Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 03, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | GEO GROUP INC | |
Entity Central Index Key | 0000923796 | |
Document Type | 10-Q | |
Trading Symbol | GEO | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 121,205,405 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Revenues | $ 610,667 | $ 564,917 |
Operating expenses | 456,997 | 426,709 |
Depreciation and amortization | 32,469 | 31,926 |
General and administrative expenses | 46,424 | 41,832 |
Operating income | 74,777 | 64,450 |
Interest income | 8,396 | 9,099 |
Interest expense | (40,280) | (35,869) |
Income before income taxes and equity in earnings of affiliates | 42,893 | 37,680 |
Provision for income taxes | 4,840 | 4,755 |
Equity in earnings of affiliates, net of income tax provision of $359 and $706, respectively | 2,596 | 1,995 |
Net income | 40,649 | 34,920 |
Net loss attributable to noncontrolling interests | 56 | 67 |
Net income attributable to The GEO Group, Inc. | $ 40,705 | $ 34,987 |
Weighted-average common shares outstanding: | ||
Basic (in shares) | 118,774 | 121,768 |
Diluted (in shares) | 119,496 | 122,304 |
Basic: | ||
Net income per common share attributable to The GEO Group, Inc. - basic (in dollars per share) | $ 0.34 | $ 0.29 |
Diluted: | ||
Net income per common share attributable to The GEO Group, Inc. - diluted (in dollars per share) | 0.34 | 0.29 |
Dividends declared per share (in dollars per share) | $ 0.48 | $ 0.47 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Income tax provision on equity in earnings of affiliates | $ 359 | $ 706 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Net income | $ 40,649 | $ 34,920 |
Other comprehensive income, net of tax: | ||
Foreign currency translation adjustments | 1,736 | 521 |
Pension liability adjustment, net of tax provision of $11 and $28, respectively | (648) | 105 |
Change in fair value of derivative instrument classified as cash flow hedge, net of tax provision of $205 and $130, respectively | 1,164 | 736 |
Total other comprehensive income, net of tax | 2,252 | 1,362 |
Total comprehensive income | 42,901 | 36,282 |
Comprehensive loss attributable to noncontrolling interests | 56 | 59 |
Comprehensive income attributable to The GEO Group, Inc. | $ 42,957 | $ 36,341 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Tax provision on defined benefit pension plans | $ 11 | $ 28 |
Tax provision on loss on derivative instrument classified as a cash flow hedge | $ 205 | $ 130 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 67,728 | $ 31,255 |
Restricted cash and cash equivalents | 53,749 | 51,678 |
Accounts receivable, less allowance for doubtful accounts of $4,276 and $4,183, respectively | 423,596 | 445,526 |
Contract receivable, current portion | 16,005 | 15,535 |
Prepaid expenses and other current assets | 43,535 | 57,768 |
Total current assets | 604,613 | 601,762 |
Restricted Cash and Investments | 27,282 | 22,431 |
Property and Equipment, Net | 2,150,627 | 2,158,610 |
Assets Held for Sale | 4,607 | 2,634 |
Contract Receivable | 368,698 | 368,178 |
Operating Lease Right-of-Use Assets, Net | 133,365 | 0 |
Deferred Income Tax Assets | 29,924 | 29,924 |
Goodwill | 776,361 | 776,359 |
Intangible Assets, Net | 226,782 | 232,360 |
Other Non-Current Assets | 61,807 | 65,860 |
Total Assets | 4,384,066 | 4,258,118 |
Current Liabilities | ||
Accounts payable | 93,458 | 93,032 |
Accrued payroll and related taxes | 58,079 | 76,009 |
Accrued expenses and other current liabilities | 189,174 | 204,170 |
Operating lease liabilities, current portion | 35,210 | 0 |
Current portion of finance lease liabilities, long-term debt and non-recourse debt | 332,864 | 332,027 |
Total current liabilities | 708,785 | 705,238 |
Deferred Income Tax Liabilities | 13,681 | 13,681 |
Other Non-Current Liabilities | 79,734 | 82,481 |
Operating Lease Liabilities | 102,238 | 0 |
Finance Lease Liabilities | 4,179 | 4,570 |
Long-Term Debt | 2,433,433 | 2,397,227 |
Non-Recourse Debt | 15,112 | 15,017 |
Commitments, Contingencies and Other (Note 12) | ||
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, 187,500,000 shares authorized, 125,397,214 and 124,794,986 issued and 121,186,960 and 120,584,732 outstanding, respectively | 1,254 | 1,248 |
Additional paid-in capital | 1,213,922 | 1,210,916 |
Distributions in excess of earnings | (71,076) | (52,868) |
Accumulated other comprehensive loss | (21,366) | (23,618) |
Treasury stock, 4,210,254 and 4,210,254 shares, at cost, respectively | (95,175) | (95,175) |
Total shareholders’ equity attributable to The GEO Group, Inc. | 1,027,559 | 1,040,503 |
Noncontrolling interests | (655) | (599) |
Total shareholders’ equity | 1,026,904 | 1,039,904 |
Total Liabilities and Shareholders’ Equity | $ 4,384,066 | $ 4,258,118 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 4,276 | $ 4,183 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 187,500,000 | 187,500,000 |
Common stock, shares issued (in shares) | 125,397,214 | 124,794,986 |
Common stock, shares outstanding (in shares) | 121,186,960 | 120,584,732 |
Treasury stock, shares (in shares) | 4,210,254 | 4,210,254 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash Flow from Operating Activities: | ||
Net income | $ 40,649 | $ 34,920 |
Net loss attributable to noncontrolling interests | 56 | 67 |
Net income attributable to The GEO Group, Inc. | 40,705 | 34,987 |
Adjustments to reconcile net income attributable to The GEO Group, Inc. to net cash provided by operating activities: | ||
Depreciation and amortization expense | 32,469 | 31,926 |
Stock-based compensation | 6,727 | 5,827 |
Amortization of debt issuance costs, discount and/or premium and other non-cash interest | 2,563 | 2,138 |
Provision for doubtful accounts | 131 | 195 |
Equity in earnings of affiliates, net of tax | (2,596) | (1,995) |
Dividends received from unconsolidated joint venture | 3,088 | 736 |
Loss on sale/disposal of property and equipment, net | 697 | (350) |
Loss on assets held for sale | 1,083 | 0 |
Changes in assets and liabilities, net of effects of acquisitions: | ||
Changes in accounts receivable, prepaid expenses and other assets | 27,527 | 7,525 |
Changes in contract receivable | 1,446 | 6,298 |
Changes in accounts payable, accrued expenses and other liabilities | (14,829) | (17,601) |
Net cash provided by operating activities | 99,011 | 69,686 |
Cash Flow from Investing Activities: | ||
Insurance proceeds - damaged property | 2,503 | 4,504 |
Proceeds from sale of property and equipment | 274 | 0 |
Proceeds from sale of assets held for sale | 0 | 3,797 |
Change in restricted investments | (4,062) | (505) |
Capital expenditures | (28,084) | (52,147) |
Net cash used in investing activities | (29,369) | (44,351) |
Cash Flow from Financing Activities: | ||
Proceeds from long-term debt | 130,000 | 102,000 |
Payments on long-term debt | (96,926) | (43,000) |
Payments on non-recourse debt | (2,089) | (5,600) |
Taxes paid related to net share settlements of equity awards | (4,172) | (4,356) |
Proceeds from issuance of common stock in connection with ESPP | 124 | 140 |
Payment for repurchases of common stock | 0 | (40,182) |
Proceeds from the exercise of stock options | 333 | 260 |
Cash dividends paid | (57,945) | (58,238) |
Net cash used in financing activities | (30,675) | (48,976) |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash and Cash Equivalents | 366 | (655) |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash and Cash Equivalents | 39,333 | (24,296) |
Cash, Cash Equivalents and Restricted Cash and Cash Equivalents, beginning of period | 84,472 | 133,545 |
Cash, Cash Equivalents and Restricted Cash and Cash Equivalents, end of period | 123,805 | 109,249 |
Non-cash Investing and Financing activities: | ||
Right-of-use assets obtained from operating lease liabilities upon adoption of new lease standard (Refer to Note 2 - Leases) | 147,000 | 0 |
Capital expenditures in accounts payable and accrued expenses | $ 5,081 | $ 1,814 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
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 'GEO Continuum of Care' program integrates enhanced in-prison programs, which are evidence-based and include cognitive behavioral treatment and post-release services, and provides academic and vocational classes in life skills and treatment programs while helping individuals reintegrate into their communities. 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”). At March 31, 2019, the Company’s worldwide operations include the management and/or ownership of approximately 95,000 beds at 134 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 210,000 offenders and pretrial defendants, including approximately 100,000 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, 2019 for the year ended December 31, 2018 . The accompanying December 31, 2018 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, 2018 . Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period financial statements. These reclassifications had no effect on the previously reported financial position, results of operations or cash flows. 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, 2019 are not necessarily indicative of the results for the entire year ending December 31, 2019 , or for any other future interim or annual periods. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | LEASES On January 1, 2019, the Company adopted Accounting Standard Update ("ASU") No. 2016-02, "Leases" (Topic 842) which requires that entities record lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. The Company implemented the new standard using the transition method that provided for adoption on the adoption date and recognizing a cumulative-effect adjustment to retained earnings, if any, upon adoption. Therefore, the consolidated financial statements for the three months ended March 31, 2019 are presented under the new standard, while comparative years presented are not adjusted and continue to be reported in accordance with the Company's historical accounting policy. Refer to Note 15 - Recent Accounting Pronouncements for further information. The Company has operating and finance leases for facilities, ground leases, office space, computers, copier equipment and transportation vehicles that have remaining lease terms of one year to seventy-seven years, some of which include options to extend the lease for up to ten years. For leases with terms greater than 12 months, the Company records the related asset and obligation at the present value of the lease payments over the term of the lease. Many of GEO's leases include rental escalation clauses, renewal options and/or termination options that are factored into the determination of lease payments when appropriate. Only renewal or termination options that are reasonably certain to be exercised by the Company are included in the lease term which is used in the calculation of lease liabilities and right-of-use assets. GEO does not typically enter into lease agreements that contain a residual guarantee or that provide for variable lease payments. When available, GEO uses the rate implicit in the lease to discount lease payments to present value, however, most of GEO's lease agreements do not provide a readily determinable implicit rate. Therefore, the Company must estimate its incremental borrowing rate to discount the lease payments based on information available at lease commencement. Lease related assets and liabilities are recorded on the balance sheet as follows (in thousands): Classification on the Balance Sheet March 31, 2019 Assets Operating lease assets Operating Lease Right-of-Use Assets, Net $ 133,365 Finance lease assets Property and Equipment, Net 3,647 Total lease assets $ 137,012 Liabilities Current Operating Operating lease liabilities, current portion $ 35,210 Finance [1] Current portion of finance liabilities, long-term debt and non-recourse debt 1,519 Noncurrent Operating Operating Lease Liabilities 102,238 Finance [1] Finance Lease Liabilities 4,179 Total lease liabilities $ 143,146 [1] Also refer to Note 11 - Debt. Certain information related to the lease costs for finance and operating leases is presented as follows (in thousands): Three Months Ended March 31, 2019 Operating lease cost $ 12,492 Finance lease cost: Amortization of right-of-use assets 256 Interest on lease liabilities 113 Total finance lease cost 369 Short-term lease cost 1,915 Total Lease Cost $ 14,776 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 12,616 Operating cash flows for finance leases $ 113 Financing activities for finance leases $ 394 Right-of-use assets obtained in exchange for new operating lease liabilties $ 3,164 Weighted average remaining lease term: Operating leases 7.3 years Finance leases 3.4 years Weighted average discount rate: Operating leases [1] 4.71 % Finance leases 8.27 % [1] Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019. Undiscounted Cash Flows The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities and finance lease liabilities recorded on the balance sheet as of March 31, 2019 (in thousands). Operating Leases Finance Leases 2019 $ 31,919 $ 1,450 2020 30,134 1,934 2021 21,376 1,936 2022 16,054 1,234 2023 13,430 — Thereafter 51,675 — Total minimum lease payments 164,588 6,554 Less: amount of lease payment representing interest (27,140 ) (856 ) Present value of future minimum lease payments 137,448 5,698 Less: current obligations under leases (35,210 ) (1,519 ) Long-term lease obligations $ 102,238 $ 4,179 |
Leases | LEASES On January 1, 2019, the Company adopted Accounting Standard Update ("ASU") No. 2016-02, "Leases" (Topic 842) which requires that entities record lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. The Company implemented the new standard using the transition method that provided for adoption on the adoption date and recognizing a cumulative-effect adjustment to retained earnings, if any, upon adoption. Therefore, the consolidated financial statements for the three months ended March 31, 2019 are presented under the new standard, while comparative years presented are not adjusted and continue to be reported in accordance with the Company's historical accounting policy. Refer to Note 15 - Recent Accounting Pronouncements for further information. The Company has operating and finance leases for facilities, ground leases, office space, computers, copier equipment and transportation vehicles that have remaining lease terms of one year to seventy-seven years, some of which include options to extend the lease for up to ten years. For leases with terms greater than 12 months, the Company records the related asset and obligation at the present value of the lease payments over the term of the lease. Many of GEO's leases include rental escalation clauses, renewal options and/or termination options that are factored into the determination of lease payments when appropriate. Only renewal or termination options that are reasonably certain to be exercised by the Company are included in the lease term which is used in the calculation of lease liabilities and right-of-use assets. GEO does not typically enter into lease agreements that contain a residual guarantee or that provide for variable lease payments. When available, GEO uses the rate implicit in the lease to discount lease payments to present value, however, most of GEO's lease agreements do not provide a readily determinable implicit rate. Therefore, the Company must estimate its incremental borrowing rate to discount the lease payments based on information available at lease commencement. Lease related assets and liabilities are recorded on the balance sheet as follows (in thousands): Classification on the Balance Sheet March 31, 2019 Assets Operating lease assets Operating Lease Right-of-Use Assets, Net $ 133,365 Finance lease assets Property and Equipment, Net 3,647 Total lease assets $ 137,012 Liabilities Current Operating Operating lease liabilities, current portion $ 35,210 Finance [1] Current portion of finance liabilities, long-term debt and non-recourse debt 1,519 Noncurrent Operating Operating Lease Liabilities 102,238 Finance [1] Finance Lease Liabilities 4,179 Total lease liabilities $ 143,146 [1] Also refer to Note 11 - Debt. Certain information related to the lease costs for finance and operating leases is presented as follows (in thousands): Three Months Ended March 31, 2019 Operating lease cost $ 12,492 Finance lease cost: Amortization of right-of-use assets 256 Interest on lease liabilities 113 Total finance lease cost 369 Short-term lease cost 1,915 Total Lease Cost $ 14,776 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 12,616 Operating cash flows for finance leases $ 113 Financing activities for finance leases $ 394 Right-of-use assets obtained in exchange for new operating lease liabilties $ 3,164 Weighted average remaining lease term: Operating leases 7.3 years Finance leases 3.4 years Weighted average discount rate: Operating leases [1] 4.71 % Finance leases 8.27 % [1] Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019. Undiscounted Cash Flows The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities and finance lease liabilities recorded on the balance sheet as of March 31, 2019 (in thousands). Operating Leases Finance Leases 2019 $ 31,919 $ 1,450 2020 30,134 1,934 2021 21,376 1,936 2022 16,054 1,234 2023 13,430 — Thereafter 51,675 — Total minimum lease payments 164,588 6,554 Less: amount of lease payment representing interest (27,140 ) (856 ) Present value of future minimum lease payments 137,448 5,698 Less: current obligations under leases (35,210 ) (1,519 ) Long-term lease obligations $ 102,238 $ 4,179 |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 and December 31, 2018 (in thousands): Fair Value Measurements at March 31, 2019 Carrying Value at March 31, 2019 Quoted Prices in Active Markets (Level 1) Significant Other Significant Unobservable Inputs (Level 3) Assets: Restricted investment: Rabbi Trust $ 24,954 $ — $ 24,954 $ — Fixed income securities 1,848 — 1,848 — Liabilities: Interest rate swap derivatives $ 5,393 $ — $ 5,393 $ — Fair Value Measurements at December 31, 2018 Carrying Value at December 31, 2018 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Restricted investments: Rabbi Trust $ 20,892 $ — $ 20,892 $ — Fixed income securities 1,801 — 1,801 — Liabilities: Interest rate swap derivatives $ 8,638 $ — $ 8,638 $ — The Company’s Level 2 financial instruments included in the tables above as of March 31, 2019 and December 31, 2018 consist of interest rate swap derivative liabilities 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 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. During the three months ended March 31, 2019, the Company transferred certain accounts receivable balances that had a carrying value of approximately $3.0 million to an unrelated third party. The transfer was accounted for as a sale and the Company has no continuing involvement with the transferred assets. The Company received cash proceeds in connection with the sale of approximately $3.0 million , and as such, there was no gain or loss in connection with the transaction. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
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 various 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, 2018 to March 31, 2019 are as follows (in thousands): December 31, 2018 Acquisition Adjustments Foreign Currency Translation March 31, 2019 U.S. Corrections & Detention $ 316,366 $ — $ — $ 316,366 GEO Care 459,589 — — 459,589 International Services 404 — 2 406 Total Goodwill $ 776,359 $ — $ 2 $ 776,361 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 facility management contracts, covenants not to compete, trade names and technology, as follows (in thousands): March 31, 2019 December 31, 2018 Weighted Average Useful Life (years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Facility management contracts 16.3 $ 308,516 $ (132,753 ) $ 175,763 $ 308,419 $ (127,481 ) $ 180,938 Covenants not to compete 1 — — — 700 (700 ) — Technology 7.3 33,700 (27,881 ) 5,819 33,700 (27,478 ) 6,222 Trade name (Indefinite lived) Indefinite 45,200 — 45,200 45,200 — 45,200 Total acquired intangible assets $ 387,416 $ (160,634 ) $ 226,782 $ 388,019 $ (155,659 ) $ 232,360 Amortization expense was $5.6 million and $6.1 million for the three months ended March 31, 2019 and 2018, 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, 2019 , the weighted average period before the next contract renewal or extension for the acquired facility management contracts was approximately 1.5 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 2019 through 2023 and thereafter is as follows (in thousands): Fiscal Year Total Amortization Expense Remainder of 2019 $ 16,522 2020 22,306 2021 19,782 2022 18,273 2023 13,632 Thereafter 91,067 $ 181,582 |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 and December 31, 2018 (in thousands): Estimated Fair Value Measurements at March 31, 2019 Carrying Value as of March 31, 2019 Total Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 67,728 $ 67,728 $ 67,728 $ — $ — Restricted cash and investments 56,077 56,077 53,148 2,929 — Liabilities: Borrowings under senior credit facility $ 1,311,175 $ 1,252,400 $ — $ 1,252,400 $ — 5.875% Senior Notes due 2024 250,000 219,278 — 219,278 — 5.125% Senior Notes 300,000 266,034 — 266,034 — 5.875% Senior Notes due 2022 250,000 242,853 — 242,853 — 6.00% Senior Notes 350,000 294,914 — 294,914 — Non-recourse debt 341,196 341,595 — 341,595 — Estimated Fair Value Measurements at December 31, 2018 Carrying Value as of December 31, 2018 Total Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 31,255 $ 31,255 $ 31,255 $ — $ — Restricted cash and investments 53,217 53,217 49,884 2,284 — Liabilities: Borrowings under senior credit facility $ 1,273,965 $ 1,188,196 $ — $ 1,188,196 $ — 5.875% Senior Notes due 2024 250,000 224,590 — 224,590 — 5.125% Senior Notes 300,000 271,992 — 271,992 — 5.875% Senior Notes due 2022 250,000 244,550 — 244,550 — 6.00% Senior Notes 350,000 310,177 — 310,177 — Non-recourse debt 340,910 348,274 — 348,274 — The fair values of the Company’s cash and cash equivalents, and restricted cash approximates the carrying values of these assets at March 31, 2019 and December 31, 2018 . Restricted cash consists of money market funds, bank deposits, commercial paper and time deposits used for asset replacement funds and other funds contractually required to be maintained at the Company's Australian subsidiary. The fair value of the money market funds and bank deposits is based on quoted market prices (Level 1) and the fair value of commercial paper and time deposits is based on market prices for similar instruments (Level 2). The fair values of the Company's 5.875% senior unsecured notes due 2022 ("5.875% Senior Notes due 2022"), 5.875% senior unsecured notes due 2024 (" 5.875% Senior Notes due 2024"), 6.00% senior unsecured notes due 2026 (“6.00% 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") and the Company’s Australian subsidiary are estimated based on market prices of 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. |
