Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 29, 2016 | |
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 | Mar. 31, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 74,993,445 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||
Revenues | $ 510,185 | $ 427,369 |
Operating expenses | 388,506 | 317,909 |
Depreciation and amortization | 28,451 | 24,940 |
General and administrative expenses | 34,061 | 31,848 |
Operating income | 59,167 | 52,672 |
Interest income | 4,557 | 2,073 |
Interest expense | (29,366) | (24,646) |
Income before income taxes and equity in earnings of affiliates | 34,358 | 30,099 |
Provision for income taxes | 3,151 | 2,828 |
Equity in earnings of affiliates, net of income tax provision of $471 and $613, respectively | 1,119 | 1,485 |
Net income | 32,326 | 28,756 |
Net loss attributable to noncontrolling interests | 24 | 21 |
Net income attributable to The GEO Group, Inc. | $ 32,350 | $ 28,777 |
Weighted-average common shares outstanding: | ||
Basic (in shares) | 73,875 | 73,549 |
Diluted (in shares) | 74,200 | 73,884 |
Basic: | ||
Income per common share attributable to The GEO Group, Inc. - basic (in dollars per share) | $ 0.44 | $ 0.39 |
Diluted: | ||
Income per common share attributable to The GEO Group, Inc. - diluted (in dollars per share) | 0.44 | 0.39 |
Dividends declared per share | $ 0.65 | $ 0.62 |
Consolidated Statements of Ope3
Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||
Income tax provision on equity in earnings of affiliates | $ 471 | $ 613 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||
Net income | $ 32,326 | $ 28,756 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustments | 1,513 | (1,681) |
Pension liability adjustment, net of tax provision of $21 and $21, respectively | 33 | 40 |
Unrealized loss on derivative instrument classified as cash flow hedge, net of tax benefit of $426 and $718, respectively | (2,444) | (4,080) |
Total other comprehensive loss, net of tax | (898) | (5,721) |
Total comprehensive income | 31,428 | 23,035 |
Comprehensive loss attributable to noncontrolling interests | 16 | 37 |
Comprehensive income attributable to The GEO Group, Inc. | $ 31,444 | $ 23,072 |
Consolidated Statements of Com5
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||
Tax provision on defined benefit pension plans | $ 21 | $ 21 |
Tax provision on loss on derivative instrument classified as a cash flow hedge | $ 426 | $ 718 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 23,225 | $ 59,638 |
Restricted cash and investments | 48,306 | 8,489 |
Accounts receivable, less allowance for doubtful accounts of $3,851 and $3,088, respectively | 341,596 | 314,097 |
Current deferred income tax assets | 0 | 27,914 |
Prepaid expenses and other current assets | 32,351 | 28,208 |
Total current assets | 445,478 | 438,346 |
Restricted Cash and Investments | 21,456 | 20,236 |
Property and Equipment, Net | 1,919,594 | 1,916,386 |
Contract Receivable | 230,927 | 174,141 |
Direct Finance Lease Receivable | 0 | 1,826 |
Non-Current Deferred Income Tax Assets | 24,154 | 7,399 |
Goodwill | 615,459 | 615,438 |
Intangible Assets, Net | 219,098 | 224,148 |
Other Non-Current Assets | 66,861 | 64,307 |
Total Assets | 3,543,027 | 3,462,227 |
Current Liabilities | ||
Accounts payable | 83,509 | 77,523 |
Accrued payroll and related taxes | 47,247 | 48,477 |
Accrued expenses and other current liabilities | 126,260 | 135,483 |
Current portion of capital lease obligations, long-term debt and non-recourse debt | 17,586 | 17,141 |
Total current liabilities | 274,602 | 278,624 |
Non-Current Deferred Income Tax Liabilities | 0 | 11,471 |
Other Non-Current Liabilities | 90,789 | 87,694 |
Capital Lease Obligations | 8,387 | 8,693 |
Long-Term Debt | 1,884,641 | 1,855,810 |
Non-Recourse Debt | $ 292,879 | $ 213,098 |
Commitments, Contingencies and Other (Note 10) | ||
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, 74,947,014 and 74,642,859 issued and outstanding, respectively | 750 | 747 |
Additional paid-in capital | 881,567 | 879,599 |
Earnings in excess of distributions | 142,639 | 158,796 |
Accumulated other comprehensive loss | (33,310) | (32,404) |
Total shareholders’ equity attributable to The GEO Group, Inc. | 991,646 | 1,006,738 |
Noncontrolling interests | 83 | 99 |
Total shareholders’ equity | 991,729 | 1,006,837 |
Total Liabilities and Shareholders’ Equity | $ 3,543,027 | $ 3,462,227 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 3,851 | $ 3,088 |
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 | 74,947,014 | 74,642,859 |
Common stock, shares outstanding | 74,947,014 | 74,642,859 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash Flow from Operating Activities: | ||
Net income | $ 32,326 | $ 28,756 |
Net loss attributable to noncontrolling interests | 24 | 21 |
Net income attributable to The GEO Group, Inc. | 32,350 | 28,777 |
Adjustments to reconcile net income attributable to The GEO Group, Inc. to net cash provided by operating activities: | ||
Depreciation and amortization expense | 28,451 | 24,940 |
Stock-based compensation | 3,241 | 2,621 |
Amortization of debt issuance costs, discount and/or premium and other non-cash interest | 2,366 | 1,695 |
Provision for doubtful accounts | 0 | 323 |
Equity in earnings of affiliates, net of tax | (1,119) | (1,485) |
Income tax deficiency (benefit) related to equity compensation | 818 | (569) |
Gain on sale/disposal of property and equipment | (326) | (545) |
Changes in assets and liabilities, net of effects of acquisitions: | ||
Changes in accounts receivable, prepaid expenses and other assets | (22,563) | 12,972 |
Changes in contract receivable | (46,956) | (24,768) |
Changes in accounts payable, accrued expenses and other liabilities | (13,789) | 16,784 |
Net cash (used in) provided by operating activities | (17,527) | 60,745 |
Cash Flow from Investing Activities: | ||
Acquisition of LCS, cash consideration | 0 | (307,403) |
Insurance proceeds - damaged property | 0 | 700 |
Proceeds from sale of property and equipment | 18 | 20 |
Change in restricted cash and investments | (41,037) | (8,108) |
Capital expenditures | (28,429) | (34,198) |
Net cash used in investing activities | (69,448) | (348,989) |
Cash Flow from Financing Activities: | ||
Proceeds from long-term debt | 117,000 | 371,000 |
Payments on long-term debt | (88,756) | (38,750) |
Payments on non-recourse debt | (1,613) | (1,645) |
Proceeds from non-recourse debt | 71,242 | 33,019 |
Taxes paid related to net share settlements of equity awards | (1,717) | (1,123) |
Proceeds from issuance of common stock in connection with ESPP | 2,357 | 98 |
Debt issuance costs | (1,505) | (1,245) |
Income tax deficiency (benefit) related to equity compensation | (818) | 569 |
Proceeds from the exercise of stock options | 979 | 1,215 |
Cash dividends paid | (48,509) | (45,977) |
Net cash provided by financing activities | 48,660 | 317,161 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 1,902 | (1,273) |
Net (Decrease) Increase in Cash and Cash Equivalents | (36,413) | 27,644 |
Cash and Cash Equivalents, beginning of period | 59,638 | 41,337 |
Cash and Cash Equivalents, end of period | 23,225 | 68,981 |
Non-cash Investing and Financing activities: | ||
Capital expenditures in accounts payable and accrued expenses | $ 2,340 | $ 1,346 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
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 and offers an expanded delivery of offender rehabilitation services under its 'GEO Continuum of Care' platform. 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 87,000 beds at 104 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 127,000 offenders and pre-trial defendants, including approximately 83,000 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 25, 2016 for the year ended December 31, 2015 . The accompanying December 31, 2015 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, 2015 . In the opinion of management, all adjustments (consisting only of normal recurring items) necessary for a fair presentation of the financial information for the interim periods reported in this Quarterly Report on Form 10-Q have been made. Results of operations for the three months ended March 31, 2016 are not necessarily indicative of the results for the entire year ending December 31, 2016 , or for any other future interim or annual periods. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2016 | |
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, 2015 to March 31, 2016 are as follows (in thousands): December 31, 2015 Foreign Currency Translation March 31, 2016 U.S. Corrections & Detention $ 277,774 $ — $ 277,774 GEO Care 337,257 — 337,257 International Services 407 21 428 Total Goodwill $ 615,438 $ 21 $ 615,459 The Company has also recorded other finite and indefinite-lived intangible assets as a result of its various business combinations. The Company's intangible assets include customer relationships, facility management contracts, trade names and technology, as follows (in thousands): March 31, 2016 December 31, 2015 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 $ 233,074 $ (75,460 ) $ 157,614 $ 233,041 $ (71,538 ) $ 161,503 Technology 7.3 33,700 (17,416 ) 16,284 33,700 (16,255 ) 17,445 Trade name (Indefinite lived) Indefinite 45,200 — 45,200 45,200 — 45,200 Total acquired intangible assets $ 311,974 $ (92,876 ) $ 219,098 $ 311,941 $ (87,793 ) $ 224,148 Amortization expense was $5.1 million for the three months ended March 31, 2016 , and $4.3 million for the three months ended March 31, 2015 , respectively. Amortization expense was primarily related to the U.S. Corrections & Detention and GEO Care segments' amortization of acquired facility management contracts. As of March 31, 2016 , 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. Estimated amortization expense related to the Company's finite-lived intangible assets for the remainder of 2016 through 2020 and thereafter is as follows (in thousands): Fiscal Year Total Amortization Expense Remainder of 2016 $ 15,233 2017 20,323 2018 17,463 2019 17,135 2020 17,135 Thereafter 86,609 $ 173,898 |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | |
Financial Instruments | FINANCIAL INSTRUMENTS The following tables provide a summary of the Company’s significant financial assets and liabilities carried at fair value and measured on a recurring basis as of March 31, 2016 and December 31, 2015 (in thousands): Fair Value Measurements at March 31, 2016 Carrying Value at March 31, 2016 Quoted Prices in Active Markets (Level 1) Significant Other Significant Unobservable Inputs (Level 3) Assets: Restricted investment: Rabbi Trust $ 14,664 $ — $ 14,664 $ — Fixed income securities 1,845 — 1,845 — Interest rate cap derivatives 47 — $ 47 — Liabilities: Interest rate swap derivatives $ 23,706 $ — $ 23,706 $ — Fair Value Measurements at December 31, 2015 Carrying Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Restricted investments: Rabbi Trust $ 13,071 $ — $ 13,071 $ — Fixed income securities 1,717 — 1,717 — Interest rate cap derivatives 93 — 93 — Liabilities: Interest rate swap derivatives $ 20,835 $ — $ 20,835 $ — The Company’s Level 2 financial instruments included in the tables above as of March 31, 2016 and December 31, 2015 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 | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | FAIR VALUE OF ASSETS AND LIABILITIES The Company’s consolidated balance sheets reflect certain financial assets and liabilities at carrying value. The carrying value of certain debt instruments, if applicable, is net of unamortized discount. The following tables present the carrying values of those financial instruments and the estimated corresponding fair values at March 31, 2016 and December 31, 2015 (in thousands): Estimated Fair Value Measurements at March 31, 2016 Carrying Value as of March 31, 2016 Total Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 23,225 $ 23,225 $ 23,225 $ — $ — Restricted cash and investments 48,306 48,306 43,691 4,615 — Liabilities: Borrowings under senior credit facility $ 805,750 $ 802,204 $ — $ 802,204 $ — 5.875% Senior Notes due 2024 250,000 253,438 — 253,438 — 5.125% Senior Notes 300,000 292,875 — 292,875 — 5.875% Senior Notes due 2022 250,000 258,125 — 258,125 — 6.625% Senior Notes 300,000 311,250 — 311,250 — Non-recourse debt, Australian subsidiary 320,811 323,534 — 323,534 — Other non-recourse debt, including current portion 7,855 7,821 — 7,821 — Estimated Fair Value Measurements at December 31, 2015 Carrying Value as of December 31, 2015 Total Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 59,638 $ 59,638 $ 59,638 $ — $ — Restricted cash and investments 15,654 15,654 11,536 4,118 — Liabilities: Borrowings under senior credit facility $ 777,500 $ 777,500 $ — $ 777,500 $ — 5.875% Senior Notes due 2024 250,000 245,783 — 245,783 — 5.125% Senior Notes 300,000 285,189 — 285,189 — 5.875% Senior Notes due 2022 250,000 248,125 — 248,125 — 6.625% Senior Notes 300,000 308,625 — 308,625 — Non-recourse debt, Australian subsidiary 204,539 204,531 — 204,531 — Other non-recourse debt, including current portion 42,592 43,353 — 43,353 — The fair values of the Company’s cash and cash equivalents, and restricted cash approximates the carrying values of these assets at March 31, 2016 and December 31, 2015 . Restricted cash consists of money market funds, bank deposits, commercial paper and time deposits used for payments on the Company’s non-recourse debt, asset replacement funds contractually required to be maintained at the Company's Australian subsidiary and contractual commitments related to the design and construction of a new facility in Ravenhall Australia. The fair value of the money market funds and bank deposits are 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 due 2022"), 5.875% senior unsecured notes due 2024 (" 5.875% Senior Notes due 2024"), 6.625% senior unsecured notes due 2021 (“ 6.625% Senior Notes”), and the 5.125% senior unsecured notes due 2023 (" 5.125% Senior Notes"), although not actively traded, are based on published financial data for these instruments. The fair values of the Company's non-recourse debt related to the Washington Economic Development Finance Authority ("WEDFA") is based on market prices for similar instruments. The fair value of the non-recourse debt related to the Company’s Australian subsidiary is estimated using a discounted cash flow model based on current Australian borrowing rates for similar instruments. The fair value of borrowings under the senior credit facility is based on an estimate of trading value considering the Company’s borrowing rate, the undrawn spread and similar instruments. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2016 | |
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, 2015 74,643 $ 747 $ 879,599 $ 158,796 $ (32,404 ) $ 99 $ 1,006,837 Proceeds from exercise of stock options 50 — 979 — — — 979 Tax deficiency related to equity compensation — — (818 ) — — — (818 ) Stock-based compensation expense — — 3,241 — — — 3,241 Restricted stock granted 344 3 (3 ) — — — — Restricted stock canceled (37 ) — — — — — — Dividends paid — — — (48,507 ) — — (48,507 ) Shares withheld for net settlements of share-based awards (57 ) — (1,717 ) — — — (1,717 ) Other adjustments to additional paid-in-capital — — 179 — — — 179 Issuance of common stock - ESPP 4 — 107 — — — 107 Net income (loss) — — — 32,350 — (24 ) 32,326 Other comprehensive (loss) income — — — — (906 ) 8 (898 ) Balance, March 31, 2016 74,947 $ 750 $ 881,567 $ 142,639 $ (33,310 ) $ 83 $ 991,729 During the three months ended March 31, 2016 , the Company withheld shares through net share settlements to satisfy minimum statutory tax withholding requirements upon vesting of shares of restricted stock held by employees. REIT Distributions As a REIT, GEO is required to distribute annually at least 90% of its REIT taxable income (determined without regard to the dividends paid deduction and by excluding net capital gain) and began paying regular quarterly REIT dividends in 2013. The amount, timing and frequency of future dividends, however, will be at the sole discretion of GEO's Board of Directors (the "Board”) and will be declared based upon various factors, many of which are beyond GEO's control, including, GEO's financial condition and operating cash flows, the amount required to maintain REIT status and reduce any income taxes that GEO otherwise would be required to pay, limitations on distributions in GEO's existing and future debt instruments, limitations on GEO's ability to fund distributions using cash generated through GEO's taxable REIT subsidiaries ("TRSs") and other factors that GEO's Board may deem relevant. During the three months ended March 31, 2016 and the year ended December 31, 2015, 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 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 July 31, 2015 August 14, 2015 August 24, 2015 $0.62 $46.3 November 3, 2015 November 16, 2015 November 25, 2015 $0.65 $48.5 February 3, 2016 February 16, 2016 February 26, 2016 $0.65 $48.5 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. There were no shares of the Company's common stock sold under the prospectus supplement during the year ended December 31, 2015 nor the three months ended March 31, 2016 . 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, 2015 nor the three months ended March 31, 2016. 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 (loss) is comprised of net income attributable to GEO, net income attributable to noncontrolling interests, foreign currency translation adjustments that arise from consolidating foreign operations that do not impact cash flows, net unrealized gains and/or losses on derivative instruments, and pension liability adjustments within shareholders' equity and comprehensive income (loss). The components of accumulated other comprehensive income (loss) attributable to GEO within shareholders' equity are as follows: Three Months Ended March 31, 2016 (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, 2015 $ (11,747 ) $ (17,697 ) $ (2,960 ) $ (32,404 ) Current-period other comprehensive (loss) income 1,505 (2,444 ) 33 (906 ) Balance, March 31, 2016 $ (10,242 ) $ (20,141 ) $ (2,927 ) $ (33,310 ) (1) The foreign currency translation related to noncontrolling interests was not significant at March 31, 2016 or December 31, 2015. |
