Shareholders' Equity (Tables)

6 Months Ended

Jun. 30, 2020

Changes in Shareholders' Equity that are Attributable to the Company's Shareholders and to Noncontrolling Interests

The following table presents the changes in shareholders’ equity that are attributable to the Company’s shareholders and to noncontrolling interests for the three and six months ended June 30, 2020 and 2019 (in thousands):

	Common shares					Additional Paid-In			Distributions in Excess of			Accumulated Other Comprehensive			Treasury shares					Noncontrolling			Total Shareholders'
	Shares			Amount		Capital			Earnings			Loss			Shares		Amount			Interests			Equity
For the Three Months Ended June 30, 2020
Balance, March 31, 2020		121,386		$	1,262	$	1,247,068		$	(152,301	)	$	(33,499	)		4,764	$	(104,184	)	$	(890	)	$	957,456
Stock-based compensation expense		—			—		4,706			—			—			—		—			—			4,706
Restricted stock canceled		(5	)		—		—			—			—			—		—			—			—
Dividends paid [1]		—			—		—			(58,457	)		—			—		—			—			(58,457	)
Other adjustment to additional paid-in capital [2]		—			—		273			—			—			—		—			—			273
Purchase of treasury shares [2]		(23	)		—		—			—			—			23		(273	)		—			(273	)
Shares withheld for net settlements of share- based awards [3]		—			—		(156	)		—			—			—		—			—			(156	)
Issuance of common stock - ESPP		13			—		146			—			—			—		—			—			146
Net income (loss)		—			—		—			36,720			—			—		—			(66	)		36,654
Other comprehensive income (loss)		—			—		—			—			3,945			—		—			1			3,946
Balance, June 30, 2020		121,371		$	1,262	$	1,252,037		$	(174,038	)	$	(29,554	)		4,787	$	(104,457	)	$	(955	)	$	944,295

	Common shares					Additional Paid-In		Distributions in Excess of			Accumulated Other Comprehensive			Treasury shares					Noncontrolling			Total Shareholders'
	Shares			Amount		Capital		Earnings			Loss			Shares		Amount			Interests			Equity
For the Three Months Ended June 30, 2019
Balance, March 31, 2019		121,187		$	1,254	$	1,213,922	$	(71,076	)	$	(21,366	)		4,210	$	(95,175	)	$	(655	)	$	1,026,904
Proceeds from exercise of stock options		42			—		739		—			—			—		—			—			739
Stock-based compensation expense		—			—		5,453		—			—			—		—			—			5,453
Restricted stock granted		10			—		—		—			—			—		—			—			-
Restricted stock canceled		(32	)		—		—		—			—			—		—			—			-
Dividends paid [1]		—			—		—		(58,177	)		—			—		—			—			(58,177	)
Shares withheld for net settlements of share- based awards [3]		—			—		—		—			—			—		—			—			-
Transition adjustment for accounting standard adoption [4]		—			—		—		—			—			—		—			—			-
Issuance of common stock - ESPP		6			—		128		—			—			—		—			—			128
Net income (loss)		—			—		—		41,914			—			—		—			(78	)		41,836
Other comprehensive income (loss)		—			—		—		—			4,650			—		—			5			4,655
Balance, June 30, 2019		121,213		$	1,254	$	1,220,242	$	(87,339	)	$	(16,716	)		4,210	$	(95,175	)	$	(728	)	$	1,021,538

	Common shares						Additional Paid-In			Distributions in Excess of			Accumulated Other Comprehensive			Treasury shares					Noncontrolling			Total Shareholders'
	Shares			Amount			Capital			Earnings			Loss			Shares		Amount			Interests			Equity
For the Six Months Ended June 30, 2020
Balance January 1, 2020		121,225		$	1,254		$	1,230,865		$	(119,779	)	$	(20,335	)		4,210	$	(95,175	)	$	(782	)	$	996,048
Proceeds from exercise of stock options		—			—			1			—			—			—		—			—			1
Stock-based compensation expense		—			—			14,474			—			—			—		—			—			14,474
Restricted stock granted		900			9			(9	)		—			—			—		—			—			—
Restricted stock canceled		(27	)		—			—			—			—			—		—			—			—
Dividends paid [1]		—			—			—			(116,160	)		—			—		—			—			(116,160	)
Other adjustment to additional paid-in capital [2]		—			—			9,198			—			—			—		—			—			9,198
Shares withheld for net settlements of share- based awards [3]		(173	)		(1	)		(2,788	)		—			—			—		—			—			(2,789	)
Issuance of common stock - ESPP		23			—			296			—			—			—		—			—			296
Purchase of treasury shares [2]		(577	)		—			—			—			—			577		(9,282	)		—			(9,282	)
Net income (loss)		—			—			—			61,901			—			—		—			(126	)		61,775
Other comprehensive income (loss)		—			—			—			—			(9,219	)		—		—			(47	)		(9,266	)
Balance, June 30, 2020		121,371		$	1,262		$	1,252,037		$	(174,038	)	$	(29,554	)		4,787	$	(104,457	)	$	(955	)	$	944,295

