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Business Segments and Geographic Information
3 Months Ended
Mar. 31, 2016
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 Care segment; the International Services segment; and the Facility Construction & Design segment. The Company's segment revenues from external customers and a measure of segment profit are as follows (in thousands):
 
 
Three Months Ended
 
 
March 31, 2016
 
March 31, 2015
 
Revenues:
 
 
 
 
U.S. Corrections & Detention
$
338,370

 
$
285,609

 
GEO Care
93,414

 
79,356

 
International Services
37,555

 
40,654

 
Facility Construction & Design (1)
40,846

 
21,750

 
Total revenues
$
510,185

 
$
427,369

 
Operating income:
 
 
 
 
U.S. Corrections & Detention
$
66,919

 
$
63,597

 
GEO Care
23,971

 
18,506

 
International Services
1,762

 
1,815

 
Facility Construction & Design (1)
576

 
602

 
Operating income from segments
$
93,228

 
$
84,520

 

(1) In September 2014, the Company began the design and construction of a new prison contract located in Ravenhall, a locality near Melbourne, Australia. During the design and construction phase, the Company recognizes revenue as earned on a percentage of completion basis measured by the percentage of costs incurred to date as compared to estimated total costs for the design and construction of the facility. Costs incurred and estimated earnings in excess of billings is classified as Contract Receivable in the accompanying consolidated balance sheets and is recorded at the net present value based on the timing of expected future settlement. A portion of the Contract Receivable will be paid by the State upon commercial acceptance of the prison and the remainder will be paid quarterly over the life of the contract. Refer to Note 8 - Derivative Financial Instruments and Note 9 - Debt for additional information.
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, 2016
 
March 31, 2015
 
Total operating income from segments
$
93,228

 
$
84,520

 
Unallocated amounts:
 
 
 
 
General and Administrative Expenses
(34,061
)
 
(31,848
)
 
Net Interest Expense
(24,809
)
 
(22,573
)
 
Income before income taxes and equity in earnings of affiliates
$
34,358

 
$
30,099

 

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. The Company's 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 $0.9 million in earnings, net of tax, for SACS operations during the three months ended March 31, 2016, and $1.1 million in earnings, net of tax, for SACS operations during the three months ended March 31, 2015, 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, 2016 and December 31, 2015, the Company’s investment in SACS was $9.9 million and $9.0 million, respectively.

The Company has recorded $0.3 million and $0.4 million in earnings, net of tax, for GEOAmey's operations during the three months ended March 31, 2016 and 2015, respectively, net of income tax provision, in the accompanying consolidated statements of operations. As of March 31, 2016 and December 31, 2015, the Company’s investment in GEOAmey was $(0.9) million and $(1.2) 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.