Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 13, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Document type | 10-K | ||
Document Annual Report | true | ||
Document period end date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity registrant name | BRIGHT HORIZONS FAMILY SOLUTIONS INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity File Number | 001-35780 | ||
Entity Tax Identification Number | 80-0188269 | ||
Entity Address, Address Line One | 200 Talcott Avenue | ||
Entity Address, City or Town | Watertown, | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 02472 | ||
City Area Code | 617 | ||
Local Phone Number | 673-8000 | ||
Title of 12(b) Security | Common Stock, $0.001 par value per share | ||
Trading Symbol | BFAM | ||
Security Exchange Name | NYSE | ||
Entity well-known seasoned issuer | Yes | ||
Entity voluntary filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity public float | $ 8.7 | ||
Entity common stock, shares outstanding (in shares) | 58,199,813 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001437578 | ||
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 27,872 | $ 15,450 |
Accounts receivable—net | 148,855 | 131,178 |
Prepaid expenses and other current assets | 52,161 | 47,263 |
Total current assets | 228,888 | 193,891 |
Fixed assets—net | 636,153 | 597,141 |
Goodwill | 1,412,873 | 1,347,611 |
Other intangible assets—net | 304,673 | 323,035 |
Operating lease right-of-use assets | 700,956 | 0 |
Other assets | 46,877 | 62,628 |
Total assets | 3,330,420 | 2,524,306 |
Current liabilities: | ||
Current portion of long-term debt | 10,750 | 10,750 |
Borrowings under revolving credit facility | 0 | 118,200 |
Accounts payable and accrued expenses | 167,059 | 154,195 |
Current portion of operating lease liabilities | 83,123 | 0 |
Deferred revenue | 191,117 | 170,416 |
Other current liabilities | 31,241 | 30,224 |
Total current liabilities | 483,290 | 483,785 |
Long-term debt—net | 1,028,049 | 1,036,870 |
Operating lease liabilities | 685,910 | 71,817 |
Other long-term liabilities | 92,865 | 75,368 |
Deferred revenue | 10,098 | 5,683 |
Deferred income taxes | 58,940 | 71,306 |
Total liabilities | 2,359,152 | 1,744,829 |
Commitments and contingencies (Note 18) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 25,000,000 shares authorized and no shares issued or outstanding at December 31, 2019 and 2018 | 0 | 0 |
Common stock, $0.001 par value; 475,000,000 shares authorized; 57,884,020 and 57,494,468 shares issued and outstanding at December 31, 2019 and 2018, respectively | 58 | 57 |
Additional paid-in capital | 648,031 | 648,651 |
Accumulated other comprehensive loss | (50,331) | (62,355) |
Retained earnings | 373,510 | 193,124 |
Total stockholders’ equity | 971,268 | 779,477 |
Total liabilities and stockholders’ equity | $ 3,330,420 | $ 2,524,306 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per shares) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per shares) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 475,000,000 | 475,000,000 |
Common stock, issued (in shares) | 57,884,020 | 57,494,468 |
Common stock, outstanding (in shares) | 57,884,020 | 57,494,468 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Revenue | $ 2,062,017 | $ 1,903,182 | $ 1,740,905 |
Cost of services | 1,539,081 | 1,429,927 | 1,310,295 |
Gross profit | 522,936 | 473,255 | 430,610 |
Selling, general and administrative expenses | 221,496 | 201,591 | 188,939 |
Amortization of intangible assets | 33,621 | 32,569 | 32,561 |
Income from operations | 0 | 0 | 3,671 |
Income from operations | 267,819 | 239,095 | 205,439 |
Interest expense—net | (45,154) | (47,508) | (44,039) |
Income before income tax | 222,665 | 191,587 | 161,400 |
Income tax expense | (42,279) | (33,606) | (4,437) |
Net income | 180,386 | 157,981 | 156,963 |
Allocation of net income to common stockholders: | |||
Allocation of net income to common stockholders: Common stock-basic | 179,520 | 157,096 | 155,995 |
Allocation of net income to common stockholders: Common stock-diluted | $ 179,536 | $ 157,114 | $ 156,016 |
Earnings per common share: | |||
Common stock-basic (in dollars per share) | $ 3.10 | $ 2.72 | $ 2.65 |
Common stock-diluted (in dollars per share) | $ 3.05 | $ 2.66 | $ 2.59 |
Weighted average common shares outstanding: | |||
Common stock-basic (in shares) | 57,838,245 | 57,812,602 | 58,873,196 |
Common stock-diluted (in shares) | 58,947,240 | 59,000,669 | 60,253,691 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 180,386 | $ 157,981 | $ 156,963 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 19,813 | (32,092) | 53,892 |
Unrealized gain (loss) on interest rate swaps and investments, net of tax | (7,789) | 3,033 | 2,260 |
Total other comprehensive income (loss) | 12,024 | (29,059) | 56,152 |
Comprehensive income | $ 192,410 | $ 128,922 | $ 213,115 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock, at Cost | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
Balance (in shares) at Dec. 31, 2016 | 58,910,282 | |||||
Beginning balance at Dec. 31, 2016 | $ 687,867 | $ 59 | $ 899,076 | $ 0 | $ (89,448) | $ (121,820) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation expense | 12,072 | 12,072 | ||||
Exercise of stock options (in shares) | 1,481,785 | |||||
Issuance of common stock under the Equity Incentive Plan | 27,999 | $ 1 | 27,998 | |||
Shares received in net share settlement of stock option exercises and vesting of restricted stock (in shares) | (410,508) | |||||
Shares received in net share settlement of stock option exercises and vesting of restricted stock | (29,798) | (29,798) | ||||
Purchase of treasury stock | (162,195) | (162,195) | ||||
Retirement of treasury stock (in shares) | (1,968,415) | |||||
Retirement of treasury stock | 0 | $ 2 | 162,193 | 162,195 | ||
Other comprehensive income | 56,152 | 56,152 | ||||
Net income | 156,963 | 156,963 | ||||
Balance (in shares) at Dec. 31, 2017 | 58,013,144 | |||||
Ending balance at Dec. 31, 2017 | 749,060 | $ 58 | 747,155 | 0 | (33,296) | 35,143 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation expense | 13,811 | 13,811 | ||||
Exercise of stock options (in shares) | 771,480 | |||||
Issuance of common stock under the Equity Incentive Plan | 21,963 | $ 1 | 21,962 | |||
Shares received in net share settlement of stock option exercises and vesting of restricted stock (in shares) | (77,720) | |||||
Shares received in net share settlement of stock option exercises and vesting of restricted stock | (7,540) | (7,540) | ||||
Purchase of treasury stock | (126,739) | (126,739) | ||||
Retirement of treasury stock (in shares) | (1,212,436) | |||||
Retirement of treasury stock | 0 | $ 2 | 126,737 | 126,739 | ||
Other comprehensive income | (29,059) | (29,059) | ||||
Net income | 157,981 | 157,981 | ||||
Balance (in shares) at Dec. 31, 2018 | 57,494,468 | |||||
Ending balance at Dec. 31, 2018 | 779,477 | $ 57 | 648,651 | 0 | (62,355) | 193,124 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation expense | $ 17,283 | 17,283 | ||||
Exercise of stock options (in shares) | 563,031 | 684,974 | ||||
Issuance of common stock under the Equity Incentive Plan | $ 25,368 | $ 1 | 25,367 | |||
Shares received in net share settlement of stock option exercises and vesting of restricted stock (in shares) | (84,021) | |||||
Shares received in net share settlement of stock option exercises and vesting of restricted stock | (11,326) | (11,326) | ||||
Purchase of treasury stock | (31,944) | (31,944) | ||||
Retirement of treasury stock (in shares) | (211,401) | |||||
Retirement of treasury stock | 0 | 31,944 | 31,944 | |||
Other comprehensive income | 12,024 | 12,024 | ||||
Net income | 180,386 | 180,386 | ||||
Balance (in shares) at Dec. 31, 2019 | 57,884,020 | |||||
Ending balance at Dec. 31, 2019 | $ 971,268 | $ 58 | $ 648,031 | $ 0 | $ (50,331) | $ 373,510 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 180,386 | $ 157,981 | $ 156,963 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 108,269 | 100,943 | 94,776 |
Amortization of original issue discount and deferred financing costs | 1,929 | 1,901 | 1,776 |
Loss on foreign currency transactions and other | 219 | 116 | 1,781 |
(Gain) Loss on disposal of fixed assets | (2,261) | 488 | 2,760 |
Stock-based compensation expense | 17,283 | 13,811 | 12,072 |
Deferred income taxes | (11,344) | (5,469) | (37,562) |
Deferred rent | 0 | 1,317 | 4,345 |
Non-cash revenue and other | (442) | 0 | 0 |
Changes in assets and liabilities: | |||
Accounts receivable | (15,718) | (14,498) | (18,689) |
Prepaid expenses and other current assets | 1,818 | 2,795 | (3,450) |
Income taxes | 4,999 | (3,320) | 11,156 |
Accounts payable and accrued expenses | 9,032 | 15,912 | 5,912 |
Deferred revenue | 23,038 | 12,073 | 9,316 |
Leases | 11,762 | 4,543 | 1,726 |
Other assets | (904) | 100 | (387) |
Other current and long-term liabilities | 2,287 | 6,054 | 5,698 |
Net cash provided by operating activities | 330,353 | 294,747 | 248,193 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of fixed assets | (111,845) | (92,491) | (88,122) |
Proceeds from the disposal of fixed assets | 7,080 | 1,826 | 4,285 |
Purchases of debt securities and other investments | (28,015) | (767) | 0 |
Proceeds from the maturity of debt securities | 3,000 | 0 | 0 |
Payments and settlements for acquisitions—net of cash acquired | (53,425) | (67,111) | (21,484) |
Purchase of equity method investment | (5,865) | 0 | 0 |
Net cash used in investing activities | (189,070) | (158,543) | (105,321) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Payments of deferred and contingent consideration for acquisitions | (4,200) | (2,965) | (185) |
Payments of debt issuance costs | 0 | (292) | (1,711) |
Borrowings under revolving credit facility | 288,674 | 679,900 | 643,201 |
Payments under revolving credit facility | (406,532) | (688,800) | (592,101) |
Principal payments of long-term debt | (10,750) | (10,750) | (8,063) |
Taxes paid related to the net share settlement of stock options and restricted stock | (11,326) | (7,540) | (29,798) |
Purchase of treasury stock | (31,553) | (126,679) | (162,195) |
Proceeds from issuance of common stock upon exercise of options and restricted stock upon purchase | 26,559 | 22,933 | 26,988 |
Net cash used in financing activities | (149,128) | (134,193) | (123,864) |
Effect of exchange rates on cash, cash equivalents and restricted cash | 559 | (103) | 1,507 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (7,286) | 1,908 | 20,515 |
Cash, cash equivalents and restricted cash—beginning of year | 38,478 | 36,570 | 16,055 |
Cash, cash equivalents and restricted cash—end of year | 31,192 | 38,478 | 36,570 |
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO THE CONSOLIDATED BALANCE SHEETS: | |||
Total cash, cash equivalents and restricted cash—end of year | 31,192 | 36,570 | 36,570 |
SUPPLEMENTAL CASH FLOW INFORMATION: | |||
Cash payments of interest | 43,051 | 46,122 | 44,464 |
Cash payments of income taxes | 50,553 | 41,936 | 31,290 |
Fixed asset purchases recorded in accounts payable and accrued expenses | $ 4,549 | $ 6,359 | $ 1,500 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Organization and Significant Accounting Policies | 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Organization — Bright Horizons Family Solutions Inc. (“Bright Horizons” or the “Company”) provides center-based child care and early education, back-up child and adult/elder dependent care, tuition assistance and student loan repayment program administration, educational advisory services, and other support services for employers and families in the United States, the United Kingdom, the Netherlands, Puerto Rico, Canada, and India. The Company provides services designed to help families, employers and their employees better integrate work and family life, primarily under multi-year contracts with employers who offer child care, dependent care, and workforce education services, as part of their employee benefits packages in an effort to support employees across life and career stages and improve employee engagement. The Company’s full service center-based child care includes traditional center-based child care and early education, preschool, and elementary education. The Company provides its center-based child care services under two principal business models: (1) a cost-plus model, where the Company is paid a fee by an employer client for managing a child care center on a cost-plus basis, and (2) a profit and loss (“P&L”) model, where the Company assumes the financial risk of operating a child care center and provides care on either an exclusive or priority enrollment basis to the employees of an employer sponsor, as well as to families in the surrounding community. In both the cost-plus and sponsor P&L models, the development of a new child care center, as well as ongoing maintenance and repair, is typically funded by an employer sponsor with whom the Company enters into a multi-year contractual relationship. In addition, employer sponsors typically provide subsidies for the ongoing provision of child care services for their employees. Under all model types, the Company retains responsibility for all aspects of operating the child care and early education center, including the hiring and paying of employees, contracting with vendors, purchasing supplies, and collecting tuition and related accounts receivable. The Company’s back-up care services consist of center-based back-up child care, and in-home child and adult/elder dependent care. The Company provides back-up care services through the Company’s full-service and dedicated back-up centers, as well as through the back-up care network. Bright Horizons back-up care offers access to a contracted network of in-home care agencies and center-based providers in locations where the Company does not otherwise have in-home care providers or centers with available capacity. The Company’s educational advisory services consist of tuition assistance and student loan repayment program administration, workforce education, and related educational consulting services (“EdAssist Solutions”), and college admissions advisory services (“College Coach”). Basis of Presentation — The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP” or “U.S. GAAP”). The Company’s significant accounting policies are described below. Certain reclassifications have been made to prior year amounts within the consolidated statements of cash flows to conform to the current year presentation. Principles of Consolidation — The consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. Use of Estimates — The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, as well as the reported amounts of revenue and expenses during the reporting period. The Company’s significant accounting estimates in the preparation of the consolidated financial statements relate to the valuation of goodwill and other intangibles, and income taxes. Actual results may differ from management’s estimates. Foreign Operations — The functional currency of the Company’s foreign subsidiaries is their local currency. The assets and liabilities of the Company’s foreign subsidiaries are translated into U.S. dollars at exchange rates in effect at the balance sheet date. Income and expense items are translated at the average exchange rates prevailing during the period. The cumulative translation effect for subsidiaries using a functional currency other than the U.S. dollar is included in accumulated other comprehensive income or loss as a separate component of stockholders’ equity. The Company’s intercompany accounts are denominated in the functional currency of the foreign subsidiary. Gains and losses resulting from the remeasurement of intercompany receivables that the Company considers to be of a long-term investment nature are recorded as a cumulative translation adjustment in accumulated other comprehensive income or loss as a separate component of stockholders’ equity, while gains and losses resulting from the remeasurement of intercompany receivables from those foreign subsidiaries for which the Company anticipates settlement in the foreseeable future are recorded in the consolidated statement of income. The net currency gains and losses recorded in the consolidated statements of income for the years ended December 31, 2019 and 2018 were not significant. In 2017 , the Company incurred foreign currency translation losses of $1.7 million associated with the disposition of the remaining assets in Ireland, which was included in other expenses in the consolidated statement of income. Concentrations of Credit Risk — Financial instruments that potentially expose the Company to concentrations of credit risk consist mainly of cash and cash equivalents and accounts receivable. The Company mitigates its exposure by maintaining its cash and cash equivalents in financial institutions of high credit standing. The Company’s accounts receivable, which are derived primarily from the services it provides, are dispersed across many clients in various industries with no single client accounting for more than 10% of the Company’s net revenue or accounts receivable. The Company believes that no significant credit concentration risk existed at December 31, 2019 and 2018 . Cash, cash equivalents, and restricted cash — The Company considers all highly liquid investments with maturities, when purchased, of three months or less to be cash equivalents. The Company’s cash management system provides for the funding of the main bank disbursement accounts on a daily basis as checks are presented for payment. Under this system, outstanding checks may be in excess of the cash balances at certain banks, creating book overdrafts. There were $12.4 million and $17.8 million in book overdrafts at December 31, 2019 and 2018 , respectively, included in accounts payable on the consolidated balance sheet. The Company’s cash and cash equivalents that are restricted in nature as to withdrawal or usage are included in prepaid expenses and other current assets. Restricted cash is primarily comprised of cash deposits that guarantee letters of credit, cash and cash equivalents associated with the Company’s wholly-owned captive insurance company, and cash deposits held for acquisitions. Accounts Receivable — The Company generates accounts receivable from fees charged to parents and employer sponsors. The Company monitors collections and payments and maintains a provision for estimated losses based on historical trends, in addition to provisions established for specific collection issues that have been identified. Accounts receivable are stated net of the allowance for doubtful accounts. Activity in the allowance for doubtful accounts is as follows (in thousands): Years ended December 31, 2019 2018 2017 Beginning balance $ 2,514 $ 2,429 $ 1,054 Provision 840 1,148 2,537 Write offs and recoveries (2,128 ) (1,063 ) (1,162 ) Ending balance $ 1,226 $ 2,514 $ 2,429 Fixed Assets — Property and equipment, including leasehold improvements, are carried at cost less accumulated depreciation or amortization. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or their estimated useful lives. The cost and accumulated depreciation of assets sold or otherwise disposed of are removed from the consolidated balance sheet and the resulting gain or loss is reflected in the consolidated statement of income. Expenditures for maintenance and repairs are expensed as incurred, whereas expenditures for improvements and replacements are capitalized. Depreciation is included in cost of services and selling, general and administrative expenses depending on the nature of the expenditure. Business Combinations — Business combinations are accounted for under the acquisition method of accounting. Amounts paid for an acquisition are allocated to the assets acquired and liabilities assumed based on their fair values at the date of acquisition. The accounting for business combinations requires estimates and judgment in determining the fair value of assets acquired and liabilities assumed, regarding expectations of future cash flows of the acquired business, and the allocation of those cash flows to the identifiable intangible assets. The determination of fair value is based on management’s estimates and assumptions, as well as other information compiled by management, including valuations that utilize customary valuation procedures and techniques. If actual results differ from these estimates, the amounts recorded in the financial statements could be impaired. Acquisition costs are expensed as incurred and recorded in selling, general and administrative expenses; integration costs associated with a business combination are expensed subsequent to the acquisition date; and changes in deferred tax asset valuation allowances and income tax uncertainties after the acquisition date affect income tax expense. Goodwill and Intangible Assets — Goodwill is recorded when the consideration paid for an acquisition exceeds the fair value of the net tangible and identifiable intangible assets acquired. The Company’s intangible assets principally consist of various customer relationships (including both client and parent relationships) and trade names. Goodwill and intangible assets with indefinite lives are not subject to amortization, but are tested annually for impairment or more frequently if there are indicators of impairment. Indefinite lived intangible assets are also subject to an annual evaluation to determine whether events and circumstances continue to support an indefinite useful life. Goodwill impairment assessments are performed at the reporting unit level, which for Bright Horizons is at the operating segment level. In performing the goodwill impairment test, the Company may first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than the carrying value. Qualitative factors may include, but are not limited to, macroeconomic conditions, industry conditions, the competitive environment, changes in the market for the Company’s services, regulatory developments, cost factors, and entity specific factors such as overall financial performance and projected results. If an initial qualitative assessment indicates that it is more likely than not that the carrying value exceeds the fair value of a reporting unit, an additional quantitative evaluation is performed. Alternatively, the Company may elect to proceed directly to the quantitative impairment test. In performing the quantitative analysis, the Company compares the fair value of the reporting unit with its carrying amount, including goodwill. Fair value for each reporting unit is determined by estimating the present value of expected future cash flows, which are forecasted for each of the next ten years , applying a long-term growth rate to the final year, discounted using the Company’s estimated discount rate. If the fair value of the Company’s reporting unit exceeds its carrying amount, the goodwill of the reporting unit is considered not impaired. If the carrying amount of the Company’s reporting unit exceeds its fair value, the Company would recognize an impairment charge for the amount by which the carrying amount of the reporting unit exceeds its fair value, up to the amount of goodwill allocated to that reporting unit. The Company performed a qualitative assessment during the annual impairment review as of October 1, 2019 and concluded that it is not more likely than not that the fair value of the Company’s reporting units are less than their carrying amount. No goodwill impairment charges were recorded in the years ended December 31, 2019 , 2018 , or 2017 . We test certain trademarks that are determined to be indefinite-lived intangible assets by comparing the fair value of the trademarks with their carrying value. We estimate the fair value first by estimating the total revenue attributable to the trademarks and then applying a royalty rate determined by an analysis of empirical, market-derived royalty rates for guideline intangible assets, consistent with the initial valuation of the intangibles. No impairment losses were recorded in the years ended December 31, 2019 , 2018 or 2017 in relation to intangible assets. Intangible assets that are separable from goodwill and have determinable useful lives are valued separately and are amortized over the estimated period benefited, ranging from two to seventeen years . Intangible assets related to parent relationships are amortized using an accelerated method over their useful lives. All other intangible assets are amortized on a straight-line basis over their useful lives. Impairment of Long-Lived Assets — The Company reviews long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Impairment is assessed by comparing the carrying amount of the asset to the estimated undiscounted future cash flows over the asset’s remaining life. If the estimated cash flows are less than the carrying amount of the asset, an impairment loss is recognized to reduce the carrying amount of the asset to its estimated fair value less any disposal costs. Revenue Recognition and Deferred Revenue — The Company generates revenue from services based on the consideration specified in contracts with customers, which primarily consist of employer sponsors and parents. The Company recognizes revenue when a performance obligation is satisfied by transferring control of the promised services to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those services. A performance obligation is a promise in a contract to transfer a distinct service to the customer. At contract inception, the Company assesses the services promised in the contract and identifies each distinct performance obligation. To identify the performance obligations, the Company considers the services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. The transaction price of a contract is allocated to each distinct performance obligation using the relative stand-alone selling price and recognized as revenue when, or as, control of the service is passed to the customer. Revenue is recognized over time as control of the service