v3.26.1
Benefit Plans
 6 Months Ended
Jun. 30, 2026
Retirement Benefits [Abstract]  
Benefit Plans

13. BENEFIT PLANS

The following tables summarize key information related to the Company’s pension plans and retirement agreements (in thousands):

 

 

 

Six Months Ended
June 30,
2026

 

 

Year Ended
December 31,
2025

 

Change in Projected Benefit Obligation

 

 

 

 

 

 

Projected benefit obligation, beginning of period

 

$

29,041

 

 

$

27,027

 

Service cost

 

 

264

 

 

 

532

 

Interest cost

 

 

785

 

 

 

1,504

 

Actuarial loss

 

 

—

 

 

 

1,360

 

Benefits paid

 

 

(522

)

 

 

(1,382

)

Projected benefit obligation, end of period

 

$

29,568

 

 

$

29,041

 

Change in Plan Assets

 

 

 

 

 

 

Plan assets at fair value, beginning of period

 

$

—

 

 

$

—

 

Company contributions

 

 

522

 

 

 

1,382

 

Benefits paid

 

 

(522

)

 

 

(1,382

)

Plan assets at fair value, end of period

 

$

—

 

 

$

—

 

Unfunded Status of the Plan

 

$

29,568

 

 

$

29,041

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30, 2026

 

 

June 30, 2025

 

 

June 30, 2026

 

 

June 30, 2025

 

Components of Net Periodic Benefit Cost

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

132

 

 

$

133

 

 

$

264

 

 

$

266

 

Interest cost

 

 

392

 

 

 

376

 

 

 

785

 

 

 

752

 

Net (gain) loss

 

 

8

 

 

 

(62

)

 

 

16

 

 

 

(125

)

Net periodic benefit cost

 

$

532

 

 

$

447

 

 

$

1,065

 

 

$

893

 

 

 

The service cost and other components of net periodic benefit cost are included in General and Administrative Expenses in the accompanying consolidated statements of operations.

 

The long-term portion of the pension liability as of June 30, 2026 and December 31, 2025 was $28.9 million and $28.4 million, respectively, and is included in Other Non-Current Liabilities in the accompanying consolidated balance sheets.

 

Amended and Restated Executive Retirement Agreement

 

The Company has a non-qualified deferred compensation agreement with its Chairman and Chief Executive Officer. The agreement provides for a lump sum cash payment upon retirement, no sooner than age 55. As of June 30, 2026, the Chairman and Chief Executive Officer had reached age 55 and was eligible to receive the payment upon retirement.

On May 27, 2021, the Company and its Chairman entered into an Amended and Restated Executive Retirement Agreement which replaced his previous agreement, effective July 1, 2021. Pursuant to the terms of the Amended and Restated Executive Retirement Agreement, upon the date that the Chairman ceases to provide services to the Company, the Company will pay to the Chairman an amount equal to $3.6 million which shall be paid in cash. The payment shall be credited with interest at a rate of 5% compounded quarterly. Additionally, at the end of each calendar year provided that the Chairman is still providing services to GEO pursuant to the Chairman Agreement, as amended, GEO will credit an amount equal to $1.0 million at the end of each calendar year (the “Employment Contributions Account”). The Employment Contributions Account will be credited with interest at the rate of 5% compounded quarterly. The balance of the Amended and Restated Executive Retirement Agreement was approximately $18.0 million at June 30, 2026 and is included in Other Non-Current Liabilities in the accompanying consolidated balance sheets.

The Company has established several trusts for the purpose of paying the retirement benefit pursuant to the Amended and Restated Executive Retirement Agreement. The trusts are revocable “rabbi trusts” and the assets of the trusts are subject to the claims of the Company’s creditors in the event of the Company’s insolvency.