Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 05, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | GEO GROUP INC | |
Entity Central Index Key | 923,796 | |
Document Type | 10-Q | |
Trading Symbol | GEO | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 74,665,884 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Revenues | $ 445,945 | $ 412,843 | $ 873,314 | $ 805,980 |
Operating expenses | 333,930 | 300,058 | 651,839 | 591,981 |
Depreciation and amortization | 26,560 | 23,748 | 51,501 | 47,890 |
General and administrative expenses | 32,174 | 28,148 | 64,022 | 56,650 |
Operating income | 53,281 | 60,889 | 105,952 | 109,459 |
Interest income | 2,868 | 824 | 4,941 | 1,556 |
Interest expense | (26,651) | (20,602) | (51,297) | (41,254) |
Income before income taxes and equity in earnings of affiliates | 29,498 | 41,111 | 59,596 | 69,761 |
Provision for income taxes | 2,369 | 3,387 | 5,196 | 5,525 |
Equity in earnings of affiliates, net of income tax provision of $516, $654, $1,128 and $1,203, respectively | 1,124 | 1,174 | 2,610 | 2,658 |
Net income | 28,253 | 38,898 | 57,010 | 66,894 |
Net loss (income) attributable to noncontrolling interests | 38 | 0 | 58 | (6) |
Net income attributable to The GEO Group, Inc. | $ 28,291 | $ 38,898 | $ 57,068 | $ 66,888 |
Weighted-average common shares outstanding: | ||||
Basic (in shares) | 73,665 | 71,749 | 73,607 | 71,599 |
Diluted (in shares) | 73,903 | 71,994 | 73,894 | 71,875 |
Basic: | ||||
Income per common share attributable to The GEO Group, Inc. - basic (in dollars per share) | $ 0.38 | $ 0.54 | $ 0.78 | $ 0.93 |
Diluted: | ||||
Income per common share attributable to The GEO Group, Inc. - diluted (in dollars per share) | 0.38 | 0.54 | 0.77 | 0.93 |
Dividends declared per share | $ 0.62 | $ 0.57 | $ 1.24 | $ 1.14 |
Consolidated Statements of Ope3
Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Income tax provision on equity in earnings of affiliates | $ 516 | $ 654 | $ 1,128 | $ 1,203 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Net income | $ 28,253 | $ 38,898 | $ 57,010 | $ 66,894 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (287) | 628 | (1,968) | 1,624 |
Pension liability adjustment, net of tax (provision) benefit of $21, $12, $42 and $25, respectively | 40 | 20 | 77 | 39 |
Unrealized gain (loss) on derivative instrument classified as cash flow hedge, net of tax (provision) benefit of $(869), $3, $(150) and $(9), respectively | 5,097 | (7) | 1,017 | 20 |
Total other comprehensive income (loss), net of tax | 4,850 | 641 | (874) | 1,683 |
Total comprehensive income | 33,103 | 39,539 | 56,136 | 68,577 |
Comprehensive loss attributable to noncontrolling interests | 43 | 5 | 81 | 2 |
Comprehensive income attributable to The GEO Group, Inc. | $ 33,146 | $ 39,544 | $ 56,217 | $ 68,579 |
Consolidated Statements of Com5
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Tax provision on defined benefit pension plans | $ 21 | $ (12) | $ 37 | $ 76 |
Tax provision on loss on derivative instrument classified as a cash flow hedge | $ 718 | $ (12) | $ 2,926 | $ (134) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash and cash equivalents | $ 47,044 | $ 41,337 |
Restricted cash and investments | 7,946 | 4,341 |
Accounts receivable, less allowance for doubtful accounts of $3,155 and $3,315, respectively | 270,131 | 269,038 |
Current deferred income tax assets | 25,921 | 25,884 |
Prepaid expenses and other current assets | 32,672 | 36,806 |
Total current assets | 383,714 | 377,406 |
Restricted Cash and Investments | 21,047 | 19,578 |
Property and Equipment, Net | 1,919,266 | 1,772,166 |
Contract Receivable | 110,176 | 66,229 |
Direct Finance Lease Receivable | 5,339 | 9,256 |
Non-Current Deferred Income Tax Assets | 5,873 | 5,873 |
Goodwill | 616,180 | 493,890 |
Intangible Assets, Net | 234,525 | 155,275 |
Other Non-Current Assets | 105,331 | 102,535 |
Total Assets | 3,401,451 | 3,002,208 |
Current Liabilities | ||
Accounts payable | 59,567 | 58,155 |
Accrued payroll and related taxes | 45,113 | 38,556 |
Accrued expenses and other current liabilities | 134,783 | 140,612 |
Current portion of capital lease obligations, long-term debt and non-recourse debt | 16,822 | 16,752 |
Total current liabilities | 256,285 | 254,075 |
Non-Current Deferred Income Tax Liabilities | 15,769 | 10,068 |
Other Non-Current Liabilities | 85,919 | 87,429 |
Capital Lease Obligations | 9,286 | 9,856 |
Long-Term Debt | 1,844,763 | 1,462,819 |
Non-Recourse Debt | $ 172,852 | $ 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, 74,656,384 and 74,190,688 issued and outstanding, respectively | 747 | 742 |
Additional paid-in capital | 872,753 | 866,056 |
Earnings in excess of distributions | 171,156 | 206,342 |
Accumulated other comprehensive loss | (28,312) | (27,461) |
Total shareholders’ equity attributable to The GEO Group, Inc. | 1,016,344 | 1,045,679 |
Noncontrolling interests | 233 | 314 |
Total shareholders’ equity | 1,016,577 | 1,045,993 |
Total Liabilities and Shareholders’ Equity | $ 3,401,451 | $ 3,002,208 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 3,155 | $ 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 | 74,656,384 | 74,190,688 |
Treasury stock, shares | 0 | 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash Flow from Operating Activities: | ||
Net income | $ 57,010 | $ 66,894 |
Net loss (income) attributable to noncontrolling interests | 58 | (6) |
Net income attributable to The GEO Group, Inc. | 57,068 | 66,888 |
Adjustments to reconcile net income attributable to The GEO Group, Inc. to net cash provided by operating activities: | ||
Depreciation and amortization expense | 51,501 | 47,890 |
Stock-based compensation | 5,578 | 4,533 |
Amortization of debt issuance costs, discount and/or premium and other non-cash interest | 3,216 | 2,399 |
Dividends received from unconsolidated joint venture | 0 | 479 |
Provision for doubtful accounts | 323 | 666 |
Equity in earnings of affiliates, net of tax | (2,610) | (2,658) |
Income tax benefit related to equity compensation | (651) | (1,351) |
(Gain) loss on sale/disposal of property and equipment | (745) | 423 |
Changes in assets and liabilities, net of effects of acquisitions: | ||
Changes in accounts receivable, prepaid expenses and other assets | 13,955 | (21) |
Changes in contract receivable | (46,600) | 0 |
Changes in accounts payable, accrued expenses and other liabilities | (1,237) | 12,896 |
Net cash provided by operating activities | 79,798 | 132,144 |
Cash Flow from Investing Activities: | ||
Acquisition of SoberLink, cash consideration | (24,402) | 0 |
Acquisition of LCS, net of cash acquired | (307,403) | 0 |
Acquisition of Protocol, cash consideration | 0 | (13,000) |
Insurance proceeds - damaged property | 901 | 0 |
Proceeds from sale of property and equipment | 123 | 514 |
Change in restricted cash and investments | (5,417) | (8,936) |
Capital expenditures | (71,694) | (41,122) |
Net cash used in investing activities | (407,892) | (62,544) |
Cash Flow from Financing Activities: | ||
Proceeds from long-term debt | 518,000 | 9,000 |
Payments on long-term debt | (134,744) | (17,179) |
Payments on non-recourse debt | (4,513) | 0 |
Proceeds from non-recourse debt | 49,731 | 0 |
Taxes paid related to net share settlements of equity awards | (1,784) | (1,416) |
Proceeds from issuance of common stock in connection with ESPP | 218 | 185 |
Debt issuance costs | (2,438) | 0 |
Income tax benefit related to equity compensation | 651 | 1,351 |
Proceeds from the exercise of stock options | 2,037 | 5,531 |
Cash dividends paid | (92,254) | (82,656) |
Net cash provided by (used in) financing activities | 334,904 | (85,184) |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (1,103) | 819 |
Net increase (decrease) in Cash and Cash Equivalents | 5,707 | (14,765) |
Cash and Cash Equivalents, beginning of period | 41,337 | 52,125 |
Cash and Cash Equivalents, end of period | 47,044 | 37,360 |
Non-cash Investing and Financing activities: | ||
Capital expenditures in accounts payable and accrued expenses | $ 2,536 | $ 8,562 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 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 85,500 beds at 106 correctional and detention facilities, including idle facilities, projects under development and recently awarded contracts, and also include the provision of community supervision services for more than 115,000 offenders and pre-trial defendants, including approximately 75,000 individuals through an array of technology products including radio frequency, GPS, and alcohol monitoring devices. 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 six months ended June 30, 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 | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Business Combinations | BUSINESS COMBINATIONS Soberlink, Inc. On May 18, 2015, the Company's wholly-owned subsidiary, B.I. Incorporated ("BI") acquired 100% of the outstanding common stock of Soberlink, Inc. ("Soberlink") for cash consideration of $24.4 million . Soberlink is a leading developer and distributor of mobile alcohol monitoring devices and services. The Company financed the acquisition of Soberlink with borrowings under its revolving credit facility. The allocation of the purchase price for this transaction has not yet 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. Transaction costs incurred in connection with the acquisition were not significant and have been recorded in general and administrative expenses. As shown below, the Company recorded $14.9 million of goodwill which is not deductible for tax purposes. The Company believes the acquisition of Soberlink provides strategic benefits and synergies with BI's existing electronic monitoring services. These factors contributed to the goodwill that was recorded upon consummation of the transaction. The goodwill and net assets are included in the GEO Care business segment. Revenues and earnings from Soberlink from the date of acquisition through June 30, 2015 were not significant. Intangible assets consist of technology with an estimated useful life of 8 years and a customer relationship with an estimated useful life of 20 years . The purchase price of approximately $24.4 million has been preliminarily allocated to the estimated fair values of the assets acquired and liabilities assumed as of May 18, 2015 as follows (in '000's): Accounts receivable and other current assets $ 127 Inventory 385 Intangible assets 15,200 Total assets acquired 15,712 Accounts payable 18 Deferred tax and other tax liabilities 6,176 Total identifiable net assets 9,518 Goodwill 14,884 Total consideration paid $ 24,402 Additionally, the Company has provided a loan in the amount of $2.2 million to an entity (Soberlink Healthcare, LLC) owned by the former shareholders of Soberlink. The loan matures on May 19, 2019 and bears interest at 10.00% . Proceeds from the loan were used by the seller to fund certain research and development activities of another entity owned by the former shareholders (DevCo, LLC). The Company has also entered into a license and development agreement with DevCo, LLC whereby the Company will pay an annual fee of $1.3 million in exchange for a lifetime, royalty free right to use any improvements to the existing technology resident in the product that Soberlink sells. The Company has determined that it has an implicit variable interest in DevCo, LLC and that DevCo, LLC is a variable interest entity. However, the Company has determined that it is not the primary beneficiary of DevCo, LLC since it does not have the power to direct the activities of DevCo, LLC that most significantly impact DevCo, LLC's economic performance. Nor does the Company have the obligation to absorb the losses of DevCo, LLC. Therefore, the Company does not consolidate this entity. The Company also has determined that Soberlink Healthcare, LLC. is a variable interest entity but the Company is not the primary beneficiary as it does not have the power to direct the activities of Soberlink Healthcare, LLC that most significantly impact its performance. Nor does the Company have the obligation to absorb the losses of Soberlink Healthcare, LLC. Therefore the Company also does not consolidate this entity. LCS Corrections Services, Inc. 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 six months ended June 30, 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 possibility 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 allocation of the purchase price for this transaction has not yet been finalized. The primary areas of the preliminary purchase price allocations that are not yet finalized primarily relate to the fair value of certain property tax liabilities that were assumed. 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 June 30, 2015 were not significant in relation to the Company's total consolidated revenues and earnings. Identifiable intangible assets purchased consist of facility management contracts and have an estimated useful life of 20 years . |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 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 the Company's goodwill balances from December 31, 2014 to June 30, 2015 are as follows (in thousands): December 31, 2014 Acquisitions Foreign Currency Translation June 30, 2015 U.S. Corrections & Detention $ 170,376 $ 107,341 $ — $ 277,717 GEO Care 323,047 14,884 — 337,931 International Services 467 — 65 532 Total Goodwill $ 493,890 122,225 $ 65 $ 616,180 The Company has also recorded other finite and indefinite-lived intangible assets as a result of its various business combinations. Acquisitions completed in the first and second quarter of 2015 as discussed above in Note 2 - Business Combinations also led to additions to intangible assets. The Company's intangible assets include customer relationships, facility management contracts, trade names and technology, as follows (in thousands): June 30, 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 and customer relationships 15.6 $ 233,278 $ (63,718 ) $ 169,560 $ 154,591 $ (56,396 ) $ 98,195 Technology 7.3 33,700 (13,935 ) 19,765 24,000 (12,120 ) 11,880 Trade name (Indefinite lived) Indefinite 45,200 — 45,200 45,200 — 45,200 Total acquired intangible assets $ 312,178 $ (77,653 ) $ 234,525 $ 223,791 $ (68,516 ) $ 155,275 Amortization expense was $4.8 million and $9.1 million for the three and six months ended June 30, 2015 , respectively. Amortization expense was $3.9 million and $7.5 million for the three and six months ended June 30, 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 June 30, 2015 , the weighted average period before the next contract renewal or extension for the acquired facility management contracts was approximately 1.9 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 $ 10,226 2016 20,369 2017 20,337 2018 17,478 2019 17,150 Thereafter 103,765 $ 189,325 |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 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 June 30, 2015 and December 31, 2014 (in thousands): Fair Value Measurements at June 30, 2015 Carrying Value at June 30, 2015 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Restricted investment: Rabbi Trust $ 13,219 $ — $ 13,219 $ — Fixed income securities 1,889 — 1,889 — Interest rate cap derivatives 396 — $ 396 — Liabilities: Interest rate swap derivatives $ 18,041 $ — $ 18,041 $ — Fair Value Measurements at December 31, 2014 Carrying Value at December 31, 2014 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable 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 derivatives $ 19,248 $ — $ 19,248 $ — The Company’s Level 2 financial instruments included in the tables above as of June 30, 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 Liabil
Fair Value of Assets and Liabilities | 6 Months Ended |
