Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(dollars in thousands)

(unaudited)

	For the Three Months Ended March 31, 2017
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	178,173		$	413,194		$	101,484		$	(142,237	)	$	550,614
Operating expenses	132,167			337,999			86,778			(142,237		)	414,707
Depreciation and amortization	6,150			21,875			924			—			28,949
General and administrative expenses	13,667			20,981			7,938			—			42,586
Operating income	26,189			32,339			5,844			—			64,372
Interest income	3,354			820			11,828			(4,025		)	11,977
Interest expense	(15,792		)	(12,485		)	(10,748		)	4,025			(35,000		)
Income before income taxes and equity in earnings of affiliates	13,751			20,674			6,924			—			41,349
Income tax provision	147			1,453			870			—			2,470
Equity in earnings of affiliates, net of income tax provision	—			—			1,487			—			1,487
Income before equity in income of consolidated subsidiaries	13,604			19,221			7,541			—			40,366
Income from consolidated subsidiaries, net of income tax provision	26,762			—			—			(26,762		)	—
Net income	40,366			19,221			7,541			(26,762		)	40,366
Net loss attributable to noncontrolling interests	—			—			37			—			37
Net income attributable to The GEO Group, Inc.	$	40,366		$	19,221		$	7,578		$	(26,762	)	$	40,403
Net income	$	40,366		$	19,221		$	7,541		$	(26,762	)	$	40,366
Other comprehensive income, net of tax	—			47			1,213			—			1,260
Total comprehensive income	$	40,366		$	19,268		$	8,754		$	(26,762	)	$	41,626
Comprehensive loss attributable to noncontrolling interests	—			—			35			—			35
Comprehensive income attributable to The GEO Group, Inc.	$	40,366		$	19,268		$	8,789		$	(26,762	)	$	41,661

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(dollars in thousands)

(unaudited)

	For the Three Months Ended March 31, 2016
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	167,637		$	400,342		$	80,965		$	(138,759	)	$	510,185
Operating expenses	137,910			319,904			69,451			(138,759		)	388,506
Depreciation and amortization	6,262			21,233			956			—			28,451
General and administrative expenses	7,975			19,966			6,120			—			34,061
Operating income	15,490			39,239			4,438			—			59,167
Interest income	5,441			609			4,657			(6,150		)	4,557
Interest expense	(16,357		)	(13,944		)	(5,215		)	6,150			(29,366		)
Income before income taxes and equity in earnings of affiliates	4,574			25,904			3,880			—			34,358
Income tax provision	10			2,191			950			—			3,151
Equity in earnings of affiliates, net of income tax provision	—			—			1,119			—			1,119
Income before equity in income of consolidated subsidiaries	4,564			23,713			4,049			—			32,326
Income from consolidated subsidiaries, net of income tax provision	27,763			—			—			(27,763		)	—
Net income	32,327			23,713			4,049			(27,763		)	32,326
Net loss attributable to noncontrolling interests	—			—			24			—			24
Net income attributable to The GEO Group, Inc.	$	32,327		$	23,713		$	4,073		$	(27,763	)	$	32,350
Net income	$	32,327		$	23,713		$	4,049		$	(27,763	)	$	32,326
Other comprehensive income (loss), net of tax	—			33			(931		)	—			(898		)
Total comprehensive income	$	32,327		$	23,746		$	3,118		$	(27,763	)	$	31,428
Comprehensive loss attributable to noncontrolling interests	—			—			16			—			16
Comprehensive income attributable to The GEO Group, Inc.	$	32,327		$	23,746		$	3,134		$	(27,763	)	$	31,444

CONDENSED CONSOLIDATING BALANCE SHEET

CONDENSED CONSOLIDATING BALANCE SHEET

(dollars in thousands)

(unaudited)

