Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2014

Mar. 31, 2013

Condensed Consolidating Financial Information Disclosure [Abstract]

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(dollars in thousands)

(unaudited)

	For the Three Months Ended March 31, 2014
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	134,754		$	314,985		$	52,331		$	(108,933	)	$	393,137
Operating expenses	107,222			250,680			42,954			(108,933		)	291,923
Depreciation and amortization	6,406			16,634			1,102			—			24,142
General and administrative expenses	9,339			15,536			3,627			—			28,502
Operating income (loss)	11,787			32,135			4,648			—			48,570
Interest income	5,536			436			679			(5,919		)	732
Interest expense	(11,074		)	(13,763		)	(1,734		)	5,919			(20,652		)
Income before income taxes and equity in earnings of affiliates	6,249			18,808			3,593			—			28,650
Income tax provision	—			1,294			844			—			2,138
Equity in earnings of affiliates, net of income tax provision	—			—			1,484			—			1,484
Income before equity in income of consolidated subsidiaries	6,249			17,514			4,233			—			27,996
Income from consolidated subsidiaries, net of income tax provision	21,747			—			—			(21,747		)	—
Net income	27,996			17,514			4,233			(21,747		)	27,996
Net income attributable to noncontrolling interests	—			—			(6		)	—			(6		)
Net income attributable to The GEO Group, Inc.	$	27,996		$	17,514		$	4,227		$	(21,747	)	$	27,990
Net income	$	27,996		$	17,514		$	4,233		$	(21,747	)	$	27,996
Other comprehensive income, net of tax	—			19			1,027			—			1,046
Total comprehensive income	$	27,996		$	17,533		$	5,260		$	(21,747	)	$	29,042
Comprehensive loss attributable to noncontrolling interests	—			—			(2		)	—			(2		)
Comprehensive income attributable to The GEO Group, Inc.	$	27,996		$	17,533		$	5,258		$	(21,747	)	$	29,040

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(dollars in thousands)

(unaudited)

	For the Three Months Ended March 31, 2013
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	113,491		$	312,528		$	57,385		$	(106,373	)	$	377,031
Operating expenses	99,409			240,477			47,284			(106,373		)	280,797
Depreciation and amortization	5,824			15,881			1,230			—			22,935
General and administrative expenses	9,197			18,192			4,651			—			32,040
Operating income (loss)	(939		)	37,978			4,220			—			41,259
Interest income	3,960			550			1,096			(4,422		)	1,184
Interest expense	(9,920		)	(11,431		)	(2,412		)	4,422			(19,341		)
Income (loss) before income taxes and equity in earnings of affiliates	(6,899		)	27,097			2,904			—			23,102
Income tax (benefit) provision	(667		)	406			1,142			—			881
Equity in earnings of affiliates, net of income tax provision	—			—			1,217			—			1,217
Income (loss) before equity in income of consolidated subsidiaries	(6,232		)	26,691			2,979			—			23,438
Income from consolidated subsidiaries, net of income tax provision	29,670			—			—			(29,670		)	—
Net income	23,438			26,691			2,979			(29,670		)	23,438
Net income attributable to noncontrolling interests	—			—			(18		)	—			(18		)
Net income attributable to The GEO Group, Inc.	$	23,438		$	26,691		$	2,961		$	(29,670	)	$	23,420
Net income	$	23,438		$	26,691		$	2,979		$	(29,670	)	$	23,438
Other comprehensive income (loss), net of tax	—			40			(1,220		)	—			(1,180		)
Total comprehensive income	$	23,438		$	26,731		$	1,759		$	(29,670	)	$	22,258
Comprehensive income attributable to noncontrolling interests	—			—			23			—			23
Comprehensive income attributable to The GEO Group, Inc.	$	23,438		$	26,731		$	1,782		$	(29,670	)	$	22,281

