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Business Segments and Geographic Information
9 Months Ended
Sep. 30, 2018
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

Nine Months Ended
 
September 30, 2018

September 30, 2017

September 30, 2018
 
September 30, 2017
Revenues:





 

U.S. Corrections & Detention
$
379,351


$
365,071


$
1,107,016

 
$
1,073,840

GEO Care
141,808


134,610


431,819

 
377,740

International Services
62,371


45,641


193,121

 
130,261

Facility Construction & Design [1]


21,437



 
112,602

Total revenues
$
583,530


$
566,759


$
1,731,956

 
$
1,694,443

Operating income (loss) from segments:





 

U.S. Corrections & Detention
$
77,885


$
77,551


$
224,386

 
$
224,838

GEO Care
35,959


31,293


102,795

 
94,062

International Services
3,583


3,410


10,927

 
8,413

Facility Construction & Design [1]


(278
)


 
(1,620
)
Operating income from segments
$
117,427


$
111,976


$
338,108

 
$
325,693


[1] Facility Construction & Design activity related to the Company's Ravenhall correctional facility project which was completed during the fourth quarter of 2017.
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
 
Nine Months Ended
 
September 30, 2018
 
September 30, 2017
 
September 30, 2018
 
September 30, 2017
Total operating income from segments
$
117,427

 
$
111,976

 
$
338,108

 
$
325,693

Unallocated amounts:
 
 
 
 
 
 
 
General and Administrative Expenses
(47,647
)
 
(49,074
)
 
(136,927
)
 
(143,866
)
Net Interest Expense
(29,563
)
 
(24,071
)
 
(84,585
)
 
(70,731
)
Income before income taxes and equity in earnings of affiliates
$
40,217

 
$
38,831

 
$
116,596

 
$
111,096



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 $2.2 million and $5.9 million in earnings, net of tax, for SACS operations during the three and nine months ended September 30, 2018, and $1.1 million and $3.4 million in earnings, net of tax, for SACS operations during the three months and nine months ended September 30, 2017, respectively, which are included in equity in earnings of affiliates, net of income tax provision in the accompanying consolidated statements of operations. As of September 30, 2018 and December 31, 2017, the Company’s investment in SACS was $12.8 million and $18.1 million, respectively, and represents its share of cumulative reported earnings.

The Company has recorded $0.6 million and $1.2 million in earnings, net of tax, for GEO Amey's operations during the three and nine months ended September 30, 2018, and $0.2 million and $0.8 million for the three and nine months ended September 30, 2017, respectively, which are included in equity in earnings of affiliates, net of income tax provision in the accompanying consolidated statements of operations. As of September 30, 2018 and December 31, 2017, the Company’s investment in GEOAmey was $3.9 million and $2.7 million, respectively, and represents its share of cumulative reported earnings.