is transferred to our customers. The Company’s payment terms vary by the type of services offered. Tuition collected from parents is typically billed and collected monthly in advance. Fees collected from employer sponsors may be billed annually or quarterly in advance or may be billed monthly in arrears. The Company’s standard payment terms generally align with the timing of the services performed and do not include a financing component. The Company has the unconditional right to consideration as it satisfies the performance obligations, therefore no contractual assets are recognized. Equity Method Investment — The Company accounts for its investments in entities over which the Company has significant influence, but not control, using the equity method of accounting. Under the equity method of accounting, the investment is adjusted to reflect Bright Horizons’ proportionate share of the investee net earnings or losses, and is reduced by the amortization of embedded intangible assets. The Company reviews the equity method investment for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. During the year ended December 31, 2019 , the Company invested $5.9 million for a 20% interest in a provider of full service center-based child care and back-up care services in Germany, which is accounted for using the equity method. The equity method investment is included in other assets on the consolidated balance sheet and, as of December 31, 2019 , the investment balance was $6.2 million . The impact on the results of operations were immaterial for the year ended December 31, 2019 . Marketable Debt Securities — During the year ended December 31, 2019 , the Company purchased and sold marketable debt securities, which were classified as available-for-sale. These securities are held in escrow by the Company’s wholly-owned captive insurance company and were purchased with restricted cash. As such, these securities are not available to fund the Company’s operations. The Company’s investments in debt securities consist primarily of U.S. Treasury and U.S. government agency securities, and are recorded at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income (loss). As of December 31, 2019 , the fair value of the available-for-sale debt securities was $24.9 million and was classified based on the instruments’ maturity dates, with $17.0 million included in prepaid expenses and other current assets and $7.9 million in other assets on the consolidated balance sheet. At December 31, 2019 , the amortized cost was $24.9 million . The debt securities held at December 31, 2019 had remaining maturities ranging from less than one year to approximately 1.75 years . Unrealized gains and losses, net of tax, on available-for-sale debt securities were immaterial for the year ended December 31, 2019 . The Company did not realize any gains or losses on its debt securities during the year ended December 31, 2019 . The Company reviews the available-for-sale investments for impairment and would recognize an impairment charge for certain unrealized losses that are determined to be other-than-temporary. Other Investments — The Company’s investments in equity securities are primarily in a private company and a limited partnership. The equity investments without readily determinable fair value are measured at cost, less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions. The Company reviews such equity investments for impairment whenever events or changes in circumstances indicate that the carrying amount of such asset may not be recoverable. As of December 31, 2019 and 2018 , the equity investments were $3.2 million and $2.9 million , respectively, which were recorded in other assets on the consolidated balance sheet. Discount on Long-Term Debt and Deferred Financing Costs — Original issue discounts on the Company’s debt and deferred financing costs are recorded as a reduction of long-term debt and are amortized over the life of the related debt instrument in accordance with the effective interest method. Amortization expense is included in interest expense in the consolidated statement of income. Income Taxes — The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and for tax carryforwards, such as net operating losses. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the provision for income taxes in the period that includes the enactment date. The Company records a valuation allowance to reduce the carrying amount of deferred tax assets if it is more likely than not that such asset will not be realized. Additional income tax expense is recognized as a result of recording valuation allowances. The Company does not recognize a tax benefit on losses in foreign operations where it does not have a history of profitability. The Company records penalties and interest on income tax related items as a component of tax expense. Obligations for uncertain tax positions are recorded based on an assessment of whether the position is more likely than not to be sustained by the taxing authorities. The tax benefits recognized in the consolidated financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. Stock-Based Compensation — The Company accounts for stock-based compensation using a fair value method. Stock-based compensation expense is recognized in the consolidated financial statements based on the grant-date fair value of the awards that are expected to vest. This expense is recognized on a straight-line basis over the requisite service period, which generally represents the vesting period of each separately vesting tranche. The Company calculates the fair value of stock options using the Black-Scholes option-pricing model. The fair value of restricted stock and restricted stock units is based on their intrinsic value on the date of grant. Excess tax benefits (deficiencies) associated with stock-based compensation are recognized as a component of income tax expense. Comprehensive Income or Loss — Comprehensive income or loss is comprised of net income or loss, foreign currency translation adjustments, and unrealized gains or losses on interest rate swaps and investments, net of tax. The Company has not recorded a deferred tax liability related to state income taxes and foreign withholding taxes on the undistributed earnings of foreign subsidiaries that are intended to be indefinitely reinvested. Therefore, taxes are not provided for the related currency translation adjustments. Earnings Per Share — Earnings per share is calculated using the two-class method, which requires the allocation of earnings to each class of common stock outstanding and to unvested participating shares. Unvested participating shares are unvested stock-based payment awards of restricted stock that participate equally in dividends with common stock. Net income available to stockholders is allocated on a pro rata basis to each class of common stock outstanding and to unvested participating shares as if all of the earnings for the period had been distributed. Basic earnings per share is calculated by dividing the allocated net income by the weighted-average common shares outstanding. Diluted earnings per share is calculated by dividing net income by the weighted-average common shares and potentially dilutive securities outstanding during the period using the more dilutive of the treasury stock method or the two-class method. Recently Adopted Pronouncements — On January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2016-02, Leases (“ASC 842”), which requires lease assets and lease liabilities to be recognized on the balance sheet for the rights and obligations created by lease arrangements. The Company adopted the new lease guidance using the modified retrospective approach and the transition method available in accordance with ASU 2018-11, Leases (Topic 842): Targeted Improvements , which provides the option to use the effective date as the date of initial application of the guidance. As a result, the comparative information for prior periods has not been adjusted and continues to be reported in accordance with the accounting standards in effect for those periods under the previously applicable guidance. The Company evaluated its identified leases and applied the new lease guidance as further discussed in Note 3, Leases . The Company elected the package of practical expedients available under the transition guidance within ASC 842, which eliminates the requirements to reassess prior conclusions about lease identification, lease classification, and initial direct costs. The adoption of ASC 842 as of January 1, 2019 resulted in the recognition of lease liabilities of $705.7 million , which consisted of current operating lease liabilities of $81.1 million and long-term operating lease liabilities of $624.6 million , and operating lease right-of-use assets (“ROUA” or “lease assets”) of $644.3 million . Upon adoption of ASC 842, lease obligations associated with deferred rent and lease incentives recorded under previous guidance were reclassified from other current liabilities and operating lease liabilities to the lease assets. The new lease guidance did not impact the consolidated statement of income or cash flows, or earnings per common share. In August 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities (Topic 815) , which expands and refines hedge accounting for both non-financial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The guidance also makes certain targeted improvements to simplify the application of hedge accounting guidance and ease the administrative burden of hedge documentation requirements and assessing hedge effectiveness. The Company adopted the new guidance on January 1, 2019. The new guidance with respect to cash flow and net investment hedge relationships existing on the date of adoption is applied on a modified retrospective basis, and the new presentation and disclosure requirements are applied on a prospective basis. There was no impact to the Company’s consolidated financial statements and related disclosures from the adoption of this guidance. In February 2018, the FASB issued ASU 2018-02, Income Statement- Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which allows the option to reclassify stranded income tax effects resulting from the Tax Cuts and Jobs Act (the “Tax Act”) from accumulated other comprehensive income (loss) to retained earnings. Effective as of January 1, 2019, the Company did not elect to reclassify the income tax effects of the Tax Cuts and Jobs Act from accumulated other comprehensive income (loss) to retained earnings as these were not material. Recently Issued Pronouncements — In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends the existing guidance on the accounting for credit losses of certain financial instruments. This guidance requires entities to recognize the expected credit loss over the lifetime of certain financial instruments and modifies the impairment model for available-for-sale debt securities. This ASU is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years, with early adoption permitted. This standard is applied by recording a cumulative effect adjustment to retained earnings upon adoption. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 2. REVENUE RECOGNITION Nature of Services The Company’s services are comprised of full service center-based child care, back-up care, and educational advisory services, which also represent the Company’s operating and reportable segments. Full Service Center-Based Child Care Full service center-based child care includes traditional center-based child care and early education, preschool, and elementary education. Revenue generated from full service center-based child care services is primarily comprised of tuition paid by parents and fees from contractual arrangements with employer sponsors. Tuition is determined based on the age of the child, the child’s attendance schedule, and geographic location of the facility. Tuition is typically billed on a monthly basis, which is consistent with the timing of the delivery of services. The Company enters into contracts with employer sponsors to manage and operate their child care and early education centers for a management fee. These arrangements generally have a contractual term of three to ten years with varying terms and renewal options, and may also include operating subsidies paid either in lieu of or to supplement parent tuition. Management fees and subsidies are typically billed on a monthly basis, which is consistent with the timing of the delivery of services. Revenue from fixed and variable fees for full service center-based child care is recognized over time as services are rendered. Back-Up Care Services Back-up care services consist of center-based back-up child care, and in-home child and adult/elder dependent care. The Company provides back-up care services through the Company’s full-service and dedicated back-up centers, and in-home care providers, as well as through the back-up care network. Bright Horizons back-up care offers access to a contracted network of in-home service agencies and center-based providers in locations where the Company does not otherwise have in-home care providers or centers with available capacity. Back-up care revenue is primarily comprised of fixed and variable fees or subsidies paid by employer sponsors and co-payments collected from users at the point of service. These arrangements generally have contractual terms of three years with varying terms and renewal options. Fees for back-up care services are typically determined based on the number of back-up uses and are generally billed monthly as services are rendered or in advance. Revenue for back-up care is recognized over time as services are rendered. Educational Advisory Services The Company’s educational advisory services consist of tuition assistance and student loan repayment program administration and related educational consulting services (“EdAssist Solutions”), and college admissions advisory services (“College Coach”). Educational advisory services revenue is primarily comprised of fixed and variable fees paid by employer clients, as well as retail fees collected from users at the point of service. These arrangements generally have contractual terms of one to three years with varying terms and renewal options. Fees for educational advisory services are determined based on the expected number of program participants and the services selected, and are generally billed in advance. Revenue for educational advisory services is recognized over time as services are rendered. Disaggregation of Revenue The Company disaggregates revenue from contracts with customers into segments and geographical regions. Revenue disaggregated by segment and geographical region was as follows (in thousands): Full service Back-up Educational Total Year ended December 31, 2019 North America $ 1,223,365 $ 280,222 $ 81,681 $ 1,585,268 Europe 460,641 16,108 — 476,749 $ 1,684,006 $ 296,330 $ 81,681 $ 2,062,017 Year ended December 31, 2018 North America $ 1,144,932 $ 239,056 $ 71,361 $ 1,455,349 Europe 441,391 6,442 — 447,833 $ 1,586,323 $ 245,498 $ 71,361 $ 1,903,182 Year ended December 31, 2017 North America $ 1,074,270 $ 219,875 $ 58,887 $ 1,353,032 Europe 383,484 4,389 — 387,873 $ 1,457,754 $ 224,264 $ 58,887 $ 1,740,905 The classification “North America” is comprised of the Company’s United States, Canada and Puerto Rico operations and the classification “Europe” includes the United Kingdom, Netherlands, and India operations. Revenues in the United States were $1.6 billion in 2019 , $1.5 billion in 2018 , and $1.3 billion in 2017 . Revenues in the United Kingdom were $382.1 million in 2019 , $371.5 million in 2018 , and $328.0 million in 2017 . Revenue associated with other countries were not material. Deferred Revenues The Company records deferred revenue when payments are received in advance of the Company’s performance under the contract, which are recognized as revenue as the performance obligation is satisfied. In 2019 , $169.0 million was recognized as revenue related to the deferred revenue balance recorded at December 31, 2018 . In 2018 , $154.9 million was recognized as revenue related to the deferred revenue balance recorded at December 31, 2017 . There were no significant changes in deferred revenue during the years ended December 31, 2019 and 2018 related to business combinations, impairments, cumulative catch-up or other adjustments. Remaining Performance Obligations The transaction price allocated to the remaining performance obligations relates to services that are paid or invoiced in advance. The Company does not disclose the value of unsatisfied performance obligations for contracts with an original contract term of one year or less, or for variable consideration allocated to the unsatisfied performance obligation of a series of services. The Company’s remaining performance obligations not subject to the practical expedients were not material at December 31, 2019 . |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | 3. LEASES On January 1, 2019, the Company adopted ASC 842, Leases , which requires lease assets and lease liabilities to be recognized on the balance sheet for the rights and obligations created by lease arrangements. The Company adopted the new guidance using the modified retrospective transition method. Results for periods beginning on January 1, 2019, the effective date, are presented under the updated guidance, while comparative information for prior periods has not been adjusted and continues to be reported in accordance with the previous guidance under ASC 840, Leases . The Company has operating leases for certain of its full service and back-up child care and early education centers, corporate offices, call centers, and to a lesser extent, various office equipment, in the United States, the United Kingdom, the Netherlands, and Canada. Most of the leases expire within 10 to 15 years and many contain renewal options and/or termination provisions. The Company does not have any finance leases as of December 31, 2019. At contract inception, the Company reviews the terms to determine if an arrangement is a lease. At lease commencement, the Company determines whether those lease obligations are operating or finance leases and lease liabilities are recognized on the consolidated balance sheet based on the present value of the unpaid lease payments. The present value of the unpaid lease payments is calculated using the Company’s incremental borrowing rate. Lease commencement occurs on the date the Company takes possession or control of the property or equipment. Leases may contain fixed and variable payment arrangements. Variable lease payments may be based on an index or rate, such as consumer price indices, and include rent escalations or market adjustment provisions. Lease payments used to measure lease liabilities include fixed lease payments as well as variable payments that depend on an index or rate based on the applicable index or rate at the lease commencement date. Lease assets are initially measured as the amount of the initial lease liability, adjusted for initial direct costs, lease payments made at or before the commencement date, and reduced by lease incentives received, such as tenant improvement allowances. The Company does not include options to renew or terminate the lease in the determination of lease assets and lease liabilities until it is reasonably certain that the option will be exercised based on management’s assessment of various relevant factors including economic, entity-specific, and market-based factors, among others. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Variable lease payments, including those related to changes in the commencement date index or rate, are expensed as incurred. Lease expense is recognized to cost of services and selling, general and administrative expenses in the consolidated statement of income. The Company’s leases generally do not provide an implicit interest rate. Therefore, the Company uses an estimate of its incremental borrowing rate, based on the lease terms and economic environment at commencement date, in determining the present value of future payments. The Company has real estate leases that contain lease and non-lease components and has elected to account for lease and non-lease components in a contract as a single lease component. The non-lease components typically consist of common-area maintenance and utility costs. Fixed payments for non-lease components are considered part of the single lease component and included in the determination of the lease assets and lease liabilities, and variable payments are expensed as incurred. Additionally, lease contracts typically include other costs that do not transfer a separate good or service, such as reimbursement for real estate taxes and insurance, which are expensed as incurred as variable lease costs. For leases with a term of one year or less (“short-term leases”), the Company elected to not recognize the arrangements on the balance sheet and the lease payments are recognized in the consolidated statement of income on a straight-line basis over the lease term. The Company subleases certain properties that are not used in its operations. Sublease income was not significant for any of the periods presented. The Company’s lease agreements do not contain material restrictive covenants. Lease Expense The components of lease expense were as follows (in thousands): Year ended December 31, 2019 Operating lease expense (1) $ 126,796 Variable lease expense (1) 34,845 Total lease expense $ 161,641 (1) Excludes short-term lease expense and sublease income, which were immaterial for the periods presented. Other Information Supplemental cash flow information related to leases was as follows (in thousands): Year ended December 31, 2019 Operating Cash Flows: Cash paid for amounts included in the measurement of lease liabilities $ 126,071 Non-cash Transactions: Operating right-of-use assets obtained in exchange for operating lease liabilities — net $ 133,043 The weighted average remaining lease term and the weighted average discount rate as of December 31, 2019 were as follows: Operating Leases Weighted average remaining lease term (in years) 10 Weighted average discount rate 6.2% Maturity of Lease Liabilities The following table summarizes the maturity of lease liabilities as of December 31, 2019 (in thousands): Operating Leases 2020 $ 119,010 2021 119,904 2022 114,270 2023 105,763 2024 94,565 Thereafter 505,580 Total lease payments 1,059,092 Less imputed interest (290,059 ) Present value of lease liabilities 769,033 Less current portion of operating lease liabilities (83,123 ) Long-term operating lease liabilities $ 685,910 As of December 31, 2019, the Company had entered into additional operating leases that have not yet commenced with total fixed payment obligations of $105.0 million , inclusive of a new corporate headquarters office lease. The leases are expected to commence between the first quarter of fiscal 2020 and the fourth quarter of fiscal 2021 , with the new corporate headquarters office lease expected to commence in the first quarter of fiscal 2020 , and have initial lease terms of generally 10 to 15 years . Prior Year Disclosures As of December 31, 2018, future payments under operating leases were as follows as determined in accordance with the previous guidance under ASC 840 (in thousands): Operating Leases 2019 $ 120,352 2020 114,628 2021 101,710 2022 95,529 2023 87,530 Thereafter 476,861 Total future minimum lease payments $ 996,610 Rent expense for the years ended December 31, 2018 and 2017 was $127.4 million and $116.7 million , respectively, as determined under ASC 840. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | 4. ACQUISITIONS AND DISPOSITIONS The Company’s growth strategy includes expansion through strategic and synergistic acquisitions. The goodwill resulting from these acquisitions arises largely from synergies expected from combining the operations of the businesses acquired with our existing operations, as well as from benefits derived from gaining the related assembled workforce. 2019 Acquisitions During the year ended December 31, 2019 , the Company acquired three centers and the tuition program management division of another company in the United States, four centers in the Netherlands, and one back-up care provider in the United Kingdom, in eight separate business acquisitions, which were each accounted for as business combinations. These businesses were acquired for cash consideration of $53.3 million , net of cash acquired of $1.2 million , and consideration payable of $0.7 million . Additionally, contingent consideration of up to $20.0 million may be payable over the next three years if certain future performance targets are met. The Company recorded a fair value estimate of the contingent consideration of $13.9 million , as disclosed in Note 12, Fair Value Measurements . The Company recorded goodwill of $25.4 million related to the back-up care segment, which will not be deductible for tax purposes, $14.0 million related to the educational advisory services segment, which will be deductible for tax purposes, and $15.2 million related to the full service center-based child care segment, of which $3.9 million will be deductible for tax purposes. In addition, the Company recorded intangible assets of $14.6 million , primarily consisting of customer relationships that will be amortized over five years , as well as fixed assets and technology of $3.1 million , and deferred tax liabilities of $1.9 million in relation to these acquisitions. The allocation of purchase price consideration is based on preliminary estimates of fair value; such estimates and assumptions are subject to change within the measurement period (up to one year from the acquisition date). As of December 31, 2019 , the purchase price allocations for these acquisitions remain open as the Company gathers additional information regarding the assets acquired and the liabilities assumed. The operating results for the acquired businesses are included in the consolidated results of operations from the date of acquisition. The acquisitions completed in 2019 contributed revenue of $18.1 million during the year ended December 31, 2019. During the year ended December 31, 2019 , the Company paid $4.2 million for deferred and contingent consideration, which were accrued at the date of acquisition. Of this settlement, $3.5 million was for deferred consideration payable related to an acquisition completed in 2018, and $0.7 million was the final installment for contingent consideration related to an acquisition completed in 2016. 