CONDENSED CONSOLIDATING BALANCE SHEET

	As of March 31, 2014
	The GEO Group, Inc.			Combined Subsidiary Guarantors		Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	7,498		$	3,835	$	26,730		$	—		$	38,063
Restricted cash and investments	—			—		14,094			—			14,094
Accounts receivable, less allowance for doubtful accounts	95,584			160,974		19,206			—			275,764
Current deferred income tax assets	—			19,236		1,700			—			20,936
Prepaid expenses and other current assets	7,169			17,956		15,906			(1,154		)	39,877
Total current assets	110,251			202,001		77,636			(1,154		)	388,734
Restricted Cash and Investments	185			11,874		7,269			—			19,328
Property and Equipment, Net	687,560			954,677		84,632			—			1,726,869
Direct Finance Lease Receivable	—			—		15,869			—			15,869
Intercompany Receivable	932,983			142,703		(24		)	(1,075,662		)	—
Non-Current Deferred Income Tax Assets	—			—		4,821			—			4,821
Goodwill	34			493,189		688			—			493,911
Intangible Assets, Net	—			165,925		1,208			—			167,133
Investment in Subsidiaries	928,874			392,972		4			(1,321,850		)	—
Other Non-Current Assets	21,813			104,700		37,297			(79,687		)	84,123
Total Assets	$	2,681,700		$	2,468,041	$	229,400		$	(2,478,353	)	$	2,900,788
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable	$	7,970		$	40,770	$	3,657		$	—		$	52,397
Accrued payroll and related taxes	207			32,540		16,366			—			49,113
Accrued expenses and other	36,088			62,812		18,774			(1,154		)	116,520
Current portion of capital lease obligations, long-term debt and non-recourse debt	3,000			1,163		18,364			—			22,527
Current liabilities of discontinued operations	—			—		—			—			—
Total current liabilities	47,265			137,285		57,161			(1,154		)	240,557
Non-Current Deferred Income Tax Liabilities	(2,230		)	16,902		17			—			14,689
Intercompany Payable	133,555			927,791		14,315			(1,075,661		)	—
Other Non-Current Liabilities	5,516			140,148		5,566			(79,780		)	71,450
Capital Lease Obligations	—			10,665		—			—			10,665
Long-Term Debt	1,479,788			—		—			—			1,479,788
Non-Recourse Debt	—			—		65,377			—			65,377
Commitments & Contingencies and Other
Shareholders' Equity:
The GEO Group, Inc. Shareholders' Equity	1,017,806			1,235,250		86,508			(1,321,758		)	1,017,806
Noncontrolling Interests	—			—		456			—			456
Total Shareholders’ Equity	1,017,806			1,235,250		86,964			(1,321,758		)	1,018,262
Total Liabilities and Shareholders' Equity	$	2,681,700		$	2,468,041	$	229,400		$	(2,478,353	)	$	2,900,788

CONDENSED CONSOLIDATING BALANCE SHEET

(dollars in thousands)

	As of December 31, 2013
	The GEO Group, Inc.			Combined Subsidiary Guarantors		Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	30,730		$	985	$	20,410	$	—		$	52,125
Restricted cash and investments	—			—		11,518		—			11,518
Accounts receivable, less allowance for doubtful accounts	84,087			149,239		17,204		—			250,530
Current deferred income tax assets	—			19,236		1,700		—			20,936
Prepaid expenses and other current assets	17,834			21,032		11,524		(1,154		)	49,236
Total current assets	132,651			190,492		62,356		(1,154		)	384,345
Restricted Cash and Investments	167			11,158		7,024		—			18,349
Property and Equipment, Net	686,005			956,724		85,069		—			1,727,798
Direct Finance Lease Receivable	—			—		16,944		—			16,944
Intercompany Receivable	947,916			123,237		—		(1,071,153		)	—
Non-Current Deferred Income Tax Assets	—			—		4,821		—			4,821
Goodwill	34			489,501		661		—			490,196
Intangible Assets, Net	—			162,160		1,240		—			163,400
Investment in Subsidiaries	898,333			421,218		—		(1,319,551		)	—
Other Non-Current Assets	23,346			104,241		35,615		(79,691		)	83,511
Total Assets	$	2,688,452		$	2,458,731	$	213,730	$	(2,471,549	)	$	2,889,364
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable	$	29,866		$	13,895	$	3,525	$	—		$	47,286
Accrued payroll and related taxes	207			23,470		15,049		—			38,726
Accrued expenses and other	26,963			74,645		14,496		(1,154		)	114,950
Current portion of capital lease obligations, long-term debt and non-recourse debt	3,000			1,185		17,978		—			22,163
Total current liabilities	60,036			113,195		51,048		(1,154		)	223,125
Non-Current Deferred Income Tax Liabilities	(120		)	14,792		17		—			14,689
Intercompany Payable	114,208			942,666		14,279		(1,071,153		)	—
Other Non-Current Liabilities	5,270			138,743		639		(79,691		)	64,961
Capital Lease Obligations	—			10,924		—		—			10,924
Long-Term Debt	1,485,536			—		—		—			1,485,536
Non-Recourse Debt	—			—		66,153		—			66,153
Commitments & Contingencies and Other
Shareholders' Equity:
The GEO Group, Inc. Shareholders' Equity	1,023,522			1,238,411		81,140		(1,319,551		)	1,023,522
Noncontrolling Interests	—			—		454		—			454
Total Shareholders’ Equity	1,023,522			1,238,411		81,594		(1,319,551		)	1,023,976
Total Liabilities and Shareholders' Equity	$	2,688,452		$	2,458,731	$	213,730	$	(2,471,549	)	$	2,889,364