Restricted Cash and Cash Equiva
Restricted Cash and Cash Equivalents | 3 Months Ended |
Mar. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash and Cash Equivalents | RESTRICTED CASH AND CASH EQUIVALENTS The following table provides a reconciliation of cash, cash equivalents and restricted cash and cash equivalents reported on the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows: March 31, 2019 March 31, 2018 Cash and Cash Equivalents $ 67,728 $ 49,235 Restricted cash and cash equivalents - current 53,749 56,888 Restricted cash and investments - non-current 27,282 24,394 Less Restricted investments - non-current (24,954 ) (21,268 ) Total cash, cash equivalents and restricted cash and cash equivalents shown in the statement of cash flows $ 123,805 $ 109,249 Amounts included in restricted cash and cash equivalents are attributable to certain contractual cash restriction requirements at the Company's wholly owned Australian subsidiary related to non-recourse debt and asset replacement funds contractually required to be maintained and other guarantees. Restricted investments - non-current (included in Restricted Cash and Investments in the accompanying consolidated balance sheets) consists of the Company's rabbi trust established for employee and employer contributions to The GEO Group, Inc. Non-qualified Deferred Compensation Plan and is not considered to be a restricted cash equivalent. Refer to Note 4 - Financial Instruments. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
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 for the three months ended March 31, 2019 and 2018 (in thousands): Common shares Additional Paid-In Distributions in Excess of Accumulated Other Comprehensive Treasury shares Noncontrolling Total Shareholders' Shares Amount Capital Earnings Loss Shares Amount Interests Equity Balance, January 1, 2019 120,585 $ 1,248 $ 1,210,916 $ (52,868 ) $ (23,618 ) 4,210 $ (95,175 ) $ (599 ) $ 1,039,904 Proceeds from exercise of stock options 22 — 333 — — — — — 333 Stock-based compensation expense — — 6,727 — — — — — 6,727 Restricted stock granted 778 8 (8 ) — — — — — Restricted stock canceled (6 ) — — — — — — — — Dividends paid — — — (57,945 ) — — — — (57,945 ) Shares withheld for net settlements of share-based awards [1] (198 ) (2 ) (4,170 ) — — — — — (4,172 ) Issuance of common stock - ESPP 6 — 124 — — — — — 124 Transition adjustment for accounting standard adoption [2] — — — (968 ) 968 — — — — Net income (loss) — — — 40,705 — — — (56 ) 40,649 Other comprehensive income — — — — 1,284 — — — 1,284 Balance, March 31, 2019 121,187 $ 1,254 $ 1,213,922 $ (71,076 ) $ (21,366 ) 4,210 $ (95,175 ) $ (655 ) $ 1,026,904 Common shares Additional Earnings in Excess of Accumulated Treasury shares Noncontrolling Total Shares Amount Capital Distributions Loss Shares Amount Interests Equity Balance, January 1, 2018 124,008 $ 1,240 $ 1,190,906 $ 31,541 $ (24,446 ) — — $ (322 ) $ 1,198,919 Proceeds from exercise of stock options 15 1 260 — — — — — — 261 Stock-based compensation expense — — 5,827 — — — — — — 5,827 Restricted stock canceled (9 ) — — — — — — — — — Dividends paid — — — (58,319 ) — — — — (58,319 ) Shares withheld for net settlements of share-based awards [1] (169 ) (2 ) (4,355 ) — — — — — — (4,357 ) Issuance of common stock - ESPP 8 — 141 — — — — — — 141 Repurchases of common stock (1,848 ) — — — — — 1,848 (40,182 ) — (40,182 ) Net income (loss) — — — 34,987 — — — (67 ) 34,920 Other comprehensive income — — — — 1,354 — — 8 1,362 Balance, March 31, 2018 122,005 $ 1,239 $ 1,192,779 $ 8,209 $ (23,092 ) 1,848 $ (40,182 ) $ (381 ) $ 1,138,572 [1] During the three months ended March 31, 2019 and 2018, the Company withheld shares through net share settlements to satisfy statutory tax withholding requirements upon vesting of shares of restricted stock held by employees. [2] On January 1, 2019, the Company adopted Accounting Standard Update ("ASU") No. 2018-02 " Income Statement-Reporting Comprehensive Income-Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ". Refer to Note 15 - Recent Accounting Pronouncements for further information. 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, 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, 2019 and the year ended December 31, 2018 GEO declared and paid the following regular cash distributions to its shareholders as follows: Declaration Date Record Date Payment Date Distribution Per Share Aggregate Payment Amount (in millions) February 5, 2018 February 16, 2018 February 27, 2018 $0.47 $58.3 April 11, 2018 April 23, 2018 May 3, 2018 $0.47 $57.4 July 10, 2018 July 20, 2018 July 27, 2018 $0.47 $57.2 October 15, 2018 October 26, 2018 November 2, 2018 $0.47 $57.2 February 4, 2019 February 15, 2019 February 22, 2019 $0.48 $57.9 Stock Buyback Program On February 14, 2018, the Company announced that its Board authorized a stock buyback program authorizing the Company to repurchase up to a maximum of $200.0 million of its shares of common stock. The stock buyback program will be funded primarily with cash on hand, free cash flow and borrowings under the Company's $900 million revolving credit facility (the "Revolver"). The program is effective through October 20, 2020. The stock buyback program is intended to be implemented through purchases made from time to time in the open market or in privately negotiated transactions, in accordance with applicable Securities and Exchange Commission ("SEC") requirements. The stock buyback program does not obligate the Company to purchase any specific amount of the Company's common stock and may be suspended or extended at any time at the discretion of the Company's Board. There were no repurchases of shares of the Company's common stock during the three months ended March 31, 2019. The Company believes it has the ability to continue to fund the stock buyback program, its debt service requirements and its maintenance and growth capital expenditure requirements, while maintaining sufficient liquidity for other corporate purposes. Prospectus Supplement On October 20, 2017, the Company filed with the SEC an automatic shelf registration on Form S-3. Under this shelf registration, the Company may, from time to time, sell any combination of securities described in the prospectus in one or more offerings. Each time that the Company may sell securities, the Company will provide a prospectus supplement that will contain specific information about the terms of that offering and the securities being offered. On November 9, 2017, in connection with the shelf registration, the Company filed with the SEC 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 $150 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 common stock sold under this prospectus supplement during the three months ended March 31, 2019. 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, 2019 (In thousands) Foreign currency translation adjustments, net of tax attributable to The GEO Group, Inc. (1) Change in fair value of derivatives, net of tax Pension adjustments, net of tax Total Balance, January 1, 2019 $ (14,573 ) $ (5,746 ) $ (3,299 ) $ (23,618 ) Current-period other comprehensive (loss) income 1,736 1,164 (648 ) 2,252 Balance, March 31, 2019 $ (12,837 ) $ (4,582 ) $ (3,947 ) $ (21,366 ) (1) The foreign currency translation related to noncontrolling interests was not significant at March 31, 2019 or December 31, 2018 . Three Months Ended March 31, 2018 (In thousands) Foreign currency translation adjustments, net of tax attributable to The GEO Group, Inc. (1) Change in fair value of derivatives, net of tax Pension adjustments, net of tax Total Balance, January 1, 2018 (7,470 ) (11,892 ) (5,084 ) (24,446 ) Current-period other comprehensive (loss) income 513 736 105 1,354 Balance, March 31, 2018 (6,957 ) (11,156 ) (4,979 ) (23,092 ) 1) The foreign currency translation related to noncontrolling interests was not significant at March 31, 2018 or December 31, 2017. |
Equity Incentive Plans
Equity Incentive Plans | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity Incentive Plans | EQUITY INCENTIVE PLANS The Board has adopted The GEO Group, Inc. 2018 Stock Incentive Plan (the "2018 Plan"), which was approved by the Company's shareholders on April 24, 2018. The 2018 Plan replaced the 2014 Stock Incentive Plan (the "2014 Plan"). As of the date the 2018 Plan was adopted, it provided for a reserve of 4,600,000 shares of common stock that may be issued pursuant to awards granted under the 2018 Plan. The Company filed a Form S-8 registration statement related to the 2018 Plan on May 11, 2018. Stock Options The Company uses a Black-Scholes option valuation model to estimate the fair value of each time based or performance based option awarded. For options granted during the three months ended March 31, 2019 , the fair value was estimated using the following assumptions: (i) volatility of 40.69% ; (ii) expected term of 5.0 years; (iii) risk free interest rate of 2.44% ; and (iv) expected dividend yield of 8.47% . A summary of the activity of stock option awards issued and outstanding under Company plans was as follows for the three months ended March 31, 2019 : Shares Wtd. Avg. Exercise Price Wtd. Avg. Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) (in thousands) Options outstanding at January 1, 2019 1,462 $ 24.30 7.20 $ 924 Options granted 379 22.68 Options exercised (22 ) 14.83 Options forfeited/canceled/expired (55 ) 25.43 Options outstanding at March 31, 2019 1,764 $ 24.06 7.61 $ 700 Options vested and expected to vest at March 31, 2019 1,642 $ 24.11 7.49 $ 700 Options exercisable at March 31, 2019 896 $ 24.42 6.18 $ 700 On March 1, 2019, the Company granted approximately 379,000 options to certain employees which had a per share grant date fair value of $3.96 . For the three months ended March 31, 2019 and March 31, 2018 , the amount of stock-based compensation expense related to stock options was $0.3 million and $0.2 million , respectively. As of March 31, 2019 , the Company had $2.9 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 historically 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, 2019 : Shares Wtd. Avg. Grant Date Fair Value (in thousands) Restricted stock outstanding at January 1, 2019 2,018 $ 27.62 Granted 778 23.79 Vested (697 ) 24.08 Forfeited/canceled (6 ) 24.89 Restricted stock outstanding at March 31, 2019 2,093 $ 27.26 During the three months ended March 31, 2019 , the Company granted approximately 778,000 shares of restricted stock to certain employees and executive officers. Of these awards, 250,000 are market and performance-based awards which will be forfeited if the Company does not achieve certain annual metrics during 2019, 2020 and 2021. 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, 2019 to December 31, 2021 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, 2019 to December 31, 2021. 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 43.7% ; (ii) beta of 1.0 ; and (iii) risk free rate of 2.53% . For the three months ended March 31, 2019 and March 31, 2018 , the Company recognized $6.5 million and $5.6 million , respectively, of compensation expense related to its restricted stock awards. As of March 31, 2019 , the Company had $41.2 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 2.6 years. Employee Stock Purchase Plan The Company previously adopted The GEO Group Inc. 2011 Employee Stock Purchase Plan (the “Plan or "ESPP”) 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 750,000 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, 2019 , 5,886 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, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic earnings per share of common stock is computed by dividing the net income attributable to The GEO Group, Inc. 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, 2019 and 2018 as follows (in thousands, except per share data): Three Months Ended March 31, 2019 March 31, 2018 Net income $ 40,649 $ 34,920 Net loss attributable to noncontrolling interests 56 67 Net income attributable to The GEO Group, Inc. 40,705 34,987 Basic earnings per share attributable to The GEO Group, Inc.: Weighted average shares outstanding 118,774 121,768 Per share amount $ 0.34 $ 0.29 Diluted earnings per share attributable to The GEO Group, Inc.: Weighted average shares outstanding 118,774 121,768 Dilutive effect of equity incentive plans 721 536 Weighted average shares assuming dilution 119,496 122,304 Per share amount $ 0.34 $ 0.29 Three Months For the three months ended March 31, 2019 , 1,191,206 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 874,714 common stock equivalents from restricted shares that were anti-dilutive. For the three months ended March 31, 2018 , 759,382 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 757,401 common stock equivalents from restricted shares that were anti-dilutive. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
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 - 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 correctional facility project in Ravenhall, a locality near Melbourne, Australia to 4.2% during the project's operating phase. The swaps' notional amounts coincide with outstanding draws under the project. At March 31, 2019 , the swaps had a notional amount of approximately AUD 448 million , or $318.1 million , based on exchange rates at March 31, 2019 . The Company has determined that the swaps have payment, expiration dates, and provisions that coincide with the terms of the non-recourse debt and are therefore considered to be effective cash flow hedges. Accordingly, the Company records the change in the fair value of the interest rate swaps in accumulated other comprehensive income, net of applicable income taxes. Total unrealized gain recorded in other comprehensive income, net of tax, related to this cash flow hedge was $1.2 million during the three months ended March 31, 2019 . The total fair value of the swap liability as of March 31, 2019 was $5.4 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. If the Company refinances the debt before its maturity date, this would result in the reclassification into earnings or losses amounts associated with these swaps currently reported in accumulated other comprehensive income (loss). The Company intends to refinance the construction facility prior to September 2019. The transaction is expected to close in the second quarter of 2019 and, as such, the amounts associated with the swaps will be reclassified to earnings or losses at that time. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Debt outstanding as of March 31, 2019 and December 31, 2018 consisted of the following (in thousands): March 31, 2019 December 31, 2018 Senior Credit Facility: Term loan $ 784,000 $ 786,000 Unamortized discount on term loan (2,729 ) (2,878 ) Unamortized debt issuance costs on term loan (6,472 ) (6,826 ) Revolver 529,904 490,843 Total Senior Credit Facility 1,304,703 1,267,139 6.00% Senior Notes: Notes Due in 2026 350,000 350,000 Unamortized debt issuance costs (4,691 ) (4,820 ) Total 6.00% Senior Notes Due in 2026 345,309 345,180 5.875% Senior Notes: Notes Due in 2024 250,000 250,000 Unamortized debt issuance costs (2,865 ) (2,971 ) Total 5.875% Senior Notes Due in 2024 247,135 247,029 5.125% Senior Notes: Notes Due in 2023 300,000 300,000 Unamortized debt issuance costs (3,386 ) (3,548 ) Total 5.125% Senior Notes Due in 2023 296,614 296,452 5.875% Senior Notes: Notes Due in 2022 250,000 250,000 Unamortized debt issuance costs (2,329 ) (2,514 ) Total 5.875% Senior Notes Due in 2022 247,671 247,486 Non-Recourse Debt 341,338 341,074 Unamortized debt issuance costs on non-recourse debt (2,738 ) (3,883 ) Unamortized discount on non-recourse debt (142 ) (164 ) Total Non-Recourse Debt 338,458 337,027 Finance Lease Liabilities 5,698 6,059 Other debt — 2,469 Total debt 2,785,588 2,748,841 Current portion of finance lease liabilities, long-term debt and non-recourse debt (332,864 ) (332,027 ) Finance Lease Liabilities, long-term portion (4,179 ) (4,570 ) Non-Recourse Debt, long-term portion (15,112 ) (15,017 ) Long-Term Debt $ 2,433,433 $ 2,397,227 Amended and Restated Credit Agreement On April 30, 2018, GEO entered into Amendment No. 1 to Third Amended and Restated Credit Agreement (the "Credit Agreement") by and among the refinancing lenders party thereto, the other lenders party thereto, GEO and GEO Corrections Holdings, Inc. and BNP Paribas, as administrative agent. The amendment, among other things, provides for the refinancing of all of GEO's existing senior secured term loans with refinancing term loans in the aggregate principal amount of $792.0 million and makes certain other modifications to GEO's senior secured credit agreement. The interest rate applicable to the refinancing term loans is equal to LIBOR plus 2.00% (with a LIBOR floor of 0.75% ). The amendment was considered to be a modification and loan costs of approximately $1.0 million were incurred and capitalized in connection with the transaction. The Credit Agreement evidences a credit facility (the "Credit Facility") consisting of the $792.0 million term loan discussed above (the "Term Loan") bearing interest at LIBOR plus 2.00% (with a LIBOR floor of 0.75% ), and a $900.0 million Revolver initially bearing interest at LIBOR plus 2.25% (with no LIBOR floor) together with AUD 275 million available solely for the issuance of financial letters of credit and performance letters of credit, in each case denominated in Australian Dollars under the Australian Dollar Letter of Credit Facility (the "Australian LC Facility"). As of March 31, 2019 , there were no letters of credit issued under the Australian LC Facility. Amounts to be borrowed by GEO under the Credit Agreement are subject to the satisfaction of customary conditions to borrowing. The Term Loan component is scheduled to mature on March 23, 2024. The revolving credit commitment component is scheduled to mature on May 19, 2021. The Credit Agreement also has an accordion feature of $450.0 million , subject to lender demand and prevailing market conditions and satisfying the relevant borrowing conditions. The Credit Agreement contains certain customary representations and warranties, and certain customary covenants that restrict GEO’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 6.25 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 GEO conducts, and (xi) materially impair GEO’s lenders’ security interests in the collateral for its loans. Events of default under the Credit Agreement include, but are not limited to, (i) GEO’s failure to pay principal or interest when due, (ii) GEO’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 asserted against GEO, and (viii) a change in control. All of the obligations under the Credit Agreement are unconditionally guaranteed by certain domestic subsidiaries of GEO and the Credit Agreement and the related guarantees are secured by a perfected first-priority pledge of substantially all of GEO’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 GEO and each guarantor in their domestic subsidiaries. GEO Australasia Holdings Pty Ltd, GEO Australasia Finance Holdings Pty Ltd as trustee for the GEO Australasia Finance Holding Trust, and together with GEO Australasia Holdings, collectively ("the Australian Borrowers") are wholly owned foreign subsidiaries of GEO. GEO has designated each of the Australian Borrowers as restricted subsidiaries under the Credit Agreement. However, the Australian Borrowers are not obligated to pay or perform any obligations under the Credit Agreement other than their own obligations as Australian Borrowers under the Credit Agreement. The Australian Borrowers do not pledge any of their assets to secure any obligations under the Credit Agreement. On August 18, 2016, the Company executed a Letter of Offer by and among GEO and HSBC Bank Australia Limited (the “Letter of Offer”) providing for a bank guarantee line and bank guarantee/standby sub-facility in an aggregate amount of approximately AUD 100 million , or $71.0 million , based on exchange rates in effect as of March 31, 2019 (collectively, the “Bank Guarantee Facility”). The Bank Guarantee Facility allows GEO to provide letters of credit to assure performance of certain obligations of its wholly owned subsidiary relating to its correctional facility in Ravenhall, located near Melbourne, Australia. The Bank Guarantee Facility is unsecured. The issuance of letters of credit under the Bank Guarantee Facility is subject to the satisfaction of the conditions precedent specified in the Letter of Offer. Letters of credit issued under the bank guarantee lines are due on demand and letters of credit issued under the bank guarantee/standby sub-facility cannot have a duration exceeding twelve months. The Bank Guarantee Facility may be terminated by HSBC Bank Australia Limited on 90 days written notice. As of March 31, 2019 , there was AUD 100 million in letters of credit issued under the Bank Guarantee Facility. As of March 31, 2019 , the Company had approximately $784 million in aggregate borrowings outstanding under the Term Loan, approximately $530 million in borrowings under the Revolver, and approximately $62 million in letters of credit which left approximately $308 million in additional borrowing capacity under the Revolver. The weighted average interest rate on outstanding borrowings under the Credit Agreement as of March 31, 2019 was 4.6% . 