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Business Segments and Geographic Information
 9 Months Ended
Sep. 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; 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, 2019
 
September 30, 2018
 
September 30, 2019
 
September 30, 2018
Revenues:





 

GEO Secure Services
$
411,078


$
379,351


$
1,201,063

 
$
1,107,016

GEO Care
153,422


141,808


462,772

 
431,819

International Services
57,634


62,371


176,246

 
193,121

Facility Construction & Design [1]
9,445


—


16,131

 
—

Total revenues
$
631,579


$
583,530


$
1,856,212

 
$
1,731,956

Operating income from segments:





 

GEO Secure Services
$
85,085


$
77,885


$
248,462

 
$
224,386

GEO Care
36,325


35,959


113,936

 
102,795

International Services
5,211


3,583


13,870

 
10,927

Facility Construction & Design [1]
26


—


26

 
—

Operating income from segments
$
126,647


$
117,427


$
376,294

 
$
338,108

       General and Administrative Expenses
(48,488
)
 
(47,647
)
 
$
(142,183
)
 
(136,927
)
Total Operating Income
$
78,159

 
$
69,780

 
$
234,111

 
$
201,181


[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
 
Nine Months Ended
 
September 30, 2019
 
September 30, 2018
 
September 30, 2019
 
September 30, 2018
Operating income from segments
$
126,647

 
$
117,427

 
$
376,294

 
$
338,108

Unallocated amounts:
 
 
 
 
 
 
 
General and Administrative Expenses
(48,488
)
 
(47,647
)
 
(142,183
)
 
(136,927
)
Net Interest Expense
(29,959
)
 
(29,563
)
 
(92,730
)
 
(84,011
)
Gain (Loss) on Extinguishment of Debt
594

 
—

 
(5,147
)
 
(574
)
Income before income taxes and equity in earnings of affiliates
$
48,794

 
$
40,217

 
$
136,234

 
$
116,596



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 $3.8 million in earnings, net of tax, for SACS operations during the three and nine months ended September 30, 2019, and $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, 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, 2019 and December 31, 2018, the Company’s investment in SACS was $10.9 million and $13.4 million, respectively, and represents its share of cumulative reported earnings.

The Company has recorded $1.0 million and $2.8 million in earnings, net of tax, for GEO Amey's operations during the three and nine months ended September 30, 2019, and $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, 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, 2019 and December 31, 2018, the Company’s investment in GEOAmey was $7.3 million and $4.8 million, respectively, and represents its share of cumulative reported earnings.