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Business Segments and Geographic Information
 6 Months Ended
Jun. 30, 2019
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 GEO Secure Services segment (formerly known as U.S. Corrections & Detention); 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

Six Months Ended
 
June 30, 2019
 
June 30, 2018
 
June 30, 2019
 
June 30, 2018
Revenues:





 

GEO Secure Services
$
399,475


$
368,989


$
789,985

 
$
727,670

GEO Care
155,507


149,928


309,350

 
290,006

International Services
54,388


64,592


118,612

 
130,750

Facility Construction & Design [1]
4,596


—


6,686

 
—

Total revenues
$
613,966


$
583,509


$
1,224,633

 
$
1,148,426

Operating income from segments:





 

GEO Secure Services
$
83,865


$
77,318


$
160,789

 
$
146,506

GEO Care
41,661


35,139


80,199

 
66,831

International Services
2,920


1,942


8,659

 
7,344

Facility Construction & Design [1]
—


—


—

 
—

Operating income from segments
$
128,446


$
114,399


$
249,647

 
$
220,681

       General and Administrative Expenses
(47,271
)
 
(47,448
)
 
$
(93,695
)
 
(89,280
)
Total Operating Income
$
81,175

 
$
66,951

 
$
155,952

 
$
131,401


[1] In 2019, Facility Construction & Design revenues related to an expansion project at the Company's managed-only Fulham Correctional Centre in Australia which is expected to be completed in the third quarter of 2020.
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
 
Six Months Ended
 
June 30, 2019
 
June 30, 2018
 
June 30, 2019
 
June 30, 2018
Operating income from segments
$
128,446

 
$
114,399

 
$
249,647

 
$
220,681

Unallocated amounts:
 
 
 
 
 
 
 
General and Administrative Expenses
(47,271
)
 
(47,448
)
 
(93,695
)
 
(89,280
)
Net Interest Expense
(30,887
)
 
(27,678
)
 
(62,771
)
 
(54,448
)
Loss on Extinguishment of Debt
(5,741
)
 
(574
)
 
(5,741
)
 
(574
)
Income before income taxes and equity in earnings of affiliates
$
44,547

 
$
38,699

 
$
87,440

 
$
76,379



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 $1.2 million and $2.6 million in earnings, net of tax, for SACS operations during the three and six months ended June 30, 2019, and $2.1 million and $3.7 million in earnings, net of tax, for SACS operations during the three and six months ended June 30, 2018, respectively, which are included in equity in earnings of affiliates, net of income tax provision in the accompanying consolidated statements of operations. As of June 30, 2019 and December 31, 2018, the Company’s investment in SACS was $12.5 million and $13.4 million, respectively, and represents its share of cumulative reported earnings.

The Company has recorded $0.6 million and $1.8 million in earnings, net of tax, for GEO Amey's operations during the three months and six months ended June 30, 2019, and $0.2 million and $0.6 million in earnings, net of tax, for GEO Amey's operations during the three months and six months ended June 30, 2018, respectively, which are included in equity in earnings of affiliates, net of income tax provision in the accompanying consolidated statements of operations. As of June 30, 2019 and December 31, 2018, the Company’s investment in GEOAmey was $6.5 million and $4.8 million, respectively, and represents its share of cumulative reported earnings.