Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 11, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | BRIGHT HORIZONS FAMILY SOLUTIONS INC. | ||
Entity Central Index Key | 1437578 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 61,651,158 | ||
Entity Public Float | $1,343,495,212 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $87,886 | $29,585 |
Accounts receivable—net | 83,066 | 78,691 |
Prepaid expenses and other current assets | 39,147 | 44,021 |
Current deferred income taxes | 13,059 | 12,873 |
Total current assets | 223,158 | 165,170 |
Fixed assets—net | 398,947 | 390,894 |
Goodwill | 1,095,738 | 1,096,283 |
Other intangibles—net | 406,249 | 435,060 |
Deferred income taxes | 580 | 236 |
Other assets | 16,404 | 15,027 |
Total assets | 2,141,076 | 2,102,670 |
Current liabilities: | ||
Current portion of long-term debt | 9,550 | 7,900 |
Accounts payable and accrued expenses | 116,425 | 107,626 |
Deferred revenue | 133,048 | 119,260 |
Other current liabilities | 20,400 | 20,302 |
Total current liabilities | 279,423 | 255,088 |
Long-term debt | 911,627 | 756,323 |
Deferred rent and related obligations | 43,105 | 37,467 |
Other long-term liabilities | 23,401 | 19,006 |
Deferred revenue | 5,525 | 5,761 |
Deferred income taxes | 127,036 | 139,888 |
Total liabilities | 1,390,117 | 1,213,533 |
Commitments and contingencies (Note 14) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 25,000,000 shares authorized and no shares issued and outstanding at December 31, 2014 and 2013 | 0 | 0 |
Common stock, $0.001 par value; 475,000,000 shares authorized; 61,534,802 and 65,302,814 shares issued and outstanding at December 31, 2014 and 2013, respectively | 62 | 65 |
Additional paid-in capital | 1,083,091 | 1,270,198 |
Accumulated other comprehensive (loss) income | -21,687 | 1,416 |
Accumulated deficit | -310,507 | -382,542 |
Total stockholders’ equity | 750,959 | 889,137 |
Total liabilities and stockholders’ equity | $2,141,076 | $2,102,670 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, authorized | 25,000,000 | 25,000,000 |
Preferred stock, Issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, authorized | 475,000,000 | 475,000,000 |
Common stock, issued | 61,534,802 | 65,302,814 |
Common stock, outstanding | 61,534,802 | 65,302,814 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue | $1,352,999 | $1,218,776 | $1,070,938 |
Cost of services | 1,039,397 | 937,840 | 825,168 |
Gross profit | 313,602 | 280,936 | 245,770 |
Selling, general and administrative expenses | 137,683 | 141,827 | 123,373 |
Amortization of intangible assets | 28,999 | 30,075 | 26,933 |
Income from operations | 146,920 | 109,034 | 95,464 |
Loss on extinguishment of debt | 0 | -63,682 | 0 |
Interest income | 103 | 85 | 152 |
Interest expense | -34,709 | -40,626 | -83,864 |
Income before income taxes | 112,314 | 4,811 | 11,752 |
Income tax (expense) benefit | -40,279 | 7,533 | -3,243 |
Net income | 72,035 | 12,344 | 8,509 |
Net (loss) income attributable to non-controlling interest | 0 | -279 | 347 |
Net income attributable to Bright Horizons Family Solutions Inc. | 72,035 | 12,623 | 8,162 |
Accretion of Class L preference | 0 | 0 | 79,211 |
Accretion of Class L preference for vested options | 0 | 0 | 5,436 |
Net income (loss) available to common shareholders | 72,035 | 12,623 | -76,485 |
Net income (loss) available to common Class L shareholders - basic and diluted | 0 | 0 | 79,211 |
Net income (loss) available to common shareholders - basic | 71,755 | 12,623 | -76,485 |
Net income (loss) available to common shareholders - diluted | $71,761 | $12,623 | ($76,485) |
Earnings (loss) per share: | |||
Class L—basic and diluted (in dollars per share) | $0 | $0 | $59.73 |
Common stock-basic (in dollars per share) | $1.09 | $0.20 | ($12.62) |
Common stock-diluted (in dollars per share) | $1.07 | $0.20 | ($12.62) |
Weighted average number of common shares outstanding: | |||
Class L—basic and diluted (in shares) | 0 | 0 | 1,326,206 |
Common stock-basic (in shares) | 65,612,572 | 62,659,264 | 6,058,512 |
Common stock-diluted (in shares) | 67,244,172 | 64,509,036 | 6,058,512 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income | $72,035 | $12,344 | $8,509 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | -23,103 | 10,589 | 5,591 |
Total other comprehensive income (loss) | -23,103 | 10,589 | 5,591 |
Comprehensive income (loss) | 48,932 | 22,933 | 14,100 |
Less: Comprehensive income (loss) attributable to non-controlling interest | 0 | 78 | 593 |
Comprehensive income attributable to Bright Horizons Family Solutions Inc. | 48,932 | 22,855 | 13,507 |
Accretion of Class L preference | 0 | 0 | 79,211 |
Accretion of Class L preference for vested options | 0 | 0 | 5,436 |
Comprehensive income (loss) attributable to common shareholders | $48,932 | $22,855 | ($71,140) |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (Deficit) (USD $) | Total | Common Stock [Member] | Additional Paid In Capital [Member] | Treasury Stock, at Cost [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] |
In Thousands, except Share data, unless otherwise specified | ||||||
Balance at Dec. 31, 2011 | ($206,028) | $6 | $126,932 | ($125) | ($14,161) | ($318,680) |
Balance (shares) at Dec. 31, 2011 | 6,024,395 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 17,596 | 17,596 | ||||
Exercise of stock options | 440 | 440 | ||||
Exercise of stock options (shares) | 86,066 | |||||
Tax benefit from stock option exercises | 874 | 874 | ||||
Purchase of treasury stock | -497 | -497 | ||||
Acquisition of additional non-controlling interest | 4,162 | 4,868 | -706 | |||
Retirement of treasury stock | 0 | -622 | 622 | |||
Retirement of treasury stock (in shares) | -47,808 | |||||
