Financial Instruments

3 Months Ended

Mar. 31, 2022

Financial Instruments Financial Assets Balance Sheet Groupings [Abstract]

Financial Instruments

3. 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, 2022 and December 31, 2021 (in thousands):

			Fair Value Measurements at March 31, 2022
	Carrying Value at March 31, 2022		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Restricted investments:
Rabbi Trust	$	40,752	$	—	$	40,752	$	—
Marketable equity and fixed income securities		17,845		—		17,845		—
Liabilities:
Interest rate swap derivatives	$	76	$	—	$	76	$	—

			Fair Value Measurements at December 31, 2021
	Carrying Value at December 31, 2021		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Restricted investments:
Rabbi Trust	$	42,937	$	—	$	42,937	$	—
Marketable equity and fixed income securities		11,551	$	—		11,551		—
Fixed income securities		1,927		—		1,927		—
Liabilities:
Interest rate swap derivatives	$	3,195	$	—	$	3,195	$	—

The Company’s Level 2 financial instruments included in the tables above as of March 31, 2022 and December 31, 2021 consist of interest rate swap derivative liabilities held by GEO, investments in equity and fixed income mutual funds held in the Company’s captive insurance subsidiary, Florina, the Company's rabbi trust established for a 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 interest rate swap derivative liabilities are valued using a discounted cash flow model based on projected 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 accounts. 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, which are not actively traded, are valued using quoted rates for these and similar securities. The Company no longer has an investment in Canadian dollar denominated securities as of March 31, 2022.