Equity Incentive Plans
Equity Incentive Plans | 3 Months Ended |
Mar. 31, 2016 | |
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 three months ended March 31, 2016, the fair value was estimated using the following assumptions: (i) volatility of 25% ; (ii) expected term of 5.00 years; (iii) risk free interest rate of 1.45% ; and (iv) expected dividend yield of 8.85% . A summary of the activity of stock option awards issued and outstanding under Company plans is as follows for the three months ended March 31, 2016 : Shares Wtd. Avg. Exercise Price Wtd. Avg. Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) (in thousands) Options outstanding at December 31, 2015 749 $ 29.98 6.85 $ 3,057 Options granted 295 29.39 Options exercised (50 ) 19.57 Options forfeited/canceled/expired (22 ) 35.62 Options outstanding at March 31, 2016 972 $ 30.22 7.59 $ 6,226 Options vested and expected to vest at March 31, 2016 905 $ 29.98 7.47 $ 5,981 Options exercisable at March 31, 2016 521 $ 27.24 6.28 $ 4,644 During the three months ended March 31, 2016 , the Company granted approximately 295,000 options to certain employees which had a weighted-average grant-date fair value of $2.08 per share. For the three months ended March 31, 2016 and March 31, 2015 , the amount of stock-based compensation expense related to stock options was $0.2 million and $0.4 million , respectively. As of March 31, 2016 , the Company had $1.3 million of unrecognized compensation costs related to non-vested stock option awards that are expected to be recognized over a weighted average period of 3.1 years. Restricted Stock Compensation expense for nonvested stock awards is recorded over the vesting period based on the fair value at the date of grant. Generally, the restricted stock awards vest in equal increments over either a three or four -year period. The fair value of restricted stock awards, which do not contain a market-based vesting condition, is determined using the closing price of the Company's common stock on the date of grant. The Company has issued share-based awards with service-based, performance-based and market-based vesting criteria. A summary of the activity of restricted stock outstanding is as follows for the three months ended March 31, 2016 : Shares Wtd. Avg. Grant Date Fair Value (in thousands) Restricted stock outstanding at December 31, 2015 863 $ 39.74 Granted 344 30.51 Vested (191 ) 36.84 Forfeited/canceled (37 ) 40.70 Restricted stock outstanding at March 31, 2016 979 $ 35.99 During the three months ended March 31, 2016 , the Company granted approximately 344,000 shares of restricted stock to certain employees and executive officers. Of these awards, 115,000 are market and performance-based awards which will be forfeited if the Company does not achieve certain annual metrics during 2016, 2017 and 2018. 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 50% 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, over a three year period from January 1, 2016 to December 31, 2018 and (ii) up to 50% 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 over a three year period from January 1, 2016 to December 31, 2018. 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 the 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 23.5% ; (ii) beta of 1.04 ; and (iii) risk free rates of 1.08% . For the three months ended March 31, 2016 and March 31, 2015 , the Company recognized $3.0 million and $2.2 million , respectively, of compensation expense related to its restricted stock awards. As of March 31, 2016 , the Company had $29.1 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 2.8 years. Employee Stock Purchase Plan The Company previously adopted The GEO Group Inc. 2011 Employee Stock Purchase Plan (the “Plan”) which was approved by the Company's shareholders. The purpose of the Plan, which is qualified under Section 423 of the Internal Revenue Service Code of 1986, as amended, is to encourage stock ownership through payroll deductions by the employees of GEO and designated subsidiaries of GEO in order to increase their identification with the Company’s goals and secure a proprietary interest in the Company’s success. These deductions are used to purchase shares of the Company’s common stock at a 5% discount from the then current market price. The Company has made available up to 500,000 shares of its common stock, which were registered with the Securities and Exchange Commission on May 4, 2012, as amended on July 18, 2014, for sale to eligible employees under the Plan. The Plan is considered to be non-compensatory. As such, there is no compensation expense required to be recognized. Share purchases under the Plan are made on the last day of each month. During the three months ended March 31, 2016 , 3,683 shares of the Company's common stock were issued in connection with the Plan. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic earnings per common share is computed by dividing the net 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 earnings per share is similar to that of basic earnings per share except that the denominator includes dilutive common stock equivalents such as stock options and shares of restricted stock. Basic and diluted earnings per share were calculated for the three months ended March 31, 2016 and March 31, 2015 as follows (in thousands, except per share data): Three Months Ended March 31, 2016 March 31, 2015 Net income $ 32,326 $ 28,756 Net loss attributable to noncontrolling interests 24 21 Net income attributable to The GEO Group, Inc. 32,350 28,777 Basic earnings per share attributable to The GEO Group, Inc.: Weighted average shares outstanding 73,875 73,549 Per share amount $ 0.44 $ 0.39 Diluted earnings per share attributable to The GEO Group, Inc.: Weighted average shares outstanding 73,875 73,549 Dilutive effect of equity incentive plans 325 335 Weighted average shares assuming dilution 74,200 73,884 Per share amount $ 0.44 $ 0.39 Three Months For the three months ended March 31, 2016 , 453,104 weighted average shares of common stock underlying options were excluded from the computation of diluted earnings per share ("EPS") because the effect would be anti-dilutive. There were 336,379 common stock equivalents from restricted shares that were anti-dilutive. For the three months ended March 31, 2015 , 83,790 weighted average shares of common stock underlying options were excluded from the computation of diluted EPS because the effect would be anti-dilutive. There were no common stock equivalents from restricted shares that were anti-dilutive. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
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 three months ended March 31, 2016 and 2015 . The total fair value of the swap liability was not significant as of March 31, 2016 and December 31, 2015 , respectively, and is recorded as a component of other non-current liabilities 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 The Company’s Australian subsidiary has entered into interest rate swap agreements to fix the interest rate on its variable rate non-recourse debt related to a prison project in Ravenhall, a locality near Melbourne, Australia to 3.3% during the design and construction phase and 4.2% during the project's operating phase. The swaps' notional amounts coincide with construction draw fixed commitments throughout the project. At March 31, 2016 , the swaps had a notional value of approximately AUD 362.8 million , or $278.2 million , based on exchange rates at March 31, 2016 , related to the outstanding draws for the design and construction phase and approximately AUD 466.3 million , or $357.6 million , based on exchange rates at March 31, 2016 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 loss recorded in other comprehensive income, net of tax, related to this cash flow hedge was approximately $2.5 million during the three months ended March 31, 2016 . The total fair value of the swap liability as of March 31, 2016 was $23.6 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 $237.7 million , based on exchange rates at March 31, 2016 , towards a portion of the outstanding principal of the non-recourse debt. The Company's Australian subsidiary also entered into interest rate cap agreements in September 2014 giving the Company the option to cap the interest rate on its variable non-recourse debt related to the project in the event that the completion of the prison project is delayed which could delay the State's payment. The Company paid $1.7 million for the interest rate cap agreements. These instruments do not meet the requirements for hedge accounting, and therefore, changes in fair value of the interest rate caps are recorded in earnings. During the three months ended March 31, 2016 , 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 March 31, 2016 , the interest rate cap assets had a fair value of $0.1 million which is included in Other Non-Current Assets in the accompanying consolidated balance sheet. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Debt outstanding as of March 31, 2016 and December 31, 2015 consisted of the following (in thousands): March 31, 2016 December 31, 2015 Senior Credit Facility: Term loan $ 291,750 $ 292,500 Unamortized debt issuance costs on term loan (459 ) (486 ) Revolver 514,000 485,000 Total Senior Credit Facility $ 805,291 $ 777,014 5.875% Senior Notes Notes Due in 2024 250,000 250,000 Unamortized debt issuance costs (4,051 ) (4,140 ) Total 5.875% Senior Notes Due in 2024 245,949 245,860 5.125% Senior Notes: Notes due in 2023 300,000 300,000 Unamortized debt issuance costs (5,219 ) (5,358 ) Total 5.125% Senior Notes Due in 2023 294,781 294,642 5.875% Senior Notes Notes Due in 2022 250,000 250,000 Unamortized debt issuance costs (4,409 ) (4,564 ) Total 5.875% Senior Notes Due in 2022 245,591 245,436 6.625% Senior Notes: Notes due in 2021 300,000 300,000 Unamortized debt issuance costs (4,987 ) (5,198 ) Total 6.625% Senior Notes Due in 2021 295,013 294,802 Non-Recourse Debt : Non-Recourse Debt 329,176 247,679 Unamortized debt issuance costs on non-recourse debt (22,707 ) (21,369 ) Unamortized discount on non-recourse debt (510 ) (548 ) Total Non-Recourse Debt 305,959 225,762 Capital Lease Obligations 9,574 9,856 Other debt 1,335 1,370 Total debt 2,203,493 2,094,742 Current portion of capital lease obligations, long-term debt and non-recourse debt (17,586 ) (17,141 ) Capital Lease Obligations, long-term portion (8,387 ) (8,693 ) Non-Recourse Debt, long-term portion (292,879 ) (213,098 ) Long-Term Debt $ 1,884,641 $ 1,855,810 In April 2015, the Financial Accounting Standards Board ("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 as a direct reduction from the carrying amount of that debt liability, consistent with debt discounts. In accordance with ASU No. 2015-03, the Company adopted the new standard during the three months ended March 31, 2016 and has applied the new guidance on a retrospective basis. Refer to Note 13 - Recent Accounting Pronouncements. Credit Agreement On August 27, 2014, the Company executed a second amended and restated credit agreement by and among the Company and GEO Corrections Holdings, Inc., as borrowers, BNP Paribas, as Administrative Agent, and the lenders who are, or may from time to time become, a party thereto (the “Credit Agreement”). The Credit Agreement evidences a credit facility (the “Credit Facility”) consisting of a $296.3 million term loan (the “Term Loan”) bearing interest at LIBOR plus 2.50% (with a LIBOR floor of .75% ), and a $700.0 million revolving credit facility (the “Revolver”) initially bearing interest at LIBOR plus 2.25% (with no LIBOR floor) together with AUD 225.0 million available solely for the issuance of financial letters of credit and performance letters of credit, in each case denominated in Australian Dollars (the “Australian LC Facility”). At March 31, 2016 , 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. All of the obligations under the Credit Agreement are unconditionally guaranteed by certain domestic subsidiaries of the Company and the Credit Agreement and the related guarantees are secured by a perfected first-priority pledge of substantially all of the Company’s present and future tangible and intangible domestic assets and all present and future tangible and intangible domestic assets of each guarantor, including but not limited to a first-priority pledge of all of the outstanding capital stock owned by the Company and each guarantor in their domestic subsidiaries. As of March 31, 2016 , the Company had $291.8 million in aggregate borrowings outstanding under the Term Loan, $514.0 million in borrowings under the Revolver, and approximately $54.2 million in letters of credit which left $131.8 million in additional borrowing capacity under the Revolver. The weighted average interest rate on outstanding borrowings under the Credit Agreement as of March 31, 2016 was 2.9% . 6.625% Senior Notes On February 10, 2011, the Company completed a private offering of $300.0 million in aggregate principal amount of its 6.625% Senior Notes. Interest on the 6.625% Senior Notes accrues at the stated rate. The Company pays interest semi-annually in arrears on February 15 and August 15 of each year. On April 11, 2016, the Company announced the commencement of a cash tender offer for any and all of its outstanding 6.625% Senior Notes. Refer to Note 15 - Subsequent Events for further discussion. 5.875% Senior Notes due 2024 Interest on the 5.875% Senior Notes due 2024 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 due 2024 at the redemption prices set forth in the indenture governing the 5.875% Senior Notes due 2024. The indenture contains certain covenants, including limitations and restrictions on the Company and its subsidiary guarantors. Refer to Note 14-Condensed Consolidating Financial Information. 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 14-Condensed Consolidating Financial Information. 5.875% Senior Notes due 2022 Interest on the 5.875% Senior Notes due 2022 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 due 2022 at the redemption prices set forth in the indenture governing the 5.875% Senior Notes due 2022. The indenture contains certain covenants, including limitations and restrictions on the Company and its subsidiary guarantors. Refer to Note 14-Condensed Consolidating Financial Information. 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 WEDFA will mature in October 2021 with fixed coupon rates of 5.25% , is $42.6 million , of which $6.5 million is classified as current in the accompanying consolidated balance sheet as of March 31, 2016. The payment of principal and interest on the 2011 Revenue Bonds issued by WEDFA is non-recourse to GEO. As of March 31, 2016 , included in current restricted cash and investments and non-current restricted cash and investments is $7.3 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 of the Company totaled $7.9 million (AUD 10.2 million ) and $9.0 million (AUD 12.4 million ), based on the exchange rates in effect at March 31, 2016 and December 31, 2015 , respectively. The term of the non-recourse debt is through 2017 and it bears interest at a variable rate quoted by certain Australian banks plus 140 basis points . Any obligations or liabilities of the subsidiary are matched by a similar or corresponding commitment from the government of the State of Victoria. As a condition of the loan, the Company is required to maintain a restricted cash balance of AUD 5.0 million , which, based on exchange rates as of March 31, 2016 , 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 $606.5 million , based on exchange rates as of March 31, 2016 . 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. Upon completion of the prison, 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 $237.7 million , based on exchange rates as of March 31, 2016 , towards a portion of the outstanding principal. The remaining outstanding principal balance will be repaid over the term of the operating agreement. As of March 31, 2016 , $278.2 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 8 - 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 $164.9 million , based on exchange rates as of March 31, 2016 . These guarantees are secured by outstanding letters of credit under the Company's Revolver as of March 31, 2016 . At March 31, 2016 , the Company also had eleven other letters of credit outstanding under separate international facilities relating to performance guarantees of its Australian subsidiary totaling $16.3 million . South Africa In connection with the creation of South African Custodial Services Pty. Limited ("SACS"), the Company entered into certain guarantees related to the financing, construction and operation of the prison. As of March 31, 2016 , the Company guaranteed obligations amounting to 15.0 million South African Rand, or $1.0 million based on exchange rates as of March 31, 2016 . 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 15.0 million South African Rand is secured by outstanding letters of credit under the Company's Revolver as of March 31, 2016 . 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 $1.3 million based on exchange rates as of March 31, 2016 , 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. SACS' 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 1.5 million , or $1.2 million , based on exchange rates as of March 31, 2016 , commencing in 2017 . The liability related to this exposure is included in Other Non-Current Liabilities as of March 31, 2016 and December 31, 2015 , respectively. To secure this guarantee, the Company purchased Canadian Dollar denominated securities with maturities matched to the estimated tax obligations in 2017 to 2021. The Company has recorded an asset equal to the current fair value of those securities included in Other Non-Current Assets as of March 31, 2016 and December 31, 2015 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 £8.5 million , or $12.2 million , based on exchange rates as of March 31, 2016 , was outstanding as of March 31, 2016 . The Company's maximum exposure relative to the joint venture is its note receivable of $12.2 million , which is included in Other Non-Current Assets in the accompanying consolidated balance sheets, and future financial support necessary to guarantee performance under the contract. Except as discussed above, the Company does not have any off balance sheet arrangements. |