Translation adjustments, net of non-controlling interest | 6,051 | 6,051 | ||||
Accretion of Class L preference | -84,647 | -84,647 | ||||
Net Income (Loss) Attributable to Parent | 8,162 | 8,162 | ||||
Balance at Dec. 31, 2012 | -253,887 | 6 | 150,088 | 0 | -8,816 | -395,165 |
Balance (shares) at Dec. 31, 2012 | 6,062,653 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Conversion of Class L common stock | 854,101 | 47 | 854,054 | |||
Conversion of Class L common stock (shares) | 46,708,466 | |||||
Initial public offering, net of offering costs of $20.6 million | 234,944 | 12 | 234,932 | |||
Initial public offering, net of offering costs of $20.6 million (shares) | 11,615,000 | |||||
Stock-based compensation | 10,692 | 10,692 | ||||
Exercise of stock options | 11,040 | 11,040 | ||||
Exercise of stock options (shares) | 916,695 | |||||
Tax benefit from stock option exercises | 5,101 | 5,101 | ||||
Acquisition of remaining non-controlling interest | 4,066 | 4,291 | -225 | |||
Translation adjustments, net of non-controlling interest | 10,457 | 10,457 | ||||
Accretion of Class L preference | 0 | |||||
Net Income (Loss) Attributable to Parent | 12,623 | 12,623 | ||||
Balance at Dec. 31, 2013 | 889,137 | 65 | 1,270,198 | 0 | 1,416 | -382,542 |
Balance (shares) at Dec. 31, 2013 | 65,302,814 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 7,922 | 7,922 | ||||
Exercise of stock options | 17,422 | 2 | 17,420 | |||
Exercise of stock options (shares) | 1,212,458 | |||||
Tax benefit from stock option exercises | 9,123 | 9,123 | ||||
Purchase of treasury stock | -221,577 | -221,577 | ||||
Retirement of treasury stock | 0 | -5 | -221,572 | 221,577 | ||
Retirement of treasury stock (in shares) | -4,980,470 | |||||
Translation adjustments, net of non-controlling interest | -23,103 | -23,103 | ||||
Accretion of Class L preference | 0 | |||||
Net Income (Loss) Attributable to Parent | 72,035 | 72,035 | ||||
Balance at Dec. 31, 2014 | $750,959 | $62 | $1,083,091 | $0 | ($21,687) | ($310,507) |
Balance (shares) at Dec. 31, 2014 | 61,534,802 |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Stockholders' Equity (Deficit) (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Initial Public offering, net of offering costs | $20,600,000 | ||
Translation adjustments, attributable to non-controlling interest | $357,000 | $246,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $72,035 | $12,344 | $8,509 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 77,447 | 72,808 | 61,348 |
Loss on extinguishment of debt | 0 | 63,682 | 0 |
Amortization of original issue discount and deferred financing costs | 3,052 | 2,763 | 6,783 |
Interest paid in kind | 0 | 2,143 | 23,754 |
Change in the fair value of the interest rate cap | 0 | 0 | 67 |
Non-cash revenue and other | -149 | -618 | -319 |
Impairment losses on long-lived assets | 206 | 765 | 694 |
Loss on disposal of fixed assets | 667 | 566 | 437 |
Stock-based compensation | 7,922 | 10,692 | 17,596 |
Deferred income taxes | -13,376 | -13,410 | -12,045 |
Deferred rent | 3,092 | 2,985 | 2,142 |
Changes in assets and liabilities: | |||
Accounts receivable | -4,604 | -11,458 | -1,580 |
Prepaid expenses and other current assets | 2,174 | -5,393 | -4,110 |
Income taxes | 3,505 | -13,386 | -218 |
Accounts payable and accrued expenses | 9,589 | 365 | 1,155 |
Deferred revenue | 14,259 | 22,350 | -1,694 |
Accrued rent and related obligations | 3,222 | 2,180 | 4,131 |
Other assets | -1,672 | 149 | -2,180 |
Other current and long-term liabilities | -3,072 | 10,152 | 2,512 |
Net cash provided by operating activities | 174,297 | 159,679 | 106,982 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of fixed assets | -66,194 | -69,509 | -69,086 |
Proceeds from the disposal of fixed assets | 385 | 189 | 21 |
Purchase of long-term investments | 0 | -2,000 | 0 |
Settlement of purchase price for prior year acquisitions | 1,030 | 0 | 0 |
Payments for acquisitions—net of cash acquired | -13,222 | -129,812 | -111,825 |
Net cash used in investing activities | -78,001 | -201,132 | -180,890 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Borrowings of long-term debt, net of issuance costs of $3.2 million in 2014, $20.6 million in 2013 and $2.7 million in 2012 | 161,803 | 769,360 | 82,321 |
Extinguishment of long-term debt | 0 | -972,468 | 0 |
Proceeds from initial public offering, net of issuance costs of $20.6 million | 0 | 234,944 | 0 |
Borrowings under revolving line of credit | 0 | 140,800 | 0 |
Payments of revolving line of credit | 0 | -140,800 | 0 |
Principal payments of long-term debt | -7,900 | -7,900 | -5,472 |
Purchase of non-controlling interest | 0 | -4,138 | 0 |
Purchase of treasury stock | -221,577 | 0 | -5,140 |
Proceeds from issuance of common stock and Class L common stock upon exercise of options | 17,422 | 11,040 | 2,115 |
Proceeds from issuance of restricted stock | 4,709 | 0 | 0 |
Tax benefit from stock-based compensation | 9,123 | 5,923 | 3,381 |
Net cash (used in) provided by financing activities | -36,420 | 36,761 | 77,205 |
Effect of exchange rates on cash and cash equivalents | -1,575 | 168 | 364 |
Net increase (decrease) in cash and cash equivalents | 58,301 | -4,524 | 3,661 |
Cash and cash equivalents-beginning of period | 29,585 | 34,109 | 30,448 |
Cash and cash equivalents-end of period | 87,886 | 29,585 | 34,109 |
SUPPLEMENTAL CASH FLOW INFORMATION: | |||
Cash payments of interest | 32,473 | 34,928 | 51,974 |
Cash payments of income taxes | 41,713 | 13,931 | 12,823 |
Non-cash accretion of Class L common stock preferred return | 0 | 0 | 84,647 |
Non-cash conversion of Class L common stock | 0 | 854,101 | 0 |
