Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 4-May-15 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | GEO GROUP INC | |
Entity Central Index Key | 923796 | |
Document Type | 10-Q | |
Trading Symbol | GEO | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 74,655,873 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues | $427,369 | $393,137 |
Operating expenses | 317,909 | 291,923 |
Depreciation and amortization | 24,940 | 24,142 |
General and administrative expenses | 31,848 | 28,502 |
Operating income | 52,672 | 48,570 |
Interest income | 2,073 | 732 |
Interest expense | -24,646 | -20,652 |
Income before income taxes and equity in earnings of affiliates | 30,099 | 28,650 |
Provision for income taxes | 2,828 | 2,138 |
Equity in earnings of affiliates, net of income tax provision of $613 and $549 respectively | 1,485 | 1,484 |
Net income | 28,756 | 27,996 |
Net loss (income) attributable to noncontrolling interests | 21 | -6 |
Net income attributable to The GEO Group, Inc. | $28,777 | $27,990 |
Weighted-average common shares outstanding: | ||
Basic (in shares) | 73,549 | 71,449 |
Diluted (in shares) | 73,884 | 71,895 |
Basic: | ||
Income per common share attributable to The GEO Group, Inc. - basic (in dollars per share) | $0.39 | $0.39 |
Diluted: | ||
Income per common share attributable to The GEO Group, Inc. - diluted (in dollars per share) | $0.39 | $0.39 |
Dividends declared per share | $0.62 | $0.57 |
Consolidated_Statements_of_Ope1
Consolidated Statements of Operations (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Income tax provision on equity in earnings of affiliates | $613 | $549 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net income | $28,756 | $27,996 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustments | -1,681 | 1,000 |
Pension liability adjustment, net of tax (provision) benefit of $21 and ($12), respectively | 40 | 19 |
Unrealized gain (loss) on derivative instrument classified as cash flow hedge, net of tax (provision) benefit of $718 and ($12), respectively | -4,080 | 27 |
Total other comprehensive income (loss), net of tax | -5,721 | 1,046 |
Total comprehensive income | 23,035 | 29,042 |
Comprehensive loss (income) attributable to noncontrolling interests | 37 | -2 |
Comprehensive income attributable to The GEO Group, Inc. | $23,072 | $29,040 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Tax provision on defined benefit pension plans | $21 | ($12) |
Tax provision on loss on derivative instrument classified as a cash flow hedge | $718 | ($12) |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current Assets | ||
Cash and cash equivalents | $68,981 | $41,337 |
Restricted cash and investments | 8,489 | 4,341 |
Accounts receivable, less allowance for doubtful accounts of $3,676 and $3,315, respectively | 261,280 | 269,038 |
Current deferred income tax assets | 25,884 | 25,884 |
Prepaid expenses and other current assets | 44,420 | 36,806 |
Total current assets | 409,054 | 377,406 |
Restricted Cash and Investments | 23,217 | 19,578 |
Property and Equipment, Net | 1,907,063 | 1,772,166 |
Contract Receivable | 87,042 | 66,229 |
Direct Finance Lease Receivable | 7,077 | 9,256 |
Non-Current Deferred Income Tax Assets | 5,873 | 5,873 |
Goodwill | 601,205 | 493,890 |
Intangible Assets, Net | 224,171 | 155,275 |
Other Non-Current Assets | 103,219 | 102,535 |
Total Assets | 3,367,921 | 3,002,208 |
Current Liabilities | ||
Accounts payable | 60,535 | 58,155 |
Accrued payroll and related taxes | 55,851 | 38,556 |
Accrued expenses and other current liabilities | 135,821 | 140,612 |
Current portion of capital lease obligations, long-term debt and non-recourse debt | 16,648 | 16,752 |
Total current liabilities | 268,855 | 254,075 |
Non-Current Deferred Income Tax Liabilities | 10,068 | 10,068 |
Other Non-Current Liabilities | 99,666 | 87,429 |
Capital Lease Obligations | 9,574 | 9,856 |
Long-Term Debt | 1,795,267 | 1,462,819 |
Non-Recourse Debt | 158,060 | 131,968 |
Commitments, Contingencies and Other (Note 11) | ||
Shareholders’ Equity | ||
Preferred stock, $0.01 par value, 30,000,000 shares authorized, none issued or outstanding | 0 | 0 |
Common stock, $0.01 par value, 125,000,000 shares authorized, 74,614,681 and 74,190,688 issued and outstanding, respectively | 746 | 742 |
Additional paid-in capital | 869,432 | 866,056 |
Earnings in excess of distributions | 189,142 | 206,342 |
Accumulated other comprehensive loss | -33,166 | -27,461 |
Total shareholders’ equity attributable to The GEO Group, Inc. | 1,026,154 | 1,045,679 |
Noncontrolling interests | 277 | 314 |
Total shareholders’ equity | 1,026,431 | 1,045,993 |
Total Liabilities and Shareholders’ Equity | $3,367,921 | $3,002,208 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $3,676 | $3,315 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 30,000,000 | 30,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 125,000,000 | 125,000,000 |
Common stock, shares issued | 74,614,681 | 74,190,688 |
Common stock, shares outstanding | 74,614,681 | 74,190,688 |
Treasury stock, shares | 0 | 0 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash Flow from Operating Activities: | ||
Net income | $28,756 | $27,996 |
Net loss (income) attributable to noncontrolling interests | 21 | -6 |
Net income attributable to The GEO Group, Inc. | 28,777 | 27,990 |
Adjustments to reconcile net income attributable to The GEO Group, Inc. to net cash provided by operating activities: | ||
Depreciation and amortization expense | 24,940 | 24,142 |
Stock-based compensation | 2,621 | 2,466 |
Amortization of debt issuance costs, discount and/or premium and other non-cash interest | 1,695 | 1,224 |
Provision for doubtful accounts | 323 | 535 |
Equity in earnings of affiliates, net of tax | -1,485 | -1,484 |
Income tax benefit related to equity compensation | -569 | -558 |
(Gain) loss on sale/disposal of property and equipment | -545 | 235 |
Changes in assets and liabilities: | ||
Changes in accounts receivable, prepaid expenses and other assets | 12,972 | -7,227 |
Changes in contract receivable | -24,768 | 0 |
Changes in accounts payable, accrued expenses and other liabilities | 16,784 | 15,829 |
Net cash provided by operating activities | 60,745 | 63,152 |
Cash Flow from Investing Activities: | ||
Acquisition of LCS, net of cash acquired | -307,403 | 0 |
Acquisition of Protocol, cash consideration | 0 | -13,000 |
Insurance proceeds - damaged property | 700 | 0 |
Proceeds from sale of property and equipment | 20 | 165 |
Change in restricted cash and investments | -8,108 | -3,273 |
Capital expenditures | -34,198 | -17,531 |
Net cash used in investing activities | -348,989 | -33,639 |
Cash Flow from Financing Activities: | ||
Proceeds from long-term debt | 371,000 | 103,000 |
Payments on long-term debt | -38,750 | -108,990 |
Payments on non-recourse debt | -1,645 | -1,403 |
Proceeds from non-recourse debt | 33,019 | 0 |
Taxes paid related to net share settlements of equity awards | -1,123 | 0 |
Proceeds from issuance of common stock in connection with ESPP | 98 | 84 |
Debt issuance costs | -1,245 | 0 |
Income tax benefit related to equity compensation | 569 | 558 |
Proceeds from the exercise of stock options | 1,215 | 3,275 |
Cash dividends paid | -45,977 | -41,139 |
Net cash provided by (used in) financing activities | 317,161 | -44,615 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | -1,273 | 1,040 |
Net increase (decrease) in Cash and Cash Equivalents | 27,644 | -14,062 |
Cash and Cash Equivalents, beginning of period | 41,337 | 52,125 |
Cash and Cash Equivalents, end of period | 68,981 | 38,063 |
Non-cash Investing and Financing activities: | ||
Capital expenditures in accounts payable and accrued expenses | $1,346 | $1,772 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION |
The GEO Group, Inc., a Florida corporation, and subsidiaries (the “Company” or “GEO”) is a fully-integrated real estate investment trust (“REIT”) specializing in the ownership, leasing and management of correctional, detention and reentry facilities and the provision of community-based services and youth services in the United States, Australia, South Africa and the United Kingdom. The Company owns, leases and operates a broad range of correctional and detention facilities including maximum, medium and minimum security prisons, immigration detention centers, minimum security detention centers, as well as community based reentry facilities. The Company develops new facilities based on contract awards, using its project development expertise and experience to design, construct and finance what it believes are state-of-the-art facilities that maximize security and efficiency. The Company provides innovative compliance technologies, industry-leading monitoring services, and evidence-based supervision and treatment programs for community-based parolees, probationers and pretrial defendants. The Company also provides secure transportation services for offender and detainee populations as contracted domestically and in the United Kingdom through its joint venture GEO Amey PECS Ltd. (“GEOAmey”). The Company’s worldwide operations include the management and/or ownership of approximately 86,000 beds at 106 correctional and detention facilities, including idle facilities, projects under development and recently awarded contracts, and also include the provision of monitoring of more than 70,000 offenders in a community-based environment on behalf of approximately 900 federal, state and local correctional agencies located in all 50 states. | |
The Company's unaudited consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared in accordance with accounting principles generally accepted in the United States and the instructions to Form 10-Q and consequently do not include all disclosures required by Form 10-K. The accounting policies followed for quarterly financial reporting are the same as those disclosed in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 26, 2015 for the year ended December 31, 2014. The accompanying December 31, 2014 consolidated balance sheet has been derived from those audited financial statements. Additional information may be obtained by referring to the Company’s Form 10-K for the year ended December 31, 2014. In the opinion of management, all adjustments (consisting only of normal recurring items) necessary for a fair presentation of the financial information for the interim periods reported in this Quarterly Report on Form 10-Q have been made. Results of operations for the three months ended March 31, 2015 are not necessarily indicative of the results for the entire year ending December 31, 2015, or for any other future interim or annual periods. |
Business_Combinations
Business Combinations | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Business Combinations [Abstract] | ||||
Business Combinations | BUSINESS COMBINATIONS | |||
On February 17, 2015, the Company acquired eight correctional and detention facilities (the “LCS Facilities”) totaling more than 6,500 beds from LCS Corrections Services, Inc., a privately-held owner and operator of correctional and detention facilities in the United States, and its affiliates (collectively, “LCS”). Pursuant to the terms of the definitive asset purchase agreement signed on January 26, 2015, the Company acquired the LCS Facilities for approximately $307.4 million at closing in an all cash transaction, excluding transaction related expenses of approximately $2.1 million that were recorded as general and administrative expense during the three months ended March 31, 2015. The Company also acquired certain tangible and intangible assets and assumed certain accounts payable and accrued expenses pursuant to the asset purchase agreement. Additionally, LCS has the opportunity to receive an additional payment if the LCS Facilities exceed certain performance targets over an 18-month period ending August 31, 2016 (the “Earnout Payment”). The aggregate amount of the purchase price paid at closing and the Earnout Payment, if achieved, will not exceed $350 million. This contingent payment had zero fair value ascribed at the date of acquisition since management believes that it is remote that such payment will be made. Approximately $298 million of outstanding debt related to the facilities was repaid at closing using the cash consideration paid by the Company. The Company did not assume any debt as the result of the transaction. The Company financed the acquisition of the LCS Facilities with borrowings under its revolving credit facility. | ||||
The Company entered into three year consulting agreements, beginning as of the acquisition date, with three of the principal parties of LCS each for $0.3 million annually, payable ratably on a monthly basis. Payment under each such agreement is guaranteed for the full term unless the agreement is terminated by the Company for cause, as defined, or unless the LCS principal party terminates the agreement sooner. | ||||
The allocation of the purchase price for this transaction at February 17, 2015 has not been finalized. The primary areas of the preliminary purchase price allocations that are not yet finalized primarily relate to certain tangible assets and liabilities included in working capital. The Company expects to continue to obtain information to assist it in determining the fair value of the net assets acquired at the acquisition date during the measurement period. Measurement period adjustments that the Company determines to be material will be applied retrospectively to the period of acquisition. | ||||
The purchase price of $307.4 million has been preliminarily allocated to the estimated fair values of the assets acquired and liabilities assumed as of February 17, 2015 as follows (in '000's): | ||||
Accounts receivable | $ | 9,395 | ||
Prepaid expenses and other current assets | 183 | |||
Property and equipment | 119,726 | |||
Intangible assets | 73,200 | |||
Total assets acquired | 202,504 | |||
Accounts payable and accrued expenses | 2,442 | |||
Total identifiable net assets | 200,062 | |||
Goodwill | 107,341 | |||
Total consideration paid | $ | 307,403 | ||
As shown above, the Company recorded $107.3 million of goodwill which is fully deductible for tax purposes. The Company believes its acquisition of the LCS Facilities provides synergies and strategic benefits which further position the Company to meet the demand for correctional and detention bed space in the United States. These factors contributed to the goodwill that was recorded upon consummation of the transaction. The goodwill and net assets acquired are included in the U.S. Corrections & Detention business segment. Revenues and earnings of LCS from the date of acquisition through March 31, 2015 were not significant. | ||||
Identifiable intangible assets purchased consist of facility management contracts and have an estimated useful life of 20 years. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 3 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS | |||||||||||||||||||||||||
The Company has recorded goodwill as a result of its business combinations. Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the tangible assets and intangible assets acquired net of liabilities assumed, including noncontrolling interests. Changes in goodwill from December 31, 2014 to March 31, 2015 are related to fluctuations in foreign currency exchange rates and additions due to an acquisition completed in the first quarter of 2015 as discussed above in Note 2 - Business Combinations. | ||||||||||||||||||||||||||
The Company has also recorded other finite and indefinite-lived intangible assets as a result of its various business combinations. An acquisition completed in the first quarter of 2015 as discussed above in Note 2 - Business Combinations also led to additions to intangible assets. The Company's intangible assets include facility management contracts, trade names and technology, as follows (in thousands): | ||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||
Weighted Average Useful Life (years) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||
Facility management contracts | 15.5 | $ | 227,750 | $ | (59,802 | ) | $ | 167,948 | $ | 154,591 | $ | (56,396 | ) | $ | 98,195 | |||||||||||
Technology | 7 | 24,000 | (12,977 | ) | 11,023 | 24,000 | (12,120 | ) | 11,880 | |||||||||||||||||
Trade name (Indefinite lived) | Indefinite | 45,200 | — | 45,200 | 45,200 | — | 45,200 | |||||||||||||||||||
Total acquired intangible assets | $ | 296,950 | $ | (72,779 | ) | $ | 224,171 | $ | 223,791 | $ | (68,516 | ) | $ | 155,275 | ||||||||||||
Amortization expense was $4.3 million and $3.6 million for the three months ended March 31, 2015 and March 31, 2014, respectively. Amortization expense was primarily related to the U.S. Corrections & Detention and GEO Care segments' amortization of acquired facility management contracts. As of March 31, 2015, the weighted average period before the next contract renewal or extension for the acquired facility management contracts was approximately 1.8 years. Although the facility management contracts acquired have renewal and extension terms in the near term, the Company has historically maintained these relationships beyond the current contractual periods. The acquired contracts in the acquisition of the LCS Facilities do not have contract expiration dates and are perpetual in nature. | ||||||||||||||||||||||||||
Estimated amortization expense related to the Company's finite-lived intangible assets for the remainder of 2015 through 2019 and thereafter is as follows (in thousands): | ||||||||||||||||||||||||||
Fiscal Year | Total Amortization Expense | |||||||||||||||||||||||||
Remainder of 2015 | $ | 14,183 | ||||||||||||||||||||||||
2016 | 18,882 | |||||||||||||||||||||||||
2017 | 18,850 | |||||||||||||||||||||||||
2018 | 15,991 | |||||||||||||||||||||||||
2019 | 15,663 | |||||||||||||||||||||||||
Thereafter | 95,402 | |||||||||||||||||||||||||
$ | 178,971 | |||||||||||||||||||||||||
Financial_Instruments
Financial Instruments | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||||||||||||||||
Financial Instruments | FINANCIAL INSTRUMENTS | |||||||||||||||
The following tables provide a summary of the Company’s significant financial assets and liabilities carried at fair value and measured on a recurring basis as of March 31, 2015 and December 31, 2014 (in thousands): | ||||||||||||||||
Fair Value Measurements at March 31, 2015 | ||||||||||||||||
Carrying Value at March 31, 2015 | Quoted Prices in | Significant Other | Significant | |||||||||||||
Active Markets | Observable Inputs | Unobservable | ||||||||||||||
(Level 1) | (Level 2) | Inputs (Level 3) | ||||||||||||||
Assets: | ||||||||||||||||
Restricted investment: | ||||||||||||||||
Rabbi Trust | $ | 12,617 | $ | — | $ | 12,617 | $ | — | ||||||||
Fixed income securities | 1,870 | — | 1,870 | — | ||||||||||||
Interest rate cap derivatives | 349 | — | $ | 349 | — | |||||||||||
Liabilities: | ||||||||||||||||
Interest rate swap derivatives | $ | 24,050 | $ | — | $ | 24,050 | $ | — | ||||||||
Fair Value Measurements at December 31, 2014 | ||||||||||||||||
Carrying | Quoted Prices in | Significant Other | Significant | |||||||||||||
Value at | Active Markets | Observable Inputs | Unobservable | |||||||||||||
31-Dec-14 | (Level 1) | (Level 2) | Inputs (Level 3) | |||||||||||||
Assets: | ||||||||||||||||
Restricted investments: | ||||||||||||||||
Rabbi Trust | $ | 11,281 | $ | — | $ | 11,281 | $ | — | ||||||||
Fixed income securities | 1,966 | — | 1,966 | — | ||||||||||||
Interest rate cap derivatives | 570 | 570 | ||||||||||||||
Liabilities: | ||||||||||||||||
Interest rate swap derivative liabilities | $ | 19,248 | $ | — | $ | 19,248 | $ | — | ||||||||
The Company’s Level 2 financial instruments included in the tables above as of March 31, 2015 and December 31, 2014 consist of interest rate swap derivative liabilities and interest rate cap derivative assets held by the Company's Australian subsidiary, the Company's rabbi trust established for GEO employee and employer contributions to the GEO Group, Inc. Non-qualified Deferred Compensation Plan and an investment in Canadian dollar denominated fixed income securities. | ||||||||||||||||
The Australian subsidiary’s interest rate swap derivative liabilities and interest rate cap derivative assets are valued using a discounted cash flow model based on projected Australian borrowing rates. 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 underlying assets are equity and fixed income pooled funds that are comprised of Level 1 and Level 2 securities. The Canadian dollar denominated securities, not actively traded, are valued using quoted rates for these and similar securities. |
Fair_Value_of_Assets_and_Liabi
Fair Value of Assets and Liabilities | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||
Fair Value of Assets and Liabilities | FAIR VALUE OF ASSETS AND LIABILITIES | |||||||||||||||||||
The Company’s consolidated balance sheets reflect certain financial assets and liabilities at carrying value. The carrying value of certain debt instruments, if applicable, is net of unamortized discount. The following tables present the carrying values of those financial instruments and the estimated corresponding fair values at March 31, 2015 and December 31, 2014 (in thousands): | ||||||||||||||||||||
Estimated Fair Value Measurements at March 31, 2015 | ||||||||||||||||||||
Carrying Value as of March 31, 2015 | Total Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 68,981 | $ | 68,981 | $ | 68,981 | $ | — | $ | — | ||||||||||
Restricted cash | 19,089 | 19,089 | 4,247 | 14,842 | — | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Borrowings under senior credit facility | $ | 697,750 | $ | 698,855 | $ | — | $ | 698,855 | $ | — | ||||||||||
5.875% Senior Notes | 250,000 | 260,000 | — | 260,000 | — | |||||||||||||||
5.125% Senior Notes | 300,000 | 315,375 | 315,375 | |||||||||||||||||
5⅞% Senior Notes | 250,000 | 255,000 | — | 255,000 | — | |||||||||||||||
6.625% Senior Notes | 300,000 | 318,000 | — | 318,000 | — | |||||||||||||||
Non-recourse debt, Australian subsidiary | 156,442 | 159,484 | — | 159,484 | — | |||||||||||||||
Other non-recourse debt, including current portion | 14,025 | 14,111 | — | 14,111 | — | |||||||||||||||
Estimated Fair Value Measurements at December 31, 2014 | ||||||||||||||||||||
Carrying Value as of December 31, 2014 | Total Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 41,337 | $ | 41,337 | $ | 41,337 | $ | — | $ | — | ||||||||||
Restricted cash | 12,638 | 12,638 | 3,889 | 8,749 | — | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Borrowings under senior credit facility | $ | 365,500 | $ | 364,411 | $ | — | $ | 364,411 | $ | — | ||||||||||
5.875% Senior Notes | 250,000 | 256,720 | — | 256,720 | — | |||||||||||||||
5.125% Senior Notes | 300,000 | 296,814 | — | 296,814 | — | |||||||||||||||
5⅞% Senior Notes | 250,000 | 256,720 | — | 256,720 | — | |||||||||||||||
6.625% Senior Notes | 300,000 | 315,750 | — | 315,750 | — | |||||||||||||||
Non-recourse debt, Australian subsidiary | 95,714 | 95,871 | — | 95,871 | — | |||||||||||||||