Commitments, Contingencies and
Commitments, Contingencies and Other | 3 Months Ended |
Mar. 31, 2016 | |
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. 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 $98.5 million of which $5.9 million was spent through the first three months of 2016. The Company estimates the remaining capital requirements related to these capital projects will be $92.6 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, which is estimated to be $84.0 million as of March 31, 2016 . 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 $606.5 million , based on exchange rates as of March 31, 2016 . Refer to Note 9 - Debt. Idle Facilities The Company is currently marketing approximately 3,300 vacant beds at four 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 $34.9 million as of March 31, 2016 , excluding equipment and other assets that can be easily transferred for use at other facilities. |
Business Segments and Geographi
Business Segments and Geographic Information | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 March 31, 2015 Revenues: U.S. Corrections & Detention $ 338,370 $ 285,609 GEO Care 93,414 79,356 International Services 37,555 40,654 Facility Construction & Design (1) 40,846 21,750 Total revenues $ 510,185 $ 427,369 Operating income: U.S. Corrections & Detention $ 66,919 $ 63,597 GEO Care 23,971 18,506 International Services 1,762 1,815 Facility Construction & Design (1) 576 602 Operating income from segments $ 93,228 $ 84,520 (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 8 - Derivative Financial Instruments and Note 9 - 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 March 31, 2016 March 31, 2015 Total operating income from segments $ 93,228 $ 84,520 Unallocated amounts: General and Administrative Expenses (34,061 ) (31,848 ) Net Interest Expense (24,809 ) (22,573 ) Income before income taxes and equity in earnings of affiliates $ 34,358 $ 30,099 Equity in Earnings of Affiliates Equity in earnings of affiliates includes the Company’s 50% owned joint ventures in SACS, located in South Africa, and GEOAmey, located in the United Kingdom. The Company's investments in these entities are accounted for under the equity method of accounting. The Company’s investments in these entities are presented as a component of Other Non-Current Assets in the accompanying consolidated balance sheets. The Company has recorded $0.9 million in earnings, net of tax, for SACS operations during the three months ended March 31, 2016 , and $1.1 million in earnings, net of tax, for SACS operations during the three months ended March 31, 2015 , respectively, which are included in equity in earnings of affiliates, net of income tax provision in the accompanying consolidated statements of operations. As of March 31, 2016 and December 31, 2015 , the Company’s investment in SACS was $9.9 million and $9.0 million , respectively. The Company has recorded $0.3 million and $0.4 million in earnings, net of tax, for GEOAmey's operations during the three months ended March 31, 2016 and 2015, respectively, net of income tax provision, in the accompanying consolidated statements of operations. As of March 31, 2016 and December 31, 2015 , the Company’s investment in GEOAmey was $(0.9) million and $(1.2) 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 9 - Debt. |
Benefit Plans
Benefit Plans | 3 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Benefit Plans | BENEFIT PLANS The following table summarizes key information related to the Company’s pension plans and retirement agreements (in thousands): Three Months Ended March 31, 2016 Year Ended December 2015 Change in Projected Benefit Obligation Projected benefit obligation, beginning of period $ 25,935 $ 25,826 Service cost 249 1,173 Interest cost 289 1,082 Actuarial gain — (1,818 ) Benefits paid (84 ) (328 ) Projected benefit obligation, end of period $ 26,389 $ 25,935 Change in Plan Assets Plan assets at fair value, beginning of period $ — $ — Company contributions 84 328 Benefits paid (84 ) (328 ) Plan assets at fair value, end of period $ — $ — Unfunded Status of the Plan $ (26,389 ) $ (25,935 ) Three Months Ended March 31, 2016 March 31, 2015 Components of Net Periodic Benefit Cost Service cost $ 249 $ 1,173 Interest cost 289 1,082 Net loss 53 427 Net periodic pension cost $ 591 $ 2,682 The long-term portion of the pension liability as of March 31, 2016 and December 31, 2015 was $26.1 million and $25.1 million , respectively, and is included in Other Non-Current Liabilities in the accompanying consolidated balance sheets. |
Recent Accounting Standards
Recent Accounting Standards | 3 Months Ended |
Mar. 31, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCMENTS The Company implemented the following accounting standards during the three months ended March 31, 2016: In April 2015, the FASB issued ASU No. 2015-03, "Interest-Imputation of Interest," which is intended to simplify the presentation of debt issuance costs. The amendments require that debt issuance costs related to a recognized debt liability be presented as a direct reduction from the carrying amount of that debt liability, consistent with debt discounts. The guidance in this update does not address presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements. Given the absence of authoritative guidance for debt issuance costs related to line-of-credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the debt issuance costs ratable over the term of the line-of-credit agreement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. In accordance with ASU No. 2015-03, the Company has applied the new guidance on a retrospective basis. As a result, the Company has reclassified debt issuance costs of $41.8 million and $41.1 million from Other Non-Current Assets to a direct reduction of Long-Term Debt and Non-Recourse Debt in the accompanying consolidated balance sheets at March 31, 2016 and December 31, 2015, respectively. In accordance with the SEC guidance discussed above, the Company continues to present debt issuance costs related to its Revolver as an asset which is included in Other Non-Current Assets. The implementation of this standard during the three months ended March 31, 2016 did not have a material impact on the Company's financial position, results of operations or cash flows. Refer to Note 9 - Debt. In November 2015, the FASB issued ASU No. 2015-17, "Income Taxes," which simplifies the presentation of deferred income taxes by requiring that all deferred income tax assets and liabilities be classified as noncurrent in a classified statement of financial position. ASU No. 2015-17 is effective for public companies for annual periods beginning after December 15, 2016, and interim periods within those annual periods with earlier application permitted. The Company early adopted this standard during the three months ended March 31, 2016 on a prospective basis. Adoption of this ASU resulted in a reclassification of the Company's net current deferred tax asset and net non-current deferred tax liability to the net non-current deferred tax asset in the accompanying consolidated balance sheet as of March 31, 2016. The prior reporting period was not retroactively adjusted. The implementation of this standard during the three months ended March 31, 2016 did not have a material impact on the Company's financial position, results of operations or cash flows. The following accounting standards will be adopted in future periods: In April 2016, the FASB issued ASU No. 2016-10, " Revenue from Contracts with Customers ," which clarifies the implementation guidance on identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. This amendment clarifies that before an entity can identify its performance obligations in a contract with a customer, the entity first identifies the promised goods or services in the contract. An entity is not required to assess whether promised goods or services are performance obligations if they are immaterial in the context of the contract with the customer. Also, an entity is permitted, as an accounting policy elections, to account for shipping and handling activities that occur after the customer has obtained control of a good as an activity to fulfill the promise to transfer the good rather than as an additional promised service. The amendment also includes implementation guidance on determining whether an entity's promise to grant a license provides a customer with either a right to use the entity's intellectual property (which is satisfied at a point in time) or a right to access the entity's intellectual property (which is satisfied over time). The amendments in ASU No. 2016-08 are effective for public companies for annual periods beginning after December 15, 2017. 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 March 2016, the FASB issued ASU No. 2016-09, "Compensation-Stock Compensation (Topic 718) , " as a part of its Simplification Initiative. Key areas of the amendments in this standard are (i) all excess tax benefits from stock plan transactions should be recognized in the income statement as opposed to being recognized in additional paid-in capital; (ii) the tax withholding threshold for triggering liability accounting on a net settlement transaction has been increased from the minimum statutory rate to the maximum statutory rate; and (iii) an entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures as they occur. The amendments in ASU No. 2016-09 are effective for public companies for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is 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. In March 2016, the FASB issued ASU No. 2016-08, " Revenue from Contracts with Customers - Principal versus Agent Considerations (Reporting Revenue Gross versus Net), " which clarifies the implementation guidance on principal versus agent considerations. This amendment clarifies that when another party is involved in providing goods or services to a customer, an entity is required to determine whether the nature of its promise is to provide the specified good or service itself (entity is a principal) or to arrange for that good or service to be provided by the other party (entity is an agent). When (or as) an entity that is a principal satisfies a performance obligation, the entity recognizes revenue in the gross amount of consideration it expects to be entitled in exchange for the specified good or service transferred to the customer. When (or as) an entity that is an agent satisfies a performance obligation, the entity recognizes revenue in the amount of any fee or commission to which it expects to be entitled in exchange for arranging the specified good or service to be provided by the other party. An entity is a principal if it controls the specified good or service before that good or service is transferred to the customer. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customer. The amendments in ASU No. 2016-08 are effective for public companies for annual periods beginning after December 15, 2017. 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 March 2016, FASB issued ASU 2016-07, " Investments-Equity Method and Joint Ventures ," as a part of its Simplification Initiative. The amendments in this standard eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by step basis as if the equity method had been in effect during all previous periods that the investment had been held. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor's previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. The amendments in ASU 2016-07 also require that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The amendments in this standard are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. Earlier application is 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. In March 2016, FASB issued ASU 2016-05, " Derivatives and Hedging, " which clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The amendments in ASU 2016-05 are effective for public companies for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. An entity has an option to apply the amendments in this standard on either a prospective basis or a modified retrospective basis, 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. In February 2016, FASB issued ASU 2016-02, " Leases ," which requires entities to recognize lease assets and lease liabilities on the balance sheet and to disclose key information about leasing arrangements. For finance leases and operating leases, a lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term with each initially measured at the present value of the lease payments. The amendments in ASU 2016-02 are effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. 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. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Financial Information | CONDENSED CONSOLIDATING FINANCIAL INFORMATION As of March 31, 2016, 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 March 31, 2016 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ 167,637 $ 400,342 $ 80,965 $ (138,759 ) $ 510,185 Operating expenses 137,910 319,904 69,451 (138,759 ) 388,506 Depreciation and amortization 6,262 21,233 956 — 28,451 General and administrative expenses 7,975 19,966 6,120 — 34,061 Operating income 15,490 39,239 4,438 — 59,167 Interest income 5,441 609 4,657 (6,150 ) 4,557 Interest expense (16,357 ) (13,944 ) (5,215 ) 6,150 (29,366 ) Income before income taxes and equity in earnings of affiliates 4,574 25,904 3,880 — 34,358 Income tax provision 10 2,191 950 — 3,151 Equity in earnings of affiliates, net of income tax provision — — 1,119 — 1,119 Income before equity in income of consolidated subsidiaries 4,564 23,713 4,049 — 32,326 Income from consolidated subsidiaries, net of income tax provision 27,763 — — (27,763 ) — Net income 32,327 23,713 4,049 (27,763 ) 32,326 Net loss attributable to noncontrolling interests — — 24 — 24 Net income attributable to The GEO Group, Inc. $ 32,327 $ 23,713 $ 4,073 $ (27,763 ) $ 32,350 Net income $ 32,327 $ 23,713 $ 4,049 $ (27,763 ) $ 32,326 Other comprehensive income (loss), net of tax — 33 (931 ) — (898 ) Total comprehensive income $ 32,327 $ 23,746 $ 3,118 $ (27,763 ) $ 31,428 Comprehensive income attributable to noncontrolling interests — — 16 — 16 Comprehensive income attributable to The GEO Group, Inc. $ 32,327 $ 23,746 $ 3,134 $ (27,763 ) $ 31,444 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (dollars in thousands) (unaudited) For the Three Months Ended March 31, 2015 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ 144,383 $ 339,887 $ 64,967 $ (121,868 ) $ 427,369 Operating expenses 116,225 268,781 54,771 (121,868 ) 317,909 Depreciation and amortization 6,203 17,697 1,040 — 24,940 General and administrative expenses 10,323 16,880 4,645 — 31,848 Operating income 11,632 36,529 4,511 — 52,672 Interest income 6,178 1,231 2,137 (7,473 ) 2,073 Interest expense (14,310 ) (14,636 ) (3,173 ) 7,473 (24,646 ) Income before income taxes and equity in earnings of affiliates 3,500 23,124 3,475 — 30,099 Income tax provision — 1,740 1,088 — 2,828 Equity in earnings of affiliates, net of income tax provision — — 1,485 — 1,485 Income before equity in income of consolidated subsidiaries 3,500 21,384 3,872 — 28,756 Income from consolidated subsidiaries, net of income tax provision 25,256 — — (25,256 ) — Net income 28,756 21,384 3,872 (25,256 ) 28,756 Net income attributable to noncontrolling interests — — 21 — 21 Net income attributable to The GEO Group, Inc. $ 28,756 $ 21,384 $ 3,893 $ (25,256 ) $ 28,777 Net income $ 28,756 $ 21,384 $ 3,872 $ (25,256 ) $ 28,756 Other comprehensive income (loss), net of tax — 40 (5,761 ) — (5,721 ) Total comprehensive income (loss) $ 28,756 $ 21,424 $ (1,889 ) $ (25,256 ) $ 23,035 Comprehensive income attributable to noncontrolling interests — — 37 — 37 Comprehensive income (loss) attributable to The GEO Group, Inc. $ 28,756 $ 21,424 $ (1,852 ) $ (25,256 ) $ 23,072 CONDENSED CONSOLIDATING BALANCE SHEET (dollars in thousands) (unaudited) As of March 31, 2016 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 11,558 $ — $ 11,667 $ — $ 23,225 Restricted cash and investments — — 48,306 — 48,306 Accounts receivable, less allowance for doubtful accounts 129,625 191,458 20,513 — 341,596 Current deferred income tax assets — — — — — Prepaid expenses and other current assets 1,518 22,380 9,713 (1,260 ) 32,351 Total current assets 142,701 213,838 90,199 (1,260 ) 445,478 Restricted Cash and Investments 138 17,342 3,976 — 21,456 Property and Equipment, Net 743,004 1,095,108 81,482 — 1,919,594 Contract Receivable — — 230,927 — 230,927 Intercompany Receivable 971,827 52,704 3,123 (1,027,654 ) — Non-Current Deferred Income Tax Assets 713 11,898 11,543 — 24,154 Goodwill 79 614,941 439 — 615,459 Intangible Assets, Net — 218,354 744 — 219,098 Investment in Subsidiaries 1,110,983 453,595 2,190 (1,566,768 ) — Other Non-Current Assets 1,746 119,148 26,034 (80,067 ) 66,861 Total Assets $ 2,971,191 $ 2,796,928 $ 450,657 $ (2,675,749 ) $ 3,543,027 LIABILITIES AND SHAREHOLDERS’ EQUITY Accounts payable $ 6,549 $ 59,866 $ 17,094 $ — $ 83,509 Accrued payroll and related taxes — 32,311 14,936 — 47,247 Accrued expenses and other 38,226 77,020 12,274 (1,260 ) 126,260 Current portion of capital lease obligations, long-term debt and non-recourse debt 3,000 1,507 13,079 — 17,586 Total current liabilities 47,775 170,704 57,383 (1,260 ) 274,602 Non-Current Deferred Income Tax Liabilities — — — — — Intercompany Payable 42,792 972,513 12,349 (1,027,654 ) — Other Non-Current Liabilities 4,335 143,048 23,473 (80,067 ) 90,789 Capital Lease Obligations — 8,387 — — 8,387 Long-Term Debt 1,884,641 — — — 1,884,641 Non-Recourse Debt — — 292,879 — 292,879 Commitments & Contingencies and Other Shareholders' Equity: The GEO Group, Inc. Shareholders' Equity 991,648 1,502,276 64,490 (1,566,768 ) 991,646 Noncontrolling Interests — — 83 — 83 Total Shareholders’ Equity 991,648 1,502,276 64,573 (1,566,768 ) 991,729 Total Liabilities and Shareholders' Equity $ 2,971,191 $ 2,796,928 $ 450,657 $ (2,675,749 ) $ 3,543,027 CONDENSED CONSOLIDATING BALANCE SHEET (dollars in thousands) As of December 31, 2015 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 37,077 $ — $ 22,561 $ — $ 59,638 Restricted cash and investments — — 8,489 — 8,489 Accounts receivable, less allowance for doubtful accounts 131,747 162,538 19,812 — 314,097 Current deferred income tax assets — 23,120 4,794 — 27,914 Prepaid expenses and other current assets 1,190 17,917 10,310 (1,209 ) 28,208 Total current assets 170,014 203,575 65,966 (1,209 ) 438,346 Restricted Cash and Investments 138 16,386 3,712 — 20,236 Property and Equipment, Net 746,478 1,088,417 81,491 — 1,916,386 Direct Finance Lease Receivable — — 1,826 — 1,826 Contract Receivable — — 174,141 174,141 Intercompany Receivable 971,291 86,519 — (1,057,810 ) — Non-Current Deferred Income Tax Assets 710 (102 ) 6,791 — 7,399 Goodwill 79 614,941 418 — 615,438 Intangible Assets, Net — 223,426 722 — 224,148 Investment in Subsidiaries 1,106,546 453,636 — (1,560,182 ) — Other Non-Current Assets 2,387 116,561 25,486 (80,127 ) 64,307 Total Assets $ 2,997,643 $ 2,803,359 $ 360,553 $ (2,699,328 ) $ 3,462,227 LIABILITIES AND SHAREHOLDERS’ EQUITY Accounts payable $ 9,731 $ 54,675 $ 13,117 $ — $ 77,523 Accrued payroll and related taxes — 35,516 12,961 — 48,477 Accrued expenses and other 43,043 78,510 15,139 (1,209 ) 135,483 Current portion of capital lease obligations, long-term debt and non-recourse debt 3,000 1,477 12,664 — 17,141 Total current liabilities 55,774 170,178 53,881 (1,209 ) 278,624 Non-Current Deferred Income Tax Liabilities 11,120 351 — 11,471 Intercompany Payable 76,427 967,048 14,335 (1,057,810 ) — Other Non-Current Liabilities 2,894 143,887 21,040 (80,127 ) 87,694 Capital Lease Obligations — 8,693 — — 8,693 Long-Term Debt 1,855,810 — — — 1,855,810 Non-Recourse Debt — — 213,098 — 213,098 Commitments & Contingencies and Other Shareholders' Equity: The GEO Group, Inc. Shareholders' Equity 1,006,738 1,502,433 57,749 (1,560,182 ) 1,006,738 Noncontrolling Interests — — 99 — 99 Total Shareholders’ Equity 1,006,738 1,502,433 57,848 (1,560,182 ) 1,006,837 Total Liabilities and Shareholders' Equity $ 2,997,643 $ 2,803,359 $ 360,553 $ (2,699,328 ) $ 3,462,227 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (dollars in thousands) (unaudited) For the Three Months Ended March 31, 2016 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Consolidated Cash Flow from Operating Activities: Net cash (used in) provided by operating activities $ (221 ) $ 25,317 $ (42,623 ) $ (17,527 ) Cash Flow from Investing Activities: Proceeds from sale of property and equipment — 18 — 18 Change in restricted cash and investments 90 (956 ) (40,171 ) (41,037 ) Capital expenditures (3,567 ) (24,379 ) (483 ) (28,429 ) Net cash used in investing activities (3,477 ) (25,317 ) (40,654 ) (69,448 ) Cash Flow from Financing Activities: Proceeds from long-term debt 117,000 — — 117,000 Payments on long-term debt (88,756 ) — — (88,756 ) Payments on non-recourse debt — — (1,613 ) (1,613 ) Proceeds from non-recourse debt — — 71,242 71,242 Taxes paid related to net share settlements of equity awards (1,717 ) — — (1,717 ) Proceeds from issuance of common stock in connection with ESPP — — 2,357 2,357 Debt issuance costs — — (1,505 ) (1,505 ) Tax deficiency related to equity compensation (818 ) — — (818 ) Proceeds from stock options exercised 979 — — 979 Cash dividends paid (48,509 ) — — (48,509 ) Net cash (used in) provided by financing activities (21,821 ) — 70,481 48,660 Effect of Exchange Rate Changes on Cash and Cash Equivalents — — 1,902 1,902 Net Decrease in Cash and Cash Equivalents (25,519 ) — (10,894 ) (36,413 ) Cash and Cash Equivalents, beginning of period 37,077 — 22,561 59,638 Cash and Cash Equivalents, end of period $ 11,558 $ — $ 11,667 $ 23,225 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (dollars in thousands) (unaudited) For the Three Months Ended March 31, 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 $ 35,300 $ 30,416 $ (4,971 ) $ 60,745 Cash Flow from Investing Activities: Proceeds from sale of property and equipment — 20 — 20 Insurance proceeds - damages property — 700 — 700 Acquisition of LCS, net of cash acquired (307,403 ) — (307,403 ) Change in restricted cash and investments 102 (6,443 ) (1,767 ) (8,108 ) Capital expenditures (20,561 ) (13,042 ) (595 ) (34,198 ) Net cash used in investing activities (327,862 ) (18,765 ) (2,362 ) (348,989 ) Cash Flow from Financing Activities: Taxes paid related to net share settlements of equity awards (1,123 ) — — (1,123 ) Proceeds from long-term debt 371,000 — — 371,000 Payments on long-term debt (38,750 ) — (38,750 ) Payments on non-recourse debt — — (1,645 ) (1,645 ) Proceeds from non-recourse debt — — 33,019 33,019 Proceeds from reissuance of treasury stock in connection with ESPP 98 — — 98 Debt issuance costs — (1,245 ) (1,245 ) Tax benefit related to equity compensation 569 — — 569 Proceeds from stock options exercised 1,215 — — 1,215 Cash dividends paid (45,977 ) — — (45,977 ) Net cash provided by financing activities 287,032 — 30,129 317,161 Effect of Exchange Rate Changes on Cash and Cash Equivalents — — (1,273 ) (1,273 ) Net Increase (Decrease) in Cash and Cash Equivalents (5,530 ) 11,651 21,523 27,644 Cash and Cash Equivalents, beginning of period 18,492 782 22,063 41,337 Cash and Cash Equivalents, end of period $ 12,962 $ 12,433 $ 43,586 $ 68,981 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Dividend On April 20, 2016, the Board of Directors declared a quarterly cash dividend of $0.65 per share of common stock, which is to be paid on May 12, 2016 to shareholders of record as of the close of business on May 2, 2016. 6.00% Senior Notes On April 18, 2016, the Company completed an offering of $350 million aggregate principal amount of 6.00% senior notes due 2026 (the "6.00% Senior Notes"). The 6.00% Senior Notes were offered and sold in a registered offering pursuant to an underwriting agreement, dated as of April 11, 2016 (the “Underwriting Agreement”) among the Company, certain of the Company’s domestic subsidiaries, as guarantors and Wells Fargo Securities, LLC, as representative for the underwriters named therein. The 6.00% Senior Notes were issued by the Company pursuant to the Indenture, dated as of September 25, 2014 (the “Base Indenture”), by and between the Company and Wells Fargo Bank, National Association, as trustee, as supplemented by a Second Supplemental Indenture, dated as of April 18, 2016 (the “Second Supplemental Indenture” and together with the Base Indenture, the “Indenture”), by and among the Company, the guarantors and the trustee which governs the terms of the 6.00% Senior Notes. The sale of the 6.00% Senior Notes was registered under GEO’s existing shelf registration statement on Form S-3 filed on September 12, 2014, as amended (File No. 333-198729). The 6.00% Senior Notes were issued at a coupon rate and yield to maturity of 6.00%. Interest on the 6.00% Senior Notes will be payable semi-annually on April 15 and October 15 of each year, commencing on October 15, 2016. The 6.00% Senior Notes mature on April 15, 2026. The Company used part of the net proceeds to fund the tender offer or the repurchase, redemption or other discharge of any and all of its 6.625% Senior Notes (see discussion below), to pay all related fees, costs and expenses and for general corporate purposes including repaying borrowings under the Company's Revolver. Loan costs of approximately $7 million were incurred and capitalized in connection with the offering in the second quarter of 2016. Tender Offer On April 11, 2016, the Company announced that it had commenced a cash tender offer for any and all of its $300 million aggregate principal amount of its 6.625% Senior Notes due 2021 on the terms and subject to the conditions set forth in the Offer to Purchase, the Letter of Transmittal and the Notice of Guaranteed Delivery. On April 15, 2016, the tender offer expired. On April 18, 2016, the Company completed the purchase of approximately $231 million in aggregate principal amount of its 6.625% Senior Notes validly tendered in connection with the Company's tender offer on or prior to the expiration time. In May 2016, the Company expects to complete the redemption of the remaining 6.625% Senior Notes in connection with the terms of the notice of redemption delivered to the note holders on April 20, 2016 pursuant to the terms of the indenture governing the 6.625% Senior Notes. The Company financed the purchase of the 6.625% Senior Notes under the tender offer with part of the net cash proceeds from the 6.00% Senior Notes (see discussion above). As a result of the tender offer and anticipated redemption, the Company incurred an approximate $16 million loss on extinguishment related to the tender premium and deferred costs associated with the 6.625% Senior Notes in the second quarter of 2016. |
Goodwill and Other Intangible24
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | Changes in the Company's goodwill balances from December 31, 2015 to March 31, 2016 are as follows (in thousands): December 31, 2015 Foreign Currency Translation March 31, 2016 U.S. Corrections & Detention $ 277,774 $ — $ 277,774 GEO Care 337,257 — 337,257 International Services 407 21 428 Total Goodwill $ 615,438 $ 21 $ 615,459 |
Schedule of intangible assets | The Company's intangible assets include customer relationships, facility management contracts, trade names and technology, as follows (in thousands): March 31, 2016 December 31, 2015 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 $ 233,074 $ (75,460 ) $ 157,614 $ 233,041 $ (71,538 ) $ 161,503 Technology 7.3 33,700 (17,416 ) 16,284 33,700 (16,255 ) 17,445 Trade name (Indefinite lived) Indefinite 45,200 — 45,200 45,200 — 45,200 Total acquired intangible assets $ 311,974 $ (92,876 ) $ 219,098 $ 311,941 $ (87,793 ) $ 224,148 |
Estimated amortization expense for the remainder | Estimated amortization expense related to the Company's finite-lived intangible assets for the remainder of 2016 through 2020 and thereafter is as follows (in thousands): Fiscal Year Total Amortization Expense Remainder of 2016 $ 15,233 2017 20,323 2018 17,463 2019 17,135 2020 17,135 Thereafter 86,609 $ 173,898 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | |
Fair value assets and liabilities measured on recurring basis | The following tables provide a summary of the Company’s significant financial assets and liabilities carried at fair value and measured on a recurring basis as of March 31, 2016 and December 31, 2015 (in thousands): Fair Value Measurements at March 31, 2016 Carrying Value at March 31, 2016 Quoted Prices in Active Markets (Level 1) Significant Other Significant Unobservable Inputs (Level 3) Assets: Restricted investment: Rabbi Trust $ 14,664 $ — $ 14,664 $ — Fixed income securities 1,845 — 1,845 — Interest rate cap derivatives 47 — $ 47 — Liabilities: Interest rate swap derivatives $ 23,706 $ — $ 23,706 $ — Fair Value Measurements at December 31, 2015 Carrying Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Restricted investments: Rabbi Trust $ 13,071 $ — $ 13,071 $ — Fixed income securities 1,717 — 1,717 — Interest rate cap derivatives 93 — 93 — Liabilities: Interest rate swap derivatives $ 20,835 $ — $ 20,835 $ — |
Fair Value of Assets and Liab26
Fair Value of Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Carrying value and estimated fair value of financial instruments | The following tables present the carrying values of those financial instruments and the estimated corresponding fair values at March 31, 2016 and December 31, 2015 (in thousands): Estimated Fair Value Measurements at March 31, 2016 Carrying Value as of March 31, 2016 Total Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 23,225 $ 23,225 $ 23,225 $ — $ — Restricted cash and investments 48,306 48,306 43,691 4,615 — Liabilities: Borrowings under senior credit facility $ 805,750 $ 802,204 $ — $ 802,204 $ — 5.875% Senior Notes due 2024 250,000 253,438 — 253,438 — 5.125% Senior Notes 300,000 292,875 — 292,875 — 5.875% Senior Notes due 2022 250,000 258,125 — 258,125 — 6.625% Senior Notes 300,000 311,250 — 311,250 — Non-recourse debt, Australian subsidiary 320,811 323,534 — 323,534 — Other non-recourse debt, including current portion 7,855 7,821 — 7,821 — Estimated Fair Value Measurements at December 31, 2015 Carrying Value as of December 31, 2015 Total Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 59,638 $ 59,638 $ 59,638 $ — $ — Restricted cash and investments 15,654 15,654 11,536 4,118 — Liabilities: Borrowings under senior credit facility $ 777,500 $ 777,500 $ — $ 777,500 $ — 5.875% Senior Notes due 2024 250,000 245,783 — 245,783 — 5.125% Senior Notes 300,000 285,189 — 285,189 — 5.875% Senior Notes due 2022 250,000 248,125 — 248,125 — 6.625% Senior Notes 300,000 308,625 — 308,625 — Non-recourse debt, Australian subsidiary 204,539 204,531 — 204,531 — Other non-recourse debt, including current portion 42,592 43,353 — 43,353 — |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2015 74,643 $ 747 $ 879,599 $ 158,796 $ (32,404 ) $ 99 $ 1,006,837 Proceeds from exercise of stock options 50 — 979 — — — 979 Tax deficiency related to equity compensation — — (818 ) — — — (818 ) Stock-based compensation expense — — 3,241 — — — 3,241 Restricted stock granted 344 3 (3 ) — — — — Restricted stock canceled (37 ) — — — — — — Dividends paid — — — (48,507 ) — — (48,507 ) Shares withheld for net settlements of share-based awards (57 ) — (1,717 ) — — — (1,717 ) Other adjustments to additional paid-in-capital — — 179 — — — 179 Issuance of common stock - ESPP 4 — 107 — — — 107 Net income (loss) — — — 32,350 — (24 ) 32,326 Other comprehensive (loss) income — — — — (906 ) 8 (898 ) Balance, March 31, 2016 74,947 $ 750 $ 881,567 $ 142,639 $ (33,310 ) $ 83 $ 991,729 |
Dividends declared | During the three months ended March 31, 2016 and the year ended December 31, 2015, 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 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 July 31, 2015 August 14, 2015 August 24, 2015 $0.62 $46.3 November 3, 2015 November 16, 2015 November 25, 2015 $0.65 $48.5 February 3, 2016 February 16, 2016 February 26, 2016 $0.65 $48.5 |