Fixed asset purchases recorded in accounts payable and accrued expenses | $3,000 | $0 | $0 |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Cash Flows [Abstract] | |||
Borrowings of long-term debt, deferred financing costs and original issuance discount | $3.20 | $20.60 | $2.70 |
Initial public offering, net of issuance costs | $20.60 | $1.60 |
Organization_and_Significant_A
Organization and Significant Accounting Policies | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Organization and Significant Accounting Policies | ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
Organization—Bright Horizons Family Solutions Inc. (“Bright Horizons” or the “Company”) provides workplace services for employers and families throughout the United States and the United Kingdom, and also in Puerto Rico, Canada, Ireland, the Netherlands, and India. Workplace services include center-based child care, education and enrichment programs, elementary school education, back-up dependent care (for children and elders), before and after school care, college preparation and admissions counseling, tuition reimbursement program administration, and other family support services. | ||||||||||||
The Company provides its center-based child care services under two general business models: a profit and loss (“P&L”) model, where the Company assumes the financial risk of operating a child care center; and 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. The P&L model is further classified into two subcategories: (i) a sponsor model, where Bright Horizons provides child care and early education services on either an exclusive or priority enrollment basis for the employees of a specific employer sponsor; and (ii) a lease/consortium model, where the Company provides child care and early education services to the employees of multiple employers located within a specific real estate development (for example, an office building or office park), as well as to families in the surrounding community. In both our 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 each model type, 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 also provides back-up dependent care services through our own centers and through our Back-Up Care Advantage (“BUCA”) program, which offers access to a contracted network of in-home care agencies and center-based providers in locations where we do not otherwise have centers with available capacity. | ||||||||||||
Basis of Presentation—Bright Horizons was acquired by investment funds affiliated with Bain Capital Partners LLC ("the Sponsor") as a result of a transaction in 2008 (the “Merger”), pursuant to which a wholly owned merger subsidiary was merged with and into Bright Horizons Family Solutions, Inc. (the “Predecessor”). As part of the transaction, a new basis of accounting was established and the purchase price was allocated to the assets acquired and liabilities assumed based on their fair values. In July 2012, Bright Horizons Family Solutions Inc. changed its name from Bright Horizons Solutions Corp. | ||||||||||||
Public Offering—On January 30, 2013, the Company completed an initial public offering (“the Offering”) and, after the exercise of the underwriters’ overallotment option on February 21, 2013, issued a total of 11.6 million shares of common stock in exchange for $233.3 million, net of offering costs including $1.6 million expensed in 2012. The Company used the proceeds of the Offering, as well as certain amounts from the 2013 refinancing discussed below, to repay the principal and accumulated interest under its senior notes outstanding on January 30, 2013. | ||||||||||||
On January 11, 2013, the Company converted each share of its Class L common stock into 35.1955 shares of Class A common stock, and, immediately following the conversion of its Class L common stock, reclassified the Class A common stock into common stock, for which 475 million shares were authorized. The Company also authorized 25 million shares of undesignated preferred stock for issuance. | ||||||||||||
On June 19, 2013, March 25, 2014, and December 10, 2014 certain of the Company’s shareholders affiliated with the Sponsor completed the sale of 9.8 million, 7.9 million and 8.0 million shares, respectively, of the Company’s common stock in secondary offerings (“secondary offerings”). The Company did not receive proceeds from the sale of shares in the secondary offerings. The Company incurred $1.0 million and $0.6 million in the years ended December 31, 2014 and 2013, respectively, in offering costs related to the secondary offerings, which are included in selling, general and administrative expenses. The Company purchased 4.5 million of the shares sold in the December 10, 2014 secondary offering for $201.6 million. | ||||||||||||
Reclassifications—The Company has revised the presentation for prior periods within the consolidated statements of cash flows to conform to the current period presentation. The Company has separately classified the non-cash effect of deferred rent which was previously combined with the change in accrued rent and related obligations for all periods presented. The revision had no impact to net cash provided by (used in) operating, investing, or financing activities. | ||||||||||||
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 accounting principles generally accepted in the United States of America 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 operations. The net gains and losses recorded in the consolidated statements of operations for the years ended December 31, 2014, 2013 and 2012 were not significant. | ||||||||||||