6.00% Senior Notes due 2026 Interest on the 6.00% Senior Notes accrues at the stated rate. The Company pays interest semi-annually in arrears on April 15 and October 15 of each year. On or after April 15, 2019, the Company may, at its option, redeem all or part of the 6.00% Senior Notes at the redemption prices set forth in the indenture governing the 6.00% Senior Notes. The indenture contains certain covenants, including limitations and restrictions on the Company and its subsidiary guarantors. Refer to Note 16- Condensed Consolidating Financial Information. 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 16- 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 16- 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 16- 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 is $23.0 million , of which $7.3 million is classified as current in the accompanying consolidated balance sheet as of March 31, 2019 . The payment of principal and interest on the 2011 Revenue Bonds issued by WEDFA is non-recourse to GEO. The 2011 Revenue Bonds will mature in October 2021 with fixed coupon rates of 5.25% . As of March 31, 2019 , included in current restricted cash and cash equivalents is $8.0 million of funds held in trust for debt service and other reserves with respect to the above mentioned note payable to WEDFA. Australia - Ravenhall In connection with a design and build correctional facility project agreement with the State of Victoria, 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 provided for non-recourse funding up to AUD 791.0 million , or approximately $561.6 million , based on exchange rates as of March 31, 2019 . The term of the Construction Facility is through September 2019 and bears interest at a variable rate quoted by certain Australian banks plus 200 basis points. The Company intends to refinance the Construction Facility prior to September 2019. As of March 31, 2019 , approximately $318 million was outstanding under the Construction Facility. The Company also entered into interest rate swap agreements related to its non-recourse debt in connection with the project. Refer to Note 10 - Derivative Financial Instruments. Guarantees Australia The Company has entered into a guarantee in connection with the operating performance of a facility in Australia. The obligation amounted to approximately AUD 100.0 million , or $71.0 million , based on exchange rates as of March 31, 2019 . The guarantee is secured by outstanding letters of credit under the Company's Revolver as of March 31, 2019 . At March 31, 2019 , the Company also had nine other letters of credit outstanding under separate international facilities relating to performance guarantees of its Australian subsidiary totaling $12.3 million . South Africa In connection with the creation of South African Custodial Services Pty. Limited ("SACS"), the Company had entered into certain guarantees related to the financing, construction and operation of the prison. The Company had guaranteed certain obligations of SACS under its debt agreements to SACS' senior lenders through the issuance of letters of credit under the Company's Revolver. In July 2018, SACS settled all amounts due under the debt facilities and has therefore discharged the guaranteed obligations, therefore the guarantees related to these obligations were no longer necessary and the letters of credit were not renewed. Additionally, SACS was required to maintain funding in a rectification account maintained for the payment of certain costs in the event of contract termination. SACS has met the required funding obligation and there is no further requirement to maintain the required funding amount. In addition to the above, the Company had also agreed to provide a loan, if required, of up to 20 million South African Rand, or $1.4 million based on exchange rates as of March 31, 2019 , referred to as the shareholder's standby facility, to SACS for the purpose of financing SACS’ obligations under its contract with the South African government. No amounts have been funded under the shareholder's standby facility. The Company’s obligations under the shareholder's standby facility expired upon SACS’s release from its obligations under the common terms agreement. SACS' obligations in terms of the common terms agreements expired in February 2019 with the final payment of the facility management fees when the Company's obligations under the shareholder's standby facility expired. The Company had 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 expired in February 2019 when all SACS obligation in terms of the finance agreements were settled. 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, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES AND OTHER | COMMITMENTS, CONTINGENCIES AND OTHER Litigation, Claims and Assessments As previously reported and described in the Company's prior periodic reports, including most recently in our Form 10-K for the year ended December 31, 2018, on February 8, 2017, former civil immigration detainees at the Aurora Immigration Detention Center filed a class action lawsuit on October 22, 2014, against the Company in the United States District Court for the District of Colorado (the “Court”). The complaint alleges that the Company was in violation of the Colorado Minimum Wages of Workers Act and the federal Trafficking Victims Protection Act ("TVPA"). The plaintiff class claims that the Company was unjustly enriched because of the level of payment the detainees received for work performed at the facility, even though the voluntary work program as well as the wage rates and standards associated with the program that are at issue in the case are authorized by the Federal government under guidelines approved by the United States Congress. On July 6, 2015, the Court found that detainees were not employees under the Colorado Minimum Wage Order and dismissed this claim. In February 2017, the Court granted the plaintiff-class’ motion for class certification. The plaintiff class seeks actual damages, compensatory damages, exemplary damages, punitive damages, restitution, attorneys’ fees and costs, and such other relief as the Court may deem proper. In the time since the Colorado suit was initially filed, three similar lawsuits have been filed - two in Washington and one in California. In Washington, one of the two lawsuits was filed on September 9, 2017 by immigration detainees against the Company in the U.S. District Court for the Western District of Washington. The second was filed on September 20, 2017 by the State Attorney General against the Company in the Superior Court of the State of Washington for Pierce County, which the Company removed to the U.S. District Court for the Western District of Washington on October 9, 2017. In California, a class-action lawsuit was filed on December 19, 2017 by immigration detainees against the Company in the U.S. District Court Eastern Division of the Central District of California. All three lawsuits allege violations of the respective state’s minimum wage laws. However, the California lawsuit, like the Colorado suit, also includes claims that the Company violated the TVPA and California's equivalent state statute. The Company intends to take all necessary steps to vigorously defend itself and has consistently refuted the allegations and claims in these lawsuits. The Company has not recorded an accrual relating to these matters at this time, as a loss is not considered probable nor reasonably estimable at this stage of the lawsuit. 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. However, the results of these claims or proceedings cannot be predicted with certainty, and an unfavorable resolution of one or more of these claims or proceedings could have a material adverse effect on the Company's financial condition, results of operations or cash flows. Other Assessment A state non-income tax audit completed in 2016 included tax periods for which the state tax authority had a number of years ago processed a substantial tax refund. At the completion of the audit fieldwork, the Company received a notice of audit findings disallowing deductions that were previously claimed by the Company, approved by the state tax authority and served as the basis for the approved refund claim. In early January 2017, the Company received a formal Notice of Assessment of Taxes and Demand for Payment from the taxing authority disallowing the deductions. The total tax, penalty and interest assessed is approximately $19.6 million . The Company has filed an administrative protest and disagrees with the assessment and intends to take all necessary steps to vigorously defend its position. The Company has established a reserve based on its estimate of the most probable loss based on the facts and circumstances known to date and the advice of outside counsel in connection with this matter. 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 $218 million of which $195 million was spent through the first three months of 2019. The Company estimates the remaining capital requirements related to these capital projects will be $23 million which will be spent through the remainder of 2019. Idle Facilities As of March 31, 2019 , the Company was marketing approximately 4,000 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 $110.0 million as of March 31, 2019 , excluding equipment and other assets that can be easily transferred for use at other facilities. There was no indication of impairment related to the Company's idle facilities at March 31, 2019 . In May 2019, the Company entered into a contract for the reactivation of its company-owned 1,800 -bed North Lake Correctional Facility located in Baldwin, Michigan which was included in the above idle facilities. Refer to Note 17 - Subsequent Events. |
Business Segments and Geographi
Business Segments and Geographic Information | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 March 31, 2018 Revenues: U.S. Corrections & Detention $ 390,510 $ 358,681 GEO Care 153,843 140,078 International Services 64,224 66,158 Facility Construction & Design [1] 2,090 — Total revenues $ 610,667 $ 564,917 Operating income from segments: U.S. Corrections & Detention $ 76,924 $ 69,188 GEO Care 38,538 31,692 International Services 5,739 5,402 Facility Construction & Design [1] — — Operating income from segments $ 121,201 $ 106,282 General and Administrative Expenses (46,424 ) (41,832 ) Total Operating Income $ 74,777 $ 64,450 [1] In 2019, Facility Construction & Design revenues related to an expansion project at the Company's Fulham Correctional Centre in Australia which is expected to be completed in the third quarter of 2020. There is no margin associated with the expansion. 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, 2019 March 31, 2018 Operating income from segments $ 121,201 $ 106,282 Unallocated amounts: General and Administrative Expenses (46,424 ) (41,832 ) Net Interest Expense (31,884 ) (26,770 ) Income before income taxes and equity in earnings of affiliates $ 42,893 $ 37,680 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 $1.4 million and $1.6 million in earnings, net of tax, for SACS operations during the three months ended March 31, 2019 , and 2018, 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, 2019 and December 31, 2018 , the Company’s investment in SACS was $11.6 million and $13.4 million , respectively, and represents its share of cumulative reported earnings. The Company has recorded $1.2 million and $0.4 million in earnings, net of tax, for GEO Amey's operations during the three months ended March 31, 2019 and 2018, 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, 2019 and December 31, 2018 , the Company’s investment in GEOAmey was $6.1 million and $4.8 million , respectively, and represents its share of cumulative reported earnings. |
Benefit Plans
Benefit Plans | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [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, 2019 Year Ended December 31, 2018 Change in Projected Benefit Obligation Projected benefit obligation, beginning of period $ 32,474 $ 32,820 Service cost 250 1,200 Interest cost 348 1,242 Actuarial loss — (2,166 ) Benefits paid (179 ) (622 ) Projected benefit obligation, end of period $ 32,893 $ 32,474 Change in Plan Assets Plan assets at fair value, beginning of period $ — $ — Company contributions 179 622 Benefits paid (179 ) (622 ) Plan assets at fair value, end of period $ — $ — Unfunded Status of the Plan $ (32,893 ) $ (32,474 ) Three Months Ended March 31, 2019 March 31, 2018 Components of Net Periodic Benefit Cost Service cost $ 250 $ 300 Interest cost 348 310 Net loss 53 133 Net periodic pension cost $ 651 $ 743 The long-term portion of the pension liability as of March 31, 2019 and December 31, 2018 was $32.6 million and $32.1 million , respectively, and is included in Other Non-Current Liabilities in the accompanying consolidated balance sheets. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS The Company implemented the following accounting standards during the three months ended March 31, 2019: I n June 2018, the FASB issued ASU No. 2018-07, " Compensation - Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting" as a part of its Simplification Initiative. The amendments in this update expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. An entity should apply the requirements of Topic 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the period of time over which share-based payment awards vest and the pattern of cost recognition over that period. The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor's own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606," Revenue from Contracts with Customers. " The new standard became effective for the Company beginning January 1, 2019. The adoption of this standard did not have a material impact on the Company's financial position, results of operations or cash flows. I n February 2018, the FASB issued ASU No. 2018-02, " Income Statement-Reporting Comprehensive Income-Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ". The amendments in this update allow an entity to elect to reclassify the income tax effects resulting from the Tax Cuts and Jobs Act on items within accumulated other comprehensive income ("AOCI") to retained earnings. The new standard is effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption was permitted. The Company adopted the new standard effective January 1, 2019 and has made a policy election to reclassify the income tax effects resulting from the Tax Cuts and Jobs Act on items within AOCI to distributions in excess of earnings on a prospective basis. As a result, the Company reclassified $0.7 million for the tax effect of the tax rate reduction related to its pension liability and $1.7 million for the tax effect of other income tax effects of tax reform on items remaining in AOCI related to currency translation adjustments to distributions in excess of earnings on January 1, 2019. The net effect of both adjustments resulted in an aggregate increase to distributions in excess of earnings of approximately $1.0 million . Refer to Note 7 - Shareholders' Equity. I n August 2017, the FASB issued ASU No. 2017-12, " Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities. " The objective of this guidance is to improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements. Certain of the amendments in this update as they relate to cash flow hedges, eliminate the requirement to separately record hedge ineffectiveness currently in earnings. Instead, the entire change in the fair value of the hedging instrument is recorded in other comprehensive income. Those amounts are reclassified to earnings in the same income statement line item that is used to present the earnings effect of the hedged item when the hedged item affects earnings. The new standard became effective for the Company beginning January 1, 2019. The adoption of this standard did not 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 became effective for the Company on January 1, 2019. The Company elected the package of transition expedients available for expired or existing lease contracts, which allowed it to carry forward its historical assessments of (1) whether contracts are or contain leases, (2) lease classification and (3) initial direct costs. The Company also elected not to apply the recognition requirements to lease arrangements that have terms of twelve months or less. The adoption had a material impact in the Company's consolidated balance sheets, but did not have an impact on its consolidated statements of operations or cash flows. The most significant impact was the recognition of right-of-use assets and lease liabilities for operating leases, while our accounting for finance leases remained substantially unchanged. The new standard resulted in the recording of operating right-of-use lease assets and operating lease liabilities of approximately $140 million and $147 million , respectively, as of January 1, 2019. Refer to Note 2 - Leases for further discussion and additional required disclosures. The following accounting standards will be adopted in future periods: I n August 2018, the FASB issued ASU No. 2018-14, " Compensation-Retirement Benefits-Defined Benefit Plans-General (Topic 715.20)" as a part of its disclosure framework project. The amendments in this update remove, modify and add certain disclosures primarily related to amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year, explanations for reasons for significant gains and losses related to changes in the benefit obligation for the period, and projected and accumulated benefit obligations. The new standard is effective for the Company beginning January 1, 2021. The adoption of this standard is not expected to have a material impact on the Company's financial position, results of operations or cash flows. I n August 2018, the FASB issued ASU No. 2018-13, " Fair Value Measurement (Topic 820)" as a part of its disclosure framework project. The amendments in this update remove, modify and add certain disclosures primarily related to transfers between Level 1 and Level 2 of the fair value hierarchy, various disclosures related to Level 3 fair value measurements and investments in certain entities that calculate net asset value. The new standard is effective for the Company beginning January 1, 2020. The adoption of this standard is not expected to have a material impact on the Company's financial position, results of operations or cash flows. In June 2016, the FASB issued ASC No. 2016-13, " Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ". The purpose of Update No. 2016-13 is to replace the current incurred loss impairment methodology for financial assets measured at amortized cost with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information, including forecasted information, to develop credit loss estimates. Update No. 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within those annual periods. Early adoption is permitted for annual periods beginning after December 15, 2018. The Company is in the process of determining the effect that the adoption will have on its financial position and results of operations. Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants and the SEC did not, or are not expected to, have a material effect on the Company's results of operations or financial position. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Financial Information | CONDENSED CONSOLIDATING FINANCIAL INFORMATION As of March 31, 2019 , the Company's 6.00% Senior Notes, 5.125% Senior Notes, the 5.875% Senior Notes due 2022 and the 5.875% Senior Notes due 2024 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, 2019 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ 228,382 $ 494,890 $ 68,968 $ (181,573 ) $ 610,667 Operating expenses 171,516 412,453 54,601 (181,573 ) 456,997 Depreciation and amortization 7,419 24,185 865 — 32,469 General and administrative expenses 17,200 24,030 5,194 — 46,424 Operating income 32,247 34,222 8,308 — 74,777 Interest income 3,478 1,335 8,198 (4,615 ) 8,396 Interest expense (23,296 ) (13,847 ) (7,752 ) 4,615 (40,280 ) Income before income taxes and equity in earnings of affiliates 12,429 21,710 8,754 — 42,893 Income tax provision 289 2,379 2,172 — 4,840 Equity in earnings of affiliates, net of income tax provision — — 2,596 — 2,596 Income before equity in income of consolidated subsidiaries 12,140 19,331 9,178 — 40,649 Income from consolidated subsidiaries, net of income tax provision 28,509 — — (28,509 ) — Net income 40,649 19,331 9,178 (28,509 ) 40,649 Net loss attributable to noncontrolling interests — — 56 — 56 Net income attributable to The GEO Group, Inc. $ 40,649 $ 19,331 $ 9,234 $ (28,509 ) $ 40,705 Net income $ 40,649 $ 19,331 $ 9,178 $ (28,509 ) $ 40,649 Other comprehensive income (loss), net of tax — (648 ) 2,900 — 2,252 Total comprehensive income $ 40,649 $ 18,683 $ 12,078 $ (28,509 ) $ 42,901 Comprehensive loss attributable to noncontrolling interests — — 56 — 56 Comprehensive income attributable to The GEO Group, Inc. $ 40,649 $ 18,683 $ 12,134 $ (28,509 ) $ 42,957 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (dollars in thousands) (unaudited) For the Three Months Ended March 31, 2018 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ 195,630 $ 458,728 $ 68,806 $ (158,247 ) $ 564,917 Operating expenses 151,822 377,966 55,168 (158,247 ) 426,709 Depreciation and amortization 6,460 24,443 1,023 — 31,926 General and administrative expenses 14,341 22,447 5,044 — 41,832 Operating income 23,007 33,872 7,571 — 64,450 Interest income 4,177 1,417 9,384 (5,879 ) 9,099 Interest expense (18,622 ) (14,460 ) (8,666 ) 5,879 (35,869 ) Income before income taxes and equity in earnings of affiliates 8,562 20,829 8,289 — 37,680 Income tax provision 177 2,300 2,278 — 4,755 Equity in earnings of affiliates, net of income tax provision — — 1,995 — 1,995 Income (loss) before equity in income of consolidated subsidiaries 8,385 18,529 8,006 — 34,920 Income from consolidated subsidiaries, net of income tax provision 26,535 — — (26,535 ) — Net income 34,920 18,529 8,006 (26,535 ) 34,920 Net loss attributable to noncontrolling interests — — 67 — 67 Net income attributable to The GEO Group, Inc. $ 34,920 $ 18,529 $ 8,073 $ (26,535 ) $ 34,987 Net income $ 34,920 $ 18,529 $ 8,006 $ (26,535 ) $ 34,920 Other comprehensive income, net of tax — 105 1,257 — 1,362 Total comprehensive income $ 34,920 $ 18,634 $ 9,263 $ (26,535 ) $ 36,282 Comprehensive loss attributable to noncontrolling interests — — 59 — 59 Comprehensive income attributable to The GEO Group, Inc. $ 34,920 $ 18,634 $ 9,322 $ (26,535 ) $ 36,341 CONDENSED CONSOLIDATING BALANCE SHEET (dollars in thousands) (unaudited) As of March 31, 2019 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 32,701 $ 2,965 $ 32,062 $ — $ 67,728 Restricted cash and cash equivalents 1,125 — 52,624 — 53,749 Accounts receivable, less allowance for doubtful accounts 177,929 199,420 43,128 3,119 423,596 Contract receivable, current portion — — 16,005 — 16,005 Prepaid expenses and other current assets 586 40,108 4,736 (1,895 ) 43,535 Total current assets 212,341 242,493 148,555 1,224 604,613 Restricted Cash and Investments — 24,954 2,328 — 27,282 Property and Equipment, Net 842,309 1,223,123 85,195 — 2,150,627 Assets Held for Sale 705 3,902 — — 4,607 Contract Receivable — — 368,698 — 368,698 Operating Lease Right-of-Use Assets, Net 25,097 107,432 836 — 133,365 Intercompany Receivable 989,843 219,936 25,462 (1,235,241 ) — Deferred Income Tax Assets 798 27,928 1,198 — 29,924 Goodwill — 775,954 407 — 776,361 Intangible Assets, Net — 226,229 553 — 226,782 Investment in Subsidiaries 1,483,260 458,229 2,189 (1,943,678 ) — Other Non-Current Assets 7,931 113,075 19,289 (78,488 ) 61,807 Total Assets $ 3,562,284 $ 3,423,255 $ 654,710 $ (3,256,183 ) $ 4,384,066 LIABILITIES AND SHAREHOLDERS’ EQUITY Accounts payable $ 13,657 $ 70,420 $ 9,381 $ — $ 93,458 Accrued payroll and related taxes — 37,351 20,728 — 58,079 Accrued expenses and other current liabilities 35,765 126,669 26,938 (198 ) 189,174 Operating lease liabilities, current portion 5,042 29,786 382 — 35,210 Current portion of finance lease liabilities, long-term debt and non-recourse debt 8,000 1,521 323,343 — 332,864 Total current liabilities 62,464 265,747 380,772 (198 ) 708,785 Deferred Income Tax Liabilities — — 13,681 — 13,681 Intercompany Payable 92,733 1,106,285 34,800 (1,233,818 ) — Other Non-Current Liabilities 387 151,804 6,031 (78,488 ) 79,734 Operating lease Liabilities 20,612 81,171 455 — 102,238 Finance Lease Liabilities — 4,179 — — 4,179 Long-Term Debt 2,358,529 — 74,904 — 2,433,433 Non-Recourse Debt — — 15,112 — 15,112 Commitments & Contingencies and Other Shareholders' Equity: The GEO Group, Inc. Shareholders' Equity 1,027,559 1,814,069 129,610 (1,943,679 ) 1,027,559 Noncontrolling Interests — — (655 ) — (655 ) Total Shareholders’ Equity 1,027,559 1,814,069 128,955 (1,943,679 ) 1,026,904 Total Liabilities and Shareholders' Equity $ 3,562,284 $ 3,423,255 $ 654,710 $ (3,256,183 ) $ 4,384,066 CONDENSED CONSOLIDATING BALANCE SHEET (dollars in thousands) As of December 31, 2018 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 4,468 $ 7,873 $ 18,914 $ — $ 31,255 Restricted cash and cash equivalents 2,854 — 48,824 — 51,678 Accounts receivable, less allowance for doubtful accounts 190,594 221,957 44,377 (11,402 ) 445,526 Contract receivable, current portion — — 15,535 — 15,535 Prepaid expenses and other current assets 2,011 50,482 7,114 (1,839 ) 57,768 Total current assets 199,927 280,312 134,764 (13,241 ) 601,762 Restricted Cash and Investments — 21,009 1,422 — 22,431 Property and Equipment, Net 845,291 1,227,223 86,096 — 2,158,610 Assets Held for Sale 705 1,929 — — 2,634 Contract Receivable — — 368,178 368,178 Intercompany Receivable 990,365 150,710 22,407 (1,163,482 ) — Deferred Income Tax Assets 798 27,928 1,198 — 29,924 Goodwill — 775,955 404 — 776,359 Intangible Assets, Net — 231,787 573 — 232,360 Investment in Subsidiaries 1,503,841 458,229 2,190 (1,964,260 ) — Other Non-Current Assets 9,541 115,695 19,334 (78,710 ) 65,860 Total Assets $ 3,550,468 $ 3,290,777 $ 636,566 $ (3,219,693 ) $ 4,258,118 LIABILITIES AND SHAREHOLDERS’ EQUITY Accounts payable $ 13,566 $ 72,128 $ 7,338 $ — $ 93,032 Accrued payroll and related taxes — 56,543 19,466 — 76,009 Accrued expenses and other current liabilities 23,565 168,231 25,615 (13,241 ) 204,170 Current portion of finance lease liabilities, long-term debt and non-recourse debt 8,000 2,017 322,010 — 332,027 Total current liabilities 45,131 298,919 374,429 (13,241 ) 705,238 Deferred Income Tax Liabilities — — 13,681 — 13,681 Intercompany Payable 142,055 989,856 31,571 (1,163,482 ) — Other Non-Current Liabilities 1,395 152,815 6,981 (78,710 ) 82,481 Finance Lease Liabilities — 4,570 — — 4,570 Long-Term Debt 2,321,384 — 75,843 — 2,397,227 Non-Recourse Debt — — 15,017 — 15,017 Commitments & Contingencies and Other Shareholders' Equity: The GEO Group, Inc. Shareholders' Equity 1,040,503 1,844,617 119,643 (1,964,260 ) 1,040,503 Noncontrolling Interests — — (599 ) — (599 ) Total Shareholders’ Equity 1,040,503 1,844,617 119,044 (1,964,260 ) 1,039,904 Total Liabilities and Shareholders' Equity $ 3,550,468 $ 3,290,777 $ 636,566 $ (3,219,693 ) $ 4,258,118 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (dollars in thousands) (unaudited) For the Three Months Ended March 31, 2019 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Consolidated Cash Flow from Operating Activities: Net cash provided by operating activities $ 14,354 $ 20,879 $ 63,778 $ 99,011 Cash Flow from Investing Activities: Insurance proceeds - damaged property — 2,503 — 2,503 Proceeds from sale of property and equipment — 274 — 274 Change in restricted investments — (4,062 ) — (4,062 ) Capital expenditures (6,608 ) (21,452 ) (24 ) (28,084 ) Net cash used in investing activities (6,608 ) (22,737 ) (24 ) (29,369 ) Cash Flow from Financing Activities: Proceeds from long-term debt 130,000 — — 130,000 Payments on long-term debt (96,926 ) — — (96,926 ) Payments on non-recourse debt — — (2,089 ) (2,089 ) Taxes paid related to net share settlements of equity awards (4,172 ) — — (4,172 ) Proceeds from issuance of common stock in connection with ESPP 124 — — 124 Proceeds from stock options exercised 333 — — 333 Dividends paid (57,945 ) — — (57,945 ) Net cash used in financing activities (28,586 ) — (2,089 ) (30,675 ) Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash and Cash Equivalents — — 366 366 Net (Decrease) Increase in Cash. Cash Equivalents and Restricted Cash and Cash Equivalents (20,840 ) (1,858 ) 62,031 39,333 Cash, Cash Equivalents and Restricted Cash and Cash Equivalents, beginning of period 54,666 4,823 24,983 84,472 Cash, Cash Equivalents and Restricted Cash and Cash Equivalents, end of period $ 33,826 $ 2,965 $ 87,014 $ 123,805 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (dollars in thousands) (unaudited) For the Three Months Ended March 31, 2018 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Consolidated Cash Flow from Operating Activities: Net cash provided by operating activities $ 39,888 $ 17,614 $ 12,184 $ 69,686 Cash Flow from Investing Activities: Proceeds from sale of assets held for sale — 3,797 3,797 Insurance proceeds - damaged property — 4,504 — 4,504 Change in restricted investments — (505 ) — (505 ) Capital expenditures (34,360 ) (16,654 ) (1,133 ) (52,147 ) Net cash used in investing activities (34,360 ) (8,858 ) (1,133 ) (44,351 ) Cash Flow from Financing Activities: Proceeds from long-term debt 102,000 — — 102,000 Payments on long-term debt (43,000 ) — — (43,000 ) Payments on non-recourse debt — — (5,600 ) (5,600 ) Taxes paid related to net share settlements of equity awards (4,356 ) — — (4,356 ) Proceeds from issuance of common stock in connection with ESPP 140 — — 140 Proceeds from stock options exercised 260 — — 260 Payments for repurchases of common stock (40,182 ) — — (40,182 ) Dividends paid (58,238 ) — — (58,238 ) Net cash used in financing activities (43,376 ) — (5,600 ) (48,976 ) Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash and Cash Equivalents — — (655 ) (655 ) Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash and Cash Equivalents (37,848 ) 8,756 4,796 (24,296 ) Cash, Cash Equivalents and Restricted Cash and Cash Equivalents, beginning of period 54,666 4,952 73,927 133,545 Cash, Cash Equivalents and Restricted Cash and Cash Equivalents, end of period $ 16,818 $ 13,708 $ 78,723 $ 109,249 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Dividend On April 3, 2019, the Board of Directors declared a quarterly cash dividend of $0.48 per share of common stock which was paid on April 22, 2019 to shareholders of record as of the close of business on April 15, 2019. Contract Awards On May 2, 2019, the Company announced that it has entered into a new ten -year contract, inclusive of renewal option periods, with the Federal Bureau of Prisons (“BOP”) for the reactivation of the existing company-owned, 1,800 -bed North Lake Correctional Facility located in Baldwin, Michigan. The Company also announced on May 2, 2019 that Reeves County, Texas has entered into two new ten -year contracts, inclusive of renewal periods, with the BOP for the county-owned, 1,800 -bed Reeves County Detention Center I & II and the county-owned, 1,376 -bed Reeves County Detention Center III. GEO provides management consulting and support services to Reeves County. The new ten -year contracts were awarded to GEO and Reeves County under a long-standing procurement, for the housing of non-U.S. citizen criminal aliens, commonly referred to as Criminal Alien Requirement (CAR) 19, which was issued by the BOP in 2017. On April 25, 2019, the Company announced it had signed a contract modification with U.S. Immigration and Customs Enforcement ("ICE") for the reactivation of its existing company-owned 1,000 -bed South Louisiana ICE Processing Center (the "Center") located in Basile, Louisiana. The previously idled Center will house federal immigration detainees under an existing intergovernmental service agreement between Evangeline Parish, Louisiana and ICE. The Center will begin the intake process during the third quarter of 2019. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS The Company implemented the following accounting standards during the three months ended March 31, 2019: I n June 2018, the FASB issued ASU No. 2018-07, " Compensation - Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting" as a part of its Simplification Initiative. The amendments in this update expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. An entity should apply the requirements of Topic 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the period of time over which share-based payment awards vest and the pattern of cost recognition over that period. The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor's own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606," Revenue from Contracts with Customers. " The new standard became effective for the Company beginning January 1, 2019. The adoption of this standard did not have a material impact on the Company's financial position, results of operations or cash flows. I n February 2018, the FASB issued ASU No. 2018-02, " Income Statement-Reporting Comprehensive Income-Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ". The amendments in this update allow an entity to elect to reclassify the income tax effects resulting from the Tax Cuts and Jobs Act on items within accumulated other comprehensive income ("AOCI") to retained earnings. The new standard is effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption was permitted. The Company adopted the new standard effective January 1, 2019 and has made a policy election to reclassify the income tax effects resulting from the Tax Cuts and Jobs Act on items within AOCI to distributions in excess of earnings on a prospective basis. As a result, the Company reclassified $0.7 million for the tax effect of the tax rate reduction related to its pension liability and $1.7 million for the tax effect of other income tax effects of tax reform on items remaining in AOCI related to currency translation adjustments to distributions in excess of earnings on January 1, 2019. The net effect of both adjustments resulted in an aggregate increase to distributions in excess of earnings of approximately $1.0 million . Refer to Note 7 - Shareholders' Equity. I n August 2017, the FASB issued ASU No. 2017-12, " Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities. " The objective of this guidance is to improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements. Certain of the amendments in this update as they relate to cash flow hedges, eliminate the requirement to separately record hedge ineffectiveness currently in earnings. Instead, the entire change in the fair value of the hedging instrument is recorded in other comprehensive income. Those amounts are reclassified to earnings in the same income statement line item that is used to present the earnings effect of the hedged item when the hedged item affects earnings. The new standard became effective for the Company beginning January 1, 2019. The adoption of this standard did not 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 became effective for the Company on January 1, 2019. The Company elected the package of transition expedients available for expired or existing lease contracts, which allowed it to carry forward its historical assessments of (1) whether contracts are or contain leases, (2) lease classification and (3) initial direct costs. The Company also elected not to apply the recognition requirements to lease arrangements that have terms of twelve months or less. The adoption had a material impact in the Company's consolidated balance sheets, but did not have an impact on its consolidated statements of operations or cash flows. The most significant impact was the recognition of right-of-use assets and lease liabilities for operating leases, while our accounting for finance leases remained substantially unchanged. The new standard resulted in the recording of operating right-of-use lease assets and operating lease liabilities of approximately $140 million and $147 million , respectively, as of January 1, 2019. Refer to Note 2 - Leases for further discussion and additional required disclosures. The following accounting standards will be adopted in future periods: I n August 2018, the FASB issued ASU No. 2018-14, " Compensation-Retirement Benefits-Defined Benefit Plans-General (Topic 715.20)" as a part of its disclosure framework project. The amendments in this update remove, modify and add certain disclosures primarily related to amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year, explanations for reasons for significant gains and losses related to changes in the benefit obligation for the period, and projected and accumulated benefit obligations. The new standard is effective for the Company beginning January 1, 2021. The adoption of this standard is not expected to have a material impact on the Company's financial position, results of operations or cash flows. I n August 2018, the FASB issued ASU No. 2018-13, " Fair Value Measurement (Topic 820)" as a part of its disclosure framework project. The amendments in this update remove, modify and add certain disclosures primarily related to transfers between Level 1 and Level 2 of the fair value hierarchy, various disclosures related to Level 3 fair value measurements and investments in certain entities that calculate net asset value. The new standard is effective for the Company beginning January 1, 2020. The adoption of this standard is not expected to have a material impact on the Company's financial position, results of operations or cash flows. In June 2016, the FASB issued ASC No. 2016-13, " Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ". The purpose of Update No. 2016-13 is to replace the current incurred loss impairment methodology for financial assets measured at amortized cost with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information, including forecasted information, to develop credit loss estimates. Update No. 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within those annual periods. Early adoption is permitted for annual periods beginning after December 15, 2018. The Company is in the process of determining the effect that the adoption will have on its financial position and results of operations. Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants and the SEC did not, or are not expected to, have a material effect on the Company's results of operations or financial position. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Assets And Liabilities, Lessee | Lease related assets and liabilities are recorded on the balance sheet as follows (in thousands): Classification on the Balance Sheet March 31, 2019 Assets Operating lease assets Operating Lease Right-of-Use Assets, Net $ 133,365 Finance lease assets Property and Equipment, Net 3,647 Total lease assets $ 137,012 Liabilities Current Operating Operating lease liabilities, current portion $ 35,210 Finance [1] Current portion of finance liabilities, long-term debt and non-recourse debt 1,519 Noncurrent Operating Operating Lease Liabilities 102,238 Finance [1] Finance Lease Liabilities 4,179 Total lease liabilities $ 143,146 [1] Also refer to Note 11 - Debt. |
Lease, Cost | Certain information related to the lease costs for finance and operating leases is presented as follows (in thousands): Three Months Ended March 31, 2019 Operating lease cost $ 12,492 Finance lease cost: Amortization of right-of-use assets 256 Interest on lease liabilities 113 Total finance lease cost 369 Short-term lease cost 1,915 Total Lease Cost $ 14,776 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases $ 12,616 Operating cash flows for finance leases $ 113 Financing activities for finance leases $ 394 Right-of-use assets obtained in exchange for new operating lease liabilties $ 3,164 Weighted average remaining lease term: Operating leases 7.3 years Finance leases 3.4 years Weighted average discount rate: Operating leases [1] 4.71 % Finance leases 8.27 % [1] Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019. |
Lessee, Operating Lease, Liability, Maturity | The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities and finance lease liabilities recorded on the balance sheet as of March 31, 2019 (in thousands). Operating Leases Finance Leases 2019 $ 31,919 $ 1,450 2020 30,134 1,934 2021 21,376 1,936 2022 16,054 1,234 2023 13,430 — Thereafter 51,675 — Total minimum lease payments 164,588 6,554 Less: amount of lease payment representing interest (27,140 ) (856 ) Present value of future minimum lease payments 137,448 5,698 Less: current obligations under leases (35,210 ) (1,519 ) Long-term lease obligations $ 102,238 $ 4,179 |