Other non-recourse debt, including current portion | 48,836 | 52,016 | — | 52,016 | — | |||||||||||||||
The fair values of the Company’s cash and cash equivalents, and restricted cash approximates the carrying values of these assets at March 31, 2015 and December 31, 2014. Restricted cash consists of money market funds, commercial paper and time deposits used for payments on the Company’s non-recourse debt and asset replacement funds contractually required to be maintained at the Company's Australian subsidiary. The fair value of the money market funds is based on quoted market prices (Level 1) and the fair value of commercial paper and time deposits is based on market prices for similar instruments (Level 2). | ||||||||||||||||||||
The fair values of the Company's 5⅞% senior unsecured notes due 2022 ("5⅞% Senior Notes"), 5.875% senior unsecured notes due 2024 ("5.875% Senior Notes"), 6.625% senior unsecured notes due 2021 (“6.625% Senior Notes”), and the 5.125% senior unsecured notes due 2023 ("5.125% Senior Notes"), although not actively traded, are based on published financial data for these instruments. The fair values of the Company's non-recourse debt related to the Washington Economic Development Finance Authority ("WEDFA") is based on market prices for similar instruments. The fair value of the non-recourse debt related to the Company’s Australian subsidiary is estimated using a discounted cash flow model based on current Australian borrowing rates for similar instruments. The fair value of borrowings under the senior credit facility is based on an estimate of trading value considering the Company’s borrowing rate, the undrawn spread and similar instruments. |
Shareholders_Equity
Shareholders' Equity | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||
Shareholders' Equity | SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||
The following table presents the changes in shareholders’ equity that are attributable to the Company’s shareholders and to noncontrolling interests (in thousands): | |||||||||||||||||||||||||||
Common shares | Additional | Earnings in Excess of | Accumulated | Noncontrolling | Total | ||||||||||||||||||||||
Paid-In | Other | Shareholders' | |||||||||||||||||||||||||
Comprehensive | |||||||||||||||||||||||||||
Shares | Amount | Capital | Distributions | Loss | Interests | Equity | |||||||||||||||||||||
Balance, December 31, 2014 | 74,191 | $ | 742 | $ | 866,056 | $ | 206,342 | $ | (27,461 | ) | $ | 314 | $ | 1,045,993 | |||||||||||||
Proceeds from exercise of stock options | 54 | — | 1,215 | — | — | — | 1,215 | ||||||||||||||||||||
Tax benefit related to equity compensation | — | — | 569 | — | — | — | 569 | ||||||||||||||||||||
Stock-based compensation expense | — | — | 432 | — | — | — | 432 | ||||||||||||||||||||
Amortization of restricted stock | — | — | 2,189 | — | — | — | 2,189 | ||||||||||||||||||||
Restricted stock granted | 396 | 4 | (4 | ) | — | — | — | — | |||||||||||||||||||
Restricted stock canceled | (3 | ) | — | — | — | — | — | — | |||||||||||||||||||
Dividends paid | — | — | — | (45,977 | ) | — | — | (45,977 | ) | ||||||||||||||||||
Shares withheld for net settlements of share-based awards | (25 | ) | — | (1,123 | ) | — | — | — | (1,123 | ) | |||||||||||||||||
Issuance of common stock - ESPP | 2 | — | 98 | — | — | — | 98 | ||||||||||||||||||||
Net income (loss) | — | — | — | 28,777 | — | (21 | ) | 28,756 | |||||||||||||||||||
Other comprehensive loss | — | — | — | — | (5,705 | ) | (16 | ) | (5,721 | ) | |||||||||||||||||
Balance, March 31, 2015 | 74,615 | $ | 746 | $ | 869,432 | $ | 189,142 | $ | (33,166 | ) | $ | 277 | $ | 1,026,431 | |||||||||||||
During the three months ended March 31, 2015, the Company withheld shares through net share settlements to satisfy minimum statutory tax withholding requirements upon vesting of shares of restricted stock held by employees. | |||||||||||||||||||||||||||
REIT Distributions | |||||||||||||||||||||||||||
As a REIT, GEO is required to distribute annually at least 90% of its REIT taxable income (determined without regard to the dividends paid deduction and by excluding net capital gain) and began paying regular quarterly REIT dividends in 2013. The amount, timing and frequency of future dividends, however, will be at the sole discretion of GEO's Board of Directors (the "Board”) and will be declared based upon various factors, many of which are beyond GEO's control, including, GEO's financial condition and operating cash flows, the amount required to maintain REIT status and reduce any income taxes that GEO otherwise would be required to pay, limitations on distributions in GEO's existing and future debt instruments, limitations on GEO's ability to fund distributions using cash generated through GEO's taxable REIT subsidiaries ("TRSs") and other factors that GEO's Board may deem relevant. | |||||||||||||||||||||||||||
During the three months ended March 31, 2015 and the year ended December 31, 2014, respectively, GEO declared and paid the following regular cash distributions to its shareholders as follows: | |||||||||||||||||||||||||||
Declaration Date | Record Date | Payment Due | Distribution Per Share | Aggregate Payment Amount (in millions) | |||||||||||||||||||||||
February 18, 2014 | 3-Mar-14 | March 14, 2014 | $0.57 | $41.10 | |||||||||||||||||||||||
April 28, 2014 | 15-May-14 | May 27, 2014 | $0.57 | $41.50 | |||||||||||||||||||||||
August 5, 2014 | 18-Aug-14 | August 29, 2014 | $0.57 | $41.40 | |||||||||||||||||||||||
November 5, 2014 | 17-Nov-14 | November 26, 2014 | $0.62 | $46.00 | |||||||||||||||||||||||
February 6, 2015 | 17-Feb-15 | February 27, 2015 | $0.62 | $46.00 | |||||||||||||||||||||||
Prospectus Supplement | |||||||||||||||||||||||||||
On May 8, 2013, the Company filed with the Securities and Exchange Commission a prospectus supplement related to the offer and sale from time to time of the Company's common stock at an aggregate offering price of up to $100.0 million through sales agents. Sales of shares of the Company's common stock under the prospectus supplement and equity distribution agreements entered into with the sales agents, if any, may be made in negotiated transactions or transactions that are deemed to be "at the market" offerings as defined in Rule 415 under the Securities Act of 1933. On July 18, 2014, the Company filed with the Securities and Exchange Commission a post-effective amendment to its shelf registration statement on Form S-3 (pursuant to which the prospectus supplement had been filed) as a result of the merger of the Company into GEO REIT effective June 27, 2014. During the year ended December 31, 2014, there were approximately 1.5 million shares of common stock sold under the prospectus supplement for net proceeds of $54.7 million. There were no shares of the Company's common stock sold under the prospectus supplement during the three months ended March 31, 2015. | |||||||||||||||||||||||||||
In September 2014, the Company filed with the Securities and Exchange Commission a new shelf registration statement on Form S-3. On November 10, 2014, in connection with the new shelf registration, the Company filed with the Securities and Exchange Commission a new prospectus supplement related to the offer and sale from time to time of the Company's common stock at an aggregate offering price of up to $150.0 million through sales agents. Sales of shares of the Company's common stock under the prospectus supplement and the equity distribution agreements entered into with the sales agents, if any, may be made in negotiated transactions or transactions that are deemed to be "at the market" offerings as defined in Rule 415 under the Securities Act of 1933. There were no shares of the Company's stock issued under this prospectus supplement during the three months ended March 31, 2015. | |||||||||||||||||||||||||||
Comprehensive Income (Loss) | |||||||||||||||||||||||||||
Comprehensive income (loss) represents the change in shareholders' equity from transactions and other events and circumstances arising from non-shareholder sources. The Company's total comprehensive income is comprised of net income attributable to GEO, net income attributable to noncontrolling interests, foreign currency translation adjustments that arise from consolidating foreign operations that do not impact cash flows, net unrealized gains and/or losses on derivative instruments, and pension liability adjustments within shareholders' equity and comprehensive income (loss). | |||||||||||||||||||||||||||
The components of accumulated other comprehensive income (loss) attributable to GEO within shareholders' equity are as follows: | |||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||
Foreign currency translation adjustments, net of tax attributable to The GEO Group, Inc. (1) | Unrealized (loss)/gain on derivatives, net of tax | Pension adjustments, net of tax | Total | ||||||||||||||||||||||||
Balance, December 31, 2014 | $ | (6,903 | ) | $ | (16,322 | ) | $ | (4,236 | ) | $ | (27,461 | ) | |||||||||||||||
Current-period other comprehensive (loss) income | (1,665 | ) | (4,080 | ) | 40 | (5,705 | ) | ||||||||||||||||||||
Balance, March 31, 2015 | $ | (8,568 | ) | $ | (20,402 | ) | $ | (4,196 | ) | $ | (33,166 | ) | |||||||||||||||
(1) The foreign currency translation related to noncontrolling interests was not significant at March 31, 2015 or December 31, 2014. |
Equity_Incentive_Plans
Equity Incentive Plans | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Equity Incentive Plans | EQUITY INCENTIVE PLANS | ||||||||||||
The Board has adopted The GEO Group, Inc. 2014 Stock Incentive Plan (the "2014 Plan"), which was approved by the Company's shareholders on May 2, 2014. The 2014 Plan replaced the 2006 Stock Incentive Plan (the "2006 Plan"). As of the date the 2014 Plan was adopted, it provides for a reserve of 3,083,353 shares, which consisted of 2,000,000 new shares of common stock available for issuance and 1,083,353 shares of common stock that were available for issuance under the 2006 Plan prior to the 2014 Plan replacing it. The Company filed a Form S-8 registration statement related to the 2014 Plan on June 4, 2014, which was amended on July 18, 2014. | |||||||||||||
Stock Options | |||||||||||||
The Company uses a Black-Scholes option valuation model to estimate the fair value of each option awarded. For options granted during the three months ended March 31, 2015, the fair value was estimated using the following assumptions: (i) volatility of 24%; (ii) expected term of 5.00 years; (iii) risk free interest rate of 1%; and (iv) expected dividend yield of 5.75%. A summary of the activity of stock option awards issued and outstanding under Company plans is as follows for the three months ended March 31, 2015: | |||||||||||||
Shares | Wtd. Avg. | Wtd. Avg. | Aggregate | ||||||||||
Exercise | Remaining | Intrinsic | |||||||||||
Price | Contractual Term (years) | Value | |||||||||||
(in thousands) | (in thousands) | ||||||||||||
Options outstanding at December 31, 2014 | 664 | $ | 23.89 | 6.77 | $ | 10,935 | |||||||
Options granted | 256 | 43.15 | |||||||||||
Options exercised | (53 | ) | 23.98 | ||||||||||
Options forfeited/canceled/expired | (5 | ) | 40.32 | ||||||||||
Options outstanding at March 31, 2015 | 862 | $ | 29.53 | 7.51 | $ | 8,732 | |||||||
Options vested and expected to vest at March 31, 2015 | 806 | $ | 28.92 | 7.37 | $ | 8,576 | |||||||
Options exercisable at March 31, 2015 | 490 | $ | 23.84 | 6.2 | $ | 7,297 | |||||||
During the three months ended March 31, 2015, the Company granted approximately 256,000 options to certain employees which had a weighted-average grant-date fair value of $4.26 per share. For the three months ended March 31, 2015 and March 31, 2014, the amount of stock-based compensation expense related to stock options was $0.4 million and $0.5 million, respectively. As of March 31, 2015, the Company had $1.3 million of unrecognized compensation costs related to non-vested stock option awards that are expected to be recognized over a weighted average period of 1.7 years. | |||||||||||||
Restricted Stock | |||||||||||||
Compensation expense for nonvested stock awards is recorded over the vesting period based on the fair value at the date of grant. Generally, the restricted stock awards vest in equal increments over either a three or four-year period. The fair value of restricted stock awards, which do not contain a market-based vesting condition, is determined using the closing price of the Company's common stock on the date of grant. The Company has issued share-based awards with service-based, performance-based and market-based vesting criteria. | |||||||||||||
A summary of the activity of restricted stock outstanding is as follows for the three months ended March 31, 2015: | |||||||||||||
Shares | Wtd. Avg. | ||||||||||||
Grant Date | |||||||||||||
Fair Value | |||||||||||||
(in thousands) | |||||||||||||
Restricted stock outstanding at December 31, 2014 | 724 | $ | 30.97 | ||||||||||
Granted | 396 | 45.88 | |||||||||||
Vested | (97 | ) | 26.41 | ||||||||||
Forfeited/canceled | (3 | ) | 42.64 | ||||||||||
Restricted stock outstanding at March 31, 2015 | 1,020 | $ | 37.05 | ||||||||||
During the three months ended March 31, 2015, the Company granted approximately 396,000 shares of restricted stock to certain employees and executive officers. Of these awards, 123,500 are market and performance-based awards which will be forfeited if the Company does not achieve certain annual metrics during 2015, 2016 and 2017. | |||||||||||||
The vesting of these performance-based restricted stock grants are subject to the achievement by GEO of two annual performance metrics as follows: (i) up to 75% of the shares of restricted stock ("TSR Target Award") can vest at the end of a three-year performance period if GEO meets certain total shareholder return ("TSR") performance targets, as compared to the total shareholder return of a peer group of companies, during 2015, 2016 and 2017 and (ii) up to 25% of the shares of restricted stock ("ROCE Target Award") can vest at the end of a three-year period if GEO meets certain return on capital employed ("ROCE") performance targets in 2015, 2016 and 2017. These market and performance awards can vest at between 0% and 200% of the target awards for both metrics. The number of shares shown for the performance-based awards is based on the target awards for both metrics. | |||||||||||||
The metric related to ROCE is considered to be a performance condition. For share-based awards that contain a performance condition, the achievement of the targets must be probable before any share-based compensation expense is recorded. The Company reviews the likelihood of which target in the range will be achieved and if deemed probable, compensation expense is recorded at that time. If subsequent to initial measurement there is a change in the estimate of the probability of meeting the performance condition, the effect of the change in the estimated quantity of awards expected to vest is recognized by cumulatively adjusting compensation expense. If ultimately the performance targets are not met, for any awards where vesting was previously deemed probable, previously recognized compensation expense will be reversed in the period in which vesting is no longer deemed probable. The fair value of these awards was determined based on the closing price of the Company's common stock on the date of grant. | |||||||||||||
The metric related to TSR is considered to be a market condition. For share-based awards that contain a market condition, the probability of satisfying the market condition must be considered in the estimate of grant-date fair value and previously recorded compensation expense is not reversed if the market condition is never met. The fair value of these awards was determined based on a Monte Carlo simulation, which calculates a range of possible outcomes and the probabilities that they will occur, using the following key assumptions: (i) volatility of 21.4%; (ii) beta of 0.74; and (iii) risk free rate of 1.00%. | |||||||||||||
For the three months ended March 31, 2015 and March 31, 2014, the Company recognized $2.2 million and $2.0 million, respectively, of compensation expense related to its restricted stock awards. As of March 31, 2015, the Company had $30.7 million of unrecognized compensation costs related to non-vested restricted stock awards, including non-vested restricted stock awards with performance-based and market-based vesting, that are expected to be recognized over a weighted average period of 1.6 years. | |||||||||||||
Employee Stock Purchase Plan | |||||||||||||
The Company previously adopted The GEO Group Inc. 2011 Employee Stock Purchase Plan (the “Plan”) which was approved by the Company's shareholders. The purpose of the Plan, which is qualified under Section 423 of the Internal Revenue Service Code of 1986, as amended, is to encourage stock ownership through payroll deductions by the employees of GEO and designated subsidiaries of GEO in order to increase their identification with the Company’s goals and secure a proprietary interest in the Company’s success. These deductions are used to purchase shares of the Company’s common stock at a 5% discount from the then current market price. The Company has made available up to 500,000 shares of its common stock, which were registered with the Securities and Exchange Commission on May 4, 2012, as amended on July 18, 2014, for sale to eligible employees under the Plan. | |||||||||||||
The Plan is considered to be non-compensatory. As such, there is no compensation expense required to be recognized. Share purchases under the Plan are made on the last day of each month. During the three months ended March 31, 2015, 2,338 shares of the Company's common stock were issued in connection with the Plan. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Earnings Per Share | EARNINGS PER SHARE | |||||||
Basic income per common share is computed by dividing the income from continuing operations attributable to The GEO Group, Inc. shareholders by the weighted average number of outstanding shares of common stock. The calculation of diluted income per common share is similar to that of basic income per common share except that the denominator includes dilutive common stock equivalents such as stock options and shares of restricted stock. Basic and diluted income from continuing operations per common share was calculated for the three months ended March 31, 2015 and March 31, 2014 as follows (in thousands, except per share data): | ||||||||
Three Months Ended | ||||||||
31-Mar-15 | 31-Mar-14 | |||||||
Net income | $ | 28,756 | $ | 27,996 | ||||
Net income (loss) attributable to noncontrolling interests | 21 | (6 | ) | |||||
Net income attributable to The GEO Group, Inc. | 28,777 | 27,990 | ||||||
Basic earnings per share attributable to The GEO Group, Inc.: | ||||||||
Weighted average shares outstanding | 73,549 | 71,449 | ||||||
Per share amount | $ | 0.39 | $ | 0.39 | ||||
Diluted earnings per share attributable to The GEO Group, Inc.: | ||||||||
Weighted average shares outstanding | 73,549 | 71,449 | ||||||
Dilutive effect of equity incentive plans | 335 | 446 | ||||||
Weighted average shares assuming dilution | 73,884 | 71,895 | ||||||
Per share amount | $ | 0.39 | $ | 0.39 | ||||
Three Months | ||||||||
For the three months ended March 31, 2015, 83,790 weighted average shares of common stock underlying options were excluded from the computation of diluted EPS because the effect would be anti-dilutive. There were no common stock equivalents from restricted shares that were anti-dilutive. | ||||||||
For the three months ended March 31, 2014, 17,070 weighted average shares of common stock underlying options were excluded from the computation of diluted EPS because the effect would be anti-dilutive There were no common stock equivalents from restricted shares that were anti-dilutive. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS |
The Company’s primary objective in holding derivatives is to reduce the volatility of earnings and cash flows associated with changes in interest rates. The Company measures its derivative financial instruments at fair value. | |
Australia - Fullham | |
The Company’s Australian subsidiary is a party to an interest rate swap agreement to fix the interest rate on its variable rate non-recourse debt (related to its Fullham facility) to 9.7%. The Company has determined the swap, which has a notional amount of AUD 50.9 million, payment and expiration dates, and call provisions that coincide with the terms of the non-recourse debt, to be an effective cash flow hedge. Accordingly, the Company records the change in the fair value of the interest rate swap in accumulated other comprehensive income, net of applicable income taxes. Total unrealized gains recorded in other comprehensive income, net of tax, related to this cash flow hedge were not significant for the three months ended March 31, 2015 and 2014. The total fair value of the swap liability as of March 31, 2015 and December 31, 2014 was $0.3 million and $0.2 million, respectively, and is recorded as a component of other non-current liabities within the accompanying consolidated balance sheets. There was no material ineffectiveness of this interest rate swap for the periods presented. The Company does not expect to enter into any transactions during the next twelve months which would result in the reclassification into earnings or losses associated with this swap currently reported in accumulated other comprehensive income (loss). | |
Australia - Ravenhall | |
In September 2014, the Company’s Australian subsidiary entered into interest rate swap agreements to fix the interest rate on its variable rate non-recourse debt related to a prison project in Ravenhall, a locality near Melbourne, Australia to 3.3% during the design and construction phase and 4.2% during the project's operating phase. The swaps' notional amounts coincide with construction draw fixed commitments throughout the project. At March 31, 2015, the swaps had a notional value of approximately AUD 140.0 million, or $107.7 million, based on exchange rates at March 31, 2015, related to the outstanding draws for the design and construction phase and approximately AUD 466.3 million, or $358.6 million, based on exchange rates at March 31, 2015 related to future construction draws. The Company has determined that the swaps have payment, expiration dates, and provisions that coincide with the terms of the non-recourse debt and are therefore considered to be effective cash flow hedges. Accordingly, the Company records the change in the fair value of the interest rate swaps in accumulated other comprehensive income, net of applicable income taxes. Total unrealized losses recorded in other comprehensive income, net of tax, related to this cash flow hedge were approximately $4.1 million during the three months ended March 31, 2015. The total fair value of the swap liability as of March 31, 2015 was $23.8 million and is recorded as a component of Other Non-Current liabilities within the accompanying consolidated balance sheet. There was no material ineffectiveness for the periods presented. The Company does not expect to enter into any transactions during the next twelve months which would result in the reclassification into earnings or losses associated with these swaps currently reported in accumulated other comprehensive income (loss). | |