Fair Value of Financial Instruments—The Company defines fair value as the price that would be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants at the measurement date and applies the following fair value 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 (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The Company uses observable inputs where relevant and whenever possible. | ||||||||||||
Level 1—Quoted prices are available in active markets for identical investments as of the reporting date. | ||||||||||||
Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. | ||||||||||||
Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. | ||||||||||||
The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable and long-term debt. The fair value of the Company’s financial instruments, other than long-term debt, approximates their carrying value. As of December 31, 2014, the Company’s long-term debt had a carrying value of $939.2 million and a fair value of $921.6 million based on quoted market prices for similar instruments and a model that considers observable inputs (level 2 inputs). As of December 31, 2013, the Company’s long-term debt had a carrying value of $782.1 million and a fair value of $784.1 million based on quoted market prices for similar instruments and a model that considers observable inputs (level 2 inputs). | ||||||||||||
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 risk exists at December 31, 2014 and 2013. | ||||||||||||
Cash and Cash Equivalents—The Company considers all highly liquid investments with maturities, when purchased, of three months or less to be cash equivalents. Cash equivalents consist primarily of institutional money market accounts. There were no cash equivalent investments at December 31, 2014 and 2013. | ||||||||||||
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 no book overdrafts at December 31, 2014 and 2013. | ||||||||||||
Accounts Receivable—The Company generates accounts receivable from fees charged to parents and employer sponsors and, to a lesser degree, government agencies. 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 this allowance for doubtful accounts. | ||||||||||||
Activity in the allowance for doubtful accounts is as follows (in thousands): | ||||||||||||
Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Beginning balance | $ | 1,173 | $ | 1,627 | $ | 1,514 | ||||||
Provision | 551 | 437 | 734 | |||||||||
Write offs and recoveries | (489 | ) | (891 | ) | (621 | ) | ||||||
Ending balance | $ | 1,235 | $ | 1,173 | $ | 1,627 | ||||||
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 statements of operations. 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 at fair value. Acquisition costs are expensed as incurred and recorded in selling, general and administrative expenses; restructuring 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. The accounting for business combinations requires estimates and judgment as to expectations for future cash flows of the acquired business, the allocation of those cash flows to identifiable intangible assets, and in determining the estimated fair value for assets acquired and liabilities assumed. The fair values assigned to tangible and intangible assets acquired and liabilities assumed are 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 the actual results differ from these estimates, the amounts recorded in the financial statements could result in a possible impairment of the intangible assets and goodwill, or require acceleration of the amortization expense of finite-lived intangible assets. | ||||||||||||
Goodwill and Intangible Assets—Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. The Company’s intangible assets principally consist of various customer 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. The first step of the goodwill impairment test 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 second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The second step of the goodwill impairment test, used to measure the amount of impairment loss, compares the implied fair value of the affected reporting unit’s goodwill with the carrying value of that goodwill. | ||||||||||||
During the fourth quarter of fiscal 2014, the Company changed its annual goodwill impairment testing date from December 31 to October 1 of each year, which did not result in any delay, acceleration or avoidance of impairment. The Company believes this change is preferable because it more closely aligns the date of the annual goodwill impairment test with the timing of the Company’s annual strategic planning process. This change was applied prospectively beginning on October 1, 2014; retrospective application to prior periods is impracticable as the Company is unable to objectively determine, without the use of hindsight, the assumptions that would have been used in those earlier periods to estimate fair value. In connection with this change, the Company performed an impairment assessment as of October 1, 2014 and concluded that there was no impairment. No goodwill impairment losses were recorded in the years ended December 31, 2014, 2013, or 2012. | ||||||||||||
We test certain trademarks that are included in our 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 by applying a royalty rate determined by an analysis of empirical, market-derived royalty rates for guideline intangible assets, consistent with the initial valuation and then comparing the estimated fair value of our trademarks with the carrying value. This approach takes into effect level 3 and unobservable inputs. No impairment losses were recorded in the years ended December 31, 2014 and 2013 in relation to intangible assets. Impairment losses of $0.4 million were recorded in the year ended December 31, 2012 in relation to certain trade names with indefinite lives in the other educational advisory services segment, which have been included in selling, general and administrative expenses. | ||||||||||||
