XML 35 R19.htm IDEA: XBRL DOCUMENT v3.10.0.1
Financial Instruments
12 Months Ended
Dec. 31, 2018
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]  
Financial Instruments
Financial Instruments

The following table provides a summary of the Company’s significant financial assets and liabilities carried at fair value and measured on a recurring basis (in thousands):
 
 
 
 
 
Fair Value Measurements at December 31, 2018
 
 
Carrying Value at December 31, 2018
 
Quoted Prices in
Active Markets
(Level 1)
 
Significant Other
Observable  Inputs
(Level 2)
 
Significant
Unobservable
Inputs (Level 3)
Assets:
 
 
 
 
 
 
 
 
Restricted investments:
 

 

 

 

Rabbi Trust
 
$
20,892

 
$

 
$
20,892

 
$

Fixed income securities
 
1,801

 

 
1,801

 

Liabilities:
 
 
 
 
 
 
 
 
Interest rate swap derivatives
 
$
8,638

 
$

 
$
8,638

 
$


 
 
 
 
Fair Value Measurements at December 31, 2017
 
 
Carrying Value at December 31, 2017
 
Quoted Prices in
Active Markets
(Level 1)
 
Significant Other
Observable  Inputs
(Level 2)
 
Significant
Unobservable
Inputs (Level 3)
Assets:
 
 
 
 
 
 
 
 
Restricted investments:
 

 

 

 

    Rabbi Trust
 
$
20,763

 
$

 
$
20,763

 
$

Fixed income securities
 
1,902

 

 
1,902

 

Liabilities:
 
 
 
 
 
 
 
 
Interest rate swap derivatives
 
$
13,992

 
$

 
$
13,992

 
$


The Company’s level 2 financial instruments included in the tables above as of December 31, 2018 and 2017 consist of the Company’s rabbi trust established for GEO employee and employer contributions to The GEO Group, Inc. Non-qualified Deferred Compensation Plan, interest rate swaps held by our Australian subsidiaries and an investment in Canadian dollar denominated fixed income securities. The Company's restricted investment in the Rabbi Trust is invested in Company owned life insurance policies which are recorded at their cash surrender values. These investments are valued based on the underlying investments held in the policies' separate account. The Australian subsidiaries' interest rate swaps are valued using a discounted cash flow model based on projected Australian borrowing rates. The Canadian dollar denominated securities, not actively traded, are valued using quoted rates for these and similar securities.
During the year ended December 31, 2018, the Company transferred certain accounts receivable balances that had a carrying value of approximately $6.9 million to an unrelated third party. The transfer was accounted for as a sale and the Company has no continuing involvement with the transferred assets. The Company received cash proceeds in connection with the sale of approximately $6.9 million, and as such, there was no gain or loss in connection with the transaction. In February 2019, under the same terms, the Company transferred additional accounts receivable balances that had a carrying value of approximately $3.0 million.