GEO GROUP INC Fair Value Disclosure
The Company’s Consolidated Balance Sheets reflect certain financial instruments at carrying value. The following table presents the carrying values of those instruments and the corresponding estimated fair values (in thousands):
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Estimated Fair Value Measurements at December 31, 2025 |
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Carrying Value |
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Total Fair |
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Level 1 |
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Level 2 |
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Level 3 |
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Assets: |
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Cash and cash equivalents |
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$ |
68,995 |
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|
$ |
68,995 |
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|
$ |
68,995 |
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|
$ |
— |
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|
$ |
— |
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Restricted cash and investments |
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|
54,640 |
|
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|
54,640 |
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|
54,640 |
|
|
|
— |
|
|
|
— |
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Liabilities: |
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|
|
|
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Borrowings under credit agreement |
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$ |
358,583 |
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|
$ |
358,583 |
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|
$ |
— |
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|
$ |
358,583 |
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|
$ |
— |
|
8.625% Senior Secured Notes due 2029 |
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|
650,000 |
|
|
|
684,437 |
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|
|
— |
|
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684,437 |
|
|
|
— |
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10.250% Senior Notes due 2031 |
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|
625,000 |
|
|
|
685,375 |
|
|
|
— |
|
|
|
685,375 |
|
|
|
— |
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Estimated Fair Value Measurements at December 31, 2024 |
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Carrying Value |
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Total Fair |
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Level 1 |
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Level 2 |
|
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Level 3 |
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Assets: |
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|
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Cash and cash equivalents |
|
$ |
76,896 |
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|
$ |
76,896 |
|
|
$ |
76,896 |
|
|
$ |
— |
|
|
$ |
— |
|
Restricted cash and investments |
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|
48,968 |
|
|
|
48,968 |
|
|
|
48,968 |
|
|
|
— |
|
|
|
— |
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Liabilities: |
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|
|
|
|
|
|
|
|
|
|
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Borrowings under credit agreement |
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$ |
430,823 |
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|
$ |
436,838 |
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|
$ |
— |
|
|
$ |
436,838 |
|
|
$ |
— |
|
8.625% Senior Secured Notes due 2029 |
|
|
650,000 |
|
|
|
687,239 |
|
|
|
— |
|
|
|
687,239 |
|
|
|
— |
|
10.250% Senior Notes due 2031 |
|
|
625,000 |
|
|
|
682,281 |
|
|
|
— |
|
|
|
682,281 |
|
|
|
— |
|
6.50% Exchangeable Senior Notes due 2026 |
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|
100 |
|
|
|
314 |
|
|
|
— |
|
|
|
314 |
|
|
|
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The fair values of the Company’s cash and cash equivalents, and restricted cash and investments approximates the carrying values of these assets at December 31, 2025 and 2024. 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).
As of December 31, 2025 and 2024, the recurring fair values of the Company's 8.625% Secured Notes due 2029 and the 10.250% Unsecured Notes due 2028 are based on Level 2 inputs using quotations by major market news services, such as Bloomberg. The fair value of the Company's Credit Agreement was also based on quotations by major market news services and also estimates of trading value considering the Company's borrowing rate, the undrawn spread and similar instruments. The Company retired its remaining 6.50% exchangeable senior notes due 2026 (the "Convertible Notes" or 6.50% Exchangeable Senior Notes") during 2025.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Feb 16, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 25, 2019 | |
| 2017 | Feb 26, 2018 | |
| 2016 | Feb 27, 2017 | |
| 2015 | Feb 26, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.