Jun. 30, 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 June 30, 2015 and December 31, 2014 (in thousands): Estimated Fair Value Measurements at June 30, 2015 Carrying Value as of June 30, 2015 Total Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 47,044 $ 47,044 $ 47,044 $ — $ — Restricted cash 15,774 15,774 5,255 10,519 — Liabilities: Borrowings under senior credit facility $ 747,000 $ 748,470 $ — $ 748,470 $ — 5.875% Senior Notes 250,000 262,813 — 262,813 — 5.125% Senior Notes 300,000 299,250 — 299,250 — 5.875% Senior Notes 250,000 257,813 — 257,813 — 6.625% Senior Notes 300,000 311,250 — 311,250 — Non-recourse debt, Australian subsidiary 136,580 136,614 — 136,614 — Other non-recourse debt, including current portion 48,772 51,338 — 51,338 — 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 — 5.875% 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 June 30, 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 5.875% senior unsecured notes due 2022 ("5.875% 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 | 6 Months Ended |
Jun. 30, 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 Paid-In Earnings in Excess of Accumulated Other Comprehensive Noncontrolling Total Shareholders' 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 92 1 2,037 — — — 2,038 Tax benefit related to equity compensation — — 651 — — — 651 Stock-based compensation expense — — 534 — — — 534 Amortization of restricted stock — — 5,044 — — — 5,044 Restricted stock granted 423 4 (4 ) — — — — Restricted stock canceled (15 ) — — — — — — Dividends paid — — — (92,254 ) — — (92,254 ) Shares withheld for net settlements of share-based awards (41 ) — (1,783 ) — — — (1,783 ) Issuance of common stock - ESPP 6 — 218 — — — 218 Net income (loss) — — — 57,068 — (58 ) 57,010 Other comprehensive loss — — — — (851 ) (23 ) (874 ) Balance, June 30, 2015 74,656 $ 747 $ 872,753 $ 171,156 $ (28,312 ) $ 233 $ 1,016,577 During the six months ended June 30, 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 six months ended June 30, 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 March 3, 2014 March 14, 2014 $0.57 $41.1 April 28, 2014 May 15, 2014 May 27, 2014 $0.57 $41.5 August 5, 2014 August 18, 2014 August 29, 2014 $0.57 $41.4 November 5, 2014 November 17, 2014 November 26, 2014 $0.62 $46.0 February 6, 2015 February 17, 2015 February 27, 2015 $0.62 $46.0 April 29, 2015 May 11, 2015 May 21, 2015 $0.62 $46.3 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, were to be made in negotiated transactions or transactions that were 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 six months ended June 30, 2015. In September 2014, the Company filed with the Securities and Exchange Commission a new automatic 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 year ended December 31, 2014 nor the six months ended June 30, 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: Six Months Ended June 30, 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 (1,945 ) 1,017 77 (851 ) Balance, June 30, 2015 $ (8,848 ) $ (15,305 ) $ (4,159 ) $ (28,312 ) (1) The foreign currency translation related to noncontrolling interests was not significant at June 30, 2015 or December 31, 2014. |
Equity Incentive Plans
Equity Incentive Plans | 6 Months Ended |
Jun. 30, 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 provided 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 six months ended June 30, 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 six months ended June 30, 2015 : Shares Wtd. Avg. Exercise Price Wtd. Avg. Remaining Contractual Term (years) Aggregate Intrinsic 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 (92 ) 22.80 Options forfeited/canceled/expired (18 ) 36.85 Options outstanding at June 30, 2015 810 $ 29.82 7.28 $ 5,728 Options vested and expected to vest at June 30, 2015 762 $ 29.28 7.17 $ 5,670 Options exercisable at June 30, 2015 461 $ 24.01 5.95 $ 5,125 During the six months ended June 30, 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 six months ended June 30, 2015 and June 30, 2014 , the amount of stock-based compensation expense related to stock options was $0.5 million and $0.6 million , respectively. As of June 30, 2015 , the Company had $1.2 million of unrecognized compensation costs related to non-vested stock option awards that are expected to be recognized over a weighted average period of 1.6 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 six months ended June 30, 2015 : Shares Wtd. Avg. Grant Date Fair Value (in thousands) Restricted stock outstanding at December 31, 2014 724 $ 30.97 Granted 423 45.83 Vested (156 ) 29.57 Forfeited/canceled (15 ) 38.73 Restricted stock outstanding at June 30, 2015 976 $ 37.50 During the six months ended June 30, 2015 , the Company granted approximately 423,000 shares of restricted stock to certain employees and executive officers. Of these awards, 148,500 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 21.3% to 21.4% ; (ii) beta of 0.81 to 0.74 ; and (iii) risk free rates of 0.85% to 1.00% . For the six months ended June 30, 2015 and June 30, 2014 , the Company recognized $5.0 million and $3.9 million , respectively, of compensation expense related to its restricted stock awards. As of June 30, 2015 , the Company had $28.7 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 1.4 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 six months ended June 30, 2015 , 5,679 shares of the Company's common stock were issued in connection with the Plan. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2015 and June 30, 2014 as follows (in thousands, except per share data): Three Months Ended Six Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Net income $ 28,253 $ 38,898 $ 57,010 $ 66,894 Net income (loss) attributable to noncontrolling interests 38 — 58 (6 ) Net income attributable to The GEO Group, Inc. 28,291 38,898 57,068 66,888 Basic earnings per share attributable to The GEO Group, Inc.: Weighted average shares outstanding 73,665 71,749 73,607 71,599 Per share amount $ 0.38 $ 0.54 $ 0.78 $ 0.93 Diluted earnings per share attributable to The GEO Group, Inc.: Weighted average shares outstanding 73,665 71,749 73,607 71,599 Dilutive effect of equity incentive plans 238 245 287 276 Weighted average shares assuming dilution 73,903 71,994 73,894 71,875 Per share amount $ 0.38 $ 0.54 $ 0.77 $ 0.93 Three Months For the three months ended June 30, 2015 , 249,506 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 264,500 common stock equivalents from restricted shares that were anti-dilutive. For the three months ended June 30, 2014 , 214,071 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 177,391 common stock equivalents from restricted shares that were anti-dilutive. Six Months For the six months ended June 30, 2015 , 166,860 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 176,319 common stock equivalents from restricted shares that were anti-dilutive. For the six months ended June 30, 2014 , 147,776 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 177,318 common stock equivalents from restricted shares that were anti-dilutive. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 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 - Fulham 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 Fulham 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 six months ended June 30, 2015 and 2014. The total fair value of the swap liability as of June 30, 2015 and December 31, 2014 was $0.2 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 June 30, 2015 , the swaps had a notional value of approximately AUD 162.0 million , or $124.0 million , based on exchange rates at June 30, 2015 , related to the outstanding draws for the design and construction phase and approximately AUD 466.3 million , or $357.1 million , based on exchange rates at June 30, 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 gain recorded in other comprehensive income, net of tax, related to this cash flow hedge was approximately $1.0 million during the six months ended June 30, 2015 . The total fair value of the swap liability as of June 30, 2015 was $17.8 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 $237.4 million , based on exchange rates at June 30, 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 six months ended June 30, 2015 , the Company recorded a loss of approximately $0.1 million related to a decrease in the fair value of the interest rate cap assets. As of June 30, 2015 , the interest rate cap assets had a fair value of $0.4 million which is included in Other Non-Current Assets in the accompanying consolidated balance sheet. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Debt outstanding as of June 30, 2015 and December 31, 2014 consisted of the following (in thousands): June 30, 2015 December 31, 2014 Senior Credit Facility: Term loan $ 294,000 $ 295,500 Revolver 453,000 70,000 Total Senior Credit Facility $ 747,000 $ 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 5.875% 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 185,980 145,262 Unamortized discount on non-recourse debt (628 ) (712 ) Total Non-Recourse Debt 185,352 144,550 Capital Lease Obligations 10,402 10,924 Other debt 969 421 Total debt 2,043,723 1,621,395 Current portion of capital lease obligations, long-term debt and non-recourse debt (16,822 ) (16,752 ) Capital Lease Obligations, long-term portion (9,286 ) (9,856 ) Non-Recourse Debt, long-term portion (172,852 ) (131,968 ) Long-Term Debt $ 1,844,763 $ 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 June 30, 2015 , the Company had approximately AUD 215 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 June 30, 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 June 30, 2015 , the Company had $294.0 million in aggregate borrowings outstanding under the Term Loan, $453.0 million in borrowings under the Revolver, and approximately $58.9 million in letters of credit which left $188.1 million in additional borrowing capacity under the Revolver. The weighted average interest rate on outstanding borrowings under the Credit Agreement as of June 30, 2015 was 2.8% . 5.875% Senior Notes due 2024 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 June 30, 2015 . 5.125% Senior Notes due 2023 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 June 30, 2015 . 5.875% Senior Notes due 2022 Interest on the 5.875% 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 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 June 30, 2015 . 6.625% Senior Notes due 2021 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 15-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 June 30, 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 June 30, 2015. The payment of principal and interest on the 2011 Revenue Bonds issued by WEDFA is non-recourse to GEO. As of June 30, 2015 , included in current restricted cash and investments and non-current restricted cash and investments is $7.9 million of funds held in trust for debt service and other reserves with respect to the above mentioned note payable to WEDFA. Australia - Fulham The non-recourse obligation to the Company totaled $12.6 million (AUD 16.4 million ) and $16.4 million (AUD 20.1 million ), based on the exchange rates in effect at June 30, 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 June 30, 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 $605.7 million , based on exchange rates as of June 30, 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 the prison contract, the State will make a lump sum payment of AUD 310 million , or $237.4 million , based on exchange rates as of June 30, 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 June 30, 2015 , $124.0 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 215.0 million , or $164.6 million , based on exchange rates as of June 30, 2015 . These guarantees are secured by outstanding letters of credit under the Company's Revolver as of June 30, 2015 . At June 30, 2015 , the Company also had ten other letters of credit outstanding under separate international facilities relating to performance guarantees of its Australian subsidiary totaling $14.0 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 June 30, 2015 , the Company guaranteed obligations amounting to 21.0 million South African Rand, or $1.7 million based on exchange rates as of June 30, 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 June 30, 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 $1.6 million based on exchange rates as of June 30, 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 June 30, 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 June 30, 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 June 30, 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 $16.5 million , based on exchange rates as of June 30, 2015 , was outstanding as of June 30, 2015 . The Company's maximum exposure relative to the joint venture is its note receivable of $16.5 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. In July 2015, GEOAmey made an additional principal payment towards the note receivable in the amount of £1.0 million . Except as discussed above, the Company does not have any off balance sheet arrangements. |
Commitments, Contingencies and
Commitments, Contingencies and Other | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, 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. Employment Agreement On June 1, 2015, GEO and Mr. George C. Zoley, the Company's Chief Executive Officer, entered into a Third Amendment to the Third Amended and Restated Executive Employment Agreement, effective as of June 1, 2015 (the “Amendment”). The Amendment modifies Mr. Zoley’s employment agreement by decreasing his annual base salary from $1.215 million to $1.0 million and increasing the maximum target annual performance award he may receive from 100% of his annual base salary to 150% of his annual base salary. Additionally, on May 14, 2015, a grant of 25,000 shares of performance-based restricted stock was made to Mr. Zoley with the same performance metrics and vesting schedule as the shares of performance-based restricted stock granted to him on February 5, 2015. 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 approximately $221 million of which $88 million was spent through the first half of 2015. The Company estimates the remaining capital requirements related to these capital projects will be $133 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 $88.1 million , based on exchange rates as of June 30, 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 $605.7 million , based on exchange rates as of June 30, 2015 . Refer to Note 10 - Debt. Contract Awards On April 27, 2015, GEO announced that GEO's wholly-owned subsidiary, The GEO Group Australia Pty. Ltd ("GEO Australia") signed a contract with the Department of Justice & Regulation in the State of Victoria, Australia for the continued management and operation of the Fulham Correctional Centre and the Fulham Nalu Challenge Community Unit (the "Centre"). The Centre has a contract capacity of 947 beds with a further increase in planned capacity under construction. On April 28, 2015, GEO announced that GEO had begun to mobilize the company-owned, 1,740 -bed North Lake Correctional Facility located in Baldwin, Michigan. The decision to mobilize North Lake Correctional Facility was made as a result of the current demand for out-of-state correctional bed space. On May 20, 2015, GEO announced that GEO signed a contract with the Vermont Department of Corrections for the out-of-state housing of up to 675 inmates at the company-owned North Lake Correctional Facility in Baldwin, Michigan. On May 21, 2015, GEO announced that GEO signed a contract with the Washington Department of Corrections for the out-of-state housing of up to 1,000 inmates at the company-owned North Lake Correctional Facility in Baldwin, Michigan. Idle Facilities The Company is currently marketing approximately 3,740 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 $34.8 million as of June 30, 2015 , excluding equipment and other assets that can be easily transferred for use at other facilities. |
Business Segments and Geographi
Business Segments and Geographic Information | 6 Months Ended |