Schedule of accumulated other comprehensive income (loss) | The components of accumulated other comprehensive income (loss) attributable to GEO within shareholders' equity are as follows: Three Months Ended March 31, 2016 (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, 2015 $ (11,747 ) $ (17,697 ) $ (2,960 ) $ (32,404 ) Current-period other comprehensive (loss) income 1,505 (2,444 ) 33 (906 ) Balance, March 31, 2016 $ (10,242 ) $ (20,141 ) $ (2,927 ) $ (33,310 ) (1) The foreign currency translation related to noncontrolling interests was not significant at March 31, 2016 or December 31, 2015. |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of the activity of stock option awards | A summary of the activity of stock option awards issued and outstanding under Company plans is as follows for the three months ended March 31, 2016 : Shares Wtd. Avg. Exercise Price Wtd. Avg. Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) (in thousands) Options outstanding at December 31, 2015 749 $ 29.98 6.85 $ 3,057 Options granted 295 29.39 Options exercised (50 ) 19.57 Options forfeited/canceled/expired (22 ) 35.62 Options outstanding at March 31, 2016 972 $ 30.22 7.59 $ 6,226 Options vested and expected to vest at March 31, 2016 905 $ 29.98 7.47 $ 5,981 Options exercisable at March 31, 2016 521 $ 27.24 6.28 $ 4,644 |
Summary of the activity of restricted stock | A summary of the activity of restricted stock outstanding is as follows for the three months ended March 31, 2016 : Shares Wtd. Avg. Grant Date Fair Value (in thousands) Restricted stock outstanding at December 31, 2015 863 $ 39.74 Granted 344 30.51 Vested (191 ) 36.84 Forfeited/canceled (37 ) 40.70 Restricted stock outstanding at March 31, 2016 979 $ 35.99 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Basic and diluted earnings per share | Basic and diluted earnings per share were calculated for the three months ended March 31, 2016 and March 31, 2015 as follows (in thousands, except per share data): Three Months Ended March 31, 2016 March 31, 2015 Net income $ 32,326 $ 28,756 Net loss attributable to noncontrolling interests 24 21 Net income attributable to The GEO Group, Inc. 32,350 28,777 Basic earnings per share attributable to The GEO Group, Inc.: Weighted average shares outstanding 73,875 73,549 Per share amount $ 0.44 $ 0.39 Diluted earnings per share attributable to The GEO Group, Inc.: Weighted average shares outstanding 73,875 73,549 Dilutive effect of equity incentive plans 325 335 Weighted average shares assuming dilution 74,200 73,884 Per share amount $ 0.44 $ 0.39 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Debt | Debt outstanding as of March 31, 2016 and December 31, 2015 consisted of the following (in thousands): March 31, 2016 December 31, 2015 Senior Credit Facility: Term loan $ 291,750 $ 292,500 Unamortized debt issuance costs on term loan (459 ) (486 ) Revolver 514,000 485,000 Total Senior Credit Facility $ 805,291 $ 777,014 5.875% Senior Notes Notes Due in 2024 250,000 250,000 Unamortized debt issuance costs (4,051 ) (4,140 ) Total 5.875% Senior Notes Due in 2024 245,949 245,860 5.125% Senior Notes: Notes due in 2023 300,000 300,000 Unamortized debt issuance costs (5,219 ) (5,358 ) Total 5.125% Senior Notes Due in 2023 294,781 294,642 5.875% Senior Notes Notes Due in 2022 250,000 250,000 Unamortized debt issuance costs (4,409 ) (4,564 ) Total 5.875% Senior Notes Due in 2022 245,591 245,436 6.625% Senior Notes: Notes due in 2021 300,000 300,000 Unamortized debt issuance costs (4,987 ) (5,198 ) Total 6.625% Senior Notes Due in 2021 295,013 294,802 Non-Recourse Debt : Non-Recourse Debt 329,176 247,679 Unamortized debt issuance costs on non-recourse debt (22,707 ) (21,369 ) Unamortized discount on non-recourse debt (510 ) (548 ) Total Non-Recourse Debt 305,959 225,762 Capital Lease Obligations 9,574 9,856 Other debt 1,335 1,370 Total debt 2,203,493 2,094,742 Current portion of capital lease obligations, long-term debt and non-recourse debt (17,586 ) (17,141 ) Capital Lease Obligations, long-term portion (8,387 ) (8,693 ) Non-Recourse Debt, long-term portion (292,879 ) (213,098 ) Long-Term Debt $ 1,884,641 $ 1,855,810 |
Business Segments and Geograp31
Business Segments and Geographic Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 March 31, 2015 Revenues: U.S. Corrections & Detention $ 338,370 $ 285,609 GEO Care 93,414 79,356 International Services 37,555 40,654 Facility Construction & Design (1) 40,846 21,750 Total revenues $ 510,185 $ 427,369 Operating income: U.S. Corrections & Detention $ 66,919 $ 63,597 GEO Care 23,971 18,506 International Services 1,762 1,815 Facility Construction & Design (1) 576 602 Operating income from segments $ 93,228 $ 84,520 (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 8 - Derivative Financial Instruments and Note 9 - 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 March 31, 2016 March 31, 2015 Total operating income from segments $ 93,228 $ 84,520 Unallocated amounts: General and Administrative Expenses (34,061 ) (31,848 ) Net Interest Expense (24,809 ) (22,573 ) Income before income taxes and equity in earnings of affiliates $ 34,358 $ 30,099 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Company Plan Benefit Expense | The following table summarizes key information related to the Company’s pension plans and retirement agreements (in thousands): Three Months Ended March 31, 2016 Year Ended December 2015 Change in Projected Benefit Obligation Projected benefit obligation, beginning of period $ 25,935 $ 25,826 Service cost 249 1,173 Interest cost 289 1,082 Actuarial gain — (1,818 ) Benefits paid (84 ) (328 ) Projected benefit obligation, end of period $ 26,389 $ 25,935 Change in Plan Assets Plan assets at fair value, beginning of period $ — $ — Company contributions 84 328 Benefits paid (84 ) (328 ) Plan assets at fair value, end of period $ — $ — Unfunded Status of the Plan $ (26,389 ) $ (25,935 ) |
Components of Net Periodic Benefit Cost | Three Months Ended March 31, 2016 March 31, 2015 Components of Net Periodic Benefit Cost Service cost $ 249 $ 1,173 Interest cost 289 1,082 Net loss 53 427 Net periodic pension cost $ 591 $ 2,682 |
Condensed Consolidating Finan33
Condensed Consolidating Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ 167,637 $ 400,342 $ 80,965 $ (138,759 ) $ 510,185 Operating expenses 137,910 319,904 69,451 (138,759 ) 388,506 Depreciation and amortization 6,262 21,233 956 — 28,451 General and administrative expenses 7,975 19,966 6,120 — 34,061 Operating income 15,490 39,239 4,438 — 59,167 Interest income 5,441 609 4,657 (6,150 ) 4,557 Interest expense (16,357 ) (13,944 ) (5,215 ) 6,150 (29,366 ) Income before income taxes and equity in earnings of affiliates 4,574 25,904 3,880 — 34,358 Income tax provision 10 2,191 950 — 3,151 Equity in earnings of affiliates, net of income tax provision — — 1,119 — 1,119 Income before equity in income of consolidated subsidiaries 4,564 23,713 4,049 — 32,326 Income from consolidated subsidiaries, net of income tax provision 27,763 — — (27,763 ) — Net income 32,327 23,713 4,049 (27,763 ) 32,326 Net loss attributable to noncontrolling interests — — 24 — 24 Net income attributable to The GEO Group, Inc. $ 32,327 $ 23,713 $ 4,073 $ (27,763 ) $ 32,350 Net income $ 32,327 $ 23,713 $ 4,049 $ (27,763 ) $ 32,326 Other comprehensive income (loss), net of tax — 33 (931 ) — (898 ) Total comprehensive income $ 32,327 $ 23,746 $ 3,118 $ (27,763 ) $ 31,428 Comprehensive income attributable to noncontrolling interests — — 16 — 16 Comprehensive income attributable to The GEO Group, Inc. $ 32,327 $ 23,746 $ 3,134 $ (27,763 ) $ 31,444 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (dollars in thousands) (unaudited) For the Three Months Ended March 31, 2015 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ 144,383 $ 339,887 $ 64,967 $ (121,868 ) $ 427,369 Operating expenses 116,225 268,781 54,771 (121,868 ) 317,909 Depreciation and amortization 6,203 17,697 1,040 — 24,940 General and administrative expenses 10,323 16,880 4,645 — 31,848 Operating income 11,632 36,529 4,511 — 52,672 Interest income 6,178 1,231 2,137 (7,473 ) 2,073 Interest expense (14,310 ) (14,636 ) (3,173 ) 7,473 (24,646 ) Income before income taxes and equity in earnings of affiliates 3,500 23,124 3,475 — 30,099 Income tax provision — 1,740 1,088 — 2,828 Equity in earnings of affiliates, net of income tax provision — — 1,485 — 1,485 Income before equity in income of consolidated subsidiaries 3,500 21,384 3,872 — 28,756 Income from consolidated subsidiaries, net of income tax provision 25,256 — — (25,256 ) — Net income 28,756 21,384 3,872 (25,256 ) 28,756 Net income attributable to noncontrolling interests — — 21 — 21 Net income attributable to The GEO Group, Inc. $ 28,756 $ 21,384 $ 3,893 $ (25,256 ) $ 28,777 Net income $ 28,756 $ 21,384 $ 3,872 $ (25,256 ) $ 28,756 Other comprehensive income (loss), net of tax — 40 (5,761 ) — (5,721 ) Total comprehensive income (loss) $ 28,756 $ 21,424 $ (1,889 ) $ (25,256 ) $ 23,035 Comprehensive income attributable to noncontrolling interests — — 37 — 37 Comprehensive income (loss) attributable to The GEO Group, Inc. $ 28,756 $ 21,424 $ (1,852 ) $ (25,256 ) $ 23,072 |
CONDENSED CONSOLIDATING BALANCE SHEET | As of March 31, 2016 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 11,558 $ — $ 11,667 $ — $ 23,225 Restricted cash and investments — — 48,306 — 48,306 Accounts receivable, less allowance for doubtful accounts 129,625 191,458 20,513 — 341,596 Current deferred income tax assets — — — — — Prepaid expenses and other current assets 1,518 22,380 9,713 (1,260 ) 32,351 Total current assets 142,701 213,838 90,199 (1,260 ) 445,478 Restricted Cash and Investments 138 17,342 3,976 — 21,456 Property and Equipment, Net 743,004 1,095,108 81,482 — 1,919,594 Contract Receivable — — 230,927 — 230,927 Intercompany Receivable 971,827 52,704 3,123 (1,027,654 ) — Non-Current Deferred Income Tax Assets 713 11,898 11,543 — 24,154 Goodwill 79 614,941 439 — 615,459 Intangible Assets, Net — 218,354 744 — 219,098 Investment in Subsidiaries 1,110,983 453,595 2,190 (1,566,768 ) — Other Non-Current Assets 1,746 119,148 26,034 (80,067 ) 66,861 Total Assets $ 2,971,191 $ 2,796,928 $ 450,657 $ (2,675,749 ) $ 3,543,027 LIABILITIES AND SHAREHOLDERS’ EQUITY Accounts payable $ 6,549 $ 59,866 $ 17,094 $ — $ 83,509 Accrued payroll and related taxes — 32,311 14,936 — 47,247 Accrued expenses and other 38,226 77,020 12,274 (1,260 ) 126,260 Current portion of capital lease obligations, long-term debt and non-recourse debt 3,000 1,507 13,079 — 17,586 Total current liabilities 47,775 170,704 57,383 (1,260 ) 274,602 Non-Current Deferred Income Tax Liabilities — — — — — Intercompany Payable 42,792 972,513 12,349 (1,027,654 ) — Other Non-Current Liabilities 4,335 143,048 23,473 (80,067 ) 90,789 Capital Lease Obligations — 8,387 — — 8,387 Long-Term Debt 1,884,641 — — — 1,884,641 Non-Recourse Debt — — 292,879 — 292,879 Commitments & Contingencies and Other Shareholders' Equity: The GEO Group, Inc. Shareholders' Equity 991,648 1,502,276 64,490 (1,566,768 ) 991,646 Noncontrolling Interests — — 83 — 83 Total Shareholders’ Equity 991,648 1,502,276 64,573 (1,566,768 ) 991,729 Total Liabilities and Shareholders' Equity $ 2,971,191 $ 2,796,928 $ 450,657 $ (2,675,749 ) $ 3,543,027 CONDENSED CONSOLIDATING BALANCE SHEET (dollars in thousands) As of December 31, 2015 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 37,077 $ — $ 22,561 $ — $ 59,638 Restricted cash and investments — — 8,489 — 8,489 Accounts receivable, less allowance for doubtful accounts 131,747 162,538 19,812 — 314,097 Current deferred income tax assets — 23,120 4,794 — 27,914 Prepaid expenses and other current assets 1,190 17,917 10,310 (1,209 ) 28,208 Total current assets 170,014 203,575 65,966 (1,209 ) 438,346 Restricted Cash and Investments 138 16,386 3,712 — 20,236 Property and Equipment, Net 746,478 1,088,417 81,491 — 1,916,386 Direct Finance Lease Receivable — — 1,826 — 1,826 Contract Receivable — — 174,141 174,141 Intercompany Receivable 971,291 86,519 — (1,057,810 ) — Non-Current Deferred Income Tax Assets 710 (102 ) 6,791 — 7,399 Goodwill 79 614,941 418 — 615,438 Intangible Assets, Net — 223,426 722 — 224,148 Investment in Subsidiaries 1,106,546 453,636 — (1,560,182 ) — Other Non-Current Assets 2,387 116,561 25,486 (80,127 ) 64,307 Total Assets $ 2,997,643 $ 2,803,359 $ 360,553 $ (2,699,328 ) $ 3,462,227 LIABILITIES AND SHAREHOLDERS’ EQUITY Accounts payable $ 9,731 $ 54,675 $ 13,117 $ — $ 77,523 Accrued payroll and related taxes — 35,516 12,961 — 48,477 Accrued expenses and other 43,043 78,510 15,139 (1,209 ) 135,483 Current portion of capital lease obligations, long-term debt and non-recourse debt 3,000 1,477 12,664 — 17,141 Total current liabilities 55,774 170,178 53,881 (1,209 ) 278,624 Non-Current Deferred Income Tax Liabilities 11,120 351 — 11,471 Intercompany Payable 76,427 967,048 14,335 (1,057,810 ) — Other Non-Current Liabilities 2,894 143,887 21,040 (80,127 ) 87,694 Capital Lease Obligations — 8,693 — — 8,693 Long-Term Debt 1,855,810 — — — 1,855,810 Non-Recourse Debt — — 213,098 — 213,098 Commitments & Contingencies and Other Shareholders' Equity: The GEO Group, Inc. Shareholders' Equity 1,006,738 1,502,433 57,749 (1,560,182 ) 1,006,738 Noncontrolling Interests — — 99 — 99 Total Shareholders’ Equity 1,006,738 1,502,433 57,848 (1,560,182 ) 1,006,837 Total Liabilities and Shareholders' Equity $ 2,997,643 $ 2,803,359 $ 360,553 $ (2,699,328 ) $ 3,462,227 |
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | For the Three Months Ended March 31, 2016 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Consolidated Cash Flow from Operating Activities: Net cash (used in) provided by operating activities $ (221 ) $ 25,317 $ (42,623 ) $ (17,527 ) Cash Flow from Investing Activities: Proceeds from sale of property and equipment — 18 — 18 Change in restricted cash and investments 90 (956 ) (40,171 ) (41,037 ) Capital expenditures (3,567 ) (24,379 ) (483 ) (28,429 ) Net cash used in investing activities (3,477 ) (25,317 ) (40,654 ) (69,448 ) Cash Flow from Financing Activities: Proceeds from long-term debt 117,000 — — 117,000 Payments on long-term debt (88,756 ) — — (88,756 ) Payments on non-recourse debt — — (1,613 ) (1,613 ) Proceeds from non-recourse debt — — 71,242 71,242 Taxes paid related to net share settlements of equity awards (1,717 ) — — (1,717 ) Proceeds from issuance of common stock in connection with ESPP — — 2,357 2,357 Debt issuance costs — — (1,505 ) (1,505 ) Tax deficiency related to equity compensation (818 ) — — (818 ) Proceeds from stock options exercised 979 — — 979 Cash dividends paid (48,509 ) — — (48,509 ) Net cash (used in) provided by financing activities (21,821 ) — 70,481 48,660 Effect of Exchange Rate Changes on Cash and Cash Equivalents — — 1,902 1,902 Net Decrease in Cash and Cash Equivalents (25,519 ) — (10,894 ) (36,413 ) Cash and Cash Equivalents, beginning of period 37,077 — 22,561 59,638 Cash and Cash Equivalents, end of period $ 11,558 $ — $ 11,667 $ 23,225 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (dollars in thousands) (unaudited) For the Three Months Ended March 31, 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 $ 35,300 $ 30,416 $ (4,971 ) $ 60,745 Cash Flow from Investing Activities: Proceeds from sale of property and equipment — 20 — 20 Insurance proceeds - damages property — 700 — 700 Acquisition of LCS, net of cash acquired (307,403 ) — (307,403 ) Change in restricted cash and investments 102 (6,443 ) (1,767 ) (8,108 ) Capital expenditures (20,561 ) (13,042 ) (595 ) (34,198 ) Net cash used in investing activities (327,862 ) (18,765 ) (2,362 ) (348,989 ) Cash Flow from Financing Activities: Taxes paid related to net share settlements of equity awards (1,123 ) — — (1,123 ) Proceeds from long-term debt 371,000 — — 371,000 Payments on long-term debt (38,750 ) — (38,750 ) Payments on non-recourse debt — — (1,645 ) (1,645 ) Proceeds from non-recourse debt — — 33,019 33,019 Proceeds from reissuance of treasury stock in connection with ESPP 98 — — 98 Debt issuance costs — (1,245 ) (1,245 ) Tax benefit related to equity compensation 569 — — 569 Proceeds from stock options exercised 1,215 — — 1,215 Cash dividends paid (45,977 ) — — (45,977 ) Net cash provided by financing activities 287,032 — 30,129 317,161 Effect of Exchange Rate Changes on Cash and Cash Equivalents — — (1,273 ) (1,273 ) Net Increase (Decrease) in Cash and Cash Equivalents (5,530 ) 11,651 21,523 27,644 Cash and Cash Equivalents, beginning of period 18,492 782 22,063 41,337 Cash and Cash Equivalents, end of period $ 12,962 $ 12,433 $ 43,586 $ 68,981 |
Basis of Presentation (Details
Basis of Presentation (Details Textual) | Mar. 31, 2016facilitydetaineesbed |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of beds | bed | 87,000 |
Correctional, detention and residential treatment facilities including projects under development | facility | 104 |
Provision of monitoring services tracking offenders (more than 127,000) | 127,000 |
Provision of monitoring services tracking offenders using technology products | 83,000 |
Goodwill and Other Intangible35
Goodwill and Other Intangible Assets - Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning of period | $ 615,438 |
Foreign Currency Translation | 21 |
Goodwill, end of period | 615,459 |
U.S. Corrections & Detention | |
Goodwill [Roll Forward] | |
Goodwill, beginning of period | 277,774 |
Foreign Currency Translation | 0 |