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 one to seventeen years. Intangible assets related to parent relationships are amortized using the double declining balance 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. Fair value can be determined using discounted cash flows and quoted market prices based on level 3 inputs. The Company recorded fixed asset impairment losses of $0.2 million, $0.8 million, and $0.3 million in the years ended December 31, 2014, 2013 and 2012, respectively, which have been included in cost of services. | ||||||||||||
Other Long Term Assets—Other long term assets includes a cost basis investment of $2.0 million in a private company, which we review for impairment whenever events or changes in circumstances indicate that the carrying amount of such asset may not be recoverable. | ||||||||||||
Deferred Revenue—The Company records deferred revenue for prepaid tuition and management fees and amounts received from consulting projects in advance of services being performed. The Company is also a party to agreements where the performance of services extends beyond one year. In these circumstances, the Company records a long-term obligation and recognizes revenue over the period of the agreement as the services are rendered. | ||||||||||||
Leases and Deferred Rent—The Company leases space for certain of its centers and corporate offices. Leases are evaluated and classified as operating or capital for financial reporting purposes. The Company recognizes rent expense from operating leases with periods of free rent, tenant allowances and scheduled rent increases on a straight-line basis over the applicable lease term. The difference between rents paid and straight-line rent expense is recorded as deferred rent. | ||||||||||||
Discount on Long-Term Debt—Original issue discounts on the Company’s debt 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 statements of operations. | ||||||||||||
Deferred Financing Costs—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 of this expense is included in interest expense in the consolidated statements of operations. | ||||||||||||
Other Long-Term Liabilities—Other long-term liabilities consist primarily of amounts payable to clients, pursuant to terms of operating agreements or for deposits held by the Company, and obligations for uncertain tax positions. | ||||||||||||
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 Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. | ||||||||||||
Non-controlling Interest—The Company recorded the redeemable non-controlling ownership interest of a company in the Netherlands at fair value at the date of its initial acquisition. The difference between the acquisition price and carrying value of the redeemable non-controlling interest of any additional interest acquired was recorded as an adjustment to additional paid in capital. Any accumulated other comprehensive income or loss associated with the additional acquired interest was recorded as other comprehensive income or loss of the Company. | ||||||||||||
In connection with the initial acquisition, the Company entered into put and call option agreements with the minority shareholders for the purchase of the non-controlling interest based on a contractually determined formula. As a result of the option agreements, the non-controlling interest was considered redeemable and was classified as temporary equity on the Company’s consolidated balance sheet. At December 31, 2013 and as further discussed in Note 10, “Redeemable Non-controlling Interest”, the Company had acquired 100% of the interest in the company. | ||||||||||||
Revenue Recognition—The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the fee is fixed and determinable, and collectability is reasonably assured. | ||||||||||||
Center-based care revenues consist primarily of tuition, which consists of amounts paid by parents, supplemented in some cases by payments from employer sponsors and, to a lesser extent, by payments from government agencies. Revenue may also include management fees, operating subsidies paid either in lieu of or to supplement parent tuition, and fees for other services. Revenue for center-based care is recognized as the services are performed. | ||||||||||||
The Company enters into contracts with its employer sponsors to manage and operate their child care and early education centers and/or for the provision of back-up dependent care and other educational advisory services under various terms. The Company’s contracts to operate child care and early education centers are generally three to ten years in length with varying renewal options. The Company’s contracts for back-up dependent care and other educational advisory services are generally one to three years in length with varying renewal options. Revenue for these services is recognized as they are performed. | ||||||||||||
Common Stock Valuation and 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. | ||||||||||||
Comprehensive Income or Loss—Comprehensive income or loss is comprised of net income or loss and foreign currency translation adjustments. The Company does not provide for U.S. income taxes on the portion of undistributed earnings of foreign subsidiaries that are intended to be permanently reinvested. Therefore, taxes are not provided for the related currency translation adjustments. | ||||||||||||
