Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(dollars in thousands)

(unaudited)

	For the Three Months Ended June 30, 2015
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	161,365		$	367,482		$	61,521		$	(144,423	)	$	445,945
Operating expenses	141,323			286,414			50,616			(144,423		)	333,930
Depreciation and amortization	6,381			19,182			997			—			26,560
General and administrative expenses	11,049			16,928			4,197			—			32,174
Operating income	2,612			44,958			5,711			—			53,281
Interest income	5,735			847			3,183			(6,897		)	2,868
Interest expense	(15,537		)	(14,743		)	(3,268		)	6,897			(26,651		)
Income before income taxes and equity in earnings of affiliates	(7,190		)	31,062			5,626			—			29,498
Income tax provision (benefit)	(61		)	1,588			842			—			2,369
Equity in earnings of affiliates, net of income tax provision	—			—			1,124			—			1,124
Income (loss) before equity in income of consolidated subsidiaries	(7,129		)	29,474			5,908			—			28,253
Income from consolidated subsidiaries, net of income tax provision	35,382			—			—			(35,382		)	—
Net income	28,253			29,474			5,908			(35,382		)	28,253
Net loss attributable to noncontrolling interests	—			—			38						38
Net income attributable to The GEO Group, Inc.	$	28,253		$	29,474		$	5,946		$	(35,382	)	$	28,291
Net income	$	28,253		$	29,474		$	5,908		$	(35,382	)	$	28,253
Other comprehensive income, net of tax	—			40			4,810			—			4,850
Total comprehensive income	$	28,253		$	29,514		$	10,718		$	(35,382	)	$	33,103
Comprehensive loss attributable to noncontrolling interests	—			—			43			—			43
Comprehensive income attributable to The GEO Group, Inc.	$	28,253		$	29,514		$	10,761		$	(35,382	)	$	33,146

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(dollars in thousands)

(unaudited)

	For the Three Months Ended June 30, 2014
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
Revenues	$	139,083		$	327,427		$	56,760		$	(110,427	)	$	412,843
Operating expenses	111,191			251,833			47,461			(110,427		)	300,058
Depreciation and amortization	6,441			16,169			1,138			—			23,748
General and administrative expenses	9,082			15,355			3,711			—			28,148
Operating income	12,369			44,070			4,450			—			60,889
Interest income	5,079			615			750			(5,620		)	824
Interest expense	(11,123		)	(13,357		)	(1,742		)	5,620			(20,602		)
Income before income taxes and equity in earnings of affiliates	6,325			31,328			3,458			—			41,111
Income tax provision	—			2,671			716			—			3,387
Equity in earnings of affiliates, net of income tax provision	—			—			1,174			—			1,174
Income before equity in income of consolidated subsidiaries	6,325			28,657			3,916			—			38,898
Income from consolidated subsidiaries, net of income tax provision	32,573			—			—			(32,573		)	—
Net income	38,898			28,657			3,916			(32,573		)	38,898
Net income attributable to The GEO Group, Inc.	$	38,898		$	28,657		$	3,916		$	(32,573	)	$	38,898
Net income	$	38,898		$	28,657		$	3,916		$	(32,573	)	$	38,898
Other comprehensive income, net of tax	—			20			621			—			641
Total comprehensive income	$	38,898		$	28,677		$	4,537		$	(32,573	)	$	39,539
Comprehensive loss attributable to noncontrolling interests	—			—			5			—			5
Comprehensive income attributable to The GEO Group, Inc.	$	38,898		$	28,677		$	4,542		$	(32,573	)	$	39,544