Additionally, upon completion and commercial acceptance of the prison project, the Department of Justice in the State of Victoria (the "State") in accordance with the prison contract, will make a lump sum payment of AUD 310 million, or $238.4 million, based on exchange rates at March 31, 2015, towards a portion of the outstanding principal of the non-recourse debt. The Company's Australian subsidiary also entered into interest rate cap agreements in September 2014 giving the Company the option to cap the interest rate on its variable non-recourse debt related to the project in the event that the completion of the prison project is delayed which could delay the State's payment. The Company paid $1.7 million for the interest rate cap agreements. These instruments do not meet the requirements for hedge accounting, and therefore, changes in fair value of the interest rate caps are recorded in earnings. During the three months ended March 31, 2015, the Company recorded a loss of $0.2 million related to a decline in the fair value of the interest rate cap assets. As of March 31, 2015, the interest rate cap assets had a fair value of $0.3 million which is included in Other Non-Current Assets in the accompanying consolidated balance sheet. | |
Other Derivative Instruments | |
The Company has entered into foreign exchange forwards to mitigate the change in fair value of certain assets and liabilities related to intercompany loans with its foreign subsidiaries. These forwards are not designated as hedging instruments under the accounting standards for derivatives and hedging. Accordingly, these undesignated instruments are recorded at fair value as a derivative asset or liability with their corresponding change in fair value recognized in earnings. The fair value of these derivatives were not significant at March 31, 2015. |
Debt
Debt | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt | DEBT | |||||||
Debt outstanding as of March 31, 2015 and December 31, 2014 consisted of the following (in thousands): | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
Senior Credit Facility: | ||||||||
Term loan | $ | 294,750 | $ | 295,500 | ||||
Revolver | 403,000 | 70,000 | ||||||
Total Senior Credit Facility | $ | 697,750 | $ | 365,500 | ||||
5.875% Senior Notes | ||||||||
Notes Due in 2024 | 250,000 | 250,000 | ||||||
5.125% Senior Notes: | ||||||||
Notes due in 2023 | 300,000 | 300,000 | ||||||
5⅞% Senior Notes | ||||||||
Notes Due in 2022 | 250,000 | 250,000 | ||||||
6.625% Senior Notes: | ||||||||
Notes due in 2021 | 300,000 | 300,000 | ||||||
Non-Recourse Debt : | ||||||||
Non-Recourse Debt | 171,138 | 145,262 | ||||||
Unamortized discount on non-recourse debt | (671 | ) | (712 | ) | ||||
Total Non-Recourse Debt | 170,467 | 144,550 | ||||||
Capital Lease Obligations | 10,665 | 10,924 | ||||||
Other debt | 667 | 421 | ||||||
Total debt | 1,979,549 | 1,621,395 | ||||||
Current portion of capital lease obligations, long-term debt and non-recourse debt | (16,648 | ) | (16,752 | ) | ||||
Capital Lease Obligations, long-term portion | (9,574 | ) | (9,856 | ) | ||||
Non-Recourse Debt, long-term portion | (158,060 | ) | (131,968 | ) | ||||
Long-Term Debt | $ | 1,795,267 | $ | 1,462,819 | ||||
Credit Agreement | ||||||||
On August 27, 2014, the Company executed a second amended and restated credit agreement by and among the Company and GEO Corrections Holdings, Inc., as Borrowers, BNP Paribas, as Administrative Agent, and the lenders who are, or may from time to time become, a party thereto (the “Credit Agreement”). | ||||||||
The Credit Agreement evidences a credit facility (the “Credit Facility”) consisting of a $296.3 million term loan (the “Term Loan”) bearing interest at LIBOR plus 2.50% (with a LIBOR floor of .75%), and a $700.0 million revolving credit facility (the “Revolver”) initially bearing interest at LIBOR plus 2.25% (with no LIBOR floor) together with AUD 225.0 million available solely for the issuance of financial letters of credit and performance letters of credit, in each case denominated in Australian Dollars (the “Australian LC Facility”). At March 31, 2015, the Company had approximately AUD 214.0 million in letters of credit outstanding under the Australian LC Facility in connection with certain performance and financing guarantees related to the Ravenhall prison project in Australia. Amounts to be borrowed by the Company under the Credit Agreement are subject to the satisfaction of customary conditions to borrowing. The Revolver component is scheduled to mature on August 27, 2019 and the Term Loan component is scheduled to mature on April 3, 2020. | ||||||||
The Credit Agreement contains certain customary representations and warranties, and certain customary covenants that restrict the Company’s ability to, among other things (i) create, incur or assume any indebtedness, (ii) create, incur, assume or permit liens, (iii) make loans and investments, (iv) engage in mergers, acquisitions and asset sales, (v) make certain restricted payments, (vi) issue, sell or otherwise dispose of capital stock, (vii) engage in transactions with affiliates, (viii) allow the total leverage ratio to exceed 5.75 to 1.00, allow the senior secured leverage ratio to exceed 3.50 to 1.00 or allow the interest coverage ratio to be less than 3.00 to 1.00, (ix) cancel, forgive, make any voluntary or optional payment or prepayment on, or redeem or acquire for value any senior notes, except as permitted, (x) alter the business the Company conducts, and (xi) materially impair the Company’s lenders’ security interests in the collateral for its loans. The restricted payments covenant remains consistent with the Company’s election to be treated as a real estate investment trust under the Internal Revenue Code of 1986, effective as of January 1, 2013. | ||||||||
Events of default under the Credit Agreement include, but are not limited to, (i) the Company’s failure to pay principal or interest when due, (ii) the Company’s material breach of any representation or warranty, (iii) covenant defaults, (iv) liquidation, reorganization or other relief relating to bankruptcy or insolvency, (v) cross default under certain other material indebtedness, (vi) unsatisfied final judgments over a specified threshold, (vii) certain material environmental liability claims which have been asserted against the Company, and (viii) a change in control. The Company was in compliance with all of the covenants of the Credit Agreement as of March 31, 2015. | ||||||||
All of the obligations under the Credit Agreement are unconditionally guaranteed by certain domestic subsidiaries of the Company and the Credit Agreement and the related guarantees are secured by a perfected first-priority pledge of substantially all of the Company’s present and future tangible and intangible domestic assets and all present and future tangible and intangible domestic assets of each guarantor, including but not limited to a first-priority pledge of all of the outstanding capital stock owned by the Company and each guarantor in their domestic subsidiaries. | ||||||||
As of March 31, 2015, the Company had $294.8 million in aggregate borrowings outstanding under the Term Loan, $403.0 million in borrowings under the Revolver, and approximately $59.0 million in letters of credit which left $238.0 million in additional borrowing capacity under the Revolver. The weighted average interest rate on outstanding borrowings under the Credit Agreement as of March 31, 2015 was 2.8%. | ||||||||
5.875% Senior Notes | ||||||||
Interest on the 5.875% Senior Notes accrues at the stated rate. The Company pays interest semi-annually in arrears on April 15 and October 15 of each year. On or after October 15, 2019, the Company may, at its option, redeem all or part of the 5.875% Senior Notes at the redemption prices set forth in the indenture governing the 5.875% Senior Notes. The indenture contains certain covenants, including limitations and restrictions on the Company and its subsidiary guarantors (Refer to Note 15-Condensed Consolidating Financial Information). The Company was in compliance with all of the covenants of the indenture governing the 5.875% Senior Notes as of March 31, 2015. | ||||||||
5.125% Senior Notes | ||||||||
Interest on the 5.125% Senior Notes accrues at the stated rate. The Company pays interest semi-annually in arrears on April 1 and October 1 of each year. On or after April 1, 2018, the Company may, at its option, redeem all or part of the 5.125% Senior Notes at the redemption prices set forth in the indenture governing the 5.125% Senior Notes. The indenture contains certain covenants, including limitations and restrictions on the Company and its subsidiary guarantors (Refer to Note 15-Condensed Consolidating Financial Information). The Company was in compliance with all of the covenants of the indenture governing the 5.125% Senior Notes as of March 31, 2015. | ||||||||
5⅞% Senior Notes | ||||||||
Interest on the 5⅞% Senior Notes accrues at the stated rate. The Company pays interest semi-annually in arrears on January 15 and July 15 of each year. On or after January 15, 2017, the Company may, at its option, redeem all or part of the 5⅞% Senior Notes at the redemption prices set forth in the indenture governing the 5⅞% Senior Notes. The indenture contains certain covenants, including limitations and restrictions on the Company and its subsidiary guarantors (Refer to Note 15-Condensed Consolidating Financial Information). The Company was in compliance with all of the covenants of the indenture governing the 5⅞% Senior Notes as of March 31, 2015. | ||||||||
6.625% Senior Notes | ||||||||
Interest on the 6.625% Senior Notes accrues at the stated rate. The Company pays interest semi-annually in arrears on February 15 and August 15 of each year. On or after February 15, 2016, the Company may, at its option, redeem all or part of the 6.625% Senior Notes at the redemption prices set forth in the indenture governing the 6.625% Senior Notes. The indenture contains certain covenants, including limitations and restrictions on the Company and its subsidiary guarantors (Refer to Note 16-Condensed Consolidating Financial Information). The Company was in compliance with all of the covenants of the indenture governing the 6.625% Senior Notes as of March 31, 2015. | ||||||||
Non-Recourse Debt | ||||||||
Northwest Detention Center | ||||||||
The remaining balance of the original debt service requirement under the $54.4 million note payable ("2011 Revenue Bonds") to the Washington Economic Finance Authority ("WEDFA") will mature in October 2021 with fixed coupon rates of 5.25%, is $49.4 million, of which $6.3 million is classified as current in the accompanying consolidated balance sheet as of March 31, 2015. The payment of principal and interest on the 2011 Revenue Bonds issued by WEDFA is non-recourse to GEO. | ||||||||
As of March 31, 2015, included in current restricted cash and investments and non-current restricted cash and investments is $11.0 million of funds held in trust for debt service and other reserves with respect to the above mentioned note payable to WEDFA. | ||||||||
Australia - Fullham | ||||||||
The non-recourse obligation to the Company totaled $14.0 million (AUD 18.2 million) and $16.4 million (AUD 20.1 million), based on the exchange rates in effect at March 31, 2015 and December 31, 2014, respectively. The term of the non-recourse debt is through 2017 and it bears interest at a variable rate quoted by certain Australian banks plus 140 basis points. Any obligations or liabilities of the subsidiary are matched by a similar or corresponding commitment from the government of the State of Victoria. As a condition of the loan, the Company is required to maintain a restricted cash balance of AUD 5.0 million, which, based on exchange rates as of March 31, 2015, was $3.8 million. This amount is included in non-current restricted cash and investments and the annual maturities of the future debt obligation are included in Non-Recourse Debt in the accompanying consolidated balance sheets. | ||||||||
Australia - Ravenhall | ||||||||
In connection with a new design and build prison project agreement with the State, the Company entered into a syndicated facility agreement (the "Construction Facility") with National Australia Bank Limited to provide debt financing for construction of the project. The Construction Facility provides for non-recourse funding up to AUD 791.0 million, or $608.4 million, based on exchange rates as of March 31, 2015. Construction draws will be funded throughout the project according to a fixed utilization schedule as defined in the syndicated facility agreement. The term of the Construction Facility is through October 2019 and bears interest at a variable rate quoted by certain Australian banks plus 200 basis points. After October 2019, the Construction Facility will be converted to a term loan with payments due quarterly beginning in 2018 through 2041. In accordance with the terms of the Construction Facility, upon completion and commercial acceptance of the prison, in accordance with prison contract, the State will make a lump sum payment of AUD 310 million, or $238.4 million, based on exchange rates as of March 31, 2015, towards a portion of the outstanding principal. The remaining outstanding principal balance will be repaid over the term of the operating agreement. As of March 31, 2015, $107.7 million was outstanding under the Construction Facility. The Company also entered into interest rate swap and interest rate cap agreements related to its non-recourse debt in connection with the project. Refer to Note 9 - Derivative Financial Instruments. | ||||||||
Guarantees | ||||||||
Australia | ||||||||
The Company has entered into certain guarantees in connection with the financing and construction performance of a facility in Australia. The obligations amounted to approximately AUD 214.0 million, or $164.6 million, based on exchange rates as of March 31, 2015. These guarantees are secured by outstanding letters of credit under the Company's Revolver as of March 31, 2015. | ||||||||
At March 31, 2015, the Company also had nine other letters of credit outstanding under separate international facilities relating to performance guarantees of its Australian subsidiary totaling $11.7 million. | ||||||||
South Africa | ||||||||
In connection with the creation of South African Custodial Services Pty. Limited ("SACS"), the Company entered into certain guarantees related to the financing, construction and operation of the prison. As of March 31, 2015, the Company guaranteed obligations amounting to 22.0 million South African Rand, or $1.8 million based on exchange rates as of March 31, 2015. In the event SACS is unable to maintain the required funding in a rectification account maintained for the payment of certain costs in the event of contract termination, a previously existing guarantee by the Company for the shortfall will need to be re-instated. The remaining guarantee of 21.0 million South African Rand is secured by outstanding letters of credit under the Company's Revolver as of March 31, 2015. | ||||||||
In addition to the above, the Company has also agreed to provide a loan, if required, of up to 20 million South African Rand, or $1.7 million based on exchange rates as of March 31, 2015, referred to as the Shareholder's Loan, to SACS for the purpose of financing SACS’ obligations under its contract with the South African government. No amounts have been funded under the standby facility, and the Company does not currently anticipate that such funding will be required by SACS in the future. The Company’s obligations under the Shareholder's Loan expire upon the earlier of full funding or SACS’s release from its obligations under its debt agreements. The lenders’ ability to draw on the Shareholder's Loan is limited to certain circumstances, including termination of the contract. | ||||||||
The Company has also guaranteed certain obligations of SACS to the security trustee for SACS’ lenders. The Company secured its guarantee to the security trustee by ceding its rights to claims against SACS in respect of any loans or other finance agreements, and by pledging the Company’s shares in SACS. The Company’s liability under the guarantee is limited to the cession and pledge of shares. The guarantee expires upon expiration of the cession and pledge agreements. | ||||||||
Canada | ||||||||
In connection with a design, build, finance and maintenance contract for a facility in Canada, the Company guaranteed certain potential tax obligations of a trust. The potential estimated exposure of these obligations is Canadian Dollar (“CAD”) 2.5 million, or $2.0 million, based on exchange rates as of March 31, 2015, commencing in 2017. The Company has a liability of $2.0 million related to this exposure included in Other Non-Current Liabilities as of March 31, 2015 and December 31, 2014, respectively. To secure this guarantee, the Company purchased Canadian dollar denominated securities with maturities matched to the estimated tax obligations in 2017 to 2021. The Company has recorded an asset equal to the current fair value of those securities included in Other Non-Current Assets as of March 31, 2015 and December 31, 2014 on its consolidated balance sheets. The Company does not currently operate or manage this facility. | ||||||||
United Kingdom | ||||||||
In connection with the creation of GEOAmey, the Company and its joint venture partner guarantee the availability of working capital in equal proportion to ensure that GEOAmey can comply with current and future contractual commitments related to the performance of its operations. The Company and the 50% joint venture partner have each extended a £12 million line of credit of which £10.5 million, or $15.6 million, based on exchange rates as of March 31, 2015, was outstanding as of March 31, 2015. The Company's maximum exposure relative to the joint venture is its note receivable of $15.6 million, which is included in Other Non-Current Assets in the accompanying consolidated balance sheets, and future financial support necessary to guarantee performance under the contract. | ||||||||
Except as discussed above, the Company does not have any off balance sheet arrangements. |
Commitments_and_Contingencies_
Commitments and Contingencies and Other | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES AND OTHER | COMMITMENTS, CONTINGENCIES AND OTHER |
Litigation, Claims and Assessments | |
The nature of the Company's business exposes it to various types of third-party legal claims or litigation against the Company, including, but not limited to, civil rights claims relating to conditions of confinement and/or mistreatment, sexual misconduct claims brought by prisoners or detainees, medical malpractice claims, product liability claims, intellectual property infringement claims, claims relating to employment matters (including, but not limited to, employment discrimination claims, union grievances and wage and hour claims), property loss claims, environmental claims, automobile liability claims, indemnification claims by its customers and other third parties, contractual claims and claims for personal injury or other damages resulting from contact with the Company's facilities, programs, electronic monitoring products, personnel or prisoners, including damages arising from a prisoner's escape or from a disturbance or riot at a facility. The Company does not expect the outcome of any pending claims or legal proceedings to have a material adverse effect on its financial condition, results of operations or cash flows. | |
Commitments | |
The Company currently has contractual commitments for a number of projects using Company financing. The Company’s management estimates that the cost of these existing capital projects will be $252.1 million of which $86.1 million was spent through the first quarter of 2015. The Company estimates the remaining capital requirements related to these capital projects will be $166.0 million which will be spent through 2017. Included in these commitments is a contractual commitment to provide a capital contribution towards the design and construction of a prison project in Ravenhall, a locality near Melbourne, Australia, in the amount of AUD 115 million, or $88.4 million, based on exchange rates as of March 31, 2015. This capital contribution is expected to be made in January 2017. | |
Additionally, in connection with the Ravenhall Prison Project, the Company has a contractual commitment for construction of the facility and has entered into a syndicated facility agreement with National Australia Bank Limited to provide funding for the project up to AUD 791 million, or $608.4 million, based on exchange rates as of March 31, 2015. Refer to Note 10 - Debt. | |
Contract Awards | |
On January 28, 2015, GEO announced that GEO signed a contract for the reactivation of the company-owned, 400-bed Mesa Verde Detentional Facility (the "Facility") in California. The Facility will house immigration detainees under an intergovernmental service agreement between the City of McFarland and U.S. Immigration Customs and Enforcement ("ICE"). | |
On February 18, 2015, GEO announced the closing of its previously announced acquisition of the LCS Facilities totaling more than 6,500 beds from LCS. Refer to Note 2 - Business Combinations. | |
Idle Facilities | |
The Company is currently marketing approximately 4,386 vacant beds at five of its idle facilities to potential customers. The carrying values of these idle facilities, which are included in Property and Equipment, Net in the accompanying consolidated balance sheets, totaled $103.9 million as of March 31, 2015, excluding equipment and other assets that can be easily transferred for use at other facilities. |
Business_Segments_and_Geograph
Business Segments and Geographic Information | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 U.S. Corrections & Detention 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 | ||||||||
31-Mar-15 | 31-Mar-14 | |||||||
Revenues: | ||||||||
U.S. Corrections & Detention | $ | 285,609 | $ | 266,715 | ||||
GEO Care | 79,356 | 76,652 | ||||||
International Services | 40,654 | 49,770 | ||||||
Facility Construction & Design (1) | 21,750 | — | ||||||
Total revenues | $ | 427,369 | $ | 393,137 | ||||
Operating income: | ||||||||
U.S. Corrections & Detention | $ | 63,597 | $ | 58,810 | ||||
GEO Care | 18,506 | 15,701 | ||||||
International Services | 1,815 | 2,561 | ||||||
Facility Construction & Design (1) | 602 | — | ||||||
Operating income from segments | $ | 84,520 | $ | 77,072 | ||||