Goodwill, end of period | 277,774 |
GEO Care | |
Goodwill [Roll Forward] | |
Goodwill, beginning of period | 337,257 |
Foreign Currency Translation | 0 |
Goodwill, end of period | 337,257 |
International Services | |
Goodwill [Roll Forward] | |
Goodwill, beginning of period | 407 |
Foreign Currency Translation | 21 |
Goodwill, end of period | $ 428 |
Goodwill and Other Intangible36
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ (92,876) | $ (87,793) |
Net Carrying Amount | 173,898 | |
Gross carrying amount | 311,974 | 311,941 |
Total acquired intangible assets | 219,098 | 224,148 |
Trade names | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | 0 | 0 |
Trade name (Indefinite lived) | $ 45,200 | 45,200 |
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 | $ 233,074 | 233,041 |
Accumulated Amortization | (75,460) | (71,538) |
Net Carrying Amount | $ 157,614 | 161,503 |
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 | 33,700 |
Accumulated Amortization | (17,416) | (16,255) |
Net Carrying Amount | $ 16,284 | $ 17,445 |
Goodwill and Other Intangible37
Goodwill and Other Intangible Assets (Details 1) $ in Thousands | Mar. 31, 2016USD ($) |
Estimated amortization expense for the remainder | |
Remainder of 2016 | $ 15,233 |
2,017 | 20,323 |
2,018 | 17,463 |
2,019 | 17,135 |
2,020 | 17,135 |
Thereafter | 86,609 |
Net Carrying Amount | $ 173,898 |
Goodwill and Other Intangible38
Goodwill and Other Intangible Assets (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 5.1 | $ 4.3 |
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 | Mar. 31, 2016 | Dec. 31, 2015 |
Restricted investment: | ||
Rabbi Trust | $ 14,664 | $ 13,071 |
Fixed income securities | 1,845 | 1,717 |
Interest rate cap derivatives assets | 47 | 93 |
Quoted Prices in Active Markets (Level 1) | ||
Restricted investment: | ||
Rabbi Trust | 0 | 0 |
Fixed income securities | 0 | 0 |
Interest rate cap derivatives assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Restricted investment: | ||
Rabbi Trust | 14,664 | 13,071 |
Fixed income securities | 1,845 | 1,717 |
Interest rate cap derivatives assets | 47 | 93 |
Significant Unobservable Inputs (Level 3) | ||
Restricted investment: | ||
Rabbi Trust | 0 | 0 |
Fixed income securities | 0 | 0 |
Interest rate cap derivatives assets | 0 | 0 |
Interest rate swap derivatives | ||
Liabilities: | ||
Interest rate swap derivatives | 23,706 | 20,835 |
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 | 23,706 | 20,835 |
Interest rate swap derivatives | Significant Unobservable Inputs (Level 3) | ||
Liabilities: | ||
Interest rate swap derivatives | $ 0 | $ 0 |
Fair Value of Assets and Liab40
Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Assets: | ||||
Cash and cash equivalents | $ 23,225 | $ 59,638 | $ 68,981 | $ 41,337 |
Carrying Value | ||||
Assets: | ||||
Cash and cash equivalents | 23,225 | 59,638 | ||
Restricted cash and investments | 48,306 | 15,654 | ||
Liabilities: | ||||
Borrowings under senior credit facility | 805,750 | 777,500 | ||
Carrying Value | 5.875% Senior Notes due 2024 | ||||
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 due 2022 | ||||
Liabilities: | ||||
Senior notes | 250,000 | 250,000 | ||
Carrying Value | 6.625% Senior Notes | ||||
Liabilities: | ||||
Senior notes | 300,000 | 300,000 | ||
Carrying Value | Other non recourse debt including current portion | ||||
Liabilities: | ||||
Non-recourse debt | 7,855 | 42,592 | ||
Estimate of Fair Value Measurement | ||||
Assets: | ||||
Cash and cash equivalents | 23,225 | 59,638 | ||
Restricted cash and investments | 48,306 | 15,654 | ||
Liabilities: | ||||
Borrowings under senior credit facility | 802,204 | 777,500 | ||
Estimate of Fair Value Measurement | 5.875% Senior Notes due 2024 | ||||
Liabilities: | ||||
Senior notes, fair value | 253,438 | 245,783 | ||
Estimate of Fair Value Measurement | 5.125% Senior Notes | ||||
Liabilities: | ||||
Senior notes, fair value | 292,875 | 285,189 | ||
Estimate of Fair Value Measurement | 5.875% Senior Notes due 2022 | ||||
Liabilities: | ||||
Senior notes, fair value | 258,125 | 248,125 | ||
Estimate of Fair Value Measurement | 6.625% Senior Notes | ||||
Liabilities: | ||||
Senior notes, fair value | 311,250 | 308,625 | ||
Estimate of Fair Value Measurement | Other non recourse debt including current portion | ||||
Liabilities: | ||||
Non-recourse debt | 7,821 | 43,353 | ||
Level 1 | Estimate of Fair Value Measurement | ||||
Assets: | ||||
Cash and cash equivalents | 23,225 | 59,638 | ||
Restricted cash and investments | 43,691 | 11,536 | ||
Liabilities: | ||||
Borrowings under senior credit facility | 0 | 0 | ||
Level 1 | Estimate of Fair Value Measurement | 5.875% Senior Notes due 2024 | ||||
Liabilities: | ||||
Senior notes, fair value | 0 | 0 | ||
Level 1 | Estimate of Fair Value Measurement | 5.125% Senior Notes | ||||
Liabilities: | ||||
Senior notes, fair value | 0 | 0 | ||
Level 1 | Estimate of Fair Value Measurement | 5.875% Senior Notes due 2022 | ||||
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 and investments | 4,615 | 4,118 | ||
Liabilities: | ||||
Borrowings under senior credit facility | 802,204 | 777,500 | ||
Level 2 | Estimate of Fair Value Measurement | 5.875% Senior Notes due 2024 | ||||
Liabilities: | ||||
Senior notes, fair value | 253,438 | 245,783 | ||
Level 2 | Estimate of Fair Value Measurement | 5.125% Senior Notes | ||||
Liabilities: | ||||
Senior notes, fair value | 292,875 | 285,189 | ||
Level 2 | Estimate of Fair Value Measurement | 5.875% Senior Notes due 2022 | ||||
Liabilities: | ||||
Senior notes, fair value | 258,125 | 248,125 | ||
Level 2 | Estimate of Fair Value Measurement | 6.625% Senior Notes | ||||
Liabilities: | ||||
Senior notes, fair value | 311,250 | 308,625 | ||
Level 2 | Estimate of Fair Value Measurement | Other non recourse debt including current portion | ||||
Liabilities: | ||||
Non-recourse debt | 7,821 | 43,353 | ||
Level 3 | Estimate of Fair Value Measurement | ||||
Assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash and investments | 0 | 0 | ||
Liabilities: | ||||
Borrowings under senior credit facility | 0 | 0 | ||
Level 3 | Estimate of Fair Value Measurement | 5.875% Senior Notes due 2024 | ||||
Liabilities: | ||||
Senior notes, fair value | 0 | 0 | ||
Level 3 | Estimate of Fair Value Measurement | 5.125% Senior Notes | ||||
Liabilities: | ||||
Senior notes, fair value | 0 | 0 | ||
Level 3 | Estimate of Fair Value Measurement | 5.875% Senior Notes due 2022 | ||||
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 | 320,811 | 204,539 | ||
AUSTRALIA | Subsidiary | Estimate of Fair Value Measurement | ||||
Liabilities: | ||||
Non-recourse debt | 323,534 | 204,531 | ||
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 | 323,534 | 204,531 | ||
AUSTRALIA | Level 3 | Subsidiary | Estimate of Fair Value Measurement | ||||
Liabilities: | ||||
Non-recourse debt | $ 0 | $ 0 |
Fair Value of Assets and Liab41
Fair Value of Assets and Liabilities (Details Textual) - Senior Notes | Mar. 31, 2016 | Dec. 31, 2015 |
5.875% Senior Notes, Due 2024 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.875% | 5.875% |
5.125% Senior Notes | ||
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 | ||
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 | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Changes in shareholders' equity that are attributable to the Company's shareholders and to non controlling interests | ||
Beginning Balance | $ 1,006,837 | |
Proceeds from exercise of stock options, value | $ 979 | |
Proceeds from exercise of stock options, shares | 50 | |
Tax deficiency related to equity compensation | $ (818) | |
Stock-based compensation expense | 3,241 | |
Restricted stock granted, value | 0 | |
Restricted stock canceled | 0 | |
Dividends paid | (48,507) | |
Shares withheld for net settlements of share-based awards | (1,717) | |
Other adjustments to additional paid-in-capital | 179 | |
Issuance of common stock (ESPP), value | 107 | |
Net income | 32,326 | $ 28,756 |
Other comprehensive (loss) income | (898) | $ (5,721) |
Ending Balance | 991,729 | |
Common shares | ||
Changes in shareholders' equity that are attributable to the Company's shareholders and to non controlling interests | ||
Beginning Balance | $ 747 | |
Beginning Balance, shares | 74,643 | |
Proceeds from exercise of stock options, value | $ 0 | |
Proceeds from exercise of stock options, shares | 50 | |
Restricted stock granted, value | $ 3 | |
Restricted stock granted, shares | 344 | |
Restricted stock canceled | $ 0 | |
Restricted stock canceled (shares) | (37) | |
Shares withheld for net settlements of share-based awards (shares) | (57) | |
Issuance of common stock (ESPP), shares | 4 | |
Ending Balance | $ 750 | |
Ending Balance, shares | 74,947 | |
Additional Paid-In Capital | ||
Changes in shareholders' equity that are attributable to the Company's shareholders and to non controlling interests | ||
Beginning Balance | $ 879,599 | |
Proceeds from exercise of stock options, value | 979 | |
Tax deficiency related to equity compensation | (818) | |
Stock-based compensation expense | 3,241 | |
Restricted stock granted, value | (3) | |
Shares withheld for net settlements of share-based awards | (1,717) | |
Other adjustments to additional paid-in-capital | 179 | |
Issuance of common stock (ESPP), value | 107 | |
Ending Balance | 881,567 | |
Earnings in Excess of Distributions | ||
Changes in shareholders' equity that are attributable to the Company's shareholders and to non controlling interests | ||
Beginning Balance | 158,796 | |
Dividends paid | (48,507) | |
Net income | 32,350 | |
Other comprehensive (loss) income | 0 | |
Ending Balance | 142,639 | |
Accumulated Other Comprehensive Loss | ||
Changes in shareholders' equity that are attributable to the Company's shareholders and to non controlling interests | ||
Beginning Balance | (32,404) | |
Other comprehensive (loss) income | (906) | |
Ending Balance | (33,310) | |
Noncontrolling Interests | ||
Changes in shareholders' equity that are attributable to the Company's shareholders and to non controlling interests | ||
Beginning Balance | 99 | |
Net income | (24) | |
Other comprehensive (loss) income | 8 | |
Ending Balance | $ 83 |
Shareholders' Equity - Dividend
Shareholders' Equity - Dividends declared (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||||
Mar. 31, 2016 | Feb. 03, 2016 | Nov. 03, 2015 | Jul. 31, 2015 | Apr. 29, 2015 | Feb. 06, 2015 | |
Dividends declared/paid [Abstract] | ||||||
Minimum percentage of taxable income to be distributed as REIT | 90.00% | |||||
Distribution Per Share | $ 0.65 | $ 0.65 | $ 0.62 | $ 0.62 | $ 0.62 | |
Aggregate Payment Amount (in millions) | $ 48.5 | $ 48.5 | $ 46.3 | $ 46.3 | $ 46 |
Shareholders' Equity - Prospect
Shareholders' Equity - Prospectus Supplement (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | Nov. 10, 2014 | May. 08, 2013 | |
Prospectus Supplement July 18, 2014 | ||||
Class of Stock [Line Items] | ||||
Maximum common stock value authorized under prospectus supplement | $ 100,000,000 | |||
Common Stock sold under prospectus supplement, in shares | 0 | 0 | ||
Prospectus Supplement November 10, 2014 | ||||
Class of Stock [Line Items] | ||||
Maximum common stock value authorized under prospectus supplement | $ 150,000,000 | |||
Common Stock sold under prospectus supplement, in shares | 0 | 0 |
Shareholders' Equity - Componen
Shareholders' Equity - Components of Accumulated Other Comprehensive Income (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Components of Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning balance | $ 1,006,738 |
Ending balance | 991,646 |
Foreign currency translation adjustments, net of tax attributable to The GEO Group, Inc. | |
Components of Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning balance | (11,747) |
Current-period other comprehensive (loss) income | 1,505 |
Ending balance | (10,242) |
Unrealized (loss)/gain on derivatives, net of tax | |
Components of Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning balance | (17,697) |
Current-period other comprehensive (loss) income | (2,444) |
Ending balance | (20,141) |
Pension adjustments, net of tax | |
Components of Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning balance | (2,960) |
Current-period other comprehensive (loss) income | 33 |
Ending balance | (2,927) |
Total | |
Components of Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning balance | (32,404) |
Current-period other comprehensive (loss) income | (906) |
Ending balance | $ (33,310) |
Equity Incentive Plans (Details
Equity Incentive Plans (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Summary of the activity of stock option awards | ||
Options outstanding, Beginning Balance, Shares | 749 | |
Options outstanding, Beginning Balance, Wtd. Avg. Exercise Price | $ 29.98 | |
Options outstanding, Beginning Balance, Wtd. Avg., Remaining Contractual Term | 7 years 7 months 2 days | 6 years 10 months 6 days |
Options outstanding, Beginning Balance, Aggregate Intrinsic Value | $ 3,057 | |
Options granted, Shares | 295 | |
Options granted, Wtd. Avg. Exercise Price | $ 29.39 | |
Options exercised, Shares | (50) | |
Options exercised, Wtd. Avg. Exercise Price | $ 19.57 | |
Options forfeited/canceled/expired, Shares | (22) | |
Options forfeited/canceled/expired, Wtd. Avg. Exercise Price | $ 35.62 | |
Options outstanding, Ending Balance, Shares | 972 | 749 |
Options outstanding, Ending Balance, Wtd. Avg. Exercise Price | $ 30.22 | $ 29.98 |
Options outstanding, Ending Balance, Wtd. Avg., Remaining Contractual Term | 7 years 7 months 2 days | 6 years 10 months 6 days |
Options outstanding, Ending Balance, Aggregate Intrinsic Value | $ 6,226 | $ 3,057 |
Options vested and expected to vest, ending balance, Shares | 905 | |
Options vested and expected to vest, ending balance, Wtd. Avg. Exercise Price | $ 29.98 | |
Options vested and expected to vest, ending balance, Wtd. Avg., Remaining Contractual Term | 7 years 5 months 19 days | |
Options vested and expected to vest, ending balance, Aggregate Intrinsic Value | $ 5,981 | |
Options exercisable, ending balance, Shares | 521 | |
Options exercisable, ending balance, Wtd. Avg. Exercise Price | $ 27.24 | |
Options exercisable, ending balance, Wtd. Avg. Remaining Contractual Term | 6 years 3 months 11 days | |
Options exercisable, ending balance, Aggregate Intrinsic Value | $ 4,644 |
Equity Incentive Plans (Detai47
Equity Incentive Plans (Details 1) - Restricted Stock shares in Thousands | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Summary of the activity of restricted stock | |
Restricted stock outstanding shares, Beginning Balance | shares | 863 |
Restricted stock outstanding Wtd. Avg. Grant Date Fair Value, Beginning Balance | $ / shares | $ 39.74 |
Granted shares | shares | 344 |
Granted Wtd. Avg. Grant Date Fair Value | $ / shares | $ 30.51 |
Vested shares | shares | (191) |
Vested Wtd. Avg. Grant Date Fair Value | $ / shares | $ 36.84 |
Forfeited/canceled shares | shares | (37) |
Forfeited/canceled Wtd. Avg. Grant Date Fair Value | $ / shares | $ 40.70 |
Restricted stock outstanding shares, Ending Balance | shares | 979 |
Restricted stock outstanding Wtd. Avg. Grant Date Fair Value, Ending Balance | $ / shares | $ 35.99 |
Equity Incentive Plans (Detai48
Equity Incentive Plans (Details Textual) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2016USD ($)performance_metrics$ / sharesshares | Mar. 31, 2015USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility rate | 25.00% | |
Expected term | 5 years | |
Risk free interest rate | 1.45% | |
Expected dividend rate | 8.85% | |
Options granted, Shares | 295,000 | |
Options granted, grant date fair value | $ / shares | $ 2.08 | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility rate | 23.50% | |
Risk free interest rate | 1.08% | |
Beta of Portfolio | 1.04 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based compensation expense | $ | $ 3 | $ 2.2 |
Unrecognized compensation costs related to non vested stock option awards | $ | $ 29.1 | |
Expected weighted average period to recognize expense | 2 years 9 months 18 days | |
Vesting period | 3 years | |
Granted shares | 344,000 | |
Number of annual performance metrics | performance_metrics | 2 | |
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 | 50.00% | |
Award vesting rights, percentage weighted towards capital performance targets | 50.00% | |
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 | 3,683 | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based compensation expense | $ | $ 0.2 | $ 0.4 |
Unrecognized compensation costs related to non vested stock option awards | $ | $ 1.3 | |
Expected weighted average period to recognize expense | 3 years 1 month 6 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 | 344,000 | |
Certain Employees and Executive Officers | Performance Based Share | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted shares | 115,000 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||
Net income | $ 32,326 | $ 28,756 |
Net loss attributable to noncontrolling interests | 24 | 21 |
Net income attributable to The GEO Group, Inc. | $ 32,350 | $ 28,777 |
Basic earnings per share attributable to The GEO Group, Inc.: | ||
Weighted average shares outstanding | 73,875,000 | 73,549,000 |