Earnings or Loss Per Share—Net earnings or loss per share is calculated using the two-class method, which is an earnings allocation formula that determines net income or loss per share for the holders of the Company’s common stock, unvested participating shares and, prior to the completion of the Offering, the holders of Class L common stock. The Class L shares contained participation rights in any dividend paid by the Company or upon liquidation of the Company and were entitled to a minimum preferred return of 10% per annum, compounded quarterly. Unvested participating shares are unvested share-based payment awards of restricted stock that participate in dividends with common stock. Net income available to common shareholders includes the effects of any Class L preference amounts for the periods these were outstanding. Net income available to shareholders is allocated on a pro rata basis to each share as if all of the earnings for the period had been distributed. Diluted net income or loss per share is calculated using the more dilutive of (1) the treasury stock method, or (2) the two-class method for all outstanding stock options and the as-converted method for the Class L shares. | ||||||||||||
New Accounting Pronouncement—In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers, which provides guidance for revenue recognition. The standard's core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today's guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration included in the transaction price and allocating the transaction price to each separate performance obligation. The guidance is effective for annual reporting periods beginning on or after December 15, 2016, and interim periods within those annual periods. Early adoption is not permitted. The Company is currently in the process of evaluating the impact of adoption of this ASU on the Company's consolidated financial statements. |
Acquisitions
Acquisitions | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Business Combinations [Abstract] | ||||||||||||
Acquisitions | ACQUISITIONS | |||||||||||
As part of the Company’s growth strategy to expand through strategic and synergistic acquisitions, the Company has made the following acquisitions in the years ended December 31, 2014, 2013, and 2012. 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 the assembled workforce acquired. | ||||||||||||
2014 Acquisitions | ||||||||||||
During the year ended December 31, 2014, the Company acquired two businesses that operate five centers in the United States for cash consideration of $13.2 million, which were accounted for as business combinations. The Company recorded goodwill of $11.1 million related to the full service center-based care segment, which will be deductible for tax purposes. Intangible assets of $2.1 million, consisting primarily of customer relationships, fixed assets of $0.9 million, and a working capital deficit of $0.9 million were also recorded 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 the Company gathers additional information regarding the assets acquired and the liabilities assumed. | ||||||||||||
2013 Acquisitions | ||||||||||||
Children’s Choice Learning Centers, Inc. | ||||||||||||
On July 22, 2013, the Company acquired all of the outstanding shares of Children’s Choice Learning Centers, Inc., an operator of 49 employer-sponsored child care centers throughout the United States, for cash consideration of $50.8 million, inclusive of certain adjustments. The purchase price was financed with available cash on hand and funds available under the Company’s revolving credit facility, which were repaid in the fourth quarter of 2013. The Company incurred deal costs of approximately $1.7 million for this transaction in 2013, which are included in selling, general and administrative expenses. | ||||||||||||
The purchase price for this acquisition has been allocated based on estimates of the fair values of the acquired assets and assumed liabilities at the date of acquisition as follows (in thousands): | ||||||||||||
At acquisition date | Measurement | At acquisition date | ||||||||||
As reported | period adjustments | As reported | ||||||||||
September 30, 2013 | September 30, 2014 | |||||||||||
Accounts receivable | $ | 981 | $ | (126 | ) | $ | 855 | |||||
Prepaid expenses and other assets | 334 | 411 | 745 | |||||||||
Fixed assets | 5,637 | 535 | 6,172 | |||||||||
Intangible assets | 12,800 | (1,190 | ) | 11,610 | ||||||||
Goodwill | 38,818 | (1,086 | ) | 37,732 | ||||||||
Total assets acquired | 58,570 | (1,456 | ) | 57,114 | ||||||||
Accounts payable and accrued expenses | (3,441 | ) | (2,018 | ) | (5,459 | ) | ||||||
Deferred revenue and parent deposits | (885 | ) | 18 | (867 | ) | |||||||
Total liabilities assumed | (4,326 | ) | (2,000 | ) | (6,326 | ) | ||||||
Purchase price | $ | 54,244 | $ | (3,456 | ) | $ | 50,788 | |||||
The Company recorded adjustments to the purchase accounting during the measurement period including an adjustment for the final settlement of working capital which reduced goodwill by $3.5 million. This reduction to goodwill was offset by an increase of $1.2 million for taxes payable recorded during the third quarter of 2014. No changes have been made to the purchase accounting from the balances reported as of September 30, 2014. The Company received cash proceeds of $3.5 million related to working capital settlements for this acquisition, of which $0.9 million was received in 2014 . | ||||||||||||
The Company recorded goodwill of $37.7 million, which will be deductible for tax purposes as permitted under federal tax rules. Goodwill related to this acquisition is reported within the full service center-based care segment. | ||||||||||||
Intangible assets consist primarily of $11.3 million of customer relationships that will be amortized over approximately eleven years. | ||||||||||||
Kidsunlimited Group Limited | ||||||||||||