CONDENSED CONSOLIDATING BALANCE SHEET

	As of June 30, 2015
	The GEO Group, Inc.			Combined Subsidiary Guarantors		Combined Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	5,852		$	8,013	$	33,179	$	—		$	47,044
Restricted cash and investments	—			—		7,946		—			7,946
Accounts receivable, less allowance for doubtful accounts	105,451			151,966		12,714		—			270,131
Current deferred income tax assets	—			21,694		4,227		—			25,921
Prepaid expenses and other current assets	4,375			19,702		9,749		(1,154		)	32,672
Total current assets	115,678			201,375		67,815		(1,154		)	383,714
Restricted Cash and Investments	131			16,126		4,790		—			21,047
Property and Equipment, Net	747,862			1,088,613		82,791		—			1,919,266
Contract Receivable	—			—		110,176		—			110,176
Direct Finance Lease Receivable	—			—		5,339		—			5,339
Intercompany Receivable	944,769			116,878		—		(1,061,647		)	—
Non-Current Deferred Income Tax Assets	—			—		5,873		—			5,873
Goodwill	90			615,652		438		—			616,180
Intangible Assets, Net	—			233,570		955		—			234,525
Investment in Subsidiaries	1,182,865			217,278		—		(1,400,143		)	—
Other Non-Current Assets	23,555			110,144		51,748		(80,116		)	105,331
Total Assets	$	3,014,950		$	2,599,636	$	329,925	$	(2,543,060	)	$	3,401,451
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable	$	8,058		$	49,975	$	1,534	$	—		$	59,567
Accrued payroll and related taxes	—			30,076		15,037		—			45,113
Accrued expenses and other	42,941			68,924		24,072		(1,154		)	134,783
Current portion of capital lease obligations, long-term debt and non-recourse debt	3,000			1,323		12,499		—			16,822
Total current liabilities	53,999			150,298		53,142		(1,154		)	256,285
Non-Current Deferred Income Tax Liabilities	(4,670		)	20,434		5		—			15,769
Intercompany Payable	100,410			953,347		7,890		(1,061,647		)	—
Other Non-Current Liabilities	4,104			143,356		18,575		(80,116		)	85,919
Capital Lease Obligations	—			9,286		—		—			9,286
Long-Term Debt	1,844,763			—		—		—			1,844,763
Non-Recourse Debt	—			—		172,852		—			172,852
Commitments & Contingencies and Other
Shareholders' Equity:
The GEO Group, Inc. Shareholders' Equity	1,016,344			1,322,915		77,228		(1,400,143		)	1,016,344
Noncontrolling Interests	—			—		233		—			233
Total Shareholders’ Equity	1,016,344			1,322,915		77,461		(1,400,143		)	1,016,577
Total Liabilities and Shareholders' Equity	$	3,014,950		$	2,599,636	$	329,925	$	(2,543,060	)	$	3,401,451

CONDENSED CONSOLIDATING BALANCE SHEET

(dollars in thousands)

	As of December 31, 2014
	The GEO Group, Inc.			Combined Subsidiary Guarantors		Combined Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	18,492		$	782	$	22,063		$	—		$	41,337
Restricted cash and investments	—			—		4,341			—			4,341
Accounts receivable, less allowance for doubtful accounts	92,456			159,505		17,077			—			269,038
Current deferred income tax assets	—			21,657		4,227			—			25,884
Prepaid expenses and other current assets	7,022			19,593		11,345			(1,154		)	36,806
Total current assets	117,970			201,537		59,053			(1,154		)	377,406
Restricted Cash and Investments	228			13,729		5,621			—			19,578
Property and Equipment, Net	726,238			961,896		84,032			—			1,772,166
Direct Finance Lease Receivable	—			—		9,256			—			9,256
Contract Receivable	—			—		66,229						66,229
Intercompany Receivable	962,314			119,414		—			(1,081,728		)	—
Non-Current Deferred Income Tax Assets	—			—		5,873			—			5,873
Goodwill	34			493,389		467			—			493,890
Intangible Assets, Net	—			154,237		1,038			—			155,275
Investment in Subsidiaries	855,870			438,243		—			(1,294,113		)	—
Other Non-Current Assets	25,635			110,105		46,838			(80,043		)	102,535
Total Assets	$	2,688,289		$	2,492,550	$	278,407		$	(2,457,038	)	$	3,002,208
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable	$	7,549		$	47,130	$	3,476		$	—		$	58,155
Accrued payroll and related taxes	—			24,184		14,372			—			38,556
Accrued expenses and other	47,637			75,574		18,555			(1,154		)	140,612
Current portion of capital lease obligations, long-term debt and non-recourse debt	3,001			1,170		12,581			—			16,752
Total current liabilities	58,187			148,058		48,984			(1,154		)	254,075
Non-Current Deferred Income Tax Liabilities	(4,095		)	14,170		(7		)	—			10,068
Intercompany Payable	121,327			942,071		18,330			(1,081,728		)	—
Other Non-Current Liabilities	4,372			143,584		19,507			(80,034		)	87,429
Capital Lease Obligations	—			9,856		—			—			9,856
Long-Term Debt	1,462,819			—		—			—			1,462,819
Non-Recourse Debt	—			—		131,968			—			131,968
Commitments & Contingencies and Other
Shareholders' Equity:
The GEO Group, Inc. Shareholders' Equity	1,045,679			1,234,811		59,311			(1,294,122		)	1,045,679
Noncontrolling Interests	—			—		314			—			314
Total Shareholders’ Equity	1,045,679			1,234,811		59,625			(1,294,122		)	1,045,993
Total Liabilities and Shareholders' Equity	$	2,688,289		$	2,492,550	$	278,407		$	(2,457,038	)	$	3,002,208