2018 Acquisitions During the year ended December 31, 2018, the Company acquired ten centers in the Netherlands, six centers in the United States, and 20 centers in the United Kingdom in seven separate business acquisitions, which were each accounted for as business combinations. The centers were acquired for cash consideration of $66.8 million , net of cash acquired of $4.2 million , and consideration payable of $5.4 million . The Company recorded goodwill of $60.3 million related to the full service center-based child care segment, of which $13.9 million will be deductible for tax purposes. In addition, the Company recorded intangible assets of $8.6 million , consisting of trademarks and customer relationships that will be amortized over two to five years , as well as fixed assets of $8.3 million , working capital of $1.1 million , and deferred tax liabilities of $1.9 million in relation to these acquisitions. During the year ended December 31, 2018, the Company paid $3.1 million for the settlement of a portion of the contingent consideration related to an acquisition completed in 2016, of which $3.0 million was accrued contingent consideration at acquisition with the remaining balance recorded to the income statement. 2017 Acquisitions During the year ended December 31, 2017, the Company acquired ten centers in the Netherlands, three centers in the United States, and one center in the United Kingdom in seven separate business acquisitions, which were each accounted for as business combinations. The centers were acquired for cash consideration of $21.5 million , net of cash acquired of $0.3 million , and consideration payable of $0.2 million . The Company recorded goodwill of $14.3 million related to the full service center-based child care segment, a portion of which will be deductible for tax purposes. In addition, the Company recorded intangible assets of $2.3 million , consisting of customer relationships that will be amortized over three to five years , as well as fixed assets of $7.3 million , deferred tax liabilities of $0.6 million , and a working capital deficit of $1.3 million in relation to these acquisitions. 2017 Dispositions During the year ended December 31, 2017, the Company disposed of its remaining three centers in Ireland for a loss of $3.7 million , which was included in other expenses in the consolidated statement of income, offset by a tax benefit of approximately $7.0 million that was recorded from the loss on investment of a subsidiary. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 5. GOODWILL AND INTANGIBLE ASSETS The changes in the carrying amount of goodwill are as follows (in thousands): Full service child care Back-up Educational Total Balance at January 1, 2018 $ 1,114,886 $ 168,105 $ 23,801 $ 1,306,792 Additions from acquisitions 60,266 — — 60,266 Effect of foreign currency translation (19,447 ) — — (19,447 ) Balance at December 31, 2018 1,155,705 168,105 23,801 1,347,611 Additions from acquisitions 15,228 25,350 14,000 54,578 Adjustments to prior year acquisitions (83 ) — — (83 ) Effect of foreign currency translation 10,380 387 — 10,767 Balance at December 31, 2019 $ 1,181,230 $ 193,842 $ 37,801 $ 1,412,873 The Company also has intangible assets, which consist of the following at December 31, 2019 and 2018 (in thousands): December 31, 2019: Weighted average amortization Cost Accumulated Net carrying Definite-lived intangibles: Customer relationships 14 years $ 404,667 $ (283,597 ) $ 121,070 Trade names 6 years 10,656 (8,144 ) 2,512 415,323 (291,741 ) 123,582 Indefinite-lived intangibles: Trade names N/A 181,091 — 181,091 $ 596,414 $ (291,741 ) $ 304,673 December 31, 2018: Weighted average amortization Cost Accumulated Net carrying Definite-lived intangibles: Customer relationships 15 years $ 391,220 $ (253,588 ) $ 137,632 Trade names 7 years 10,183 (5,609 ) 4,574 401,403 (259,197 ) 142,206 Indefinite-lived intangibles: Trade names N/A 180,829 — 180,829 $ 582,232 $ (259,197 ) $ 323,035 The Company recorded amortization expense of $33.6 million , $32.6 million and $32.6 million in the years ended December 31, 2019 , 2018 , and 2017 , respectively. The Company estimates that it will record amortization expense related to intangible assets existing as of December 31, 2019 as follows over the next five years (in thousands): Estimated amortization expense 2020 $ 31,506 2021 $ 28,292 2022 $ 25,929 2023 $ 25,054 2024 $ 11,080 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | 6. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consist of the following (in thousands): December 31, 2019 2018 Investments in available-for-sale debt securities $ 17,053 $ — Reimbursable costs 8,470 8,043 Prepaid software and licenses 5,381 4,967 Prepaid rent and other occupancy costs 4,474 16,982 Prepaid workers’ compensation claims 4,150 4,465 Restricted cash 3,320 3,028 Other prepaid expenses and current assets 9,313 9,778 $ 52,161 $ 47,263 Upon adoption of ASC 842 on January 1, 2019, prepaid rent is recorded as a reduction to the operating lease liabilities on the consolidated balance sheet. |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | 7. FIXED ASSETS Fixed assets consist of the following (dollars in thousands): Estimated useful lives December 31, (Years) 2019 2018 Buildings 20 – 40 $ 199,113 $ 187,406 Furniture, equipment and software 3 – 10 273,295 236,503 Leasehold improvements Shorter of the lease term or the estimated useful life 523,504 467,243 Land — 102,581 101,707 Total fixed assets 1,098,493 992,859 Accumulated depreciation (462,340 ) (395,718 ) Fixed assets, net $ 636,153 $ 597,141 Fixed assets include construction in progress of $29.5 million and $34.7 million at December 31, 2019 and 2018 , respectively, which was primarily comprised of leasehold improvements. The Company recorded depreciation expense of $74.6 million , $68.4 million and $62.2 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | 8. ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses consist of the following (in thousands): December 31, 2019 2018 Accrued payroll and employee benefits $ 76,606 $ 67,609 Accounts payable 31,600 35,937 Accrued insurance 10,091 9,020 Accrued fixed asset purchases 4,554 6,359 Other accrued expenses 44,208 35,270 $ 167,059 $ 154,195 Accrued insurance primarily consists of reserves for claims associated with the workers’ compensation and general liability plans. |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Other Current Liabilities | 9. OTHER CURRENT LIABILITIES Other current liabilities consist of the following (in thousands): December 31, 2019 2018 Customer amounts on deposit $ 15,922 $ 15,651 Income taxes payable 6,671 835 Liability for unvested restricted stock 4,424 3,636 Contingent consideration payable for business combinations 1,377 1,930 Deferred rent and other occupancy costs — 6,879 Other current liabilities 2,847 1,293 $ 31,241 $ 30,224 Upon adoption of ASC 842 on January 1, 2019, the current portion of operating lease liabilities is separately presented on the consolidated balance sheet. |
Credit Arrangements and Debt Ob
Credit Arrangements and Debt Obligations | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Credit Arrangements and Debt Obligations | 10. CREDIT ARRANGEMENTS AND DEBT OBLIGATIONS Senior Secured Credit Facilities The Company’s $1.3 billion senior secured credit facilities consist of a $1.1 billion secured term loan facility (“term loan facility”) and a $225 million multi-currency revolving credit facility (“revolving credit facility”). The term loans mature on November 7, 2023 and require quarterly principal payments of $2.7 million , with the remaining principal balance due on November 7, 2023. Outstanding term loan borrowings were as follows (in thousands): December 31, 2019 2018 Term loans $ 1,045,438 $ 1,056,188 Deferred financing costs and original issue discount (6,639 ) (8,568 ) Total debt 1,038,799 1,047,620 Less current maturities 10,750 10,750 Long-term debt $ 1,028,049 $ 1,036,870 The revolving credit facility matures on July 31, 2022. There were no borrowings outstanding on the revolving credit facility at December 31, 2019 . Borrowings outstanding on the revolving credit facility were $118.2 million at December 31, 2018 . All borrowings under the credit agreement are subject to variable interest. Effective as of May 31, 2018, borrowings under the term loan facility bear interest at a rate per annum of 0.75% over the base rate, or 1.75% over the eurocurrency rate, which is the one, two, three or six month LIBOR rate or, with applicable lender approval, the twelve month or less than one month LIBOR rate. With respect to the term loan facility, the base rate is subject to an interest rate floor of 1.75% and the eurocurrency rate is subject to an interest rate floor of 0.75% . Borrowings under the revolving credit facility bear interest at a rate per annum ranging from 0.50% to 0.75% over the base rate, or 1.50% to 1.75% over the eurocurrency rate. The effective interest rate for the term loans was 3.55% , 4.27% , and 3.57% at December 31, 2019 , 2018 , and 2017 , respectively, and the weighted average interest rate was 4.07% , 3.89% , and 3.53% for the years ended December 31, 2019 , 2018 , and 2017 , respectively, prior to the effects of any interest rate swap arrangements. The effective interest rate for the revolving credit facility was 4.76% , and 3.70% at December 31, 2018 and 2017 , respectively. The weighted average interest rate for the revolving credit facility was 4.20% , 4.12% , and 4.10% for the years ended December 31, 2019 , 2018 , and 2017 , respectively. Certain financing fees and original issue discount costs are capitalized and are being amortized over the terms of the related debt instruments and amortization expense is included in interest expense. Amortization expense of deferred financing costs was $1.5 million , $1.5 million and $1.4 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. Amortization expense of original issue discount costs was $0.4 million for each of the years ended December 31, 2019 , 2018 , and 2017 . All obligations under the senior secured credit facilities are secured by substantially all the assets of the Company’s U.S. subsidiaries. The senior secured credit facilities contain a number of covenants that, among other things and subject to certain exceptions, may restrict the ability of Bright Horizons Family Solutions LLC, our wholly-owned subsidiary, and its restricted subsidiaries, to: incur certain liens; make investments, loans, advances and acquisitions; incur additional indebtedness or guarantees; pay dividends on capital stock or redeem, repurchase or retire capital stock or subordinated indebtedness; engage in transactions with affiliates; sell assets, including capital stock of our subsidiaries; alter the business conducted; enter into agreements restricting our subsidiaries’ ability to pay dividends; and consolidate or merge. In addition, the credit agreement governing the senior secured credit facilities requires Bright Horizons Capital Corp., our direct subsidiary, to be a passive holding company, subject to certain exceptions. The revolving credit facility requires Bright Horizons Family Solutions LLC, the borrower, and its restricted subsidiaries, to comply with a maximum consolidated first lien net leverage ratio that is a quarterly maintenance based financial covenant. A breach of this covenant is subject to certain equity cure rights. Future principal payments of long-term debt are as follows for the years ending December 31 (in thousands): 2020 $ 10,750 2021 10,750 2022 10,750 2023 1,013,188 Total future principal payments $ 1,045,438 Credit Amendments In May 2017, November 2017, and May 2018, the Company amended its existing senior credit facilities to, among other changes, reduce the applicable interest rates of the term loan facility and the revolving credit facility. In connection with the May 2017 amendment, the Company also extended the maturity date on the revolving credit facility from July 31, 2019 to July 31, 2022. The maturity date of the amended term loan facility of November 7, 2023 was not modified with these amendments. The Company incurred $1.0 million and $2.8 million in fees associated with these amendments in the years ended December 31, 2018 and 2017 , respectively, which were included in selling, general and administrative expenses. Interest Rate Swap Agreements The Company is subject to interest rate risk as all borrowings under the senior secured credit facilities are subject to variable interest rates. In October 2017, the Company entered into variable-to-fixed interest rate swap agreements to mitigate the exposure to variable interest arrangements on a $500 million notional amount of the outstanding term loan borrowings. These swap agreements, designated and accounted for as cash flow hedges from inception, are scheduled to mature on October 31, 2021. The Company is required to make monthly payments on the notional amount at a fixed average interest rate plus the applicable rate for eurocurrency loans. Effective as of May 31, 2018, the notional amount has been subject to a total interest rate of approximately 3.65% . In exchange, the Company receives interest on the notional amount at a variable rate based on the one-month LIBOR rate, subject to a 0.75% floor. The interest rate swaps are recorded on the Company’s consolidated balance sheet at fair value and classified based on the instruments’ maturity dates. The Company records gains or losses resulting from changes in the fair value of the interest rate swaps to other comprehensive income or loss. These gains or losses are subsequently reclassified into earnings and recognized to interest expense in the Company’s consolidated statement of income in the period that the hedged interest expense on the term loan facility is recognized. As of December 31, 2019 , the fair value of the interest rate swap agreements was a liability of $2.9 million , which was recorded in other long-term liabilities on the consolidated balance sheet. As of December 31, 2018 , the fair value of the interest rate swap agreements was an asset of $7.9 million , which was recorded in other assets on the consolidated balance sheet. For the year ended December 31, 2019 , the effect of the interest rate swap agreements on other comprehensive income was as follows (in thousands): Derivatives designated as cash flow hedging instruments Amount of gain (loss) recognized in other comprehensive income Consolidated statement of income classification Amount of net gain (loss) reclassified into earnings Total effect on other comprehensive income (loss) Interest rate swaps $ (8,903 ) Interest expense—net $ 1,848 $ (10,751 ) Income tax effect 2,395 Income tax expense (497 ) 2,892 Net of income taxes $ (6,508 ) $ 1,351 $ (7,859 ) For the year ended December 31, 2018 , the effect of the interest rate swap agreements on other comprehensive income was as follows (in thousands): Derivatives designated as cash flow hedging instruments Amount of gain (loss) recognized in other comprehensive income Consolidated statement of income classification Amount of net gain (loss) reclassified into earnings Total effect on other comprehensive income (loss) Interest rate swaps $ 4,549 Interest expense—net $ 415 $ 4,134 Income tax effect (1,224 ) Income tax expense (123 ) (1,101 ) Net of income taxes $ 3,325 $ 292 $ 3,033 For the year ended December 31, 2017 , the effect of the interest rate swap agreements on other comprehensive income was as follows (in thousands): Derivatives designated as cash flow hedging instruments Amount of gain (loss) recognized in other comprehensive income Consolidated statement of income classification Amount of net gain (loss) reclassified into earnings Total effect on other comprehensive income (loss) Interest rate swaps $ 3,258 Interest expense—net $ (509 ) $ 3,767 Income tax effect (1,303 ) Income tax expense 204 (1,507 ) Net of income taxes $ 1,955 $ (305 ) $ 2,260 During the next twelve months, the Company estimates that a net loss of $1.4 million , pre-tax, will be reclassified from accumulated other comprehensive loss and recorded to interest expense, related to these interest rate swap agreements. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. INCOME TAXES Income before income taxes consists of the following (in thousands): Years ended December 31, 2019 2018 2017 United States $ 187,511 $ 157,533 $ 116,225 Foreign 35,154 34,054 45,175 $ 222,665 $ 191,587 $ 161,400 The allocation of income before income taxes may fluctuate year to year due to activity within the Bright Horizons consolidated group. In 2017, due to the disposition of our remaining assets in Ireland and the related disposition of our investment in the foreign subsidiary, the foreign income before income taxes includes a gain of approximately $11.9 million , with a corresponding loss of approximately $15.6 million within the U.S. income before income tax. This transaction resulted in a consolidated net loss of $3.7 million which is included in other expenses on the consolidated statement of income. Income tax expense consists of the following (in thousands): Years ended December 31, 2019 2018 2017 Current income tax expense: Federal $ 32,922 $ 25,225 $ 29,733 State 13,379 9,915 4,531 Foreign 7,321 3,935 7,735 53,622 39,075 41,999 Deferred tax (benefit) expense: Federal (4,727 ) (188 ) (36,794 ) State (2,739 ) (2,550 ) 612 Foreign (3,877 ) (2,731 ) (1,380 ) (11,343 ) (5,469 ) (37,562 ) Income tax expense $ 42,279 $ 33,606 $ 4,437 The following is a reconciliation of the U.S. federal statutory rate to the effective rate on pretax income (in thousands): Years ended December 31, 2019 2018 2017 Federal income tax expense computed at statutory rate $ 46,760 $ 40,233 $ 56,490 State income tax expense—net of federal income tax 8,522 6,466 2,881 Valuation allowance—net — — (1,028 ) Intercompany interest (5,213 ) (8,367 ) (5,074 ) Permanent differences and other—net 1,940 (1,417 ) 1,041 Stock-based compensation (10,990 ) (9,446 ) (22,757 ) Change in income tax rate — (548 ) (32,844 ) Transition Tax — — 11,027 Global Intangible Low-Taxed Income 1,277 2,893 — Change to uncertain tax positions—net (1,931 ) 1,657 614 Foreign rate differential 1,914 2,135 (5,913 ) Income tax expense $ 42,279 $ 33,606 $ 4,437 On December 22, 2017, the U.S. federal government enacted comprehensive tax legislation with the Tax Act that made changes to the U.S. tax code impacting the year ended December 31, 2017 and future years. Effective January 1, 2018, the Tax Act reduced the U.S. federal corporate tax rate from 35% to 21% . The effective income tax rate for 2019 was 19.0% . The Tax Act introduced the Global Intangible Low-Taxed Income (“GILTI”) regime which resulted in additional federal income tax expense of $1.3 million during the year. The taxes on GILTI are accounted for as period costs when incurred. Income tax expense was reduced by $13.9 million in 2019 for the excess tax benefits associated with the exercise of stock options and vesting of restricted stock. The effective income tax rate for 2018 was 17.5% . The GILTI regime resulted in additional federal income tax expense of $2.9 million during the year. Additionally, income tax expense was reduced by $12.1 million in 2018 for the excess tax benefits associated with the exercise of stock options and vesting of restricted stock . Included in permanent differences and other, net in the rate reconciliation is a $3.7 million benefit related to finalizing intercompany interest deductions for prior year foreign tax returns. The effective income tax rate for 2017 was 2.7% , which included a net tax benefit of $22.3 million due to the enactment of the Tax Act, primarily due to the decrease in the net deferred tax liability from the change in tax rate, and a tax benefit of approximately $7.0 million related to the disposition of our remaining assets in Ireland, which resulted in the disposition of our investment in a subsidiary for tax purposes. Additionally, income tax expense was reduced by $26.5 million in 2017 for the excess tax benefits associated with the exercise of stock options and vesting of restricted stock . For the year ended December 31, 2017, the Tax Act required a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries. The Deemed Repatriation Transition Tax (“Transition Tax”) is a tax on previously untaxed accumulated and current earnings and profits (“E&P”) of certain foreign subsidiaries, and is payable over eight years . The Company determined the amount of post-1986 E&P of its relevant foreign subsidiaries, as well as the amount of non-U.S. income tax paid on such earnings, to calculate the Transition Tax. The Company recorded a Transition Tax obligation of $11.0 million for the year ended December 31, 2017. The provisional estimate was finalized in the year ended December 31, 2018, with no significant adjustment to tax expense. Significant components of the Company’s net deferred tax liability were as follows (in thousands): December 31, 2019 2018 Deferred tax assets: Reserve on assets $ 259 $ 554 Net operating loss carryforwards 338 424 Liabilities not yet deductible 10,949 31,641 Deferred revenue 3,415 2,403 Stock-based compensation 9,906 8,502 Operating lease liabilities 190,537 — Other 4,693 3,591 Total deferred tax assets 220,097 47,115 Deferred tax liabilities: Operating lease right-of-use assets (169,117 ) — Intangible assets (86,064 ) (93,180 ) Depreciation (23,764 ) (25,128 ) Total deferred tax liabilities (278,945 ) (118,308 ) Net deferred tax liability $ (58,848 ) $ (71,193 ) At both December 31, 2019 and 2018 , the net deferred tax liability of $58.8 million and $71.2 million , respectively, includes deferred tax assets of $0.1 million which are included in other assets in the consolidated balance sheet. The Company has foreign net operating loss carryforwards of $1.6 million and has recorded an associated deferred tax asset totaling $0.3 million . The net operating losses in certain foreign jurisdictions will begin to expire in the year 2024 , while others can be carried forward indefinitely. The Company considers the earnings of certain non-U.S. subsidiaries to be indefinitely invested outside the United States on the basis of estimates that future domestic cash generation will be sufficient to meet future domestic cash needs and our specific plans for reinvestment of those subsidiary earnings. The Company has not recorded a deferred tax liability of approximately $1.5 million related to the state taxes and foreign withholding taxes on approximately $143.8 million of cumulative undistributed earnings of foreign subsidiaries indefinitely invested outside the United States. Uncertain Tax Positions The changes in the unrecognized tax benefits were as follows (in thousands): Years ended December 31, 2019 2018 2017 Beginning balance $ 5,444 $ 1,903 $ 1,096 Additions for tax positions of prior years 755 2,937 — Additions for tax positions of current year — 684 650 Reductions for tax positions of prior years (2,507 ) — — Effect of foreign currency adjustments 33 (80 ) 157 Ending balance $ 3,725 $ 5,444 $ 1,903 The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense, which were immaterial for the years ended December 31, 2019 , 2018 and 2017 . In 2019, the Company reduced unrecognized tax benefits by $2.5 million for prior year tax positions of foreign subsidiaries. During 2018, the Company recorded unrecognized tax benefits for the U.S. and a foreign subsidiary’s prior year tax positions. The total amount of unrecognized tax benefits that if recognized would affect the Company’s effective tax rate is $4.3 million , inclusive of interest. The unrecognized tax benefits could change over the next 12 months if certain tax matters ultimately settle with the applicable taxing jurisdiction during this time frame, or if applicable statutes of limitations lapse. The impact of the amount of such changes to previously recorded uncertain tax positions could range from zero to $0.9 million . The Company and its domestic subsidiaries are subject to U.S. federal income tax as well as multiple state jurisdictions. U.S. federal income tax returns are typically subject to examination by the Internal Revenue Service (IRS) and the statute of limitations for federal income tax returns is three years . The Company’s filings for the tax years 2016 through 2018 are subject to audit based upon the federal statute of limitations. State income tax returns are generally subject to examination for a period of three to four years after filing of the respective return. The state impact of any federal changes remains subject to examination by various states for a period of up to one year after formal notification to the states. As of December 31, 2019 , there were no income tax audits in process and the tax years from 2015 to 2018 are subject to audit. The Company is also subject to corporate income tax at its subsidiaries located in the United Kingdom, the Netherlands, India, Canada, Ireland and Puerto Rico. The tax returns for the Company’s subsidiaries located in foreign jurisdictions are subject to examination for periods ranging from one to five years . |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 12. FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are classified using a three-level hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement. The hierarchy gives the highest priority to observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The