Business Segments and Geographic Information

6 Months Ended

Jun. 30, 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				Six Months Ended
	June 30, 2014		June 30, 2013		June 30, 2014		June 30, 2013
Revenues:
U.S. Corrections & Detention	$	276,183	$	254,043	$	542,898	$	502,815
GEO Community Services	82,461		75,072		159,113		149,013
International Services	54,199		52,538		103,969		106,856
Total revenues	$	412,843	$	381,653	$	805,980	$	758,684
Operating income:
U.S. Corrections & Detention	$	64,723	$	56,631	$	123,533	$	110,723
GEO Community Services	21,958		18,854		37,659		36,259
International Services	2,356		3,265		4,917		5,067
Operating income from segments	$	89,037	$	78,750	$	166,109	$	152,049

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						Six Months Ended
	June 30, 2014			June 30, 2013			June 30, 2014			June 30, 2013
Total operating income from segments	$	89,037		$	78,750		$	166,109		$	152,049
Unallocated amounts:
General and Administrative Expenses	(28,148		)	(27,363		)	(56,650		)	(59,403		)
Net Interest Expense	(19,778		)	(19,938		)	(39,698		)	(38,095		)
Loss on Extinguishment of Debt	—			(5,527		)	—			(5,527		)
Income before income taxes and equity in earnings of affiliates	$	41,111		$	25,922		$	69,761		$	49,024

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 $2.3 million in earnings, net of tax, for SACS operations during the three and six months ended June 30, 2014, respectively, and $1.3 million and $2.5 million during the three and six months ended June 30, 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 June 30, 2014 and December 31, 2013, the Company’s investment in SACS was $9.9 million and $8.1 million, respectively.

The Company has recorded less than $0.1 million and $0.3 million in earnings, net of tax, for GEOAmey’s operations during the three and six months ended June 30, 2014, respectively and $(0.2) million and $(0.3) million in losses during the three and six months ended June 30, 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 June 30, 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.)