Finance Lease, Liability, Maturity | The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities and finance lease liabilities recorded on the balance sheet as of March 31, 2019 (in thousands). Operating Leases Finance Leases 2019 $ 31,919 $ 1,450 2020 30,134 1,934 2021 21,376 1,936 2022 16,054 1,234 2023 13,430 — Thereafter 51,675 — Total minimum lease payments 164,588 6,554 Less: amount of lease payment representing interest (27,140 ) (856 ) Present value of future minimum lease payments 137,448 5,698 Less: current obligations under leases (35,210 ) (1,519 ) Long-term lease obligations $ 102,238 $ 4,179 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 and December 31, 2018 (in thousands): Fair Value Measurements at March 31, 2019 Carrying Value at March 31, 2019 Quoted Prices in Active Markets (Level 1) Significant Other Significant Unobservable Inputs (Level 3) Assets: Restricted investment: Rabbi Trust $ 24,954 $ — $ 24,954 $ — Fixed income securities 1,848 — 1,848 — Liabilities: Interest rate swap derivatives $ 5,393 $ — $ 5,393 $ — Fair Value Measurements at December 31, 2018 Carrying Value at December 31, 2018 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Restricted investments: Rabbi Trust $ 20,892 $ — $ 20,892 $ — Fixed income securities 1,801 — 1,801 — Liabilities: Interest rate swap derivatives $ 8,638 $ — $ 8,638 $ — |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | Changes in the Company's goodwill balances from December 31, 2018 to March 31, 2019 are as follows (in thousands): December 31, 2018 Acquisition Adjustments Foreign Currency Translation March 31, 2019 U.S. Corrections & Detention $ 316,366 $ — $ — $ 316,366 GEO Care 459,589 — — 459,589 International Services 404 — 2 406 Total Goodwill $ 776,359 $ — $ 2 $ 776,361 |
Schedule of intangible assets | The Company's intangible assets include facility management contracts, covenants not to compete, trade names and technology, as follows (in thousands): March 31, 2019 December 31, 2018 Weighted Average Useful Life (years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Facility management contracts 16.3 $ 308,516 $ (132,753 ) $ 175,763 $ 308,419 $ (127,481 ) $ 180,938 Covenants not to compete 1 — — — 700 (700 ) — Technology 7.3 33,700 (27,881 ) 5,819 33,700 (27,478 ) 6,222 Trade name (Indefinite lived) Indefinite 45,200 — 45,200 45,200 — 45,200 Total acquired intangible assets $ 387,416 $ (160,634 ) $ 226,782 $ 388,019 $ (155,659 ) $ 232,360 |
Estimated amortization expense for the remainder | Estimated amortization expense related to the Company's finite-lived intangible assets for the remainder of 2019 through 2023 and thereafter is as follows (in thousands): Fiscal Year Total Amortization Expense Remainder of 2019 $ 16,522 2020 22,306 2021 19,782 2022 18,273 2023 13,632 Thereafter 91,067 $ 181,582 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 and December 31, 2018 (in thousands): Estimated Fair Value Measurements at March 31, 2019 Carrying Value as of March 31, 2019 Total Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 67,728 $ 67,728 $ 67,728 $ — $ — Restricted cash and investments 56,077 56,077 53,148 2,929 — Liabilities: Borrowings under senior credit facility $ 1,311,175 $ 1,252,400 $ — $ 1,252,400 $ — 5.875% Senior Notes due 2024 250,000 219,278 — 219,278 — 5.125% Senior Notes 300,000 266,034 — 266,034 — 5.875% Senior Notes due 2022 250,000 242,853 — 242,853 — 6.00% Senior Notes 350,000 294,914 — 294,914 — Non-recourse debt 341,196 341,595 — 341,595 — Estimated Fair Value Measurements at December 31, 2018 Carrying Value as of December 31, 2018 Total Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 31,255 $ 31,255 $ 31,255 $ — $ — Restricted cash and investments 53,217 53,217 49,884 2,284 — Liabilities: Borrowings under senior credit facility $ 1,273,965 $ 1,188,196 $ — $ 1,188,196 $ — 5.875% Senior Notes due 2024 250,000 224,590 — 224,590 — 5.125% Senior Notes 300,000 271,992 — 271,992 — 5.875% Senior Notes due 2022 250,000 244,550 — 244,550 — 6.00% Senior Notes 350,000 310,177 — 310,177 — Non-recourse debt 340,910 348,274 — 348,274 — |
Restricted Cash and Cash Equi_2
Restricted Cash and Cash Equivalents (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash and cash equivalents reported on the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows: March 31, 2019 March 31, 2018 Cash and Cash Equivalents $ 67,728 $ 49,235 Restricted cash and cash equivalents - current 53,749 56,888 Restricted cash and investments - non-current 27,282 24,394 Less Restricted investments - non-current (24,954 ) (21,268 ) Total cash, cash equivalents and restricted cash and cash equivalents shown in the statement of cash flows $ 123,805 $ 109,249 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 for the three months ended March 31, 2019 and 2018 (in thousands): Common shares Additional Paid-In Distributions in Excess of Accumulated Other Comprehensive Treasury shares Noncontrolling Total Shareholders' Shares Amount Capital Earnings Loss Shares Amount Interests Equity Balance, January 1, 2019 120,585 $ 1,248 $ 1,210,916 $ (52,868 ) $ (23,618 ) 4,210 $ (95,175 ) $ (599 ) $ 1,039,904 Proceeds from exercise of stock options 22 — 333 — — — — — 333 Stock-based compensation expense — — 6,727 — — — — — 6,727 Restricted stock granted 778 8 (8 ) — — — — — Restricted stock canceled (6 ) — — — — — — — — Dividends paid — — — (57,945 ) — — — — (57,945 ) Shares withheld for net settlements of share-based awards [1] (198 ) (2 ) (4,170 ) — — — — — (4,172 ) Issuance of common stock - ESPP 6 — 124 — — — — — 124 Transition adjustment for accounting standard adoption [2] — — — (968 ) 968 — — — — Net income (loss) — — — 40,705 — — — (56 ) 40,649 Other comprehensive income — — — — 1,284 — — — 1,284 Balance, March 31, 2019 121,187 $ 1,254 $ 1,213,922 $ (71,076 ) $ (21,366 ) 4,210 $ (95,175 ) $ (655 ) $ 1,026,904 Common shares Additional Earnings in Excess of Accumulated Treasury shares Noncontrolling Total Shares Amount Capital Distributions Loss Shares Amount Interests Equity Balance, January 1, 2018 124,008 $ 1,240 $ 1,190,906 $ 31,541 $ (24,446 ) — — $ (322 ) $ 1,198,919 Proceeds from exercise of stock options 15 1 260 — — — — — — 261 Stock-based compensation expense — — 5,827 — — — — — — 5,827 Restricted stock canceled (9 ) — — — — — — — — — Dividends paid — — — (58,319 ) — — — — (58,319 ) Shares withheld for net settlements of share-based awards [1] (169 ) (2 ) (4,355 ) — — — — — — (4,357 ) Issuance of common stock - ESPP 8 — 141 — — — — — — 141 Repurchases of common stock (1,848 ) — — — — — 1,848 (40,182 ) — (40,182 ) Net income (loss) — — — 34,987 — — — (67 ) 34,920 Other comprehensive income — — — — 1,354 — — 8 1,362 Balance, March 31, 2018 122,005 $ 1,239 $ 1,192,779 $ 8,209 $ (23,092 ) 1,848 $ (40,182 ) $ (381 ) $ 1,138,572 [1] During the three months ended March 31, 2019 and 2018, the Company withheld shares through net share settlements to satisfy statutory tax withholding requirements upon vesting of shares of restricted stock held by employees. [2] On January 1, 2019, the Company adopted Accounting Standard Update ("ASU") No. 2018-02 " Income Statement-Reporting Comprehensive Income-Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ". Refer to Note 15 - Recent Accounting Pronouncements for further information. |
Dividends declared | During the three months ended March 31, 2019 and the year ended December 31, 2018 GEO declared and paid the following regular cash distributions to its shareholders as follows: Declaration Date Record Date Payment Date Distribution Per Share Aggregate Payment Amount (in millions) February 5, 2018 February 16, 2018 February 27, 2018 $0.47 $58.3 April 11, 2018 April 23, 2018 May 3, 2018 $0.47 $57.4 July 10, 2018 July 20, 2018 July 27, 2018 $0.47 $57.2 October 15, 2018 October 26, 2018 November 2, 2018 $0.47 $57.2 February 4, 2019 February 15, 2019 February 22, 2019 $0.48 $57.9 |
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, 2019 (In thousands) Foreign currency translation adjustments, net of tax attributable to The GEO Group, Inc. (1) Change in fair value of derivatives, net of tax Pension adjustments, net of tax Total Balance, January 1, 2019 $ (14,573 ) $ (5,746 ) $ (3,299 ) $ (23,618 ) Current-period other comprehensive (loss) income 1,736 1,164 (648 ) 2,252 Balance, March 31, 2019 $ (12,837 ) $ (4,582 ) $ (3,947 ) $ (21,366 ) (1) The foreign currency translation related to noncontrolling interests was not significant at March 31, 2019 or December 31, 2018 . Three Months Ended March 31, 2018 (In thousands) Foreign currency translation adjustments, net of tax attributable to The GEO Group, Inc. (1) Change in fair value of derivatives, net of tax Pension adjustments, net of tax Total Balance, January 1, 2018 (7,470 ) (11,892 ) (5,084 ) (24,446 ) Current-period other comprehensive (loss) income 513 736 105 1,354 Balance, March 31, 2018 (6,957 ) (11,156 ) (4,979 ) (23,092 ) 1) The foreign currency translation related to noncontrolling interests was not significant at March 31, 2018 or December 31, 2017. |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 was as follows for the three months ended March 31, 2019 : Shares Wtd. Avg. Exercise Price Wtd. Avg. Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) (in thousands) Options outstanding at January 1, 2019 1,462 $ 24.30 7.20 $ 924 Options granted 379 22.68 Options exercised (22 ) 14.83 Options forfeited/canceled/expired (55 ) 25.43 Options outstanding at March 31, 2019 1,764 $ 24.06 7.61 $ 700 Options vested and expected to vest at March 31, 2019 1,642 $ 24.11 7.49 $ 700 Options exercisable at March 31, 2019 896 $ 24.42 6.18 $ 700 |
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, 2019 : Shares Wtd. Avg. Grant Date Fair Value (in thousands) Restricted stock outstanding at January 1, 2019 2,018 $ 27.62 Granted 778 23.79 Vested (697 ) 24.08 Forfeited/canceled (6 ) 24.89 Restricted stock outstanding at March 31, 2019 2,093 $ 27.26 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 and 2018 as follows (in thousands, except per share data): Three Months Ended March 31, 2019 March 31, 2018 Net income $ 40,649 $ 34,920 Net loss attributable to noncontrolling interests 56 67 Net income attributable to The GEO Group, Inc. 40,705 34,987 Basic earnings per share attributable to The GEO Group, Inc.: Weighted average shares outstanding 118,774 121,768 Per share amount $ 0.34 $ 0.29 Diluted earnings per share attributable to The GEO Group, Inc.: Weighted average shares outstanding 118,774 121,768 Dilutive effect of equity incentive plans 721 536 Weighted average shares assuming dilution 119,496 122,304 Per share amount $ 0.34 $ 0.29 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Debt | Debt outstanding as of March 31, 2019 and December 31, 2018 consisted of the following (in thousands): March 31, 2019 December 31, 2018 Senior Credit Facility: Term loan $ 784,000 $ 786,000 Unamortized discount on term loan (2,729 ) (2,878 ) Unamortized debt issuance costs on term loan (6,472 ) (6,826 ) Revolver 529,904 490,843 Total Senior Credit Facility 1,304,703 1,267,139 6.00% Senior Notes: Notes Due in 2026 350,000 350,000 Unamortized debt issuance costs (4,691 ) (4,820 ) Total 6.00% Senior Notes Due in 2026 345,309 345,180 5.875% Senior Notes: Notes Due in 2024 250,000 250,000 Unamortized debt issuance costs (2,865 ) (2,971 ) Total 5.875% Senior Notes Due in 2024 247,135 247,029 5.125% Senior Notes: Notes Due in 2023 300,000 300,000 Unamortized debt issuance costs (3,386 ) (3,548 ) Total 5.125% Senior Notes Due in 2023 296,614 296,452 5.875% Senior Notes: Notes Due in 2022 250,000 250,000 Unamortized debt issuance costs (2,329 ) (2,514 ) Total 5.875% Senior Notes Due in 2022 247,671 247,486 Non-Recourse Debt 341,338 341,074 Unamortized debt issuance costs on non-recourse debt (2,738 ) (3,883 ) Unamortized discount on non-recourse debt (142 ) (164 ) Total Non-Recourse Debt 338,458 337,027 Finance Lease Liabilities 5,698 6,059 Other debt — 2,469 Total debt 2,785,588 2,748,841 Current portion of finance lease liabilities, long-term debt and non-recourse debt (332,864 ) (332,027 ) Finance Lease Liabilities, long-term portion (4,179 ) (4,570 ) Non-Recourse Debt, long-term portion (15,112 ) (15,017 ) Long-Term Debt $ 2,433,433 $ 2,397,227 |
Business Segments and Geograp_2
Business Segments and Geographic Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 March 31, 2018 Revenues: U.S. Corrections & Detention $ 390,510 $ 358,681 GEO Care 153,843 140,078 International Services 64,224 66,158 Facility Construction & Design [1] 2,090 — Total revenues $ 610,667 $ 564,917 Operating income from segments: U.S. Corrections & Detention $ 76,924 $ 69,188 GEO Care 38,538 31,692 International Services 5,739 5,402 Facility Construction & Design [1] — — Operating income from segments $ 121,201 $ 106,282 General and Administrative Expenses (46,424 ) (41,832 ) Total Operating Income $ 74,777 $ 64,450 [1] In 2019, Facility Construction & Design revenues related to an expansion project at the Company's Fulham Correctional Centre in Australia which is expected to be completed in the third quarter of 2020. There is no margin associated with the expansion. |
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, 2019 March 31, 2018 Operating income from segments $ 121,201 $ 106,282 Unallocated amounts: General and Administrative Expenses (46,424 ) (41,832 ) Net Interest Expense (31,884 ) (26,770 ) Income before income taxes and equity in earnings of affiliates $ 42,893 $ 37,680 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [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, 2019 Year Ended December 31, 2018 Change in Projected Benefit Obligation Projected benefit obligation, beginning of period $ 32,474 $ 32,820 Service cost 250 1,200 Interest cost 348 1,242 Actuarial loss — (2,166 ) Benefits paid (179 ) (622 ) Projected benefit obligation, end of period $ 32,893 $ 32,474 Change in Plan Assets Plan assets at fair value, beginning of period $ — $ — Company contributions 179 622 Benefits paid (179 ) (622 ) Plan assets at fair value, end of period $ — $ — Unfunded Status of the Plan $ (32,893 ) $ (32,474 ) |
Components of Net Periodic Benefit Cost | Three Months Ended March 31, 2019 March 31, 2018 Components of Net Periodic Benefit Cost Service cost $ 250 $ 300 Interest cost 348 310 Net loss 53 133 Net periodic pension cost $ 651 $ 743 |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ 228,382 $ 494,890 $ 68,968 $ (181,573 ) $ 610,667 Operating expenses 171,516 412,453 54,601 (181,573 ) 456,997 Depreciation and amortization 7,419 24,185 865 — 32,469 General and administrative expenses 17,200 24,030 5,194 — 46,424 Operating income 32,247 34,222 8,308 — 74,777 Interest income 3,478 1,335 8,198 (4,615 ) 8,396 Interest expense (23,296 ) (13,847 ) (7,752 ) 4,615 (40,280 ) Income before income taxes and equity in earnings of affiliates 12,429 21,710 8,754 — 42,893 Income tax provision 289 2,379 2,172 — 4,840 Equity in earnings of affiliates, net of income tax provision — — 2,596 — 2,596 Income before equity in income of consolidated subsidiaries 12,140 19,331 9,178 — 40,649 Income from consolidated subsidiaries, net of income tax provision 28,509 — — (28,509 ) — Net income 40,649 19,331 9,178 (28,509 ) 40,649 Net loss attributable to noncontrolling interests — — 56 — 56 Net income attributable to The GEO Group, Inc. $ 40,649 $ 19,331 $ 9,234 $ (28,509 ) $ 40,705 Net income $ 40,649 $ 19,331 $ 9,178 $ (28,509 ) $ 40,649 Other comprehensive income (loss), net of tax — (648 ) 2,900 — 2,252 Total comprehensive income $ 40,649 $ 18,683 $ 12,078 $ (28,509 ) $ 42,901 Comprehensive loss attributable to noncontrolling interests — — 56 — 56 Comprehensive income attributable to The GEO Group, Inc. $ 40,649 $ 18,683 $ 12,134 $ (28,509 ) $ 42,957 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (dollars in thousands) (unaudited) For the Three Months Ended March 31, 2018 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ 195,630 $ 458,728 $ 68,806 $ (158,247 ) $ 564,917 Operating expenses 151,822 377,966 55,168 (158,247 ) 426,709 Depreciation and amortization 6,460 24,443 1,023 — 31,926 General and administrative expenses 14,341 22,447 5,044 — 41,832 Operating income 23,007 33,872 7,571 — 64,450 Interest income 4,177 1,417 9,384 (5,879 ) 9,099 Interest expense (18,622 ) (14,460 ) (8,666 ) 5,879 (35,869 ) Income before income taxes and equity in earnings of affiliates 8,562 20,829 8,289 — 37,680 Income tax provision 177 2,300 2,278 — 4,755 Equity in earnings of affiliates, net of income tax provision — — 1,995 — 1,995 Income (loss) before equity in income of consolidated subsidiaries 8,385 18,529 8,006 — 34,920 Income from consolidated subsidiaries, net of income tax provision 26,535 — — (26,535 ) — Net income 34,920 18,529 8,006 (26,535 ) 34,920 Net loss attributable to noncontrolling interests — — 67 — 67 Net income attributable to The GEO Group, Inc. $ 34,920 $ 18,529 $ 8,073 $ (26,535 ) $ 34,987 Net income $ 34,920 $ 18,529 $ 8,006 $ (26,535 ) $ 34,920 Other comprehensive income, net of tax — 105 1,257 — 1,362 Total comprehensive income $ 34,920 $ 18,634 $ 9,263 $ (26,535 ) $ 36,282 Comprehensive loss attributable to noncontrolling interests — — 59 — 59 Comprehensive income attributable to The GEO Group, Inc. $ 34,920 $ 18,634 $ 9,322 $ (26,535 ) $ 36,341 |
CONDENSED CONSOLIDATING BALANCE SHEET | CONDENSED CONSOLIDATING BALANCE SHEET (dollars in thousands) (unaudited) As of March 31, 2019 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 32,701 $ 2,965 $ 32,062 $ — $ 67,728 Restricted cash and cash equivalents 1,125 — 52,624 — 53,749 Accounts receivable, less allowance for doubtful accounts 177,929 199,420 43,128 3,119 423,596 Contract receivable, current portion — — 16,005 — 16,005 Prepaid expenses and other current assets 586 40,108 4,736 (1,895 ) 43,535 Total current assets 212,341 242,493 148,555 1,224 604,613 Restricted Cash and Investments — 24,954 2,328 — 27,282 Property and Equipment, Net 842,309 1,223,123 85,195 — 2,150,627 Assets Held for Sale 705 3,902 — — 4,607 Contract Receivable — — 368,698 — 368,698 Operating Lease Right-of-Use Assets, Net 25,097 107,432 836 — 133,365 Intercompany Receivable 989,843 219,936 25,462 (1,235,241 ) — Deferred Income Tax Assets 798 27,928 1,198 — 29,924 Goodwill — 775,954 407 — 776,361 Intangible Assets, Net — 226,229 553 — 226,782 Investment in Subsidiaries 1,483,260 458,229 2,189 (1,943,678 ) — Other Non-Current Assets 7,931 113,075 19,289 (78,488 ) 61,807 Total Assets $ 3,562,284 $ 3,423,255 $ 654,710 $ (3,256,183 ) $ 4,384,066 LIABILITIES AND SHAREHOLDERS’ EQUITY Accounts payable $ 13,657 $ 70,420 $ 9,381 $ — $ 93,458 Accrued payroll and related taxes — 37,351 20,728 — 58,079 Accrued expenses and other current liabilities 35,765 126,669 26,938 (198 ) 189,174 Operating lease liabilities, current portion 5,042 29,786 382 — 35,210 Current portion of finance lease liabilities, long-term debt and non-recourse debt 8,000 1,521 323,343 — 332,864 Total current liabilities 62,464 265,747 380,772 (198 ) 708,785 Deferred Income Tax Liabilities — — 13,681 — 13,681 Intercompany Payable 92,733 1,106,285 34,800 (1,233,818 ) — Other Non-Current Liabilities 387 151,804 6,031 (78,488 ) 79,734 Operating lease Liabilities 20,612 81,171 455 — 102,238 Finance Lease Liabilities — 4,179 — — 4,179 Long-Term Debt 2,358,529 — 74,904 — 2,433,433 Non-Recourse Debt — — 15,112 — 15,112 Commitments & Contingencies and Other Shareholders' Equity: The GEO Group, Inc. Shareholders' Equity 1,027,559 1,814,069 129,610 (1,943,679 ) 1,027,559 Noncontrolling Interests — — (655 ) — (655 ) Total Shareholders’ Equity 1,027,559 1,814,069 128,955 (1,943,679 ) 1,026,904 Total Liabilities and Shareholders' Equity $ 3,562,284 $ 3,423,255 $ 654,710 $ (3,256,183 ) $ 4,384,066 CONDENSED CONSOLIDATING BALANCE SHEET (dollars in thousands) As of December 31, 2018 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Cash and cash equivalents $ 4,468 $ 7,873 $ 18,914 $ — $ 31,255 Restricted cash and cash equivalents 2,854 — 48,824 — 51,678 Accounts receivable, less allowance for doubtful accounts 190,594 221,957 44,377 (11,402 ) 445,526 Contract receivable, current portion — — 15,535 — 15,535 Prepaid expenses and other current assets 2,011 50,482 7,114 (1,839 ) 57,768 Total current assets 199,927 280,312 134,764 (13,241 ) 601,762 Restricted Cash and Investments — 21,009 1,422 — 22,431 Property and Equipment, Net 845,291 1,227,223 86,096 — 2,158,610 Assets Held for Sale 705 1,929 — — 2,634 Contract Receivable — — 368,178 368,178 Intercompany Receivable 990,365 150,710 22,407 (1,163,482 ) — Deferred Income Tax Assets 798 27,928 1,198 — 29,924 Goodwill — 775,955 404 — 776,359 Intangible Assets, Net — 231,787 573 — 232,360 Investment in Subsidiaries 1,503,841 458,229 2,190 (1,964,260 ) — Other Non-Current Assets 9,541 115,695 19,334 (78,710 ) 65,860 Total Assets $ 3,550,468 $ 3,290,777 $ 636,566 $ (3,219,693 ) $ 4,258,118 LIABILITIES AND SHAREHOLDERS’ EQUITY Accounts payable $ 13,566 $ 72,128 $ 7,338 $ — $ 93,032 Accrued payroll and related taxes — 56,543 19,466 — 76,009 Accrued expenses and other current liabilities 23,565 168,231 25,615 (13,241 ) 204,170 Current portion of finance lease liabilities, long-term debt and non-recourse debt 8,000 2,017 322,010 — 332,027 Total current liabilities 45,131 298,919 374,429 (13,241 ) 705,238 Deferred Income Tax Liabilities — — 13,681 — 13,681 Intercompany Payable 142,055 989,856 31,571 (1,163,482 ) — Other Non-Current Liabilities 1,395 152,815 6,981 (78,710 ) 82,481 Finance Lease Liabilities — 4,570 — — 4,570 Long-Term Debt 2,321,384 — 75,843 — 2,397,227 Non-Recourse Debt — — 15,017 — 15,017 Commitments & Contingencies and Other Shareholders' Equity: The GEO Group, Inc. Shareholders' Equity 1,040,503 1,844,617 119,643 (1,964,260 ) 1,040,503 Noncontrolling Interests — — (599 ) — (599 ) Total Shareholders’ Equity 1,040,503 1,844,617 119,044 (1,964,260 ) 1,039,904 Total Liabilities and Shareholders' Equity $ 3,550,468 $ 3,290,777 $ 636,566 $ (3,219,693 ) $ 4,258,118 |