Company uses observable inputs where relevant and whenever possible. The three levels of the hierarchy are defined as follows: Level 1 — Fair value is derived using quoted prices from active markets for identical investments. Level 2 — Fair value is derived using quoted prices for similar instruments from active markets or for identical or similar instruments in markets that are not active; or, fair value is based on model-derived valuations in which all significant inputs and significant value drivers are observable from active markets. Level 3 — Fair value is derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The carrying value of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued expenses, and borrowings under the revolving credit facility approximates their fair value because of their short-term nature. Long-term Debt — The Company’s long-term debt is recorded at adjusted cost, net of original issue discounts and deferred financing costs. The fair value of the Company’s long-term debt is based on current bid prices, which approximates carrying value. As such, the Company’s long-term debt was classified as Level 1, as defined under U.S. GAAP. As of December 31, 2019 , the carrying value and estimated fair value of long-term debt was $1.05 billion . As of December 31, 2018 , the carrying value and estimated fair value of long-term debt was $1.06 billion and $1.01 billion , respectively. Interest Rate Swap Agreements — The Company’s interest rate swap agreements are recorded at fair value, which were estimated using market-standard valuation models. Such models project future cash flows and discount the future amounts to a present value using market-based observable inputs. Additionally, the fair value of the interest rate swaps included consideration of credit risk. The Company used a potential future exposure model to estimate this credit valuation adjustment (“CVA”). The inputs to the CVA were largely based on observable market data, with the exception of certain assumptions regarding credit worthiness. As the magnitude of the CVA was not a significant component of the fair value of the interest rate swaps, it was not considered a significant input. The fair value of the interest rate swaps is classified as Level 2, as defined under U.S. GAAP. As of December 31, 2019 , the fair value of the interest rate swap agreements was a liability of $2.9 million , which was recorded in other long-term liabilities on the consolidated balance sheet. As of December 31, 2018, the fair value of the interest rate swap agreements was an asset of $7.9 million , which was recorded in other assets on the consolidated balance sheet. Debt Securities — During the year ended December 31, 2019 , the Company purchased and sold marketable debt securities, which were classified as available-for-sale. The Company’s investment in debt securities consist primarily of U.S. Treasury and U.S. government agency securities, and are recorded at fair value. These securities are valued using quoted prices available in active markets. As such, the Company’s debt securities are classified as Level 1, as defined under U.S. GAAP. As of December 31, 2019 , the fair value of the available-for-sale debt securities was $24.9 million and was classified based on the instruments’ maturity dates, with $17.0 million included in prepaid expenses and other current assets and $7.9 million in other assets on the consolidated balance sheet. Liabilities for Contingent Consideration — The Company is subject to contingent consideration arrangements in connection with certain business combinations as disclosed in Note 4, Acquisitions and Dispositions . Liabilities for contingent consideration are measured at fair value each reporting period, with the acquisition-date fair value included as part of the consideration payable for the related business combination and subsequent changes in fair value recorded to selling, general and administrative expenses in the Company’s consolidated statements of income. The fair value of the contingent consideration recorded in the year ended December 31, 2019 was calculated using a real options model based on probability-weighted outcomes of meeting certain future performance targets. The key inputs to the valuation are the projections of future financial results in relation to the business. The Company classified the contingent consideration liability as a Level 3 fair value measurement due to the lack of observable inputs used in the model. The following table provides a roll forward of the fair value of recurring Level 3 fair value measurements (in thousands): Year ended December 31, 2019 Balance at January 1, 2019 $ 1,930 Issuance of contingent consideration in connection with acquisitions 13,870 Settlements of contingent consideration liabilities (650 ) Changes in fair value 557 Foreign currency translation 280 Balance at December 31, 2019 $ 15,987 |
Stockholders' Equity and Stock-
Stockholders' Equity and Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stockholders' Equity and Stock-Based Compensation | 13. STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION Preferred Stock The Company authorized 25 million shares of undesignated preferred stock in 2013 for issuance, of which none have been issued. The Company’s board of directors has the authority, without further action by stockholders, to issue up to 25 million shares of preferred stock in one or more series. The Company’s board of directors may designate the rights, preferences, privileges, and restrictions of the preferred stock, including dividend rights, conversion rights, voting rights, terms of redemption, liquidation preference, and number of shares constituting any series or the designation of any series. The issuance of preferred stock could have the effect of restricting dividends on the Company’s common stock, diluting the voting power of its common stock, impairing the liquidation rights of its common stock, or delaying or preventing a change in control. As of December 31, 2019 and 2018 , no shares of preferred stock were outstanding. Treasury Stock The board of directors of the Company authorized a share repurchase program of up to $300 million of the Company’s outstanding common stock, effective June 12, 2018. The share repurchase program, which has no expiration date, replaced the prior August 2016 $300 million authorization, of which $34.9 million remained available at the time the program was replaced and cancelled. The shares may be repurchased from time to time in open market transactions at prevailing market prices, in privately negotiated transactions, under Rule 10b5-1 plans, or by other means in accordance with federal securities laws. During the year ended December 31, 2019 , the Company repurchased 0.2 million shares for $31.9 million . At December 31, 2019 , $227.1 million remained available under the repurchase program. During the year ended December 31, 2018 , the Company repurchased 1.2 million shares for $126.7 million , including a total of 0.8 million shares that were purchased from investment funds affiliated with Bain Capital Partners LLC and other selling stockholders in a secondary offering at the same price per share paid by the underwriter to the selling stockholders. During the year ended December 31, 2017 , the Company repurchased 2.0 million shares for $162.2 million , including a total of 1.7 million shares that were purchased from investment funds affiliated with Bain Capital Partners LLC and other selling stockholders in secondary offerings at the same price per share paid by the underwriter to the selling stockholders. Equity Incentive Plan The Company’s 2012 Omnibus Long-Term Incentive Plan, as Amended and Restated (the “Plan”), allows for the issuance of equity awards of up to 7.4 million shares of common stock. The Plan’s original authorization of 5.0 million shares was increased in 2019 by 2.4 million shares as approved by the Company’s stockholders on May 29, 2019. As of December 31, 2019 , there were approximately 2.9 million shares of common stock available for grant. The equity awards that have been granted under the Plan consist of time-based stock options, restricted stock, and restricted stock units, which are described below. Stock-Based Compensation The Company recognized the impact of stock-based compensation in its consolidated statements of income for the years ended December 31, 2019 , 2018 , and 2017 and did not capitalize any amounts on the consolidated balance sheets. In the years ended December 31, 2019 , 2018 , and 2017 the Company recorded stock-based compensation expense of $17.3 million , $13.8 million , and $12.1 million , respectively. Stock-based compensation expense of $15.8 million , $13.1 million , and $11.6 million was recorded in selling, general and administrative expenses in the years ended December 31, 2019 , 2018 , and 2017 , respectively, and $1.5 million , $0.7 million , and $0.5 million was recorded in cost of services, respectively, in the consolidated statements of income in relation to all awards granted under the equity incentive plans. Stock-based compensation expense generated a deferred income tax benefit of $4.5 million , $3.6 million , and $3.2 million in the years ended December 31, 2019 , 2018 and 2017 , respectively. Income tax benefits realized from the exercise of stock options and vesting of restricted stock in the years ended December 31, 2019 , 2018 , and 2017 were $16.7 million , $14.7 million , and $32.3 million , respectively, inclusive of the excess tax benefits realized of $13.9 million , $12.1 million , and $26.5 million in the years ended December 31, 2019 , 2018 , and 2017 , respectively. As of December 31, 2019 , there was $27.5 million of total unrecognized compensation expense, net of estimated forfeitures, related to unvested share-based compensation arrangements granted under the Plan. That expense is expected to be recognized over a weighted average remaining requisite service period of approximately two years . Estimated forfeitures are based on the Company’s historical forfeitures and is adjusted periodically based on actual results. There were no share-based liabilities during the year ended December 31, 2019 . Stock Options Stock options granted under the Plan are subject to a service condition and expire in seven years from date of grant or upon termination of the holder’s employment with the Company, unless such termination was due to death, disability or retirement, or unless otherwise determined by the administrator of the Plan. Stock options are granted with an exercise price equal to the closing market price of the Company’s common stock on the date of grant, generally have a requisite service period of five years , and are subject to graded vesting throughout the service term. Stock-based compensation expense for stock options is based on the fair value of the award on the date of grant. The fair value of stock options granted was estimated using the Black-Scholes option pricing model and the following weighted average assumptions: Years ended December 31, 2019 2018 2017 Expected dividend yield 0.0% 0.0% 0.0% Expected stock price volatility 20.0% 26.0% 30.0% Risk free interest rate 2.4% 2.6% 1.9% Expected life of options (years) 5.1 5.3 5.3 Weighted average fair value per share of options granted during the period $29.16 $28.62 $22.08 The expected dividend yield was based on the Company’s expectation of not paying dividends in the foreseeable future. The expected stock price volatility assumption was determined using the historical volatility of the Company’s stock price over the expected life of the options. The risk free interest rate was based on the U.S. Treasury rates for U.S. Treasury zero-coupon bonds with maturities similar to those of the expected term of the awards being valued. For grants issued during the years ended December 31, 2019 , 2018 , and 2017 , the expected life of the options was calculated using the simplified method. The simplified method defines the life as the average of the contractual term of the options and the weighted average vesting period for all option tranches. We utilized the simplified method because the Company did not have sufficient historical exercise data over the life of awards to provide a reasonable basis upon which to estimate expected term. The following table summarizes the stock option activity under the Company’s equity plan for the year ended December 31, 2019 . Weighted Average Remaining Contractual Life in Years Number of Options Weighted Average Exercise Price Aggregate Intrinsic Value (In millions) Outstanding at January 1, 2019 4.1 2,416,205 $ 58.22 Granted 818,587 125.61 Exercised (563,031 ) 38.70 Forfeited/Expired (149,087 ) 88.23 Outstanding at December 31, 2019 4.3 2,522,674 $ 82.65 $ 170.9 Exercisable at December 31, 2019 2.1 695,396 $ 37.45 $ 78.5 Vested and expected to vest at December 31, 2019 4.2 2,370,813 $ 80.80 $ 165.0 The fair value (pre-tax) of options that vested during the years ended December 31, 2019 , 2018 , and 2017 was $7.8 million , $5.5 million , and $6.8 million , respectively. The intrinsic value of options exercised during the years ended December 31, 2019 , 2018 , and 2017 was $54.4 million , $46.3 million , and $66.6 million , respectively. Cash proceeds from the exercise of stock options for the years ended December 31, 2019 , 2018 , and 2017 were $21.8 million , $18.5 million , and $22.6 million , respectively. Restricted Stock and Restricted Stock Units Restricted stock awards are granted to certain senior managers at the discretion of the board of directors as allowed under the Plan. Restricted stock awards generally vest on the earliest of the third anniversary of the grant date, a change in control of the Company, or the termination of employment by reason of death or disability, and are accounted for as non-vested stock. Restricted stock is sold for a price equal to 50% of the fair value of the Company’s common stock at the date of grant. Proceeds from the issuance of restricted stock are recorded as other liabilities in the consolidated balance sheet until the earlier of vesting or forfeiture of the awards. The unvested shares of restricted stock participate equally in dividends with common stock. Restricted stock is considered legally issued at the date of grant, but is not considered common stock issued and outstanding in accordance with accounting guidance until the requisite service period is fulfilled. All outstanding shares of restricted stock are expected to vest. Cash proceeds from the issuance of restricted stock for the years ended December 31, 2019 , 2018 , and 2017 were $4.8 million , $4.5 million , and $4.4 million , respectively. Stock-based compensation expense for restricted stock awards is based on the intrinsic value of the award on the date of grant. The Company’s stock-based compensation expense recorded in selling, general and administrative expenses in the consolidated statements of income for the years ended December 31, 2019 , 2018 , and 2017 included $4.2 million , $4.1 million , and $3.7 million , respectively, for restricted stock awards. As of December 31, 2019 , total unrecognized compensation expense included $5.4 million related to unvested restricted stock, which is expected to be recognized over the weighted average remaining requisite service period of approximately two years . The following table summarizes the restricted stock activity under the Company’s equity plan for the year ended December 31, 2019 . Number of Shares Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (In millions) Non-vested restricted stock shares at January 1, 2019 330,089 $ 37.84 Granted 74,911 63.65 Vested (111,670 ) 32.03 Forfeited — — Non-vested restricted stock shares at December 31, 2019 293,330 $ 46.64 $ 30.7 The fair value of restricted shares vested during the years ended December 31, 2019 , 2018 , and 2017 was $3.6 million , $3.5 million , and $5.4 million , respectively. The weighted average grant date fair value of restricted shares granted during the years ended December 31, 2019 , 2018 , and 2017 was $63.65 , $47.85 , and $35.75 , respectively. Restricted stock units are awarded to members of the board of directors as allowed under the Plan and are vested upon award. The awards allow for the issuance of a share of the Company’s common stock for each unit upon the earliest of termination of service as a member of the board of directors or five years after the date of the award. The fair value of restricted stock unit awards is the closing market price of the Company’s common stock at the date of grant. The following table summarizes the restricted stock unit activity under the Company’s equity plan for the year ended December 31, 2019 . Number of Shares Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (In millions) Restricted stock units at January 1, 2019 47,593 $ 72.97 Granted 8,327 135.14 Converted (10,273 ) 54.41 Forfeited — — Restricted stock units at December 31, 2019 45,647 $ 88.48 $ 6.9 The weighted average grant date fair value of restricted stock units granted during the years ended December 31, 2019 , 2018 , and 2017 was $135.14 , $107.39 , and $77.99 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 14. EARNINGS PER SHARE The following table sets forth the computation of earnings per share using the two-class method (in thousands, except share and per share amounts): Years ended December 31, 2019 2018 2017 Basic earnings per share: Net income $ 180,386 $ 157,981 $ 156,963 Allocation of net income to common stockholders: Common stock $ 179,520 $ 157,096 $ 155,995 Unvested participating shares 866 885 968 $ 180,386 $ 157,981 $ 156,963 Weighted average number of common shares: Common stock 57,838,245 57,812,602 58,873,196 Unvested participating shares 278,808 325,289 366,029 Earnings per common share: Common stock $ 3.10 $ 2.72 $ 2.65 The Company calculates diluted earnings per share for common stock using the more dilutive of the treasury stock method, or the two-class method. The following table sets forth the computation of diluted earnings per share using the two-class method (in thousands, except share and per share amounts): Years ended December 31, 2019 2018 2017 Diluted earnings per share: Earnings allocated to common stock $ 179,520 $ 157,096 $ 155,995 Plus: earnings allocated to unvested participating shares 866 885 968 Less: adjusted earnings allocated to unvested participating shares (850 ) (867 ) (947 ) Earnings allocated to common stock $ 179,536 $ 157,114 $ 156,016 Weighted average number of common shares: Common stock 57,838,245 57,812,602 58,873,196 Effect of dilutive securities 1,108,995 1,188,067 1,380,495 58,947,240 59,000,669 60,253,691 Earnings per common share: Common stock $ 3.05 $ 2.66 $ 2.59 Options outstanding to purchase 0.4 million , 0.5 million , and 0.6 million shares of common stock were excluded from diluted earnings per share for the years ended December 31, 2019 , 2018 , and 2017 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | 15. ACCUMULATED OTHER COMPREHENSIVE INCOME Accumulated other comprehensive income (loss), which is included as a component of stockholders’ equity, is comprised of foreign currency translation adjustments and unrealized gains or losses from interest rate swaps and investments, net of tax. The changes in accumulated other comprehensive income (loss) by component were as follows (in thousands): Foreign currency translation adjustments Unrealized gain (loss) on interest rate swaps Unrealized gain (loss) on investments Total Balance at January 1, 2018 $ (35,556 ) $ 2,260 $ — $ (33,296 ) Other comprehensive income (loss) before reclassifications—net of tax (32,092 ) 3,325 — (28,767 ) Amounts reclassified from accumulated other comprehensive income—net of tax — (292 ) — (292 ) Net current period other comprehensive income (loss) (32,092 ) 3,033 — (29,059 ) Balance at December 31, 2018 (67,648 ) 5,293 — (62,355 ) Other comprehensive income (loss) before reclassifications—net of tax 19,813 (6,508 ) 70 13,375 Amounts reclassified from accumulated other comprehensive income—net of tax — (1,351 ) — (1,351 ) Net current period other comprehensive income (loss) 19,813 (7,859 ) 70 12,024 Balance at December 31, 2019 $ (47,835 ) $ (2,566 ) $ 70 $ (50,331 ) The gain (loss) on interest rate swaps were reclassified out of accumulated other comprehensive income (loss) as follows (in thousands): Years ended December 31, Consolidated statement of income classification 2019 2018 2017 Interest expense—net $ 1,848 $ 415 $ (509 ) Income tax expense (497 ) (123 ) 204 Net income $ 1,351 $ 292 $ (305 ) |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | 16. SEGMENT AND GEOGRAPHIC INFORMATION The Company’s services are comprised of full service center-based child care, back-up care, and educational advisory services, which also represent the Company’s three operating and reportable segments. The full service center-based child care segment includes the traditional center-based child care and early education, preschool, and elementary education. The Company’s back-up care segment consists of center-based back-up child care, and in-home child and adult/elder dependent care. The Company’s educational advisory services segment consists of tuition assistance and student loan repayment program administration, educational consulting services, and college admissions advisory services. The Company and its chief operating decision maker evaluate performance based on revenues and income from operations. The assets and liabilities of the Company are managed centrally and are reported internally in the same manner as the consolidated financial statements; therefore, no segment asset information is produced or included herein. Revenue and income from operations by reportable segment was as follows (in thousands): Full service center-based child care Back-up care Educational advisory services Total Year ended December 31, 2019 Revenue $ 1,684,006 $ 296,330 $ 81,681 $ 2,062,017 Income from operations (1) 166,011 80,394 21,414 267,819 Year ended December 31, 2018 Revenue $ 1,586,323 $ 245,498 $ 71,361 $ 1,903,182 Income from operations (2) 152,006 68,462 18,627 239,095 Year ended December 31, 2017 Revenue $ 1,457,754 $ 224,264 $ 58,887 $ 1,740,905 Income from operations (3) 130,289 60,373 14,777 205,439 (1) For the year ended December 31, 2019 , income from operations includes $0.6 million of transaction costs related to completed acquisitions, of which $0.2 million was allocated to the full service center-based child care segment and $0.4 million to the back-up care segment. (2) For the year ended December 31, 2018 , income from operations includes $1.9 million of transaction costs related to an amendment to the credit agreement, a secondary offering, and completed acquisitions, all of which were allocated to the full service center-based child care segment. (3) For the year ended December 31, 2017 , income from operations includes transaction costs of $3.7 million associated with the disposition of our remaining assets in Ireland, and $3.3 million related to amendments to the credit agreement and secondary offerings, all of which were allocated to the full service center-based child care segment. Refer to Note 2, Revenue Recognition , for revenue by geographic region. Long-lived assets by geographic region were as follows (in thousands): December 31, Long-lived assets 2019 2018 2017 North America $ 369,851 $ 347,715 $ 333,526 Europe 266,302 249,426 241,659 Total long-lived assets $ 636,153 $ 597,141 $ 575,185 The classification “North America” is comprised of the Company’s United States, Canada and Puerto Rico operations and the classification “Europe” includes the United Kingdom, Netherlands, and India operations. Long-lived assets were $368.5 million , $346.3 million , and $331.8 million at December 31, 2019 , 2018 , and 2017 , respectively, in the United States, and $240.5 million , $231.8 million , and $226.5 million at December 31, 2019 , 2018 , and 2017 , respectively, in the United Kingdom. Long-lived assets associated with other countries were not material. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | 17. EMPLOYEE BENEFIT PLANS The Company maintains a 401(k) Retirement Savings Plan (the “401(k) Plan”) for all eligible employees in the United States. To be eligible for the 401(k) Plan, an employee must be at least 20 years of age and have completed their eligibility period of 60 days of service from date of hire. The 401(k) Plan is funded by elective employee contributions of up to 75% of their compensation, subject to certain limitations. Under the 401(k) Plan, the Company matches 25% of employee contributions for each participant up to 8% of the employee’s compensation after one year of service. Expense under the plan, consisting of Company contributions and plan administrative expenses paid by the Company, totaled approximately $3.4 million , $3.4 million and $3.0 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The Company maintains other defined contribution and defined benefit pension plans that cover eligible employees in the United Kingdom and the Netherlands. These plans are generally funded by employee and employer contributions. Expense under these plans, including employer contributions, totaled approximately $9.2 million , $6.4 million and $4.1 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The Company maintains a Non-qualified Deferred Compensation Plan (the “NQDC Plan”) for eligible employees. Eligible employees are employees who have capped contribution levels in the existing 401(k) Plan due to the thresholds dictated by the IRS definition of “highly compensated” employees, as well as other employees at the Company’s discretion. The NQDC Plan is funded by elective employee contributions of up to 50% of their base compensation and up to 100% of other forms of compensation, as defined. Under the NQDC Plan, the Company matches 25% of employee contributions for each participant up to $2,500 . The Company holds investments in company-owned life insurance policies to offset the Company’s liabilities under the NQDC Plan. Total investments, included in other assets in the consolidated balance sheet, and NQDC Plan liabilities, included in other long-term liabilities in the consolidated balance sheet, were $9.4 million and $10.0 million at December 31, 2019 , respectively. Total investments and plan liabilities were $6.4 million and $6.7 million at December 31, 2018 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 18. COMMITMENTS AND CONTINGENCIES Letters of Credit The Company has 54 letters of credit outstanding used to guarantee certain rent payments for up to $2.1 million . These letters of credit are secured by cash deposits included in prepaid expenses and other current assets in the consolidated balance sheet. No amounts have been drawn against these letters of credit. Litigation The Company is a defendant in certain legal matters in the ordinary course of business. Management believes the resolution of such pending legal matters will not have a material adverse effect on the Company’s financial condition, results of operations or cash flows, although we cannot predict the ultimate outcome of any such actions. Insurance and Regulatory The Company self-insures a portion of its medical insurance plans and has a high deductible workers’ compensation plan. Additionally, a portion of the general liability coverage is provided by the Company’s wholly-owned captive insurance entity. Management believes that the amounts accrued for these obligations are sufficient and that ultimate settlement of such claims or costs associated with claims made under these plans will not have a material adverse effect on the Company’s financial position, results of operations or cash flows. The net assets of the captive insurance subsidiary, which are restricted for potential claims, were not material as of December 31, 2019 . The Company’s child care and early education centers are subject to numerous federal, state and local regulations and licensing requirements. Failure of a center to comply with applicable regulations can subject it to governmental sanctions, which could require expenditures by the Company to bring its child care and early education centers into compliance. |
