Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2018

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, 2018
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	195,630		$	458,728		$	68,806		$	(158,247	)	$	564,917
Operating expenses	151,822			377,966			55,168			(158,247		)	426,709
Depreciation and amortization	6,460			24,443			1,023			—			31,926
General and administrative expenses	14,341			22,447			5,044			—			41,832
Operating income	23,007			33,872			7,571			—			64,450
Interest income	4,177			1,417			9,384			(5,879		)	9,099
Interest expense	(18,622		)	(14,460		)	(8,666		)	5,879			(35,869		)
Income before income taxes and equity in earnings of affiliates	8,562			20,829			8,289			—			37,680
Income tax provision	177			2,300			2,278			—			4,755
Equity in earnings of affiliates, net of income tax provision	—			—			1,995			—			1,995
Income before equity in income of consolidated subsidiaries	8,385			18,529			8,006			—			34,920
Income from consolidated subsidiaries, net of income tax provision	26,535			—			—			(26,535		)	—
Net income	34,920			18,529			8,006			(26,535		)	34,920
Net loss attributable to noncontrolling interests	—			—			67			—			67
Net income attributable to The GEO Group, Inc.	$	34,920		$	18,529		$	8,073		$	(26,535	)	$	34,987
Net income	$	34,920		$	18,529		$	8,006		$	(26,535	)	$	34,920
Other comprehensive income, net of tax	—			105			1,257			—			1,362
Total comprehensive income	$	34,920		$	18,634		$	9,263		$	(26,535	)	$	36,282
Comprehensive loss attributable to noncontrolling interests	—			—			59			—			59
Comprehensive income attributable to The GEO Group, Inc.	$	34,920		$	18,634		$	9,322		$	(26,535	)	$	36,341

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 BALANCE SHEET

CONDENSED CONSOLIDATING BALANCE SHEET

(dollars in thousands)

(unaudited)

	As of March 31, 2018
	The GEO Group, Inc.		Combined Subsidiary Guarantors		Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	10,396	$	13,307	$	25,532		$	—		$	49,235
Restricted cash and cash equivalents	6,422		—		50,466			—			56,888
Accounts receivable, less allowance for doubtful accounts	136,290		208,114		40,233			—			384,637
Contract receivable, current portion	—		—		14,285			—			14,285
Prepaid expenses and other current assets	2,036		19,830		9,311			—			31,177
Total current assets	155,144		241,251		139,827			—			536,222
Restricted Cash and Investments	—		21,669		2,725			—			24,394
Property and Equipment, Net	803,053		1,208,315		90,643			—			2,102,011
Non-Current Contract Receivable	—		—		407,938			—			407,938
Intercompany Receivable	988,910		120,288		26,598			(1,135,796		)	—
Non-Current Deferred Income Tax Assets	863		23,913		1,501			—			26,277
Goodwill	—		775,955		440			—			776,395
Intangible Assets, Net	—		248,469		847			—			249,316
Investment in Subsidiaries	1,514,148		458,228		2,190			(1,974,566		)	—
Other Non-Current Assets	10,237		112,458		27,289			(79,228		)	70,756
Total Assets	$	3,472,355	$	3,210,546	$	699,998		$	(3,189,590	)	$	4,193,309
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable	$	14,592	$	63,564	$	6,154		$	—		$	84,310
Accrued payroll and related taxes	—		38,308		19,610			—			57,918
Accrued expenses and other current liabilities	46,744		106,129		28,262			—			181,135
Current portion of capital lease obligations, long-term debt and non-recourse debt	8,000		1,902		15,287			—			25,189
Total current liabilities	69,336		209,903		69,313			—			348,552
Non-Current Deferred Income Tax Liabilities	—		—		8,757			—			8,757
Intercompany Payable	111,828		988,221		35,747			(1,135,796		)	—
Other Non-Current Liabilities	1,336		156,465		13,713			(79,228		)	92,286
Capital Lease Obligations	—		5,698		—			—			5,698
Long-Term Debt	2,150,902		—		89,155			—			2,240,057
Non-Recourse Debt	—		—		359,387			—			359,387
Commitments & Contingencies and Other
Shareholders' Equity:
The GEO Group, Inc. Shareholders' Equity	1,138,953		1,850,259		124,307			(1,974,566		)	1,138,953
Noncontrolling Interests	—		—		(381		)	—			(381		)
Total Shareholders’ Equity	1,138,953		1,850,259		123,926			(1,974,566		)	1,138,572
Total Liabilities and Shareholders' Equity	$	3,472,355	$	3,210,546	$	699,998		$	(3,189,590	)	$	4,193,309

CONDENSED CONSOLIDATING BALANCE SHEET

(dollars in thousands)