(1) In September 2014, the Company began the design and construction of a new prison contract located in Ravenhall, a locality near Melbourne, Australia. During the design and construction phase, the Company recognizes revenue as earned on a percentage of completion basis measured by the percentage of costs incurred to date as compared to estimated total costs for the design and construction of the facility. Costs incurred and estimated earnings in excess of billings is classified as Contract Receivable in the accompanying consolidated balance sheets and is recorded at the net present value based on the timing of expected future settlement. | ||||||||
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 | ||||||||
31-Mar-15 | 31-Mar-14 | |||||||
Total operating income from segments | $ | 84,520 | $ | 77,072 | ||||
Unallocated amounts: | ||||||||
General and Administrative Expenses | (31,848 | ) | (28,502 | ) | ||||
Net Interest Expense | (22,573 | ) | (19,920 | ) | ||||
Income before income taxes and equity in earnings of affiliates | $ | 30,099 | $ | 28,650 | ||||
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. Our 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 $1.1 million and $1.2 million in earnings, net of tax, for SACS operations during the three months ended March 31, 2015 and March 31, 2014, respectively, which are included in equity in earnings of affiliates, net of income tax provision in the accompanying consolidated statements of operations. As of March 31, 2015 and December 31, 2014, the Company’s investment in SACS was $8.8 million and $8.0 million, respectively. | ||||||||
The Company has recorded $0.4 million and $0.3 million in earnings, net of tax, for GEOAmey’s operations during the three months ended March 31, 2015 and March 31, 2014, which are included in equity in earnings of affiliates, net of income tax provision, in the accompanying consolidated statements of operations. As of March 31, 2015 and December 31, 2014, the Company’s investment in GEOAmey was $(1.7) million and $(2.2) million, respectively, and represents its share of cumulative reported losses. Losses in excess of the Company's investment have been recognized as the Company has provided certain loans and guarantees to provide financial support to GEOAmey. Refer to Note 10 - Debt. |
Benefit_Plans
Benefit Plans | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||
Benefit Plans | BENEFIT PLANS | |||||||
The following table summarizes key information related to the Company’s pension plans and retirement agreements (in thousands): | ||||||||
Three Months Ended March 31, 2015 | Year Ended December 2014 | |||||||
Change in Projected Benefit Obligation | ||||||||
Projected benefit obligation, beginning of period | $ | 25,826 | $ | 20,032 | ||||
Service cost | 257 | 821 | ||||||
Interest cost | 236 | 935 | ||||||
Actuarial loss | 72 | 4,324 | ||||||
Benefits paid | (189 | ) | (286 | ) | ||||
Projected benefit obligation, end of period | $ | 26,202 | $ | 25,826 | ||||
Change in Plan Assets | ||||||||
Plan assets at fair value, beginning of period | $ | — | $ | — | ||||
Company contributions | 189 | 286 | ||||||
Benefits paid | (189 | ) | (286 | ) | ||||
Plan assets at fair value, end of period | $ | — | $ | — | ||||
Unfunded Status of the Plan | $ | (26,202 | ) | $ | (25,826 | ) | ||
Three Months Ended | ||||||||
31-Mar-15 | 31-Mar-14 | |||||||
Components of Net Periodic Benefit Cost | ||||||||
Service cost | $ | 257 | $ | 694 | ||||
Interest cost | 236 | 622 | ||||||
Net loss | 72 | 197 | ||||||
Net periodic pension cost | $ | 565 | $ | 1,513 | ||||
The long-term portion of the pension liability as of March 31, 2015 and December 31, 2014 was $25.9 million and $24.9 million, respectively, and is included in Other Non-Current Liabilities in the accompanying consolidated balance sheets. |
Recent_Accounting_Standards
Recent Accounting Standards | 3 Months Ended |
Mar. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCMENTS |
In April 2015, the FASB issued ASU No. 2015-03 "Interest-Imputation of Interest," which is intended to simplify the presentation of debt issuance costs. The amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The amendments resulting from ASU No. 2015-03 are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015 with early adoption permitted for financial statements that have not previously been issued. The implementation of this standard is not expected to have a material impact on the Company's financial position, results of operations or cash flows. | |
In February 2015, the FASB issued ASU No. 2015-02 "Consolidation," which modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities ("VIEs") or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership, affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships and provides a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. The amendments resulting from ASU No. 2015-02 are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015 with early adoption permitted. The implementation of this standard is not expected to have a material impact on the Company's financial position, results of operations or cash flows. |
Condensed_Consolidating_Financ
Condensed Consolidating Financial Information | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||
Condensed Consolidating Financial Information | CONDENSED CONSOLIDATING FINANCIAL INFORMATION | |||||||||||||||||||
As of March 31, 2015, the Company's 6.625% Senior Notes, 5.125% Senior Notes, 5 7/8% Senior Notes and 5.875% Senior Notes were fully and unconditionally guaranteed on a joint and several senior unsecured basis by the Company and certain of its wholly-owned domestic subsidiaries (the “Subsidiary Guarantors”). The following condensed consolidating financial information, which has been prepared in accordance with the requirements for presentation of Rule 3-10(d) of Regulation S-X promulgated under the Securities Act, presents the condensed consolidating financial information separately for: | ||||||||||||||||||||
(i) | The GEO Group, Inc., as the issuer of the notes; | |||||||||||||||||||
(ii) | The Subsidiary Guarantors, on a combined basis, which are 100% owned by The GEO Group, Inc., and which are guarantors of the notes; | |||||||||||||||||||
(iii) | The Company’s other subsidiaries, on a combined basis, which are not guarantors of the notes (the “Non-Guarantor Subsidiaries”); | |||||||||||||||||||
(iv) | Consolidating entries and eliminations representing adjustments to (a) eliminate intercompany transactions between or among the Company, the Subsidiary Guarantors and the Subsidiary Non-Guarantors and (b) eliminate the investments in the Company’s subsidiaries; and | |||||||||||||||||||
(v) | The Company and its subsidiaries on a consolidated basis. | |||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
For the Three Months Ended March 31, 2015 | ||||||||||||||||||||
The GEO Group, Inc. | Combined | Combined | Eliminations | Consolidated | ||||||||||||||||
Subsidiary | Non-Guarantor | |||||||||||||||||||
Guarantors | Subsidiaries | |||||||||||||||||||
Revenues | $ | 144,383 | $ | 339,887 | $ | 64,967 | $ | (121,868 | ) | $ | 427,369 | |||||||||
Operating expenses | 116,225 | 268,781 | 54,771 | (121,868 | ) | 317,909 | ||||||||||||||
Depreciation and amortization | 6,203 | 17,697 | 1,040 | — | 24,940 | |||||||||||||||
General and administrative expenses | 10,323 | 16,880 | 4,645 | — | 31,848 | |||||||||||||||
Operating income | 11,632 | 36,529 | 4,511 | — | 52,672 | |||||||||||||||
Interest income | 6,178 | 1,231 | 2,137 | (7,473 | ) | 2,073 | ||||||||||||||
Interest expense | (14,310 | ) | (14,636 | ) | (3,173 | ) | 7,473 | (24,646 | ) | |||||||||||
Income before income taxes and equity in earnings of affiliates | 3,500 | 23,124 | 3,475 | — | 30,099 | |||||||||||||||
Income tax provision | — | 1,740 | 1,088 | — | 2,828 | |||||||||||||||
Equity in earnings of affiliates, net of income tax provision | — | — | 1,485 | — | 1,485 | |||||||||||||||
Income before equity in income of consolidated subsidiaries | 3,500 | 21,384 | 3,872 | — | 28,756 | |||||||||||||||
Income from consolidated subsidiaries, net of income tax provision | 25,256 | — | — | (25,256 | ) | — | ||||||||||||||
Net income | 28,756 | 21,384 | 3,872 | (25,256 | ) | 28,756 | ||||||||||||||
Net loss attributable to noncontrolling interests | — | — | 21 | 21 | ||||||||||||||||
Net income attributable to The GEO Group, Inc. | $ | 28,756 | $ | 21,384 | $ | 3,893 | $ | (25,256 | ) | $ | 28,777 | |||||||||
Net income | $ | 28,756 | $ | 21,384 | $ | 3,872 | $ | (25,256 | ) | $ | 28,756 | |||||||||
Other comprehensive income (loss), net of tax | — | 40 | (5,761 | ) | — | (5,721 | ) | |||||||||||||
Total comprehensive income (loss) | $ | 28,756 | $ | 21,424 | $ | (1,889 | ) | $ | (25,256 | ) | $ | 23,035 | ||||||||
Comprehensive loss attributable to noncontrolling interests | — | — | 37 | — | 37 | |||||||||||||||
Comprehensive income (loss) attributable to The GEO Group, Inc. | $ | 28,756 | $ | 21,424 | $ | (1,852 | ) | $ | (25,256 | ) | $ | 23,072 | ||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
For the Three Months Ended March 31, 2014 | ||||||||||||||||||||
The GEO Group, Inc. | Combined | Combined | Eliminations | Consolidated | ||||||||||||||||
Subsidiary | Non-Guarantor | |||||||||||||||||||
Guarantors | Subsidiaries | |||||||||||||||||||
Revenues | $ | 134,754 | $ | 314,985 | $ | 52,331 | $ | (108,933 | ) | $ | 393,137 | |||||||||
Operating expenses | 107,222 | 250,680 | 42,954 | (108,933 | ) | 291,923 | ||||||||||||||
Depreciation and amortization | 6,406 | 16,634 | 1,102 | — | 24,142 | |||||||||||||||
General and administrative expenses | 9,339 | 15,536 | 3,627 | — | 28,502 | |||||||||||||||
Operating income | 11,787 | 32,135 | 4,648 | — | 48,570 | |||||||||||||||
Interest income | 5,536 | 436 | 679 | (5,919 | ) | 732 | ||||||||||||||
Interest expense | (11,074 | ) | (13,763 | ) | (1,734 | ) | 5,919 | (20,652 | ) | |||||||||||
Income before income taxes and equity in earnings of affiliates | 6,249 | 18,808 | 3,593 | — | 28,650 | |||||||||||||||
Income tax provision | — | 1,294 | 844 | — | 2,138 | |||||||||||||||
Equity in earnings of affiliates, net of income tax provision | — | — | 1,484 | — | 1,484 | |||||||||||||||
Income before equity in income of consolidated subsidiaries | 6,249 | 17,514 | 4,233 | — | 27,996 | |||||||||||||||
Income from consolidated subsidiaries, net of income tax provision | 21,747 | — | — | (21,747 | ) | — | ||||||||||||||
Net income | 27,996 | 17,514 | 4,233 | (21,747 | ) | 27,996 | ||||||||||||||
Net income attributable to noncontrolling interests | — | — | (6 | ) | — | (6 | ) | |||||||||||||
Net income attributable to The GEO Group, Inc. | $ | 27,996 | $ | 17,514 | $ | 4,227 | $ | (21,747 | ) | $ | 27,990 | |||||||||
Net income | $ | 27,996 | $ | 17,514 | $ | 4,233 | $ | (21,747 | ) | $ | 27,996 | |||||||||
Other comprehensive income, net of tax | — | 19 | 1,027 | — | 1,046 | |||||||||||||||
Total comprehensive income | $ | 27,996 | $ | 17,533 | $ | 5,260 | $ | (21,747 | ) | $ | 29,042 | |||||||||
Comprehensive loss attributable to noncontrolling interests | — | — | (2 | ) | — | (2 | ) | |||||||||||||
Comprehensive income attributable to The GEO Group, Inc. | $ | 27,996 | $ | 17,533 | $ | 5,258 | $ | (21,747 | ) | $ | 29,040 | |||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
As of March 31, 2015 | ||||||||||||||||||||
The GEO Group, Inc. | Combined | Combined | Eliminations | Consolidated | ||||||||||||||||
Subsidiary | Non-Guarantor | |||||||||||||||||||
Guarantors | Subsidiaries | |||||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | 12,962 | $ | 12,433 | $ | 43,586 | $ | — | $ | 68,981 | ||||||||||
Restricted cash and investments | — | — | 8,489 | — | 8,489 | |||||||||||||||
Accounts receivable, less allowance for doubtful accounts | 97,109 | 150,561 | 13,610 | — | 261,280 | |||||||||||||||
Current deferred income tax assets | — | 21,657 | 4,227 | — | 25,884 | |||||||||||||||
Prepaid expenses and other current assets | 5,545 | 21,853 | 18,176 | (1,154 | ) | 44,420 | ||||||||||||||
Total current assets | 115,616 | 206,504 | 88,088 | (1,154 | ) | 409,054 | ||||||||||||||
Restricted Cash and Investments | 126 | 15,175 | 7,916 | — | 23,217 | |||||||||||||||
Property and Equipment, Net | 738,622 | 1,085,096 | 83,345 | — | 1,907,063 | |||||||||||||||
Contract Receivable | — | — | 87,042 | — | 87,042 | |||||||||||||||
Direct Finance Lease Receivable | — | — | 7,077 | — | 7,077 | |||||||||||||||
Intercompany Receivable | 963,417 | 138,933 | — | (1,102,350 | ) | — | ||||||||||||||
Non-Current Deferred Income Tax Assets | — | — | 5,873 | — | 5,873 | |||||||||||||||
Goodwill | 34 | 600,731 | 440 | — | 601,205 | |||||||||||||||
Intangible Assets, Net | — | 223,194 | 977 | — | 224,171 | |||||||||||||||
Investment in Subsidiaries | 1,146,712 | 238,847 | — | (1,385,559 | ) | — | ||||||||||||||
Other Non-Current Assets | 24,635 | 111,702 | 46,957 | (80,075 | ) | 103,219 | ||||||||||||||
Total Assets | $ | 2,989,162 | $ | 2,620,182 | $ | 327,715 | $ | (2,569,138 | ) | $ | 3,367,921 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
Accounts payable | $ | 8,471 | $ | 49,757 | $ | 2,307 | $ | — | $ | 60,535 | ||||||||||
Accrued payroll and related taxes | — | 42,159 | 13,692 | — | 55,851 | |||||||||||||||
Accrued expenses and other | 41,609 | 67,228 | 28,138 | (1,154 | ) | 135,821 | ||||||||||||||
Current portion of capital lease obligations, long-term debt and non-recourse debt | 3,001 | 1,241 | 12,406 | — | 16,648 | |||||||||||||||
Total current liabilities | 53,081 | 160,385 | 56,543 | (1,154 | ) | 268,855 | ||||||||||||||
Non-Current Deferred Income Tax Liabilities | (4,351 | ) | 14,414 | 5 | — | 10,068 | ||||||||||||||
Intercompany Payable | 114,710 | 971,134 | 16,506 | (1,102,350 | ) | — | ||||||||||||||
Other Non-Current Liabilities | 4,301 | 142,741 | 32,699 | (80,075 | ) | 99,666 | ||||||||||||||
Capital Lease Obligations | — | 9,574 | — | — | 9,574 | |||||||||||||||
Long-Term Debt | 1,795,267 | — | — | — | 1,795,267 | |||||||||||||||
Non-Recourse Debt | — | — | 158,060 | — | 158,060 | |||||||||||||||
Commitments & Contingencies and Other | ||||||||||||||||||||
Shareholders' Equity: | ||||||||||||||||||||
The GEO Group, Inc. Shareholders' Equity | 1,026,154 | 1,321,934 | 63,625 | (1,385,559 | ) | 1,026,154 | ||||||||||||||
Noncontrolling Interests | — | — | 277 | — | 277 | |||||||||||||||
Total Shareholders’ Equity | 1,026,154 | 1,321,934 | 63,902 | (1,385,559 | ) | 1,026,431 | ||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 2,989,162 | $ | 2,620,182 | $ | 327,715 | $ | (2,569,138 | ) | $ | 3,367,921 | |||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||
The GEO Group, Inc. | Combined | Combined | Eliminations | Consolidated | ||||||||||||||||
Subsidiary | Non-Guarantor | |||||||||||||||||||
Guarantors | Subsidiaries | |||||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | 18,492 | $ | 782 | $ | 22,063 | $ | — | $ | 41,337 | ||||||||||
Restricted cash and investments | — | — | 4,341 | — | 4,341 | |||||||||||||||
Accounts receivable, less allowance for doubtful accounts | 92,456 | 159,505 | 17,077 | — | 269,038 | |||||||||||||||
Current deferred income tax assets | — | 21,657 | 4,227 | — | 25,884 | |||||||||||||||
Prepaid expenses and other current assets | 7,022 | 19,593 | 11,345 | (1,154 | ) | 36,806 | ||||||||||||||
Total current assets | 117,970 | 201,537 | 59,053 | (1,154 | ) | 377,406 | ||||||||||||||
Restricted Cash and Investments | 228 | 13,729 | 5,621 | — | 19,578 | |||||||||||||||
Property and Equipment, Net | 726,238 | 961,896 | 84,032 | — | 1,772,166 | |||||||||||||||
Direct Finance Lease Receivable | — | — | 9,256 | — | 9,256 | |||||||||||||||
Contract Receivable | — | — | 66,229 | 66,229 | ||||||||||||||||
Intercompany Receivable | 962,314 | 119,414 | — | (1,081,728 | ) | — | ||||||||||||||
Non-Current Deferred Income Tax Assets | — | — | 5,873 | — | 5,873 | |||||||||||||||
Goodwill | 34 | 493,389 | 467 | — | 493,890 | |||||||||||||||
Intangible Assets, Net | — | 154,237 | 1,038 | — | 155,275 | |||||||||||||||
Investment in Subsidiaries | 855,870 | 438,243 | — | (1,294,113 | ) | — | ||||||||||||||
Other Non-Current Assets | 25,635 | 110,105 | 46,838 | (80,043 | ) | 102,535 | ||||||||||||||
Total Assets | $ | 2,688,289 | $ | 2,492,550 | $ | 278,407 | $ | (2,457,038 | ) | $ | 3,002,208 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
Accounts payable | $ | 7,549 | $ | 47,130 | $ | 3,476 | $ | — | $ | 58,155 | ||||||||||
Accrued payroll and related taxes | — | 24,184 | 14,372 | — | 38,556 | |||||||||||||||
Accrued expenses and other | 47,637 | 75,574 | 18,555 | (1,154 | ) | 140,612 | ||||||||||||||
Current portion of capital lease obligations, long-term debt and non-recourse debt | 3,001 | 1,170 | 12,581 | — | 16,752 | |||||||||||||||
Total current liabilities | 58,187 | 148,058 | 48,984 | (1,154 | ) | 254,075 | ||||||||||||||
Non-Current Deferred Income Tax Liabilities | (4,095 | ) | 14,170 | (7 | ) | — | 10,068 | |||||||||||||
Intercompany Payable | 121,327 | 942,071 | 18,330 | (1,081,728 | ) | — | ||||||||||||||
Other Non-Current Liabilities | 4,372 | 143,584 | 19,507 | (80,034 | ) | 87,429 | ||||||||||||||
Capital Lease Obligations | — | 9,856 | — | — | 9,856 | |||||||||||||||
Long-Term Debt | 1,462,819 | — | — | — | 1,462,819 | |||||||||||||||
Non-Recourse Debt | — | — | 131,968 | — | 131,968 | |||||||||||||||
Commitments & Contingencies and Other | ||||||||||||||||||||
Shareholders' Equity: | ||||||||||||||||||||
The GEO Group, Inc. Shareholders' Equity | 1,045,679 | 1,234,811 | 59,311 | (1,294,122 | ) | 1,045,679 | ||||||||||||||
Noncontrolling Interests | — | — | 314 | — | 314 | |||||||||||||||
Total Shareholders’ Equity | 1,045,679 | 1,234,811 | 59,625 | (1,294,122 | ) | 1,045,993 | ||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 2,688,289 | $ | 2,492,550 | $ | 278,407 | $ | (2,457,038 | ) | $ | 3,002,208 | |||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
For the Three Months Ended March 31, 2015 | ||||||||||||||||||||
The GEO Group, Inc. | Combined | Combined | Consolidated | |||||||||||||||||
Subsidiary | Non-Guarantor | |||||||||||||||||||
Guarantors | Subsidiaries | |||||||||||||||||||
Cash Flow from Operating Activities: | ||||||||||||||||||||
Net cash provided by operating activities | $ | 35,300 | $ | 30,416 | $ | (4,971 | ) | $ | 60,745 | |||||||||||
Cash Flow from Investing Activities: | ||||||||||||||||||||
Acquisition of LCS, net of cash acquired | (307,403 | ) | — | — | (307,403 | ) | ||||||||||||||
Proceeds from sale of property and equipment | — | 20 | — | 20 | ||||||||||||||||
Insurance proceeds - damaged property | — | 700 | — | 700 | ||||||||||||||||
Change in restricted cash and investments | 102 | (6,443 | ) | (1,767 | ) | (8,108 | ) | |||||||||||||
Capital expenditures | (20,561 | ) | (13,042 | ) | (595 | ) | (34,198 | ) | ||||||||||||
Net cash used in investing activities | (327,862 | ) | (18,765 | ) | (2,362 | ) | (348,989 | ) | ||||||||||||
Cash Flow from Financing Activities: | ||||||||||||||||||||
Proceeds from long-term debt | 371,000 | — | — | 371,000 | ||||||||||||||||
Payments on long-term debt | (38,750 | ) | — | — | (38,750 | ) | ||||||||||||||
Payments on non-recourse debt | — | — | (1,645 | ) | (1,645 | ) | ||||||||||||||
Proceeds from non-recourse debt | — | — | 33,019 | 33,019 | ||||||||||||||||
Taxes paid related to net share settlements of equity awards | (1,123 | ) | — | — | (1,123 | ) | ||||||||||||||
Proceeds from reissuance of treasury stock in connection with ESPP | 98 | — | — | 98 | ||||||||||||||||
Debt issuance costs | — | — | (1,245 | ) | (1,245 | ) | ||||||||||||||
Tax benefit related to equity compensation | 569 | — | — | 569 | ||||||||||||||||
Proceeds from stock options exercised | 1,215 | — | — | 1,215 | ||||||||||||||||
Cash dividends paid | (45,977 | ) | — | — | (45,977 | ) | ||||||||||||||
Net cash provided by financing activities | 287,032 | — | 30,129 | 317,161 | ||||||||||||||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | — | — | (1,273 | ) | (1,273 | ) | ||||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | (5,530 | ) | 11,651 | 21,523 | 27,644 | |||||||||||||||
Cash and Cash Equivalents, beginning of period | 18,492 | 782 | 22,063 | 41,337 | ||||||||||||||||
Cash and Cash Equivalents, end of period | $ | 12,962 | $ | 12,433 | $ | 43,586 | $ | 68,981 | ||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
For the Three Months Ended March 31, 2014 | ||||||||||||||||||||
The GEO Group, Inc. | Combined | Combined | Consolidated | |||||||||||||||||
Subsidiary | Non-Guarantor | |||||||||||||||||||
Guarantors | Subsidiaries | |||||||||||||||||||
Cash Flow from Operating Activities: | ||||||||||||||||||||
Net cash provided by operating activities | $ | 28,511 | $ | 25,116 | $ | 9,525 | $ | 63,152 | ||||||||||||
Cash Flow from Investing Activities: | ||||||||||||||||||||
Proceeds from sale of property and equipment | — | 165 | — | 165 | ||||||||||||||||
Acquisition of Protocol, cash consideration | — | (13,000 | ) | — | (13,000 | ) | ||||||||||||||
Change in restricted cash and investments | (185 | ) | (549 | ) | (2,539 | ) | (3,273 | ) | ||||||||||||
Capital expenditures | (8,586 | ) | (8,642 | ) | (303 | ) | (17,531 | ) | ||||||||||||
Net cash used in investing activities | (8,771 | ) | (22,026 | ) | (2,842 | ) | (33,639 | ) | ||||||||||||
Cash Flow from Financing Activities: | ||||||||||||||||||||
Proceeds from long-term debt | 103,000 | — | — | 103,000 | ||||||||||||||||
Payments on long-term debt | (108,750 | ) | (240 | ) | — | (108,990 | ) | |||||||||||||
Payments on non-recourse debt | — | — | (1,403 | ) | (1,403 | ) | ||||||||||||||
Proceeds from reissuance of treasury stock in connection with ESPP | 84 | — | — | 84 | ||||||||||||||||
Tax benefit related to equity compensation | 558 | — | — | 558 | ||||||||||||||||
Proceeds from stock options exercised | 3,275 | — | — | 3,275 | ||||||||||||||||
Cash dividends paid | (41,139 | ) | — | — | (41,139 | ) | ||||||||||||||
Net cash used in financing activities | (42,972 | ) | (240 | ) | (1,403 | ) | (44,615 | ) | ||||||||||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | — | — | 1,040 | 1,040 | ||||||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | (23,232 | ) | 2,850 | 6,320 | (14,062 | ) | ||||||||||||||
Cash and Cash Equivalents, beginning of period | 30,730 | 985 | 20,410 | 52,125 | ||||||||||||||||
Cash and Cash Equivalents, end of period | $ | 7,498 | $ | 3,835 | $ | 26,730 | $ | 38,063 | ||||||||||||
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS |
Dividend | |
On April 29, 2015, the Board of Directors declared a quarterly cash dividend of $0.62 per share of common stock, which is to be paid on May 21, 2015 to shareholders of record as of the close of business on May 11, 2015. | |
Idle Facilities | |