Transactions with Related Parti
Transactions with Related Parties | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Transactions with Related Parties | 19. TRANSACTIONS WITH RELATED PARTIES Since the IPO in 2013, certain of the Company’s stockholders have sold a total of 52.3 million shares of the Company’s common stock in secondary offerings, including 4.6 million and 8.2 million shares in the years ended December 31, 2018 and 2017 , respectively. The Company has not received proceeds from the sale of shares in any of the secondary offerings. The Company purchased 0.8 million and 1.7 million of the shares sold in the secondary offerings in 2018 and 2017 , respectively, from the selling stockholders at the same price per share paid by the underwriter to the selling stockholders. In the secondary offering completed March 2018, investment funds affiliated with Bain Capital Partners LLC sold their remaining holdings of the Company’s common stock. |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (Unaudited) | 20. QUARTERLY RESULTS (UNAUDITED) In the opinion of the Company’s management, the accompanying unaudited interim consolidated financial statements contain all adjustments which are necessary for a fair presentation of the quarters presented. The operating results for any quarter are not necessarily indicative of the results of any future quarter. Selected quarterly financial information follows for the years ended December 31, 2019 and 2018 (in thousands, except per share amounts): March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Revenue $ 501,758 $ 528,060 $ 511,584 $ 520,615 Gross profit $ 126,947 $ 139,621 $ 125,220 $ 131,148 Income from operations $ 62,910 $ 74,833 $ 62,629 $ 67,447 Net income $ 42,042 $ 49,327 $ 41,254 $ 47,763 Allocation of net income to common stockholders: Common stock—basic $ 41,845 $ 49,088 $ 41,055 $ 47,532 Common stock—diluted $ 41,849 $ 49,093 $ 41,059 $ 47,535 Earnings per common share: Common stock—basic (1) $ 0.73 $ 0.85 $ 0.71 $ 0.82 Common stock—diluted (1) $ 0.71 $ 0.83 $ 0.69 $ 0.81 March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 Revenue $ 463,657 $ 489,699 $ 471,585 $ 478,241 Gross profit $ 113,544 $ 126,037 $ 113,040 $ 120,634 Income from operations $ 55,284 $ 64,624 $ 55,460 $ 63,727 Net income $ 37,298 $ 40,426 $ 33,600 $ 46,657 Allocation of net income to common stockholders: Common stock—basic $ 37,100 $ 40,196 $ 33,409 $ 46,391 Common stock—diluted $ 37,104 $ 40,200 $ 33,413 $ 46,397 Earnings per common share: Common stock—basic (1) $ 0.64 $ 0.70 $ 0.58 $ 0.80 Common stock—diluted (1) $ 0.62 $ 0.68 $ 0.57 $ 0.79 (1) Due to rounding, the sum of the quarterly earnings per common share amounts may not agree to the total for the year. |
Organization and Significant _2
Organization and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Organization | Organization — Bright Horizons Family Solutions Inc. (“Bright Horizons” or the “Company”) provides center-based child care and early education, back-up child and adult/elder dependent care, tuition assistance and student loan repayment program administration, educational advisory services, and other support services for employers and families in the United States, the United Kingdom, the Netherlands, Puerto Rico, Canada, and India. The Company provides services designed to help families, employers and their employees better integrate work and family life, primarily under multi-year contracts with employers who offer child care, dependent care, and workforce education services, as part of their employee benefits packages in an effort to support employees across life and career stages and improve employee engagement. The Company’s full service center-based child care includes traditional center-based child care and early education, preschool, and elementary education. The Company provides its center-based child care services under two principal business models: (1) a cost-plus model, where the Company is paid a fee by an employer client for managing a child care center on a cost-plus basis, and (2) a profit and loss (“P&L”) model, where the Company assumes the financial risk of operating a child care center and provides care on either an exclusive or priority enrollment basis to the employees of an employer sponsor, as well as to families in the surrounding community. In both the cost-plus and sponsor P&L models, the development of a new child care center, as well as ongoing maintenance and repair, is typically funded by an employer sponsor with whom the Company enters into a multi-year contractual relationship. In addition, employer sponsors typically provide subsidies for the ongoing provision of child care services for their employees. Under all model types, the Company retains responsibility for all aspects of operating the child care and early education center, including the hiring and paying of employees, contracting with vendors, purchasing supplies, and collecting tuition and related accounts receivable. The Company’s back-up care services consist of center-based back-up child care, and in-home child and adult/elder dependent care. The Company provides back-up care services through the Company’s full-service and dedicated back-up centers, as well as through the back-up care network. Bright Horizons back-up care offers access to a contracted network of in-home care agencies and center-based providers in locations where the Company does not otherwise have in-home care providers or centers with available capacity. The Company’s educational advisory services consist of tuition assistance and student loan repayment program administration, workforce education, and related educational consulting services (“EdAssist Solutions”), and college admissions advisory services (“College Coach”). |
Basis of Presentation | Basis of Presentation — The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP” or “U.S. GAAP”). The Company’s significant accounting policies are described below. Certain reclassifications have been made to prior year amounts within the consolidated statements of cash flows to conform to the current year presentation. |
Principles of Consolidation | Principles of Consolidation — The consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates — The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, as well as the reported amounts of revenue and expenses during the reporting period. The Company’s significant accounting estimates in the preparation of the consolidated financial statements relate to the valuation of goodwill and other intangibles, and income taxes. Actual results may differ from management’s estimates. |
Foreign Operations | Foreign Operations — The functional currency of the Company’s foreign subsidiaries is their local currency. The assets and liabilities of the Company’s foreign subsidiaries are translated into U.S. dollars at exchange rates in effect at the balance sheet date. Income and expense items are translated at the average exchange rates prevailing during the period. The cumulative translation effect for subsidiaries using a functional currency other than the U.S. dollar is included in accumulated other comprehensive income or loss as a separate component of stockholders’ equity. |
Concentrations of Credit Risk | Concentrations of Credit Risk — Financial instruments that potentially expose the Company to concentrations of credit risk consist mainly of cash and cash equivalents and accounts receivable. The Company mitigates its exposure by maintaining its cash and cash equivalents in financial institutions of high credit standing. The Company’s accounts receivable, which are derived primarily from the services it provides, are dispersed across many clients in various industries with no single client accounting for more than 10% of the Company’s net revenue or accounts receivable. The Company believes that no significant credit concentration risk existed at December 31, 2019 and 2018 . |
Cash, Cash Equivalents, and Restricted Cash | Cash, cash equivalents, and restricted cash — The Company considers all highly liquid investments with maturities, when purchased, of three months or less to be cash equivalents. The Company’s cash management system provides for the funding of the main bank disbursement accounts on a daily basis as checks are presented for payment. Under this system, outstanding checks may be in excess of the cash balances at certain banks, creating book overdrafts. There were $12.4 million and $17.8 million in book overdrafts at December 31, 2019 and 2018 , respectively, included in accounts payable on the consolidated balance sheet. |
Accounts Receivable | Accounts Receivable — The Company generates accounts receivable from fees charged to parents and employer sponsors. The Company monitors collections and payments and maintains a provision for estimated losses based on historical trends, in addition to provisions established for specific collection issues that have been identified. Accounts receivable are stated net of the allowance for doubtful accounts. |
Fixed Assets | Fixed Assets — Property and equipment, including leasehold improvements, are carried at cost less accumulated depreciation or amortization. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or their estimated useful lives. The cost and accumulated depreciation of assets sold or otherwise disposed of are removed from the consolidated balance sheet and the resulting gain or loss is reflected in the consolidated statement of income. Expenditures for maintenance and repairs are expensed as incurred, whereas expenditures for improvements and replacements are capitalized. Depreciation is included in cost of services and selling, general and administrative expenses depending on the nature of the expenditure. |
Business Combinations | Business Combinations — Business combinations are accounted for under the acquisition method of accounting. Amounts paid for an acquisition are allocated to the assets acquired and liabilities assumed based on their fair values at the date of acquisition. The accounting for business combinations requires estimates and judgment in determining the fair value of assets acquired and liabilities assumed, regarding expectations of future cash flows of the acquired business, and the allocation of those cash flows to the identifiable intangible assets. The determination of fair value is based on management’s estimates and assumptions, as well as other information compiled by management, including valuations that utilize customary valuation procedures and techniques. If actual results differ from these estimates, the amounts recorded in the financial statements could be impaired. Acquisition costs are expensed as incurred and recorded in selling, general and administrative expenses; integration costs associated with a business combination are expensed subsequent to the acquisition date; and changes in deferred tax asset valuation allowances and income tax uncertainties after the acquisition date affect income tax expense. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets — Goodwill is recorded when the consideration paid for an acquisition exceeds the fair value of the net tangible and identifiable intangible assets acquired. The Company’s intangible assets principally consist of various customer relationships (including both client and parent relationships) and trade names. Goodwill and intangible assets with indefinite lives are not subject to amortization, but are tested annually for impairment or more frequently if there are indicators of impairment. Indefinite lived intangible assets are also subject to an annual evaluation to determine whether events and circumstances continue to support an indefinite useful life. Goodwill impairment assessments are performed at the reporting unit level, which for Bright Horizons is at the operating segment level. In performing the goodwill impairment test, the Company may first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than the carrying value. Qualitative factors may include, but are not limited to, macroeconomic conditions, industry conditions, the competitive environment, changes in the market for the Company’s services, regulatory developments, cost factors, and entity specific factors such as overall financial performance and projected results. If an initial qualitative assessment indicates that it is more likely than not that the carrying value exceeds the fair value of a reporting unit, an additional quantitative evaluation is performed. Alternatively, the Company may elect to proceed directly to the quantitative impairment test. In performing the quantitative analysis, the Company compares the fair value of the reporting unit with its carrying amount, including goodwill. Fair value for each reporting unit is determined by estimating the present value of expected future cash flows, which are forecasted for each of the next ten years , applying a long-term growth rate to the final year, discounted using the Company’s estimated discount rate. If the fair value of the Company’s reporting unit exceeds its carrying amount, the goodwill of the reporting unit is considered not impaired. If the carrying amount of the Company’s reporting unit exceeds its fair value, the Company would recognize an impairment charge for the amount by which the carrying amount of the reporting unit exceeds its fair value, up to the amount of goodwill allocated to that reporting unit. The Company performed a qualitative assessment during the annual impairment review as of October 1, 2019 and concluded that it is not more likely than not that the fair value of the Company’s reporting units are less than their carrying amount. No goodwill impairment charges were recorded in the years ended December 31, 2019 , 2018 , or 2017 . We test certain trademarks that are determined to be indefinite-lived intangible assets by comparing the fair value of the trademarks with their carrying value. We estimate the fair value first by estimating the total revenue attributable to the trademarks and then applying a royalty rate determined by an analysis of empirical, market-derived royalty rates for guideline intangible assets, consistent with the initial valuation of the intangibles. No impairment losses were recorded in the years ended December 31, 2019 , 2018 or 2017 in relation to intangible assets. Intangible assets that are separable from goodwill and have determinable useful lives are valued separately and are amortized over the estimated period benefited, ranging from two to seventeen years . Intangible assets related to parent relationships are amortized using an accelerated method over their useful lives. All other intangible assets are amortized on a straight-line basis over their useful lives. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets — The Company reviews long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Impairment is assessed by comparing the carrying amount of the asset to the estimated undiscounted future cash flows over the asset’s remaining life. If the estimated cash flows are less than the carrying amount of the asset, an impairment loss is recognized to reduce the carrying amount of the asset to its estimated fair value less any disposal costs. |
Revenue Recognition and Deferred Revenue | Revenue Recognition and Deferred Revenue — The Company generates revenue from services based on the consideration specified in contracts with customers, which primarily consist of employer sponsors and parents. The Company recognizes revenue when a performance obligation is satisfied by transferring control of the promised services to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those services. A performance obligation is a promise in a contract to transfer a distinct service to the customer. At contract inception, the Company assesses the services promised in the contract and identifies each distinct performance obligation. To identify the performance obligations, the Company considers the services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. The transaction price of a contract is allocated to each distinct performance obligation using the relative stand-alone selling price and recognized as revenue when, or as, control of the service is passed to the customer. Revenue is recognized over time as control of the service is transferred to our customers. The Company’s payment terms vary by the type of services offered. Tuition collected from parents is typically billed and collected monthly in advance. Fees collected from employer sponsors may be billed annually or quarterly in advance or may be billed monthly in arrears. The Company’s standard payment terms generally align with the timing of the services performed and do not include a financing component. The Company has the unconditional right to consideration as it satisfies the performance obligations, therefore no contractual assets are recognized. |
Equity Method Investment | Equity Method Investment — The Company accounts for its investments in entities over which the Company has significant influence, but not control, using the equity method of accounting. Under the equity method of accounting, the investment is adjusted to reflect Bright Horizons’ proportionate share of the investee net earnings or losses, and is reduced by the amortization of embedded intangible assets. The Company reviews the equity method investment for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. During the year ended December 31, 2019 , the Company invested $5.9 million for a 20% interest in a provider of full service center-based child care and back-up care services in Germany, which is accounted for using the equity method. The equity method investment is included in other assets on the consolidated balance sheet and, as of December 31, 2019 , the investment balance was $6.2 million . The impact on the results of operations were immaterial for the year ended December 31, 2019 . |
Marketable Debt Securities | Marketable Debt Securities — During the year ended December 31, 2019 , the Company purchased and sold marketable debt securities, which were classified as available-for-sale. These securities are held in escrow by the Company’s wholly-owned captive insurance company and were purchased with restricted cash. As such, these securities are not available to fund the Company’s operations. The Company’s investments in debt securities consist primarily of U.S. Treasury and U.S. government agency securities, and are recorded at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income (loss). As of December 31, 2019 , the fair value of the available-for-sale debt securities was $24.9 million and was classified based on the instruments’ maturity dates, with $17.0 million included in prepaid expenses and other current assets and $7.9 million in other assets on the consolidated balance sheet. At December 31, 2019 , the amortized cost was $24.9 million . The debt securities held at December 31, 2019 had remaining maturities ranging from less than one year to approximately 1.75 years . Unrealized gains and losses, net of tax, on available-for-sale debt securities were immaterial for the year ended December 31, 2019 . The Company did not realize any gains or losses on its debt securities during the year ended December 31, 2019 . The Company reviews the available-for-sale investments for impairment and would recognize an impairment charge for certain unrealized losses that are determined to be other-than-temporary. |
Other Investments | Other Investments |
Discount on Long-Term Debt | Discount on Long-Term Debt and Deferred Financing Costs — Original issue discounts on the Company’s debt and deferred financing costs are recorded as a reduction of long-term debt and are amortized over the life of the related debt instrument in accordance with the effective interest method. Amortization expense is included in interest expense in the consolidated statement of income. |
Income Taxes | Income Taxes — The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and for tax carryforwards, such as net operating losses. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the provision for income taxes in the period that includes the enactment date. The Company records a valuation allowance to reduce the carrying amount of deferred tax assets if it is more likely than not that such asset will not be realized. Additional income tax expense is recognized as a result of recording valuation allowances. The Company does not recognize a tax benefit on losses in foreign operations where it does not have a history of profitability. The Company records penalties and interest on income tax related items as a component of tax expense. Obligations for uncertain tax positions are recorded based on an assessment of whether the position is more likely than not to be sustained by the taxing authorities. The tax benefits recognized in the consolidated financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. |
Stock-based Compensation | Stock-Based Compensation — The Company accounts for stock-based compensation using a fair value method. Stock-based compensation expense is recognized in the consolidated financial statements based on the grant-date fair value of the awards that are expected to vest. This expense is recognized on a straight-line basis over the requisite service period, which generally represents the vesting period of each separately vesting tranche. The Company calculates the fair value of stock options using the Black-Scholes option-pricing model. The fair value of restricted stock and restricted stock units is based on their intrinsic value on the date of grant. Excess tax benefits (deficiencies) associated with stock-based compensation are recognized as a component of income tax expense. |
Comprehensive Income or Loss | Comprehensive Income or Loss — Comprehensive income or loss is comprised of net income or loss, foreign currency translation adjustments, and unrealized gains or losses on interest rate swaps and investments, net of tax. The Company has not recorded a deferred tax liability related to state income taxes and foreign withholding taxes on the undistributed earnings of foreign subsidiaries that are intended to be indefinitely reinvested. Therefore, taxes are not provided for the related currency translation adjustments. |
Earnings Per Share | Earnings Per Share — Earnings per share is calculated using the two-class method, which requires the allocation of earnings to each class of common stock outstanding and to unvested participating shares. Unvested participating shares are unvested stock-based payment awards of restricted stock that participate equally in dividends with common stock. Net income available to stockholders is allocated on a pro rata basis to each class of common stock outstanding and to unvested participating shares as if all of the earnings for the period had been distributed. Basic earnings per share is calculated by dividing the allocated net income by the weighted-average common shares outstanding. Diluted earnings per share is calculated by dividing net income by the weighted-average common shares and potentially dilutive securities outstanding during the period using the more dilutive of the treasury stock method or the two-class method. |