	As of March 31, 2017
	The GEO Group, Inc.			Combined Subsidiary Guarantors		Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	399,480		$	7,554	$	27,525		$	—		$	434,559
Restricted cash and investments	1,269			—		15,570			—			16,839
Accounts receivable, less allowance for doubtful accounts	117,889			171,189		18,413			—			307,491
Contract receivable, current portion	—			—		237,649			—			237,649
Prepaid expenses and other current assets	508			23,978		4,506			—			28,992
Total current assets	519,146			202,721		303,663			—			1,025,530
Restricted Cash and Investments	(1,079		)	21,047		1,711			—			21,678
Property and Equipment, Net	735,780			1,088,196		85,722			—			1,909,698
Non-Current Contract Receivable	—			—		302,836			—			302,836
Intercompany Receivable	922,070			118,807		28,252			(1,069,129		)	—
Non-Current Deferred Income Tax Assets	764			17,461		11,814			—			30,039
Goodwill	79			614,941		438			—			615,458
Intangible Assets, Net	—			198,066		744			—			198,810
Investment in Subsidiaries	1,224,749			453,583		2,190			(1,680,522		)	—
Other Non-Current Assets	14,118			108,416		20,185			(79,753		)	62,966
Total Assets	$	3,415,626		$	2,823,238	$	757,555		$	(2,829,404	)	$	4,167,015
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable	$	12,896		$	45,108	$	26,854		$	—		$	84,858
Accrued payroll and related taxes	—			35,468		15,814			—			51,282
Accrued expenses and other current liabilities	40,514			65,159		14,235			—			119,908
Current portion of capital lease obligations, long-term debt and non-recourse debt	8,000			1,742		245,381			—			255,123
Total current liabilities	61,410			147,477		302,284			—			511,171
Intercompany Payable	109,991			924,252		34,886			(1,069,129		)	—
Other Non-Current Liabilities	4,746			145,585		18,730			(79,753		)	89,308
Capital Lease Obligations	—			7,098		—			—			7,098
Long-Term Debt	2,000,819			—		88,680			—			2,089,499
Non-Recourse Debt	—			—		224,291			—			224,291
Commitments & Contingencies and Other
Shareholders' Equity:
The GEO Group, Inc. Shareholders' Equity	1,238,660			1,598,826		88,818			(1,680,522		)	1,245,782
Noncontrolling Interests	—			—		(134		)	—			(134		)
Total Shareholders’ Equity	1,238,660			1,598,826		88,684			(1,680,522		)	1,245,648
Total Liabilities and Shareholders' Equity	$	3,415,626		$	2,823,238	$	757,555		$	(2,829,404	)	$	4,167,015

CONDENSED CONSOLIDATING BALANCE SHEET

(dollars in thousands)

	As of December 31, 2016
	The GEO Group, Inc.		Combined Subsidiary Guarantors		Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	45,566	$	842	$	21,630		$	—		$	68,038
Restricted cash and investments	—		—		17,133			—			17,133
Accounts receivable, less allowance for doubtful accounts	139,571		200,239		16,445			—			356,255
Contract receivable, current portion	—		—		224,033			—			224,033
Prepaid expenses and other current assets	677		24,096		7,437			—			32,210
Total current assets	185,814		225,177		286,678			—			697,669
Restricted Cash and Investments	170		19,742		936			—			20,848
Property and Equipment, Net	735,104		1,078,220		83,917			—			1,897,241
Non-Current Contract Receivable	—		—		219,783						219,783
Intercompany Receivable	918,527		141,987		27,290			(1,087,804		)	—
Non-Current Deferred Income Tax Assets	764		17,918		11,357			—			30,039
Goodwill	79		614,941		413			—			615,433
Intangible Assets, Net	—		203,138		746			—			203,884
Investment in Subsidiaries	1,238,772		453,635		2,190			(1,694,597		)	—
Other Non-Current Assets	15,011		108,434		20,933			(79,866		)	64,512
Total Assets	$	3,094,241	$	2,863,192	$	654,243		$	(2,862,267	)	$	3,749,409
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable	$	8,402	$	50,200	$	21,035		$	—		$	79,637
Accrued payroll and related taxes	—		41,230		14,030			—			55,260
Accrued expenses and other current liabilities	36,792		83,906		10,398			—			131,096
Current portion of capital lease obligations, long-term debt and non-recourse debt	3,000		1,700		233,365			—			238,065
Total current liabilities	48,194		177,036		278,828			—			504,058
Intercompany Payable	133,039		920,825		33,940			(1,087,804		)	—
Other Non-Current Liabilities	2,487		144,383		21,652			(79,866		)	88,656
Capital Lease Obligations	—		7,431		—			—			7,431
Long-Term Debt	1,935,465		—		—			—			1,935,465
Non-Recourse Debt	—		—		238,842			—			238,842
Commitments & Contingencies and Other
Shareholders' Equity:	—		—		—
The GEO Group, Inc. Shareholders' Equity	975,056		1,613,517		81,080			(1,694,597		)	975,056
Noncontrolling Interests	—		—		(99		)	—			(99		)
Total Shareholders’ Equity	975,056		1,613,517		80,981			(1,694,597		)	974,957
Total Liabilities and Shareholders' Equity	$	3,094,241	$	2,863,192	$	654,243		$	(2,862,267	)	$	3,749,409