	Common shares						Additional Paid-In			Earnings in Excess of			Accumulated Other Comprehensive			Treasury shares					Noncontrolling			Total Shareholders'
	Shares			Amount			Capital			Distributions			Loss			Shares		Amount			Interests			Equity
For the Six Months Ended June 30, 2019
Balance, January 1, 2019		120,585		$	1,248		$	1,210,916		$	(52,868	)	$	(23,618	)		4,210		(95,175	)	$	(599	)	$	1,039,904
Proceeds from exercise of stock options		64			—			1,072			—			—			—		—			—			1,072
Stock-based compensation expense		—			—			12,180			—			—			—		—			—			12,180
Restricted stock granted		788			8			(8	)		—			—			—		—			—			-
Restricted stock canceled		(38	)		—			—			—			—			—		—			—			-
Dividends paid [1]		—			—			—			(116,122	)		—			—		—			—			(116,122	)
Shares withheld for net settlements of share- based awards [3]		(198	)		(2	)		(4,170	)		—			—			—		—			—			(4,172	)
Issuance of common stock - ESPP		12			—			252			—			—			—		—			—			252
Transition adjustment for accounting standard adoption (4)		—			—			—			(968	)		968
Net income (loss)		—			—			—			82,619			—			—		—			(134	)		82,485
Other comprehensive income (loss)		—			—			—			—			5,934			—		—			5			5,939
Balance, June 30, 2019		121,213		$	1,254		$	1,220,242		$	(87,339	)	$	(16,716	)		4,210	$	(95,175	)	$	(728	)	$	1,021,538

[1]	Dividends paid are net of dividends forfeited on unvested shares of restricted stock.

[2]

On February 26, 2020 (the "Effective Date"), the Company and its Chief Executive Officer (“CEO”) entered into an amended and restated executive retirement agreement that amends the CEO’s executive retirement agreement. The amended and restated executive retirement agreement provides that upon the CEO’s retirement from the Company, the Company will pay a lump sum amount equal to $8,925,065 (the “Grandfathered Payment”) which will be paid in the form of a fixed number of shares of the Company’s common stock. The fair value of the Grandfathered Payment was reclassified to stockholders’ equity. Additional shares of the Company’s common stock are credited with a value equal to any dividends declared and paid on the Company’s shares of common stock, calculated by reference to the closing price of the Company’s common stock on the payment date for such dividends (rounded up to the nearest whole number of shares). Refer to Note 13 – Benefit Plans for further information.

[3]	During the three and six months ended June 30, 2020 and 2019, the Company withheld shares through net share settlements to satisfy statutory tax withholding requirements upon vesting of shares of restricted stock held by employees.

[4]	On January 1, 2019, the Company adopted Accounting Standard Update ("ASU") No. 2018-02 "Income Statement-Reporting Comprehensive Income-Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income".

Dividends Declared

During the six months ended June 30, 2020 and the year ended December 31, 2019, GEO declared and paid the following regular cash distributions to its shareholders as follows:

Declaration Date	Record Date	Payment Date	Distribution Per Share		Aggregate Payment Amount (in millions)
February 4, 2019	February 15, 2019	February 22, 2019	$	0.48	$	57.9
April 3, 2019	April 15, 2019	April 22, 2019	$	0.48	$	58.2
July 9, 2019	July 19, 2019	July 26, 2019	$	0.48	$	58.2
October 14, 2019	October 25, 2019	November 1, 2019	$	0.48	$	58.2
February 3, 2020	February 14, 2020	February 21, 2020	$	0.48	$	58.2
April 6, 2020	April 17, 2020	April 24, 2020	$	0.48	$	58.5

Schedule of Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss) attributable to GEO within shareholders' equity are as follows:

	Six Months Ended June 30, 2020
	(In thousands)
	Foreign currency translation adjustments, net of tax			Change in fair value of derivatives, net of tax			Pension adjustments, net of tax			Total
Balance, January 1, 2020	$	(12,314	)	$	(1,476	)	$	(6,545	)	$	(20,335	)
Current-period other comprehensive income (loss)		(4,804	)		(4,675	)		213			(9,266	)
Balance, June 30, 2020	$	(17,118	)	$	(6,151	)	$	(6,332	)	$	(29,601	)

	Six Months Ended June 30, 2019
	(In thousands)
	Foreign currency translation adjustments, net of tax			Change in fair value of derivatives, net of tax			Pension adjustments, net of tax			Total
Balance, January 1, 2019	$	(14,573	)	$	(5,746	)	$	(3,299	)	$	(23,618	)
Current-period comprehensive income (loss) before reclassifications		1,761			1,895			(605	)		3,051
Amounts reclassified from other comprehensive income into earnings		—			3,851			—			3,851
Net current-period comprehensive income (loss)		1,761			5,746			(605	)		6,902
Balance, June 30, 2019	$	(12,812	)	$	-		$	(3,904	)	$	(16,716	)