On April 10, 2013, the Company entered into a share purchase agreement with Lloyds Development Capital (Holdings) Limited and Kidsunlimited Group Limited pursuant to which it acquired 100% of Kidsunlimited, an operator of 64 nurseries throughout the United Kingdom, for cash consideration of $68.9 million, inclusive of certain adjustments. The purchase price was financed with available cash on hand. The Company incurred deal costs of approximately $1.9 million for this transaction in 2013, which are included in selling, general and administrative expenses. | ||||||||||||
The purchase price for this acquisition has been allocated based on estimates of the fair values of the acquired assets and assumed liabilities at the date of acquisition as follows (in thousands): | ||||||||||||
At acquisition date | Measurement | At acquisition date | ||||||||||
As reported | period | As reported | ||||||||||
June 30, 2013 | adjustments | March 31, 2014 | ||||||||||
Cash | $ | 4,888 | $ | — | $ | 4,888 | ||||||
Accounts receivable | 1,809 | — | 1,809 | |||||||||
Prepaid expenses and other assets | 2,509 | — | 2,509 | |||||||||
Fixed assets | 13,901 | (192 | ) | 13,709 | ||||||||
Favorable leases | — | 2,892 | 2,892 | |||||||||
Intangible assets | 17,442 | 765 | 18,207 | |||||||||
Goodwill | 55,349 | (2,372 | ) | 52,977 | ||||||||
Total assets acquired | 95,898 | 1,093 | 96,991 | |||||||||
Accounts payable and accrued expenses | (9,450 | ) | 3,798 | (5,652 | ) | |||||||
Unfavorable leases | (1,759 | ) | (5,325 | ) | (7,084 | ) | ||||||
Deferred revenue | (12,853 | ) | 8,378 | (4,475 | ) | |||||||
Other current liabilities | — | (8,378 | ) | (8,378 | ) | |||||||
Deferred taxes | (2,735 | ) | 245 | (2,490 | ) | |||||||
Total liabilities assumed | (26,797 | ) | (1,282 | ) | (28,079 | ) | ||||||
Purchase price | $ | 69,101 | $ | (189 | ) | $ | 68,912 | |||||
No changes have been made to the purchase accounting from the balances reported as of March 31, 2014. | ||||||||||||
The Company recorded goodwill of $53.0 million, which will not be deductible for tax purposes. Goodwill related to this acquisition is reported within the full service center-based care segment. | ||||||||||||
Intangible assets consist primarily of $15.9 million of customer relationships that will be amortized over approximately eight years. A deferred tax liability of $4.0 million was recorded related to the intangible assets for which the amortization is not deductible for tax purposes. | ||||||||||||
Other 2013 Acquisitions | ||||||||||||
During the year ended December 31, 2013, the Company also acquired two businesses for aggregate cash consideration of $6.9 million, net of cash acquired of $2.7 million. The Company recorded goodwill of $4.5 million, of which $3.2 million relates to the other educational advisory services segment and $1.3 million relates to the full service center-based care segment. Goodwill will not be deductible for tax purposes. Intangible assets of $3.3 million, consisting of customer relationships and trade names, fixed assets of $1.9 million, and working capital of $1.3 million were also recorded in relation to these acquisitions. The Company received cash proceeds of $0.1 million in 2014 related to working capital settlements for one of these acquisitions. | ||||||||||||
Pro Forma Information | ||||||||||||
The operating results for each of the acquisitions are included in the consolidated results of operations from the respective dates of acquisition. The following table presents consolidated pro forma information as if the acquisitions of Children’s Choice Learning Centers, Inc. and Kidsunlimited had occurred on January 1, 2012 (in thousands): | ||||||||||||
Pro forma (Unaudited) | ||||||||||||
Years ended December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Revenue | $ | 1,260,453 | $ | 1,179,168 | ||||||||
Net income attributable to Bright Horizons Family Solutions Inc. | $ | 16,226 | $ | 4,504 | ||||||||
The unaudited pro forma results reflect certain adjustments related to the acquisitions, such as increased amortization expense related to the acquired intangible assets. The pro forma results for the year ended December 31, 2012 include nonrecurring deal costs that were incurred by the Company and the acquired businesses in relation to the respective acquisitions, totaling $6.2 million, which were excluded from the pro forma results for the year ended December 31, 2013. | ||||||||||||
These acquired businesses contributed total revenues of $71.6 million in the year ended December 31, 2013. The Company has also determined that the presentation of net income for each of those acquisitions, from the date of acquisition, is impracticable due to the integration of the operations upon acquisition. | ||||||||||||
2012 Acquisitions | ||||||||||||
In May 2012, the Company acquired all of the outstanding shares of Huntyard Limited, a company that operated 27 child care and early education centers in the United Kingdom under the name Casterbridge Early Care and Education, for cash consideration of $110.8 million. The Company recorded goodwill of $48.7 million, which is reported within the full service center-based care segment and will not be deductible for tax purposes, and intangible assets of $6.0 million, which consist primarily of $4.7 million of customer relationships that will be amortized over five years. The Company also acquired $3.7 million in cash, $65.8 million in fixed assets, $7.5 million in accrued expenses, $3.0 million in deferred revenue and parent deposits, and $5.6 million in deferred tax liabilities. The deferred tax liabilities include $1.5 million that was recorded related to the intangible assets for which the amortization is not deductible for tax purposes. The Company incurred deal costs of $0.5 million related to this acquisition, which are included in selling, general and administrative expenses in 2012. Huntyard contributed total revenues of $26.3 million in the year ended December 31, 2012. |