Jun. 30, 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 Six Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Revenues: U.S. Corrections & Detention $ 304,329 $ 276,183 $ 589,938 $ 542,898 GEO Care 82,658 82,461 162,014 159,113 International Services 38,543 54,199 79,197 103,969 Facility Construction & Design (1) 20,415 — 42,165 — Total revenues $ 445,945 $ 412,843 $ 873,314 $ 805,980 Operating income: U.S. Corrections & Detention $ 62,617 $ 64,723 $ 126,213 $ 123,533 GEO Care 19,218 21,958 37,724 37,659 International Services 3,270 2,356 5,085 4,917 Facility Construction & Design (1) 350 — 952 — Operating income from segments $ 85,455 $ 89,037 $ 169,974 $ 166,109 (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. A portion of the Contract Receivable will be paid by the State upon commercial acceptance of the prison and the remainder will be paid quarterly over the life of the contract. Refer to Note 9 - Derivative Financial Instruments and Note 10 - Debt for additional information. Pre-Tax Income Reconciliation of Segments The following is a reconciliation of the Company’s total operating income from its reportable segments to the Company’s income before income taxes and equity in earnings of affiliates (in thousands): Three Months Ended Six Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Total operating income from segments $ 85,455 $ 89,037 $ 169,974 $ 166,109 Unallocated amounts: General and Administrative Expenses (32,174 ) (28,148 ) (64,022 ) (56,650 ) Net Interest Expense (23,783 ) (19,778 ) (46,356 ) (39,698 ) Income before income taxes and equity in earnings of affiliates $ 29,498 $ 41,111 $ 59,596 $ 69,761 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 $2.2 million in earnings, net of tax, for SACS operations during the three and six months ended June 30, 2015 , respectively, and $1.2 million and $2.3 million in earnings, net of tax, for SACS operations during the three and six months ended June 30, 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 June 30, 2015 and December 31, 2014 , the Company’s investment in SACS was $10.2 million and $8.0 million , respectively. The Company has recorded less than $0.1 million and $0.4 million in earnings, net of tax, for GEOAmey's operations during the three and six months ended June 30, 2015 , respectively, and $0.1 million and $0.3 million in earnings, net of tax, for GEOAmey’s operations during the three and six months June 30, 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 June 30, 2015 and December 31, 2014 , the Company’s investment in GEOAmey was $(1.8) 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 | 6 Months Ended |
Jun. 30, 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): Six Months Ended June 30, 2015 Year Ended December 2014 Change in Projected Benefit Obligation Projected benefit obligation, beginning of period $ 25,826 $ 20,032 Service cost 586 821 Interest cost 541 935 Actuarial loss — 4,324 Benefits paid (272 ) (286 ) Projected benefit obligation, end of period $ 26,681 $ 25,826 Change in Plan Assets Plan assets at fair value, beginning of period $ — $ — Company contributions 272 286 Benefits paid (272 ) (286 ) Plan assets at fair value, end of period $ — $ — Unfunded Status of the Plan $ (26,681 ) $ (25,826 ) Three Months Ended Six Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Components of Net Periodic Benefit Cost Service cost $ 293 $ 205 $ 586 $ 409 Interest cost 271 234 541 468 Net loss 107 32 213 64 Net periodic pension cost $ 671 $ 471 $ 1,340 $ 941 The long-term portion of the pension liability as of June 30, 2015 and December 31, 2014 was $26.3 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 | 6 Months Ended |
Jun. 30, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCMENTS On July 9, 2015, the Financial Accounting Standards Board ("FASB") made a final decision to delay the effective date of ASU No. 2014-09, " Revenue from Contracts with Customers, " from annual periods beginning after December 15, 2016 to annual periods beginning after December 15, 2017. ASU No. 2014-09 clarifies the principles for recognizing revenue and develops a common revenue standard for U.S. GAAP and IFRS. The Company is in the process of evaluating whether this standard would have a material impact on the Company's financial position, results of operations or cash flows. In April 2015, 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, 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 Financi
Condensed Consolidating Financial Information | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Financial Information | CONDENSED CONSOLIDATING FINANCIAL INFORMATION As of June 30, 2015, the Company's 6.625% Senior Notes, 5.125% Senior Notes and each of the 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 June 30, 2015 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ 161,365 $ 367,482 $ 61,521 $ (144,423 ) $ 445,945 Operating expenses 141,323 286,414 50,616 (144,423 ) 333,930 Depreciation and amortization 6,381 19,182 997 — 26,560 General and administrative expenses 11,049 16,928 4,197 — 32,174 Operating income 2,612 44,958 5,711 — 53,281 Interest income 5,735 847 3,183 (6,897 ) 2,868 Interest expense (15,537 ) (14,743 ) (3,268 ) 6,897 (26,651 ) Income before income taxes and equity in earnings of affiliates (7,190 ) 31,062 5,626 — 29,498 Income tax provision (benefit) (61 ) 1,588 842 — 2,369 Equity in earnings of affiliates, net of income tax provision — — 1,124 — 1,124 Income (loss) before equity in income of consolidated subsidiaries (7,129 ) 29,474 5,908 — 28,253 Income from consolidated subsidiaries, net of income tax provision 35,382 — — (35,382 ) — Net income 28,253 29,474 5,908 (35,382 ) 28,253 Net loss attributable to noncontrolling interests — — 38 38 Net income attributable to The GEO Group, Inc. $ 28,253 $ 29,474 $ 5,946 $ (35,382 ) $ 28,291 Net income $ 28,253 $ 29,474 $ 5,908 $ (35,382 ) $ 28,253 Other comprehensive income, net of tax — 40 4,810 — 4,850 Total comprehensive income $ 28,253 $ 29,514 $ 10,718 $ (35,382 ) $ 33,103 Comprehensive loss attributable to noncontrolling interests — — 43 — 43 Comprehensive income attributable to The GEO Group, Inc. $ 28,253 $ 29,514 $ 10,761 $ (35,382 ) $ 33,146 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (dollars in thousands) (unaudited) For the Three Months Ended June 30, 2014 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ 139,083 $ 327,427 $ 56,760 $ (110,427 ) $ 412,843 Operating expenses 111,191 251,833 47,461 (110,427 ) 300,058 Depreciation and amortization 6,441 16,169 1,138 — 23,748 General and administrative expenses 9,082 15,355 3,711 — 28,148 Operating income 12,369 44,070 4,450 — 60,889 Interest income 5,079 615 750 (5,620 ) 824 Interest expense (11,123 ) (13,357 ) (1,742 ) 5,620 (20,602 ) Income before income taxes and equity in earnings of affiliates 6,325 31,328 3,458 — 41,111 Income tax provision — 2,671 716 — 3,387 Equity in earnings of affiliates, net of income tax provision — — 1,174 — 1,174 Income before equity in income of consolidated subsidiaries 6,325 28,657 3,916 — 38,898 Income from consolidated subsidiaries, net of income tax provision 32,573 — — (32,573 ) — Net income 38,898 28,657 3,916 (32,573 ) 38,898 Net income attributable to The GEO Group, Inc. $ 38,898 $ 28,657 $ 3,916 $ (32,573 ) $ 38,898 Net income $ 38,898 $ 28,657 $ 3,916 $ (32,573 ) $ 38,898 Other comprehensive income, net of tax — 20 621 — 641 Total comprehensive income $ 38,898 $ 28,677 $ 4,537 $ (32,573 ) $ 39,539 Comprehensive loss attributable to noncontrolling interests — — 5 — 5 Comprehensive income attributable to The GEO Group, Inc. $ 38,898 $ 28,677 $ 4,542 $ (32,573 ) $ 39,544 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (dollars in thousands) (unaudited) For the Six Months Ended June 30, 2015 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ 305,748 $ 707,369 $ 126,488 $ (266,291 ) $ 873,314 Operating expenses 257,548 555,195 105,387 (266,291 ) 651,839 Depreciation and amortization 12,585 36,879 2,037 — 51,501 General and administrative expenses 21,372 33,808 8,842 — 64,022 Operating income 14,243 81,487 10,222 — 105,952 Interest income 11,914 2,078 5,319 (14,370 ) 4,941 Interest expense (29,847 ) (29,379 ) (6,441 ) 14,370 (51,297 ) Income before income taxes and equity in earnings of affiliates (3,690 ) 54,186 9,100 — 59,596 Income tax provision (benefit) (61 ) 3,328 1,929 — 5,196 Equity in earnings of affiliates, net of income tax provision — — 2,610 — 2,246 2,610 Income before equity in income of consolidated subsidiaries (3,629 ) 50,858 9,781 — 57,010 Income from consolidated subsidiaries, net of income tax provision 60,639 — — (60,639 ) — Income from continuing operations 57,010 50,858 9,781 (60,639 ) 57,010 Net income 57,010 50,858 9,781 (60,639 ) 57,010 Net loss attributable to noncontrolling interests — — 58 — 58 Net income attributable to The GEO Group, Inc. $ 57,010 $ 50,858 $ 9,839 $ (60,639 ) $ 57,068 Net income $ 57,010 $ 50,858 $ 9,781 $ (60,639 ) $ 57,010 Other comprehensive income (loss), net of tax — 77 (951 ) — (874 ) Total comprehensive income $ 57,010 $ 50,935 $ 8,830 $ (60,639 ) $ 56,136 Comprehensive loss attributable to noncontrolling interests — — 81 — 81 Comprehensive income attributable to The GEO Group, Inc. $ 57,010 $ 50,935 $ 8,911 $ (60,639 ) $ 56,217 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (dollars in thousands) (unaudited) For the Six Months Ended June 30, 2014 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ 273,837 $ 642,412 $ 109,091 $ (219,360 ) $ 805,980 Operating expenses 218,413 502,513 90,415 (219,360 ) 591,981 Depreciation and amortization 12,847 32,803 2,240 — 47,890 General and administrative expenses 18,421 30,891 7,338 — 56,650 Operating income 24,156 76,205 9,098 — 109,459 Interest income 10,615 1,051 1,429 (11,539 ) 1,556 Interest expense (22,197 ) (27,121 ) (3,475 ) 11,539 (41,254 ) Income before income taxes and equity in earnings of affiliates 12,574 50,135 7,052 — 69,761 Income tax provision — 3,965 1,560 — 5,525 Equity in earnings of affiliates, net of income tax provision — — 2,658 — 2,658 Income before equity in income of consolidated subsidiaries 12,574 46,170 8,150 — 66,894 Income from consolidated subsidiaries, net of income tax provision 54,320 — — (54,320 ) — Net income 66,894 46,170 8,150 (54,320 ) 66,894 Net income attributable to noncontrolling interests — — (6 ) — (6 ) Net income attributable to The GEO Group, Inc. $ 66,894 $ 46,170 $ 8,144 $ (54,320 ) $ 66,888 Net income $ 66,894 $ 46,170 $ 8,150 $ (54,320 ) $ 66,894 Other comprehensive income, net of tax — 39 1,644 — 1,683 Total comprehensive income $ 66,894 $ 46,209 $ 9,794 $ (54,320 ) $ 68,577 Comprehensive loss attributable to noncontrolling interests — — 2 — 2 Comprehensive income attributable to The GEO Group, Inc. $ 66,894 $ 46,209 $ 9,796 $ (54,320 ) $ 68,579 CONDENSED CONSOLIDATING BALANCE SHEET (dollars in thousands) (unaudited) As of June 30, 2015 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 5,852 $ 8,013 $ 33,179 $ — $ 47,044 Restricted cash and investments — — 7,946 — 7,946 Accounts receivable, less allowance for doubtful accounts 105,451 151,966 12,714 — 270,131 Current deferred income tax assets — 21,694 4,227 — 25,921 Prepaid expenses and other current assets 4,375 19,702 9,749 (1,154 ) 32,672 Total current assets 115,678 201,375 67,815 (1,154 ) 383,714 Restricted Cash and Investments 131 16,126 4,790 — 21,047 Property and Equipment, Net 747,862 1,088,613 82,791 — 1,919,266 Contract Receivable — — 110,176 — 110,176 Direct Finance Lease Receivable — — 5,339 — 5,339 Intercompany Receivable 944,769 116,878 — (1,061,647 ) — Non-Current Deferred Income Tax Assets — — 5,873 — 5,873 Goodwill 90 615,652 438 — 616,180 Intangible Assets, Net — 233,570 955 — 234,525 Investment in Subsidiaries 1,182,865 217,278 — (1,400,143 ) — Other Non-Current Assets 23,555 110,144 51,748 (80,116 ) 105,331 Total Assets $ 3,014,950 $ 2,599,636 $ 329,925 $ (2,543,060 ) $ 3,401,451 LIABILITIES AND SHAREHOLDERS’ EQUITY Accounts payable $ 8,058 $ 49,975 $ 1,534 $ — $ 59,567 Accrued payroll and related taxes — 30,076 15,037 — 45,113 Accrued expenses and other 42,941 68,924 24,072 (1,154 ) 134,783 Current portion of capital lease obligations, long-term debt and non-recourse debt 3,000 1,323 12,499 — 16,822 Total current liabilities 53,999 150,298 53,142 (1,154 ) 256,285 Non-Current Deferred Income Tax Liabilities (4,670 ) 20,434 5 — 15,769 Intercompany Payable 100,410 953,347 7,890 (1,061,647 ) — Other Non-Current Liabilities 4,104 143,356 18,575 (80,116 ) 85,919 Capital Lease Obligations — 9,286 — — 9,286 Long-Term Debt 1,844,763 — — — 1,844,763 Non-Recourse Debt — — 172,852 — 172,852 Commitments & Contingencies and Other Shareholders' Equity: The GEO Group, Inc. Shareholders' Equity 1,016,344 1,322,915 77,228 (1,400,143 ) 1,016,344 Noncontrolling Interests — — 233 — 233 Total Shareholders’ Equity 1,016,344 1,322,915 77,461 (1,400,143 ) 1,016,577 Total Liabilities and Shareholders' Equity $ 3,014,950 $ 2,599,636 $ 329,925 $ (2,543,060 ) $ 3,401,451 CONDENSED CONSOLIDATING BALANCE SHEET (dollars in thousands) As of December 31, 2014 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated 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 Six Months Ended June 30, 2015 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Consolidated Cash Flow from Operating Activities: Net cash provided by (used in) operating activities $ 39,103 $ 62,486 $ (21,791 ) $ 79,798 Cash Flow from Investing Activities: Acquisition of SoberLink, cash consideration (24,402 ) (24,402 ) Acquisition of LCS, net of cash acquired (307,403 ) — — (307,403 ) Proceeds from sale of property and equipment — 123 — 123 Insurance proceeds - damaged property — 901 — 901 Change in restricted cash and investments (97 ) 2,396 (7,716 ) (5,417 ) Capital expenditures (36,367 ) (34,273 ) (1,054 ) (71,694 ) Net cash used in investing activities (343,867 ) (55,255 ) (8,770 ) (407,892 ) Cash Flow from Financing Activities: Proceeds from long-term debt 518,000 — — 518,000 Payments on long-term debt (134,744 ) — — (134,744 ) Payments on non-recourse debt — — (4,513 ) (4,513 ) Proceeds from non-recourse debt — — 49,731 49,731 Taxes paid related to net share settlements of equity awards (1,784 ) — — (1,784 ) Proceeds from reissuance of treasury stock in connection with ESPP 218 — — 218 Debt issuance costs — — (2,438 ) (2,438 ) Tax benefit related to equity compensation 651 — — 651 Proceeds from stock options exercised 2,037 — — 2,037 Cash dividends paid (92,254 ) — — (92,254 ) Net cash provided by financing activities 292,124 — 42,780 334,904 Effect of Exchange Rate Changes on Cash and Cash Equivalents — — (1,103 ) (1,103 ) Net Increase (Decrease) in Cash and Cash Equivalents (12,640 ) 7,231 11,116 5,707 Cash and Cash Equivalents, beginning of period 18,492 782 22,063 41,337 Cash and Cash Equivalents, end of period $ 5,852 $ 8,013 $ 33,179 $ 47,044 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (dollars in thousands) (unaudited) For the Six Months Ended June 30, 2014 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Consolidated Cash Flow from Operating Activities: Net cash provided by operating activities $ 76,863 $ 33,090 $ 22,191 $ 132,144 Cash Flow from Investing Activities: Proceeds from sale of property and equipment — 514 — 514 Acquisition of Protocol, cash consideration — (13,000 ) — (13,000 ) Change in restricted cash and investments (207 ) (1,917 ) (6,812 ) (8,936 ) Capital expenditures (24,197 ) (16,671 ) (254 ) (41,122 ) Net cash used in investing activities (24,404 ) (31,074 ) (7,066 ) (62,544 ) Cash Flow from Financing Activities: Proceeds from long-term debt 9,000 — — 9,000 Payments on long-term debt (14,000 ) (82 ) (3,097 ) (17,179 ) Indirect repurchases of treasury shares (1,416 ) — — (1,416 ) Proceeds from reissuance of treasury stock in connection with ESPP 185 — — 185 Tax benefit related to equity compensation 1,351 — — 1,351 Proceeds from stock options exercised 5,531 — — 5,531 Cash dividends paid (82,656 ) — — (82,656 ) Net cash used in financing activities (82,005 ) (82 ) (3,097 ) (85,184 ) Effect of Exchange Rate Changes on Cash and Cash Equivalents — — 819 819 Net Increase (Decrease) in Cash and Cash Equivalents (29,546 ) 1,934 12,847 (14,765 ) Cash and Cash Equivalents, beginning of period 30,730 985 20,410 52,125 Cash and Cash Equivalents, end of period $ 1,184 $ 2,919 $ 33,257 $ 37,360 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Contract Activations On July 6, 2015, GEO announced the activation of three company-owned facilities totaling 4,320 beds in Oklahoma, Michigan and California. In early June 2015, GEO began the intake of offenders at the 1,940 -bed Great Plains Correctional Facility in Hinton, Oklahoma under a 10 -year contract with the Federal Bureau of Prisons. In late June 2015, GEO also began the intake of inmates from the State of Vermont at the 1,740 -bed North Lake Correctional Facility in Baldwin, Michigan under a five -year agreement with the Vermont Department of Corrections. Under the contract, GEO will provide comprehensive correctional management services, including the provision of industry-leading, evidence-based offender rehabilitation programs under the ‘GEO Continuum of Care.’ On July 1, 2015, GEO activated a 640 -bed expansion and began the intake process at the Adelanto Detention Facility in Adelanto, California under the existing contractual structure with the City of Adelanto and U.S. Immigration and Customs Enforcement. Dividend On July 31, 2015, the Board of Directors declared a quarterly cash dividend of $0.62 per share of common stock, which is to be paid on August 24, 2015 to shareholders of record as of the close of business on August 14, 2015. |