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (dollars in thousands) (unaudited) For the Three Months Ended March 31, 2019 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Consolidated Cash Flow from Operating Activities: Net cash provided by operating activities $ 14,354 $ 20,879 $ 63,778 $ 99,011 Cash Flow from Investing Activities: Insurance proceeds - damaged property — 2,503 — 2,503 Proceeds from sale of property and equipment — 274 — 274 Change in restricted investments — (4,062 ) — (4,062 ) Capital expenditures (6,608 ) (21,452 ) (24 ) (28,084 ) Net cash used in investing activities (6,608 ) (22,737 ) (24 ) (29,369 ) Cash Flow from Financing Activities: Proceeds from long-term debt 130,000 — — 130,000 Payments on long-term debt (96,926 ) — — (96,926 ) Payments on non-recourse debt — — (2,089 ) (2,089 ) Taxes paid related to net share settlements of equity awards (4,172 ) — — (4,172 ) Proceeds from issuance of common stock in connection with ESPP 124 — — 124 Proceeds from stock options exercised 333 — — 333 Dividends paid (57,945 ) — — (57,945 ) Net cash used in financing activities (28,586 ) — (2,089 ) (30,675 ) Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash and Cash Equivalents — — 366 366 Net (Decrease) Increase in Cash. Cash Equivalents and Restricted Cash and Cash Equivalents (20,840 ) (1,858 ) 62,031 39,333 Cash, Cash Equivalents and Restricted Cash and Cash Equivalents, beginning of period 54,666 4,823 24,983 84,472 Cash, Cash Equivalents and Restricted Cash and Cash Equivalents, end of period $ 33,826 $ 2,965 $ 87,014 $ 123,805 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (dollars in thousands) (unaudited) For the Three Months Ended March 31, 2018 The GEO Group, Inc. Combined Subsidiary Guarantors Combined Non-Guarantor Subsidiaries Consolidated Cash Flow from Operating Activities: Net cash provided by operating activities $ 39,888 $ 17,614 $ 12,184 $ 69,686 Cash Flow from Investing Activities: Proceeds from sale of assets held for sale — 3,797 3,797 Insurance proceeds - damaged property — 4,504 — 4,504 Change in restricted investments — (505 ) — (505 ) Capital expenditures (34,360 ) (16,654 ) (1,133 ) (52,147 ) Net cash used in investing activities (34,360 ) (8,858 ) (1,133 ) (44,351 ) Cash Flow from Financing Activities: Proceeds from long-term debt 102,000 — — 102,000 Payments on long-term debt (43,000 ) — — (43,000 ) Payments on non-recourse debt — — (5,600 ) (5,600 ) Taxes paid related to net share settlements of equity awards (4,356 ) — — (4,356 ) Proceeds from issuance of common stock in connection with ESPP 140 — — 140 Proceeds from stock options exercised 260 — — 260 Payments for repurchases of common stock (40,182 ) — — (40,182 ) Dividends paid (58,238 ) — — (58,238 ) Net cash used in financing activities (43,376 ) — (5,600 ) (48,976 ) Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash and Cash Equivalents — — (655 ) (655 ) Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash and Cash Equivalents (37,848 ) 8,756 4,796 (24,296 ) Cash, Cash Equivalents and Restricted Cash and Cash Equivalents, beginning of period 54,666 4,952 73,927 133,545 Cash, Cash Equivalents and Restricted Cash and Cash Equivalents, end of period $ 16,818 $ 13,708 $ 78,723 $ 109,249 |
Basis of Presentation (Details)
Basis of Presentation (Details) person in Thousands, detainee in Thousands, bed in Thousands | Mar. 31, 2019personfacilitydetaineebed |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of beds | bed | 95 |
Correctional, detention and residential treatment facilities including projects under development | facility | 134 |
Provision of monitoring services tracking offenders (more than) | person | 210 |
Provision of monitoring services tracking offenders using technology products (in detainees) | detainee | 100 |
Leases - Additional information
Leases - Additional information (Details) | 3 Months Ended |
Mar. 31, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Finance lease, renewal term | 10 years |
Operating lease, renewal term | 10 years |
Minimum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Finance lease, remaining term of contract | 1 year |
Operating lease, remaining term of contract | 1 year |
Maximum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Finance lease, remaining term of contract | 77 years |
Operating lease, remaining term of contract | 77 years |
Leases - Assets and Liabilities
Leases - Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Operating Lease Right-of-Use Assets, Net | $ 133,365 | $ 0 |
Property and Equipment, Net | 3,647 | |
Total lease assets | 137,012 | |
Operating lease liabilities, current portion | 35,210 | 0 |
Current portion of finance liabilities, long-term debt and non-recourse debt | 1,519 | |
Long-term lease obligations | 102,238 | 0 |
Long-term lease obligations | 4,179 | $ 4,570 |
Total lease liabilities | $ 143,146 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 12,492 |
Amortization of right-of-use assets | 256 |
Interest on lease liabilities | 113 |
Total finance lease cost | 369 |
Short-term lease cost | 1,915 |
Total Lease Cost | 14,776 |
Operating cash flows for operating leases | 12,616 |
Operating cash flows for finance leases | 113 |
Financing activities for finance leases | 394 |
Right-of-use assets obtained in exchange for new operating lease liabilties | $ 3,164 |
Operating leases | 7 years 3 months 12 days |
Finance leases | 3 years 4 months 12 days |
Operating leases | 4.71% |
Finance leases | 8.27% |
Leases - Maturities (Details)
Leases - Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Operating Leases | ||
2019 | $ 31,919 | |
2020 | 30,134 | |
2021 | 21,376 | |
2022 | 16,054 | |
2023 | 13,430 | |
Thereafter | 51,675 | |
Less: amount of lease payment representing interest | 164,588 | |
Less: amount of lease payment representing interest | (27,140) | |
Present value of future minimum lease payments | 137,448 | |
Less: current obligations under leases | (35,210) | $ 0 |
Long-term lease obligations | 102,238 | 0 |
Finance Leases | ||
2019 | 1,450 | |
2020 | 1,934 | |
2021 | 1,936 | |
2022 | 1,234 | |
2023 | 0 | |
Thereafter | 0 | |
Total minimum lease payments | 6,554 | |
Less: amount of lease payment representing interest | (856) | |
Present value of future minimum lease payments | 5,698 | |
Less: current obligations under leases | (1,519) | |
Long-term lease obligations | $ 4,179 | $ 4,570 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Liabilities: | ||
Accounts receivable, transferred to third party | $ 3,000 | |
Proceeds from sale of receivables | 3,000 | |
Recurring | ||
Restricted investment: | ||
Rabbi Trust | 24,954 | $ 20,892 |
Fixed income securities | 1,848 | 1,801 |
Recurring | Interest rate swap derivatives | ||
Liabilities: | ||
Interest rate swap derivatives | 5,393 | 8,638 |
Recurring | Quoted Prices in Active Markets (Level 1) | ||
Restricted investment: | ||
Rabbi Trust | 0 | 0 |
Fixed income securities | 0 | 0 |
Recurring | Quoted Prices in Active Markets (Level 1) | Interest rate swap derivatives | ||
Liabilities: | ||
Interest rate swap derivatives | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | ||
Restricted investment: | ||
Rabbi Trust | 24,954 | 20,892 |
Fixed income securities | 1,848 | 1,801 |
Recurring | Significant Other Observable Inputs (Level 2) | Interest rate swap derivatives | ||
Liabilities: | ||
Interest rate swap derivatives | 5,393 | 8,638 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Restricted investment: | ||
Rabbi Trust | 0 | 0 |
Fixed income securities | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | Interest rate swap derivatives | ||
Liabilities: | ||
Interest rate swap derivatives | $ 0 | $ 0 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning of period | $ 776,359 |
Acquisition Adjustments | 0 |
Foreign Currency Translation | 2 |
Goodwill, end of period | 776,361 |
U.S. Corrections & Detention | |
Goodwill [Roll Forward] | |
Goodwill, beginning of period | 316,366 |
Acquisition Adjustments | 0 |
Foreign Currency Translation | 0 |
Goodwill, end of period | 316,366 |
GEO Care | |
Goodwill [Roll Forward] | |
Goodwill, beginning of period | 459,589 |
Acquisition Adjustments | 0 |
Foreign Currency Translation | 0 |
Goodwill, end of period | 459,589 |
International Services | |
Goodwill [Roll Forward] | |
Goodwill, beginning of period | 404 |
Acquisition Adjustments | 0 |
Foreign Currency Translation | 2 |
Goodwill, end of period | $ 406 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ (160,634) | $ (155,659) |
Net Carrying Amount | 181,582 | |
Gross carrying amount | 387,416 | 388,019 |
Total acquired intangible assets | 226,782 | 232,360 |
Trade names | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Trade name (Indefinite lived) | $ 45,200 | 45,200 |
Facility management contracts | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 16 years 3 months | |
Gross Carrying Amount | $ 308,516 | 308,419 |
Accumulated Amortization | (132,753) | (127,481) |
Net Carrying Amount | $ 175,763 | 180,938 |
Covenants not to compete | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 1 year | |
Gross Carrying Amount | $ 0 | 700 |
Accumulated Amortization | 0 | (700) |
Net Carrying Amount | $ 0 | 0 |
Technology | ||
Schedule of Finite and Indefinite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 7 years 3 months | |
Gross Carrying Amount | $ 33,700 | 33,700 |
Accumulated Amortization | (27,881) | (27,478) |
Net Carrying Amount | $ 5,819 | $ 6,222 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Estimated Amortization Expense (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Estimated amortization expense for the remainder | |
Remainder of 2019 | $ 16,522 |
2020 | 22,306 |
2021 | 19,782 |
2022 | 18,273 |
2023 | 13,632 |
Thereafter | 91,067 |
Net Carrying Amount | $ 181,582 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 5.6 | $ 6.1 |
Facility management contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average period | 1 year 5 months 24 days |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities - Carrying Values and Fair Values (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Assets: | |||
Cash and cash equivalents | $ 67,728 | $ 31,255 | $ 49,235 |
Carrying Value | |||
Assets: | |||
Cash and cash equivalents | 67,728 | 31,255 | |
Restricted cash and investments | 56,077 | 53,217 | |
Liabilities: | |||
Borrowings under senior credit facility | 1,311,175 | 1,273,965 | |
Non-recourse debt | 341,196 | 340,910 | |
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 | 6.00% Senior Notes | |||
Liabilities: | |||
Senior notes | 350,000 | 350,000 | |
Estimate of Fair Value Measurement | |||
Assets: | |||
Cash and cash equivalents | 67,728 | 31,255 | |
Restricted cash and investments | 56,077 | 53,217 | |
Liabilities: | |||
Borrowings under senior credit facility | 1,252,400 | 1,188,196 | |
Non-recourse debt | 341,595 | 348,274 | |
Estimate of Fair Value Measurement | 5.875% Senior Notes due 2024 | |||
Liabilities: | |||
Senior notes | 219,278 | 224,590 | |
Estimate of Fair Value Measurement | 5.125% Senior Notes | |||
Liabilities: | |||
Senior notes | 266,034 | 271,992 | |
Estimate of Fair Value Measurement | 5.875% Senior Notes due 2022 | |||
Liabilities: | |||
Senior notes | 242,853 | 244,550 | |
Estimate of Fair Value Measurement | 6.00% Senior Notes | |||
Liabilities: | |||
Senior notes | 294,914 | 310,177 | |
Estimate of Fair Value Measurement | Level 1 | |||
Assets: | |||
Cash and cash equivalents | 67,728 | 31,255 | |
Restricted cash and investments | 53,148 | 49,884 | |
Liabilities: | |||
Borrowings under senior credit facility | 0 | 0 | |
Non-recourse debt | 0 | 0 | |
Estimate of Fair Value Measurement | Level 1 | 5.875% Senior Notes due 2024 | |||
Liabilities: | |||
Senior notes | 0 | 0 | |
Estimate of Fair Value Measurement | Level 1 | 5.125% Senior Notes | |||
Liabilities: | |||
Senior notes | 0 | 0 | |
Estimate of Fair Value Measurement | Level 1 | 5.875% Senior Notes due 2022 | |||
Liabilities: | |||
Senior notes | 0 | 0 | |
Estimate of Fair Value Measurement | Level 1 | 6.00% Senior Notes | |||
Liabilities: | |||
Senior notes | 0 | 0 | |
Estimate of Fair Value Measurement | Level 2 | |||
Assets: | |||
Cash and cash equivalents | 0 | 0 | |
Restricted cash and investments | 2,929 | 2,284 | |
Liabilities: | |||
Borrowings under senior credit facility | 1,252,400 | 1,188,196 | |
Non-recourse debt | 341,595 | 348,274 | |
Estimate of Fair Value Measurement | Level 2 | 5.875% Senior Notes due 2024 | |||
Liabilities: | |||
Senior notes | 219,278 | 224,590 | |
Estimate of Fair Value Measurement | Level 2 | 5.125% Senior Notes | |||
Liabilities: | |||
Senior notes | 266,034 | 271,992 | |
Estimate of Fair Value Measurement | Level 2 | 5.875% Senior Notes due 2022 | |||
Liabilities: | |||
Senior notes | 242,853 | 244,550 | |
Estimate of Fair Value Measurement | Level 2 | 6.00% Senior Notes | |||
Liabilities: | |||
Senior notes | 294,914 | 310,177 | |
Estimate of Fair Value Measurement | Level 3 | |||
Assets: | |||
Cash and cash equivalents | 0 | 0 | |
Restricted cash and investments | 0 | 0 | |
Liabilities: | |||
Borrowings under senior credit facility | 0 | 0 | |
Non-recourse debt | 0 | 0 | |
Estimate of Fair Value Measurement | Level 3 | 5.875% Senior Notes due 2024 | |||
Liabilities: | |||
Senior notes | 0 | 0 | |
Estimate of Fair Value Measurement | Level 3 | 5.125% Senior Notes | |||
Liabilities: | |||
Senior notes | 0 | 0 | |
Estimate of Fair Value Measurement | Level 3 | 5.875% Senior Notes due 2022 | |||
Liabilities: | |||
Senior notes | 0 | 0 | |
Estimate of Fair Value Measurement | Level 3 | 6.00% Senior Notes | |||
Liabilities: | |||
Senior notes | $ 0 | $ 0 |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities - Narrative (Details) - Senior Notes | Mar. 31, 2019 |
5.875% Senior Notes, due 2024 | |
Debt Instrument [Line Items] | |
Interest rate | 5.875% |
5.125% Senior Notes, due 2023 | |
Debt Instrument [Line Items] | |
Interest rate | 5.125% |
5.875% Senior Notes due 2022 | |
Debt Instrument [Line Items] | |
Interest rate | 5.875% |
6.00% Senior Notes | |
Debt Instrument [Line Items] | |
Interest rate | 6.00% |
Restricted Cash and Cash Equi_3
Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 67,728 | $ 31,255 | $ 49,235 | |
Restricted cash and cash equivalents - current | 53,749 | 56,888 | ||
Restricted cash and investments - non-current | 27,282 | 24,394 | ||
Less Restricted investments - non-current | (24,954) | (21,268) | ||
Total cash, cash equivalents and restricted cash and cash equivalents shown in the statement of cash flows | $ 123,805 | $ 84,472 | $ 109,249 | $ 133,545 |
Shareholders' Equity - Changes
Shareholders' Equity - Changes in Shareholders' Equity (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Jan. 01, 2019 | |
Changes in shareholders' equity that are attributable to the Company's shareholders and to non controlling interests | |||
Beginning Balance | $ 1,039,904 | $ 1,198,919 | |
Proceeds from exercise of stock options | $ 333 | 261 | |
Proceeds from exercise of stock options (shares) | 22 | ||
Stock-based compensation expense | $ 6,727 | 5,827 | |
Restricted stock granted | 0 | ||
Restricted stock canceled | 0 | 0 | |
Dividends paid | (57,945) | (58,319) | |
Shares withheld for net settlements of share-based awards | (4,172) | (4,357) | |
Issuance of common stock - ESPP | 124 | 141 | |
Repurchases of common stock | (40,182) | ||
Transition adjustment for accounting standard adoption | $ 0 | ||
Net income (loss) | 40,649 | 34,920 | |
Other comprehensive income | 2,252 | 1,362 | |
Ending Balance | 1,026,904 | 1,138,572 | |
Common shares | |||
Changes in shareholders' equity that are attributable to the Company's shareholders and to non controlling interests | |||
Beginning Balance | $ 1,248 | $ 1,240 | |
Beginning Balance, shares | 120,585 | 124,008 | |
Proceeds from exercise of stock options | $ 0 | $ 1 | |
Proceeds from exercise of stock options (shares) | 22 | 15 | |
Restricted stock granted | $ 8 | ||
Restricted stock granted (shares) | 778 | ||
Restricted stock canceled | $ 0 | $ 0 | |
Restricted stock canceled (shares) | (6) | (9) | |
Shares withheld for net settlements of share-based awards | $ (2) | $ (2) | |
Shares withheld for net settlements of share-based awards (shares) | (198) | (169) | |
Repurchases of common stock (shares) | (1,848) | ||
Issuance of common stock - ESPP (shares) | 6 | 8 | |
Ending Balance | $ 1,254 | $ 1,239 | |
Ending Balance, shares | 121,187 | 122,005 | |
Additional Paid-In Capital | |||
Changes in shareholders' equity that are attributable to the Company's shareholders and to non controlling interests | |||
Beginning Balance | $ 1,210,916 | $ 1,190,906 | |
Proceeds from exercise of stock options | 333 | 260 | |
Stock-based compensation expense | 6,727 | 5,827 | |
Restricted stock granted | (8) | ||
Shares withheld for net settlements of share-based awards | (4,170) | (4,355) | |
Issuance of common stock - ESPP | 124 | 141 | |
Ending Balance | 1,213,922 | 1,192,779 | |
Earnings in Excess of Distributions | |||
Changes in shareholders' equity that are attributable to the Company's shareholders and to non controlling interests | |||
Beginning Balance | (52,868) | 31,541 | |
Dividends paid | (57,945) | (58,319) | |
Transition adjustment for accounting standard adoption | (968) | ||
Net income (loss) | 40,705 | 34,987 | |
Ending Balance | (71,076) | 8,209 | |
Accumulated Other Comprehensive Loss | |||
Changes in shareholders' equity that are attributable to the Company's shareholders and to non controlling interests | |||
Beginning Balance | (23,618) | (24,446) | |
Transition adjustment for accounting standard adoption | $ 968 | ||
Other comprehensive income | 1,354 | ||
Ending Balance | (21,366) | (23,092) | |
Treasury shares | |||
Changes in shareholders' equity that are attributable to the Company's shareholders and to non controlling interests | |||
Beginning Balance | $ (95,175) | $ 0 | |
Beginning Balance, shares | 4,210 | 0 | |
Repurchases of common stock (shares) | 1,848 | ||
Repurchases of common stock | $ (40,182) | ||
Ending Balance | $ (95,175) | $ (40,182) | |
Ending Balance, shares | 4,210 | 1,848 | |
Noncontrolling Interests | |||
Changes in shareholders' equity that are attributable to the Company's shareholders and to non controlling interests | |||
Beginning Balance | $ (599) | $ (322) | |
Net income (loss) | (56) | (67) | |
Other comprehensive income | 8 | ||
Ending Balance | (655) | $ (381) | |
Accounting Standards Update 2016-02 | |||
Changes in shareholders' equity that are attributable to the Company's shareholders and to non controlling interests | |||
Other comprehensive income | 1,284 | ||
Accounting Standards Update 2016-02 | Accumulated Other Comprehensive Loss | |||
Changes in shareholders' equity that are attributable to the Company's shareholders and to non controlling interests | |||
Other comprehensive income | 1,284 | ||
Accounting Standards Update 2016-02 | Noncontrolling Interests | |||
Changes in shareholders' equity that are attributable to the Company's shareholders and to non controlling interests | |||
Other comprehensive income | $ 0 |
Shareholders' Equity - Dividend
Shareholders' Equity - Dividends Declared (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||||
Mar. 31, 2019 | Feb. 04, 2019 | Oct. 15, 2018 | Jul. 10, 2018 | Apr. 11, 2018 | Feb. 05, 2018 | |
Dividends Payable [Line Items] | ||||||
Minimum percentage of taxable income to be distributed as REIT | 90.00% | |||||
Dividend Paid [Member] | ||||||
Dividends Payable [Line Items] | ||||||
Distribution Per Share (USD per share) | $ 0.48 | $ 0.47 | $ 0.47 | $ 0.47 | $ 0.47 | |
Aggregate Payment Amount | $ 57.9 | $ 57.2 | $ 57.2 | $ 57.4 | $ 58.3 |
Shareholders' Equity - Stock Bu
Shareholders' Equity - Stock Buyback Program and Prospectus Supplement (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2019 | Apr. 30, 2018 | Feb. 14, 2018 | Nov. 09, 2017 | |
Common shares | February 2018 Stock Buyback Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 200,000,000 | |||
Prospectus Supplement | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Maximum common stock value authorized under prospectus supplement | $ 150,000,000 | |||
Issuance of common stock under prospectus supplement (in shares) | 0 | |||
Amended Credit Agreement | Revolving Credit Facility | Line of Credit | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Maximum borrowing capacity | $ 900,000,000 |
Shareholders' Equity - Componen
Shareholders' Equity - Components of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Components of Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | $ 1,040,503 | |
Current-period other comprehensive (loss) income | 2,252 | $ 1,354 |
Ending balance | 1,027,559 | |
Foreign currency translation adjustments, net of tax attributable to The GEO Group, Inc. | ||
Components of Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (14,573) | (7,470) |
Current-period other comprehensive (loss) income | 1,736 | 513 |
Ending balance | (12,837) | (6,957) |
Change in fair value of derivatives, net of tax | ||
Components of Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (5,746) | (11,892) |