New Accounting Pronouncements | Recently Adopted Pronouncements — On January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2016-02, Leases (“ASC 842”), which requires lease assets and lease liabilities to be recognized on the balance sheet for the rights and obligations created by lease arrangements. The Company adopted the new lease guidance using the modified retrospective approach and the transition method available in accordance with ASU 2018-11, Leases (Topic 842): Targeted Improvements , which provides the option to use the effective date as the date of initial application of the guidance. As a result, the comparative information for prior periods has not been adjusted and continues to be reported in accordance with the accounting standards in effect for those periods under the previously applicable guidance. The Company evaluated its identified leases and applied the new lease guidance as further discussed in Note 3, Leases . The Company elected the package of practical expedients available under the transition guidance within ASC 842, which eliminates the requirements to reassess prior conclusions about lease identification, lease classification, and initial direct costs. The adoption of ASC 842 as of January 1, 2019 resulted in the recognition of lease liabilities of $705.7 million , which consisted of current operating lease liabilities of $81.1 million and long-term operating lease liabilities of $624.6 million , and operating lease right-of-use assets (“ROUA” or “lease assets”) of $644.3 million . Upon adoption of ASC 842, lease obligations associated with deferred rent and lease incentives recorded under previous guidance were reclassified from other current liabilities and operating lease liabilities to the lease assets. The new lease guidance did not impact the consolidated statement of income or cash flows, or earnings per common share. In August 2017, the Financial Accounting Standards Board (“FASB”) issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities (Topic 815) , which expands and refines hedge accounting for both non-financial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The guidance also makes certain targeted improvements to simplify the application of hedge accounting guidance and ease the administrative burden of hedge documentation requirements and assessing hedge effectiveness. The Company adopted the new guidance on January 1, 2019. The new guidance with respect to cash flow and net investment hedge relationships existing on the date of adoption is applied on a modified retrospective basis, and the new presentation and disclosure requirements are applied on a prospective basis. There was no impact to the Company’s consolidated financial statements and related disclosures from the adoption of this guidance. In February 2018, the FASB issued ASU 2018-02, Income Statement- Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which allows the option to reclassify stranded income tax effects resulting from the Tax Cuts and Jobs Act (the “Tax Act”) from accumulated other comprehensive income (loss) to retained earnings. Effective as of January 1, 2019, the Company did not elect to reclassify the income tax effects of the Tax Cuts and Jobs Act from accumulated other comprehensive income (loss) to retained earnings as these were not material. Recently Issued Pronouncements — In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends the existing guidance on the accounting for credit losses of certain financial instruments. This guidance requires entities to recognize the expected credit loss over the lifetime of certain financial instruments and modifies the impairment model for available-for-sale debt securities. This ASU is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years, with early adoption permitted. This standard is applied by recording a cumulative effect adjustment to retained earnings upon adoption. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements and related disclosures. |
Fair Value of Financial Instruments | Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are classified using a three-level hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement. The hierarchy gives the highest priority to observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The Company uses observable inputs where relevant and whenever possible. The three levels of the hierarchy are defined as follows: Level 1 — Fair value is derived using quoted prices from active markets for identical investments. Level 2 — Fair value is derived using quoted prices for similar instruments from active markets or for identical or similar instruments in markets that are not active; or, fair value is based on model-derived valuations in which all significant inputs and significant value drivers are observable from active markets. Level 3 — Fair value is derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. |
Organization and Significant _3
Organization and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Activity in Allowance for Doubtful Accounts | Activity in the allowance for doubtful accounts is as follows (in thousands): Years ended December 31, 2019 2018 2017 Beginning balance $ 2,514 $ 2,429 $ 1,054 Provision 840 1,148 2,537 Write offs and recoveries (2,128 ) (1,063 ) (1,162 ) Ending balance $ 1,226 $ 2,514 $ 2,429 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Revenue disaggregated by segment and geographical region was as follows (in thousands): Full service Back-up Educational Total Year ended December 31, 2019 North America $ 1,223,365 $ 280,222 $ 81,681 $ 1,585,268 Europe 460,641 16,108 — 476,749 $ 1,684,006 $ 296,330 $ 81,681 $ 2,062,017 Year ended December 31, 2018 North America $ 1,144,932 $ 239,056 $ 71,361 $ 1,455,349 Europe 441,391 6,442 — 447,833 $ 1,586,323 $ 245,498 $ 71,361 $ 1,903,182 Year ended December 31, 2017 North America $ 1,074,270 $ 219,875 $ 58,887 $ 1,353,032 Europe 383,484 4,389 — 387,873 $ 1,457,754 $ 224,264 $ 58,887 $ 1,740,905 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Components of lease expense and weighted average | The components of lease expense were as follows (in thousands): Year ended December 31, 2019 Operating lease expense (1) $ 126,796 Variable lease expense (1) 34,845 Total lease expense $ 161,641 (1) Excludes short-term lease expense and sublease income, which were immaterial for the periods presented. Supplemental cash flow information related to leases was as follows (in thousands): Year ended December 31, 2019 Operating Cash Flows: Cash paid for amounts included in the measurement of lease liabilities $ 126,071 Non-cash Transactions: Operating right-of-use assets obtained in exchange for operating lease liabilities — net $ 133,043 |
Weighted average remaining lease term and weighted average discount rate | The weighted average remaining lease term and the weighted average discount rate as of December 31, 2019 were as follows: Operating Leases Weighted average remaining lease term (in years) 10 Weighted average discount rate 6.2% |
Maturities of lease liabilities | The following table summarizes the maturity of lease liabilities as of December 31, 2019 (in thousands): Operating Leases 2020 $ 119,010 2021 119,904 2022 114,270 2023 105,763 2024 94,565 Thereafter 505,580 Total lease payments 1,059,092 Less imputed interest (290,059 ) Present value of lease liabilities 769,033 Less current portion of operating lease liabilities (83,123 ) Long-term operating lease liabilities $ 685,910 |
Maturities of lease liabilities under ASC 840 | As of December 31, 2018, future payments under operating leases were as follows as determined in accordance with the previous guidance under ASC 840 (in thousands): Operating Leases 2019 $ 120,352 2020 114,628 2021 101,710 2022 95,529 2023 87,530 Thereafter 476,861 Total future minimum lease payments $ 996,610 Maturity of Lease Liabilities The following table summarizes the maturity of lease liabilities as of December 31, 2019 (in thousands): Operating Leases 2020 $ 119,010 2021 119,904 2022 114,270 2023 105,763 2024 94,565 Thereafter 505,580 Total lease payments 1,059,092 Less imputed interest (290,059 ) Present value of lease liabilities 769,033 Less current portion of operating lease liabilities (83,123 ) Long-term operating lease liabilities $ 685,910 As of December 31, 2019, the Company had entered into additional operating leases that have not yet commenced with total fixed payment obligations of $105.0 million , inclusive of a new corporate headquarters office lease. The leases are expected to commence between the first quarter of fiscal 2020 and the fourth quarter of fiscal 2021 , with the new corporate headquarters office lease expected to commence in the first quarter of fiscal 2020 , and have initial lease terms of generally 10 to 15 years . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill are as follows (in thousands): Full service child care Back-up Educational Total Balance at January 1, 2018 $ 1,114,886 $ 168,105 $ 23,801 $ 1,306,792 Additions from acquisitions 60,266 — — 60,266 Effect of foreign currency translation (19,447 ) — — (19,447 ) Balance at December 31, 2018 1,155,705 168,105 23,801 1,347,611 Additions from acquisitions 15,228 25,350 14,000 54,578 Adjustments to prior year acquisitions (83 ) — — (83 ) Effect of foreign currency translation 10,380 387 — 10,767 Balance at December 31, 2019 $ 1,181,230 $ 193,842 $ 37,801 $ 1,412,873 |
Intangible Assets Subject to Amortization | The Company also has intangible assets, which consist of the following at December 31, 2019 and 2018 (in thousands): December 31, 2019: Weighted average amortization Cost Accumulated Net carrying Definite-lived intangibles: Customer relationships 14 years $ 404,667 $ (283,597 ) $ 121,070 Trade names 6 years 10,656 (8,144 ) 2,512 415,323 (291,741 ) 123,582 Indefinite-lived intangibles: Trade names N/A 181,091 — 181,091 $ 596,414 $ (291,741 ) $ 304,673 December 31, 2018: Weighted average amortization Cost Accumulated Net carrying Definite-lived intangibles: Customer relationships 15 years $ 391,220 $ (253,588 ) $ 137,632 Trade names 7 years 10,183 (5,609 ) 4,574 401,403 (259,197 ) 142,206 Indefinite-lived intangibles: Trade names N/A 180,829 — 180,829 $ 582,232 $ (259,197 ) $ 323,035 |
Estimated Future Amortization Expense | The Company estimates that it will record amortization expense related to intangible assets existing as of December 31, 2019 as follows over the next five years (in thousands): Estimated amortization expense 2020 $ 31,506 2021 $ 28,292 2022 $ 25,929 2023 $ 25,054 2024 $ 11,080 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consist of the following (in thousands): December 31, 2019 2018 Investments in available-for-sale debt securities $ 17,053 $ — Reimbursable costs 8,470 8,043 Prepaid software and licenses 5,381 4,967 Prepaid rent and other occupancy costs 4,474 16,982 Prepaid workers’ compensation claims 4,150 4,465 Restricted cash 3,320 3,028 Other prepaid expenses and current assets 9,313 9,778 $ 52,161 $ 47,263 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of Fixed Assets | Fixed assets consist of the following (dollars in thousands): Estimated useful lives December 31, (Years) 2019 2018 Buildings 20 – 40 $ 199,113 $ 187,406 Furniture, equipment and software 3 – 10 273,295 236,503 Leasehold improvements Shorter of the lease term or the estimated useful life 523,504 467,243 Land — 102,581 101,707 Total fixed assets 1,098,493 992,859 Accumulated depreciation (462,340 ) (395,718 ) Fixed assets, net $ 636,153 $ 597,141 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Summary of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consist of the following (in thousands): December 31, 2019 2018 Accrued payroll and employee benefits $ 76,606 $ 67,609 Accounts payable 31,600 35,937 Accrued insurance 10,091 9,020 Accrued fixed asset purchases 4,554 6,359 Other accrued expenses 44,208 35,270 $ 167,059 $ 154,195 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Summary of Other Current Liabilities | Other current liabilities consist of the following (in thousands): December 31, 2019 2018 Customer amounts on deposit $ 15,922 $ 15,651 Income taxes payable 6,671 835 Liability for unvested restricted stock 4,424 3,636 Contingent consideration payable for business combinations 1,377 1,930 Deferred rent and other occupancy costs — 6,879 Other current liabilities 2,847 1,293 $ 31,241 $ 30,224 |
Credit Arrangements and Debt _2
Credit Arrangements and Debt Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Outstanding term loan borrowings were as follows (in thousands): December 31, 2019 2018 Term loans $ 1,045,438 $ 1,056,188 Deferred financing costs and original issue discount (6,639 ) (8,568 ) Total debt 1,038,799 1,047,620 Less current maturities 10,750 10,750 Long-term debt $ 1,028,049 $ 1,036,870 |
Future Minimum Payments of Long-Term Debt | Future principal payments of long-term debt are as follows for the years ending December 31 (in thousands): 2020 $ 10,750 2021 10,750 2022 10,750 2023 1,013,188 Total future principal payments $ 1,045,438 |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | For the year ended December 31, 2019 , the effect of the interest rate swap agreements on other comprehensive income was as follows (in thousands): Derivatives designated as cash flow hedging instruments Amount of gain (loss) recognized in other comprehensive income Consolidated statement of income classification Amount of net gain (loss) reclassified into earnings Total effect on other comprehensive income (loss) Interest rate swaps $ (8,903 ) Interest expense—net $ 1,848 $ (10,751 ) Income tax effect 2,395 Income tax expense (497 ) 2,892 Net of income taxes $ (6,508 ) $ 1,351 $ (7,859 ) For the year ended December 31, 2018 , the effect of the interest rate swap agreements on other comprehensive income was as follows (in thousands): Derivatives designated as cash flow hedging instruments Amount of gain (loss) recognized in other comprehensive income Consolidated statement of income classification Amount of net gain (loss) reclassified into earnings Total effect on other comprehensive income (loss) Interest rate swaps $ 4,549 Interest expense—net $ 415 $ 4,134 Income tax effect (1,224 ) Income tax expense (123 ) (1,101 ) Net of income taxes $ 3,325 $ 292 $ 3,033 For the year ended December 31, 2017 , the effect of the interest rate swap agreements on other comprehensive income was as follows (in thousands): Derivatives designated as cash flow hedging instruments Amount of gain (loss) recognized in other comprehensive income Consolidated statement of income classification Amount of net gain (loss) reclassified into earnings Total effect on other comprehensive income (loss) Interest rate swaps $ 3,258 Interest expense—net $ (509 ) $ 3,767 Income tax effect (1,303 ) Income tax expense 204 (1,507 ) Net of income taxes $ 1,955 $ (305 ) $ 2,260 The gain (loss) on interest rate swaps were reclassified out of accumulated other comprehensive income (loss) as follows (in thousands): Years ended December 31, Consolidated statement of income classification 2019 2018 2017 Interest expense—net $ 1,848 $ 415 $ (509 ) Income tax expense (497 ) (123 ) 204 Net income $ 1,351 $ 292 $ (305 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of Income (Loss) before Income Taxes | Income before income taxes consists of the following (in thousands): Years ended December 31, 2019 2018 2017 United States $ 187,511 $ 157,533 $ 116,225 Foreign 35,154 34,054 45,175 $ 222,665 $ 191,587 $ 161,400 |
Components of Income Tax (Benefit) Expense | Income tax expense consists of the following (in thousands): Years ended December 31, 2019 2018 2017 Current income tax expense: Federal $ 32,922 $ 25,225 $ 29,733 State 13,379 9,915 4,531 Foreign 7,321 3,935 7,735 53,622 39,075 41,999 Deferred tax (benefit) expense: Federal (4,727 ) (188 ) (36,794 ) State (2,739 ) (2,550 ) 612 Foreign (3,877 ) (2,731 ) (1,380 ) (11,343 ) (5,469 ) (37,562 ) Income tax expense $ 42,279 $ 33,606 $ 4,437 |
Reconciliation of Federal Statutory Rate to Effective Rate | The following is a reconciliation of the U.S. federal statutory rate to the effective rate on pretax income (in thousands): Years ended December 31, 2019 2018 2017 Federal income tax expense computed at statutory rate $ 46,760 $ 40,233 $ 56,490 State income tax expense—net of federal income tax 8,522 6,466 2,881 Valuation allowance—net — — (1,028 ) Intercompany interest (5,213 ) (8,367 ) (5,074 ) Permanent differences and other—net 1,940 (1,417 ) 1,041 Stock-based compensation (10,990 ) (9,446 ) (22,757 ) Change in income tax rate — (548 ) (32,844 ) Transition Tax — — 11,027 Global Intangible Low-Taxed Income 1,277 2,893 — Change to uncertain tax positions—net (1,931 ) 1,657 614 Foreign rate differential 1,914 2,135 (5,913 ) Income tax expense $ 42,279 $ 33,606 $ 4,437 |
Components of Net Deferred Tax Liability | Significant components of the Company’s net deferred tax liability were as follows (in thousands): December 31, 2019 2018 Deferred tax assets: Reserve on assets $ 259 $ 554 Net operating loss carryforwards 338 424 Liabilities not yet deductible 10,949 31,641 Deferred revenue 3,415 2,403 Stock-based compensation 9,906 8,502 Operating lease liabilities 190,537 — Other 4,693 3,591 Total deferred tax assets 220,097 47,115 Deferred tax liabilities: Operating lease right-of-use assets (169,117 ) — Intangible assets (86,064 ) (93,180 ) Depreciation (23,764 ) (25,128 ) Total deferred tax liabilities (278,945 ) (118,308 ) Net deferred tax liability $ (58,848 ) $ (71,193 ) |
Reconciliation of Unrecognized Tax Benefits | The changes in the unrecognized tax benefits were as follows (in thousands): Years ended December 31, 2019 2018 2017 Beginning balance $ 5,444 $ 1,903 $ 1,096 Additions for tax positions of prior years 755 2,937 — Additions for tax positions of current year — 684 650 Reductions for tax positions of prior years (2,507 ) — — Effect of foreign currency adjustments 33 (80 ) 157 Ending balance $ 3,725 $ 5,444 $ 1,903 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Roll Forward of the Fair Value of Recurring Level 3 Fair Value Measurements | The following table provides a roll forward of the fair value of recurring Level 3 fair value measurements (in thousands): Year ended December 31, 2019 Balance at January 1, 2019 $ 1,930 Issuance of contingent consideration in connection with acquisitions 13,870 Settlements of contingent consideration liabilities (650 ) Changes in fair value 557 Foreign currency translation 280 Balance at December 31, 2019 $ 15,987 |
Stockholders' Equity and Stoc_2
Stockholders' Equity and Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Class of Stock [Line Items] | |
Weighted Average Assumptions for Fair Value of Stock Option | The fair value of stock options granted was estimated using the Black-Scholes option pricing model and the following weighted average assumptions: Years ended December 31, 2019 2018 2017 Expected dividend yield 0.0% 0.0% 0.0% Expected stock price volatility 20.0% 26.0% 30.0% Risk free interest rate 2.4% 2.6% 1.9% Expected life of options (years) 5.1 5.3 5.3 Weighted average fair value per share of options granted during the period $29.16 $28.62 $22.08 |
Nonvested Restricted Stock Shares Activity | The following table summarizes the restricted stock activity under the Company’s equity plan for the year ended December 31, 2019 . Number of Shares Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (In millions) Non-vested restricted stock shares at January 1, 2019 330,089 $ 37.84 Granted 74,911 63.65 Vested (111,670 ) 32.03 Forfeited — — Non-vested restricted stock shares at December 31, 2019 293,330 $ 46.64 $ 30.7 |
Restricted Stock Unit Activity | The following table summarizes the restricted stock unit activity under the Company’s equity plan for the year ended December 31, 2019 . Number of Shares Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (In millions) Restricted stock units at January 1, 2019 47,593 $ 72.97 Granted 8,327 135.14 Converted (10,273 ) 54.41 Forfeited — — Restricted stock units at December 31, 2019 45,647 $ 88.48 $ 6.9 |
Common Stock | |
Class of Stock [Line Items] | |
Stock Option Activity | The following table summarizes the stock option activity under the Company’s equity plan for the year ended December 31, 2019 . Weighted Average Remaining Contractual Life in Years Number of Options Weighted Average Exercise Price Aggregate Intrinsic Value (In millions) Outstanding at January 1, 2019 4.1 2,416,205 $ 58.22 Granted 818,587 125.61 Exercised (563,031 ) 38.70 Forfeited/Expired (149,087 ) 88.23 Outstanding at December 31, 2019 4.3 2,522,674 $ 82.65 $ 170.9 Exercisable at December 31, 2019 2.1 695,396 $ 37.45 $ 78.5 Vested and expected to vest at December 31, 2019 4.2 2,370,813 $ 80.80 $ 165.0 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share, Basic | The following table sets forth the computation of earnings per share using the two-class method (in thousands, except share and per share amounts): Years ended December 31, 2019 2018 2017 Basic earnings per share: Net income $ 180,386 $ 157,981 $ 156,963 Allocation of net income to common stockholders: Common stock $ 179,520 $ 157,096 $ 155,995 Unvested participating shares 866 885 968 $ 180,386 $ 157,981 $ 156,963 Weighted average number of common shares: Common stock 57,838,245 57,812,602 58,873,196 Unvested participating shares 278,808 325,289 366,029 Earnings per common share: Common stock $ 3.10 $ 2.72 $ 2.65 |
Earnings Per Share, Diluted | The Company calculates diluted earnings per share for common stock using the more dilutive of the treasury stock method, or the two-class method. The following table sets forth the computation of diluted earnings per share using the two-class method (in thousands, except share and per share amounts): Years ended December 31, 2019 2018 2017 Diluted earnings per share: Earnings allocated to common stock $ 179,520 $ 157,096 $ 155,995 Plus: earnings allocated to unvested participating shares 866 885 968 Less: adjusted earnings allocated to unvested participating shares (850 ) (867 ) (947 ) Earnings allocated to common stock $ 179,536 $ 157,114 $ 156,016 Weighted average number of common shares: Common stock 57,838,245 57,812,602 58,873,196 Effect of dilutive securities 1,108,995 1,188,067 1,380,495 58,947,240 59,000,669 60,253,691 Earnings per common share: Common stock $ 3.05 $ 2.66 $ 2.59 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Loss | The changes in accumulated other comprehensive income (loss) by component were as follows (in thousands): Foreign currency translation adjustments Unrealized gain (loss) on interest rate swaps Unrealized gain (loss) on investments Total Balance at January 1, 2018 $ (35,556 ) $ 2,260 $ — $ (33,296 ) Other comprehensive income (loss) before reclassifications—net of tax (32,092 ) 3,325 — (28,767 ) Amounts reclassified from accumulated other comprehensive income—net of tax — (292 ) — (292 ) Net current period other comprehensive income (loss) (32,092 ) 3,033 — (29,059 ) Balance at December 31, 2018 (67,648 ) 5,293 — (62,355 ) Other comprehensive income (loss) before reclassifications—net of tax 19,813 (6,508 ) 70 13,375 Amounts reclassified from accumulated other comprehensive income—net of tax — (1,351 ) — (1,351 ) Net current period other comprehensive income (loss) 19,813 (7,859 ) 70 12,024 Balance at December 31, 2019 $ (47,835 ) $ (2,566 ) $ 70 $ (50,331 ) |
Reclassification out of Accumulated Other Comprehensive Income | For the year ended December 31, 2019 , the effect of the interest rate swap agreements on other comprehensive income was as follows (in thousands): Derivatives designated as cash flow hedging instruments Amount of gain (loss) recognized in other comprehensive income Consolidated statement of income classification Amount of net gain (loss) reclassified into earnings Total effect on other comprehensive income (loss) Interest rate swaps $ (8,903 ) Interest expense—net $ 1,848 $ (10,751 ) Income tax effect 2,395 Income tax expense (497 ) 2,892 Net of income taxes $ (6,508 ) $ 1,351 $ (7,859 ) For the year ended December 31, 2018 , the effect of the interest rate swap agreements on other comprehensive income was as follows (in thousands): Derivatives designated as cash flow hedging instruments Amount of gain (loss) recognized in other comprehensive income Consolidated statement of income classification Amount of net gain (loss) reclassified into earnings Total effect on other comprehensive income (loss) Interest rate swaps $ 4,549 Interest expense—net $ 415 $ 4,134 Income tax effect (1,224 ) Income tax expense (123 ) (1,101 ) Net of income taxes $ 3,325 $ 292 $ 3,033 For the year ended December 31, 2017 , the effect of the interest rate swap agreements on other comprehensive income was as follows (in thousands): Derivatives designated as cash flow hedging instruments Amount of gain (loss) recognized in other comprehensive income Consolidated statement of income classification Amount of net gain (loss) reclassified into earnings Total effect on other comprehensive income (loss) Interest rate swaps $ 3,258 Interest expense—net $ (509 ) $ 3,767 Income tax effect (1,303 ) Income tax expense 204 (1,507 ) Net of income taxes $ 1,955 $ (305 ) $ 2,260 The gain (loss) on interest rate swaps were reclassified out of accumulated other comprehensive income (loss) as follows (in thousands): Years ended December 31, Consolidated statement of income classification 2019 2018 2017 Interest expense—net $ 1,848 $ 415 $ (509 ) Income tax expense (497 ) (123 ) 204 Net income $ 1,351 $ 292 $ (305 ) |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Income from Operations by Segment | Revenue and income from operations by reportable segment was as follows (in thousands): Full service center-based child care Back-up care Educational advisory services Total Year ended December 31, 2019 Revenue $ 1,684,006 $ 296,330 $ 81,681 $ 2,062,017 Income from operations (1) 166,011 80,394 21,414 267,819 Year ended December 31, 2018 Revenue $ 1,586,323 $ 245,498 $ 71,361 $ 1,903,182 Income from operations (2) 152,006 68,462 18,627 239,095 Year ended December 31, 2017 Revenue $ 1,457,754 $ 224,264 $ 58,887 $ 1,740,905 Income from operations (3) 130,289 60,373 14,777 205,439 (1) For the year ended December 31, 2019 , income from operations includes $0.6 million of transaction costs related to completed acquisitions, of which $0.2 million was allocated to the full service center-based child care segment and $0.4 million to the back-up care segment. (2) For the year ended December 31, 2018 , income from operations includes $1.9 million of transaction costs related to an amendment to the credit agreement, a secondary offering, and completed acquisitions, all of which were allocated to the full service center-based child care segment. (3) For the year ended December 31, 2017 , income from operations includes transaction costs of $3.7 million associated with the disposition of our remaining assets in Ireland, and $3.3 million related to amendments to the credit agreement and secondary offerings, all of which were allocated to the full service center-based child care segment. |