Business Combinations (Tables)
Business Combinations (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Soberlink, Inc | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The purchase price of approximately $24.4 million has been preliminarily allocated to the estimated fair values of the assets acquired and liabilities assumed as of May 18, 2015 as follows (in '000's): Accounts receivable and other current assets $ 127 Inventory 385 Intangible assets 15,200 Total assets acquired 15,712 Accounts payable 18 Deferred tax and other tax liabilities 6,176 Total identifiable net assets 9,518 Goodwill 14,884 Total consideration paid $ 24,402 |
LCS Facilities | |
Business Acquisition [Line Items] | |
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 Intangible26
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | Changes in the Company's goodwill balances from December 31, 2014 to June 30, 2015 are as follows (in thousands): December 31, 2014 Acquisitions Foreign Currency Translation June 30, 2015 U.S. Corrections & Detention $ 170,376 $ 107,341 $ — $ 277,717 GEO Care 323,047 14,884 — 337,931 International Services 467 — 65 532 Total Goodwill $ 493,890 122,225 $ 65 $ 616,180 |
Schedule of intangible assets | The Company's intangible assets include customer relationships, facility management contracts, trade names and technology, as follows (in thousands): June 30, 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 and customer relationships 15.6 $ 233,278 $ (63,718 ) $ 169,560 $ 154,591 $ (56,396 ) $ 98,195 Technology 7.3 33,700 (13,935 ) 19,765 24,000 (12,120 ) 11,880 Trade name (Indefinite lived) Indefinite 45,200 — 45,200 45,200 — 45,200 Total acquired intangible assets $ 312,178 $ (77,653 ) $ 234,525 $ 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 $ 10,226 2016 20,369 2017 20,337 2018 17,478 2019 17,150 Thereafter 103,765 $ 189,325 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2015 and December 31, 2014 (in thousands): Fair Value Measurements at June 30, 2015 Carrying Value at June 30, 2015 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Restricted investment: Rabbi Trust $ 13,219 $ — $ 13,219 $ — Fixed income securities 1,889 — 1,889 — Interest rate cap derivatives 396 — $ 396 — Liabilities: Interest rate swap derivatives $ 18,041 $ — $ 18,041 $ — Fair Value Measurements at December 31, 2014 Carrying Value at December 31, 2014 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable 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 derivatives $ 19,248 $ — $ 19,248 $ — |
Fair Value of Assets and Liab28
Fair Value of Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2015 and December 31, 2014 (in thousands): Estimated Fair Value Measurements at June 30, 2015 Carrying Value as of June 30, 2015 Total Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 47,044 $ 47,044 $ 47,044 $ — $ — Restricted cash 15,774 15,774 5,255 10,519 — Liabilities: Borrowings under senior credit facility $ 747,000 $ 748,470 $ — $ 748,470 $ — 5.875% Senior Notes 250,000 262,813 — 262,813 — 5.125% Senior Notes 300,000 299,250 — 299,250 — 5.875% Senior Notes 250,000 257,813 — 257,813 — 6.625% Senior Notes 300,000 311,250 — 311,250 — Non-recourse debt, Australian subsidiary 136,580 136,614 — 136,614 — Other non-recourse debt, including current portion 48,772 51,338 — 51,338 — 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 — 5.875% 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) | 6 Months Ended |
Jun. 30, 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 Paid-In Earnings in Excess of Accumulated Other Comprehensive Noncontrolling Total Shareholders' 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 92 1 2,037 — — — 2,038 Tax benefit related to equity compensation — — 651 — — — 651 Stock-based compensation expense — — 534 — — — 534 Amortization of restricted stock — — 5,044 — — — 5,044 Restricted stock granted 423 4 (4 ) — — — — Restricted stock canceled (15 ) — — — — — — Dividends paid — — — (92,254 ) — — (92,254 ) Shares withheld for net settlements of share-based awards (41 ) — (1,783 ) — — — (1,783 ) Issuance of common stock - ESPP 6 — 218 — — — 218 Net income (loss) — — — 57,068 — (58 ) 57,010 Other comprehensive loss — — — — (851 ) (23 ) (874 ) Balance, June 30, 2015 74,656 $ 747 $ 872,753 $ 171,156 $ (28,312 ) $ 233 $ 1,016,577 |
Dividends declared | During the six months ended June 30, 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 March 3, 2014 March 14, 2014 $0.57 $41.1 April 28, 2014 May 15, 2014 May 27, 2014 $0.57 $41.5 August 5, 2014 August 18, 2014 August 29, 2014 $0.57 $41.4 November 5, 2014 November 17, 2014 November 26, 2014 $0.62 $46.0 February 6, 2015 February 17, 2015 February 27, 2015 $0.62 $46.0 April 29, 2015 May 11, 2015 May 21, 2015 $0.62 $46.3 |
Schedule of accumulated other comprehensive income (loss) | The components of accumulated other comprehensive income (loss) attributable to GEO within shareholders' equity are as follows: Six Months Ended June 30, 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 (1,945 ) 1,017 77 (851 ) Balance, June 30, 2015 $ (8,848 ) $ (15,305 ) $ (4,159 ) $ (28,312 ) (1) The foreign currency translation related to noncontrolling interests was not significant at June 30, 2015 or December 31, 2014. |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 6 Months Ended |
Jun. 30, 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 six months ended June 30, 2015 : Shares Wtd. Avg. Exercise Price Wtd. Avg. Remaining Contractual Term (years) Aggregate Intrinsic 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 (92 ) 22.80 Options forfeited/canceled/expired (18 ) 36.85 Options outstanding at June 30, 2015 810 $ 29.82 7.28 $ 5,728 Options vested and expected to vest at June 30, 2015 762 $ 29.28 7.17 $ 5,670 Options exercisable at June 30, 2015 461 $ 24.01 5.95 $ 5,125 |
Summary of the activity of restricted stock | A summary of the activity of restricted stock outstanding is as follows for the six months ended June 30, 2015 : Shares Wtd. Avg. Grant Date Fair Value (in thousands) Restricted stock outstanding at December 31, 2014 724 $ 30.97 Granted 423 45.83 Vested (156 ) 29.57 Forfeited/canceled (15 ) 38.73 Restricted stock outstanding at June 30, 2015 976 $ 37.50 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2015 and June 30, 2014 as follows (in thousands, except per share data): Three Months Ended Six Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Net income $ 28,253 $ 38,898 $ 57,010 $ 66,894 Net income (loss) attributable to noncontrolling interests 38 — 58 (6 ) Net income attributable to The GEO Group, Inc. 28,291 38,898 57,068 66,888 Basic earnings per share attributable to The GEO Group, Inc.: Weighted average shares outstanding 73,665 71,749 73,607 71,599 Per share amount $ 0.38 $ 0.54 $ 0.78 $ 0.93 Diluted earnings per share attributable to The GEO Group, Inc.: Weighted average shares outstanding 73,665 71,749 73,607 71,599 Dilutive effect of equity incentive plans 238 245 287 276 Weighted average shares assuming dilution 73,903 71,994 73,894 71,875 Per share amount $ 0.38 $ 0.54 $ 0.77 $ 0.93 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Summary of Debt | Debt outstanding as of June 30, 2015 and December 31, 2014 consisted of the following (in thousands): June 30, 2015 December 31, 2014 Senior Credit Facility: Term loan $ 294,000 $ 295,500 Revolver 453,000 70,000 Total Senior Credit Facility $ 747,000 $ 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 5.875% 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 185,980 145,262 Unamortized discount on non-recourse debt (628 ) (712 ) Total Non-Recourse Debt 185,352 144,550 Capital Lease Obligations 10,402 10,924 Other debt 969 421 Total debt 2,043,723 1,621,395 Current portion of capital lease obligations, long-term debt and non-recourse debt (16,822 ) (16,752 ) Capital Lease Obligations, long-term portion (9,286 ) (9,856 ) Non-Recourse Debt, long-term portion (172,852 ) (131,968 ) Long-Term Debt $ 1,844,763 $ 1,462,819 |
Business Segments and Geograp33
Business Segments and Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 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 Six Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Revenues: U.S. Corrections & Detention $ 304,329 $ 276,183 $ 589,938 $ 542,898 GEO Care 82,658 82,461 162,014 159,113 International Services 38,543 54,199 79,197 103,969 Facility Construction & Design (1) 20,415 — 42,165 — Total revenues $ 445,945 $ 412,843 $ 873,314 $ 805,980 Operating income: U.S. Corrections & Detention $ 62,617 $ 64,723 $ 126,213 $ 123,533 GEO Care 19,218 21,958 37,724 37,659 International Services 3,270 2,356 5,085 4,917 Facility Construction & Design (1) 350 — 952 — Operating income from segments $ 85,455 $ 89,037 $ 169,974 $ 166,109 (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 Six Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Total operating income from segments $ 85,455 $ 89,037 $ 169,974 $ 166,109 Unallocated amounts: General and Administrative Expenses (32,174 ) (28,148 ) (64,022 ) (56,650 ) Net Interest Expense (23,783 ) (19,778 ) (46,356 ) (39,698 ) Income before income taxes and equity in earnings of affiliates $ 29,498 $ 41,111 $ 59,596 $ 69,761 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 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): Six Months Ended June 30, 2015 Year Ended December 2014 Change in Projected Benefit Obligation Projected benefit obligation, beginning of period $ 25,826 $ 20,032 Service cost 586 821 Interest cost 541 935 Actuarial loss — 4,324 Benefits paid (272 ) (286 ) Projected benefit obligation, end of period $ 26,681 $ 25,826 Change in Plan Assets Plan assets at fair value, beginning of period $ — $ — Company contributions 272 286 Benefits paid (272 ) (286 ) Plan assets at fair value, end of period $ — $ — Unfunded Status of the Plan $ (26,681 ) $ (25,826 ) |
Components of Net Periodic Benefit Cost | Three Months Ended Six Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Components of Net Periodic Benefit Cost Service cost $ 293 $ 205 $ 586 $ 409 Interest cost 271 234 541 468 Net loss 107 32 213 64 Net periodic pension cost $ 671 $ 471 $ 1,340 $ 941 |
Condensed Consolidating Finan35
Condensed Consolidating Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (dollars in thousands) (unaudited) For the Three Months Ended June 30, 2015 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ 161,365 $ 367,482 $ 61,521 $ (144,423 ) $ 445,945 Operating expenses 141,323 286,414 50,616 (144,423 ) 333,930 Depreciation and amortization 6,381 19,182 997 — 26,560 General and administrative expenses 11,049 16,928 4,197 — 32,174 Operating income 2,612 44,958 5,711 — 53,281 Interest income 5,735 847 3,183 (6,897 ) 2,868 Interest expense (15,537 ) (14,743 ) (3,268 ) 6,897 (26,651 ) Income before income taxes and equity in earnings of affiliates (7,190 ) 31,062 5,626 — 29,498 Income tax provision (benefit) (61 ) 1,588 842 — 2,369 Equity in earnings of affiliates, net of income tax provision — — 1,124 — 1,124 Income (loss) before equity in income of consolidated subsidiaries (7,129 ) 29,474 5,908 — 28,253 Income from consolidated subsidiaries, net of income tax provision 35,382 — — (35,382 ) — Net income 28,253 29,474 5,908 (35,382 ) 28,253 Net loss attributable to noncontrolling interests — — 38 38 Net income attributable to The GEO Group, Inc. $ 28,253 $ 29,474 $ 5,946 $ (35,382 ) $ 28,291 Net income $ 28,253 $ 29,474 $ 5,908 $ (35,382 ) $ 28,253 Other comprehensive income, net of tax — 40 4,810 — 4,850 Total comprehensive income $ 28,253 $ 29,514 $ 10,718 $ (35,382 ) $ 33,103 Comprehensive loss attributable to noncontrolling interests — — 43 — 43 Comprehensive income attributable to The GEO Group, Inc. $ 28,253 $ 29,514 $ 10,761 $ (35,382 ) $ 33,146 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (dollars in thousands) (unaudited) For the Three Months Ended June 30, 2014 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ 139,083 $ 327,427 $ 56,760 $ (110,427 ) $ 412,843 Operating expenses 111,191 251,833 47,461 (110,427 ) 300,058 Depreciation and amortization 6,441 16,169 1,138 — 23,748 General and administrative expenses 9,082 15,355 3,711 — 28,148 Operating income 12,369 44,070 4,450 — 60,889 Interest income 5,079 615 750 (5,620 ) 824 Interest expense (11,123 ) (13,357 ) (1,742 ) 5,620 (20,602 ) Income before income taxes and equity in earnings of affiliates 6,325 31,328 3,458 — 41,111 Income tax provision — 2,671 716 — 3,387 Equity in earnings of affiliates, net of income tax provision — — 1,174 — 1,174 Income before equity in income of consolidated subsidiaries 6,325 28,657 3,916 — 38,898 Income from consolidated subsidiaries, net of income tax provision 32,573 — — (32,573 ) — Net income 38,898 28,657 3,916 (32,573 ) 38,898 Net income attributable to The GEO Group, Inc. $ 38,898 $ 28,657 $ 3,916 $ (32,573 ) $ 38,898 Net income $ 38,898 $ 28,657 $ 3,916 $ (32,573 ) $ 38,898 Other comprehensive income, net of tax — 20 621 — 641 Total comprehensive income $ 38,898 $ 28,677 $ 4,537 $ (32,573 ) $ 39,539 Comprehensive loss attributable to noncontrolling interests — — 5 — 5 Comprehensive income attributable to The GEO Group, Inc. $ 38,898 $ 28,677 $ 4,542 $ (32,573 ) $ 39,544 |