Current-period other comprehensive (loss) income | 1,164 | 736 |
Ending balance | (4,582) | (11,156) |
Pension adjustments, net of tax | ||
Components of Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (3,299) | (5,084) |
Current-period other comprehensive (loss) income | (648) | 105 |
Ending balance | (3,947) | (4,979) |
Total | ||
Components of Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (23,618) | (24,446) |
Ending balance | $ (21,366) | $ (23,092) |
Equity Incentive Plans - Stock
Equity Incentive Plans - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Shares | ||
Options outstanding, Beginning Balance, Shares | 1,462 | |
Options granted, Shares | 379 | |
Options exercised, Shares | (22) | |
Options forfeited/canceled/expired, Shares | (55) | |
Options outstanding, Ending Balance, Shares | 1,764 | 1,462 |
Options vested and expected to vest, ending balance, Shares | 1,642 | |
Options exercisable, ending balance, Shares | 896 | |
Wtd. Avg. Exercise Price | ||
Options outstanding, Beginning Balance, Wtd. Avg. Exercise Price (in dollars per share) | $ 24.30 | |
Options granted, Wtd. Avg. Exercise Price (in dollars per share) | 22.68 | |
Options exercised, Wtd. Avg. Exercise Price (in dollars per share) | 14.83 | |
Options forfeited/canceled/expired, Wtd. Avg. Exercise Price (in dollars per share) | 25.43 | |
Options outstanding, Ending Balance, Wtd. Avg. Exercise Price (in dollars per share) | 24.06 | $ 24.30 |
Options vested and expected to vest, ending balance, Wtd. Avg. Exercise Price (in dollars per share) | 24.11 | |
Options exercisable, ending balance, Wtd. Avg. Exercise Price (in dollars per share) | $ 24.42 | |
Options, Additional Disclosures | ||
Options outstanding, Remaining Contractual Term | 7 years 7 months 11 days | 7 years 2 months 12 days |
Options vested and expected to vest, ending balance, Wtd. Avg., Remaining Contractual Term | 7 years 5 months 25 days | |
Options exercisable, ending balance, Wtd. Avg. Remaining Contractual Term | 6 years 1 month 35 days | |
Options outstanding, Aggregate Intrinsic Value | $ 700 | $ 924 |
Options vested and expected to vest, ending balance, Aggregate Intrinsic Value | 700 | |
Options exercisable, ending balance, Aggregate Intrinsic Value | $ 700 |
Equity Incentive Plans - Restri
Equity Incentive Plans - Restricted Stock Activity (Details) - Restricted Stock shares in Thousands | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Shares | |
Restricted stock outstanding shares, Beginning Balance | shares | 2,018 |
Granted shares | shares | 778 |
Vested shares | shares | (697) |
Forfeited/canceled shares | shares | (6) |
Restricted stock outstanding shares, Ending Balance | shares | 2,093 |
Wtd. Avg. Grant Date Fair Value | |
Restricted stock outstanding Wtd. Avg. Grant Date Fair Value, Beginning Balance (in dollars per share) | $ / shares | $ 27.62 |
Granted Wtd. Avg. Grant Date Fair Value (in dollars per share) | $ / shares | 23.79 |
Vested Wtd. Avg. Grant Date Fair Value (in dollars per share) | $ / shares | 24.08 |
Forfeited/canceled Wtd. Avg. Grant Date Fair Value (in dollars per share) | $ / shares | 24.89 |
Restricted stock outstanding Wtd. Avg. Grant Date Fair Value, Ending Balance (in dollars per share) | $ / shares | $ 27.26 |
Equity Incentive Plans - Narrat
Equity Incentive Plans - Narrative (Details) $ / shares in Units, $ in Millions | Mar. 01, 2019shares | Mar. 31, 2019USD ($)metricshares | Mar. 31, 2018USD ($)$ / shares | Apr. 24, 2018shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted (in shares) | 379,000 | |||
Grant date fair value (in dollars per share) | $ / shares | $ 3.96 | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected volatility rate | 43.70% | |||
Risk free interest rate | 2.53% | |||
Share based compensation expense | $ | $ 6.5 | $ 5.6 | ||
Unrecognized compensation costs related to non vested stock option awards | $ | $ 41.2 | |||
Expected weighted average period to recognize expense | 2 years 6 months 40 days | |||
Granted shares | 778,000 | |||
Number of annual performance metrics | metric | 2 | |||
Beta | 1 | |||
Restricted Stock | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Award vesting rights, percentage | 0.00% | |||
Restricted Stock | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Award vesting rights, percentage | 200.00% | |||
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 (in shares) | 750,000 | |||
Shares issued (in shares) | 5,886 | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected volatility rate | 40.69% | |||
Expected term | 5 years | |||
Risk free interest rate | 2.44% | |||
Expected dividend yield | 8.47% | |||
Options granted (in shares) | 379,000 | |||
Share based compensation expense | $ | $ 0.3 | $ 0.2 | ||
Unrecognized compensation costs related to non vested stock option awards | $ | $ 2.9 | |||
Expected weighted average period to recognize expense | 3 years 1 month 12 days | |||
2018 Stock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for issuance | 4,600,000 | |||
Certain Employees and Executive Officers | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted shares | 778,000 | |||
Certain Employees and Executive Officers | Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted shares | 250,000 | |||
Performance metric one | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Award vesting rights, percentage | 50.00% | |||
Award performance period | 3 years | |||
Performance metric two | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights, percentage | 50.00% | |||
Award performance period | 3 years |
- Earnings Per Share Calculatio
- Earnings Per Share Calculation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||
Net income | $ 40,649 | $ 34,920 |
Net loss attributable to noncontrolling interests | 56 | 67 |
Net income attributable to The GEO Group, Inc. | $ 40,705 | $ 34,987 |
Basic earnings per share attributable to The GEO Group, Inc.: | ||
Weighted average shares outstanding (in shares) | 118,774 | 121,768 |
Per share amount (USD per share) | $ 0.34 | $ 0.29 |
Diluted earnings per share attributable to The GEO Group, Inc.: | ||
Weighted average shares outstanding (in shares) | 118,774 | 121,768 |
Dilutive effect of equity incentive plans (in shares) | 721 | 536 |
Weighted average shares assuming dilution (in shares) | 119,496 | 122,304 |
Income from continuing operations (USD per share) | $ 0.34 | $ 0.29 |
Earnings Per Share - Anti-dilut
Earnings Per Share - Anti-dilutive Shares Excluded from Diluted EPS (Details) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restricted Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 874,714 | 757,401 |
Stock Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 1,191,206 | 759,382 |
Derivative Financial Instrume_2
Derivative Financial Instruments - Australia Ravenhall (Details) $ in Millions | 3 Months Ended | |||
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2019AUD ($) | Mar. 31, 2019USD ($) | |
Derivative [Line Items] | ||||
Unrealized gain, net of tax, related to cash flow hedge | $ 1,164,000 | $ 736,000 | ||
Ravenhall, Australia | ||||
Derivative [Line Items] | ||||
Ineffective portion of Cash Flow Hedge interest rate swap | 0 | |||
Ravenhall, Australia | Other Noncurrent Liabilities | ||||
Derivative [Line Items] | ||||
Fair value of the swap liability | $ 5,400,000 | |||
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 | $ 448 | $ 318,100,000 | ||
Ravenhall, Australia | Cash Flow Hedge | ||||
Derivative [Line Items] | ||||
Unrealized gain, net of tax, related to cash flow hedge | $ 1,200,000 |
Debt - Debt Outstanding (Detail
Debt - Debt Outstanding (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Term loan | $ 784,000 | $ 786,000 |
Unamortized discount | (2,729) | (2,878) |
Unamortized debt issuance costs | (6,472) | (6,826) |
Revolver | 529,904 | 490,843 |
Total Senior Credit Facility | 1,304,703 | 1,267,139 |
Finance Lease Liabilities | 5,698 | 6,059 |
Other debt | 0 | 2,469 |
Total debt | 2,785,588 | 2,748,841 |
Current portion of finance lease liabilities, long-term debt and non-recourse debt | (332,864) | (332,027) |
Finance Lease Liabilities, long-term portion | (4,179) | (4,570) |
Non-Recourse Debt, long-term portion | (15,112) | (15,017) |
Long-Term Debt | 2,433,433 | 2,397,227 |
Non-Recourse Debt | ||
Debt Instrument [Line Items] | ||
Unamortized discount | (142) | (164) |
Unamortized debt issuance costs | (2,738) | (3,883) |
Non-Recourse Debt | 341,338 | 341,074 |
Total Non-Recourse Debt | 338,458 | 337,027 |
6.00% Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | (4,691) | (4,820) |
Long-term Debt, Gross | 350,000 | 350,000 |
Long-term Debt | $ 345,309 | 345,180 |
Interest rate | 6.00% | |
5.875% Senior Notes, due 2024 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | $ (2,865) | (2,971) |
Long-term Debt, Gross | 250,000 | 250,000 |
Long-term Debt | $ 247,135 | 247,029 |
Interest rate | 5.875% | |
5.125% Senior Notes, due 2023 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | $ (3,386) | (3,548) |
Long-term Debt, Gross | 300,000 | 300,000 |
Long-term Debt | $ 296,614 | 296,452 |
Interest rate | 5.125% | |
5.875% Senior Notes due 2022 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | $ (2,329) | (2,514) |
Long-term Debt, Gross | 250,000 | 250,000 |
Long-term Debt | $ 247,671 | $ 247,486 |
Interest rate | 5.875% |
Debt - Amended Credit Agreement
Debt - Amended Credit Agreement (Details) | Apr. 30, 2018USD ($) | Mar. 31, 2019AUD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Apr. 30, 2018AUD ($) | Apr. 30, 2018USD ($) |
Debt Instrument [Line Items] | ||||||
Loan costs | $ 6,472,000 | $ 6,826,000 | ||||
Term loan | 784,000,000 | 786,000,000 | ||||
Revolver | $ 529,904,000 | $ 490,843,000 | ||||
Weighted average interest rate | 4.60% | 4.60% | ||||
Revolver | ||||||
Debt Instrument [Line Items] | ||||||
Revolver | $ 530,000,000 | |||||
Additional Revolver | ||||||
Debt Instrument [Line Items] | ||||||
Borrowing capacity increase | 308,000,000 | |||||
Revolving Credit Facility | Line of Credit | Amended Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 900,000,000 | |||||
Total leverage ratio, maximum | 6.25 | 6.25 | ||||
Senior secured leverage ratio | 3.50 | 3.50 | ||||
Interest coverage ratio | 3 | 3 | ||||
Revolving Credit Facility | Line of Credit | Amended Credit Agreement | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.25% | 2.25% | ||||
Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 62,000,000 | |||||
Letter of Credit | Line of Credit | Amended Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 275,000,000 | |||||
Loan costs | $ 1,000,000 | |||||
Long-term debt | 0 | |||||
Letter of Credit | Line of Credit | Bank Guarantee and Standby Sub Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 100,000,000 | 71,000,000 | ||||
Accordion | Line of Credit | Amended Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Accordion feature, increase limit | $ 450,000,000 | |||||
Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Term loan | $ 784,000,000 | |||||
Term Loan | Line of Credit | Amended Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 792,000,000 | |||||
Term Loan | Line of Credit | Amended Credit Agreement | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.00% | 2.00% | ||||
Interest rate | 0.75% | 0.75% |
Debt - Senior Notes (Details)
Debt - Senior Notes (Details) - Senior Notes | Mar. 31, 2019 |
6.00% Senior Notes, due 2026 | |
Debt Instrument [Line Items] | |
Interest rate | 6.00% |
5.875% Senior Notes, due 2024 | |
Debt Instrument [Line Items] | |
Interest rate | 5.875% |
5.125% Senior Notes, due 2023 | |
Debt Instrument [Line Items] | |
Interest rate | 5.125% |
5.875% Senior Notes due 2022 | |
Debt Instrument [Line Items] | |
Interest rate | 5.875% |
Debt - Non-Recourse Debt (Detai
Debt - Non-Recourse Debt (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019AUD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Mar. 31, 2018USD ($) | |
Debt Instrument [Line Items] | ||||
Restricted cash and cash equivalents - current | $ 53,749 | $ 56,888 | ||
Revolver | 529,904 | $ 490,843 | ||
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 | 338,458 | $ 337,027 | ||
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] | ||||
Restricted cash and cash equivalents - current | 8,000 | |||
Northwest Detention Center | Non-Recourse Debt, 2011 Revenue Bonds | ||||
Debt Instrument [Line Items] | ||||
Face amount | $ 54,400 | |||
Interest rate | 5.25% | 5.25% | ||
Non-recourse debt | $ 23,000 | |||
Current portion of non recourse debt | 7,300 | |||
Ravenhall | National Australia Bank Limited | Construction Facility | Non-Recourse Debt | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 791,000,000 | 561,600 | ||
Revolver | $ 318,000 |
Debt - Guarantees (Details)
Debt - Guarantees (Details) $ in Millions | Mar. 31, 2019AUD ($)guarantee | Mar. 31, 2019ZAR (R)guarantee | Mar. 31, 2019USD ($)guarantee |
Ravenhall | |||
Line of Credit Facility [Line Items] | |||
Number of letters of guarantee outstanding under separate international facilities relating to performance guarantees | guarantee | 9 | 9 | 9 |
Letters of credit outstanding relating to performance guarantees | $ 12,300,000 | ||
Ravenhall | Letter of Credit | Revolver | |||
Line of Credit Facility [Line Items] | |||
Guaranteed obligations | $ 100 | 71,000,000 | |
SACS | |||
Line of Credit Facility [Line Items] | |||
Maximum loan amount under standby facility | R 20,000,000 | 1,400,000 | |
Amount funded | $ 0 |
Commitments, Contingencies an_2
Commitments, Contingencies and Other (Details) bed in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)facilitybed | Dec. 19, 2017claim | |
Commitments and Contingencies [Line Items] | ||
Estimate of possible loss | $ 19.6 | |
Estimated construction capital project cost | 218 | |
Cost already spent on existing capital projects | 195 | |
Remaining capital required for capital projects | $ 23 | |
Number of vacant beds at idle facilities marketed to potential customers | bed | 4 | |
Number of marketed idle facilities | facility | 4 | |
Property and Equipment | ||
Commitments and Contingencies [Line Items] | ||
Carrying values of idle facilities marketed to potential customers | $ 110 | |
Pending Litigation | Immigration Detainees Against Company | ||
Commitments and Contingencies [Line Items] | ||
New claims filed, number | claim | 3 | |
WASHINGTON | Pending Litigation | Immigration Detainees Against Company | ||
Commitments and Contingencies [Line Items] | ||
New claims filed, number | claim | 2 | |
CALIFORNIA | Pending Litigation | Immigration Detainees Against Company | ||
Commitments and Contingencies [Line Items] | ||
New claims filed, number | claim | 1 |
Business Segments and Geograp_3
Business Segments and Geographic Information - Operating and Reporting Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues: | ||
Revenues | $ 610,667 | $ 564,917 |
Operating Income: | ||
Operating income | 74,777 | 64,450 |
General and Administrative Expenses | (46,424) | (41,832) |
Operating Segments | ||
Revenues: | ||
Revenues | 610,667 | 564,917 |
Operating Income: | ||
Operating income | 121,201 | 106,282 |
Operating Segments | U.S. Corrections & Detention | ||
Revenues: | ||
Revenues | 390,510 | 358,681 |
Operating Income: | ||
Operating income | 76,924 | 69,188 |
Operating Segments | GEO Care | ||
Revenues: | ||
Revenues | 153,843 | 140,078 |
Operating Income: | ||
Operating income | 38,538 | 31,692 |
Operating Segments | International Services | ||
Revenues: | ||
Revenues | 64,224 | 66,158 |
Operating Income: | ||
Operating income | 5,739 | 5,402 |
Operating Segments | Facility Construction and Design | ||
Revenues: | ||
Revenues | 2,090 | 0 |
Operating Income: | ||
Operating income | 0 | 0 |
Segment Reconciling Items | ||
Operating Income: | ||
General and Administrative Expenses | $ (46,424) | $ (41,832) |
Business Segments and Geograp_4
Business Segments and Geographic Information - Income Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Pre-Tax Income Reconciliation of Segments | ||
Operating income from segments | $ 74,777 | $ 64,450 |
Unallocated Amount: | ||
General and Administrative Expenses | (46,424) | (41,832) |
Income before income taxes and equity in earnings of affiliates | 42,893 | 37,680 |
Operating Segments | ||
Pre-Tax Income Reconciliation of Segments | ||
Operating income from segments | 121,201 | 106,282 |
Segment Reconciling Items | ||
Unallocated Amount: | ||
General and Administrative Expenses | (46,424) | (41,832) |
Net Interest Expense | $ (31,884) | $ (26,770) |
Business Segments and Geograp_5
Business Segments and Geographic Information - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019USD ($)segment | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||
Number of reportable business segments | segment | 4 | ||
Equity in earnings of affiliates, net of income tax provision | $ 2,596 | $ 1,995 | |
Investment in affiliate | $ 0 | $ 0 | |
SACS | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage in entity | 50.00% | ||
Equity in earnings of affiliates, net of income tax provision | $ 1,400 | 1,600 | |
Investment in joint venture | 11,600 | 13,400 | |
Geo Amey | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity in earnings of affiliates, net of income tax provision | 1,200 | $ 400 | |
Investment in affiliate | $ 6,100 | $ 4,800 |
Benefit Plans - Funded Status o
Benefit Plans - Funded Status of Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Change in Projected Benefit Obligation | |||
Projected benefit obligation, beginning of period | $ 32,474 | $ 32,820 | $ 32,820 |
Service cost | 250 | 300 | 1,200 |
Interest cost | 348 | 310 | 1,242 |
Actuarial loss | 0 | (2,166) | |
Benefits paid | (179) | (622) | |
Projected benefit obligation, end of period | 32,893 | 32,474 | |
Change in Plan Assets | |||
Plan assets at fair value, beginning of period | 0 | $ 0 | 0 |
Company contributions | 179 | 622 | |
Benefits paid | (179) | (622) | |
Plan assets at fair value, end of period | 0 | 0 | |
Unfunded Status of the Plan | $ (32,893) | $ (32,474) |
Benefit Plans - Components of N
Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Components of Net Periodic Benefit Cost | |||
Service cost | $ 250 | $ 300 | $ 1,200 |
Interest cost | 348 | 310 | $ 1,242 |
Net loss | 53 | 133 | |
Net periodic pension cost | $ 651 | $ 743 |
Benefit Plans - Narrative (Deta
Benefit Plans - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Retirement Benefits [Abstract] | ||
Long-term portion of the pension liability | $ 32.6 | $ 32.1 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Transition adjustment for accounting standard adoption | $ 0 | ||
Operating right-of-use lease assets | $ 133,365 | $ 0 | |
Operating lease liability | $ 137,448 | ||
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating right-of-use lease assets | 140,000 | ||
Operating lease liability | 147,000 | ||
Tax Rate Reduction Related To Pension Liability | Accounting Standards Update 2018-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Transition adjustment for accounting standard adoption | 700 | ||
Tax Effect Of Tax Reform On Items Remaining In AOCI, Currency Translation | Accounting Standards Update 2018-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Transition adjustment for accounting standard adoption | 1,700 | ||
Distributions In Excess Of Earnings | Accounting Standards Update 2018-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Transition adjustment for accounting standard adoption | $ 1,000 |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Information - Statement of Operations and Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Consolidated Statements of Income and Comprehensive Income [Abstract] | ||
Revenues | $ 610,667 | $ 564,917 |
Operating expenses | 456,997 | 426,709 |
Depreciation and amortization | 32,469 | 31,926 |
General and administrative expenses | 46,424 | 41,832 |
Operating income | 74,777 | 64,450 |
Interest income | 8,396 | 9,099 |
Interest expense | (40,280) | (35,869) |
Income before income taxes and equity in earnings of affiliates | 42,893 | 37,680 |
Income tax provision | 4,840 | 4,755 |
Equity in earnings of affiliates, net of income tax provision | 2,596 | 1,995 |
Income before equity in income of consolidated subsidiaries | 40,649 | 34,920 |
Income from consolidated subsidiaries, net of income tax provision | 0 | 0 |
Net income | 40,649 | 34,920 |
Net loss attributable to noncontrolling interests | 56 | 67 |
Net income attributable to The GEO Group, Inc. | 40,705 | 34,987 |
Net income | 40,649 | 34,920 |
Other comprehensive income (loss), net of tax | 2,252 | 1,362 |
Total comprehensive income | 42,901 | 36,282 |
Comprehensive loss attributable to noncontrolling interests | 56 | 59 |
Comprehensive income attributable to The GEO Group, Inc. | 42,957 | 36,341 |
Reportable Legal Entities | The GEO Group, Inc. | ||
Consolidated Statements of Income and Comprehensive Income [Abstract] | ||
Revenues | 228,382 | 195,630 |
Operating expenses | 171,516 | 151,822 |
Depreciation and amortization | 7,419 | 6,460 |
General and administrative expenses | 17,200 | 14,341 |
Operating income | 32,247 | 23,007 |
Interest income | 3,478 | 4,177 |
Interest expense | (23,296) | (18,622) |
Income before income taxes and equity in earnings of affiliates | 12,429 | 8,562 |
Income tax provision | 289 | 177 |
Equity in earnings of affiliates, net of income tax provision | 0 | 0 |
Income before equity in income of consolidated subsidiaries | 12,140 | 8,385 |