On April 28, 2015, the Company announced that it has begun to mobilize the company-owned 1,740-bed North Lake Correctional Facility (the "North Lake Facility") located in Baldwin, Michigan. The decision to mobilize the North Lake Facility was made as a result of the current demand for out-of-state correctional bed space. The mobilization effort will entail hiring staff and purchasing supplies in order to prepare the previously idle North Lake Facility to receive inmates. The Company currently does not have a contract to house inmates at the North Lake Facility, but believes that it may secure one or more contracts in the near future and expects it may need to activate the North Lake Facility in the next sixty to ninety days. |
Business_Combinations_Tables
Business Combinations (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Business Combinations [Abstract] | ||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The purchase price of $307.4 million has been preliminarily allocated to the estimated fair values of the assets acquired and liabilities assumed as of February 17, 2015 as follows (in '000's): | |||
Accounts receivable | $ | 9,395 | ||
Prepaid expenses and other current assets | 183 | |||
Property and equipment | 119,726 | |||
Intangible assets | 73,200 | |||
Total assets acquired | 202,504 | |||
Accounts payable and accrued expenses | 2,442 | |||
Total identifiable net assets | 200,062 | |||
Goodwill | 107,341 | |||
Total consideration paid | $ | 307,403 | ||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||
Schedule of intangible assets | The Company's intangible assets include facility management contracts, trade names and technology, as follows (in thousands): | |||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||
Weighted Average Useful Life (years) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||
Facility management contracts | 15.5 | $ | 227,750 | $ | (59,802 | ) | $ | 167,948 | $ | 154,591 | $ | (56,396 | ) | $ | 98,195 | |||||||||||
Technology | 7 | 24,000 | (12,977 | ) | 11,023 | 24,000 | (12,120 | ) | 11,880 | |||||||||||||||||
Trade name (Indefinite lived) | Indefinite | 45,200 | — | 45,200 | 45,200 | — | 45,200 | |||||||||||||||||||
Total acquired intangible assets | $ | 296,950 | $ | (72,779 | ) | $ | 224,171 | $ | 223,791 | $ | (68,516 | ) | $ | 155,275 | ||||||||||||
Estimated amortization expense for the remainder | Estimated amortization expense related to the Company's finite-lived intangible assets for the remainder of 2015 through 2019 and thereafter is as follows (in thousands): | |||||||||||||||||||||||||
Fiscal Year | Total Amortization Expense | |||||||||||||||||||||||||
Remainder of 2015 | $ | 14,183 | ||||||||||||||||||||||||
2016 | 18,882 | |||||||||||||||||||||||||
2017 | 18,850 | |||||||||||||||||||||||||
2018 | 15,991 | |||||||||||||||||||||||||
2019 | 15,663 | |||||||||||||||||||||||||
Thereafter | 95,402 | |||||||||||||||||||||||||
$ | 178,971 | |||||||||||||||||||||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||||||||||||||||
Fair value assets and liabilities measured on recurring basis | The following tables provide a summary of the Company’s significant financial assets and liabilities carried at fair value and measured on a recurring basis as of March 31, 2015 and December 31, 2014 (in thousands): | |||||||||||||||
Fair Value Measurements at March 31, 2015 | ||||||||||||||||
Carrying Value at March 31, 2015 | Quoted Prices in | Significant Other | Significant | |||||||||||||
Active Markets | Observable Inputs | Unobservable | ||||||||||||||
(Level 1) | (Level 2) | Inputs (Level 3) | ||||||||||||||
Assets: | ||||||||||||||||
Restricted investment: | ||||||||||||||||
Rabbi Trust | $ | 12,617 | $ | — | $ | 12,617 | $ | — | ||||||||
Fixed income securities | 1,870 | — | 1,870 | — | ||||||||||||
Interest rate cap derivatives | 349 | — | $ | 349 | — | |||||||||||
Liabilities: | ||||||||||||||||
Interest rate swap derivatives | $ | 24,050 | $ | — | $ | 24,050 | $ | — | ||||||||
Fair Value Measurements at December 31, 2014 | ||||||||||||||||
Carrying | Quoted Prices in | Significant Other | Significant | |||||||||||||
Value at | Active Markets | Observable Inputs | Unobservable | |||||||||||||
31-Dec-14 | (Level 1) | (Level 2) | Inputs (Level 3) | |||||||||||||
Assets: | ||||||||||||||||
Restricted investments: | ||||||||||||||||
Rabbi Trust | $ | 11,281 | $ | — | $ | 11,281 | $ | — | ||||||||
Fixed income securities | 1,966 | — | 1,966 | — | ||||||||||||
Interest rate cap derivatives | 570 | 570 | ||||||||||||||
Liabilities: | ||||||||||||||||
Interest rate swap derivative liabilities | $ | 19,248 | $ | — | $ | 19,248 | $ | — | ||||||||
Fair_Value_of_Assets_and_Liabi1
Fair Value of Assets and Liabilities (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||
Carrying value and estimated fair value of financial instruments | The following tables present the carrying values of those financial instruments and the estimated corresponding fair values at March 31, 2015 and December 31, 2014 (in thousands): | |||||||||||||||||||
Estimated Fair Value Measurements at March 31, 2015 | ||||||||||||||||||||
Carrying Value as of March 31, 2015 | Total Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 68,981 | $ | 68,981 | $ | 68,981 | $ | — | $ | — | ||||||||||
Restricted cash | 19,089 | 19,089 | 4,247 | 14,842 | — | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Borrowings under senior credit facility | $ | 697,750 | $ | 698,855 | $ | — | $ | 698,855 | $ | — | ||||||||||
5.875% Senior Notes | 250,000 | 260,000 | — | 260,000 | — | |||||||||||||||
5.125% Senior Notes | 300,000 | 315,375 | 315,375 | |||||||||||||||||
5⅞% Senior Notes | 250,000 | 255,000 | — | 255,000 | — | |||||||||||||||
6.625% Senior Notes | 300,000 | 318,000 | — | 318,000 | — | |||||||||||||||
Non-recourse debt, Australian subsidiary | 156,442 | 159,484 | — | 159,484 | — | |||||||||||||||
Other non-recourse debt, including current portion | 14,025 | 14,111 | — | 14,111 | — | |||||||||||||||
Estimated Fair Value Measurements at December 31, 2014 | ||||||||||||||||||||
Carrying Value as of December 31, 2014 | Total Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 41,337 | $ | 41,337 | $ | 41,337 | $ | — | $ | — | ||||||||||
Restricted cash | 12,638 | 12,638 | 3,889 | 8,749 | — | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Borrowings under senior credit facility | $ | 365,500 | $ | 364,411 | $ | — | $ | 364,411 | $ | — | ||||||||||
5.875% Senior Notes | 250,000 | 256,720 | — | 256,720 | — | |||||||||||||||
5.125% Senior Notes | 300,000 | 296,814 | — | 296,814 | — | |||||||||||||||
5⅞% Senior Notes | 250,000 | 256,720 | — | 256,720 | — | |||||||||||||||
6.625% Senior Notes | 300,000 | 315,750 | — | 315,750 | — | |||||||||||||||
Non-recourse debt, Australian subsidiary | 95,714 | 95,871 | — | 95,871 | — | |||||||||||||||
Other non-recourse debt, including current portion | 48,836 | 52,016 | — | 52,016 | — | |||||||||||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||
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 (in thousands): | ||||||||||||||||||||||||||
Common shares | Additional | Earnings in Excess of | Accumulated | Noncontrolling | Total | ||||||||||||||||||||||
Paid-In | Other | Shareholders' | |||||||||||||||||||||||||
Comprehensive | |||||||||||||||||||||||||||
Shares | Amount | Capital | Distributions | Loss | Interests | Equity | |||||||||||||||||||||
Balance, December 31, 2014 | 74,191 | $ | 742 | $ | 866,056 | $ | 206,342 | $ | (27,461 | ) | $ | 314 | $ | 1,045,993 | |||||||||||||
Proceeds from exercise of stock options | 54 | — | 1,215 | — | — | — | 1,215 | ||||||||||||||||||||
Tax benefit related to equity compensation | — | — | 569 | — | — | — | 569 | ||||||||||||||||||||
Stock-based compensation expense | — | — | 432 | — | — | — | 432 | ||||||||||||||||||||
Amortization of restricted stock | — | — | 2,189 | — | — | — | 2,189 | ||||||||||||||||||||
Restricted stock granted | 396 | 4 | (4 | ) | — | — | — | — | |||||||||||||||||||
Restricted stock canceled | (3 | ) | — | — | — | — | — | — | |||||||||||||||||||
Dividends paid | — | — | — | (45,977 | ) | — | — | (45,977 | ) | ||||||||||||||||||
Shares withheld for net settlements of share-based awards | (25 | ) | — | (1,123 | ) | — | — | — | (1,123 | ) | |||||||||||||||||
Issuance of common stock - ESPP | 2 | — | 98 | — | — | — | 98 | ||||||||||||||||||||
Net income (loss) | — | — | — | 28,777 | — | (21 | ) | 28,756 | |||||||||||||||||||
Other comprehensive loss | — | — | — | — | (5,705 | ) | (16 | ) | (5,721 | ) | |||||||||||||||||
Balance, March 31, 2015 | 74,615 | $ | 746 | $ | 869,432 | $ | 189,142 | $ | (33,166 | ) | $ | 277 | $ | 1,026,431 | |||||||||||||
Dividends Declared | During the three months ended March 31, 2015 and the year ended December 31, 2014, respectively, GEO declared and paid the following regular cash distributions to its shareholders as follows: | ||||||||||||||||||||||||||
Declaration Date | Record Date | Payment Due | Distribution Per Share | Aggregate Payment Amount (in millions) | |||||||||||||||||||||||
February 18, 2014 | 3-Mar-14 | March 14, 2014 | $0.57 | $41.10 | |||||||||||||||||||||||
April 28, 2014 | 15-May-14 | May 27, 2014 | $0.57 | $41.50 | |||||||||||||||||||||||
August 5, 2014 | 18-Aug-14 | August 29, 2014 | $0.57 | $41.40 | |||||||||||||||||||||||
November 5, 2014 | 17-Nov-14 | November 26, 2014 | $0.62 | $46.00 | |||||||||||||||||||||||
February 6, 2015 | 17-Feb-15 | February 27, 2015 | $0.62 | $46.00 | |||||||||||||||||||||||
Schedule of accumulated other comprehensive income (loss) | The components of accumulated other comprehensive income (loss) attributable to GEO within shareholders' equity are as follows: | ||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||
Foreign currency translation adjustments, net of tax attributable to The GEO Group, Inc. (1) | Unrealized (loss)/gain on derivatives, net of tax | Pension adjustments, net of tax | Total | ||||||||||||||||||||||||
Balance, December 31, 2014 | $ | (6,903 | ) | $ | (16,322 | ) | $ | (4,236 | ) | $ | (27,461 | ) | |||||||||||||||
Current-period other comprehensive (loss) income | (1,665 | ) | (4,080 | ) | 40 | (5,705 | ) | ||||||||||||||||||||
Balance, March 31, 2015 | $ | (8,568 | ) | $ | (20,402 | ) | $ | (4,196 | ) | $ | (33,166 | ) | |||||||||||||||
(1) The foreign currency translation related to noncontrolling interests was not significant at March 31, 2015 or December 31, 2014. |
Equity_Incentive_Plans_Tables
Equity Incentive Plans (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Summary of the activity of stock option awards | A summary of the activity of stock option awards issued and outstanding under Company plans is as follows for the three months ended March 31, 2015: | ||||||||||||
Shares | Wtd. Avg. | Wtd. Avg. | Aggregate | ||||||||||
Exercise | Remaining | Intrinsic | |||||||||||
Price | Contractual Term (years) | Value | |||||||||||
(in thousands) | (in thousands) | ||||||||||||
Options outstanding at December 31, 2014 | 664 | $ | 23.89 | 6.77 | $ | 10,935 | |||||||
Options granted | 256 | 43.15 | |||||||||||
Options exercised | (53 | ) | 23.98 | ||||||||||
Options forfeited/canceled/expired | (5 | ) | 40.32 | ||||||||||
Options outstanding at March 31, 2015 | 862 | $ | 29.53 | 7.51 | $ | 8,732 | |||||||
Options vested and expected to vest at March 31, 2015 | 806 | $ | 28.92 | 7.37 | $ | 8,576 | |||||||
Options exercisable at March 31, 2015 | 490 | $ | 23.84 | 6.2 | $ | 7,297 | |||||||
Summary of the activity of restricted stock | A summary of the activity of restricted stock outstanding is as follows for the three months ended March 31, 2015: | ||||||||||||
Shares | Wtd. Avg. | ||||||||||||
Grant Date | |||||||||||||
Fair Value | |||||||||||||
(in thousands) | |||||||||||||
Restricted stock outstanding at December 31, 2014 | 724 | $ | 30.97 | ||||||||||
Granted | 396 | 45.88 | |||||||||||
Vested | (97 | ) | 26.41 | ||||||||||
Forfeited/canceled | (3 | ) | 42.64 | ||||||||||
Restricted stock outstanding at March 31, 2015 | 1,020 | $ | 37.05 | ||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Basic and diluted earnings per share | Basic and diluted income from continuing operations per common share was calculated for the three months ended March 31, 2015 and March 31, 2014 as follows (in thousands, except per share data): | |||||||
Three Months Ended | ||||||||
31-Mar-15 | 31-Mar-14 | |||||||
Net income | $ | 28,756 | $ | 27,996 | ||||
Net income (loss) attributable to noncontrolling interests | 21 | (6 | ) | |||||
Net income attributable to The GEO Group, Inc. | 28,777 | 27,990 | ||||||
Basic earnings per share attributable to The GEO Group, Inc.: | ||||||||
Weighted average shares outstanding | 73,549 | 71,449 | ||||||
Per share amount | $ | 0.39 | $ | 0.39 | ||||
Diluted earnings per share attributable to The GEO Group, Inc.: | ||||||||
Weighted average shares outstanding | 73,549 | 71,449 | ||||||
Dilutive effect of equity incentive plans | 335 | 446 | ||||||
Weighted average shares assuming dilution | 73,884 | 71,895 | ||||||
Per share amount | $ | 0.39 | $ | 0.39 | ||||
Debt_Tables
Debt (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Summary of Debt | Debt outstanding as of March 31, 2015 and December 31, 2014 consisted of the following (in thousands): | |||||||
March 31, 2015 | December 31, 2014 | |||||||
Senior Credit Facility: | ||||||||
Term loan | $ | 294,750 | $ | 295,500 | ||||
Revolver | 403,000 | 70,000 | ||||||
Total Senior Credit Facility | $ | 697,750 | $ | 365,500 | ||||
5.875% Senior Notes | ||||||||
Notes Due in 2024 | 250,000 | 250,000 | ||||||
5.125% Senior Notes: | ||||||||
Notes due in 2023 | 300,000 | 300,000 | ||||||
5⅞% Senior Notes | ||||||||
Notes Due in 2022 | 250,000 | 250,000 | ||||||
6.625% Senior Notes: | ||||||||
Notes due in 2021 | 300,000 | 300,000 | ||||||
Non-Recourse Debt : | ||||||||
Non-Recourse Debt | 171,138 | 145,262 | ||||||
Unamortized discount on non-recourse debt | (671 | ) | (712 | ) | ||||
Total Non-Recourse Debt | 170,467 | 144,550 | ||||||
Capital Lease Obligations | 10,665 | 10,924 | ||||||
Other debt | 667 | 421 | ||||||
Total debt | 1,979,549 | 1,621,395 | ||||||
Current portion of capital lease obligations, long-term debt and non-recourse debt | (16,648 | ) | (16,752 | ) | ||||
Capital Lease Obligations, long-term portion | (9,574 | ) | (9,856 | ) | ||||
Non-Recourse Debt, long-term portion | (158,060 | ) | (131,968 | ) | ||||
Long-Term Debt | $ | 1,795,267 | $ | 1,462,819 | ||||
Business_Segments_and_Geograph1
Business Segments and Geographic Information (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Operating and Reporting Segments | The Company's segment revenues from external customers and a measure of segment profit are as follows (in thousands): | |||||||
Three Months Ended | ||||||||
31-Mar-15 | 31-Mar-14 | |||||||
Revenues: | ||||||||
U.S. Corrections & Detention | $ | 285,609 | $ | 266,715 | ||||
GEO Care | 79,356 | 76,652 | ||||||
International Services | 40,654 | 49,770 | ||||||
Facility Construction & Design (1) | 21,750 | — | ||||||
Total revenues | $ | 427,369 | $ | 393,137 | ||||
Operating income: | ||||||||
U.S. Corrections & Detention | $ | 63,597 | $ | 58,810 | ||||
GEO Care | 18,506 | 15,701 | ||||||
International Services | 1,815 | 2,561 | ||||||
Facility Construction & Design (1) | 602 | — | ||||||
Operating income from segments | $ | 84,520 | $ | 77,072 | ||||
(1) In September 2014, the Company began the design and construction of a new prison contract located in Ravenhall, a locality near Melbourne, Australia. During the design and construction phase, the Company recognizes revenue as earned on a percentage of completion basis measured by the percentage of costs incurred to date as compared to estimated total costs for the design and construction of the facility. Costs incurred and estimated earnings in excess of billings is classified as Contract Receivable in the accompanying consolidated balance sheets and is recorded at the net present value based on the timing of expected future settlement. | ||||||||
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 | ||||||||
31-Mar-15 | 31-Mar-14 | |||||||
Total operating income from segments | $ | 84,520 | $ | 77,072 | ||||
Unallocated amounts: | ||||||||
General and Administrative Expenses | (31,848 | ) | (28,502 | ) | ||||
Net Interest Expense | (22,573 | ) | (19,920 | ) | ||||
Income before income taxes and equity in earnings of affiliates | $ | 30,099 | $ | 28,650 | ||||
Benefit_Plans_Tables
Benefit Plans (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||
Components of Company Plan Benefit Expense | The following table summarizes key information related to the Company’s pension plans and retirement agreements (in thousands): | |||||||
Three Months Ended March 31, 2015 | Year Ended December 2014 | |||||||
Change in Projected Benefit Obligation | ||||||||
Projected benefit obligation, beginning of period | $ | 25,826 | $ | 20,032 | ||||
Service cost | 257 | 821 | ||||||
Interest cost | 236 | 935 | ||||||
Actuarial loss | 72 | 4,324 | ||||||
Benefits paid | (189 | ) | (286 | ) | ||||
Projected benefit obligation, end of period | $ | 26,202 | $ | 25,826 | ||||
Change in Plan Assets | ||||||||
Plan assets at fair value, beginning of period | $ | — | $ | — | ||||
Company contributions | 189 | 286 | ||||||
Benefits paid | (189 | ) | (286 | ) | ||||
Plan assets at fair value, end of period | $ | — | $ | — | ||||
Unfunded Status of the Plan | $ | (26,202 | ) | $ | (25,826 | ) | ||
Components of Net Periodic Benefit Cost | ||||||||
Three Months Ended | ||||||||
31-Mar-15 | 31-Mar-14 | |||||||
Components of Net Periodic Benefit Cost | ||||||||
Service cost | $ | 257 | $ | 694 | ||||
Interest cost | 236 | 622 | ||||||
Net loss | 72 | 197 | ||||||
Net periodic pension cost | $ | 565 | $ | 1,513 | ||||
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Information (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF INCOME | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
For the Three Months Ended March 31, 2015 | ||||||||||||||||||||
The GEO Group, Inc. | Combined | Combined | Eliminations | Consolidated | ||||||||||||||||
Subsidiary | Non-Guarantor | |||||||||||||||||||
Guarantors | Subsidiaries | |||||||||||||||||||
Revenues | $ | 144,383 | $ | 339,887 | $ | 64,967 | $ | (121,868 | ) | $ | 427,369 | |||||||||
Operating expenses | 116,225 | 268,781 | 54,771 | (121,868 | ) | 317,909 | ||||||||||||||
Depreciation and amortization | 6,203 | 17,697 | 1,040 | — | 24,940 | |||||||||||||||
General and administrative expenses | 10,323 | 16,880 | 4,645 | — | 31,848 | |||||||||||||||
Operating income | 11,632 | 36,529 | 4,511 | — | 52,672 | |||||||||||||||
Interest income | 6,178 | 1,231 | 2,137 | (7,473 | ) | 2,073 | ||||||||||||||
Interest expense | (14,310 | ) | (14,636 | ) | (3,173 | ) | 7,473 | (24,646 | ) | |||||||||||
Income before income taxes and equity in earnings of affiliates | 3,500 | 23,124 | 3,475 | — | 30,099 | |||||||||||||||
Income tax provision | — | 1,740 | 1,088 | — | 2,828 | |||||||||||||||
Equity in earnings of affiliates, net of income tax provision | — | — | 1,485 | — | 1,485 | |||||||||||||||
Income before equity in income of consolidated subsidiaries | 3,500 | 21,384 | 3,872 | — | 28,756 | |||||||||||||||
Income from consolidated subsidiaries, net of income tax provision | 25,256 | — | — | (25,256 | ) | — | ||||||||||||||
Net income | 28,756 | 21,384 | 3,872 | (25,256 | ) | 28,756 | ||||||||||||||
Net loss attributable to noncontrolling interests | — | — | 21 | 21 | ||||||||||||||||
Net income attributable to The GEO Group, Inc. | $ | 28,756 | $ | 21,384 | $ | 3,893 | $ | (25,256 | ) | $ | 28,777 | |||||||||
Net income | $ | 28,756 | $ | 21,384 | $ | 3,872 | $ | (25,256 | ) | $ | 28,756 | |||||||||
Other comprehensive income (loss), net of tax | — | 40 | (5,761 | ) | — | (5,721 | ) | |||||||||||||
Total comprehensive income (loss) | $ | 28,756 | $ | 21,424 | $ | (1,889 | ) | $ | (25,256 | ) | $ | 23,035 | ||||||||
Comprehensive loss attributable to noncontrolling interests | — | — | 37 | — | 37 | |||||||||||||||
Comprehensive income (loss) attributable to The GEO Group, Inc. | $ | 28,756 | $ | 21,424 | $ | (1,852 | ) | $ | (25,256 | ) | $ | 23,072 | ||||||||
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
For the Three Months Ended March 31, 2014 | ||||||||||||||||||||
The GEO Group, Inc. | Combined | Combined | Eliminations | Consolidated | ||||||||||||||||
Subsidiary | Non-Guarantor | |||||||||||||||||||
Guarantors | Subsidiaries | |||||||||||||||||||
Revenues | $ | 134,754 | $ | 314,985 | $ | 52,331 | $ | (108,933 | ) | $ | 393,137 | |||||||||
Operating expenses | 107,222 | 250,680 | 42,954 | (108,933 | ) | 291,923 | ||||||||||||||
Depreciation and amortization | 6,406 | 16,634 | 1,102 | — | 24,142 | |||||||||||||||
General and administrative expenses | 9,339 | 15,536 | 3,627 | — | 28,502 | |||||||||||||||
Operating income | 11,787 | 32,135 | 4,648 | — | 48,570 | |||||||||||||||
Interest income | 5,536 | 436 | 679 | (5,919 | ) | 732 | ||||||||||||||
Interest expense | (11,074 | ) | (13,763 | ) | (1,734 | ) | 5,919 | (20,652 | ) | |||||||||||
Income before income taxes and equity in earnings of affiliates | 6,249 | 18,808 | 3,593 | — | 28,650 | |||||||||||||||
Income tax provision | — | 1,294 | 844 | — | 2,138 | |||||||||||||||
Equity in earnings of affiliates, net of income tax provision | — | — | 1,484 | — | 1,484 | |||||||||||||||
Income before equity in income of consolidated subsidiaries | 6,249 | 17,514 | 4,233 | — | 27,996 | |||||||||||||||
Income from consolidated subsidiaries, net of income tax provision | 21,747 | — | — | (21,747 | ) | — | ||||||||||||||
Net income | 27,996 | 17,514 | 4,233 | (21,747 | ) | 27,996 | ||||||||||||||
Net income attributable to noncontrolling interests | — | — | (6 | ) | — | (6 | ) | |||||||||||||
Net income attributable to The GEO Group, Inc. | $ | 27,996 | $ | 17,514 | $ | 4,227 | $ | (21,747 | ) | $ | 27,990 | |||||||||
Net income | $ | 27,996 | $ | 17,514 | $ | 4,233 | $ | (21,747 | ) | $ | 27,996 | |||||||||
Other comprehensive income, net of tax | — | 19 | 1,027 | — | 1,046 | |||||||||||||||
Total comprehensive income | $ | 27,996 | $ | 17,533 | $ | 5,260 | $ | (21,747 | ) | $ | 29,042 | |||||||||
Comprehensive loss attributable to noncontrolling interests | — | — | (2 | ) | — | (2 | ) | |||||||||||||
Comprehensive income attributable to The GEO Group, Inc. | $ | 27,996 | $ | 17,533 | $ | 5,258 | $ | (21,747 | ) | $ | 29,040 | |||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||
As of March 31, 2015 | ||||||||||||||||||||
The GEO Group, Inc. | Combined | Combined | Eliminations | Consolidated | ||||||||||||||||
Subsidiary | Non-Guarantor | |||||||||||||||||||
Guarantors | Subsidiaries | |||||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | 12,962 | $ | 12,433 | $ | 43,586 | $ | — | $ | 68,981 | ||||||||||
Restricted cash and investments | — | — | 8,489 | — | 8,489 | |||||||||||||||
Accounts receivable, less allowance for doubtful accounts | 97,109 | 150,561 | 13,610 | — | 261,280 | |||||||||||||||
Current deferred income tax assets | — | 21,657 | 4,227 | — | 25,884 | |||||||||||||||
Prepaid expenses and other current assets | 5,545 | 21,853 | 18,176 | (1,154 | ) | 44,420 | ||||||||||||||
Total current assets | 115,616 | 206,504 | 88,088 | (1,154 | ) | 409,054 | ||||||||||||||
Restricted Cash and Investments | 126 | 15,175 | 7,916 | — | 23,217 | |||||||||||||||