CONDENSED CONSOLIDATING BALANCE SHEET | As of June 30, 2015 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 5,852 $ 8,013 $ 33,179 $ — $ 47,044 Restricted cash and investments — — 7,946 — 7,946 Accounts receivable, less allowance for doubtful accounts 105,451 151,966 12,714 — 270,131 Current deferred income tax assets — 21,694 4,227 — 25,921 Prepaid expenses and other current assets 4,375 19,702 9,749 (1,154 ) 32,672 Total current assets 115,678 201,375 67,815 (1,154 ) 383,714 Restricted Cash and Investments 131 16,126 4,790 — 21,047 Property and Equipment, Net 747,862 1,088,613 82,791 — 1,919,266 Contract Receivable — — 110,176 — 110,176 Direct Finance Lease Receivable — — 5,339 — 5,339 Intercompany Receivable 944,769 116,878 — (1,061,647 ) — Non-Current Deferred Income Tax Assets — — 5,873 — 5,873 Goodwill 90 615,652 438 — 616,180 Intangible Assets, Net — 233,570 955 — 234,525 Investment in Subsidiaries 1,182,865 217,278 — (1,400,143 ) — Other Non-Current Assets 23,555 110,144 51,748 (80,116 ) 105,331 Total Assets $ 3,014,950 $ 2,599,636 $ 329,925 $ (2,543,060 ) $ 3,401,451 LIABILITIES AND SHAREHOLDERS’ EQUITY Accounts payable $ 8,058 $ 49,975 $ 1,534 $ — $ 59,567 Accrued payroll and related taxes — 30,076 15,037 — 45,113 Accrued expenses and other 42,941 68,924 24,072 (1,154 ) 134,783 Current portion of capital lease obligations, long-term debt and non-recourse debt 3,000 1,323 12,499 — 16,822 Total current liabilities 53,999 150,298 53,142 (1,154 ) 256,285 Non-Current Deferred Income Tax Liabilities (4,670 ) 20,434 5 — 15,769 Intercompany Payable 100,410 953,347 7,890 (1,061,647 ) — Other Non-Current Liabilities 4,104 143,356 18,575 (80,116 ) 85,919 Capital Lease Obligations — 9,286 — — 9,286 Long-Term Debt 1,844,763 — — — 1,844,763 Non-Recourse Debt — — 172,852 — 172,852 Commitments & Contingencies and Other Shareholders' Equity: The GEO Group, Inc. Shareholders' Equity 1,016,344 1,322,915 77,228 (1,400,143 ) 1,016,344 Noncontrolling Interests — — 233 — 233 Total Shareholders’ Equity 1,016,344 1,322,915 77,461 (1,400,143 ) 1,016,577 Total Liabilities and Shareholders' Equity $ 3,014,950 $ 2,599,636 $ 329,925 $ (2,543,060 ) $ 3,401,451 CONDENSED CONSOLIDATING BALANCE SHEET (dollars in thousands) As of December 31, 2014 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated 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 Six Months Ended June 30, 2015 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Consolidated Cash Flow from Operating Activities: Net cash provided by (used in) operating activities $ 39,103 $ 62,486 $ (21,791 ) $ 79,798 Cash Flow from Investing Activities: Acquisition of SoberLink, cash consideration (24,402 ) (24,402 ) Acquisition of LCS, net of cash acquired (307,403 ) — — (307,403 ) Proceeds from sale of property and equipment — 123 — 123 Insurance proceeds - damaged property — 901 — 901 Change in restricted cash and investments (97 ) 2,396 (7,716 ) (5,417 ) Capital expenditures (36,367 ) (34,273 ) (1,054 ) (71,694 ) Net cash used in investing activities (343,867 ) (55,255 ) (8,770 ) (407,892 ) Cash Flow from Financing Activities: Proceeds from long-term debt 518,000 — — 518,000 Payments on long-term debt (134,744 ) — — (134,744 ) Payments on non-recourse debt — — (4,513 ) (4,513 ) Proceeds from non-recourse debt — — 49,731 49,731 Taxes paid related to net share settlements of equity awards (1,784 ) — — (1,784 ) Proceeds from reissuance of treasury stock in connection with ESPP 218 — — 218 Debt issuance costs — — (2,438 ) (2,438 ) Tax benefit related to equity compensation 651 — — 651 Proceeds from stock options exercised 2,037 — — 2,037 Cash dividends paid (92,254 ) — — (92,254 ) Net cash provided by financing activities 292,124 — 42,780 334,904 Effect of Exchange Rate Changes on Cash and Cash Equivalents — — (1,103 ) (1,103 ) Net Increase (Decrease) in Cash and Cash Equivalents (12,640 ) 7,231 11,116 5,707 Cash and Cash Equivalents, beginning of period 18,492 782 22,063 41,337 Cash and Cash Equivalents, end of period $ 5,852 $ 8,013 $ 33,179 $ 47,044 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (dollars in thousands) (unaudited) For the Six Months Ended June 30, 2014 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Consolidated Cash Flow from Operating Activities: Net cash provided by operating activities $ 76,863 $ 33,090 $ 22,191 $ 132,144 Cash Flow from Investing Activities: Proceeds from sale of property and equipment — 514 — 514 Acquisition of Protocol, cash consideration — (13,000 ) — (13,000 ) Change in restricted cash and investments (207 ) (1,917 ) (6,812 ) (8,936 ) Capital expenditures (24,197 ) (16,671 ) (254 ) (41,122 ) Net cash used in investing activities (24,404 ) (31,074 ) (7,066 ) (62,544 ) Cash Flow from Financing Activities: Proceeds from long-term debt 9,000 — — 9,000 Payments on long-term debt (14,000 ) (82 ) (3,097 ) (17,179 ) Indirect repurchases of treasury shares (1,416 ) — — (1,416 ) Proceeds from reissuance of treasury stock in connection with ESPP 185 — — 185 Tax benefit related to equity compensation 1,351 — — 1,351 Proceeds from stock options exercised 5,531 — — 5,531 Cash dividends paid (82,656 ) — — (82,656 ) Net cash used in financing activities (82,005 ) (82 ) (3,097 ) (85,184 ) Effect of Exchange Rate Changes on Cash and Cash Equivalents — — 819 819 Net Increase (Decrease) in Cash and Cash Equivalents (29,546 ) 1,934 12,847 (14,765 ) Cash and Cash Equivalents, beginning of period 30,730 985 20,410 52,125 Cash and Cash Equivalents, end of period $ 1,184 $ 2,919 $ 33,257 $ 37,360 |
Basis of Presentation (Details
Basis of Presentation (Details Textual) - Jun. 30, 2015 detainees in Thousands, bed in Thousands | facilitydetaineesbed |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of beds | bed | 86 |
Correctional, detention and residential treatment facilities including projects under development | facility | 106 |
Provision of monitoring services tracking offenders (more than 70,000) | 115 |
Provision of monitoring services tracking offenders using technology products | 75 |
Business Combinations - Soberli
Business Combinations - Soberlink (Details) - USD ($) | May. 18, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||
Goodwill | $ 616,180,000 | $ 493,890,000 | |
Soberlink, Inc | |||
Business Acquisition [Line Items] | |||
Cash consideration | $ 24,400,000 | ||
Accounts receivable and other current assets | 127,000 | ||
Inventory | 385,000 | ||
Intangible assets | 15,200,000 | ||
Total assets acquired | 15,712,000 | ||
Accounts payable | 18,000 | ||
Deferred tax and other tax liabilities | 6,176,000 | ||
Total identifiable net assets | 9,518,000 | ||
Goodwill | 14,884,000 | ||
Total consideration paid | $ 24,402,000 | ||
Technology | Soberlink, Inc | |||
Business Acquisition [Line Items] | |||
Identifiable intangible assets, useful life | 8 years | ||
Customer Relationships | Soberlink, Inc | |||
Business Acquisition [Line Items] | |||
Identifiable intangible assets, useful life | 20 years | ||
Soberlink Healthcare, LLC | Soberlink, Inc | |||
Business Acquisition [Line Items] | |||
Loan provided (amount) | $ 2,200,000 | ||
Loan issued, interest rate | 10.00% | ||
DevCo, LLC | Soberlink, Inc | |||
Business Acquisition [Line Items] | |||
Annual royalty fee to use any improvements to the existing technology resident | $ 1,300,000 |
Goodwill and Other Intangible38
Goodwill and Other Intangible Assets - Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Goodwill [Line Items] | |
Goodwill, beginning of period | $ 493,890 |
Acquisitions | 122,225 |
Foreign Currency Translation | 65 |
Goodwill, end of period | 616,180 |
U.S. Corrections & Detention | |
Goodwill [Line Items] | |
Goodwill, beginning of period | 170,376 |
Acquisitions | 107,341 |
Foreign Currency Translation | 0 |
Goodwill, end of period | 277,717 |
GEO Care | |
Goodwill [Line Items] | |
Goodwill, beginning of period | 323,047 |
Acquisitions | 14,884 |
Foreign Currency Translation | 0 |
Goodwill, end of period | 337,931 |
International Services | |
Goodwill [Line Items] | |
Goodwill, beginning of period | 467 |
Acquisitions | 0 |
Foreign Currency Translation | 65 |
Goodwill, end of period | $ 532 |
Business Combinations (Details)
Business Combinations (Details) | Feb. 17, 2015USD ($)facilitybed | Jun. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) |
Business Acquisition [Line Items] | ||||
Goodwill | $ 616,180,000 | $ 616,180,000 | $ 493,890,000 | |
LCS Facilities | ||||
Business Acquisition [Line Items] | ||||
Number of correctional and detention facilities acquired | facility | 8 | |||
Number of beds In facilities acquired (more than 6,500) | bed | 6,500 | |||
Total consideration paid | $ 307,403,000 | |||
Goodwill | 107,341,000 | |||
Contingent consideration arrangements, performance period | 18 months | |||
Aggregate amount of purchase price, maximum | 350,000,000 | $ 350,000,000 | ||
Contingent consideration value | 0 | $ 0 | ||
Repayments of debt | $ 298,000,000 | |||
LCS Facilities | Customer Relationships | ||||
Business Acquisition [Line Items] | ||||
Identifiable intangible assets, useful life | 20 years | |||
LCS Facilities | General and Administrative Expense | ||||
Business Acquisition [Line Items] | ||||
Acquisition related costs | $ 2,100,000 |
Goodwill and Other Intangible40
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ (77,653) | $ (68,516) |
Net Carrying Amount | 189,325 | |
Gross carrying amount | 312,178 | 223,791 |
Total acquired intangible assets | $ 234,525 | 155,275 |
Facility management contracts and customer relationships | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (years) | 15 years 7 months 6 days | |
Gross Carrying Amount | $ 233,278 | 154,591 |
Accumulated Amortization | (63,718) | (56,396) |
Net Carrying Amount | $ 169,560 | 98,195 |
Technology | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life (years) | 7 years 3 months 18 days | |
Gross Carrying Amount | $ 33,700 | 24,000 |
Accumulated Amortization | (13,935) | (12,120) |
Net Carrying Amount | 19,765 | 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 |
Business Combinations - Assets
Business Combinations - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Feb. 17, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||
Goodwill | $ 616,180 | $ 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 Intangible42
Goodwill and Other Intangible Assets (Details 1) $ in Thousands | Jun. 30, 2015USD ($) |
Estimated amortization expense for the remainder | |
Remainder of 2015 | $ 10,226 |
2,016 | 20,369 |
2,017 | 20,337 |
2,018 | 17,478 |
2,019 | 17,150 |
Thereafter | 103,765 |
Net Carrying Amount | $ 189,325 |
Goodwill and Other Intangible43
Goodwill and Other Intangible Assets (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 4.8 | $ 3.9 | $ 9.1 | $ 7.5 |
Facility management contracts and customer relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted average period | 1 year 9 months 55 days |
Financial Instruments (Details)
Financial Instruments (Details) - Recurring - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Restricted investment: | ||
Rabbi Trust | $ 13,219 | $ 11,281 |
Fixed income securities | 1,889 | 1,966 |
Interest rate cap derivatives assets | 396 | 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 | 13,219 | 11,281 |
Fixed income securities | 1,889 | 1,966 |
Interest rate cap derivatives assets | 396 | 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 | 18,041 | 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 | 18,041 | 19,248 |
Interest rate swap derivatives | Significant Unobservable Inputs (Level 3) | ||
Liabilities: | ||
Interest rate swap derivatives | $ 0 | $ 0 |
Fair Value of Assets and Liab45
Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Assets: | ||||
Cash and cash equivalents | $ 47,044 | $ 41,337 | $ 37,360 | $ 52,125 |
5.125% Senior Notes | ||||
Liabilities: | ||||
Senior notes, fair value | 0 | |||
Carrying Value | ||||
Assets: | ||||
Cash and cash equivalents | 47,044 | 41,337 | ||
Restricted cash | 15,774 | 12,638 | ||
Liabilities: | ||||
Borrowings under senior credit facility | 747,000 | 365,500 | ||
Carrying Value | 5.875% Senior Notes | ||||
Liabilities: | ||||
Senior notes | 250,000 | 250,000 | ||
Carrying Value | 5.125% Senior Notes | ||||
Liabilities: | ||||
Senior notes | 300,000 | 300,000 | ||
Carrying Value | 5.875% Senior Notes | ||||
Liabilities: | ||||
Senior notes | 250,000 | 300,000 | ||
Carrying Value | 6.625% Senior Notes | ||||
Liabilities: | ||||
Senior notes | 300,000 | 250,000 | ||
Carrying Value | Other non recourse debt including current portion | ||||
Liabilities: | ||||
Non-recourse debt | 48,772 | 48,836 | ||
Estimate of Fair Value Measurement | ||||
Assets: | ||||
Cash and cash equivalents | 47,044 | 41,337 | ||
Restricted cash | 15,774 | 12,638 | ||
Liabilities: | ||||
Borrowings under senior credit facility | 748,470 | 364,411 | ||
Estimate of Fair Value Measurement | 5.875% Senior Notes | ||||
Liabilities: | ||||
Senior notes, fair value | 262,813 | 256,720 | ||
Estimate of Fair Value Measurement | 5.125% Senior Notes | ||||
Liabilities: | ||||
Senior notes, fair value | 299,250 | 315,750 | ||
Estimate of Fair Value Measurement | 5.875% Senior Notes | ||||
Liabilities: | ||||
Senior notes, fair value | 257,813 | 296,814 | ||
Estimate of Fair Value Measurement | 6.625% Senior Notes | ||||
Liabilities: | ||||
Senior notes, fair value | 311,250 | 256,720 | ||
Estimate of Fair Value Measurement | Other non recourse debt including current portion | ||||
Liabilities: | ||||
Non-recourse debt | 51,338 | 52,016 | ||
Level 1 | Estimate of Fair Value Measurement | ||||
Assets: | ||||
Cash and cash equivalents | 47,044 | 41,337 | ||
Restricted cash | 5,255 | 3,889 | ||
Liabilities: | ||||
Borrowings under senior credit facility | 0 | 0 | ||
Level 1 | Estimate of Fair Value Measurement | 5.875% Senior Notes | ||||
Liabilities: | ||||
Senior notes, fair value | 0 | 0 | ||
Level 1 | Estimate of Fair Value Measurement | 5.875% Senior Notes | ||||
Liabilities: | ||||
Senior notes, fair value | 0 | 0 | ||
Level 1 | Estimate of Fair Value Measurement | 6.625% Senior Notes | ||||
Liabilities: | ||||
Senior notes, fair value | 0 | 0 | ||
Level 1 | 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 | 10,519 | 8,749 | ||
Liabilities: | ||||
Borrowings under senior credit facility | 748,470 | 364,411 | ||
Level 2 | Estimate of Fair Value Measurement | 5.875% Senior Notes | ||||
Liabilities: | ||||
Senior notes, fair value | 262,813 | 256,720 | ||
Level 2 | Estimate of Fair Value Measurement | 5.125% Senior Notes | ||||
Liabilities: | ||||
Senior notes, fair value | 299,250 | 315,750 | ||
Level 2 | Estimate of Fair Value Measurement | 5.875% Senior Notes | ||||
Liabilities: | ||||
Senior notes, fair value | 257,813 | 296,814 | ||
Level 2 | Estimate of Fair Value Measurement | 6.625% Senior Notes | ||||
Liabilities: | ||||
Senior notes, fair value | 311,250 | 256,720 | ||
Level 2 | Estimate of Fair Value Measurement | Other non recourse debt including current portion | ||||
Liabilities: | ||||
Non-recourse debt | 51,338 | 52,016 | ||
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 | ||||
Liabilities: | ||||
Senior notes, fair value | 0 | 0 | ||
Level 3 | Estimate of Fair Value Measurement | 5.875% Senior Notes | ||||
Liabilities: | ||||
Senior notes, fair value | 0 | 0 | ||
Level 3 | Estimate of Fair Value Measurement | 6.625% Senior Notes | ||||
Liabilities: | ||||
Senior notes, fair value | 0 | 0 | ||
Level 3 | Estimate of Fair Value Measurement | Other non recourse debt including current portion | ||||
Liabilities: | ||||
Non-recourse debt | 0 | 0 | ||
AUSTRALIA | Subsidiary | Carrying Value | ||||
Liabilities: | ||||
Non-recourse debt | 136,580 | 95,714 | ||
AUSTRALIA | Subsidiary | Estimate of Fair Value Measurement | ||||
Liabilities: | ||||
Non-recourse debt | 136,614 | 95,871 | ||
AUSTRALIA | Level 1 | 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 | 136,614 | 95,871 | ||
AUSTRALIA | Level 3 | Subsidiary | Estimate of Fair Value Measurement | ||||
Liabilities: | ||||
Non-recourse debt | $ 0 | $ 0 |
Fair Value of Assets and Liab46
Fair Value of Assets and Liabilities (Details Textual) - Senior Notes | Jun. 30, 2015 | Dec. 31, 2014 |
5.875% Senior Notes, Due 2024 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.875% | 5.875% |
5.125% Senior Notes, Due 2023 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.125% | 5.125% |
5.875% Senior Notes, Due 2022 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.875% | 5.875% |
6.625% Senior Notes, Due 2021 | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.625% | 6.625% |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 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 | $ 2,038 | |||
Proceeds from exercise of stock options, shares | 92 | |||
Tax benefit related to equity compensation | $ 651 | |||
Stock-based compensation expense | 534 | |||
Amortization of restricted stock | 5,044 | |||
Restricted stock granted, value | 0 | |||
Restricted stock canceled | 0 | |||
Dividends paid | (92,254) | |||
Shares withheld for net settlements of share-based awards | (1,783) | |||
Issuance of common stock (ESPP), value | 218 | |||
Net income | $ 28,253 | $ 38,898 | 57,010 | $ 66,894 |
Other comprehensive loss | 4,850 | $ 641 | (874) | $ 1,683 |
Ending Balance | 1,016,577 | 1,016,577 | ||
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 | |||
Proceeds from exercise of stock options, value | $ 1 | |||
Proceeds from exercise of stock options, shares | 92 | |||