Income from consolidated subsidiaries, net of income tax provision | 28,509 | 26,535 |
Net income | 40,649 | 34,920 |
Net loss attributable to noncontrolling interests | 0 | 0 |
Net income attributable to The GEO Group, Inc. | 40,649 | 34,920 |
Net income | 40,649 | 34,920 |
Other comprehensive income (loss), net of tax | 0 | 0 |
Total comprehensive income | 40,649 | 34,920 |
Comprehensive loss attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to The GEO Group, Inc. | 40,649 | 34,920 |
Reportable Legal Entities | Combined Subsidiary Guarantors | ||
Consolidated Statements of Income and Comprehensive Income [Abstract] | ||
Revenues | 494,890 | 458,728 |
Operating expenses | 412,453 | 377,966 |
Depreciation and amortization | 24,185 | 24,443 |
General and administrative expenses | 24,030 | 22,447 |
Operating income | 34,222 | 33,872 |
Interest income | 1,335 | 1,417 |
Interest expense | (13,847) | (14,460) |
Income before income taxes and equity in earnings of affiliates | 21,710 | 20,829 |
Income tax provision | 2,379 | 2,300 |
Equity in earnings of affiliates, net of income tax provision | 0 | 0 |
Income before equity in income of consolidated subsidiaries | 19,331 | 18,529 |
Income from consolidated subsidiaries, net of income tax provision | 0 | 0 |
Net income | 19,331 | 18,529 |
Net loss attributable to noncontrolling interests | 0 | 0 |
Net income attributable to The GEO Group, Inc. | 19,331 | 18,529 |
Net income | 19,331 | 18,529 |
Other comprehensive income (loss), net of tax | (648) | 105 |
Total comprehensive income | 18,683 | 18,634 |
Comprehensive loss attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to The GEO Group, Inc. | 18,683 | 18,634 |
Reportable Legal Entities | Combined Non-Guarantor Subsidiaries | ||
Consolidated Statements of Income and Comprehensive Income [Abstract] | ||
Revenues | 68,968 | 68,806 |
Operating expenses | 54,601 | 55,168 |
Depreciation and amortization | 865 | 1,023 |
General and administrative expenses | 5,194 | 5,044 |
Operating income | 8,308 | 7,571 |
Interest income | 8,198 | 9,384 |
Interest expense | (7,752) | (8,666) |
Income before income taxes and equity in earnings of affiliates | 8,754 | 8,289 |
Income tax provision | 2,172 | 2,278 |
Equity in earnings of affiliates, net of income tax provision | 2,596 | 1,995 |
Income before equity in income of consolidated subsidiaries | 9,178 | 8,006 |
Income from consolidated subsidiaries, net of income tax provision | 0 | 0 |
Net income | 9,178 | 8,006 |
Net loss attributable to noncontrolling interests | 56 | 67 |
Net income attributable to The GEO Group, Inc. | 9,234 | 8,073 |
Net income | 9,178 | 8,006 |
Other comprehensive income (loss), net of tax | 2,900 | 1,257 |
Total comprehensive income | 12,078 | 9,263 |
Comprehensive loss attributable to noncontrolling interests | 56 | 59 |
Comprehensive income attributable to The GEO Group, Inc. | 12,134 | 9,322 |
Eliminations | ||
Consolidated Statements of Income and Comprehensive Income [Abstract] | ||
Revenues | (181,573) | (158,247) |
Operating expenses | (181,573) | (158,247) |
Depreciation and amortization | 0 | 0 |
General and administrative expenses | 0 | 0 |
Operating income | 0 | 0 |
Interest income | (4,615) | (5,879) |
Interest expense | 4,615 | 5,879 |
Income before income taxes and equity in earnings of affiliates | 0 | 0 |
Income tax provision | 0 | 0 |
Equity in earnings of affiliates, net of income tax provision | 0 | 0 |
Income before equity in income of consolidated subsidiaries | 0 | 0 |
Income from consolidated subsidiaries, net of income tax provision | (28,509) | (26,535) |
Net income | (28,509) | (26,535) |
Net loss attributable to noncontrolling interests | 0 | 0 |
Net income attributable to The GEO Group, Inc. | (28,509) | (26,535) |
Net income | (28,509) | (26,535) |
Other comprehensive income (loss), net of tax | 0 | 0 |
Total comprehensive income | (28,509) | (26,535) |
Comprehensive loss attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to The GEO Group, Inc. | $ (28,509) | $ (26,535) |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Information - Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Assets | ||||
Cash and cash equivalents | $ 67,728 | $ 31,255 | $ 49,235 | |
Restricted cash and cash equivalents | 53,749 | 51,678 | ||
Accounts receivable, less allowance for doubtful accounts | 423,596 | 445,526 | ||
Contract receivable, current portion | 16,005 | 15,535 | ||
Prepaid expenses and other current assets | 43,535 | 57,768 | ||
Total current assets | 604,613 | 601,762 | ||
Restricted Cash and Investments | 27,282 | 22,431 | ||
Property and Equipment, Net | 2,150,627 | 2,158,610 | ||
Assets Held for Sale | 4,607 | 2,634 | ||
Contract Receivable | 368,698 | 368,178 | ||
Operating Lease Right-of-Use Assets, Net | 133,365 | 0 | ||
Intercompany Receivable | 0 | 0 | ||
Deferred Income Tax Assets | 29,924 | 29,924 | ||
Goodwill | 776,361 | 776,359 | ||
Intangible Assets, Net | 226,782 | 232,360 | ||
Investment in Subsidiaries | 0 | 0 | ||
Other Non-Current Assets | 61,807 | 65,860 | ||
Total Assets | 4,384,066 | 4,258,118 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Accounts payable | 93,458 | 93,032 | ||
Accrued payroll and related taxes | 58,079 | 76,009 | ||
Accrued expenses and other current liabilities | 189,174 | 204,170 | ||
Operating lease liabilities, current portion | 35,210 | 0 | ||
Current portion of finance lease liabilities, long-term debt and non-recourse debt | 332,864 | 332,027 | ||
Total current liabilities | 708,785 | 705,238 | ||
Deferred Income Tax Liabilities | 13,681 | 13,681 | ||
Intercompany Payable | 0 | 0 | ||
Other Non-Current Liabilities | 79,734 | 82,481 | ||
Finance Lease Liabilities | 4,179 | 4,570 | ||
Operating Lease Liabilities | 102,238 | 0 | ||
Finance Lease Liabilities | 4,179 | 4,570 | ||
Long-Term Debt | 2,433,433 | 2,397,227 | ||
Non-Recourse Debt | 15,112 | 15,017 | ||
Commitments & Contingencies and Other | ||||
The GEO Group, Inc. Shareholders' Equity | 1,027,559 | 1,040,503 | ||
Noncontrolling interests | (655) | (599) | ||
Total shareholders’ equity | 1,026,904 | 1,039,904 | $ 1,138,572 | $ 1,198,919 |
Total Liabilities and Shareholders’ Equity | 4,384,066 | 4,258,118 | ||
Reportable Legal Entities | The GEO Group, Inc. | ||||
Assets | ||||
Cash and cash equivalents | 32,701 | 4,468 | ||
Restricted cash and cash equivalents | 1,125 | 2,854 | ||
Accounts receivable, less allowance for doubtful accounts | 177,929 | 190,594 | ||
Contract receivable, current portion | 0 | 0 | ||
Prepaid expenses and other current assets | 586 | 2,011 | ||
Total current assets | 212,341 | 199,927 | ||
Restricted Cash and Investments | 0 | 0 | ||
Property and Equipment, Net | 842,309 | 845,291 | ||
Assets Held for Sale | 705 | 705 | ||
Contract Receivable | 0 | 0 | ||
Operating Lease Right-of-Use Assets, Net | 25,097 | |||
Intercompany Receivable | 989,843 | 990,365 | ||
Deferred Income Tax Assets | 798 | 798 | ||
Goodwill | 0 | 0 | ||
Intangible Assets, Net | 0 | 0 | ||
Investment in Subsidiaries | 1,483,260 | 1,503,841 | ||
Other Non-Current Assets | 7,931 | 9,541 | ||
Total Assets | 3,562,284 | 3,550,468 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Accounts payable | 13,657 | 13,566 | ||
Accrued payroll and related taxes | 0 | 0 | ||
Accrued expenses and other current liabilities | 35,765 | 23,565 | ||
Operating lease liabilities, current portion | 5,042 | |||
Current portion of finance lease liabilities, long-term debt and non-recourse debt | 8,000 | 8,000 | ||
Total current liabilities | 62,464 | 45,131 | ||
Deferred Income Tax Liabilities | 0 | 0 | ||
Intercompany Payable | 92,733 | 142,055 | ||
Other Non-Current Liabilities | 387 | 1,395 | ||
Finance Lease Liabilities | 0 | |||
Operating Lease Liabilities | 20,612 | |||
Finance Lease Liabilities | 0 | |||
Long-Term Debt | 2,358,529 | 2,321,384 | ||
Non-Recourse Debt | 0 | 0 | ||
Commitments & Contingencies and Other | ||||
The GEO Group, Inc. Shareholders' Equity | 1,027,559 | 1,040,503 | ||
Noncontrolling interests | 0 | 0 | ||
Total shareholders’ equity | 1,027,559 | 1,040,503 | ||
Total Liabilities and Shareholders’ Equity | 3,562,284 | 3,550,468 | ||
Reportable Legal Entities | Combined Subsidiary Guarantors | ||||
Assets | ||||
Cash and cash equivalents | 2,965 | 7,873 | ||
Restricted cash and cash equivalents | 0 | 0 | ||
Accounts receivable, less allowance for doubtful accounts | 199,420 | 221,957 | ||
Contract receivable, current portion | 0 | 0 | ||
Prepaid expenses and other current assets | 40,108 | 50,482 | ||
Total current assets | 242,493 | 280,312 | ||
Restricted Cash and Investments | 24,954 | 21,009 | ||
Property and Equipment, Net | 1,223,123 | 1,227,223 | ||
Assets Held for Sale | 3,902 | 1,929 | ||
Contract Receivable | 0 | 0 | ||
Operating Lease Right-of-Use Assets, Net | 107,432 | |||
Intercompany Receivable | 219,936 | 150,710 | ||
Deferred Income Tax Assets | 27,928 | 27,928 | ||
Goodwill | 775,954 | 775,955 | ||
Intangible Assets, Net | 226,229 | 231,787 | ||
Investment in Subsidiaries | 458,229 | 458,229 | ||
Other Non-Current Assets | 113,075 | 115,695 | ||
Total Assets | 3,423,255 | 3,290,777 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Accounts payable | 70,420 | 72,128 | ||
Accrued payroll and related taxes | 37,351 | 56,543 | ||
Accrued expenses and other current liabilities | 126,669 | 168,231 | ||
Operating lease liabilities, current portion | 29,786 | |||
Current portion of finance lease liabilities, long-term debt and non-recourse debt | 1,521 | 2,017 | ||
Total current liabilities | 265,747 | 298,919 | ||
Deferred Income Tax Liabilities | 0 | 0 | ||
Intercompany Payable | 1,106,285 | 989,856 | ||
Other Non-Current Liabilities | 151,804 | 152,815 | ||
Finance Lease Liabilities | 4,570 | |||
Operating Lease Liabilities | 81,171 | |||
Finance Lease Liabilities | 4,179 | |||
Long-Term Debt | 0 | 0 | ||
Non-Recourse Debt | 0 | 0 | ||
Commitments & Contingencies and Other | ||||
The GEO Group, Inc. Shareholders' Equity | 1,814,069 | 1,844,617 | ||
Noncontrolling interests | 0 | 0 | ||
Total shareholders’ equity | 1,814,069 | 1,844,617 | ||
Total Liabilities and Shareholders’ Equity | 3,423,255 | 3,290,777 | ||
Reportable Legal Entities | Combined Non-Guarantor Subsidiaries | ||||
Assets | ||||
Cash and cash equivalents | 32,062 | 18,914 | ||
Restricted cash and cash equivalents | 52,624 | 48,824 | ||
Accounts receivable, less allowance for doubtful accounts | 43,128 | 44,377 | ||
Contract receivable, current portion | 16,005 | 15,535 | ||
Prepaid expenses and other current assets | 4,736 | 7,114 | ||
Total current assets | 148,555 | 134,764 | ||
Restricted Cash and Investments | 2,328 | 1,422 | ||
Property and Equipment, Net | 85,195 | 86,096 | ||
Assets Held for Sale | 0 | 0 | ||
Contract Receivable | 368,698 | 368,178 | ||
Operating Lease Right-of-Use Assets, Net | 836 | |||
Intercompany Receivable | 25,462 | 22,407 | ||
Deferred Income Tax Assets | 1,198 | 1,198 | ||
Goodwill | 407 | 404 | ||
Intangible Assets, Net | 553 | 573 | ||
Investment in Subsidiaries | 2,189 | 2,190 | ||
Other Non-Current Assets | 19,289 | 19,334 | ||
Total Assets | 654,710 | 636,566 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Accounts payable | 9,381 | 7,338 | ||
Accrued payroll and related taxes | 20,728 | 19,466 | ||
Accrued expenses and other current liabilities | 26,938 | 25,615 | ||
Operating lease liabilities, current portion | 382 | |||
Current portion of finance lease liabilities, long-term debt and non-recourse debt | 323,343 | 322,010 | ||
Total current liabilities | 380,772 | 374,429 | ||
Deferred Income Tax Liabilities | 13,681 | 13,681 | ||
Intercompany Payable | 34,800 | 31,571 | ||
Other Non-Current Liabilities | 6,031 | 6,981 | ||
Finance Lease Liabilities | 0 | |||
Operating Lease Liabilities | 455 | |||
Finance Lease Liabilities | 0 | |||
Long-Term Debt | 74,904 | 75,843 | ||
Non-Recourse Debt | 15,112 | 15,017 | ||
Commitments & Contingencies and Other | ||||
The GEO Group, Inc. Shareholders' Equity | 129,610 | 119,643 | ||
Noncontrolling interests | (655) | (599) | ||
Total shareholders’ equity | 128,955 | 119,044 | ||
Total Liabilities and Shareholders’ Equity | 654,710 | 636,566 | ||
Eliminations | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash and cash equivalents | 0 | 0 | ||
Accounts receivable, less allowance for doubtful accounts | 3,119 | (11,402) | ||
Contract receivable, current portion | 0 | 0 | ||
Prepaid expenses and other current assets | (1,895) | (1,839) | ||
Total current assets | 1,224 | (13,241) | ||
Restricted Cash and Investments | 0 | 0 | ||
Property and Equipment, Net | 0 | 0 | ||
Assets Held for Sale | 0 | 0 | ||
Contract Receivable | 0 | |||
Operating Lease Right-of-Use Assets, Net | 0 | |||
Intercompany Receivable | (1,235,241) | (1,163,482) | ||
Deferred Income Tax Assets | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible Assets, Net | 0 | 0 | ||
Investment in Subsidiaries | (1,943,678) | (1,964,260) | ||
Other Non-Current Assets | (78,488) | (78,710) | ||
Total Assets | (3,256,183) | (3,219,693) | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Accounts payable | 0 | 0 | ||
Accrued payroll and related taxes | 0 | 0 | ||
Accrued expenses and other current liabilities | (198) | (13,241) | ||
Operating lease liabilities, current portion | 0 | |||
Current portion of finance lease liabilities, long-term debt and non-recourse debt | 0 | 0 | ||
Total current liabilities | (198) | (13,241) | ||
Deferred Income Tax Liabilities | 0 | 0 | ||
Intercompany Payable | (1,233,818) | (1,163,482) | ||
Other Non-Current Liabilities | (78,488) | (78,710) | ||
Finance Lease Liabilities | 0 | |||
Operating Lease Liabilities | 0 | |||
Finance Lease Liabilities | 0 | |||
Long-Term Debt | 0 | 0 | ||
Non-Recourse Debt | 0 | 0 | ||
Commitments & Contingencies and Other | ||||
The GEO Group, Inc. Shareholders' Equity | (1,943,679) | (1,964,260) | ||
Noncontrolling interests | 0 | 0 | ||
Total shareholders’ equity | (1,943,679) | (1,964,260) | ||
Total Liabilities and Shareholders’ Equity | $ (3,256,183) | $ (3,219,693) |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Information - Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash Flow from Operating Activities: | ||
Net cash provided by operating activities | $ 99,011 | $ 69,686 |
Cash Flow from Investing Activities: | ||
Insurance proceeds - damaged property | 2,503 | 4,504 |
Proceeds from sale of property and equipment | 274 | 0 |
Proceeds from sale of assets held for sale | 0 | 3,797 |
Change in restricted investments | (4,062) | (505) |
Capital expenditures | (28,084) | (52,147) |
Net cash used in investing activities | (29,369) | (44,351) |
Cash Flow from Financing Activities: | ||
Proceeds from long-term debt | 130,000 | 102,000 |
Payments on long-term debt | (96,926) | (43,000) |
Payments on non-recourse debt | (2,089) | (5,600) |
Taxes paid related to net share settlements of equity awards | (4,172) | (4,356) |
Payment for repurchases of common stock | 0 | (40,182) |
Proceeds from issuance of common stock in connection with ESPP | 124 | 140 |
Debt issuance costs | (40,182) | |
Proceeds from the exercise of stock options | 333 | 260 |
Dividends paid | (57,945) | (58,238) |
Net cash used in financing activities | (30,675) | (48,976) |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash and Cash Equivalents | 366 | (655) |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash and Cash Equivalents | 39,333 | (24,296) |
Cash, Cash Equivalents and Restricted Cash and Cash Equivalents, beginning of period | 84,472 | 133,545 |
Cash, Cash Equivalents and Restricted Cash and Cash Equivalents, end of period | 123,805 | 109,249 |
The GEO Group, Inc. | ||
Cash Flow from Operating Activities: | ||
Net cash provided by operating activities | 14,354 | 39,888 |
Cash Flow from Investing Activities: | ||
Insurance proceeds - damaged property | 0 | 0 |
Proceeds from sale of property and equipment | 0 | |
Proceeds from sale of assets held for sale | 0 | |
Change in restricted investments | 0 | 0 |
Capital expenditures | (6,608) | (34,360) |
Net cash used in investing activities | (6,608) | (34,360) |
Cash Flow from Financing Activities: | ||
Proceeds from long-term debt | 130,000 | 102,000 |
Payments on long-term debt | (96,926) | (43,000) |
Payments on non-recourse debt | 0 | 0 |
Taxes paid related to net share settlements of equity awards | (4,172) | (4,356) |
Proceeds from issuance of common stock in connection with ESPP | 124 | 140 |
Debt issuance costs | (40,182) | |
Proceeds from the exercise of stock options | 333 | 260 |
Dividends paid | (57,945) | (58,238) |
Net cash used in financing activities | (28,586) | (43,376) |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash and Cash Equivalents | 0 | 0 |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash and Cash Equivalents | (20,840) | (37,848) |
Cash, Cash Equivalents and Restricted Cash and Cash Equivalents, beginning of period | 54,666 | 54,666 |
Cash, Cash Equivalents and Restricted Cash and Cash Equivalents, end of period | 33,826 | 16,818 |
Combined Subsidiary Guarantors | ||
Cash Flow from Operating Activities: | ||
Net cash provided by operating activities | 20,879 | 17,614 |
Cash Flow from Investing Activities: | ||
Insurance proceeds - damaged property | 2,503 | 4,504 |
Proceeds from sale of property and equipment | 274 | |
Proceeds from sale of assets held for sale | 3,797 | |
Change in restricted investments | (4,062) | (505) |
Capital expenditures | (21,452) | (16,654) |
Net cash used in investing activities | (22,737) | (8,858) |
Cash Flow from Financing Activities: | ||
Proceeds from long-term debt | 0 | 0 |
Payments on long-term debt | 0 | 0 |
Payments on 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 | |
Proceeds from the exercise of stock options | 0 | 0 |
Dividends paid | 0 | 0 |
Net cash used in financing activities | 0 | 0 |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash and Cash Equivalents | 0 | 0 |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash and Cash Equivalents | (1,858) | 8,756 |
Cash, Cash Equivalents and Restricted Cash and Cash Equivalents, beginning of period | 4,823 | 4,952 |
Cash, Cash Equivalents and Restricted Cash and Cash Equivalents, end of period | 2,965 | 13,708 |
Combined Non-Guarantor Subsidiaries | ||
Cash Flow from Operating Activities: | ||
Net cash provided by operating activities | 63,778 | 12,184 |
Cash Flow from Investing Activities: | ||
Insurance proceeds - damaged property | 0 | 0 |
Proceeds from sale of property and equipment | 0 | |
Proceeds from sale of assets held for sale | ||
Change in restricted investments | 0 | 0 |
Capital expenditures | (24) | (1,133) |
Net cash used in investing activities | (24) | (1,133) |
Cash Flow from Financing Activities: | ||
Proceeds from long-term debt | 0 | 0 |
Payments on long-term debt | 0 | 0 |
Payments on non-recourse debt | (2,089) | (5,600) |
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 | |
Proceeds from the exercise of stock options | 0 | 0 |
Dividends paid | 0 | 0 |
Net cash used in financing activities | (2,089) | (5,600) |
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash and Cash Equivalents | 366 | (655) |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash and Cash Equivalents | 62,031 | 4,796 |
Cash, Cash Equivalents and Restricted Cash and Cash Equivalents, beginning of period | 24,983 | 73,927 |
Cash, Cash Equivalents and Restricted Cash and Cash Equivalents, end of period | $ 87,014 | $ 78,723 |
Condensed Consolidating Finan_6
Condensed Consolidating Financial Information - Narrative (Details) | Mar. 31, 2019 |
Debt Instrument [Line Items] | |
Percentage of subsidiary owned | 100.00% |
Senior Notes | 6.00% Senior Notes, due 2026 | |
Debt Instrument [Line Items] | |
Notes bear interest at a rate | 6.00% |
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 2024 | |
Debt Instrument [Line Items] | |
Notes bear interest at a rate | 5.875% |
Senior Notes | 5.875% Senior Notes due 2022 | |
Debt Instrument [Line Items] | |
Notes bear interest at a rate | 5.875% |
Subsequent Events (Details)
Subsequent Events (Details) | May 02, 2019bedcontract | Apr. 25, 2019bed | Apr. 03, 2019$ / shares | Mar. 31, 2019$ / shares | Mar. 31, 2018$ / shares |
Subsequent Event [Line Items] | |||||
Dividends declared per share (in dollars per share) | $ / shares | $ 0.48 | $ 0.47 | |||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Dividends declared per share (in dollars per share) | $ / shares | $ 0.48 | ||||
Subsequent Event | Bureau Of Prisons (BOP) | |||||
Subsequent Event [Line Items] | |||||
Contract term | 10 years | ||||
Subsequent Event | Bureau Of Prisons (BOP) | North Lake Correctional Facility | |||||
Subsequent Event [Line Items] | |||||
Contract term | 10 years | ||||
Number of beds in detention facility | 1,800 | ||||
Subsequent Event | Bureau Of Prisons (BOP) | Reeves County Detention Center I & II | |||||
Subsequent Event [Line Items] | |||||
Contract term | 10 years | ||||
Number of beds in detention facility | 1,800 | ||||
Number of new contracts | contract | 2 | ||||
Subsequent Event | Bureau Of Prisons (BOP) | Reeves County Detention Center III | |||||
Subsequent Event [Line Items] | |||||
Number of beds in detention facility | 1,376 | ||||
Subsequent Event | Immigration and Customs Enforcement | South Louisiana ICE Processing Center | |||||
Subsequent Event [Line Items] | |||||
Number of beds in detention facility | 1,000 |