Business Segments and Geographic Information

3 Months Ended

Mar. 31, 2014

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 2014 and 2013 periods presented.The Company's segment revenues from external customers and a measure of segment profit are as follows (in thousands):

	Three Months Ended
	March 31, 2014		March 31, 2013
Revenues:
U.S. Corrections & Detention	$	266,715	$	248,772
GEO Community Services	76,652		73,941
International Services	49,770		54,318
Total revenues	$	393,137	$	377,031
Operating income:
U.S. Corrections & Detention (1)	$	58,810	$	54,092
GEO Community Services (1)	15,701		17,405
International Services	2,561		1,802
Operating income from segments	$	77,072	$	73,299

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, 2014			March 31, 2013
Total operating income from segments	$	77,072		$	73,299
Unallocated amounts:
General and Administrative Expenses	(28,502		)	(32,040		)
Net Interest Expense	(19,920		)	(18,157		)
Income before income taxes and equity in earnings of affiliates	$	28,650		$	23,102

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 $1.2 million and $1.3 million in earnings, net of tax, for SACS operations during the three months ended March 31, 2014 and March 31, 2013, 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, 2014 and December 31, 2013, the Company’s investment in SACS was $9.2 million and $8.1 million, respectively.

The Company has recorded $0.3 million in earnings and $(0.1) million in losses, net of tax, for GEOAmey’s operations during the three months ended March 31, 2014 and March 31, 2013, 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, 2014 and December 31, 2013, the Company’s investment in GEOAmey was $(2.6) million and $(3.0) 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 9-Debt.)