Revenue and Long-Lived Assets by Geographic Region | Refer to Note 2, Revenue Recognition , for revenue by geographic region. Long-lived assets by geographic region were as follows (in thousands): December 31, Long-lived assets 2019 2018 2017 North America $ 369,851 $ 347,715 $ 333,526 Europe 266,302 249,426 241,659 Total long-lived assets $ 636,153 $ 597,141 $ 575,185 |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Selected quarterly financial information follows for the years ended December 31, 2019 and 2018 (in thousands, except per share amounts): March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Revenue $ 501,758 $ 528,060 $ 511,584 $ 520,615 Gross profit $ 126,947 $ 139,621 $ 125,220 $ 131,148 Income from operations $ 62,910 $ 74,833 $ 62,629 $ 67,447 Net income $ 42,042 $ 49,327 $ 41,254 $ 47,763 Allocation of net income to common stockholders: Common stock—basic $ 41,845 $ 49,088 $ 41,055 $ 47,532 Common stock—diluted $ 41,849 $ 49,093 $ 41,059 $ 47,535 Earnings per common share: Common stock—basic (1) $ 0.73 $ 0.85 $ 0.71 $ 0.82 Common stock—diluted (1) $ 0.71 $ 0.83 $ 0.69 $ 0.81 March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 Revenue $ 463,657 $ 489,699 $ 471,585 $ 478,241 Gross profit $ 113,544 $ 126,037 $ 113,040 $ 120,634 Income from operations $ 55,284 $ 64,624 $ 55,460 $ 63,727 Net income $ 37,298 $ 40,426 $ 33,600 $ 46,657 Allocation of net income to common stockholders: Common stock—basic $ 37,100 $ 40,196 $ 33,409 $ 46,391 Common stock—diluted $ 37,104 $ 40,200 $ 33,413 $ 46,397 Earnings per common share: Common stock—basic (1) $ 0.64 $ 0.70 $ 0.58 $ 0.80 Common stock—diluted (1) $ 0.62 $ 0.68 $ 0.57 $ 0.79 (1) Due to rounding, the sum of the quarterly earnings per common share amounts may not agree to the total for the year. |
Organization and Significant _4
Organization and Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2019USD ($)business_model | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) | |
Accounting Policies [Line Items] | ||||
Payments to Acquire Investments | $ 5,865,000 | $ 0 | $ 0 | |
Number of business models | business_model | 2 | |||
Foreign Operations [Abstract] | ||||
Cumulative translation adjustment, net of tax, period increase (decrease) | 1,700,000 | |||
Cash, cash equivalents, and restricted cash | ||||
Book overdrafts | $ 12,400,000 | 17,800,000 | ||
Goodwill and Intangible Assets [Abstract] | ||||
Estimated fair value for each reporting unit, forecast period | 10 years | |||
Goodwill impairment loss | $ 0 | 0 | 0 | |
Impairment losses | 0 | 0 | $ 0 | |
Equity method investment | 6,200,000 | |||
Available-for-sale debt securities | 24,900,000 | |||
Debt securities, available-for-sale, amortized cost | 24,900,000 | |||
Other long term assets, investment | 3,200,000 | 2,900,000 | ||
New Accounting Pronouncements [Abstract] | ||||
Operating lease liability | 769,033,000 | |||
Current portion of operating lease liabilities | 83,123,000 | 0 | ||
Long-term operating lease liabilities | 685,910,000 | 71,817,000 | ||
Operating lease right-of-use assets | $ 700,956,000 | $ 0 | ||
Minimum | ||||
Goodwill and Intangible Assets [Abstract] | ||||
Finite lived intangible assets, estimated useful life | 2 years | |||
Debt securities, available-for-sale, weighted average remaining maturity term | 1 year | |||
Maximum | ||||
Goodwill and Intangible Assets [Abstract] | ||||
Finite lived intangible assets, estimated useful life | 17 years | |||
Debt securities, available-for-sale, weighted average remaining maturity term | 1 year 9 months | |||
Accounting Standards Update 2014-09 | ||||
New Accounting Pronouncements [Abstract] | ||||
Operating lease liability | $ 705,700,000 | |||
Current portion of operating lease liabilities | 81,100,000 | |||
Long-term operating lease liabilities | 624,600,000 | |||
Operating lease right-of-use assets | $ 644,300,000 | |||
Provider Of Full Service Child Care And Back-Up Care Service | ||||
Accounting Policies [Line Items] | ||||
Payments to Acquire Investments | $ 5,900,000 | |||
Goodwill and Intangible Assets [Abstract] | ||||
Equity method ownership (as a percentage) | 20.00% | |||
Prepaid Expenses and Other Current Assets | ||||
Goodwill and Intangible Assets [Abstract] | ||||
Available-for-sale debt securities | $ 17,000,000 | |||
Other Assets | ||||
Goodwill and Intangible Assets [Abstract] | ||||
Available-for-sale debt securities | $ 7,900,000 |
Organization and Significant _5
Organization and Significant Accounting Policies - Activity in Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 2,514 | $ 2,429 | $ 1,054 |
Provision | 840 | 1,148 | 2,537 |
Write offs and recoveries | (2,128) | (1,063) | (1,162) |
Ending balance | $ 1,226 | $ 2,514 | $ 2,429 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 520,615 | $ 511,584 | $ 528,060 | $ 501,758 | $ 478,241 | $ 471,585 | $ 489,699 | $ 463,657 | $ 2,062,017 | $ 1,903,182 | $ 1,740,905 |
Deferred revenue, revenue recognized | 169,000 | 154,900 | |||||||||
United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,600,000 | 1,500,000 | 1,300,000 | ||||||||
United Kingdom | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 382,100 | 371,500 | 328,000 | ||||||||
Full service center-based child care | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 1,684,006 | 1,586,323 | 1,457,754 | ||||||||
Full service center-based child care | Minimum | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Contract term | 3 years | ||||||||||
Full service center-based child care | Maximum | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Contract term | 10 years | ||||||||||
Back-up dependent care | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Contract term | 3 years | ||||||||||
Revenue | $ 296,330 | 245,498 | 224,264 | ||||||||
Educational advisory services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 81,681 | $ 71,361 | $ 58,887 | ||||||||
Educational advisory services | Minimum | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Contract term | 1 year | ||||||||||
Educational advisory services | Maximum | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Contract term | 3 years |
Revenue Recognition Disaggregat
Revenue Recognition Disaggregation Of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 520,615 | $ 511,584 | $ 528,060 | $ 501,758 | $ 478,241 | $ 471,585 | $ 489,699 | $ 463,657 | $ 2,062,017 | $ 1,903,182 | $ 1,740,905 |
North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,585,268 | 1,455,349 | 1,353,032 | ||||||||
Europe And Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 476,749 | 447,833 | 387,873 | ||||||||
Full service center-based child care | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,684,006 | 1,586,323 | 1,457,754 | ||||||||
Full service center-based child care | North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,223,365 | 1,144,932 | 1,074,270 | ||||||||
Full service center-based child care | Europe And Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 460,641 | 441,391 | 383,484 | ||||||||
Back-up dependent care | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 296,330 | 245,498 | 224,264 | ||||||||
Back-up dependent care | North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 280,222 | 239,056 | 219,875 | ||||||||
Back-up dependent care | Europe And Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 16,108 | 6,442 | 4,389 | ||||||||
Educational advisory services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 81,681 | 71,361 | 58,887 | ||||||||
Educational advisory services | North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 81,681 | 71,361 | 58,887 | ||||||||
Educational advisory services | Europe And Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 0 | $ 0 | $ 0 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease not yet commenced | $ 105 | ||
Rent expense | $ 127.4 | $ 116.7 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease term | 10 years | ||
Operating lease not yet commenced term | 10 years | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease term | 15 years | ||
Operating lease not yet commenced term | 15 years |
Leases - Expense (Details)
Leases - Expense (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease expense | $ 126,796 |
Variable lease expense | 34,845 |
Total lease expense | $ 161,641 |
Leases - Additional Cash Flow D
Leases - Additional Cash Flow Disclosures (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of lease liabilities | $ 126,071 |
Operating right-of-use assets obtained in exchange for operating lease liabilities — net | $ 133,043 |
Leases - Weighted Average Remai
Leases - Weighted Average Remaining Lease Term and Discount Rate (Details) | Dec. 31, 2019 |
Leases [Abstract] | |
Weighted average remaining lease term (in years) | 10 years |
Weighted average discount rate (percentage) | 6.20% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
2020 | $ 119,010 | |
2021 | 119,904 | |
2022 | 114,270 | |
2023 | 105,763 | |
2024 | 94,565 | |
Thereafter | 505,580 | |
Total lease payments | 1,059,092 | |
Less imputed interest | (290,059) | |
Present value of lease liabilities | 769,033 | |
Less current portion of operating lease liabilities | (83,123) | $ 0 |
Long-term operating lease liabilities | $ 685,910 | $ 71,817 |
Leases - Maturities of Lease _2
Leases - Maturities of Lease Liabilities under ASC 840 (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 120,352 |
2020 | 114,628 |
2021 | 101,710 |
2022 | 95,529 |
2023 | 87,530 |
Thereafter | 476,861 |
Total future minimum lease payments | $ 996,610 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($)CenterBusiness | Dec. 31, 2018USD ($)CenterBusiness | Dec. 31, 2017USD ($)CenterBusiness | |
Business Acquisition [Line Items] | ||||
Business combination, contingent consideration, liability | $ 13,870 | $ 0 | $ 0 | |
Contingent consideration payment term | 3 years | |||
Goodwill | $ 1,412,873 | 1,347,611 | 1,306,792 | |
Payment for contingent consideration | 4,200 | 2,965 | 185 | |
Payments and settlements for acquisitions—net of cash acquired | $ 53,425 | $ 67,111 | $ 21,484 | |
IRELAND | ||||
Business Acquisition [Line Items] | ||||
Number of properties disposed | Center | 3 | |||
Loss on disposal | $ 3,700 | |||
Income (loss) from subsidiaries, tax expense (benefit) | $ 7,000 | |||
Series of Individually Immaterial Business Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Number of businesses acquired | Business | 8 | 7 | 7 | |
Cash consideration to acquire business, gross | $ 53,300 | $ 21,500 | ||
Cash acquired | 1,200 | $ 4,200 | 300 | |
Business combination, contingent consideration, liability | 700 | 200 | ||
Contingent consideration, maximum value | 20,000 | |||
Fair value of contingent consideration | 13,900 | |||
Goodwill | 60,300 | 14,300 | ||
Goodwill, expected tax deductible amount | 13,900 | |||
Intangible assets consisting of customer relationships and trade names | 14,600 | 2,300 | ||
Fixed assets and technology acquired | 3,100 | |||
Deferred tax liabilities | (1,900) | (1,900) | ||
Revenue contributed by acquiree | 18,100 | |||
Payment for contingent consideration | $ 4,200 | |||
Payments and settlements for acquisitions—net of cash acquired | 66,800 | |||
Contingent consideration | 5,400 | |||
Fixed assets acquired | 8,300 | |||
Net identifiable assets acquired and liabilities assumed | $ 1,100 | (1,300) | ||
Buildings acquired | 7,300 | |||
Deferred tax liabilities | $ (600) | |||
Series of Individually Immaterial Business Acquisitions | UNITED STATES | ||||
Business Acquisition [Line Items] | ||||
Number of centers acquired | Center | 3 | 6 | 3 | |
Series of Individually Immaterial Business Acquisitions | NETHERLANDS | ||||
Business Acquisition [Line Items] | ||||
Number of centers acquired | Center | 4 | 10 | 10 | |
Series of Individually Immaterial Business Acquisitions | United Kingdom | ||||
Business Acquisition [Line Items] | ||||
Number of centers acquired | Center | 1 | 20 | 1 | |
Series of Individually Immaterial Business Acquisitions | Maximum | ||||
Business Acquisition [Line Items] | ||||
Intangible asset useful life | 5 years | |||
Conchord Limited Asquith | ||||
Business Acquisition [Line Items] | ||||
Payment for contingent consideration | $ 3,000 | |||
Payments contingent consideration | 3,100 | |||
Customer Relationships | Series of Individually Immaterial Business Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Intangible assets consisting of customer relationships and trade names | $ 8,600 | |||
Intangible asset useful life | 5 years | |||
Customer Relationships | Series of Individually Immaterial Business Acquisitions | Minimum | ||||
Business Acquisition [Line Items] | ||||
Intangible asset useful life | 2 years | 3 years | ||
Customer Relationships | Series of Individually Immaterial Business Acquisitions | Maximum | ||||
Business Acquisition [Line Items] | ||||
Intangible asset useful life | 5 years | |||
Prior Year Series of Individually Immaterial Business Acquisitions | Series of Individually Immaterial Business Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Payment for contingent consideration | $ 3,500 | |||
Prior Periods Series of Individually Immaterial Business Acquisitions | Series of Individually Immaterial Business Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Payment for contingent consideration | $ 700 | |||
Back-Up Care Services | Series of Individually Immaterial Business Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 25,400 | |||
Educational advisory services | Series of Individually Immaterial Business Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 14,000 | |||
Full service center-based child care | IRELAND | ||||
Business Acquisition [Line Items] | ||||
Loss on disposal | $ (3,700) | |||
Full service center-based child care | Series of Individually Immaterial Business Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 15,200 | |||
Goodwill, expected tax deductible amount | $ 3,900 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Beginning Balance | $ 1,347,611 | $ 1,306,792 |
Additions from acquisitions | 54,578 | 60,266 |
Adjustments to prior year acquisitions | (83) | |
Effect of foreign currency translation | 10,767 | (19,447) |
Ending Balance | 1,412,873 | 1,347,611 |
Full service center-based child care | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 1,155,705 | 1,114,886 |
Additions from acquisitions | 15,228 | 60,266 |
Adjustments to prior year acquisitions | (83) | |
Effect of foreign currency translation | 10,380 | (19,447) |
Ending Balance | 1,181,230 | 1,155,705 |
Back-up care | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 168,105 | 168,105 |
Additions from acquisitions | 25,350 | 0 |
Adjustments to prior year acquisitions | 0 | |
Effect of foreign currency translation | 387 | 0 |
Ending Balance | 193,842 | 168,105 |
Educational advisory services | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 23,801 | 23,801 |
Additions from acquisitions | 14,000 | 0 |
Adjustments to prior year acquisitions | 0 | |
Effect of foreign currency translation | 0 | 0 |
Ending Balance | $ 37,801 | $ 23,801 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | $ 415,323 | $ 401,403 |
Accumulated amortization | (291,741) | (259,197) |
Net carrying amount | 123,582 | 142,206 |
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Cost | 596,414 | 582,232 |
Net carrying amount | 304,673 | 323,035 |
Trade names | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Indefinite-lived intangibles: | $ 181,091 | $ 180,829 |
Customer relationships | ||
Intangible Assets [Line Items] | ||
Weighted average amortization period | 14 years | 15 years |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | $ 404,667 | $ 391,220 |
Accumulated amortization | (283,597) | (253,588) |
Net carrying amount | $ 121,070 | $ 137,632 |
Trade names | ||
Intangible Assets [Line Items] | ||
Weighted average amortization period | 6 years | 7 years |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | $ 10,656 | $ 10,183 |
Accumulated amortization | (8,144) | (5,609) |
Net carrying amount | $ 2,512 | $ 4,574 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 33,621 | $ 32,569 | $ 32,561 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Estimated Amortization Expense Related to Intangible Assets (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 31,506 |
2021 | 28,292 |
2022 | 25,929 |
2023 | 25,054 |
2024 | $ 11,080 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Investments in available-for-sale debt securities | $ 17,053 | $ 0 | |
Prepaid rent and other occupancy costs | 4,474 | 16,982 | |
Reimbursable costs | 8,470 | 8,043 | |
Prepaid software and licenses | 5,381 | 4,967 | |
Prepaid workers’ compensation claims | 4,150 | 4,465 | |
Restricted cash | 3,320 | 3,028 | $ 5,343 |
Other prepaid expenses and current assets | 9,313 | 9,778 | |
Prepaid expenses and other current assets | $ 52,161 | $ 47,263 |
Fixed Assets - Summary of Fixed
Fixed Assets - Summary of Fixed Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | $ 1,098,493 | $ 992,859 |
Accumulated depreciation | (462,340) | (395,718) |
Fixed assets, net | 636,153 | 597,141 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | $ 199,113 | 187,406 |
Buildings | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, useful life | 20 years | |
Buildings | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, useful life | 40 years | |
Furniture, equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | $ 273,295 | 236,503 |
Furniture, equipment and software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, useful life | 3 years | |
Furniture, equipment and software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, useful life | 10 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | $ 523,504 | 467,243 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | $ 102,581 | $ 101,707 |
Fixed Assets - Additional Infor
Fixed Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Construction in progress | $ 29.5 | $ 34.7 | |
Depreciation expense | $ 74.6 | $ 68.4 | $ 62.2 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses - Summary of Accounts Payable and Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Accrued payroll and employee benefits | $ 76,606 | $ 67,609 |
Accounts payable | 31,600 | 35,937 |
Accrued insurance | 10,091 | 9,020 |
Accrued fixed asset purchases | 4,554 | 6,359 |
Other accrued expenses | 44,208 | 35,270 |
Accounts payable and accrued expenses | $ 167,059 | $ 154,195 |
Other Current Liabilities - Sum
Other Current Liabilities - Summary of Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Customer amounts on deposit | $ 15,922 | $ 15,651 |
Income taxes payable | 6,671 | 835 |
Liability for unvested restricted stock | 4,424 | 3,636 |
Contingent consideration payable for business combinations | 1,377 | 1,930 |
Deferred rent and other occupancy costs | 0 | 6,879 |
Other current liabilities | 2,847 | 1,293 |
Other current liabilities | $ 31,241 | $ 30,224 |
Credit Arrangements and Debt _3
Credit Arrangements and Debt Obligations - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Borrowings [Line Items] | ||
Less current maturities | $ 10,750 | $ 10,750 |
Long-term debt | 1,028,049 | 1,036,870 |
Term Loan | ||
Schedule Of Borrowings [Line Items] | ||
Term loans | 1,045,438 | 1,056,188 |
Deferred financing costs and original issue discount | (6,639) | (8,568) |
Total debt | 1,038,799 | 1,047,620 |
Less current maturities | 10,750 | 10,750 |
Long-term debt | $ 1,028,049 | $ 1,036,870 |
Credit Arrangements and Debt _4
Credit Arrangements and Debt Obligations - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | May 31, 2018 | Oct. 31, 2017 | |
Debt Instrument [Line Items] | |||||
Borrowings under revolving credit facility | $ 0 | $ 118,200,000 | |||
Amortization of deferred financing costs | 1,500,000 | 1,500,000 | $ 1,400,000 | ||
Amortization of original debt issuance costs | 400,000 | ||||
Derivative, average fixed interest rate | 3.65% | ||||
Loss that will be reclassified from accumulated other comprehensive income to interest expense | $ 1,400,000 | ||||
Bank Base Rate | |||||
Debt Instrument [Line Items] | |||||
Debt issuance interest rate, percentage added to base (percentage) | 0.75% | ||||
Senior Credit Facilities | |||||
Debt Instrument [Line Items] | |||||
Line of credit, maximum borrowing capacity | $ 1,300,000,000 | ||||
Corporate Debt Securities | |||||
Debt Instrument [Line Items] | |||||
Fees associated with credit amendment | $ 1,000,000 | $ 2,800,000 | |||
Secured Term Loan | Senior Credit Facilities | |||||
Debt Instrument [Line Items] | |||||
Debt issuance, quarterly principal payments | 2,700,000 | ||||
Term Loan | Senior Credit Facilities | |||||
Debt Instrument [Line Items] | |||||
Line of credit, maximum borrowing capacity | $ 1,100,000,000 | ||||
Effective interest rate for the term loans (percentage) | 3.55% | 4.27% | 3.57% | ||
Debt issuance, weighted average interest rate (percentage) | 4.07% | 3.89% | 3.53% | ||
Term Loan | Senior Credit Facilities | Bank Base Rate | Minimum | |||||
Debt Instrument [Line Items] | |||||
Debt issuance interest rate, percentage added to base (percentage) | 1.75% | ||||
Term Loan | Senior Credit Facilities | Eurocurrency | Minimum | |||||
Debt Instrument [Line Items] | |||||
Debt issuance interest rate, percentage added to base (percentage) | 0.75% | ||||
Revolving Credit Facility | Senior Credit Facilities | |||||
Debt Instrument [Line Items] | |||||
Debt issuance, principal amount | $ 225,000,000 | ||||
Effective interest rate for the term loans (percentage) | 4.76% | 3.70% | |||
Debt issuance, weighted average interest rate (percentage) | 4.20% | 4.12% | 4.10% | ||
Revolving Credit Facility | Senior Credit Facilities | Bank Base Rate | Minimum | |||||
Debt Instrument [Line Items] | |||||
Debt issuance interest rate, percentage added to base (percentage) | 0.50% | ||||
Revolving Credit Facility | Senior Credit Facilities | Bank Base Rate | Maximum | |||||
Debt Instrument [Line Items] | |||||
Debt issuance interest rate, percentage added to base (percentage) | 0.75% | ||||
Revolving Credit Facility | Senior Credit Facilities | Eurocurrency | Minimum | |||||
Debt Instrument [Line Items] | |||||
Debt issuance interest rate, percentage added to base (percentage) | 1.50% | ||||
Revolving Credit Facility | Senior Credit Facilities | Eurocurrency | Maximum | |||||
Debt Instrument [Line Items] | |||||
Debt issuance interest rate, percentage added to base (percentage) | 1.75% | ||||
Interest Rate Swap | |||||
Debt Instrument [Line Items] | |||||
Derivative, notional amount | $ 500,000,000 | ||||
Fair Value, Inputs, Level 2 | Estimate of Fair Value Measurement | Interest Rate Swap | |||||
Debt Instrument [Line Items] | |||||
Derivative liability | $ 2,900,000 | ||||
Derivative asset | $ 7,900,000 |
Credit Arrangements and Debt _5
Credit Arrangements and Debt Obligations - Maturity Schedule (Details) - Term Loan $ in Thousands | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | |
2020 | $ 10,750 |
2021 | 10,750 |
2022 | 10,750 |
2023 | 1,013,188 |
Total debt | $ 1,045,438 |
Credit Arrangements and Debt _6
Credit Arrangements and Debt Obligations - Effect of Derivatives on Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amount of gain (loss) recognized in other comprehensive income | |||
Amount of gain (loss) recognized in other comprehensive income: Interest rate swaps | $ (8,903) | $ 4,549 | $ 3,258 |
Amount of gain (loss) recognized in other comprehensive income: Income tax effect | 2,395 | (1,224) | (1,303) |
Amount of gain (loss) recognized in other comprehensive income: Net of income taxes | (6,508) | 3,325 | 1,955 |
Amount of net gain (loss) reclassified into earnings | |||
Amount of net gain (loss) reclassified into earnings: Interest expense-net | 1,848 | 415 | (509) |
Amount of net gain (loss) reclassified into earnings: Income tax effect | (497) | (123) | 204 |
Amount of net gain (loss) reclassified into earnings: Net of income taxes | 1,351 | 292 | (305) |
Total effect on other comprehensive income (loss) | |||
Total effect on other comprehensive income (loss): Interest rate swaps | (10,751) | 4,134 | 3,767 |
Total effect on other comprehensive income (loss): Income tax effect | 2,892 | (1,101) | (1,507) |
Total effect on other comprehensive income (loss): Net of income taxes | $ (7,859) | $ 3,033 | $ 2,260 |
Income Taxes - Income (Loss) Be
Income Taxes - Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 187,511 | $ 157,533 | $ 116,225 |
Foreign | 35,154 | 34,054 | 45,175 |
Income before income tax | $ 222,665 | $ 191,587 | $ 161,400 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2019USD ($)tax_audit | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Income Tax Disclosure [Line Items] | |||
Effective income tax rate (percentage) | 19.00% | 17.50% | 2.70% |
Tax Cuts and Jobs Act, income tax expense (benefit) | $ 1,300,000 | ||
Tax Cuts and Jobs Act of 2017, expense (benefit) | $ 2,900,000 | $ (22,300,000) | |
Excess tax benefits from stock option exercises | 13,900,000 | 12,100,000 | $ 26,500,000 |
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | (3,700,000) | ||
Fiscal period duration | 8 years | ||
Tax Cuts and Jobs Act of 2017, deferred tax liability, provision income tax benefit | $ 11,000,000 | ||
Deferred tax liability | 58,848,000 | 71,193,000 | |
Net deferred tax asset | 100,000 | $ 100,000 | |
Deferred tax asset, net operating losses, foreign | 300,000 | ||
Undistributed earnings of foreign subsidiaries | 143,800,000 | ||
Unrecognized tax benefits that would impact the effective tax rate | 4,300,000 | ||
Minimum | |||
Income Tax Disclosure [Line Items] | |||