Property and Equipment, Net | 738,622 | 1,085,096 | 83,345 | — | 1,907,063 | |||||||||||||||
Contract Receivable | — | — | 87,042 | — | 87,042 | |||||||||||||||
Direct Finance Lease Receivable | — | — | 7,077 | — | 7,077 | |||||||||||||||
Intercompany Receivable | 963,417 | 138,933 | — | (1,102,350 | ) | — | ||||||||||||||
Non-Current Deferred Income Tax Assets | — | — | 5,873 | — | 5,873 | |||||||||||||||
Goodwill | 34 | 600,731 | 440 | — | 601,205 | |||||||||||||||
Intangible Assets, Net | — | 223,194 | 977 | — | 224,171 | |||||||||||||||
Investment in Subsidiaries | 1,146,712 | 238,847 | — | (1,385,559 | ) | — | ||||||||||||||
Other Non-Current Assets | 24,635 | 111,702 | 46,957 | (80,075 | ) | 103,219 | ||||||||||||||
Total Assets | $ | 2,989,162 | $ | 2,620,182 | $ | 327,715 | $ | (2,569,138 | ) | $ | 3,367,921 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
Accounts payable | $ | 8,471 | $ | 49,757 | $ | 2,307 | $ | — | $ | 60,535 | ||||||||||
Accrued payroll and related taxes | — | 42,159 | 13,692 | — | 55,851 | |||||||||||||||
Accrued expenses and other | 41,609 | 67,228 | 28,138 | (1,154 | ) | 135,821 | ||||||||||||||
Current portion of capital lease obligations, long-term debt and non-recourse debt | 3,001 | 1,241 | 12,406 | — | 16,648 | |||||||||||||||
Total current liabilities | 53,081 | 160,385 | 56,543 | (1,154 | ) | 268,855 | ||||||||||||||
Non-Current Deferred Income Tax Liabilities | (4,351 | ) | 14,414 | 5 | — | 10,068 | ||||||||||||||
Intercompany Payable | 114,710 | 971,134 | 16,506 | (1,102,350 | ) | — | ||||||||||||||
Other Non-Current Liabilities | 4,301 | 142,741 | 32,699 | (80,075 | ) | 99,666 | ||||||||||||||
Capital Lease Obligations | — | 9,574 | — | — | 9,574 | |||||||||||||||
Long-Term Debt | 1,795,267 | — | — | — | 1,795,267 | |||||||||||||||
Non-Recourse Debt | — | — | 158,060 | — | 158,060 | |||||||||||||||
Commitments & Contingencies and Other | ||||||||||||||||||||
Shareholders' Equity: | ||||||||||||||||||||
The GEO Group, Inc. Shareholders' Equity | 1,026,154 | 1,321,934 | 63,625 | (1,385,559 | ) | 1,026,154 | ||||||||||||||
Noncontrolling Interests | — | — | 277 | — | 277 | |||||||||||||||
Total Shareholders’ Equity | 1,026,154 | 1,321,934 | 63,902 | (1,385,559 | ) | 1,026,431 | ||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 2,989,162 | $ | 2,620,182 | $ | 327,715 | $ | (2,569,138 | ) | $ | 3,367,921 | |||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||
The GEO Group, Inc. | Combined | Combined | Eliminations | Consolidated | ||||||||||||||||
Subsidiary | Non-Guarantor | |||||||||||||||||||
Guarantors | Subsidiaries | |||||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | 18,492 | $ | 782 | $ | 22,063 | $ | — | $ | 41,337 | ||||||||||
Restricted cash and investments | — | — | 4,341 | — | 4,341 | |||||||||||||||
Accounts receivable, less allowance for doubtful accounts | 92,456 | 159,505 | 17,077 | — | 269,038 | |||||||||||||||
Current deferred income tax assets | — | 21,657 | 4,227 | — | 25,884 | |||||||||||||||
Prepaid expenses and other current assets | 7,022 | 19,593 | 11,345 | (1,154 | ) | 36,806 | ||||||||||||||
Total current assets | 117,970 | 201,537 | 59,053 | (1,154 | ) | 377,406 | ||||||||||||||
Restricted Cash and Investments | 228 | 13,729 | 5,621 | — | 19,578 | |||||||||||||||
Property and Equipment, Net | 726,238 | 961,896 | 84,032 | — | 1,772,166 | |||||||||||||||
Direct Finance Lease Receivable | — | — | 9,256 | — | 9,256 | |||||||||||||||
Contract Receivable | — | — | 66,229 | 66,229 | ||||||||||||||||
Intercompany Receivable | 962,314 | 119,414 | — | (1,081,728 | ) | — | ||||||||||||||
Non-Current Deferred Income Tax Assets | — | — | 5,873 | — | 5,873 | |||||||||||||||
Goodwill | 34 | 493,389 | 467 | — | 493,890 | |||||||||||||||
Intangible Assets, Net | — | 154,237 | 1,038 | — | 155,275 | |||||||||||||||
Investment in Subsidiaries | 855,870 | 438,243 | — | (1,294,113 | ) | — | ||||||||||||||
Other Non-Current Assets | 25,635 | 110,105 | 46,838 | (80,043 | ) | 102,535 | ||||||||||||||
Total Assets | $ | 2,688,289 | $ | 2,492,550 | $ | 278,407 | $ | (2,457,038 | ) | $ | 3,002,208 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
Accounts payable | $ | 7,549 | $ | 47,130 | $ | 3,476 | $ | — | $ | 58,155 | ||||||||||
Accrued payroll and related taxes | — | 24,184 | 14,372 | — | 38,556 | |||||||||||||||
Accrued expenses and other | 47,637 | 75,574 | 18,555 | (1,154 | ) | 140,612 | ||||||||||||||
Current portion of capital lease obligations, long-term debt and non-recourse debt | 3,001 | 1,170 | 12,581 | — | 16,752 | |||||||||||||||
Total current liabilities | 58,187 | 148,058 | 48,984 | (1,154 | ) | 254,075 | ||||||||||||||
Non-Current Deferred Income Tax Liabilities | (4,095 | ) | 14,170 | (7 | ) | — | 10,068 | |||||||||||||
Intercompany Payable | 121,327 | 942,071 | 18,330 | (1,081,728 | ) | — | ||||||||||||||
Other Non-Current Liabilities | 4,372 | 143,584 | 19,507 | (80,034 | ) | 87,429 | ||||||||||||||
Capital Lease Obligations | — | 9,856 | — | — | 9,856 | |||||||||||||||
Long-Term Debt | 1,462,819 | — | — | — | 1,462,819 | |||||||||||||||
Non-Recourse Debt | — | — | 131,968 | — | 131,968 | |||||||||||||||
Commitments & Contingencies and Other | ||||||||||||||||||||
Shareholders' Equity: | ||||||||||||||||||||
The GEO Group, Inc. Shareholders' Equity | 1,045,679 | 1,234,811 | 59,311 | (1,294,122 | ) | 1,045,679 | ||||||||||||||
Noncontrolling Interests | — | — | 314 | — | 314 | |||||||||||||||
Total Shareholders’ Equity | 1,045,679 | 1,234,811 | 59,625 | (1,294,122 | ) | 1,045,993 | ||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 2,688,289 | $ | 2,492,550 | $ | 278,407 | $ | (2,457,038 | ) | $ | 3,002,208 | |||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
For the Three Months Ended March 31, 2015 | ||||||||||||||||||||
The GEO Group, Inc. | Combined | Combined | Consolidated | |||||||||||||||||
Subsidiary | Non-Guarantor | |||||||||||||||||||
Guarantors | Subsidiaries | |||||||||||||||||||
Cash Flow from Operating Activities: | ||||||||||||||||||||
Net cash provided by operating activities | $ | 35,300 | $ | 30,416 | $ | (4,971 | ) | $ | 60,745 | |||||||||||
Cash Flow from Investing Activities: | ||||||||||||||||||||
Acquisition of LCS, net of cash acquired | (307,403 | ) | — | — | (307,403 | ) | ||||||||||||||
Proceeds from sale of property and equipment | — | 20 | — | 20 | ||||||||||||||||
Insurance proceeds - damaged property | — | 700 | — | 700 | ||||||||||||||||
Change in restricted cash and investments | 102 | (6,443 | ) | (1,767 | ) | (8,108 | ) | |||||||||||||
Capital expenditures | (20,561 | ) | (13,042 | ) | (595 | ) | (34,198 | ) | ||||||||||||
Net cash used in investing activities | (327,862 | ) | (18,765 | ) | (2,362 | ) | (348,989 | ) | ||||||||||||
Cash Flow from Financing Activities: | ||||||||||||||||||||
Proceeds from long-term debt | 371,000 | — | — | 371,000 | ||||||||||||||||
Payments on long-term debt | (38,750 | ) | — | — | (38,750 | ) | ||||||||||||||
Payments on non-recourse debt | — | — | (1,645 | ) | (1,645 | ) | ||||||||||||||
Proceeds from non-recourse debt | — | — | 33,019 | 33,019 | ||||||||||||||||
Taxes paid related to net share settlements of equity awards | (1,123 | ) | — | — | (1,123 | ) | ||||||||||||||
Proceeds from reissuance of treasury stock in connection with ESPP | 98 | — | — | 98 | ||||||||||||||||
Debt issuance costs | — | — | (1,245 | ) | (1,245 | ) | ||||||||||||||
Tax benefit related to equity compensation | 569 | — | — | 569 | ||||||||||||||||
Proceeds from stock options exercised | 1,215 | — | — | 1,215 | ||||||||||||||||
Cash dividends paid | (45,977 | ) | — | — | (45,977 | ) | ||||||||||||||
Net cash provided by financing activities | 287,032 | — | 30,129 | 317,161 | ||||||||||||||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | — | — | (1,273 | ) | (1,273 | ) | ||||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | (5,530 | ) | 11,651 | 21,523 | 27,644 | |||||||||||||||
Cash and Cash Equivalents, beginning of period | 18,492 | 782 | 22,063 | 41,337 | ||||||||||||||||
Cash and Cash Equivalents, end of period | $ | 12,962 | $ | 12,433 | $ | 43,586 | $ | 68,981 | ||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
For the Three Months Ended March 31, 2014 | ||||||||||||||||||||
The GEO Group, Inc. | Combined | Combined | Consolidated | |||||||||||||||||
Subsidiary | Non-Guarantor | |||||||||||||||||||
Guarantors | Subsidiaries | |||||||||||||||||||
Cash Flow from Operating Activities: | ||||||||||||||||||||
Net cash provided by operating activities | $ | 28,511 | $ | 25,116 | $ | 9,525 | $ | 63,152 | ||||||||||||
Cash Flow from Investing Activities: | ||||||||||||||||||||
Proceeds from sale of property and equipment | — | 165 | — | 165 | ||||||||||||||||
Acquisition of Protocol, cash consideration | — | (13,000 | ) | — | (13,000 | ) | ||||||||||||||
Change in restricted cash and investments | (185 | ) | (549 | ) | (2,539 | ) | (3,273 | ) | ||||||||||||
Capital expenditures | (8,586 | ) | (8,642 | ) | (303 | ) | (17,531 | ) | ||||||||||||
Net cash used in investing activities | (8,771 | ) | (22,026 | ) | (2,842 | ) | (33,639 | ) | ||||||||||||
Cash Flow from Financing Activities: | ||||||||||||||||||||
Proceeds from long-term debt | 103,000 | — | — | 103,000 | ||||||||||||||||
Payments on long-term debt | (108,750 | ) | (240 | ) | — | (108,990 | ) | |||||||||||||
Payments on non-recourse debt | — | — | (1,403 | ) | (1,403 | ) | ||||||||||||||
Proceeds from reissuance of treasury stock in connection with ESPP | 84 | — | — | 84 | ||||||||||||||||
Tax benefit related to equity compensation | 558 | — | — | 558 | ||||||||||||||||
Proceeds from stock options exercised | 3,275 | — | — | 3,275 | ||||||||||||||||
Cash dividends paid | (41,139 | ) | — | — | (41,139 | ) | ||||||||||||||
Net cash used in financing activities | (42,972 | ) | (240 | ) | (1,403 | ) | (44,615 | ) | ||||||||||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | — | — | 1,040 | 1,040 | ||||||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | (23,232 | ) | 2,850 | 6,320 | (14,062 | ) | ||||||||||||||
Cash and Cash Equivalents, beginning of period | 30,730 | 985 | 20,410 | 52,125 | ||||||||||||||||
Cash and Cash Equivalents, end of period | $ | 7,498 | $ | 3,835 | $ | 26,730 | $ | 38,063 | ||||||||||||
Basis_of_Presentation_Details_
Basis of Presentation (Details Textual) | Mar. 31, 2015 |
agency | |
state | |
person | |
bed | |
facility | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of beds | 86,000 |
Correctional, detention and residential treatment facilities including projects under development | 106 |
Provision of monitoring services tracking offenders (more than 70,000) | 70,000 |
Number of federal, state and local correctional agencies to which company provides monitoring services | 900 |
Number of states in which entity operates | 50 |
Business_Combinations_Details
Business Combinations (Details) (LCS Facilities, USD $) | 0 Months Ended | 3 Months Ended | ||
Feb. 17, 2015 | Mar. 31, 2015 | Feb. 18, 2015 | Feb. 17, 2015 | |
bed | party | |||
bed | ||||
facility | ||||
Business Acquisition [Line Items] | ||||
Number of correctional and detention facilities acquired | 8 | 8 | ||
Number of beds In facilities acquired (more than 6500) | 6,500 | 6,500 | 6,500 | |
Contingent consideration arrangements, performance period | 18 months | |||
Aggregate amount of purchase price, maximum | $350,000,000 | |||
Repayments of debt | 298,000,000 | |||
Consulting agreement, term | 3 years | |||
Number of principal parties with consulting agreements | 3 | 3 | ||
Consulting agreement, annual amount | 300,000 | 300,000 | ||
Customer Relationships | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets, useful life | 20 years | |||
General and Administrative Expense | ||||
Business Acquisition [Line Items] | ||||
Acquisition related costs | $2,100,000 |
Business_Combinations_Assets_A
Business Combinations - Assets Acquired and Liabilities Assumed (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Feb. 17, 2015 |
In Thousands, unless otherwise specified | |||
Business Acquisition [Line Items] | |||
Goodwill | $601,205 | $493,890 | |
LCS Facilities | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 9,395 | ||
Prepaid expenses and other current assets | 183 | ||
Property and equipment | 119,726 | ||
Intangible assets | 73,200 | ||
Total assets acquired | 202,504 | ||
Accounts payable and accrued expenses | 2,442 | ||
Total identifiable net assets | 200,062 | ||
Goodwill | 107,341 | ||
Total consideration paid | $307,403 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | ($72,779) | ($68,516) |
Net Carrying Amount | 178,971 | |
Gross carrying amount | 296,950 | 223,791 |
Total acquired intangible assets | 224,171 | 155,275 |
Facility management contracts | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (years) | 15 years 6 months | |
Gross Carrying Amount | 227,750 | 154,591 |
Accumulated Amortization | -59,802 | -56,396 |
Net Carrying Amount | 167,948 | 98,195 |
Technology | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (years) | 7 years | |
Gross Carrying Amount | 24,000 | 24,000 |
Accumulated Amortization | -12,977 | -12,120 |
Net Carrying Amount | 11,023 | 11,880 |
Trade names | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | 0 | 0 |
Trade name (Indefinite lived) | $45,200 | $45,200 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Details 1) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Estimated amortization expense for the remainder | |
Remainder of 2015 | $14,183 |
2016 | 18,882 |
2017 | 18,850 |
2018 | 15,991 |
2019 | 15,663 |
Thereafter | 95,402 |
Net Carrying Amount | $178,971 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets (Details Textual) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $4,300,000 | $3,600,000 | |
Intangible Assets, Net (Excluding Goodwill) | $224,171,000 | $155,275,000 | |
Facility management contracts | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average period | 1 year 8 months 35 days |
Financial_Instruments_Details
Financial Instruments (Details) (Recurring, USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Restricted investment: | ||
Rabbi Trust | $12,617 | $11,281 |
Fixed income securities | 1,870 | 1,966 |
Interest rate cap derivatives assets | 349 | 570 |
Quoted Prices in Active Markets (Level 1) | ||
Restricted investment: | ||
Rabbi Trust | 0 | 0 |
Fixed income securities | 0 | 0 |
Interest rate cap derivatives assets | 0 | |
Significant Other Observable Inputs (Level 2) | ||
Restricted investment: | ||
Rabbi Trust | 12,617 | 11,281 |
Fixed income securities | 1,870 | 1,966 |
Interest rate cap derivatives assets | 349 | 570 |
Significant Unobservable Inputs (Level 3) | ||
Restricted investment: | ||
Rabbi Trust | 0 | 0 |
Fixed income securities | 0 | 0 |
Interest rate cap derivatives assets | 0 | |
Interest rate swap derivatives | ||
Liabilities: | ||
Interest rate swap derivatives | 24,050 | 19,248 |
Interest rate swap derivatives | Quoted Prices in Active Markets (Level 1) | ||
Liabilities: | ||
Interest rate swap derivatives | 0 | 0 |
Interest rate swap derivatives | Significant Other Observable Inputs (Level 2) | ||
Liabilities: | ||
Interest rate swap derivatives | 24,050 | 19,248 |
Interest rate swap derivatives | Significant Unobservable Inputs (Level 3) | ||
Liabilities: | ||
Interest rate swap derivatives | $0 | $0 |
Fair_Value_of_Assets_and_Liabi2
Fair Value of Assets and Liabilities (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Assets: | ||||
Cash and cash equivalents | $68,981 | $41,337 | $38,063 | $52,125 |
5.125% Senior Notes, Due 2023 | ||||
Liabilities: | ||||
Debt Instrument, Fair Value Disclosure | 0 | |||
Carrying Value | ||||
Assets: | ||||
Cash and cash equivalents | 68,981 | 41,337 | ||
Restricted cash | 19,089 | 12,638 | ||
Liabilities: | ||||
Borrowings under senior credit facility | 697,750 | 365,500 | ||
Carrying Value | 5.875% Senior Notes, Due 2024 | ||||
Liabilities: | ||||
Senior Notes | 250,000 | 250,000 | ||
Carrying Value | 5.125% Senior Notes, Due 2023 | ||||
Liabilities: | ||||
Senior Notes | 300,000 | 300,000 | ||
Carrying Value | 5.875% Senior Notes, Due 2022 | ||||
Liabilities: | ||||
Senior Notes | 250,000 | 300,000 | ||
Carrying Value | 6.625% Senior Notes, Due 2021 | ||||
Liabilities: | ||||
Senior Notes | 300,000 | 250,000 | ||
Carrying Value | Other non recourse debt including current portion | ||||
Liabilities: | ||||
Non-recourse debt | 14,025 | 48,836 | ||
Estimate of Fair Value Measurement | ||||
Assets: | ||||
Cash and cash equivalents | 68,981 | 41,337 | ||
Restricted cash | 19,089 | 12,638 | ||
Liabilities: | ||||
Borrowings under senior credit facility | 698,855 | 364,411 | ||
Estimate of Fair Value Measurement | 5.875% Senior Notes, Due 2024 | ||||
Liabilities: | ||||
Debt Instrument, Fair Value Disclosure | 260,000 | 256,720 | ||
Estimate of Fair Value Measurement | 5.125% Senior Notes, Due 2023 | ||||
Liabilities: | ||||
Debt Instrument, Fair Value Disclosure | 315,375 | 315,750 | ||
Estimate of Fair Value Measurement | 5.875% Senior Notes, Due 2022 | ||||
Liabilities: | ||||
Debt Instrument, Fair Value Disclosure | 255,000 | 296,814 | ||
Estimate of Fair Value Measurement | 6.625% Senior Notes, Due 2021 | ||||
Liabilities: | ||||
Debt Instrument, Fair Value Disclosure | 318,000 | 256,720 | ||
Estimate of Fair Value Measurement | Other non recourse debt including current portion | ||||
Liabilities: | ||||
Non-recourse debt | 14,111 | 52,016 | ||
Level 1 | Estimate of Fair Value Measurement | ||||
Assets: | ||||
Cash and cash equivalents | 68,981 | 41,337 | ||
Restricted cash | 4,247 | 3,889 | ||
Liabilities: | ||||
Borrowings under senior credit facility | 0 | 0 | ||
Level 1 | Estimate of Fair Value Measurement | 5.875% Senior Notes, Due 2024 | ||||
Liabilities: | ||||
Debt Instrument, Fair Value Disclosure | 0 | 0 | ||
Level 1 | Estimate of Fair Value Measurement | 5.875% Senior Notes, Due 2022 | ||||
Liabilities: | ||||
Debt Instrument, Fair Value Disclosure | 0 | 0 | ||
Level 1 | Estimate of Fair Value Measurement | 6.625% Senior Notes, Due 2021 | ||||
Liabilities: | ||||
Debt Instrument, Fair Value Disclosure | 0 | 0 | ||
Level 1 | Estimate of Fair Value Measurement | Other non recourse debt including current portion | ||||
Liabilities: | ||||
Non-recourse debt | 0 | 0 | ||
Level 3 | Estimate of Fair Value Measurement | ||||
Assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Liabilities: | ||||
Borrowings under senior credit facility | 0 | 0 | ||
Level 3 | Estimate of Fair Value Measurement | 5.875% Senior Notes, Due 2024 | ||||
Liabilities: | ||||
Debt Instrument, Fair Value Disclosure | 0 | 0 | ||
Level 3 | Estimate of Fair Value Measurement | 5.875% Senior Notes, Due 2022 | ||||
Liabilities: | ||||
Debt Instrument, Fair Value Disclosure | 0 | 0 | ||
Level 3 | Estimate of Fair Value Measurement | 6.625% Senior Notes, Due 2021 | ||||
Liabilities: | ||||
Debt Instrument, Fair Value Disclosure | 0 | 0 | ||
Level 3 | Estimate of Fair Value Measurement | Other non recourse debt including current portion | ||||
Liabilities: | ||||
Non-recourse debt | 0 | 0 | ||
Level 2 | Estimate of Fair Value Measurement | ||||
Assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 14,842 | 8,749 | ||
Liabilities: | ||||
Borrowings under senior credit facility | 698,855 | 364,411 | ||
Level 2 | Estimate of Fair Value Measurement | 5.875% Senior Notes, Due 2024 | ||||
Liabilities: | ||||
Debt Instrument, Fair Value Disclosure | 260,000 | 256,720 | ||
Level 2 | Estimate of Fair Value Measurement | 5.125% Senior Notes, Due 2023 | ||||
Liabilities: | ||||
Debt Instrument, Fair Value Disclosure | 315,375 | 315,750 | ||
Level 2 | Estimate of Fair Value Measurement | 5.875% Senior Notes, Due 2022 | ||||
Liabilities: | ||||
Debt Instrument, Fair Value Disclosure | 255,000 | 296,814 | ||
Level 2 | Estimate of Fair Value Measurement | 6.625% Senior Notes, Due 2021 | ||||
Liabilities: | ||||
Debt Instrument, Fair Value Disclosure | 318,000 | 256,720 | ||
Level 2 | Estimate of Fair Value Measurement | Other non recourse debt including current portion | ||||
Liabilities: | ||||
Non-recourse debt | 14,111 | 52,016 | ||
AUSTRALIA | Subsidiary | Carrying Value | ||||
Liabilities: | ||||
Non-recourse debt | 156,442 | 95,714 | ||
AUSTRALIA | Subsidiary | Estimate of Fair Value Measurement | ||||
Liabilities: | ||||
Non-recourse debt | 159,484 | 95,871 | ||
AUSTRALIA | Level 1 | Subsidiary | Estimate of Fair Value Measurement | ||||
Liabilities: | ||||
Non-recourse debt | 0 | 0 | ||
AUSTRALIA | Level 3 | Subsidiary | Estimate of Fair Value Measurement | ||||
Liabilities: | ||||
Non-recourse debt | 0 | 0 | ||
AUSTRALIA | Level 2 | Subsidiary | Estimate of Fair Value Measurement | ||||
Liabilities: | ||||
Non-recourse debt | $159,484 | $95,871 |
Fair_Value_of_Assets_and_Liabi3
Fair Value of Assets and Liabilities (Details Textual) (Senior Notes) | Mar. 31, 2015 | Dec. 31, 2014 |
5.875% Senior Notes, Due 2024 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.88% | 5.88% |
5.875% Senior Notes, Due 2022 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.88% | 5.88% |
7.75% Senior Notes | ||
Debt Instrument [Line Items] | ||
Interest rate | 7.75% | |
6.625% Senior Notes, Due 2021 | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.63% | 6.63% |
5.125% Senior Notes, Due 2023 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.13% | 5.13% |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Changes in shareholders' equity that are attributable to the Company's shareholders and to non controlling interests | ||
Beginning Balance | $1,045,993 | |
Proceeds from exercise of stock options, value | 1,215 | |
Proceeds from exercise of stock options, shares | 53,000 | |
Tax benefit related to equity compensation | 569 | |
Stock-based compensation expense | 432 | |
Amortization of restricted stock | 2,189 | |
Restricted stock granted, value | 0 | |
Restricted stock canceled | 0 | |
Dividends paid | -45,977 | |
Shares withheld for net settlements of share-based awards | -1,123 | |
Issuance of common stock (ESPP), value | 98 | |
Net income | 28,756 | 27,996 |
Other comprehensive loss | -5,721 | 1,046 |
Ending Balance | 1,026,431 | |
Common shares | ||
Changes in shareholders' equity that are attributable to the Company's shareholders and to non controlling interests | ||
Beginning Balance | 742 | |
Beginning Balance, shares | 74,191,000 | |
Proceeds from exercise of stock options, value | 0 | |
Proceeds from exercise of stock options, shares | 54,000 | |
Restricted stock granted, value | 4 | |
Restricted stock granted, shares | 396,000 | |
Restricted stock canceled (shares) | -3,000 | |
Restricted stock canceled | 0 | |
Shares withheld for net settlement of share-based awards (shares) | -25,000 | |
Issuance of common stock (ESPP), shares | 2,000 | |
Ending Balance | 746 | |
Ending Balance, shares | 74,615,000 | |
Additional Paid-In Capital | ||
Changes in shareholders' equity that are attributable to the Company's shareholders and to non controlling interests | ||
Beginning Balance | 866,056 | |
Proceeds from exercise of stock options, value | 1,215 | |