Per share amount | $ 0.44 | $ 0.39 |
Diluted earnings per share attributable to The GEO Group, Inc.: | ||
Weighted average shares outstanding | 73,875,000 | 73,549,000 |
Dilutive effect of equity incentive plans (shares) | 325,000 | 335,000 |
Weighted average shares assuming dilution | 74,200,000 | 73,884,000 |
Income from continuing operations (in dollars per share) | $ 0.44 | $ 0.39 |
Restricted Stock | ||
Basic and diluted earnings per share (Textual) [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share | 336,379 | 0 |
Stock Options | ||
Basic and diluted earnings per share (Textual) [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share | 453,104 | 83,790 |
Derivative Financial Instrume50
Derivative Financial Instruments - Australia Fulham (Details Textual) - Fullham, Australia AUD in Millions | 3 Months Ended | ||
Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2016AUD | |
Interest Rate Swaps [Abstract] | |||
Fixed interest rate on cash flow interest rate derivative | 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 |
Derivative Financial Instrume51
Derivative Financial Instruments - Australia Ravenhall (Details) AUD in Millions | 1 Months Ended | 3 Months Ended | |||
Sep. 30, 2014USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2016AUD | Mar. 31, 2016USD ($) | |
Derivative [Line Items] | |||||
Unrealized losses, net of tax, related to cash flow hedge | $ (2,444,000) | $ (4,080,000) | |||
Payments on non-recourse debt | 1,613,000 | $ 1,645,000 | |||
Ravenhall, Australia | |||||
Derivative [Line Items] | |||||
Ineffective portion of Cash Flow Hedge interest rate swap | 0 | ||||
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 | $ 23,600,000 | ||||
Ravenhall, Australia | Other Noncurrent Assets | Interest Rate Cap | |||||
Derivative [Line Items] | |||||
Interest rate swap asset value | $ 100,000 | ||||
Ravenhall, Australia | Design and construction phase | Interest Rate Swap | |||||
Derivative [Line Items] | |||||
Fixed interest rate on derivative | 3.30% | 3.30% | |||
Notional amount coincide with the terms of the non-recourse debt | AUD 362.8 | $ 278,200,000 | |||
Ravenhall, Australia | Operating phase | Interest Rate Swap | |||||
Derivative [Line Items] | |||||
Fixed interest rate on derivative | 4.20% | 4.20% | |||
Notional amount coincide with the terms of the non-recourse debt | AUD 466.3 | $ 357,600,000 | |||
Ravenhall, Australia | Cash Flow Hedge | |||||
Derivative [Line Items] | |||||
Unrealized losses, net of tax, related to cash flow hedge | $ 2,500,000 | ||||
Construction Facility | Non-Recourse Debt | National Australia Bank Limited | Ravenhall | |||||
Derivative [Line Items] | |||||
Lump sum due at completion | AUD 310 | $ 237,700,000 |
Debt - Debt Outstanding (Detail
Debt - Debt Outstanding (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Term loan | $ 291,750 | $ 292,500 |
Revolver | 514,000 | 485,000 |
Total Senior Credit Facility | 805,291 | 777,014 |
Unamortized Debt Issuance Expense | (459) | (486) |
Capital Lease Obligations | 9,574 | 9,856 |
Other debt | 1,335 | 1,370 |
Total debt | 2,203,493 | 2,094,742 |
Current portion of capital lease obligations, long-term debt and non-recourse debt | (17,586) | (17,141) |
Capital Lease Obligations, long-term portion | (8,387) | (8,693) |
Non-Recourse Debt, long-term portion | (292,879) | (213,098) |
Long-Term Debt | 1,884,641 | 1,855,810 |
Non-Recourse Debt | ||
Debt Instrument [Line Items] | ||
Non-Recourse Debt | 329,176 | 247,679 |
Unamortized Debt Issuance Expense | (22,707) | (21,369) |
Unamortized discount on non-recourse debt | (510) | (548) |
Total Non-Recourse Debt | 305,959 | 225,762 |
5.875% Senior Notes, Due 2024 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Unamortized Debt Issuance Expense | (4,051) | (4,140) |
Long-term Debt | 245,949 | 245,860 |
Long-term Debt, Gross | $ 250,000 | $ 250,000 |
Interest rate | 5.875% | 5.875% |
5.125% Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Unamortized Debt Issuance Expense | $ (5,219) | $ (5,358) |
Long-term Debt | 294,781 | 294,642 |
Long-term Debt, Gross | $ 300,000 | $ 300,000 |
Interest rate | 5.125% | 5.125% |
5.875% Senior Notes, Due 2022 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Unamortized Debt Issuance Expense | $ (4,409) | $ (4,564) |
Long-term Debt | 245,591 | 245,436 |
Long-term Debt, Gross | $ 250,000 | $ 250,000 |
Interest rate | 5.875% | 5.875% |
6.625% Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Unamortized Debt Issuance Expense | $ (4,987) | $ (5,198) |
Long-term Debt | 295,013 | 294,802 |
Long-term Debt, Gross | $ 300,000 | $ 300,000 |
Interest rate | 6.625% | 6.625% |
Debt - Senior Credit Facility (
Debt - Senior Credit Facility (Details) AUD in Millions | Aug. 27, 2014AUD | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Aug. 27, 2014USD ($) | Feb. 10, 2011USD ($) |
Line of Credit Facility [Line Items] | |||||
Term loan | $ 291,750,000 | $ 292,500,000 | |||
Revolver | $ 514,000,000 | 485,000,000 | |||
Weighted average interest rate | 2.90% | ||||
Term Loan | |||||
Line of Credit Facility [Line Items] | |||||
Term loan | $ 291,800,000 | ||||
Letter of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Long-term debt | 54,200,000 | ||||
Additional Revolver | |||||
Line of Credit Facility [Line Items] | |||||
Borrowing capacity increase | 131,800,000 | ||||
Term Loan | Credit Facility Term Loan | |||||
Line of Credit Facility [Line Items] | |||||
Face amount | $ 296,300,000 | ||||
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 | 514,000,000 | ||||
Revolver | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 700,000,000 | ||||
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 | |||
6.625% Senior Notes | Senior Notes | |||||
Line of Credit Facility [Line Items] | |||||
Face amount | 300,000,000 | $ 300,000,000 | |||
Long-term debt | $ 295,013,000 | $ 294,802,000 |
Debt - Senior Notes (Details)
Debt - Senior Notes (Details) - Senior Notes | Mar. 31, 2016 | Dec. 31, 2015 |
5.875% Senior Notes, Due 2024 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.875% | 5.875% |
5.125% Senior Notes | ||
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 | ||
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 | 3 Months Ended | |||
Mar. 31, 2016AUD | Mar. 31, 2016USD ($) | Dec. 31, 2015AUD | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | ||||
Revolver | $ 514,000 | $ 485,000 | ||
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 | 305,959 | 225,762 | ||
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 | 7,300 | |||
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 | $ 42,600 | |||
Current portion of non recourse debt | 6,500 | |||
Fulham | Australian Subsidiaries, Non-Recourse Debt | ||||
Debt Instrument [Line Items] | ||||
Non-recourse debt | AUD 10.2 | 7,900 | AUD 12.4 | $ 9,000 |
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 | 791 | 606,500 | ||
Lump sum due at completion | AUD 310 | 237,700 | ||
Revolver | $ 278,200 |
Debt - Guarantees (Details)
Debt - Guarantees (Details) - 3 months ended Mar. 31, 2016 £ in Millions, CAD in Millions, AUD in Millions | ZAR | AUDguarantee | CADguarantee | ZARguarantee | USD ($)guarantee | GBP (£)guarantee |
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 | $ 12,200,000 | £ 8.5 | ||||
Ravenhall | ||||||
Line of Credit Facility [Line Items] | ||||||
Number of letters of guarantee outstanding under separate international facilities relating to performance guarantees | guarantee | 11 | 11 | 11 | 11 | 11 | |
Letters of credit outstanding relating to performance guarantees | $ 16,300,000 | |||||
Ravenhall | Letter of Credit | Revolver | ||||||
Line of Credit Facility [Line Items] | ||||||
Guaranteed obligations | AUD 215 | 164,900,000 | ||||
SACS | ||||||
Line of Credit Facility [Line Items] | ||||||
Guaranteed obligations | ZAR 15,000,000 | 1,000,000 | ||||
Remaining guarantee under letter of credit | ZAR | ZAR 15,000,000 | |||||
Maximum loan amount under standby facility | ZAR 20,000,000 | 1,347,200 | ||||
Amount funded | 0 | |||||
Canada Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Potential estimated exposure of tax obligations | CAD 1.5 | $ 1,200,000 |
Commitments, Contingencies an57
Commitments, Contingencies and Other (Details Textual) AUD in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2016USD ($) | Mar. 31, 2016AUDfacilitybed | Mar. 31, 2016USD ($)facilitybed | |
Commitments and Contingencies (Textual) [Abstract] | |||
Estimated construction capital project cost | $ 98.5 | ||
Cost already spent on existing capital projects | 5.9 | ||
Remaining capital required for capital projects | $ 92.6 | ||
Number of vacant beds at idle facilities marketed to potential customers | bed | 3,300 | 3,300 | |
Number of marketed idle facilities | facility | 4 | 4 | |
Property and Equipment | |||
Commitments and Contingencies (Textual) [Abstract] | |||
Carrying values of idle facilities marketed to potential customers | $ 34.9 | ||
National Australia Bank Limited | Ravenhall | Non-Recourse Debt | |||
Commitments and Contingencies (Textual) [Abstract] | |||
Contributions in aid of construction | 84 | ||
National Australia Bank Limited | Ravenhall | Non-Recourse Debt | Construction Facility | |||
Commitments and Contingencies (Textual) [Abstract] | |||
Maximum borrowing capacity | AUD 791 | $ 606.5 |
Business Segments and Geograp58
Business Segments and Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Income: | ||
Operating income | $ 59,167 | $ 52,672 |
Operating Segments | ||
Revenues: | ||
Revenues | 510,185 | 427,369 |
Operating Income: | ||
Operating income | 93,228 | 84,520 |
Operating Segments | U.S. Corrections & Detention | ||
Revenues: | ||
Revenues | 338,370 | 285,609 |
Operating Income: | ||
Operating income | 66,919 | 63,597 |
Operating Segments | GEO Care | ||
Revenues: | ||
Revenues | 93,414 | 79,356 |
Operating Income: | ||
Operating income | 23,971 | 18,506 |
Operating Segments | International Services | ||
Revenues: | ||
Revenues | 37,555 | 40,654 |
Operating Income: | ||
Operating income | 1,762 | 1,815 |
Operating Segments | Facility Construction & Design | ||
Revenues: | ||
Revenues | 40,846 | 21,750 |
Operating Income: | ||
Operating income | $ 576 | $ 602 |
Business Segments and Geograp59
Business Segments and Geographic Information (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Pre-Tax Income Reconciliation of Segments | ||
Total operating income from segments | $ 59,167 | $ 52,672 |
Unallocated Amount: | ||
General and Administrative Expenses | (34,061) | (31,848) |
Income before income taxes and equity in earnings of affiliates | 34,358 | 30,099 |
Operating Segments | ||
Pre-Tax Income Reconciliation of Segments | ||
Total operating income from segments | 93,228 | 84,520 |
Segment Reconciling Items | ||
Unallocated Amount: | ||
General and Administrative Expenses | (34,061) | (31,848) |
Net Interest Expense | $ (24,809) | $ (22,573) |
Business Segments and Geograp60
Business Segments and Geographic Information (Details Textual) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016USD ($)segment | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | |
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 | $ 1,119 | $ 1,485 | |
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 | $ 900 | 1,100 | |
Investment in Joint Ventures | $ 9,900 | $ 9,000 | |
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 | $ 300 | $ 400 | |
Losses in equity method investment | $ (900) | $ (1,200) |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Change in Projected Benefit Obligation | |||
Projected benefit obligation, beginning of period | $ 25,935 | $ 25,826 | |
Service cost | 249 | 1,173 | |
Interest cost | 289 | 1,082 | |
Actuarial gain | 0 | (1,818) | |
Benefits paid | (84) | (328) | |
Projected benefit obligation, end of period | 26,389 | ||
Change in Plan Assets | |||
Plan assets at fair value, beginning of period | 0 | 0 | |
Company contributions | 84 | 328 | |
Benefits paid | (84) | $ (328) | |
Plan assets at fair value, end of period | 0 | ||
Unfunded Status of the Plan | $ (26,389) | $ (25,935) |
Benefit Plans (Details 1)
Benefit Plans (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Components of Net Periodic Benefit Cost | ||
Service cost | $ 249 | $ 1,173 |
Interest cost | 289 | 1,082 |
Net loss | 53 | 427 |
Net periodic pension cost | $ 591 | $ 2,682 |
Benefit Plans (Details Textual
Benefit Plans (Details Textual) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Compensation and Retirement Disclosure [Abstract] | ||
Long-term portion of the pension liability | $ 26.1 | $ 25.1 |
Recent Accounting Standards - D
Recent Accounting Standards - Debt Issuance Costs (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Debt issuance costs | $ 459 | $ 486 |
Other Noncurrent Assets | Accounting Standards Update 2015-03 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Debt issuance costs | (41,800) | (41,100) |
Long-term Debt | Accounting Standards Update 2015-03 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Debt issuance costs | $ 41,800 | $ 41,100 |
Condensed Consolidating Finan65
Condensed Consolidating Financial Information (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Consolidated Statements of Income and Comprehensive Income [Abstract] | ||
Revenues | $ 510,185 | $ 427,369 |
Operating expenses | 388,506 | 317,909 |
Depreciation and amortization | 28,451 | 24,940 |
General and administrative expenses | 34,061 | 31,848 |
Total operating income from segments | 59,167 | 52,672 |
Interest income | 4,557 | 2,073 |
Interest expense | (29,366) | (24,646) |
Income before income taxes and equity in earnings of affiliates | 34,358 | 30,099 |
Income tax provision | 3,151 | 2,828 |
Equity in earnings (losses) of affiliates, net of income tax provision | 1,119 | 1,485 |
Income before equity in income of consolidated subsidiaries | 32,326 | 28,756 |
Income from consolidated subsidiaries, net of income tax provision | 0 | 0 |
Net income | 32,326 | 28,756 |
Net income | 32,326 | 28,756 |
Net loss attributable to noncontrolling interests | 24 | 21 |
Net income attributable to The GEO Group, Inc. | 32,350 | 28,777 |
Other comprehensive income (loss), net of tax | (898) | (5,721) |
Total comprehensive income | 31,428 | 23,035 |
Comprehensive loss attributable to noncontrolling interests | 16 | 37 |
Comprehensive income attributable to The GEO Group, Inc. | 31,444 | 23,072 |
The GEO Group, Inc. | ||
Consolidated Statements of Income and Comprehensive Income [Abstract] | ||
Revenues | 167,637 | 144,383 |
Operating expenses | 137,910 | 116,225 |
Depreciation and amortization | 6,262 | 6,203 |
General and administrative expenses | 7,975 | 10,323 |
Total operating income from segments | 15,490 | 11,632 |
Interest income | 5,441 | 6,178 |
Interest expense | (16,357) | (14,310) |
Income before income taxes and equity in earnings of affiliates | 4,574 | 3,500 |
Income tax provision | 10 | 0 |
Equity in earnings (losses) of affiliates, net of income tax provision | 0 | 0 |
Income before equity in income of consolidated subsidiaries | 4,564 | 3,500 |
Income from consolidated subsidiaries, net of income tax provision | 27,763 | 25,256 |
Net income | 32,327 | 28,756 |
Net loss attributable to noncontrolling interests | 0 | 0 |
Net income attributable to The GEO Group, Inc. | 32,327 | 28,756 |
Other comprehensive income (loss), net of tax | 0 | 0 |
Total comprehensive income | 32,327 | 28,756 |
Comprehensive loss attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to The GEO Group, Inc. | 32,327 | 28,756 |
Combined Subsidiary Guarantors | ||
Consolidated Statements of Income and Comprehensive Income [Abstract] | ||
Revenues | 400,342 | 339,887 |
Operating expenses | 319,904 | 268,781 |
Depreciation and amortization | 21,233 | 17,697 |
General and administrative expenses | 19,966 | 16,880 |
Total operating income from segments | 39,239 | 36,529 |
Interest income | 609 | 1,231 |
Interest expense | (13,944) | (14,636) |
Income before income taxes and equity in earnings of affiliates | 25,904 | 23,124 |
Income tax provision | 2,191 | 1,740 |
Equity in earnings (losses) of affiliates, net of income tax provision | 0 | 0 |
Income before equity in income of consolidated subsidiaries | 23,713 | 21,384 |
Income from consolidated subsidiaries, net of income tax provision | 0 | 0 |
Net income | 23,713 | 21,384 |
Net loss attributable to noncontrolling interests | 0 | 0 |
Net income attributable to The GEO Group, Inc. | 23,713 | 21,384 |
Other comprehensive income (loss), net of tax | 33 | 40 |
Total comprehensive income | 23,746 | 21,424 |
Comprehensive loss attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to The GEO Group, Inc. | 23,746 | 21,424 |
Combined Non-Guarantor Subsidiaries | ||
Consolidated Statements of Income and Comprehensive Income [Abstract] | ||
Revenues | 80,965 | 64,967 |
Operating expenses | 69,451 | 54,771 |
Depreciation and amortization | 956 | 1,040 |
General and administrative expenses | 6,120 | 4,645 |
Total operating income from segments | 4,438 | 4,511 |
Interest income | 4,657 | 2,137 |
Interest expense | (5,215) | (3,173) |
Income before income taxes and equity in earnings of affiliates | 3,880 | 3,475 |
Income tax provision | 950 | 1,088 |
Equity in earnings (losses) of affiliates, net of income tax provision | 1,119 | 1,485 |
