Business Segments and Geographic Information

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Business Segments and Geographic Information

12. BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION

Operating and Reporting Segments

The Company conducts its business through four reportable business segments: the U.S. 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, 2021			September 30, 2020			September 30, 2021			September 30, 2020
Revenues:
U.S. Secure Services	$	369,609		$	392,384		$	1,125,014		$	1,180,211
GEO Care		135,315			134,940			412,702			417,643
International Services		52,350			48,489			160,755			158,593
Facility Construction & Design		3			3,323			602			15,535
Total revenues	$	557,277		$	579,136		$	1,699,073		$	1,771,982
Operating income from segments:
U.S. Secure Services	$	72,054		$	78,347		$	219,471		$	227,151
GEO Care		48,317			28,617			129,124			89,166
International Services		4,123			4,400			17,014			15,316
Facility Construction & Design		—			13			98			48
Operating income from segments	$	124,494		$	111,377		$	365,707		$	331,681
General and Administrative Expenses		(50,475	)		(46,644	)	$	(153,642	)		(145,969	)
Total Operating Income	$	74,019		$	64,733		$	212,065		$	185,712

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, 2021			September 30, 2020			September 30, 2021			September 30, 2020
Operating income from segments	$	124,494		$	111,377		$	365,707		$	331,681
Unallocated amounts:
General and administrative expenses		(50,475	)		(46,644	)		(153,642	)		(145,969	)
Net interest expense		(26,535	)		(24,389	)		(78,245	)		(78,493	)
Gain on extinguishment of debt		-			1,472			4,693			3,035
Loss on asset divestiture		(5,031	)		-			(5,031	)		-
(Loss) gain on disposition of real estate		(1,057	)		(271	)		9,322			(1,151	)
Income before income taxes and equity in earnings of    affiliates	$	41,396		$	41,545		$	142,804		$	109,103

Equity in Earnings of Affiliates

Equity in earnings of affiliates includes the Company’s 50% owned joint ventures in South African Custodial Services Pty. Limited (“SACS”), located in South Africa, and GEOAmey PECS Limited (“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 $2.7 million in earnings, net of tax, for SACS operations during the nine months ended September 30, 2021, and $2.8 million in earnings, net of tax, for SACS operations during the nine months ended September 30, 2020, 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, 2021, and December 31, 2020, the Company’s investment in SACS was $10.7 million and $11.1 million, respectively, and represents its share of cumulative reported earnings.

The Company has recorded $2.9 million in earnings, net of tax, for GEOAmey's operations during the nine months ended September 30, 2021, and $4.4 million in earnings, net of tax, for GEOAmey's operations during the nine months ended September 30, 2020, 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, 2021, and December 31, 2020, the Company’s investment in GEOAmey was $9.4 million and $11.8 million, respectively, and represents its share of cumulative reported earnings.