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

	For the Three Months Ended March 31, 2014
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Consolidated
Cash Flow from Operating Activities:
Net cash provided by operating activities	$	28,511		$	25,116		$	9,525		$	63,152
Cash Flow from Investing Activities:
Acquisition of Protocol, cash consideration	—			(13,000		)	—			(13,000		)
Proceeds from sale of property and equipment	—			165			—			165
Change in restricted cash and investments	(185		)	(549		)	(2,539		)	(3,273		)
Capital expenditures	(8,586		)	(8,642		)	(303		)	(17,531		)
Net cash used in investing activities	(8,771		)	(22,026		)	(2,842		)	(33,639		)
Cash Flow from Financing Activities:
Proceeds from long-term debt	103,000			—			—			103,000
Payments on long-term debt	(108,750		)	(240		)	(1,403		)	(110,393		)
Proceeds from reissuance of treasury stock in connection with ESPP	84			—			—			84
Tax benefit related to equity compensation	558			—			—			558
Proceeds from stock options exercised	3,275			—			—			3,275
Cash dividends paid	(41,139		)	—			—			(41,139		)
Net cash used in financing activities	(42,972		)	(240		)	(1,403		)	(44,615		)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	—			—			1,040			1,040
Net Increase (Decrease) in Cash and Cash Equivalents	(23,232		)	2,850			6,320			(14,062		)
Cash and Cash Equivalents, beginning of period	30,730			985			20,410			52,125
Cash and Cash Equivalents, end of period	$	7,498		$	3,835		$	26,730		$	38,063

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(dollars in thousands)

(unaudited)

	For the Three Months Ended March 31, 2013
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Consolidated
Cash Flow from Operating Activities:
Net cash provided by operating activities	8,032			26,708			10,697			45,437
Cash Flow from Investing Activities:
Acquisition of BI and Cornell, cash consideration, net of cash acquired	—			—			—			—
Proceeds from sale of property and equipment	—			4			—			4
Proceeds from sale of assets held for sale	—			1,602			—			1,602
Change in restricted cash and investments	(124		)	(1,145		)	3,599			2,330
Capital expenditures	(1,414		)	(9,624		)	(364		)	(11,402		)
Cash (used in) provided by investing activities - continuing operations	(1,538		)	(9,163		)	3,235			(7,466		)
Cash used in investing activities - discontinued operations	—			—			—			—
Net cash (used in) provided by investing activities	(1,538		)	(9,163		)	3,235			(7,466		)
Cash Flow from Financing Activities:
Proceeds from long-term debt	410,000			—			—			410,000
Payments on long-term debt	(351,153		)	(377		)	(6,908		)	(358,438		)
Proceeds from reissuance of treasury stock in connection with ESPP	66			—			—			66
Debt issuance costs	(5,650		)	—			—			(5,650		)
Tax benefit related to equity compensation	1,127			—			—			1,127
Proceeds from stock options exercised	3,049			—			—			3,049
Cash dividends paid	(35,711		)	—			—			(35,711		)
Net cash provided by (used in) financing activities	21,728			(377		)	(6,908		)	14,443
Effect of Exchange Rate Changes on Cash and Cash Equivalents	—			—			(445		)	(445		)
Net Increase in Cash and Cash Equivalents	28,222			17,168			6,579			51,969
Cash and Cash Equivalents, beginning of period	4,764			1,917			25,074			31,755
Cash and Cash Equivalents, end of period	$	32,986		$	19,085		$	31,653		$	83,724