	As of December 31, 2017
	The GEO Group, Inc.		Combined Subsidiary Guarantors		Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	54,666	$	—	$	26,711		$	—		$	81,377
Restricted cash and cash equivalents	—		—		44,932			—			44,932
Accounts receivable, less allowance for doubtful accounts	130,354		225,029		34,533			—			389,916
Contract receivable, current portion	—		—		18,142			—			18,142
Prepaid expenses and other current assets	2,589		24,163		18,590			—			45,342
Total current assets	187,609		249,192		142,908			—			579,709
Restricted Cash and Investments	—		25,715		2,284			—			27,999
Property and Equipment, Net	777,404		1,209,816		90,903			—			2,078,123
Assets Held for Sale	—		3,915		—			—			3,915
Non-Current Contract Receivable	—		—		404,309						404,309
Intercompany Receivable	1,130,189		88,534		28,218			(1,246,941		)	—
Non-Current Deferred Income Tax Assets	863		23,913		1,501			—			26,277
Goodwill	—		778,504		447			—			778,951
Intangible Assets, Net	—		254,531		808			—			255,339
Investment in Subsidiaries	1,336,665		456,076		2,190			(1,794,931		)	—
Other Non-Current Assets	11,141		115,330		25,210			(79,395		)	72,286
Total Assets	$	3,443,871	$	3,205,526	$	698,778		$	(3,121,267	)	$	4,226,908
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable	$	20,643	$	65,475	$	6,469		$	—		$	92,587
Accrued payroll and related taxes	—		51,780		19,952			—			71,732
Accrued expenses and other current liabilities	40,344		115,636		20,344			—			176,324
Current portion of capital lease obligations, long-term debt and non-recourse debt	8,000		1,870		19,050			—			28,920
Total current liabilities	68,987		234,761		65,815			—			369,563
Non-Current Deferred Income Tax Liabilities	—		—		8,757			—			8,757
Intercompany Payable	79,984		1,129,590		37,367			(1,246,941		)	—
Other Non-Current Liabilities	4,674		157,200		14,223			(79,395		)	96,702
Capital Lease Obligations	—		6,059		—			—			6,059
Long-Term Debt	2,090,985		—		90,559			—			2,181,544
Non-Recourse Debt	—		—		365,364			—			365,364
Commitments & Contingencies and Other
Shareholders' Equity:
The GEO Group, Inc. Shareholders' Equity	1,199,241		1,677,916		117,015			(1,794,931		)	1,199,241
Noncontrolling Interests	—		—		(322		)	—			(322		)
Total Shareholders’ Equity	1,199,241		1,677,916		116,693			(1,794,931		)	1,198,919
Total Liabilities and Shareholders' Equity	$	3,443,871	$	3,205,526	$	698,778		$	(3,121,267	)	$	4,226,908

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(dollars in thousands)

(unaudited)

	For the Three Months Ended March 31, 2018
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Consolidated
Cash Flow from Operating Activities:
Net cash provided by operating activities	$	39,888		$	17,614		$	7,599		$	65,101
Cash Flow from Investing Activities:
Proceeds from sale of assets held for sale				3,797						3,797
Insurance proceeds - damaged property	—			4,504			—			4,504
Change in restricted investments	—			(505		)	—			(505		)
Capital expenditures	(34,360		)	(16,654		)	(1,133		)	(52,147		)
Net cash used in investing activities	(34,360		)	(8,858		)	(1,133		)	(44,351		)
Cash Flow from Financing Activities:
Proceeds from long-term debt	102,000			—			—			102,000
Payments on long-term debt	(43,000		)	—			—			(43,000		)
Payments on non-recourse debt	—			—			(5,600		)	(5,600		)
Taxes paid related to net share settlements of equity awards	(4,356		)	—			—			(4,356		)
Payment for repurchases of common stock	(40,182		)	—			—			(40,182		)
Proceeds from issuance of common stock in connection with ESPP	140			—			—			140
Proceeds from stock options exercised	260			—			—			260
Dividends paid	(58,238		)				—			(58,238		)
Net cash used in financing activities	(43,376		)	—			(5,600		)	(48,976		)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash and Cash Equivalents	—			—			3,930			3,930
Net (Decrease) Increase in Cash. Cash Equivalents and Restricted Cash and Cash Equivalents	(37,848		)	8,756			4,796			(24,296		)
Cash, Cash Equivalents and Restricted Cash and Cash Equivalents, beginning of period	54,666			4,952			73,927			133,545
Cash,Cash Equivalents and Restricted Cash and Cash Equivalents, end of period	$	16,818		$	13,708		$	78,723		$	109,249

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 investments	—			(2,058		)	—			(2,058		)
Capital expenditures	(5,404		)	(27,062		)	(1,955		)	(34,421		)
Cash used in by investing activities	(4,715		)	(29,120		)	(1,955		)	(35,790		)
Net cash used in investing activities
Cash Flow from Financing Activities:
Proceeds from long-term debt	1,083,148			—			—			1,083,148
Taxes paid related to net share settlements of equity awards	(3,434		)	—			—			(3,434		)
Payments on long-term debt	(918,500		)	—			—			(918,500		)
Payments on non-recourse debt	—			—			(67,171		)	(67,171		)
Proceeds from stock options exercised	3,882			—			—			3,882
Proceeds from non-recourse debt	—			—			36,020			36,020
Proceeds from issuance of common stock in connection with ESPP	—						122			122
Dividends paid	(52,504		)				—			(52,504		)
Issuance of common stock under prospectus supplement	276,036			—			—			276,036
Debt issuance costs	(6,992		)	—			(379		)	(7,371		)
Net cash provided by (used in) financing activities	381,636			—			(31,408		)	350,228
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash and Cash Equivalents	—			—			2,679			2,679
Net Increase in Cash, Cash Equivalents and Restricted Cash and Cash Equivalents	353,933			5,959			5,107			364,999
Cash, Cash Equivalents and Restricted Cash and Cash Equivalents, beginning of period	45,736			4,922			39,699			90,357
Cash, Cash Equivalents and Restricted Cash and Cash Equivalents, end of period	$	399,669		$	10,881		$	44,806		$	455,356