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(dollars in thousands)

(unaudited)

	For the Three Months Ended March 31, 2017
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Consolidated
Cash Flow from Operating Activities:
Net cash provided by (used in) operating activities	$	(22,988	)	$	35,079		$	35,791		$	47,882
Cash Flow from Investing Activities:
Proceeds from sale of property and equipment	689			—			—			689
Change in restricted cash and investments	(19		)	(1,305		)	1,349			25
Capital expenditures	(5,404		)	(27,062		)	(1,955		)	(34,421		)
Net cash used in investing activities	(4,734		)	(28,367		)	(606		)	(33,707		)
Cash Flow from Financing Activities:
Proceeds from long-term debt	1,083,148			—			—			1,083,148
Payments on long-term debt	(918,500		)	—			—			(918,500		)
Payments on non-recourse debt	—			—			(67,171		)	(67,171		)
Proceeds from non-recourse debt	—			—			36,020			36,020
Taxes paid related to net share settlements of equity awards	(3,434		)	—			—			(3,434		)
Proceeds from issuance of common stock in connection with ESPP	—						122			122
Proceeds from issuance of common stock under prospectus supplement	276,036			—			—			276,036
Debt issuance costs	(6,992		)	—			(379		)	(7,371		)
Proceeds from stock options exercised	3,882			—			—			3,882
Dividends paid	(52,504		)				—			(52,504		)
Net cash (used in) provided by financing activities	381,636			—			(31,408		)	350,228
Effect of Exchange Rate Changes on Cash and Cash Equivalents	—			—			2,118			2,118
Net Increase in Cash and Cash Equivalents	353,914			6,712			5,895			366,521
Cash and Cash Equivalents, beginning of period	45,566			842			21,630			68,038
Cash and Cash Equivalents, end of period	$	399,480		$	7,554		$	27,525		$	434,559

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(dollars in thousands)

(unaudited)

	For the Three Months Ended March 31, 2016
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Consolidated
Cash Flow from Operating Activities:
Net cash (used in) provided by operating activities	$	(221	)	$	25,317		$	(42,623	)	$	(17,527	)
Cash Flow from Investing Activities:
Proceeds from sale of property and equipment	—			18			—			18
Change in restricted cash and investments	90			(956		)	(40,171		)	(41,037		)
Capital expenditures	(3,567		)	(24,379		)	(483		)	(28,429		)
Net cash used in investing activities	(3,477		)	(25,317		)	(40,654		)	(69,448		)
Cash Flow from Financing Activities:
Taxes paid related to net share settlements of equity awards	(1,717		)	—			—			(1,717		)
Proceeds from long-term debt	117,000			—			—			117,000
Payments on long-term debt	(88,756		)				—			(88,756		)
Payments on non-recourse debt	—			—			(1,613		)	(1,613		)
Proceeds from non-recourse debt	—			—			71,242			71,242
Proceeds from issuance of common stock in connection with ESPP	—			—			2,357			2,357
Debt issuance costs	—			—			(1,505		)	(1,505		)
Tax benefit related to equity compensation	(818		)	—			—			(818		)
Proceeds from stock options exercised	979			—			—			979
Dividends paid	(48,509		)	—			—			(48,509		)
Net cash (used in) provided by financing activities	(21,821		)	—			70,481			48,660
Effect of Exchange Rate Changes on Cash and Cash Equivalents	—			—			1,902			1,902
Net Decrease in Cash and Cash Equivalents	(25,519		)	—			(10,894		)	(36,413		)
Cash and Cash Equivalents, beginning of period	37,077			—			22,561			59,638
Cash and Cash Equivalents, end of period	$	11,558		$	—		$	11,667		$	23,225