Restricted stock granted, value | $ 4 | |||
Restricted stock granted, shares | 423 | |||
Restricted stock canceled | $ 0 | |||
Restricted stock canceled (shares) | (15) | |||
Shares withheld for net settlement of share-based awards (shares) | (41) | |||
Issuance of common stock (ESPP), shares | 6 | |||
Ending Balance | $ 747 | $ 747 | ||
Ending Balance, shares | 74,656 | 74,656 | ||
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 | 2,037 | |||
Tax benefit related to equity compensation | 651 | |||
Stock-based compensation expense | 534 | |||
Amortization of restricted stock | 5,044 | |||
Restricted stock granted, value | (4) | |||
Shares withheld for net settlements of share-based awards | (1,783) | |||
Issuance of common stock (ESPP), value | 218 | |||
Ending Balance | $ 872,753 | 872,753 | ||
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 | (92,254) | |||
Net income | 57,068 | |||
Other comprehensive loss | 0 | |||
Ending Balance | 171,156 | 171,156 | ||
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 | (851) | |||
Ending Balance | (28,312) | (28,312) | ||
Noncontrolling Interests | ||||
Changes in shareholders' equity that are attributable to the Company's shareholders and to non controlling interests | ||||
Beginning Balance | 314 | |||
Net income | (58) | |||
Other comprehensive loss | (23) | |||
Ending Balance | $ 233 | $ 233 |
Shareholders' Equity - Dividend
Shareholders' Equity - Dividends declared (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | ||||||
Jun. 30, 2015 | Apr. 29, 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 | $ 0.62 | $ 0.57 | $ 0.57 | $ 0.57 | |
Aggregate Payment Amount (in millions) | $ 46.3 | $ 46 | $ 46 | $ 41.4 | $ 41.5 | $ 41.1 |
Shareholders' Equity - Componen
Shareholders' Equity - Components of Accumulated Other Comprehensive Income (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2015 | Nov. 10, 2014 | May. 08, 2013 | ||
Components of Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | $ (27,461,000) | ||||
Current-period other comprehensive (loss) income | (851,000) | ||||
Ending Balance | $ (28,312,000) | $ (28,312,000) | |||
Maximum common stock value authorized under prospectus supplement | $ 150,000,000 | $ 100,000,000 | |||
Common Stock sold under prospectus supplement, in shares | 1,500,000 | 0 | |||
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 | [1] | $ (6,903,000) | |||
Current-period other comprehensive (loss) income | [1] | (1,945,000) | |||
Ending Balance | [1] | (8,848,000) | (8,848,000) | ||
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 | 1,017,000 | ||||
Ending Balance | (15,305,000) | (15,305,000) | |||
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 | 77,000 | ||||
Ending Balance | $ (4,159,000) | $ (4,159,000) | |||
[1] | The foreign currency translation related to noncontrolling interests was not significant at June 30, 2015 or December 31, 2014. |
Equity Incentive Plans (Details
Equity Incentive Plans (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 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 | |
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 | 7 years 3 months 11 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 | (92) | |
Options exercised, Wtd. Avg. Exercise Price | $ 22.80 | |
Options forfeited/canceled/expired, Shares | (18) | |
Options forfeited/canceled/expired, Wtd. Avg. Exercise Price | $ 36.85 | |
Options outstanding, Ending Balance, Shares | 810 | 664 |
Options outstanding, Ending Balance, Wtd. Avg. Exercise Price | $ 29.82 | $ 23.89 |
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 | 7 years 3 months 11 days | 6 years 9 months 7 days |
Options outstanding, Ending Balance, Aggregate Intrinsic Value | $ 5,728 | $ 10,935 |
Options vested and expected to vest at June 30, 2015, Shares | 762 | |
Options vested and expected to vest at June 30, 2015, Wtd. Avg. Exercise Price | $ 29.28 | |
Options vested and expected to vest at June 30, 2015, Wtd. Avg., Remaining Contractual Term | 7 years 2 months 1 day | |
Options vested and expected to vest at June 30, 2015, Aggregate Intrinsic Value | $ 5,670 | |
Options exercisable at June 30, 2015, Shares | 461 | |
Options exercisable at June 30, 2015, Wtd. Avg. Exercise Price | $ 24.01 | |
Options exercisable at June 30, 2015, Wtd. Avg. Remaining Contractual Term | 5 years 11 months 12 days | |
Options exercisable at June 30, 2015, Aggregate Intrinsic Value | $ 5,125 |
Equity Incentive Plans (Detai51
Equity Incentive Plans (Details 1) - 6 months ended Jun. 30, 2015 - Restricted Stock - $ / shares shares in Thousands | Total |
Summary of the activity of restricted stock | |
Restricted stock outstanding shares, Beginning Balance | 724 |
Restricted stock outstanding Wtd. Avg. Grant Date Fair Value, Beginning Balance | $ 30.97 |
Granted shares | 423 |
Granted Wtd. Avg. Grant Date Fair Value | $ 45.83 |
Vested shares | (156) |
Vested Wtd. Avg. Grant Date Fair Value | $ 29.57 |
Forfeited/canceled shares | (15) |
Forfeited/canceled Wtd. Avg. Grant Date Fair Value | $ 38.73 |
Restricted stock outstanding shares, Ending Balance | 976 |
Restricted stock outstanding Wtd. Avg. Grant Date Fair Value, Ending Balance | $ 37.50 |
Equity Incentive Plans (Detai52
Equity Incentive Plans (Details Textual) $ / shares in Units, $ in Millions | 6 Months Ended | |
Jun. 30, 2015USD ($)performance_metrics$ / sharesRateshares | Jun. 30, 2014USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility rate | 24.00% | |
Expected term | 5 years | |
Risk free interest rate | 1.00% | |
Expected dividend rate | 5.75% | |
Options granted, Shares | 256,000 | |
Options granted, grant date fair value | $ / shares | $ 4.26 | |
Number of annual performance metrics | performance_metrics | 2 | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility rate | 21.30% | |
Risk free interest rate | 0.85% | |
Beta of Portfolio | 0.81 | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility rate | Rate | 21.40% | |
Risk free interest rate | Rate | 1.00% | |
Beta of Portfolio | Rate | 74.00% | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based compensation expense | $ | $ 5 | $ 3.9 |
Unrecognized compensation costs related to non vested stock option awards | $ | $ 28.7 | |
Expected weighted average period to recognize expense | 1 year 5 months 10 days | |
Vesting period | 3 years | |
Granted shares | 423,000 | |
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 | 5,679 | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based compensation expense | $ | $ 0.5 | $ 0.6 |
Unrecognized compensation costs related to non vested stock option awards | $ | $ 1.2 | |
Expected weighted average period to recognize expense | 1 year 7 months 21 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 | 423,000 | |
Certain Employees and Executive Officers | Performance Based Share | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted shares | 148,500 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net income | $ 28,253 | $ 38,898 | $ 57,010 | $ 66,894 |
Net income (loss) attributable to noncontrolling interests | 38 | 0 | 58 | (6) |
Net income attributable to The GEO Group, Inc. | $ 28,291 | $ 38,898 | $ 57,068 | $ 66,888 |
Basic earnings per share attributable to The GEO Group, Inc.: | ||||
Weighted average shares outstanding | 73,665,000 | 71,749,000 | 73,607,000 | 71,599,000 |
Per share amount | $ 0.38 | $ 0.54 | $ 0.78 | $ 0.93 |
Diluted earnings per share attributable to The GEO Group, Inc.: | ||||
Weighted average shares outstanding | 73,665,000 | 71,749,000 | 73,607,000 | 71,599,000 |
Dilutive effect of equity incentive plans (shares) | 238,000 | 245,000 | 287,000 | 276,000 |
Weighted average shares assuming dilution | 73,903,000 | 71,994,000 | 73,894,000 | 71,875,000 |
Income from continuing operations (in dollars per share) | $ 0.38 | $ 0.54 | $ 0.77 | $ 0.93 |
Restricted Stock | ||||
Basic and diluted earnings per share (Textual) [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share | 177,391 | 176,319 | 177,318 | |
Stock Options | ||||
Basic and diluted earnings per share (Textual) [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share | 249,510 | 214,071 | 166,860 | 147,776 |
Derivative Financial Instrume54
Derivative Financial Instruments - Australia Fulham (Details Textual) - Fullham, Australia AUD in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Jun. 30, 2015AUD | Jun. 30, 2015USD ($) | |
Interest Rate Swaps [Abstract] | ||||
Fixed interest rate on cash flow interest rate derivative | 9.70% | 9.70% | ||
Ineffective portion of Cash Flow Hedge interest rate swap | $ 0 | $ 0 | ||
Interest Rate Swap | ||||
Interest Rate Swaps [Abstract] | ||||
Notional amount coincide with the terms of the non-recourse debt | AUD | AUD 50.9 | |||
Other Noncurrent Assets | ||||
Interest Rate Swaps [Abstract] | ||||
Fair value of the swap liability | $ 200,000 | $ 200,000 |
Derivative Financial Instrume55
Derivative Financial Instruments - Australia Ravenhall (Details) AUD in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Sep. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015AUD | Jun. 30, 2015USD ($) | Sep. 30, 2014AUD | Sep. 30, 2014USD ($) | |
Derivative [Line Items] | |||||||||
Unrealized losses, net of tax, related to cash flow hedge | $ 5,097,000 | $ (7,000) | $ 1,017,000 | $ 20,000 | |||||
Payments on non-recourse debt | 4,513,000 | $ 0 | |||||||
Ravenhall, Australia | |||||||||
Derivative [Line Items] | |||||||||
Ineffective portion of Cash Flow Hedge interest rate swap | 0 | ||||||||
Ravenhall, Australia | Interest Rate Swap | |||||||||
Derivative [Line Items] | |||||||||
Notional amount coincide with the terms of the non-recourse debt | $ 357,100,000 | ||||||||
Ravenhall, Australia | Interest Rate Cap | |||||||||
Derivative [Line Items] | |||||||||
Payments on non-recourse debt | $ 1,700,000 | ||||||||
Loss related to decline in derivative fair value | 100,000 | ||||||||
Ravenhall, Australia | Other Noncurrent Liabilities | |||||||||
Derivative [Line Items] | |||||||||
Fair value of the swap liability | 17,800,000 | ||||||||
Ravenhall, Australia | Other Noncurrent Assets | Interest Rate Cap | |||||||||
Derivative [Line Items] | |||||||||
Interest rate swap asset value | $ 400,000 | ||||||||
Ravenhall, Australia | Design and construction phase | Interest Rate Swap | |||||||||
Derivative [Line Items] | |||||||||
Fixed interest rate on derivative | 3.34% | 3.34% | |||||||
Notional amount coincide with the terms of the non-recourse debt | AUD 162 | $ 124,000,000 | |||||||
Ravenhall, Australia | Operating phase | Interest Rate Swap | |||||||||
Derivative [Line Items] | |||||||||
Fixed interest rate on derivative | 4.21% | 4.21% | |||||||
Notional amount coincide with the terms of the non-recourse debt | AUD | AUD 466.3 | ||||||||
Ravenhall, Australia | Cash Flow Hedge | |||||||||
Derivative [Line Items] | |||||||||
Unrealized losses, net of tax, related to cash flow hedge | $ 1,000,000 | ||||||||
Construction Facility | Non-Recourse Debt | National Australia Bank Limited | Ravenhall | |||||||||
Derivative [Line Items] | |||||||||
Lump sum due at completion | AUD 310 | $ 237,400,000 |
Debt - Debt Outstanding (Detail
Debt - Debt Outstanding (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Debt Instrument [Line Items] | |||
Term loan | $ 294,000 | $ 295,500 | |
Revolver | 453,000 | 70,000 | |
Total Senior Credit Facility | 747,000 | 365,500 | |
Capital Lease Obligations | 10,402 | 10,924 | |
Other debt | 969 | 421 | |
Total debt | 2,043,723 | 1,621,395 | |
Current portion of capital lease obligations, long-term debt and non-recourse debt | (16,822) | (16,752) | |
Capital Lease Obligations, long-term portion | (9,286) | (9,856) | |
Non-Recourse Debt, long-term portion | (172,852) | (131,968) | |
Long-Term Debt | 1,844,763 | 1,462,819 | |
Non-Recourse Debt | |||
Debt Instrument [Line Items] | |||
Non-Recourse Debt | 185,980 | 145,262 | |
Unamortized discount on non-recourse debt | (628) | (712) | |
Total Non-Recourse Debt | $ 185,352 | 144,550 | |
5.875% Senior Notes, Due 2024 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 250,000 | $ 250,000 | |
Interest rate | 5.875% | 5.875% | |
5.125% Senior Notes, Due 2023 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 300,000 | $ 300,000 | |
Interest rate | 5.125% | 5.125% | |
5.875% Senior Notes, Due 2022 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 250,000 | $ 250,000 | |
Interest rate | 5.875% | 5.875% | |
6.625% Senior Notes, Due 2021 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior Notes | $ 300,000 | $ 300,000 | |
Interest rate | 6.625% | 6.625% |
Debt - Senior Credit Facility (
Debt - Senior Credit Facility (Details) $ in Thousands, AUD in Millions | Aug. 27, 2014AUD | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Aug. 27, 2014USD ($) |
Line of Credit Facility [Line Items] | ||||
Term loan | $ 294,000 | $ 295,500 | ||
Revolver | $ 453,000 | $ 70,000 | ||
Weighted average interest rate | 2.80% | |||
Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Term loan | $ 294,000 | |||
Letter of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Long-term debt | 58,900 | |||
Additional Revolver | ||||
Line of Credit Facility [Line Items] | ||||
Borrowing capacity increase | 188,100 | |||
Term Loan | Credit Facility Term Loan | ||||
Line of Credit Facility [Line Items] | ||||
Face amount | $ 296,300 | |||
Term Loan | London Interbank Offered Rate (LIBOR) | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 2.50% | |||
Term Loan | London Interbank Offered Rate (LIBOR) | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0.75% | |||
Revolver | ||||
Line of Credit Facility [Line Items] | ||||
Revolver | $ 453,000 | |||
Revolver | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 700,000 | |||
Revolver | London Interbank Offered Rate (LIBOR) | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 2.25% | |||
Revolver | London Interbank Offered Rate (LIBOR) | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0.00% | |||
Australian LC Facility | Letter of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | AUD | AUD 225 | |||
Amount outstanding on letters of credit | AUD | AUD 215 | |||
Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Total leverage ratio | 5.75 | 5.75 | ||
Senior secured leverage ratio | 3.50 | 3.50 | ||
Interest coverage ratio | 3 | 3 |
Debt - Senior Notes (Details)
Debt - Senior Notes (Details) - Senior Notes | Jun. 30, 2015 | Dec. 31, 2014 |
5.875% Senior Notes, Due 2024 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.875% | 5.875% |
5.125% Senior Notes, Due 2023 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.125% | 5.125% |
5.875% Senior Notes, Due 2022 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.875% | 5.875% |
6.625% Senior Notes, Due 2021 | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.625% | 6.625% |
Debt - Non-Recourse Debt (Detai
Debt - Non-Recourse Debt (Details) $ in Thousands, AUD in Millions | 6 Months Ended | ||||||
Jun. 30, 2015AUD | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014AUD | Sep. 30, 2014USD ($) | Jun. 30, 2014AUD | Jun. 30, 2014USD ($) | |
Debt Instrument [Line Items] | |||||||
Revolver | $ 453,000 | $ 70,000 | |||||
Australian Subsidiaries, Non-Recourse Debt | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.40% | ||||||
Non-Recourse Debt | |||||||
Debt Instrument [Line Items] | |||||||
Non-recourse debt | 185,352 | $ 144,550 | |||||
National Australia Bank Limited | Construction Facility | Non-Recourse Debt | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.00% | ||||||
Northwest Detention Center | Non-Recourse Debt, Northwest Detention Center | |||||||
Debt Instrument [Line Items] | |||||||
Current portion of restricted cash and cash equivalents | 7,900 | ||||||
Northwest Detention Center | Non-Recourse Debt, 2011 Revenue Bonds | |||||||
Debt Instrument [Line Items] | |||||||
Face amount | $ 54,400 | ||||||
Northwest Detention Center | Non-Recourse Debt | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 5.25% | 5.25% | |||||
Non-recourse debt | $ 49,400 | ||||||
Current portion of non recourse debt | 6,300 | ||||||