Tax benefit related to equity compensation | 569 | |
Stock-based compensation expense | 432 | |
Amortization of restricted stock | 2,189 | |
Restricted stock granted, value | -4 | |
Shares withheld for net settlements of share-based awards | -1,123 | |
Issuance of common stock (ESPP), value | 98 | |
Ending Balance | 869,432 | |
Earnings in Excess of Distributions | ||
Changes in shareholders' equity that are attributable to the Company's shareholders and to non controlling interests | ||
Beginning Balance | 206,342 | |
Dividends paid | -45,977 | |
Net income | 28,777 | |
Other comprehensive loss | 0 | |
Ending Balance | 189,142 | |
Accumulated Other Comprehensive Loss | ||
Changes in shareholders' equity that are attributable to the Company's shareholders and to non controlling interests | ||
Beginning Balance | -27,461 | |
Other comprehensive loss | -5,705 | |
Ending Balance | -33,166 | |
Noncontrolling Interests | ||
Changes in shareholders' equity that are attributable to the Company's shareholders and to non controlling interests | ||
Beginning Balance | 314 | |
Net income | -21 | |
Other comprehensive loss | -16 | |
Ending Balance | $277 |
Dividends_declared_Details
Dividends declared (Details) (USD $) | 3 Months Ended | |||||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Feb. 06, 2015 | Nov. 05, 2014 | Aug. 05, 2014 | Apr. 28, 2014 | Feb. 18, 2014 |
Dividends declared/paid [Abstract] | ||||||
Minimum percentage of taxable income to be distributed as REIT | 90.00% | |||||
Distribution Per Share | $0.62 | $0.62 | $0.57 | $0.57 | $0.57 | |
Aggregate Payment Amount (in millions) | $46 | $46 | $41.40 | $41.50 | $41.10 |
Shareholders_Equity_Components
Shareholders' Equity Components of Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | |||
Share data in Millions, unless otherwise specified | Mar. 31, 2015 | Nov. 10, 2014 | 8-May-13 | |
Components of Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | ($27,461,000) | |||
Current-period other comprehensive (loss) income | -5,705,000 | |||
Ending Balance | -33,166,000 | |||
Maximum common stock value authorized under prospectus supplement | 150,000,000 | 100,000,000 | ||
Common Stock sold under prospectus supplement, in shares | 1.5 | |||
Issuance of common stock under prospectus supplement | 54,724,000 | |||
Foreign currency translation adjustments, net of tax attributable to The GEO Group, Inc. | ||||
Components of Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | -6,903,000 | [1] | ||
Current-period other comprehensive (loss) income | -1,665,000 | [1] | ||
Ending Balance | -8,568,000 | [1] | ||
Unrealized (loss)/gain on derivatives, net of tax | ||||
Components of Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | -16,322,000 | |||
Current-period other comprehensive (loss) income | -4,080,000 | |||
Ending Balance | -20,402,000 | |||
Pension adjustments, net of tax | ||||
Components of Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | -4,236,000 | |||
Current-period other comprehensive (loss) income | 40,000 | |||
Ending Balance | ($4,196,000) | |||
[1] | The foreign currency translation related to noncontrolling interests was not significant at March 31, 2015 or December 31, 2014. |
Equity_Incentive_Plans_Details
Equity Incentive Plans (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Summary of the activity of stock option awards | ||
Options outstanding, Beginning Balance, Shares | 664 | |
Options outstanding, Beginning Balance, Wtd. Avg. Exercise Price | $23.89 | |
Options outstanding, Beginning Balance, Wtd. Avg., Remaining Contractual Term | 7 years 6 months 4 days | 6 years 9 months 7 days |
Options outstanding, Beginning Balance, Aggregate Intrinsic Value | $10,935 | |
Options granted, Shares | 256 | |
Options granted, Wtd. Avg. Exercise Price | $43.15 | |
Options exercised, Shares | -53 | |
Options exercised, Wtd. Avg. Exercise Price | $23.98 | |
Options forfeited/canceled/expired, Shares | -5 | |
Options forfeited/canceled/expired, Wtd. Avg. Exercise Price | $40.32 | |
Options outstanding, Ending Balance, Shares | 862 | 664 |
Options outstanding, Ending Balance, Wtd. Avg. Exercise Price | $29.53 | $23.89 |
Options outstanding, Ending Balance, Wtd. Avg., Remaining Contractual Term | 7 years 6 months 4 days | 6 years 9 months 7 days |
Options outstanding, Ending Balance, Aggregate Intrinsic Value | 8,732 | 10,935 |
Options vested and expected to vest at March 31, 2015, Shares | 806 | |
Options vested and expected to vest at March 31, 2015, Wtd. Avg. Exercise Price | $28.92 | |
Options vested and expected to vest at March 31, 2015, Wtd. Avg., Remaining Contractual Term | 7 years 4 months 13 days | |
Options vested and expected to vest at March 31, 2015, Aggregate Intrinsic Value | 8,576 | |
Options exercisable at March 31, 2015, Shares | 490 | |
Options exercisable at March 31, 2015, Wtd. Avg. Exercise Price | $23.84 | |
Options exercisable at March 31, 2015, Wtd. Avg. Remaining Contractual Term | 6 years 2 months 12 days | |
Options exercisable at March 31, 2015, Aggregate Intrinsic Value | $7,297 |
Equity_Incentive_Plans_Details1
Equity Incentive Plans (Details 1) (Restricted Stock, USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Restricted Stock | |
Summary of the activity of restricted stock | |
Restricted stock outstanding shares, Beginning Balance | 724,000 |
Restricted stock outstanding Wtd. Avg. Grant Date Fair Value, Beginning Balance | $30.97 |
Granted shares | 396,000 |
Granted Wtd. Avg. Grant Date Fair Value | $45.88 |
Vested shares | -97,000 |
Vested Wtd. Avg. Grant Date Fair Value | $26.41 |
Forfeited/canceled shares | -3,000 |
Forfeited/canceled Wtd. Avg. Grant Date Fair Value | $42.64 |
Restricted stock outstanding shares, Ending Balance | 1,020,000 |
Restricted stock outstanding Wtd. Avg. Grant Date Fair Value, Ending Balance | $37.05 |
Equity_Incentive_Plans_Details2
Equity Incentive Plans (Details Textual) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility rate | 21.40% | |
Expected term | 5 years 0 months 0 days | |
Risk free interest rate | 1.00% | |
Expected dividend rate | 5.75% | |
Options granted, Shares | 256,000 | |
Options granted, grant date fair value | $4.26 | |
Number of annual performance metrics | 2 | |
Beta of Portfolio | 0.74 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based compensation expense | $2.20 | $2 |
Unrecognized compensation costs related to non vested stock option awards | 30.7 | |
Expected weighted average period to recognize expense | 1 year 7 months 6 days | |
Vesting period | 3 years | |
Granted shares | 396,000 | |
Restricted Stock | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Restricted Stock | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 4 years | |
Vesting rights, percentage weighted towards earnings per share performance | 75.00% | |
Award vesting rights, percentage weighted towards capital performance targets | 25.00% | |
Employee Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Discount on purchase of Common Stock for employee from the current market price | 5.00% | |
Maximum shares authorized under ESPP for sale offer to eligible employees | 500,000 | |
Shares issued | 2,338 | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based compensation expense | 0.4 | 0.5 |
Unrecognized compensation costs related to non vested stock option awards | $1.30 | |
Expected weighted average period to recognize expense | 1 year 8 months 12 days | |
Performance Based Share | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage of target | 0.00% | |
Performance Based Share | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage of target | 200.00% | |
2014 Stock Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for issuance | 3,083,353 | |
Common stock available for the issuance of awards | 2,000,000 | |
2006 Stock Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock available for the issuance of awards | 1,083,353 | |
Certain Employees and Executive Officers | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted shares | 396,000 | |
Certain Employees and Executive Officers | Performance Based Share | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted shares | 123,500 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share, Basic and Diluted [Abstract] | ||
Net income | $28,756 | $27,996 |
Net income (loss) attributable to noncontrolling interests | 21 | -6 |
Net income attributable to The GEO Group, Inc. | $28,777 | $27,990 |
Basic earnings per share attributable to The GEO Group, Inc.: | ||
Weighted average shares outstanding | 73,549,000 | 71,449,000 |
Per share amount | $0.39 | $0.39 |
Diluted earnings per share attributable to The GEO Group, Inc.: | ||
Weighted average shares outstanding | 73,549,000 | 71,449,000 |
Dilutive effect of equity incentive plans | 335,000 | 446,000 |
Weighted average shares assuming dilution | 73,884,000 | 71,895,000 |
Income from continuing operations (in dollars per share) | $0.39 | $0.39 |
Restricted Stock | ||
Basic and diluted earnings per share (Textual) [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share | 0 | 0 |
Stock Options | ||
Basic and diluted earnings per share (Textual) [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share | 83,790 | 17,070 |
Derivative_Financial_Instrumen1
Derivative Financial Instruments - Australia Fullham (Details Textual) (Fullham, Australia) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
USD ($) | USD ($) | Interest Rate Swap | Other Noncurrent Assets | Other Noncurrent Assets | |
AUD | USD ($) | USD ($) | |||
Interest Rate Swaps [Abstract] | |||||
Fixed interest rate on cash flow interest rate derivative | 9.70% | ||||
Notional amount coincide with the terms of the non-recourse debt | 50,900,000 | ||||
Fair value of the swap liability | 300,000 | 200,000 | |||
Ineffective portion of Cash Flow Hedge interest rate swap | $0 | $0 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Australia Ravenhall (Details) | 3 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Sep. 30, 2014 | |
USD ($) | USD ($) | Ravenhall, Australia | Ravenhall, Australia | Ravenhall, Australia | Ravenhall, Australia | Ravenhall, Australia | Ravenhall, Australia | Ravenhall, Australia | Ravenhall, Australia | Ravenhall, Australia | Construction Facility | Construction Facility | |
USD ($) | Interest Rate Swap | Interest Rate Cap | Other Noncurrent Liabilities | Other Noncurrent Assets | Design and construction phase | Design and construction phase | Operating phase | Cash Flow Hedge | Non-Recourse Debt | Non-Recourse Debt | |||
USD ($) | USD ($) | USD ($) | Interest Rate Cap | Interest Rate Swap | Interest Rate Swap | Interest Rate Swap | USD ($) | National Australia Bank Limited | National Australia Bank Limited | ||||
USD ($) | USD ($) | AUD | AUD | Ravenhall | Ravenhall | ||||||||
USD ($) | AUD | ||||||||||||
Derivative [Line Items] | |||||||||||||
Fixed interest rate on derivative | 3.34% | 3.34% | 4.21% | ||||||||||
Notional amount coincide with the terms of the non-recourse debt | $358,600,000 | $107,700,000 | 140,000,000 | 466,300,000 | |||||||||
Unrealized losses, net of tax, related to cash flow hedge | -4,080,000 | 27,000 | 4,100,000 | ||||||||||
Fair value of the swap liability | 23,800,000 | ||||||||||||
Ineffective portion of Cash Flow Hedge interest rate swap | 0 | ||||||||||||
Lump sum due at completion | 238,400,000 | 310,000,000 | |||||||||||
Payments on non-recourse debt | 1,645,000 | 1,403,000 | 1,700,000 | ||||||||||
Loss related to decline in derivative fair value | 200,000 | ||||||||||||
Interest rate swap asset value | $300,000 |
Debt_Outstanding_Details
Debt Outstanding (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Term loan | $294,750 | $295,500 |
Revolver | 403,000 | 70,000 |
Total Senior Credit Facility | 697,750 | 365,500 |
Capital Lease Obligations | 10,665 | 10,924 |
Other debt | 667 | 421 |
Total debt | 1,979,549 | 1,621,395 |
Current portion of capital lease obligations, long-term debt and non-recourse debt | -16,648 | -16,752 |
Capital Lease Obligations, long-term portion | -9,574 | -9,856 |
Non-Recourse Debt, long-term portion | -158,060 | -131,968 |
Long-Term Debt | 1,795,267 | 1,462,819 |
Non-Recourse Debt | ||
Debt Instrument [Line Items] | ||
Non-Recourse Debt | 171,138 | 145,262 |
Unamortized discount on non-recourse debt | -671 | -712 |
Total Non-Recourse Debt | 170,467 | 144,550 |
5.875% Senior Notes, Due 2024 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes | 250,000 | 250,000 |
Interest rate | 5.88% | 5.88% |
5.125% Senior Notes, Due 2023 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes | 300,000 | 300,000 |
Interest rate | 5.13% | 5.13% |
5.875% Senior Notes, Due 2022 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes | 250,000 | 250,000 |
Interest rate | 5.88% | 5.88% |
6.625% Senior Notes, Due 2021 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes | $300,000 | $300,000 |
Interest rate | 6.63% | 6.63% |
Debt_Senior_Credit_Facility_De
Debt Senior Credit Facility (Details) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Aug. 27, 2014 | Aug. 27, 2014 | Aug. 27, 2014 | Aug. 27, 2014 | Aug. 27, 2014 | Aug. 27, 2014 | Aug. 27, 2014 |
USD ($) | USD ($) | Revolver | Letter of Credit | Additional Revolver | Term Loan | Term Loan | Term Loan | Term Loan | Australian LC Facility | Revolver | Revolver | Credit Agreement | |
USD ($) | USD ($) | USD ($) | USD ($) | Credit Facility Term Loan | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | Letter of Credit | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | ||||
USD ($) | Minimum | AUD | USD ($) | ||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Face amount | $296,300,000 | ||||||||||||
Basis spread on variable rate | 2.50% | 0.75% | 2.25% | ||||||||||
Maximum borrowing capacity | 225,000,000 | 700,000,000 | |||||||||||
Amount outstanding on letters of credit | 214,000,000 | ||||||||||||
Total leverage ratio | 5.75 | ||||||||||||
Senior secured leverage ratio | 3.5 | ||||||||||||
Interest coverage ratio | 3 | ||||||||||||
Term loan | 294,750,000 | 295,500,000 | 294,750,000 | ||||||||||
Revolver | 403,000,000 | 70,000,000 | 403,000,000 | ||||||||||
Long-term debt | 59,000,000 | ||||||||||||
Borrowing capacity increase | $238,000,000 | ||||||||||||
Weighted average interest rate | 2.80% |
Debt_Senior_Notes_Details
Debt Senior Notes (Details) (Senior Notes) | Mar. 31, 2015 | Dec. 31, 2014 |
5.875% Senior Notes, Due 2024 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.88% | 5.88% |
5.125% Senior Notes, Due 2023 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.13% | 5.13% |
5.875% Senior Notes, Due 2022 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.88% | 5.88% |
6.625% Senior Notes, Due 2021 | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.63% | 6.63% |
Debt_NonRecourse_Debt_Details
Debt Non-Recourse Debt (Details) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Sep. 30, 2014 |
USD ($) | USD ($) | Australian Subsidiaries, Non-Recourse Debt | Non-Recourse Debt | Non-Recourse Debt | National Australia Bank Limited | Northwest Detention Center | Northwest Detention Center | Northwest Detention Center | Fullham | Fullham | Fullham | Fullham | Ravenhall | Ravenhall | Ravenhall | Ravenhall | |
USD ($) | USD ($) | Construction Facility | Non-Recourse Debt, Northwest Detention Center | Non-Recourse Debt, 2011 Revenue Bonds | Non-Recourse Debt | Australian Subsidiaries, Non-Recourse Debt | Australian Subsidiaries, Non-Recourse Debt | Australian Subsidiaries, Non-Recourse Debt | Australian Subsidiaries, Non-Recourse Debt | National Australia Bank Limited | National Australia Bank Limited | National Australia Bank Limited | National Australia Bank Limited | ||||
Non-Recourse Debt | USD ($) | USD ($) | USD ($) | USD ($) | AUD | USD ($) | AUD | Construction Facility | Construction Facility | Construction Facility | Construction Facility | ||||||
Non-Recourse Debt | Non-Recourse Debt | Non-Recourse Debt | Non-Recourse Debt | ||||||||||||||
USD ($) | AUD | USD ($) | AUD | ||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Face amount | $54,400,000 | ||||||||||||||||
Interest rate | 5.25% | ||||||||||||||||
Non-recourse debt | 170,467,000 | 144,550,000 | 49,400,000 | 14,000,000 | 18,200,000 | 16,400,000 | 20,100,000 | ||||||||||
Current portion of non recourse debt | 6,300,000 | ||||||||||||||||
Current portion of restricted cash and cash equivalents | 11,000,000 | ||||||||||||||||
Interest rate terms | variable rate quoted by certain Australian banks plus 140 basis points | variable rate quoted by certain Australian banks plus 140 basis points | |||||||||||||||
Basis spread on variable rate | 1.40% | 2.00% | |||||||||||||||
Noncurrent portion of restricted cash and cash equivalents | 3,800,000 | 5,000,000 | |||||||||||||||
Maximum borrowing capacity | 608,400,000 | 791,000,000 | 608,400,000 | 791,000,000 | |||||||||||||
Lump sum due at completion | 238,400,000 | 310,000,000 | |||||||||||||||
Revolver | $403,000,000 | $70,000,000 | $107,700,000 |
Debt_Guarantees_Details
Debt Guarantees (Details) | 3 Months Ended | 3 Months Ended | |||||||
Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | |
Geo Amey | Geo Amey | Ravenhall | Ravenhall | Ravenhall | SACS | SACS | Canada Facility | Canada Facility | |
USD ($) | GBP (£) | USD ($) | Letter of Credit | Letter of Credit | ZAR | USD ($) | USD ($) | CAD | |
guarantee | Revolver | Revolver | |||||||
USD ($) | AUD | ||||||||
Line of Credit Facility [Line Items] | |||||||||
Guaranteed obligations | $164,600,000 | 214,000,000 | 22,000,000 | $1,800,000 | |||||
Remaining guarantee under letter of credit | 21,000,000 | ||||||||
Maximum loan amount under standby facility | 20,000,000 | 1,656,000 | |||||||
Potential estimated exposure of tax obligations | 2,000,000 | 2,500,000 | |||||||
Liability related to potential tax exposure | 2,000,000 | ||||||||
Number of letters of guarantee outstanding under separate international facilities relating to performance guarantees | 9 | ||||||||
Letters of credit outstanding relating to performance guarantees | 11,700,000 | ||||||||
Ownership percentage in South African Custodial Services Pty. Limited | 50.00% | 50.00% | |||||||
Working capital line of credit issued to GEOAmey | 12,000,000 | ||||||||
Note receivable for GEOAmey | $15,600,000 | £ 10,500,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies and Other (Details Textual) | 3 Months Ended | ||||||||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Sep. 30, 2014 | Jan. 28, 2015 | Feb. 18, 2015 | Feb. 17, 2015 |
USD ($) | Property and Equipment | National Australia Bank Limited | National Australia Bank Limited | National Australia Bank Limited | National Australia Bank Limited | National Australia Bank Limited | National Australia Bank Limited | Facility management contracts | LCS Facilities | LCS Facilities | |
bed | USD ($) | Ravenhall | Ravenhall | Ravenhall | Ravenhall | Ravenhall | Ravenhall | Mesa Verde Detention Facility | bed | facility | |
facility | Non-Recourse Debt | Non-Recourse Debt | Non-Recourse Debt | Non-Recourse Debt | Non-Recourse Debt | Non-Recourse Debt | bed | bed | |||
USD ($) | AUD | Construction Facility | Construction Facility | Construction Facility | Construction Facility | ||||||
USD ($) | AUD | USD ($) | AUD | ||||||||
Commitments and Contingencies (Textual) [Abstract] | |||||||||||
Estimated construction capital project cost | $252.10 | ||||||||||
Cost already spent on existing capital projects | 86.1 | ||||||||||
Remaining capital required for capital projects | 166 | ||||||||||
Contributions in aid of construction | 88.4 | 115 | |||||||||
Maximum borrowing capacity | 608.4 | 791 | 608.4 | 791 | |||||||
Number of beds in a facility | 400 | ||||||||||
Number of correctional and detention facilities acquired | 8 | ||||||||||
Number of beds In facilities acquired | 6,500 | 6,500 | |||||||||
Number of vacant beds at idle facilities marketed to potential customers | 4,400 | ||||||||||
Number of marketed idle facilities | 5 | ||||||||||
Carrying values of idle facilities marketed to potential customers | $103.90 |
Business_Segments_and_Geograph2
Business Segments and Geographic Information (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Revenues: | ||||
Revenues | $427,369 | $393,137 | ||
Operating Income: | ||||
Total operating income from segments | 84,520 | 77,072 | ||
U.S. Corrections & Detention | ||||
Revenues: | ||||
Revenues | 285,609 | 266,715 | ||
Operating Income: | ||||
Total operating income from segments | 63,597 | 58,810 | ||
GEO Care | ||||
Revenues: | ||||
Revenues | 79,356 | 76,652 | ||
Operating Income: | ||||
Total operating income from segments | 18,506 | 15,701 | ||
International Services | ||||
Revenues: | ||||
Revenues | 40,654 | 49,770 | ||
Operating Income: | ||||
Total operating income from segments | 1,815 | 2,561 | ||
Facility Construction & Design (1) | ||||
Revenues: | ||||
Revenues | 21,750 | [1] | 0 | [1] |
Operating Income: | ||||
Total operating income from segments | $602 | [1] | $0 | [1] |
[1] | In September 2014, the Company began the design and construction of a new prison contract located in Ravenhall, a locality near Melbourne, Australia. During the design and construction phase, the Company recognizes revenue as earned on a percentage of completion basis measured by the percentage of costs incurred to date as compared to estimated total costs for the design and construction of the facility. Costs incurred and estimated earnings in excess of billings is classified as Contract Receivable in the accompanying consolidated balance sheets and is recorded at the net present value based on the timing of expected future settlement. |
Business_Segments_and_Geograph3
Business Segments and Geographic Information (Details 1) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Pre-Tax Income Reconciliation of Segments | ||
Total operating income from segments | $84,520 | $77,072 |
Unallocated Amount: | ||
General and Administrative Expenses | -31,848 | -28,502 |
Net Interest Expense | -22,573 | -19,920 |
Income before income taxes and equity in earnings of affiliates | $30,099 | $28,650 |
Business_Segments_and_Geograph4
Business Segments and Geographic Information (Details Textual) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||
Number of reportable business segment | 4 | ||
Equity in earnings (losses) of affiliates, net of income tax provision | $1,485,000 | $1,484,000 | |
SACS | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage in Entity | 50.00% | ||
Equity in earnings (losses) of affiliates, net of income tax provision | 1,100,000 | 1,200,000 | |
Investment in Joint Ventures | 8,800,000 | 8,000,000 | |
Geo Amey | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage in Entity | 50.00% | ||
Equity in earnings (losses) of affiliates, net of income tax provision | 400,000 | 300,000 | |
Investment in Joint Ventures | ($1,700,000) | ($2,200,000) |
Benefit_Plans_Details
Benefit Plans (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Change in Projected Benefit Obligation | |||
Projected benefit obligation, beginning of period | $25,826 | $20,032 | $20,032 |
Service cost | 257 | 694 | 821 |