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

	For the Six Months Ended June 30, 2015
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Consolidated
Cash Flow from Operating Activities:
Net cash provided by (used in) operating activities	$	39,103		$	62,486		$	(21,791	)	$	79,798
Cash Flow from Investing Activities:
Acquisition of SoberLink, cash consideration				(24,402		)				(24,402		)
Acquisition of LCS, net of cash acquired	(307,403		)	—			—			(307,403		)
Proceeds from sale of property and equipment	—			123			—			123
Insurance proceeds - damaged property	—			901			—			901
Change in restricted cash and investments	(97		)	2,396			(7,716		)	(5,417		)
Capital expenditures	(36,367		)	(34,273		)	(1,054		)	(71,694		)
Net cash used in investing activities	(343,867		)	(55,255		)	(8,770		)	(407,892		)
Cash Flow from Financing Activities:
Proceeds from long-term debt	518,000			—			—			518,000
Payments on long-term debt	(134,744		)	—			—			(134,744		)
Payments on non-recourse debt	—			—			(4,513		)	(4,513		)
Proceeds from non-recourse debt	—			—			49,731			49,731
Taxes paid related to net share settlements of equity awards	(1,784		)	—			—			(1,784		)
Proceeds from reissuance of treasury stock in connection with ESPP	218			—			—			218
Debt issuance costs	—			—			(2,438		)	(2,438		)
Tax benefit related to equity compensation	651			—			—			651
Proceeds from stock options exercised	2,037			—			—			2,037
Cash dividends paid	(92,254		)	—			—			(92,254		)
Net cash provided by financing activities	292,124			—			42,780			334,904
Effect of Exchange Rate Changes on Cash and Cash Equivalents	—			—			(1,103		)	(1,103		)
Net Increase (Decrease) in Cash and Cash Equivalents	(12,640		)	7,231			11,116			5,707
Cash and Cash Equivalents, beginning of period	18,492			782			22,063			41,337
Cash and Cash Equivalents, end of period	$	5,852		$	8,013		$	33,179		$	47,044

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(dollars in thousands)

(unaudited)

	For the Six Months Ended June 30, 2014
	The GEO Group, Inc.			Combined Subsidiary Guarantors			Combined Non-Guarantor Subsidiaries			Consolidated
Cash Flow from Operating Activities:
Net cash provided by operating activities	$	76,863		$	33,090		$	22,191		$	132,144
Cash Flow from Investing Activities:
Proceeds from sale of property and equipment	—			514			—			514
Acquisition of Protocol, cash consideration	—			(13,000		)	—			(13,000		)
Change in restricted cash and investments	(207		)	(1,917		)	(6,812		)	(8,936		)
Capital expenditures	(24,197		)	(16,671		)	(254		)	(41,122		)
Net cash used in investing activities	(24,404		)	(31,074		)	(7,066		)	(62,544		)
Cash Flow from Financing Activities:
Proceeds from long-term debt	9,000			—			—			9,000
Payments on long-term debt	(14,000		)	(82		)	(3,097		)	(17,179		)
Indirect repurchases of treasury shares	(1,416		)	—			—			(1,416		)
Proceeds from reissuance of treasury stock in connection with ESPP	185			—			—			185
Tax benefit related to equity compensation	1,351			—			—			1,351
Proceeds from stock options exercised	5,531			—			—			5,531
Cash dividends paid	(82,656		)	—			—			(82,656		)
Net cash used in financing activities	(82,005		)	(82		)	(3,097		)	(85,184		)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	—			—			819			819
Net Increase (Decrease) in Cash and Cash Equivalents	(29,546		)	1,934			12,847			(14,765		)
Cash and Cash Equivalents, beginning of period	30,730			985			20,410			52,125
Cash and Cash Equivalents, end of period	$	1,184		$	2,919		$	33,257		$	37,360