Fulham | Australian Subsidiaries, Non-Recourse Debt | |||||||
Debt Instrument [Line Items] | |||||||
Non-recourse debt | AUD 16.4 | 12,600 | AUD 20.1 | $ 16,400 | |||
Interest rate terms | variable rate quoted by certain Australian banks plus 140 basis points | ||||||
Noncurrent portion of restricted cash and cash equivalents | AUD 5 | 3,800 | |||||
Ravenhall | National Australia Bank Limited | Construction Facility | Non-Recourse Debt | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | AUD 791 | $ 605,700 | AUD 791 | $ 605,700 | |||
Lump sum due at completion | AUD 310 | 237,400 | |||||
Revolver | $ 124,000 |
Debt - Guarantees (Details)
Debt - Guarantees (Details) £ in Millions, CAD in Millions, AUD in Millions | 6 Months Ended | ||||||
Jun. 30, 2015ZAR | Jun. 30, 2015GBP (£)guarantee | Jun. 30, 2015ZARguarantee | Jun. 30, 2015USD ($)guarantee | Jun. 30, 2015CADguarantee | Sep. 30, 2014AUD | Sep. 30, 2014USD ($) | |
Geo Amey | |||||||
Line of Credit Facility [Line Items] | |||||||
Ownership percentage in South African Custodial Services Pty. Limited | 50.00% | ||||||
Working capital line of credit issued to GEOAmey | £ | £ 12 | ||||||
Note receivable for GEOAmey | £ 10.5 | $ 16,500,000 | |||||
Ravenhall | |||||||
Line of Credit Facility [Line Items] | |||||||
Number of letters of guarantee outstanding under separate international facilities relating to performance guarantees | guarantee | 10 | 10 | 10 | 10 | |||
Letters of credit outstanding relating to performance guarantees | $ 14,000,000 | ||||||
Ravenhall | Letter of Credit | Revolver | |||||||
Line of Credit Facility [Line Items] | |||||||
Guaranteed obligations | AUD 215 | $ 164,600,000 | |||||
SACS | |||||||
Line of Credit Facility [Line Items] | |||||||
Guaranteed obligations | ZAR 21,000,000 | 1,700,000 | |||||
Remaining guarantee under letter of credit | ZAR | ZAR 21,000,000 | ||||||
Maximum loan amount under standby facility | ZAR 20,000,000 | 1,630,000 | |||||
Canada Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Potential estimated exposure of tax obligations | 2,000,000 | CAD 2.5 | |||||
Liability related to potential tax exposure | $ 2,000,000 |
Commitments, Contingencies an61
Commitments, Contingencies and Other (Details Textual) $ in Thousands, AUD in Millions | Jun. 01, 2015USD ($) | May. 30, 2015USD ($) | May. 14, 2015shares | Jun. 30, 2015USD ($) | Jun. 30, 2015AUDfacilitybed | Jun. 30, 2015USD ($)facilitybed | May. 21, 2015inmate | May. 20, 2015inmate | Apr. 28, 2015bed | Apr. 27, 2015bed | Sep. 30, 2014AUD | Sep. 30, 2014USD ($) |
Commitments and Contingencies (Textual) [Abstract] | ||||||||||||
Estimated construction capital project cost | $ 221,000 | |||||||||||
Cost already spent on existing capital projects | 88,000 | |||||||||||
Remaining capital required for capital projects | $ 133,000 | |||||||||||
Number of vacant beds at idle facilities marketed to potential customers | bed | 3,740 | 3,740 | ||||||||||
Number of marketed idle facilities | facility | 5 | 5 | ||||||||||
Property and Equipment | ||||||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||||||
Carrying values of idle facilities marketed to potential customers | $ 34,800 | |||||||||||
National Australia Bank Limited | Ravenhall | Non-Recourse Debt | ||||||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||||||
Contributions in aid of construction | AUD 115 | 88,100 | ||||||||||
National Australia Bank Limited | Ravenhall | Non-Recourse Debt | Construction Facility | ||||||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||||||
Maximum borrowing capacity | AUD 791 | $ 605,700 | AUD 791 | $ 605,700 | ||||||||
Facility management contracts and customer relationships | Fulham Correctional Centre & Fulham Nalu Challenge Community Unit | ||||||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||||||
Number of beds in a facility | bed | 947 | |||||||||||
Facility management contracts and customer relationships | North Lake Correctional Facility | ||||||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||||||
Number of beds in a facility | bed | 1,740 | |||||||||||
Out-Of-State Housing Contract | Vermont Department of Corrections | ||||||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||||||
Number of inmates, capacity | inmate | 675 | |||||||||||
Out-Of-State Housing Contract | Washington Department of Corrections | ||||||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||||||
Number of inmates, capacity | inmate | 1,000 | |||||||||||
Chief Executive Officer | Third Amendment to the Third Amended and Restated Executive Employment Agreement | ||||||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||||||
Annual base salary | $ 1,000 | $ 1,215 | ||||||||||
Maximum performance award as percent of annual base salary | 150.00% | 100.00% | ||||||||||
Performance-Based Restricted Stock | Chief Executive Officer | Third Amendment to the Third Amended and Restated Executive Employment Agreement | ||||||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||||||
Granted shares | shares | 25,000 |
Business Segments and Geograp62
Business Segments and Geographic Information (Details) - Operating Segments - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |||||
Revenues: | ||||||||
Revenues | $ 445,945 | $ 412,843 | $ 873,314 | $ 805,980 | ||||
Operating Income: | ||||||||
Total operating income from segments | 85,455 | 89,037 | 169,974 | 166,109 | ||||
U.S. Corrections & Detention | ||||||||
Revenues: | ||||||||
Revenues | 304,329 | 276,183 | 589,938 | 542,898 | ||||
Operating Income: | ||||||||
Total operating income from segments | 62,617 | 64,723 | 126,213 | 123,533 | ||||
GEO Care | ||||||||
Revenues: | ||||||||
Revenues | 82,658 | 82,461 | 162,014 | 159,113 | ||||
Operating Income: | ||||||||
Total operating income from segments | 19,218 | 21,958 | 37,724 | 37,659 | ||||
International Services | ||||||||
Revenues: | ||||||||
Revenues | 38,543 | 54,199 | 79,197 | 103,969 | ||||
Operating Income: | ||||||||
Total operating income from segments | 3,270 | [1] | 2,356 | [1] | 5,085 | 4,917 | ||
Facility Construction & Design | ||||||||
Revenues: | ||||||||
Revenues | 20,415 | 0 | 42,165 | [1] | 0 | [1] | ||
Operating Income: | ||||||||
Total operating income from segments | $ 350 | $ 0 | $ 952 | [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 Geograp63
Business Segments and Geographic Information (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Pre-Tax Income Reconciliation of Segments | ||||
Total operating income from segments | $ 53,281 | $ 60,889 | $ 105,952 | $ 109,459 |
Unallocated Amount: | ||||
General and Administrative Expenses | (32,174) | (28,148) | (64,022) | (56,650) |
Income before income taxes and equity in earnings of affiliates | 29,498 | 41,111 | 59,596 | 69,761 |
Operating Segments | ||||
Pre-Tax Income Reconciliation of Segments | ||||
Total operating income from segments | 85,455 | 89,037 | 169,974 | 166,109 |
Segment Reconciling Items | ||||
Unallocated Amount: | ||||
General and Administrative Expenses | (32,174) | (28,148) | (64,022) | (56,650) |
Net Interest Expense | $ (23,783) | $ (19,778) | $ (46,356) | $ (39,698) |
Business Segments and Geograp64
Business Segments and Geographic Information (Details Textual) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)segment | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||||
Number of reportable business segments | segment | 4 | ||||
Equity in earnings (losses) of affiliates, net of income tax provision | $ 1,124 | $ 1,174 | $ 2,610 | $ 2,658 | |
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 | 1,200 | $ 2,200 | 2,300 | |
Investment in Joint Ventures | 10,200 | $ 10,200 | $ 8,000 | ||
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 | 100 | $ 100 | $ 400 | $ 300 | |
Investment in Joint Ventures | $ (1,800) | $ (1,800) | $ (2,200) |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Change in Projected Benefit Obligation | |||||
Projected benefit obligation, beginning of period | $ 25,826 | $ 20,032 | $ 20,032 | ||
Service cost | $ 293 | $ 205 | 586 | 409 | 821 |
Interest cost | 271 | $ 234 | 541 | 468 | 935 |
Actuarial loss | 0 | 4,324 | |||
Benefits paid | (272) | (286) | |||
Projected benefit obligation, end of period | 26,681 | 26,681 | 25,826 | ||
Change in Plan Assets | |||||
Plan assets at fair value, beginning of period | 0 | $ 0 | 0 | ||
Company contributions | 272 | 286 | |||
Benefits paid | (272) | (286) | |||
Plan assets at fair value, end of period | 0 | 0 | 0 | ||
Unfunded Status of the Plan | $ (26,681) | $ (26,681) | $ (25,826) |
Benefit Plans (Details 1)
Benefit Plans (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Components of Net Periodic Benefit Cost | |||||
Service cost | $ 293 | $ 205 | $ 586 | $ 409 | $ 821 |
Interest cost | 271 | 234 | 541 | 468 | $ 935 |
Net loss | 107 | 32 | 213 | 64 | |
Net periodic pension cost | $ 671 | $ 471 | $ 1,340 | $ 941 |
Benefit Plans (Details Textual)
Benefit Plans (Details Textual) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Compensation and Retirement Disclosure [Abstract] | ||
Long-term portion of the pension liability | $ 26.3 | $ 24.9 |
Condensed Consolidating Finan68
Condensed Consolidating Financial Information (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Consolidated Statements of Income and Comprehensive Income [Abstract] | ||||
Revenues | $ 445,945 | $ 412,843 | $ 873,314 | $ 805,980 |
Operating expenses | 333,930 | 300,058 | 651,839 | 591,981 |
Depreciation and amortization | 26,560 | 23,748 | 51,501 | 47,890 |
General and administrative expenses | 32,174 | 28,148 | 64,022 | 56,650 |
Total operating income from segments | 53,281 | 60,889 | 105,952 | 109,459 |
Interest income | 2,868 | 824 | 4,941 | 1,556 |
Interest expense | (26,651) | (20,602) | (51,297) | (41,254) |
Income before income taxes and equity in earnings of affiliates | 29,498 | 41,111 | 59,596 | 69,761 |
Provision for income taxes | 2,369 | 3,387 | 5,196 | 5,525 |
Equity in earnings (losses) of affiliates, net of income tax provision | 1,124 | 1,174 | 2,610 | 2,658 |
Income before equity in income of consolidated subsidiaries | 28,253 | 38,898 | 57,010 | 66,894 |
Income from consolidated subsidiaries, net of income tax provision | 0 | 0 | 0 | 0 |
Net income | 28,253 | 38,898 | 57,010 | 66,894 |
Net income | 28,253 | 38,898 | 57,010 | 66,894 |
Net loss (income) attributable to noncontrolling interests | 38 | 0 | 58 | (6) |
Net income attributable to The GEO Group, Inc. | 28,291 | 38,898 | 57,068 | 66,888 |
Other comprehensive income (loss) | 4,850 | 641 | (874) | 1,683 |
Total comprehensive income | 33,103 | 39,539 | 56,136 | 68,577 |
Comprehensive loss attributable to noncontrolling interests | 43 | 5 | 81 | 2 |
Comprehensive income attributable to The GEO Group, Inc. | 33,146 | 39,544 | 56,217 | 68,579 |
The GEO Group, Inc. | ||||
Consolidated Statements of Income and Comprehensive Income [Abstract] | ||||
Revenues | 161,365 | 139,083 | 305,748 | 273,837 |
Operating expenses | 141,323 | 111,191 | 257,548 | 218,413 |
Depreciation and amortization | 6,381 | 6,441 | 12,585 | 12,847 |
General and administrative expenses | 11,049 | 9,082 | 21,372 | 18,421 |
Total operating income from segments | 2,612 | 12,369 | 14,243 | 24,156 |
Interest income | 5,735 | 5,079 | 11,914 | 10,615 |
Interest expense | (15,537) | (11,123) | (29,847) | (22,197) |
Income before income taxes and equity in earnings of affiliates | (7,190) | 6,325 | (3,690) | 12,574 |
Provision for income taxes | (61) | 0 | (61) | 0 |
Equity in earnings (losses) of affiliates, net of income tax provision | 0 | 0 | 0 | 0 |
Income before equity in income of consolidated subsidiaries | (7,129) | 6,325 | (3,629) | 12,574 |
Income from consolidated subsidiaries, net of income tax provision | 35,382 | 32,573 | 60,639 | 54,320 |
Net income | 57,010 | |||
Net income | 28,253 | 38,898 | 57,010 | 66,894 |
Net loss (income) attributable to noncontrolling interests | 0 | 0 | 0 | |
Net income attributable to The GEO Group, Inc. | 28,253 | 38,898 | 57,010 | 66,894 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Total comprehensive income | 28,253 | 38,898 | 57,010 | 66,894 |
Comprehensive loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to The GEO Group, Inc. | 28,253 | 38,898 | 57,010 | 66,894 |
Combined Subsidiary Guarantors | ||||
Consolidated Statements of Income and Comprehensive Income [Abstract] | ||||
Revenues | 367,482 | 327,427 | 707,369 | 642,412 |
Operating expenses | 286,414 | 251,833 | 555,195 | 502,513 |
Depreciation and amortization | 19,182 | 16,169 | 36,879 | 32,803 |
General and administrative expenses | 16,928 | 15,355 | 33,808 | 30,891 |
Total operating income from segments | 44,958 | 44,070 | 81,487 | 76,205 |
Interest income | 847 | 615 | 2,078 | 1,051 |
Interest expense | (14,743) | (13,357) | (29,379) | (27,121) |
Income before income taxes and equity in earnings of affiliates | 31,062 | 31,328 | 54,186 | 50,135 |
Provision for income taxes | 1,588 | 2,671 | 3,328 | 3,965 |
Equity in earnings (losses) of affiliates, net of income tax provision | 0 | 0 | 0 | 0 |
Income before equity in income of consolidated subsidiaries | 29,474 | 28,657 | 50,858 | 46,170 |
Income from consolidated subsidiaries, net of income tax provision | 0 | 0 | 0 | 0 |
Net income | 50,858 | |||
Net income | 29,474 | 28,657 | 50,858 | 46,170 |
Net loss (income) attributable to noncontrolling interests | 0 | 0 | 0 | |
Net income attributable to The GEO Group, Inc. | 29,474 | 28,657 | 50,858 | 46,170 |
Other comprehensive income (loss) | 40 | 20 | 77 | 39 |
Total comprehensive income | 29,514 | 28,677 | 50,935 | 46,209 |
Comprehensive loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to The GEO Group, Inc. | 29,514 | 28,677 | 50,935 | 46,209 |
Combined Non-Guarantor Subsidiaries | ||||
Consolidated Statements of Income and Comprehensive Income [Abstract] | ||||
Revenues | 61,521 | 56,760 | 126,488 | 109,091 |
Operating expenses | 50,616 | 47,461 | 105,387 | 90,415 |
Depreciation and amortization | 997 | 1,138 | 2,037 | 2,240 |
General and administrative expenses | 4,197 | 3,711 | 8,842 | 7,338 |
Total operating income from segments | 5,711 | 4,450 | 10,222 | 9,098 |
Interest income | 3,183 | 750 | 5,319 | 1,429 |
Interest expense | (3,268) | (1,742) | (6,441) | (3,475) |
Income before income taxes and equity in earnings of affiliates | 5,626 | 3,458 | 9,100 | 7,052 |
Provision for income taxes | 842 | 716 | 1,929 | 1,560 |
Equity in earnings (losses) of affiliates, net of income tax provision | 1,124 | 1,174 | 2,610 | 2,658 |
Income before equity in income of consolidated subsidiaries | 5,908 | 3,916 | 9,781 | 8,150 |
Income from consolidated subsidiaries, net of income tax provision | 0 | 0 | 0 | 0 |
Net income | 9,781 | |||
Net income | 5,908 | 3,916 | 9,781 | 8,150 |
Net loss (income) attributable to noncontrolling interests | 38 | 58 | (6) | |
Net income attributable to The GEO Group, Inc. | 5,946 | 3,916 | 9,839 | 8,144 |
Other comprehensive income (loss) | 4,810 | 621 | (951) | 1,644 |
Total comprehensive income | 10,718 | 4,537 | 8,830 | 9,794 |
Comprehensive loss attributable to noncontrolling interests | 43 | 5 | 81 | 2 |
Comprehensive income attributable to The GEO Group, Inc. | 10,761 | 4,542 | 8,911 | 9,796 |
Eliminations | ||||
Consolidated Statements of Income and Comprehensive Income [Abstract] | ||||
Revenues | (144,423) | (110,427) | (266,291) | (219,360) |
Operating expenses | (144,423) | (110,427) | (266,291) | (219,360) |
Depreciation and amortization | 0 | 0 | 0 | 0 |
General and administrative expenses | 0 | 0 | 0 | 0 |
Total operating income from segments | 0 | 0 | 0 | 0 |
Interest income | (6,897) | (5,620) | (14,370) | (11,539) |
Interest expense | 6,897 | 5,620 | 14,370 | 11,539 |
Income before income taxes and equity in earnings of affiliates | 0 | 0 | 0 | 0 |
Provision for income taxes | 0 | 0 | 0 | 0 |
Equity in earnings (losses) of affiliates, net of income tax provision | 0 | 0 | 0 | 0 |
Income before equity in income of consolidated subsidiaries | 0 | 0 | 0 | 0 |
Income from consolidated subsidiaries, net of income tax provision | (35,382) | (32,573) | (60,639) | (54,320) |