Income before equity in income of consolidated subsidiaries | 4,049 | 3,872 |
Income from consolidated subsidiaries, net of income tax provision | 0 | 0 |
Net income | 4,049 | 3,872 |
Net loss attributable to noncontrolling interests | 24 | 21 |
Net income attributable to The GEO Group, Inc. | 4,073 | 3,893 |
Other comprehensive income (loss), net of tax | (931) | (5,761) |
Total comprehensive income | 3,118 | (1,889) |
Comprehensive loss attributable to noncontrolling interests | 16 | 37 |
Comprehensive income attributable to The GEO Group, Inc. | 3,134 | (1,852) |
Eliminations | ||
Consolidated Statements of Income and Comprehensive Income [Abstract] | ||
Revenues | (138,759) | (121,868) |
Operating expenses | (138,759) | (121,868) |
Depreciation and amortization | 0 | 0 |
General and administrative expenses | 0 | 0 |
Total operating income from segments | 0 | 0 |
Interest income | (6,150) | (7,473) |
Interest expense | 6,150 | 7,473 |
Income before income taxes and equity in earnings of affiliates | 0 | 0 |
Income tax provision | 0 | 0 |
Equity in earnings (losses) of affiliates, net of income tax provision | 0 | 0 |
Income before equity in income of consolidated subsidiaries | 0 | 0 |
Income from consolidated subsidiaries, net of income tax provision | (27,763) | (25,256) |
Net income | (27,763) | (25,256) |
Net loss attributable to noncontrolling interests | 0 | 0 |
Net income attributable to The GEO Group, Inc. | (27,763) | (25,256) |
Other comprehensive income (loss), net of tax | 0 | 0 |
Total comprehensive income | (27,763) | (25,256) |
Comprehensive loss attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to The GEO Group, Inc. | $ (27,763) | $ (25,256) |
Condensed Consolidating Finan66
Condensed Consolidating Financial Information (Details 2) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Assets | ||||
Cash and cash equivalents | $ 23,225 | $ 59,638 | $ 68,981 | $ 41,337 |
Restricted cash and investments, current | 48,306 | 8,489 | ||
Accounts receivable, less allowance for doubtful accounts | 341,596 | 314,097 | ||
Current deferred income tax assets | 0 | 27,914 | ||
Prepaid expenses and other current assets | 32,351 | 28,208 | ||
Total current assets | 445,478 | 438,346 | ||
Restricted cash and investments, non-current | 21,456 | 20,236 | ||
Property and equipment, net | 1,919,594 | 1,916,386 | ||
Contract Receivable | 230,927 | 174,141 | ||
Direct Finance Lease Receivable | 0 | 1,826 | ||
Intercompany Receivable | 0 | 0 | ||
Non-Current Deferred Income Tax Assets | 24,154 | 7,399 | ||
Goodwill | 615,459 | 615,438 | ||
Intangible Assets, Net | 219,098 | 224,148 | ||
Investment in Subsidiaries | 0 | 0 | ||
Other Non-Current Assets | 66,861 | 64,307 | ||
Total Assets | 3,543,027 | 3,462,227 | ||
Current Liabilities | ||||
Accounts payable | 83,509 | 77,523 | ||
Accrued payroll and related taxes | 47,247 | 48,477 | ||
Accrued expenses and other current liabilities | 126,260 | 135,483 | ||
Current portion of capital lease obligations, long-term debt and non-recourse debt | 17,586 | 17,141 | ||
Total current liabilities | 274,602 | 278,624 | ||
Non-Current Deferred Income Tax Liabilities | 0 | 11,471 | ||
Intercompany Payable | 0 | 0 | ||
Other Non-Current Liabilities | 90,789 | 87,694 | ||
Capital Lease Obligations | 8,387 | 8,693 | ||
Long-Term Debt | 1,884,641 | 1,855,810 | ||
Non-recourse debt | $ 292,879 | $ 213,098 | ||
Commitments & Contingencies and Other | ||||
The GEO Group, Inc. Shareholders' Equity | $ 991,646 | $ 1,006,738 | ||
Noncontrolling interests | 83 | 99 | ||
Total shareholders’ equity | 991,729 | 1,006,837 | ||
Total Liabilities and Shareholders’ Equity | 3,543,027 | 3,462,227 | ||
The GEO Group, Inc. | ||||
Assets | ||||
Cash and cash equivalents | 11,558 | 37,077 | 12,962 | 18,492 |
Restricted cash and investments, current | 0 | 0 | ||
Accounts receivable, less allowance for doubtful accounts | 129,625 | 131,747 | ||
Current deferred income tax assets | 0 | 0 | ||
Prepaid expenses and other current assets | 1,518 | 1,190 | ||
Total current assets | 142,701 | 170,014 | ||
Restricted cash and investments, non-current | 138 | 138 | ||
Property and equipment, net | 743,004 | 746,478 | ||
Contract Receivable | 0 | 0 | ||
Direct Finance Lease Receivable | 0 | |||
Intercompany Receivable | 971,827 | 971,291 | ||
Non-Current Deferred Income Tax Assets | 713 | 710 | ||
Goodwill | 79 | 79 | ||
Intangible Assets, Net | 0 | 0 | ||
Investment in Subsidiaries | 1,110,983 | 1,106,546 | ||
Other Non-Current Assets | 1,746 | 2,387 | ||
Total Assets | 2,971,191 | 2,997,643 | ||
Current Liabilities | ||||
Accounts payable | 6,549 | 9,731 | ||
Accrued payroll and related taxes | 0 | 0 | ||
Accrued expenses and other current liabilities | 38,226 | 43,043 | ||
Current portion of capital lease obligations, long-term debt and non-recourse debt | 3,000 | 3,000 | ||
Total current liabilities | 47,775 | $ 55,774 | ||
Non-Current Deferred Income Tax Liabilities | 0 | |||
Intercompany Payable | 42,792 | $ 76,427 | ||
Other Non-Current Liabilities | 4,335 | 2,894 | ||
Capital Lease Obligations | 0 | 0 | ||
Long-Term Debt | 1,884,641 | 1,855,810 | ||
Non-recourse debt | $ 0 | $ 0 | ||
Commitments & Contingencies and Other | ||||
The GEO Group, Inc. Shareholders' Equity | $ 991,648 | $ 1,006,738 | ||
Noncontrolling interests | 0 | 0 | ||
Total shareholders’ equity | 991,648 | 1,006,738 | ||
Total Liabilities and Shareholders’ Equity | 2,971,191 | 2,997,643 | ||
Combined Subsidiary Guarantors | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | 12,433 | 782 |
Restricted cash and investments, current | 0 | 0 | ||
Accounts receivable, less allowance for doubtful accounts | 191,458 | 162,538 | ||
Current deferred income tax assets | 0 | 23,120 | ||
Prepaid expenses and other current assets | 22,380 | 17,917 | ||
Total current assets | 213,838 | 203,575 | ||
Restricted cash and investments, non-current | 17,342 | 16,386 | ||
Property and equipment, net | 1,095,108 | 1,088,417 | ||
Contract Receivable | 0 | 0 | ||
Direct Finance Lease Receivable | 0 | |||
Intercompany Receivable | 52,704 | 86,519 | ||
Non-Current Deferred Income Tax Assets | 11,898 | (102) | ||
Goodwill | 614,941 | 614,941 | ||
Intangible Assets, Net | 218,354 | 223,426 | ||
Investment in Subsidiaries | 453,595 | 453,636 | ||
Other Non-Current Assets | 119,148 | 116,561 | ||
Total Assets | 2,796,928 | 2,803,359 | ||
Current Liabilities | ||||
Accounts payable | 59,866 | 54,675 | ||
Accrued payroll and related taxes | 32,311 | 35,516 | ||
Accrued expenses and other current liabilities | 77,020 | 78,510 | ||
Current portion of capital lease obligations, long-term debt and non-recourse debt | 1,507 | 1,477 | ||
Total current liabilities | 170,704 | 170,178 | ||
Non-Current Deferred Income Tax Liabilities | 0 | 11,120 | ||
Intercompany Payable | 972,513 | 967,048 | ||
Other Non-Current Liabilities | 143,048 | 143,887 | ||
Capital Lease Obligations | 8,387 | 8,693 | ||
Long-Term Debt | 0 | 0 | ||
Non-recourse debt | $ 0 | $ 0 | ||
Commitments & Contingencies and Other | ||||
The GEO Group, Inc. Shareholders' Equity | $ 1,502,276 | $ 1,502,433 | ||
Noncontrolling interests | 0 | 0 | ||
Total shareholders’ equity | 1,502,276 | 1,502,433 | ||
Total Liabilities and Shareholders’ Equity | 2,796,928 | 2,803,359 | ||
Combined Non-Guarantor Subsidiaries | ||||
Assets | ||||
Cash and cash equivalents | 11,667 | 22,561 | $ 43,586 | $ 22,063 |
Restricted cash and investments, current | 48,306 | 8,489 | ||
Accounts receivable, less allowance for doubtful accounts | 20,513 | 19,812 | ||
Current deferred income tax assets | 0 | 4,794 | ||
Prepaid expenses and other current assets | 9,713 | 10,310 | ||
Total current assets | 90,199 | 65,966 | ||
Restricted cash and investments, non-current | 3,976 | 3,712 | ||
Property and equipment, net | 81,482 | 81,491 | ||
Contract Receivable | 230,927 | 174,141 | ||
Direct Finance Lease Receivable | 1,826 | |||
Intercompany Receivable | 3,123 | 0 | ||
Non-Current Deferred Income Tax Assets | 11,543 | 6,791 | ||
Goodwill | 439 | 418 | ||
Intangible Assets, Net | 744 | 722 | ||
Investment in Subsidiaries | 2,190 | 0 | ||
Other Non-Current Assets | 26,034 | 25,486 | ||
Total Assets | 450,657 | 360,553 | ||
Current Liabilities | ||||
Accounts payable | 17,094 | 13,117 | ||
Accrued payroll and related taxes | 14,936 | 12,961 | ||
Accrued expenses and other current liabilities | 12,274 | 15,139 | ||
Current portion of capital lease obligations, long-term debt and non-recourse debt | 13,079 | 12,664 | ||
Total current liabilities | 57,383 | 53,881 | ||
Non-Current Deferred Income Tax Liabilities | 0 | 351 | ||
Intercompany Payable | 12,349 | 14,335 | ||
Other Non-Current Liabilities | 23,473 | 21,040 | ||
Capital Lease Obligations | 0 | 0 | ||
Long-Term Debt | 0 | 0 | ||
Non-recourse debt | $ 292,879 | $ 213,098 | ||
Commitments & Contingencies and Other | ||||
The GEO Group, Inc. Shareholders' Equity | $ 64,490 | $ 57,749 | ||
Noncontrolling interests | 83 | 99 | ||
Total shareholders’ equity | 64,573 | 57,848 | ||
Total Liabilities and Shareholders’ Equity | 450,657 | 360,553 | ||
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 | (1,260) | (1,209) | ||
Total current assets | (1,260) | (1,209) | ||
Restricted cash and investments, non-current | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Contract Receivable | 0 | |||
Direct Finance Lease Receivable | 0 | |||
Intercompany Receivable | (1,027,654) | (1,057,810) | ||
Non-Current Deferred Income Tax Assets | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible Assets, Net | 0 | 0 | ||
Investment in Subsidiaries | (1,566,768) | (1,560,182) | ||
Other Non-Current Assets | (80,067) | (80,127) | ||
Total Assets | (2,675,749) | (2,699,328) | ||
Current Liabilities | ||||
Accounts payable | 0 | 0 | ||
Accrued payroll and related taxes | 0 | 0 | ||
Accrued expenses and other current liabilities | (1,260) | (1,209) | ||
Current portion of capital lease obligations, long-term debt and non-recourse debt | 0 | 0 | ||
Total current liabilities | (1,260) | (1,209) | ||
Non-Current Deferred Income Tax Liabilities | 0 | 0 | ||
Intercompany Payable | (1,027,654) | (1,057,810) | ||
Other Non-Current Liabilities | (80,067) | (80,127) | ||
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 | $ (1,566,768) | $ (1,560,182) | ||
Noncontrolling interests | 0 | 0 | ||
Total shareholders’ equity | (1,566,768) | (1,560,182) | ||
Total Liabilities and Shareholders’ Equity | $ (2,675,749) | $ (2,699,328) |
Condensed Consolidating Finan67
Condensed Consolidating Financial Information (Details 3) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash Flow from Operating Activities: | ||
Net cash provided by operating activities | $ (17,527) | $ 60,745 |
Cash Flow from Investing Activities: | ||
Acquisition of LCS, cash consideration | 0 | (307,403) |
Proceeds from sale of property and equipment | 18 | 20 |
Insurance proceeds - damaged property | 0 | 700 |
Change in restricted cash and investments | (41,037) | (8,108) |
Capital expenditures | (28,429) | (34,198) |
Net cash used in investing activities | (69,448) | (348,989) |
Cash Flow from Financing Activities: | ||
Proceeds from long-term debt | 117,000 | 371,000 |
Payments on long-term debt | (88,756) | (38,750) |
Payments on non-recourse debt | (1,613) | (1,645) |
Proceeds from non-recourse debt | 71,242 | 33,019 |
Taxes paid related to net share settlements of equity awards | (1,717) | (1,123) |
Proceeds from issuance of common stock in connection with ESPP | 2,357 | 98 |
Debt issuance costs | (1,505) | (1,245) |
Income tax deficiency (benefit) related to equity compensation | (818) | 569 |
Proceeds from the exercise of stock options | 979 | 1,215 |
Cash dividends paid | (48,509) | (45,977) |
Net cash provided by financing activities | 48,660 | 317,161 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 1,902 | (1,273) |
Net (Decrease) Increase in Cash and Cash Equivalents | (36,413) | 27,644 |
Cash and Cash Equivalents, beginning of period | 59,638 | 41,337 |
Cash and Cash Equivalents, end of period | 23,225 | 68,981 |
The GEO Group, Inc. | ||
Cash Flow from Operating Activities: | ||
Net cash provided by operating activities | (221) | 35,300 |
Cash Flow from Investing Activities: | ||
Acquisition of LCS, cash consideration | (307,403) | |
Proceeds from sale of property and equipment | 0 | 0 |
Insurance proceeds - damaged property | 0 | |
Change in restricted cash and investments | 90 | 102 |
Capital expenditures | (3,567) | (20,561) |
Net cash used in investing activities | (3,477) | (327,862) |
Cash Flow from Financing Activities: | ||
Proceeds from long-term debt | 117,000 | 371,000 |
Payments on long-term debt | (88,756) | (38,750) |
Payments on non-recourse debt | 0 | 0 |
Proceeds from non-recourse debt | 0 | 0 |
Taxes paid related to net share settlements of equity awards | (1,717) | (1,123) |
Proceeds from issuance of common stock in connection with ESPP | 0 | $ 98 |
Debt issuance costs | 0 | |
Income tax deficiency (benefit) related to equity compensation | (818) | $ 569 |
Proceeds from the exercise of stock options | 979 | 1,215 |
Cash dividends paid | (48,509) | (45,977) |
Net cash provided by financing activities | (21,821) | 287,032 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 0 | 0 |
Net (Decrease) Increase in Cash and Cash Equivalents | (25,519) | (5,530) |
Cash and Cash Equivalents, beginning of period | 37,077 | 18,492 |
Cash and Cash Equivalents, end of period | 11,558 | 12,962 |
Combined Subsidiary Guarantors | ||
Cash Flow from Operating Activities: | ||
Net cash provided by operating activities | 25,317 | $ 30,416 |
Cash Flow from Investing Activities: | ||
Acquisition of LCS, cash consideration | ||
Proceeds from sale of property and equipment | 18 | $ 20 |
Insurance proceeds - damaged property | 700 | |
Change in restricted cash and investments | (956) | (6,443) |
Capital expenditures | (24,379) | (13,042) |
Net cash used in investing activities | (25,317) | (18,765) |
Cash Flow from Financing Activities: | ||
Proceeds from long-term debt | 0 | $ 0 |
Payments on long-term debt | 0 | |
Payments on non-recourse debt | 0 | $ 0 |
Proceeds from non-recourse debt | 0 | 0 |
Taxes paid related to net share settlements of equity awards | 0 | 0 |
Proceeds from issuance of common stock in connection with ESPP | 0 | 0 |
Debt issuance costs | 0 | 0 |
Income tax deficiency (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 financing activities | 0 | 0 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 0 | 0 |
Net (Decrease) Increase in Cash and Cash Equivalents | 0 | 11,651 |
Cash and Cash Equivalents, beginning of period | 0 | 782 |
Cash and Cash Equivalents, end of period | 0 | 12,433 |
Combined Non-Guarantor Subsidiaries | ||
Cash Flow from Operating Activities: | ||
Net cash provided by operating activities | (42,623) | (4,971) |
Cash Flow from Investing Activities: | ||
Acquisition of LCS, cash consideration | 0 | |
Proceeds from sale of property and equipment | 0 | 0 |
Insurance proceeds - damaged property | 0 | |
Change in restricted cash and investments | (40,171) | (1,767) |
Capital expenditures | (483) | (595) |
Net cash used in investing activities | (40,654) | (2,362) |
Cash Flow from Financing Activities: | ||
Proceeds from long-term debt | 0 | 0 |
Payments on long-term debt | 0 | 0 |
Payments on non-recourse debt | (1,613) | (1,645) |
Proceeds from non-recourse debt | 71,242 | 33,019 |
Taxes paid related to net share settlements of equity awards | 0 | 0 |
Proceeds from issuance of common stock in connection with ESPP | 2,357 | 0 |
Debt issuance costs | (1,505) | (1,245) |
Income tax deficiency (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 financing activities | 70,481 | 30,129 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 1,902 | (1,273) |
Net (Decrease) Increase in Cash and Cash Equivalents | (10,894) | 21,523 |
Cash and Cash Equivalents, beginning of period | 22,561 | 22,063 |
Cash and Cash Equivalents, end of period | 11,667 | $ 43,586 |
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 Finan68
Condensed Consolidating Financial Information (Details Textual) | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 19, 2013 |
Debt Instrument [Line Items] | |||
Percentage of subsidiary owned | 100.00% | ||
Senior Notes | 6.625% Senior Notes | |||
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) - USD ($) | Apr. 20, 2016 | Apr. 18, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Feb. 10, 2011 |
Subsequent Event [Line Items] | ||||||
Dividends declared per share | $ 0.65 | $ 0.62 | ||||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Dividends declared per share | $ 0.65 | |||||
Senior Notes | 6.00% Senior Notes Due 2026 | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Senior Notes | $ 350,000,000 | |||||
Interest rate | 6.00% | |||||
Debt Issuance Cost | $ 7,000,000 | |||||
Senior Notes | 6.625% Senior Notes | ||||||
Subsequent Event [Line Items] | ||||||
Senior Notes | $ 300,000,000 | $ 300,000,000 | ||||
Interest rate | 6.625% | 6.625% | ||||
Senior Notes | 6.625% Senior Notes | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Debt instrument, repurchase amount | 231,000,000 | |||||
Loss on extinguishment of debt | $ 16,000,000 | |||||
Senior Notes | 5.125% Senior Notes | ||||||
Subsequent Event [Line Items] | ||||||
Interest rate | 5.125% | 5.125% |