Interest cost | 236 | 622 | 935 |
Actuarial loss | 72 | 4,324 | |
Benefits paid | -189 | -286 | |
Projected benefit obligation, end of period | 26,202 | 25,826 | 25,826 |
Change in Plan Assets | |||
Plan assets at fair value, beginning of period | 0 | 0 | 0 |
Company contributions | 189 | 286 | |
Benefits paid | -189 | -286 | |
Plan assets at fair value, end of period | 0 | 0 | 0 |
Unfunded Status of the Plan | ($26,202) | ($25,826) |
Benefit_Plans_Details_1
Benefit Plans (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Components of Net Periodic Benefit Cost | |||
Service cost | $257 | $694 | $821 |
Interest cost | 236 | 622 | 935 |
Net loss | 72 | 197 | |
Net periodic pension cost | $565 | $1,513 |
Benefit_Plans_Details_Textual
Benefit Plans (Details Textual) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Compensation and Retirement Disclosure [Abstract] | ||
Long-term portion of the pension liability | $25.90 | $24.90 |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Information (Details 1) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Consolidated Statements of Income and Comprehensive Income [Abstract] | ||
Revenues | $427,369 | $393,137 |
Operating expenses | 317,909 | 291,923 |
Depreciation and amortization | 24,940 | 24,142 |
General and administrative expenses | 31,848 | 28,502 |
Operating income | 52,672 | 48,570 |
Interest income | 2,073 | 732 |
Interest expense | -24,646 | -20,652 |
Income before income taxes and equity in earnings of affiliates | 30,099 | 28,650 |
Income tax provision | 2,828 | 2,138 |
Equity in earnings of affiliates, net of income tax provision | 1,485 | 1,484 |
Income before equity in income of consolidated subsidiaries | 28,756 | 27,996 |
Income from consolidated subsidiaries, net of income tax provision | 0 | 0 |
Net income | 28,756 | 27,996 |
Net loss (income) attributable to noncontrolling interests | 21 | -6 |
Net income attributable to The GEO Group, Inc. | 28,777 | 27,990 |
Other comprehensive income (loss) | -5,721 | 1,046 |
Total comprehensive income | 23,035 | 29,042 |
Comprehensive loss (income) attributable to noncontrolling interests | 37 | -2 |
Comprehensive income attributable to The GEO Group, Inc. | 23,072 | 29,040 |
The GEO Group, Inc. | ||
Consolidated Statements of Income and Comprehensive Income [Abstract] | ||
Revenues | 144,383 | 134,754 |
Operating expenses | 116,225 | 107,222 |
Depreciation and amortization | 6,203 | 6,406 |
General and administrative expenses | 10,323 | 9,339 |
Operating income | 11,632 | 11,787 |
Interest income | 6,178 | 5,536 |
Interest expense | -14,310 | -11,074 |
Income before income taxes and equity in earnings of affiliates | 3,500 | 6,249 |
Income tax provision | 0 | 0 |
Equity in earnings of affiliates, net of income tax provision | 0 | 0 |
Income before equity in income of consolidated subsidiaries | 3,500 | 6,249 |
Income from consolidated subsidiaries, net of income tax provision | 25,256 | 21,747 |
Net income | 28,756 | 27,996 |
Net loss (income) attributable to noncontrolling interests | 0 | 0 |
Net income attributable to The GEO Group, Inc. | 28,756 | 27,996 |
Other comprehensive income (loss) | 0 | 0 |
Total comprehensive income | 28,756 | 27,996 |
Comprehensive loss (income) attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to The GEO Group, Inc. | 28,756 | 27,996 |
Combined Subsidiary Guarantors | ||
Consolidated Statements of Income and Comprehensive Income [Abstract] | ||
Revenues | 339,887 | 314,985 |
Operating expenses | 268,781 | 250,680 |
Depreciation and amortization | 17,697 | 16,634 |
General and administrative expenses | 16,880 | 15,536 |
Operating income | 36,529 | 32,135 |
Interest income | 1,231 | 436 |
Interest expense | -14,636 | -13,763 |
Income before income taxes and equity in earnings of affiliates | 23,124 | 18,808 |
Income tax provision | 1,740 | 1,294 |
Equity in earnings of affiliates, net of income tax provision | 0 | 0 |
Income before equity in income of consolidated subsidiaries | 21,384 | 17,514 |
Income from consolidated subsidiaries, net of income tax provision | 0 | 0 |
Net income | 21,384 | 17,514 |
Net loss (income) attributable to noncontrolling interests | 0 | 0 |
Net income attributable to The GEO Group, Inc. | 21,384 | 17,514 |
Other comprehensive income (loss) | 40 | 19 |
Total comprehensive income | 21,424 | 17,533 |
Comprehensive loss (income) attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to The GEO Group, Inc. | 21,424 | 17,533 |
Combined Non-Guarantor Subsidiaries | ||
Consolidated Statements of Income and Comprehensive Income [Abstract] | ||
Revenues | 64,967 | 52,331 |
Operating expenses | 54,771 | 42,954 |
Depreciation and amortization | 1,040 | 1,102 |
General and administrative expenses | 4,645 | 3,627 |
Operating income | 4,511 | 4,648 |
Interest income | 2,137 | 679 |
Interest expense | -3,173 | -1,734 |
Income before income taxes and equity in earnings of affiliates | 3,475 | 3,593 |
Income tax provision | 1,088 | 844 |
Equity in earnings of affiliates, net of income tax provision | 1,485 | 1,484 |
Income before equity in income of consolidated subsidiaries | 3,872 | 4,233 |
Income from consolidated subsidiaries, net of income tax provision | 0 | 0 |
Net income | 3,872 | 4,233 |
Net loss (income) attributable to noncontrolling interests | 21 | -6 |
Net income attributable to The GEO Group, Inc. | 3,893 | 4,227 |
Other comprehensive income (loss) | -5,761 | 1,027 |
Total comprehensive income | -1,889 | 5,260 |
Comprehensive loss (income) attributable to noncontrolling interests | 37 | -2 |
Comprehensive income attributable to The GEO Group, Inc. | -1,852 | 5,258 |
Eliminations | ||
Consolidated Statements of Income and Comprehensive Income [Abstract] | ||
Revenues | -121,868 | -108,933 |
Operating expenses | -121,868 | -108,933 |
Depreciation and amortization | 0 | 0 |
General and administrative expenses | 0 | 0 |
Operating income | 0 | 0 |
Interest income | -7,473 | -5,919 |
Interest expense | 7,473 | 5,919 |
Income before income taxes and equity in earnings of affiliates | 0 | 0 |
Income tax provision | 0 | 0 |
Equity in earnings of affiliates, net of income tax provision | 0 | 0 |
Income before equity in income of consolidated subsidiaries | 0 | 0 |
Income from consolidated subsidiaries, net of income tax provision | -25,256 | -21,747 |
Net income | -25,256 | -21,747 |
Net loss (income) attributable to noncontrolling interests | 0 | |
Net income attributable to The GEO Group, Inc. | -25,256 | -21,747 |
Other comprehensive income (loss) | 0 | 0 |
Total comprehensive income | -25,256 | -21,747 |
Comprehensive loss (income) attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to The GEO Group, Inc. | ($25,256) | ($21,747) |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Information (Details 2) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Assets | ||||
Cash and cash equivalents | $68,981 | $41,337 | $38,063 | $52,125 |
Restricted cash and investments, current | 8,489 | 4,341 | ||
Accounts receivable, less allowance for doubtful accounts | 261,280 | 269,038 | ||
Current deferred income tax assets | 25,884 | 25,884 | ||
Prepaid expenses and other current assets | 44,420 | 36,806 | ||
Total current assets | 409,054 | 377,406 | ||
Restricted cash and investments, non-current | 23,217 | 19,578 | ||
Property and equipment, net | 1,907,063 | 1,772,166 | ||
Contract Receivable | 87,042 | 66,229 | ||
Direct Finance Lease Receivable | 7,077 | 9,256 | ||
Intercompany Receivable | 0 | 0 | ||
Non-Current Deferred Income Tax Assets | 5,873 | 5,873 | ||
Goodwill | 601,205 | 493,890 | ||
Intangible Assets, Net | 224,171 | 155,275 | ||
Investment in Subsidiaries | 0 | 0 | ||
Other Non-Current Assets | 103,219 | 102,535 | ||
Total Assets | 3,367,921 | 3,002,208 | ||
Current Liabilities | ||||
Accounts payable | 60,535 | 58,155 | ||
Accrued payroll and related taxes | 55,851 | 38,556 | ||
Accrued expenses and other current liabilities | 135,821 | 140,612 | ||
Current portion of capital lease obligations, long-term debt and non-recourse debt | 16,648 | 16,752 | ||
Total current liabilities | 268,855 | 254,075 | ||
Non-Current Deferred Income Tax Liabilities | 10,068 | 10,068 | ||
Intercompany Payable | 0 | 0 | ||
Other Non-Current Liabilities | 99,666 | 87,429 | ||
Capital Lease Obligations | 9,574 | 9,856 | ||
Long-Term Debt | 1,795,267 | 1,462,819 | ||
Non-recourse debt | 158,060 | 131,968 | ||
Commitments & Contingencies and Other | ||||
The GEO Group, Inc. Shareholders' Equity | 1,026,154 | 1,045,679 | ||
Noncontrolling interests | 277 | 314 | ||
Total shareholders’ equity | 1,026,431 | 1,045,993 | ||
Total Liabilities and Shareholders’ Equity | 3,367,921 | 3,002,208 | ||
The GEO Group, Inc. | ||||
Assets | ||||
Cash and cash equivalents | 12,962 | 18,492 | 7,498 | 30,730 |
Restricted cash and investments, current | 0 | 0 | ||
Accounts receivable, less allowance for doubtful accounts | 97,109 | 92,456 | ||
Current deferred income tax assets | 0 | 0 | ||
Prepaid expenses and other current assets | 5,545 | 7,022 | ||
Total current assets | 115,616 | 117,970 | ||
Restricted cash and investments, non-current | 126 | 228 | ||
Property and equipment, net | 738,622 | 726,238 | ||
Contract Receivable | 0 | 0 | ||
Direct Finance Lease Receivable | 0 | 0 | ||
Intercompany Receivable | 963,417 | 962,314 | ||
Non-Current Deferred Income Tax Assets | 0 | 0 | ||
Goodwill | 34 | 34 | ||
Intangible Assets, Net | 0 | 0 | ||
Investment in Subsidiaries | 1,146,712 | 855,870 | ||
Other Non-Current Assets | 24,635 | 25,635 | ||
Total Assets | 2,989,162 | 2,688,289 | ||
Current Liabilities | ||||
Accounts payable | 8,471 | 7,549 | ||
Accrued payroll and related taxes | 0 | 0 | ||
Accrued expenses and other current liabilities | 41,609 | 47,637 | ||
Current portion of capital lease obligations, long-term debt and non-recourse debt | 3,001 | 3,001 | ||
Total current liabilities | 53,081 | 58,187 | ||
Non-Current Deferred Income Tax Liabilities | -4,351 | -4,095 | ||
Intercompany Payable | 114,710 | 121,327 | ||
Other Non-Current Liabilities | 4,301 | 4,372 | ||
Capital Lease Obligations | 0 | 0 | ||
Long-Term Debt | 1,795,267 | 1,462,819 | ||
Non-recourse debt | 0 | 0 | ||
Commitments & Contingencies and Other | ||||
The GEO Group, Inc. Shareholders' Equity | 1,026,154 | 1,045,679 | ||
Noncontrolling interests | 0 | 0 | ||
Total shareholders’ equity | 1,026,154 | 1,045,679 | ||
Total Liabilities and Shareholders’ Equity | 2,989,162 | 2,688,289 | ||
Combined Subsidiary Guarantors | ||||
Assets | ||||
Cash and cash equivalents | 12,433 | 782 | 3,835 | 985 |
Restricted cash and investments, current | 0 | 0 | ||
Accounts receivable, less allowance for doubtful accounts | 150,561 | 159,505 | ||
Current deferred income tax assets | 21,657 | 21,657 | ||
Prepaid expenses and other current assets | 21,853 | 19,593 | ||
Total current assets | 206,504 | 201,537 | ||
Restricted cash and investments, non-current | 15,175 | 13,729 | ||
Property and equipment, net | 1,085,096 | 961,896 | ||
Contract Receivable | 0 | 0 | ||
Direct Finance Lease Receivable | 0 | 0 | ||
Intercompany Receivable | 138,933 | 119,414 | ||
Non-Current Deferred Income Tax Assets | 0 | 0 | ||
Goodwill | 600,731 | 493,389 | ||
Intangible Assets, Net | 223,194 | 154,237 | ||
Investment in Subsidiaries | 238,847 | 438,243 | ||
Other Non-Current Assets | 111,702 | 110,105 | ||
Total Assets | 2,620,182 | 2,492,550 | ||
Current Liabilities | ||||
Accounts payable | 49,757 | 47,130 | ||
Accrued payroll and related taxes | 42,159 | 24,184 | ||
Accrued expenses and other current liabilities | 67,228 | 75,574 | ||
Current portion of capital lease obligations, long-term debt and non-recourse debt | 1,241 | 1,170 | ||
Total current liabilities | 160,385 | 148,058 | ||
Non-Current Deferred Income Tax Liabilities | 14,414 | 14,170 | ||
Intercompany Payable | 971,134 | 942,071 | ||
Other Non-Current Liabilities | 142,741 | 143,584 | ||
Capital Lease Obligations | 9,574 | 9,856 | ||
Long-Term Debt | 0 | 0 | ||
Non-recourse debt | 0 | 0 | ||
Commitments & Contingencies and Other | ||||
The GEO Group, Inc. Shareholders' Equity | 1,321,934 | 1,234,811 | ||
Noncontrolling interests | 0 | 0 | ||
Total shareholders’ equity | 1,321,934 | 1,234,811 | ||
Total Liabilities and Shareholders’ Equity | 2,620,182 | 2,492,550 | ||
Combined Non-Guarantor Subsidiaries | ||||
Assets | ||||
Cash and cash equivalents | 43,586 | 22,063 | 26,730 | 20,410 |
Restricted cash and investments, current | 8,489 | 4,341 | ||
Accounts receivable, less allowance for doubtful accounts | 13,610 | 17,077 | ||
Current deferred income tax assets | 4,227 | 4,227 | ||
Prepaid expenses and other current assets | 18,176 | 11,345 | ||
Total current assets | 88,088 | 59,053 | ||
Restricted cash and investments, non-current | 7,916 | 5,621 | ||
Property and equipment, net | 83,345 | 84,032 | ||
Contract Receivable | 87,042 | 66,229 | ||
Direct Finance Lease Receivable | 7,077 | 9,256 | ||
Intercompany Receivable | 0 | 0 | ||
Non-Current Deferred Income Tax Assets | 5,873 | 5,873 | ||
Goodwill | 440 | 467 | ||
Intangible Assets, Net | 977 | 1,038 | ||
Investment in Subsidiaries | 0 | 0 | ||
Other Non-Current Assets | 46,957 | 46,838 | ||
Total Assets | 327,715 | 278,407 | ||
Current Liabilities | ||||
Accounts payable | 2,307 | 3,476 | ||
Accrued payroll and related taxes | 13,692 | 14,372 | ||
Accrued expenses and other current liabilities | 28,138 | 18,555 | ||
Current portion of capital lease obligations, long-term debt and non-recourse debt | 12,406 | 12,581 | ||
Total current liabilities | 56,543 | 48,984 | ||
Non-Current Deferred Income Tax Liabilities | 5 | -7 | ||
Intercompany Payable | 16,506 | 18,330 | ||
Other Non-Current Liabilities | 32,699 | 19,507 | ||
Capital Lease Obligations | 0 | 0 | ||
Long-Term Debt | 0 | 0 | ||
Non-recourse debt | 158,060 | 131,968 | ||
Commitments & Contingencies and Other | ||||
The GEO Group, Inc. Shareholders' Equity | 63,625 | 59,311 | ||
Noncontrolling interests | 277 | 314 | ||
Total shareholders’ equity | 63,902 | 59,625 | ||
Total Liabilities and Shareholders’ Equity | 327,715 | 278,407 | ||
Eliminations | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash and investments, current | 0 | 0 | ||
Accounts receivable, less allowance for doubtful accounts | 0 | 0 | ||
Current deferred income tax assets | 0 | 0 | ||
Prepaid expenses and other current assets | -1,154 | -1,154 | ||
Total current assets | -1,154 | -1,154 | ||
Restricted cash and investments, non-current | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Contract Receivable | 0 | |||
Direct Finance Lease Receivable | 0 | 0 | ||
Intercompany Receivable | -1,102,350 | -1,081,728 | ||
Non-Current Deferred Income Tax Assets | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible Assets, Net | 0 | 0 | ||
Investment in Subsidiaries | -1,385,559 | -1,294,113 | ||
Other Non-Current Assets | -80,075 | -80,043 | ||
Total Assets | -2,569,138 | -2,457,038 | ||
Current Liabilities | ||||
Accounts payable | 0 | 0 | ||
Accrued payroll and related taxes | 0 | 0 | ||
Accrued expenses and other current liabilities | -1,154 | -1,154 | ||
Current portion of capital lease obligations, long-term debt and non-recourse debt | 0 | 0 | ||
Total current liabilities | -1,154 | -1,154 | ||
Non-Current Deferred Income Tax Liabilities | 0 | 0 | ||
Intercompany Payable | -1,102,350 | -1,081,728 | ||
Other Non-Current Liabilities | -80,075 | -80,034 | ||
Capital Lease Obligations | 0 | 0 | ||
Long-Term Debt | 0 | 0 | ||
Non-recourse debt | 0 | 0 | ||
Commitments & Contingencies and Other | ||||
The GEO Group, Inc. Shareholders' Equity | -1,385,559 | -1,294,122 | ||
Noncontrolling interests | 0 | 0 | ||
Total shareholders’ equity | -1,385,559 | -1,294,122 | ||
Total Liabilities and Shareholders’ Equity | ($2,569,138) | ($2,457,038) |
Condensed_Consolidating_Financ4
Condensed Consolidating Financial Information (Details 3) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Cash Flow from Operating Activities: | |||
Net cash provided by operating activities | $60,745 | $63,152 | |
Cash Flow from Investing Activities: | |||
Acquisition of LCS, net of cash acquired | -307,403 | 0 | |
Proceeds from sale of property and equipment | 20 | 165 | |
Insurance proceeds - damaged property | 700 | 0 | |
Acquisition of Protocol, cash consideration | -13,000 | ||
Change in restricted cash and investments | -8,108 | -3,273 | |
Capital expenditures | -34,198 | -17,531 | |
Net cash used in investing activities | -348,989 | -33,639 | |
Cash Flow from Financing Activities: | |||
Proceeds from long-term debt | 371,000 | 103,000 | |
Payments on long-term debt | -38,750 | -108,990 | |
Payments on non-recourse debt | -1,645 | -1,403 | |
Proceeds from non-recourse debt | 33,019 | 0 | |
Taxes paid related to net share settlements of equity awards | -1,123 | 0 | |
Proceeds from issuance of common stock in connection with ESPP | 98 | 84 | |
Debt issuance costs | -1,245 | 0 | |
Income tax benefit related to equity compensation | 569 | 558 | |
Proceeds from the exercise of stock options | 1,215 | 3,275 | |
Cash dividends paid | -45,977 | -41,139 | |
Net cash provided by (used in) financing activities | 317,161 | -44,615 | |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | -1,273 | 1,040 | |
Net increase (decrease) in Cash and Cash Equivalents | 27,644 | -14,062 | |
Cash and Cash Equivalents, beginning of period | 41,337 | 52,125 | |
Cash and Cash Equivalents, end of period | 68,981 | 38,063 | |
The GEO Group, Inc. | |||
Cash Flow from Operating Activities: | |||
Net cash provided by operating activities | 35,300 | 28,511 | |
Cash Flow from Investing Activities: | |||
Acquisition of LCS, net of cash acquired | -307,403 | ||
Proceeds from sale of property and equipment | 0 | 0 | |
Insurance proceeds - damaged property | 0 | ||
Acquisition of Protocol, cash consideration | 0 | ||
Change in restricted cash and investments | 102 | -185 | |
Capital expenditures | -20,561 | -8,586 | |
Net cash used in investing activities | -327,862 | -8,771 | |
Cash Flow from Financing Activities: | |||
Proceeds from long-term debt | 371,000 | 103,000 | |
Payments on long-term debt | -38,750 | -108,750 | |
Payments on non-recourse debt | 0 | 0 | |
Proceeds from non-recourse debt | 0 | ||
Taxes paid related to net share settlements of equity awards | -1,123 | ||
Proceeds from issuance of common stock in connection with ESPP | 98 | 84 | |
Debt issuance costs | 0 | ||
Income tax benefit related to equity compensation | 569 | 558 | |
Proceeds from the exercise of stock options | 1,215 | 3,275 | |
Cash dividends paid | -45,977 | -41,139 | |
Net cash provided by (used in) financing activities | 287,032 | -42,972 | |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 0 | 0 | |
Net increase (decrease) in Cash and Cash Equivalents | -5,530 | -23,232 | |
Cash and Cash Equivalents, beginning of period | 18,492 | 30,730 | |
Cash and Cash Equivalents, end of period | 12,962 | 7,498 | |
Combined Subsidiary Guarantors | |||
Cash Flow from Operating Activities: | |||
Net cash provided by operating activities | 30,416 | 25,116 | |
Cash Flow from Investing Activities: | |||
Acquisition of LCS, net of cash acquired | 0 | ||
Proceeds from sale of property and equipment | 20 | 165 | |
Insurance proceeds - damaged property | 700 | ||
Acquisition of Protocol, cash consideration | -13,000 | ||
Change in restricted cash and investments | -6,443 | -549 | |
Capital expenditures | -13,042 | -8,642 | |
Net cash used in investing activities | -18,765 | -22,026 | |
Cash Flow from Financing Activities: | |||
Proceeds from long-term debt | 0 | 0 | |
Payments on long-term debt | 0 | -240 | |
Payments on non-recourse debt | 0 | 0 | |
Proceeds from non-recourse debt | 0 | ||
Taxes paid related to net share settlements of equity awards | 0 | ||
Proceeds from issuance of common stock in connection with ESPP | 0 | 0 | |
Debt issuance costs | 0 | ||
Income tax benefit related to equity compensation | 0 | 0 | |
Proceeds from the exercise of stock options | 0 | 0 | |
Cash dividends paid | 0 | 0 | |
Net cash provided by (used in) financing activities | 0 | -240 | |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 0 | 0 | |
Net increase (decrease) in Cash and Cash Equivalents | 11,651 | 2,850 | |
Cash and Cash Equivalents, beginning of period | 782 | 985 | |
Cash and Cash Equivalents, end of period | 12,433 | 3,835 | |
Combined Non-Guarantor Subsidiaries | |||
Cash Flow from Operating Activities: | |||
Net cash provided by operating activities | -4,971 | 9,525 | |
Cash Flow from Investing Activities: | |||
Acquisition of LCS, net of cash acquired | 0 | ||
Proceeds from sale of property and equipment | 0 | 0 | |
Insurance proceeds - damaged property | 0 | ||
Acquisition of Protocol, cash consideration | 0 | ||
Change in restricted cash and investments | -1,767 | -2,539 | |
Capital expenditures | -595 | -303 | |
Net cash used in investing activities | -2,362 | -2,842 | |
Cash Flow from Financing Activities: | |||
Proceeds from long-term debt | 0 | 0 | |
Payments on long-term debt | 0 | 0 | |
Payments on non-recourse debt | -1,645 | -1,403 | |
Proceeds from non-recourse debt | 33,019 | ||
Taxes paid related to net share settlements of equity awards | 0 | ||
Proceeds from issuance of common stock in connection with ESPP | 0 | 0 | |
Debt issuance costs | -1,245 | ||
Income tax benefit related to equity compensation | 0 | 0 | |
Proceeds from the exercise of stock options | 0 | 0 | |
Cash dividends paid | 0 | 0 | |
Net cash provided by (used in) financing activities | 30,129 | -1,403 | |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | -1,273 | 1,040 | |
Net increase (decrease) in Cash and Cash Equivalents | 21,523 | 6,320 | |
Cash and Cash Equivalents, beginning of period | 22,063 | 20,410 | |
Cash and Cash Equivalents, end of period | 43,586 | 26,730 | |
Consolidation, Eliminations [Member] | |||
Cash Flow from Financing Activities: | |||
Cash and Cash Equivalents, beginning of period | 0 | ||
Cash and Cash Equivalents, end of period | $0 | $0 |
Condensed_Consolidating_Financ5
Condensed Consolidating Financial Information (Details Textual) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 19, 2013 |
Debt Instrument [Line Items] | |||
Percentage of subsidiary owned | 100.00% | ||
Senior Notes | 6.625% Senior Notes, Due 2021 | |||
Debt Instrument [Line Items] | |||
Notes bear interest at a rate | 6.63% | 6.63% | |
Senior Notes | Senior Notes Due 2023 | |||
Debt Instrument [Line Items] | |||
Notes bear interest at a rate | 5.13% | ||
Senior Notes | Senior Notes Due 2022 [Member] [Member] | |||
Debt Instrument [Line Items] | |||
Notes bear interest at a rate | 5.88% |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Apr. 29, 2015 | Apr. 28, 2015 | |
bed | bed | |||
Subsequent Event [Line Items] | ||||
Cash dividend per share of common stock declared | $0.62 | $0.57 | ||
Number of vacant beds at idle facilities marketed to potential customers | 4,400 | |||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Cash dividend per share of common stock declared | $0.62 | |||
Number of vacant beds at idle facilities marketed to potential customers | 1,740 |