Net income | (60,639) | |||
Net income | $ (35,382) | (32,573) | (60,639) | (54,320) |
Net loss (income) attributable to noncontrolling interests | 0 | 0 | ||
Net income attributable to The GEO Group, Inc. | $ (35,382) | (32,573) | (60,639) | (54,320) |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Total comprehensive income | (35,382) | (32,573) | (60,639) | (54,320) |
Comprehensive loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to The GEO Group, Inc. | $ (35,382) | $ (32,573) | $ (60,639) | $ (54,320) |
Condensed Consolidating Finan69
Condensed Consolidating Financial Information (Details 2) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Assets | ||||
Cash and cash equivalents | $ 47,044 | $ 41,337 | $ 37,360 | $ 52,125 |
Restricted cash and investments, current | 7,946 | 4,341 | ||
Accounts receivable, less allowance for doubtful accounts | 270,131 | 269,038 | ||
Current deferred income tax assets | 25,921 | 25,884 | ||
Prepaid expenses and other current assets | 32,672 | 36,806 | ||
Total current assets | 383,714 | 377,406 | ||
Restricted cash and investments, non-current | 21,047 | 19,578 | ||
Property and equipment, net | 1,919,266 | 1,772,166 | ||
Contract Receivable | 110,176 | 66,229 | ||
Direct Finance Lease Receivable | 5,339 | 9,256 | ||
Intercompany Receivable | 0 | 0 | ||
Non-Current Deferred Income Tax Assets | 5,873 | 5,873 | ||
Goodwill | 616,180 | 493,890 | ||
Intangible Assets, Net | 234,525 | 155,275 | ||
Investment in Subsidiaries | 0 | 0 | ||
Other Non-Current Assets | 105,331 | 102,535 | ||
Total Assets | 3,401,451 | 3,002,208 | ||
Current Liabilities | ||||
Accounts payable | 59,567 | 58,155 | ||
Accrued payroll and related taxes | 45,113 | 38,556 | ||
Accrued expenses and other current liabilities | 134,783 | 140,612 | ||
Current portion of capital lease obligations, long-term debt and non-recourse debt | 16,822 | 16,752 | ||
Total current liabilities | 256,285 | 254,075 | ||
Non-Current Deferred Income Tax Liabilities | 15,769 | 10,068 | ||
Intercompany Payable | 0 | 0 | ||
Other Non-Current Liabilities | 85,919 | 87,429 | ||
Capital Lease Obligations | 9,286 | 9,856 | ||
Long-Term Debt | 1,844,763 | 1,462,819 | ||
Non-recourse debt | $ 172,852 | $ 131,968 | ||
Commitments & Contingencies and Other | ||||
The GEO Group, Inc. Shareholders' Equity | $ 1,016,344 | $ 1,045,679 | ||
Noncontrolling interests | 233 | 314 | ||
Total shareholders’ equity | 1,016,577 | 1,045,993 | ||
Total Liabilities and Shareholders’ Equity | 3,401,451 | 3,002,208 | ||
The GEO Group, Inc. | ||||
Assets | ||||
Cash and cash equivalents | 5,852 | 18,492 | 1,184 | 30,730 |
Restricted cash and investments, current | 0 | 0 | ||
Accounts receivable, less allowance for doubtful accounts | 105,451 | 92,456 | ||
Current deferred income tax assets | 0 | 0 | ||
Prepaid expenses and other current assets | 4,375 | 7,022 | ||
Total current assets | 115,678 | 117,970 | ||
Restricted cash and investments, non-current | 131 | 228 | ||
Property and equipment, net | 747,862 | 726,238 | ||
Contract Receivable | 0 | 0 | ||
Direct Finance Lease Receivable | 0 | 0 | ||
Intercompany Receivable | 944,769 | 962,314 | ||
Non-Current Deferred Income Tax Assets | 0 | 0 | ||
Goodwill | 90 | 34 | ||
Intangible Assets, Net | 0 | 0 | ||
Investment in Subsidiaries | 1,182,865 | 855,870 | ||
Other Non-Current Assets | 23,555 | 25,635 | ||
Total Assets | 3,014,950 | 2,688,289 | ||
Current Liabilities | ||||
Accounts payable | 8,058 | 7,549 | ||
Accrued payroll and related taxes | 0 | 0 | ||
Accrued expenses and other current liabilities | 42,941 | 47,637 | ||
Current portion of capital lease obligations, long-term debt and non-recourse debt | 3,000 | 3,001 | ||
Total current liabilities | 53,999 | 58,187 | ||
Non-Current Deferred Income Tax Liabilities | (4,670) | (4,095) | ||
Intercompany Payable | 100,410 | 121,327 | ||
Other Non-Current Liabilities | 4,104 | 4,372 | ||
Capital Lease Obligations | 0 | 0 | ||
Long-Term Debt | 1,844,763 | 1,462,819 | ||
Non-recourse debt | $ 0 | 0 | ||
Commitments & Contingencies and Other | ||||
The GEO Group, Inc. Shareholders' Equity | $ 1,016,344 | 1,045,679 | ||
Noncontrolling interests | 0 | 0 | ||
Total shareholders’ equity | 1,016,344 | 1,045,679 | ||
Total Liabilities and Shareholders’ Equity | 3,014,950 | 2,688,289 | ||
Combined Subsidiary Guarantors | ||||
Assets | ||||
Cash and cash equivalents | 8,013 | 782 | 2,919 | 985 |
Restricted cash and investments, current | 0 | 0 | ||
Accounts receivable, less allowance for doubtful accounts | 151,966 | 159,505 | ||
Current deferred income tax assets | 21,694 | 21,657 | ||
Prepaid expenses and other current assets | 19,702 | 19,593 | ||
Total current assets | 201,375 | 201,537 | ||
Restricted cash and investments, non-current | 16,126 | 13,729 | ||
Property and equipment, net | 1,088,613 | 961,896 | ||
Contract Receivable | 0 | 0 | ||
Direct Finance Lease Receivable | 0 | 0 | ||
Intercompany Receivable | 116,878 | 119,414 | ||
Non-Current Deferred Income Tax Assets | 0 | 0 | ||
Goodwill | 615,652 | 493,389 | ||
Intangible Assets, Net | 233,570 | 154,237 | ||
Investment in Subsidiaries | 217,278 | 438,243 | ||
Other Non-Current Assets | 110,144 | 110,105 | ||
Total Assets | 2,599,636 | 2,492,550 | ||
Current Liabilities | ||||
Accounts payable | 49,975 | 47,130 | ||
Accrued payroll and related taxes | 30,076 | 24,184 | ||
Accrued expenses and other current liabilities | 68,924 | 75,574 | ||
Current portion of capital lease obligations, long-term debt and non-recourse debt | 1,323 | 1,170 | ||
Total current liabilities | 150,298 | 148,058 | ||
Non-Current Deferred Income Tax Liabilities | 20,434 | 14,170 | ||
Intercompany Payable | 953,347 | 942,071 | ||
Other Non-Current Liabilities | 143,356 | 143,584 | ||
Capital Lease Obligations | 9,286 | 9,856 | ||
Long-Term Debt | 0 | 0 | ||
Non-recourse debt | $ 0 | 0 | ||
Commitments & Contingencies and Other | ||||
The GEO Group, Inc. Shareholders' Equity | $ 1,322,915 | 1,234,811 | ||
Noncontrolling interests | 0 | 0 | ||
Total shareholders’ equity | 1,322,915 | 1,234,811 | ||
Total Liabilities and Shareholders’ Equity | 2,599,636 | 2,492,550 | ||
Combined Non-Guarantor Subsidiaries | ||||
Assets | ||||
Cash and cash equivalents | 33,179 | 22,063 | $ 33,257 | $ 20,410 |
Restricted cash and investments, current | 7,946 | 4,341 | ||
Accounts receivable, less allowance for doubtful accounts | 12,714 | 17,077 | ||
Current deferred income tax assets | 4,227 | 4,227 | ||
Prepaid expenses and other current assets | 9,749 | 11,345 | ||
Total current assets | 67,815 | 59,053 | ||
Restricted cash and investments, non-current | 4,790 | 5,621 | ||
Property and equipment, net | 82,791 | 84,032 | ||
Contract Receivable | 110,176 | 66,229 | ||
Direct Finance Lease Receivable | 5,339 | 9,256 | ||
Intercompany Receivable | 0 | 0 | ||
Non-Current Deferred Income Tax Assets | 5,873 | 5,873 | ||
Goodwill | 438 | 467 | ||
Intangible Assets, Net | 955 | 1,038 | ||
Investment in Subsidiaries | 0 | 0 | ||
Other Non-Current Assets | 51,748 | 46,838 | ||
Total Assets | 329,925 | 278,407 | ||
Current Liabilities | ||||
Accounts payable | 1,534 | 3,476 | ||
Accrued payroll and related taxes | 15,037 | 14,372 | ||
Accrued expenses and other current liabilities | 24,072 | 18,555 | ||
Current portion of capital lease obligations, long-term debt and non-recourse debt | 12,499 | 12,581 | ||
Total current liabilities | 53,142 | 48,984 | ||
Non-Current Deferred Income Tax Liabilities | 5 | (7) | ||
Intercompany Payable | 7,890 | 18,330 | ||
Other Non-Current Liabilities | 18,575 | 19,507 | ||
Capital Lease Obligations | 0 | 0 | ||
Long-Term Debt | 0 | 0 | ||
Non-recourse debt | $ 172,852 | 131,968 | ||
Commitments & Contingencies and Other | ||||
The GEO Group, Inc. Shareholders' Equity | $ 77,228 | 59,311 | ||
Noncontrolling interests | 233 | 314 | ||
Total shareholders’ equity | 77,461 | 59,625 | ||
Total Liabilities and Shareholders’ Equity | 329,925 | 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 | (1,061,647) | (1,081,728) | ||
Non-Current Deferred Income Tax Assets | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible Assets, Net | 0 | 0 | ||
Investment in Subsidiaries | (1,400,143) | (1,294,113) | ||
Other Non-Current Assets | (80,116) | (80,043) | ||
Total Assets | (2,543,060) | (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 | (1,061,647) | (1,081,728) | ||
Other Non-Current Liabilities | (80,116) | (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 | $ (1,400,143) | (1,294,122) | ||
Noncontrolling interests | 0 | 0 | ||
Total shareholders’ equity | (1,400,143) | (1,294,122) | ||
Total Liabilities and Shareholders’ Equity | $ (2,543,060) | $ (2,457,038) |
Condensed Consolidating Finan70
Condensed Consolidating Financial Information (Details 3) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash Flow from Operating Activities: | ||
Net cash provided by operating activities | $ 79,798 | $ 132,144 |
Cash Flow from Investing Activities: | ||
Acquisition of SoberLink, cash consideration | (24,402) | 0 |
Acquisition of LCS, net of cash acquired | (307,403) | 0 |
Proceeds from sale of property and equipment | 123 | 514 |
Insurance proceeds - damaged property | 901 | 0 |
Acquisition of Protocol, cash consideration | (13,000) | |
Change in restricted cash and investments | (5,417) | (8,936) |
Capital expenditures | (71,694) | (41,122) |
Net cash used in investing activities | (407,892) | (62,544) |
Cash Flow from Financing Activities: | ||
Proceeds from long-term debt | 518,000 | 9,000 |
Payments on long-term debt | (134,744) | (17,179) |
Indirect repurchases of treasury shares | (1,416) | |
Payments on non-recourse debt | (4,513) | 0 |
Proceeds from non-recourse debt | 49,731 | 0 |
Taxes paid related to net share settlements of equity awards | (1,784) | (1,416) |
Proceeds from issuance of common stock in connection with ESPP | 218 | 185 |
Debt issuance costs | (2,438) | 0 |
Income tax benefit related to equity compensation | 651 | 1,351 |
Proceeds from the exercise of stock options | 2,037 | 5,531 |
Cash dividends paid | (92,254) | (82,656) |
Net cash provided by (used in) financing activities | 334,904 | (85,184) |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (1,103) | 819 |
Net increase (decrease) in Cash and Cash Equivalents | 5,707 | (14,765) |
Cash and Cash Equivalents, beginning of period | 41,337 | 52,125 |
Cash and Cash Equivalents, end of period | 47,044 | 37,360 |
The GEO Group, Inc. | ||
Cash Flow from Operating Activities: | ||
Net cash provided by operating activities | 39,103 | 76,863 |
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 | (97) | (207) |
Capital expenditures | (36,367) | (24,197) |
Net cash used in investing activities | (343,867) | (24,404) |
Cash Flow from Financing Activities: | ||
Proceeds from long-term debt | 518,000 | 9,000 |
Payments on long-term debt | (134,744) | (14,000) |
Indirect repurchases of treasury shares | (1,416) | |
Payments on non-recourse debt | 0 | |
Proceeds from non-recourse debt | 0 | |
Taxes paid related to net share settlements of equity awards | (1,784) | |
Proceeds from issuance of common stock in connection with ESPP | 218 | 185 |
Debt issuance costs | 0 | |
Income tax benefit related to equity compensation | 651 | 1,351 |
Proceeds from the exercise of stock options | 2,037 | 5,531 |
Cash dividends paid | (92,254) | (82,656) |
Net cash provided by (used in) financing activities | 292,124 | (82,005) |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 0 | 0 |
Net increase (decrease) in Cash and Cash Equivalents | (12,640) | (29,546) |
Cash and Cash Equivalents, beginning of period | 18,492 | 30,730 |
Cash and Cash Equivalents, end of period | 5,852 | 1,184 |
Combined Subsidiary Guarantors | ||
Cash Flow from Operating Activities: | ||
Net cash provided by operating activities | 62,486 | 33,090 |
Cash Flow from Investing Activities: | ||
Acquisition of SoberLink, cash consideration | (24,402) | |
Acquisition of LCS, net of cash acquired | 0 | |
Proceeds from sale of property and equipment | 123 | 514 |
Insurance proceeds - damaged property | 901 | |
Acquisition of Protocol, cash consideration | (13,000) | |
Change in restricted cash and investments | 2,396 | (1,917) |
Capital expenditures | (34,273) | (16,671) |
Net cash used in investing activities | (55,255) | (31,074) |
Cash Flow from Financing Activities: | ||
Proceeds from long-term debt | 0 | 0 |
Payments on long-term debt | 0 | (82) |
Indirect repurchases of treasury shares | 0 | |
Payments on non-recourse debt | 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 | (82) |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 0 | 0 |
Net increase (decrease) in Cash and Cash Equivalents | 7,231 | 1,934 |
Cash and Cash Equivalents, beginning of period | 782 | 985 |
Cash and Cash Equivalents, end of period | 8,013 | 2,919 |
Combined Non-Guarantor Subsidiaries | ||
Cash Flow from Operating Activities: | ||
Net cash provided by operating activities | (21,791) | 22,191 |
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 | (7,716) | (6,812) |
Capital expenditures | (1,054) | (254) |
Net cash used in investing activities | (8,770) | (7,066) |
Cash Flow from Financing Activities: | ||
Proceeds from long-term debt | 0 | 0 |
Payments on long-term debt | 0 | (3,097) |
Indirect repurchases of treasury shares | 0 | |
Payments on non-recourse debt | (4,513) | |
Proceeds from non-recourse debt | 49,731 | |
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 | (2,438) | |
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 | 42,780 | (3,097) |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (1,103) | 819 |
Net increase (decrease) in Cash and Cash Equivalents | 11,116 | 12,847 |
Cash and Cash Equivalents, beginning of period | 22,063 | 20,410 |
Cash and Cash Equivalents, end of period | 33,179 | $ 33,257 |
Consolidation, Eliminations [Member] | ||
Cash Flow from Financing Activities: | ||
Cash and Cash Equivalents, beginning of period | 0 | |
Cash and Cash Equivalents, end of period | $ 0 |
Condensed Consolidating Finan71
Condensed Consolidating Financial Information (Details Textual) | Jun. 30, 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 | 6.625% | 6.625% | |
Senior Notes | Senior Notes Due 2023 | |||
Debt Instrument [Line Items] | |||
Notes bear interest at a rate | 5.125% | ||
Senior Notes | 5.875% Senior Notes, Due 2022 | |||
Debt Instrument [Line Items] | |||
Notes bear interest at a rate | 5.875% | 5.875% |
Subsequent Events (Details)
Subsequent Events (Details) | Jul. 31, 2015$ / shares | Jun. 30, 2015bed | Jun. 01, 2015bed | Jun. 30, 2015bed$ / shares | Jun. 30, 2014$ / shares | Jun. 30, 2015bed$ / shares | Jun. 30, 2014$ / shares | Jul. 06, 2015facilitybed | Jul. 01, 2015bed |
Subsequent Event [Line Items] | |||||||||
Dividends declared per share | $ / shares | $ 0.62 | $ 0.57 | $ 1.24 | $ 1.14 | |||||
Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividends declared per share | $ / shares | $ 0.62 | ||||||||
Oklahoma, Michigan and California | Activation Of Facilities Contract | Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Number of company owned facilities | facility | 3 | ||||||||
Number of beds in a facility | 4,320 | ||||||||
Great Plains Correctional Facility | Intake Of Offenders | |||||||||
Subsequent Event [Line Items] | |||||||||
Contract term, operation of facility | 10 years | ||||||||
Great Plains Correctional Facility | OKLAHOMA | Intake Of Offenders | |||||||||
Subsequent Event [Line Items] | |||||||||
Number of beds in a facility | 1,940 | ||||||||
North Lake Correctional Facility | Intake Of Offenders | |||||||||
Subsequent Event [Line Items] | |||||||||
Number of beds in a facility | 1,740 | 1,740 | 1,740 | ||||||
Contract term, operation of facility | 5 years | ||||||||
Adelanto Detention Facility | Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Number of beds in a facility | 640 |
Uncategorized Items - geo-20150
Label | Element | Value |
Common Stock, Shares, Outstanding | us-gaap_CommonStockSharesOutstanding | 74,190,688 |
Common Stock, Shares, Outstanding | us-gaap_CommonStockSharesOutstanding | 74,656,384 |