other non-current assets in the accompanying Consolidated Balance Sheets.

The Company has recorded $1.1 million, $(1.7) million and $(2.4) million in earnings (losses), net of tax impact, for GEOAmey’s operations during the years ended December 31, 2013, December 31, 2012, and January 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 December 31, 2013 and 2012, the Company’s investment in GEOAmey was $(3.0) 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 14-Debt and Note 1 - Summary of Business Organization, Operations and Significant Account Policies - Note Receivable from Joint Venture.

Business Concentration

Except for the major customer noted in the following table, no other single customer made up greater than 10% of the Company’s consolidated revenues for the following fiscal years.

Customer	2013		2012		2011
Various agencies of the U.S Federal Government:	45	%	47	%	40	%

Credit risk related to accounts receivable is reflective of the related revenues.