Change in uncertain tax positions | 0 | ||
Maximum | |||
Income Tax Disclosure [Line Items] | |||
Change in uncertain tax positions | 900,000 | ||
Foreign | |||
Income Tax Disclosure [Line Items] | |||
Net operating loss | 1,600,000 | ||
Federal State And Foreign | |||
Income Tax Disclosure [Line Items] | |||
Deferred tax liability | $ 1,500,000 | ||
State | |||
Income Tax Disclosure [Line Items] | |||
Number of income tax audits pending | tax_audit | 0 | ||
IRELAND | |||
Income Tax Disclosure [Line Items] | |||
Gain (loss) on disposal | (3,700,000) | ||
Income (loss) from subsidiaries, tax expense (benefit) | 7,000,000 | ||
IRELAND | Europe | |||
Income Tax Disclosure [Line Items] | |||
Gain (loss) on disposal | 11,900,000 | ||
IRELAND | UNITED STATES | |||
Income Tax Disclosure [Line Items] | |||
Gain (loss) on disposal | $ (15,600,000) |
Income Taxes - Income Tax (Bene
Income Taxes - Income Tax (Benefit) Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current income tax expense: | |||
Federal | $ 32,922 | $ 25,225 | $ 29,733 |
State | 13,379 | 9,915 | 4,531 |
Foreign | 7,321 | 3,935 | 7,735 |
Current income tax expense: | 53,622 | 39,075 | 41,999 |
Deferred tax (benefit) expense: | |||
Federal | (4,727) | (188) | (36,794) |
State | (2,739) | (2,550) | 612 |
Foreign | (3,877) | (2,731) | (1,380) |
Deferred tax (benefit) expense: | (11,343) | (5,469) | (37,562) |
Income tax expense | $ 42,279 | $ 33,606 | $ 4,437 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Federal Statutory Rate to Effective Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | $ (3,700) | ||
Federal income tax expense computed at statutory rate | $ 46,760 | 40,233 | $ 56,490 |
State income tax expense—net of federal income tax | 8,522 | 6,466 | 2,881 |
Valuation allowance—net | 0 | 0 | (1,028) |
Intercompany interest | (5,213) | (8,367) | (5,074) |
Permanent differences and other—net | 1,940 | (1,417) | 1,041 |
Stock-based compensation | (10,990) | (9,446) | (22,757) |
Change in income tax rate | 0 | (548) | (32,844) |
Transition Tax | 0 | 0 | 11,027 |
Global Intangible Low-Taxed Income | 1,277 | 2,893 | 0 |
Change to uncertain tax positions—net | (1,931) | 1,657 | 614 |
Foreign rate differential | 1,914 | 2,135 | (5,913) |
Income tax expense | $ 42,279 | $ 33,606 | $ 4,437 |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Liability (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Reserve on assets | $ 259 | $ 554 |
Net operating loss carryforwards | 338 | 424 |
Liabilities not yet deductible | 10,949 | 31,641 |
Deferred revenue | 3,415 | 2,403 |
Stock-based compensation | 9,906 | 8,502 |
Operating lease liabilities | 190,537 | 0 |
Other | 4,693 | 3,591 |
Total deferred tax assets | 220,097 | 47,115 |
Deferred tax liabilities: | ||
Operating lease right-of-use assets | (169,117) | 0 |
Intangible assets | (86,064) | (93,180) |
Depreciation | (23,764) | (25,128) |
Total deferred tax liabilities | (278,945) | (118,308) |
Net deferred tax liability | $ (58,848) | $ (71,193) |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Beginning balance | $ 5,444 | $ 1,903 | $ 1,096 |
Additions for tax positions of prior years | 755 | 2,937 | 0 |
Additions for tax positions of current year | 0 | 684 | 650 |
Reductions for tax positions of prior years | (2,507) | 0 | 0 |
Effect of foreign currency adjustments | (80) | ||
Effect of foreign currency adjustments | 33 | 157 | |
Ending balance | $ 3,725 | $ 5,444 | $ 1,903 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | $ 24,900 | |
Term Loan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, carrying value | 1,045,438 | $ 1,056,188 |
Prepaid Expenses and Other Current Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 17,000 | |
Other Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 7,900 | |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | 1,050,000 | 1,010,000 |
Interest Rate Swap | Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | $ 2,900 | |
Derivative asset | $ 7,900 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Level 3 Fair Value Measurements (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Business Combination, Contingent Consideration, Liability [Roll Forward] | |
Beginning balance | $ 0 |
Ending balance | 13,870 |
Fair Value, Inputs, Level 3 | |
Business Combination, Contingent Consideration, Liability [Roll Forward] | |
Beginning balance | 1,930 |
Issuance of contingent consideration in connection with acquisitions | 13,870 |
Settlements of contingent consideration liabilities | (650) |
Changes in fair value | 557 |
Ending balance | 15,987 |
Fair Value, Inputs, Level 3 | Foreign Currency Gain (Loss) | |
Business Combination, Contingent Consideration, Liability [Roll Forward] | |
Foreign currency translation | $ 280 |
Stockholder's Equity and Stock-
Stockholder's Equity and Stock-Based Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | |||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | May 29, 2019 | Jun. 12, 2018 | Aug. 31, 2016 | Dec. 31, 2012 | |
Shareholders Equity And Share Based Payments [Line Items] | ||||||||
Preferred stock, issued (in shares) | 0 | 0 | ||||||
Number of preferred stock issuable by BOD (in shares) | 25,000,000 | 25,000,000 | ||||||
Preferred stock, outstanding (in shares) | 0 | 0 | ||||||
Shares authorized to be repurchased by BOD | $ 300,000,000 | $ 300,000,000 | ||||||
Remaining authorized repurchase amount | $ 227,100,000 | $ 34,900,000 | ||||||
Retirement of treasury stock | 0 | $ 0 | $ 0 | |||||
Stock-based compensation expense | 17,300,000 | 13,800,000 | 12,100,000 | |||||
Income tax benefit related to share based compensation | 4,500,000 | 3,600,000 | 3,200,000 | |||||
Fair value of options that vested | 7,800,000 | 5,500,000 | 6,800,000 | |||||
Proceeds from issuance of common stock upon exercise of options and restricted stock upon purchase | 21,800,000 | 18,500,000 | 22,600,000 | |||||
Tax benefit realized from exercise of stock options | 16,700,000 | 14,700,000 | 32,300,000 | |||||
Excess tax benefits from stock option exercises | 13,900,000 | 12,100,000 | 26,500,000 | |||||
Proceeds from issuance of restricted stock | $ 4,800,000 | 4,500,000 | 4,400,000 | |||||
2012 Omnibus Long-Term Incentive Plan | ||||||||
Shareholders Equity And Share Based Payments [Line Items] | ||||||||
Shares available for issuance (in shares) | 7,400,000 | 2,400,000 | 5,000,000 | |||||
Shares available for grant (in shares) | 2,900,000 | |||||||
Option expiration | 7 years | |||||||
Requisite service period | 5 years | |||||||
2008 Equity Incentive Plan | ||||||||
Shareholders Equity And Share Based Payments [Line Items] | ||||||||
Stock options, unrecognized compensation cost | $ 27,500,000 | |||||||
Requisite service period | 2 years | |||||||
Board of Directors Chairman | ||||||||
Shareholders Equity And Share Based Payments [Line Items] | ||||||||
Number of preferred stock issuable by BOD (in shares) | 25,000,000 | |||||||
Undesignated Preferred Stock | ||||||||
Shareholders Equity And Share Based Payments [Line Items] | ||||||||
Shares authorized (in shares) | 25,000,000 | |||||||
Restricted Stock | ||||||||
Shareholders Equity And Share Based Payments [Line Items] | ||||||||
Requisite service period | 2 years | |||||||
Award vesting period | 3 years | |||||||
Percentage of price of Common Stock that preferred shares sold for (percentage) | 50.00% | |||||||
Unrecognized compensation expense | $ 5,400,000 | |||||||
Fair value of restricted stock vested in period | $ 3,600,000 | $ 3,500,000 | $ 5,400,000 | |||||
Shares granted (in dollars per share) | $ 63.65 | |||||||
Restricted Stock | Common Stock | ||||||||
Shareholders Equity And Share Based Payments [Line Items] | ||||||||
Shares granted (in dollars per share) | $ 63.65 | $ 47.85 | $ 35.75 | |||||
Restricted Stock Units (RSUs) | ||||||||
Shareholders Equity And Share Based Payments [Line Items] | ||||||||
Award vesting period | 5 years | |||||||
Shares granted (in dollars per share) | $ 135.14 | |||||||
Restricted Stock Units (RSUs) | Common Stock | ||||||||
Shareholders Equity And Share Based Payments [Line Items] | ||||||||
Shares granted (in dollars per share) | $ 135.14 | $ 107.39 | $ 77.99 | |||||
Selling, General and Administrative Expenses | ||||||||
Shareholders Equity And Share Based Payments [Line Items] | ||||||||
Stock-based compensation expense | $ 15,800,000 | $ 13,100,000 | $ 11,600,000 | |||||
Selling, General and Administrative Expenses | Restricted Stock | ||||||||
Shareholders Equity And Share Based Payments [Line Items] | ||||||||
Stock-based compensation expense | 4,200,000 | 4,100,000 | 3,700,000 | |||||
Cost of Sales | ||||||||
Shareholders Equity And Share Based Payments [Line Items] | ||||||||
Stock-based compensation expense | $ 1,500,000 | $ 700,000 | $ 500,000 | |||||
Common Stock | ||||||||
Shareholders Equity And Share Based Payments [Line Items] | ||||||||
Retirement of treasury stock (in shares) | (211,401) | (1,212,436) | (1,968,415) | |||||
Retirement of treasury stock | $ (2,000) | $ (2,000) | ||||||
Options, exercises in period, intrinsic value | $ 54,400,000 | 46,300,000 | 66,600,000 | |||||
Treasury Stock, at Cost | ||||||||
Shareholders Equity And Share Based Payments [Line Items] | ||||||||
Retirement of treasury stock | $ (31,944,000) | $ (126,739,000) | $ (162,195,000) | |||||
Sponsor | Secondary Offering | ||||||||
Shareholders Equity And Share Based Payments [Line Items] | ||||||||
Shares repurchased (in shares) | 800,000 | 1,700,000 |
Stockholders' Equity and Stoc_3
Stockholders' Equity and Stock-Based Compensation - Weighted Average Assumptions for Fair Value of Stock Option (Detail) - Common Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield (percentage) | 0.00% | 0.00% | 0.00% |
Expected stock price volatility (percentage) | 20.00% | 26.00% | 30.00% |
Risk free interest rate (percentage) | 2.40% | 2.60% | 1.90% |
Expected life of options (years) | 5 years 1 month 6 days | 5 years 3 months 18 days | 5 years 3 months 18 days |
Weighted average fair value per share of options granted during the period (in dollars per share) | $ 29.16 | $ 28.62 | $ 22.08 |
Stockholders' Equity and Stoc_4
Stockholders' Equity and Stock-Based Compensation - Stock Option Activity Under Equity Plan (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Options | |||
Outstanding at beginning of period (in shares) | 2,416,205 | ||
Granted (in shares) | 818,587 | ||
Exercised (in shares) | (563,031) | ||
Forfeited (in shares) | (149,087) | ||
Outstanding at end of period (in shares) | 2,522,674 | 2,416,205 | |
Exercisable at end of period (in shares) | 695,396 | ||
Vested and expected to vest (in shares) | 2,370,813 | ||
Common Stock | |||
Equity [Line Items] | |||
Weighted Average Remaining Contractual Life in Years, stock options outstanding | 4 years 3 months 18 days | 4 years 1 month 6 days | |
Weighted Average Remaining Contractual Life in Years, exercisable stock options outstanding | 2 years 1 month 6 days | ||
Weighted Average Remaining Contractual Life in Years, stock options vested and expected to vest | 4 years 2 months 12 days | ||
Number of Options | |||
Exercised (in shares) | (684,974) | (771,480) | (1,481,785) |
Weighted Average Exercise Price | |||
Outstanding at beginning of period (in dollars per share) | $ 58.22 | ||
Granted (in dollars per share) | 125.61 | ||
Exercised (in dollars per share) | 38.70 | ||
Forfeited (in dollars per share) | 88.23 | ||
Outstanding at end of period (in dollars per share) | 82.65 | $ 58.22 | |
Exercisable at end of period (in dollars per share) | 37.45 | ||
Vested and expected to vest at end of period (in dollars per share) | $ 80.80 | ||
Aggregate Intrinsic Value (In millions) | |||
Outstanding at end of period | $ 170.9 | ||
Exercisable at end of period | 78.5 | ||
Vested and expected to vest at end of period | $ 165 |
Stockholder's Equity and Stoc_2
Stockholder's Equity and Stock-Based Compensation - Restricted Stock Activity (Details) - Restricted Stock - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Shares | |||
Nonvested restricted stock shares, beginning balance (in shares) | 330,089 | ||
Granted (in shares) | 74,911 | ||
Vested (in shares) | (111,670) | ||
Forfeited (in shares) | 0 | ||
Nonvested restricted stock shares, ending balance (in shares) | 293,330 | 330,089 | |
Weighted Average Grant Date Fair Value | |||
Nonvested restricted stock shares, beginning of period (in dollars per share) | $ 37.84 | ||
Granted (in dollars per share) | 63.65 | ||
Vested (in dollars per share) | 32.03 | ||
Forfeited (in dollars per share) | 0 | ||
Nonvested restricted stock shares, end of period (in dollars per share) | $ 46.64 | $ 37.84 | |
Aggregate intrinsic value of nonvested restricted stock shares, end of period | $ 30.7 | ||
Common Stock | |||
Weighted Average Grant Date Fair Value | |||
Granted (in dollars per share) | $ 63.65 | $ 47.85 | $ 35.75 |
Stockholders' Equity and Stoc_5
Stockholders' Equity and Stock-Based Compensation - Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Restricted stock units, beginning of period (in shares) | 47,593 | ||
Granted (in shares) | 8,327 | ||
Exercised (in shares) | (10,273) | ||
Forfeited (in shares) | 0 | ||
Restricted stock units, period end (in shares) | 45,647 | 47,593 | |
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Restricted stock units, beginning of period (in dollars per share) | $ 72.97 | ||
Vested (in dollars per share) | 54.41 | ||
Granted (in dollars per share) | 135.14 | ||
Forfeited (in dollars per share) | 0 | ||
Restricted stock units, period end (in dollars per share) | $ 88.48 | $ 72.97 | |
Fair value of restricted stock units | $ 6.9 | ||
Common Stock | |||
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Granted (in dollars per share) | $ 135.14 | $ 107.39 | $ 77.99 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Calculation Of Numerator And Denominator In Earnings Per Share [Line Items] | |||||||||||
Net income | $ 180,386 | $ 157,981 | $ 156,963 | ||||||||
Net Income (Loss) Available to Common Stockholders, Basic [Abstract] | |||||||||||
Allocation of net income to common stockholders: common stock | $ 47,532 | $ 41,055 | $ 49,088 | $ 41,845 | $ 46,391 | $ 33,409 | $ 40,196 | $ 37,100 | 179,520 | 157,096 | 155,995 |
Allocation of net income to common stockholders: Unvested participating shares | 866 | 885 | 968 | ||||||||
Net income (loss) available to common shareholders | $ 180,386 | $ 157,981 | $ 156,963 | ||||||||
Weighted average number of common shares: | |||||||||||
Common stock-basic (in shares) | 57,838,245 | 57,812,602 | 58,873,196 | ||||||||
Earnings (loss) per common share: | |||||||||||
Common stock-basic (in dollars per share) | $ 0.82 | $ 0.71 | $ 0.85 | $ 0.73 | $ 0.80 | $ 0.58 | $ 0.70 | $ 0.64 | $ 3.10 | $ 2.72 | $ 2.65 |
Common Stock | |||||||||||
Weighted average number of common shares: | |||||||||||
Common stock-basic (in shares) | 57,838,245 | 57,812,602 | 58,873,196 | ||||||||
Earnings (loss) per common share: | |||||||||||
Common stock-basic (in dollars per share) | $ 3.10 | $ 2.72 | $ 2.65 | ||||||||
Common Stock | Unvested Participating Shares | |||||||||||
Weighted average number of common shares: | |||||||||||
Common stock-basic (in shares) | 278,808 | 325,289 | 366,029 |
Earnings Per Share - Computat_2
Earnings Per Share - Computation of Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Diluted earnings per share: | |||||||||||
Earnings allocated to common stock | $ 47,532 | $ 41,055 | $ 49,088 | $ 41,845 | $ 46,391 | $ 33,409 | $ 40,196 | $ 37,100 | $ 179,520 | $ 157,096 | $ 155,995 |
Plus: earnings allocated to unvested participating shares | 866 | 885 | 968 | ||||||||
Less: adjusted earnings allocated to unvested participating shares | (850) | (867) | (947) | ||||||||
Earnings allocated to common stock | $ 179,536 | $ 157,114 | $ 156,016 | ||||||||
Weighted average common shares outstanding: | |||||||||||
Common stock (in shares) | 57,838,245 | 57,812,602 | 58,873,196 | ||||||||
Total weighted average number of common shares for diluted earnings per share (in shares) | 58,947,240 | 59,000,669 | 60,253,691 | ||||||||
Common stock-diluted (in dollars per share) | $ 0.81 | $ 0.69 | $ 0.83 | $ 0.71 | $ 0.79 | $ 0.57 | $ 0.68 | $ 0.62 | $ 3.05 | $ 2.66 | $ 2.59 |
Common Stock | |||||||||||
Weighted average common shares outstanding: | |||||||||||
Common stock (in shares) | 57,838,245 | 57,812,602 | 58,873,196 | ||||||||
Effect of dilutive securities (in shares) | 1,108,995 | 1,188,067 | 1,380,495 | ||||||||
Total weighted average number of common shares for diluted earnings per share (in shares) | 58,947,240 | 59,000,669 | 60,253,691 | ||||||||
Common stock-diluted (in dollars per share) | $ 3.05 | $ 2.66 | $ 2.59 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Common Stock | Employee Stock Option | |||
Earnings Per Share [Line Items] | |||
Options outstanding to purchase (in shares) | 0.4 | 0.5 | 0.6 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 779,477 | $ 749,060 |
Other comprehensive income (loss) before reclassifications—net of tax | 13,375 | (28,767) |
Amounts reclassified from accumulated other comprehensive income—net of tax | (1,351) | (292) |
Net current period other comprehensive income (loss) | 12,024 | (29,059) |
Ending balance | 971,268 | 779,477 |
Foreign currency translation adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (67,648) | (35,556) |
Net current period other comprehensive income (loss) | 19,813 | (32,092) |
Ending balance | (47,835) | (67,648) |
Unrealized gain (loss) on interest rate swaps | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 5,293 | 2,260 |
Amounts reclassified from accumulated other comprehensive income—net of tax | (1,351) | (292) |
Net current period other comprehensive income (loss) | (7,859) | 3,033 |
Ending balance | (2,566) | 5,293 |
Unrealized gain (loss) on investments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 0 | 0 |
Net current period other comprehensive income (loss) | 70 | 0 |
Ending balance | 70 | 0 |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (62,355) | (33,296) |
Ending balance | (50,331) | (62,355) |
Reclassification out of Accumulated Other Comprehensive Income | Foreign currency translation adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Other comprehensive income (loss) before reclassifications—net of tax | 19,813 | (32,092) |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized gain (loss) on interest rate swaps | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Other comprehensive income (loss) before reclassifications—net of tax | (6,508) | 3,325 |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized gain (loss) on investments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Other comprehensive income (loss) before reclassifications—net of tax | $ 70 | $ 0 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Consolidated Statement Of Income Classification (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest expense—net | $ (45,154) | $ (47,508) | $ (44,039) |
Income tax expense | (42,279) | (33,606) | (4,437) |
Net income | 180,386 | 157,981 | 156,963 |
Unrealized gain (loss) on interest rate swaps | Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest expense—net | 1,848 | 415 | (509) |
Income tax expense | (497) | (123) | 204 |
Net income | $ 1,351 | $ 292 | $ (305) |
Segment and Geographic Inform_3
Segment and Geographic Information - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)OperatingSegment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | OperatingSegment | 3 | ||
Long-lived assets | $ 636,153 | $ 597,141 | $ 575,185 |
United States | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 368,500 | 346,300 | 331,800 |
United Kingdom | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | $ 240,500 | $ 231,800 | $ 226,500 |
Segment and Geographic Inform_4
Segment and Geographic Information - Income from Operations by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 520,615 | $ 511,584 | $ 528,060 | $ 501,758 | $ 478,241 | $ 471,585 | $ 489,699 | $ 463,657 | $ 2,062,017 | $ 1,903,182 | $ 1,740,905 |
Income from operations | $ 67,447 | $ 62,629 | $ 74,833 | $ 62,910 | $ 63,727 | $ 55,460 | $ 64,624 | $ 55,284 | 267,819 | 239,095 | 205,439 |
Other expenses, debt Instrument amendment and acquisition related costs | 600 | ||||||||||
Full service center-based child care | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 1,684,006 | 1,586,323 | 1,457,754 | ||||||||
Other expenses, debt Instrument amendment and acquisition related costs | 200 | 1,900 | 3,300 | ||||||||
Back-Up Care Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Other expenses, debt Instrument amendment and acquisition related costs | 400 | ||||||||||
Operating Segments | Full service center-based child care | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 1,684,006 | 1,586,323 | 1,457,754 | ||||||||
Income from operations | 166,011 | 152,006 | 130,289 | ||||||||
Operating Segments | Back-up care | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 296,330 | 245,498 | 224,264 | ||||||||
Income from operations | 80,394 | 68,462 | 60,373 | ||||||||
Operating Segments | Educational advisory services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 81,681 | 71,361 | 58,887 | ||||||||
Income from operations | $ 21,414 | $ 18,627 | 14,777 | ||||||||
IRELAND | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gain (loss) on disposal | (3,700) | ||||||||||
IRELAND | Full service center-based child care | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gain (loss) on disposal | $ 3,700 |
Segment and Geographic Inform_5
Segment and Geographic Information - Revenue and Long-Lived Assets by Geographic Region (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | |||
Long-lived assets | $ 636,153 | $ 597,141 | $ 575,185 |
North America | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 369,851 | 347,715 | 333,526 |
Europe and other | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | $ 266,302 | $ 249,426 | $ 241,659 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Stock-based compensation expense | $ 17,300,000 | $ 13,800,000 | $ 12,100,000 |
401(k) Retirement Savings Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Retirement savings plan, age to be eligible | 20 years | ||
Retirement plan funding (percentage) | 75.00% | ||
Retirement plan employer matching contribution (percentage) | 25.00% | ||
Retirement plan maximum annual contribution per employee (percentage) | 8.00% | ||
Retirement plan Company contributions and administrative expenses | $ 3,400,000 | 3,400,000 | 3,000,000 |
Nonqualified Deferred Compensation Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Retirement plan funding (percentage) | 50.00% | ||
Retirement plan employer matching contribution (percentage) | 25.00% | ||
Retirement plan Company contributions and administrative expenses | $ 2,500 | ||
Maximum annual contribution percent, other forms of compensation (percentage) | 100.00% | ||
Minimum | 401(k) Retirement Savings Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Retirement savings plan, eligibility period | 60 days | ||
Fair Value, Measurements, Recurring | Life Insurance | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Financial instruments, owned, at fair value | $ 9,400,000 | 6,400,000 | |
Fair Value, Measurements, Recurring | Deferred Compensation, Share-based Payments | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Financial liabilities fair value disclosure | 10,000,000 | 6,700,000 | |
United Kingdom and Netherlands | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Stock-based compensation expense | $ 9,200,000 | $ 6,400,000 | $ 4,100,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Dec. 31, 2019USD ($)LetterOfCredit |
Commitments and Contingencies Disclosure [Abstract] | |
Number of letters of credit outstanding | LetterOfCredit | 54 |
Letters of credit to guarantee certain rent payments | $ | $ 2.1 |
Transactions with Related Par_2
Transactions with Related Parties - Additional Information (Detail) - Secondary Offering - shares shares in Millions | 12 Months Ended | 83 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Issuance of Class L common stock (in shares) | 4.6 | 8.2 | 52.3 |
Sponsor | |||
Related Party Transaction [Line Items] | |||
Shares repurchased (in shares) | 0.8 | 1.7 |
Quarterly Results (Unaudited) -
Quarterly Results (Unaudited) - Schedule of Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 520,615 | $ 511,584 | $ 528,060 | $ 501,758 | $ 478,241 | $ 471,585 | $ 489,699 | $ 463,657 | $ 2,062,017 | $ 1,903,182 | $ 1,740,905 |
Gross profit | 131,148 | 125,220 | 139,621 | 126,947 | 120,634 | 113,040 | 126,037 | 113,544 | 522,936 | 473,255 | 430,610 |
Income from operations | 67,447 | 62,629 | 74,833 | 62,910 | 63,727 | 55,460 | 64,624 | 55,284 | 267,819 | 239,095 | 205,439 |
Net income | 47,763 | 41,254 | 49,327 | 42,042 | 46,657 | 33,600 | 40,426 | 37,298 | 180,386 | 157,981 | 156,963 |
Allocation of net income to common stockholders: | |||||||||||
Allocation of net income to common stockholders: Common stock-basic | 47,532 | 41,055 | 49,088 | 41,845 | 46,391 | 33,409 | 40,196 | 37,100 | 179,520 | 157,096 | 155,995 |
Allocation of net income to common stockholders: Common stock-diluted | $ 47,535 | $ 41,059 | $ 49,093 | $ 41,849 | $ 46,397 | $ 33,413 | $ 40,200 | $ 37,104 | $ 179,536 | $ 157,114 | $ 156,016 |
Earnings per common share: | |||||||||||
Earnings per common share: Common stock-basic (in dollars per share) | $ 0.82 | $ 0.71 | $ 0.85 | $ 0.73 | $ 0.80 | $ 0.58 | $ 0.70 | $ 0.64 | $ 3.10 | $ 2.72 | $ 2.65 |
Earnings per common share: Common stock (in dollars per share) | $ 0.81 | $ 0.69 | $ 0.83 | $ 0.71 | $ 0.79 | $ 0.57 | $ 0.68 | $ 0.62 | $ 3.05 | $ 2.66 | $ 2.59 |
Uncategorized Items - bfam-1231
Label | Element | Value |
Restricted Cash and Investments, Noncurrent | us-gaap_RestrictedCashAndInvestmentsNoncurrent | $ 20,000,000 |
Restricted Cash and Investments, Noncurrent | us-gaap_RestrictedCashAndInvestmentsNoncurrent | 0 |
Restricted Cash and Investments, Noncurrent | us-gaap_RestrictedCashAndInvestmentsNoncurrent | $ 8,000,000 |