Prepaid_Expenses_and_Other_Cur
Prepaid Expenses and Other Current Assets | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||
Prepaid Expenses and Other Current Assets | PREPAID EXPENSES AND OTHER CURRENT ASSETS | |||||||
Prepaid expenses and other current assets consist of the following (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Prepaid workers compensation insurance | $ | 11,092 | $ | 10,327 | ||||
Prepaid rent and other occupancy costs | 10,672 | 7,515 | ||||||
Prepaid income taxes | 4,427 | 6,678 | ||||||
Reimbursable costs | 2,784 | 3,916 | ||||||
Favorable leases | 487 | 586 | ||||||
Prepaid insurance | 1,917 | 1,665 | ||||||
Other prepaid expenses and current assets | 7,768 | 13,334 | ||||||
$ | 39,147 | $ | 44,021 | |||||
Under the terms of the Company’s workers compensation policy, the Company is required to make advances to its insurance carrier pertaining to estimated claims for all open plan years. |
Fixed_Assets
Fixed Assets | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||
Fixed Assets | FIXED ASSETS | |||||||||
Fixed assets consist of the following (dollars in thousands): | ||||||||||
Estimated useful lives | December 31, | |||||||||
2014 | 2013 | |||||||||
(Years) | ||||||||||
Buildings | 20 – 40 | $ | 131,767 | $ | 128,715 | |||||
Furniture, equipment and software | 3 – 10 | 144,040 | 125,713 | |||||||
Leasehold improvements | Shorter of the lease term | 271,757 | 247,972 | |||||||
or the estimated useful life | ||||||||||
Land | — | 50,604 | 52,233 | |||||||
Total fixed assets | 598,168 | 554,633 | ||||||||
Accumulated depreciation | (199,221 | ) | (163,739 | ) | ||||||
Fixed assets, net | $ | 398,947 | $ | 390,894 | ||||||
The Company recorded depreciation expense of $48.4 million, $42.7 million and $34.4 million for the years ended December 31, 2014, 2013, and 2012, respectively. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS | |||||||||||||||
The changes in the carrying amount of goodwill are as follows (in thousands): | ||||||||||||||||
Full service | Back-up | Other | Total | |||||||||||||
center-based | dependent | educational | ||||||||||||||
care | care | advisory | ||||||||||||||
services | ||||||||||||||||
Beginning balance at December 31, 2013 | $ | 912,134 | $ | 160,145 | $ | 24,004 | $ | 1,096,283 | ||||||||
Additions from acquisitions | 11,087 | — | — | 11,087 | ||||||||||||
Adjustments to prior year acquisitions | 902 | — | (203 | ) | 699 | |||||||||||
Effect of foreign currency translation | (11,080 | ) | (1,251 | ) | — | (12,331 | ) | |||||||||
Balance at December 31, 2014 | $ | 913,043 | $ | 158,894 | $ | 23,801 | $ | 1,095,738 | ||||||||
The Company also has intangible assets, which consist of the following at December 31, 2014 and 2013 (in thousands): | ||||||||||||||||
Weighted average | Cost | Accumulated | Net carrying | |||||||||||||
amortization period | amortization | amount | ||||||||||||||
December 31, 2014: | ||||||||||||||||
Definite-lived intangibles: | ||||||||||||||||
Customer relationships | 14.5 years | $ | 400,097 | $ | (180,900 | ) | $ | 219,197 | ||||||||
Trade names | 8.1 years | 5,772 | (2,177 | ) | 3,595 | |||||||||||
Non-compete agreements | 5 years | 54 | (44 | ) | 10 | |||||||||||
405,923 | (183,121 | ) | 222,802 | |||||||||||||
Indefinite-lived intangibles: | ||||||||||||||||
Trade names | N/A | 183,447 | — | 183,447 | ||||||||||||
$ | 589,370 | $ | (183,121 | ) | $ | 406,249 | ||||||||||
Weighted average | Cost | Accumulated | Net carrying | |||||||||||||
amortization period | amortization | amount | ||||||||||||||
December 31, 2013: | ||||||||||||||||
Definite-lived intangibles: | ||||||||||||||||
Customer relationships | 14.5 years | $ | 400,481 | $ | (153,939 | ) | $ | 246,542 | ||||||||
Trade names | 8.1 years | 6,072 | (1,542 | ) | 4,530 | |||||||||||
Non-compete agreements | 5 years | 54 | (39 | ) | 15 | |||||||||||
406,607 | (155,520 | ) | 251,087 | |||||||||||||
Indefinite-lived intangibles: | ||||||||||||||||
Trade names | N/A | 183,973 | — | 183,973 | ||||||||||||
$ | 590,580 | $ | (155,520 | ) | $ | 435,060 | ||||||||||
On an annual basis or if an indicator of impairment exists, indefinite lived trade names are subject to an evaluation of the remaining useful life to determine whether events and circumstances continue to support an indefinite useful life, as well as testing for impairment. | ||||||||||||||||
The Company recorded amortization expense of $29.0 million, $30.1 million and $26.9 million in the years ended December 31, 2014, 2013, and 2012, respectively. | ||||||||||||||||
The Company estimates that it will record amortization expense related to intangible assets existing as of December 31, 2014 as follows over the next five years (in thousands): | ||||||||||||||||
Estimated | ||||||||||||||||
amortization | ||||||||||||||||
expense | ||||||||||||||||
2015 | $ | 26,842 | ||||||||||||||
2016 | $ | 25,491 | ||||||||||||||
2017 | $ | 24,618 | ||||||||||||||
2018 | $ | 23,700 | ||||||||||||||
2019 | $ | 22,910 | ||||||||||||||
Accounts_Payable_and_Accrued_E
Accounts Payable and Accrued Expenses | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Accounts Payable and Accrued Expenses | ACCOUNTS PAYABLE AND ACCRUED EXPENSES | |||||||
Accounts payable and accrued expenses consist of the following (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Accounts payable | $ | 12,784 | $ | 6,691 | ||||
Accrued payroll and employee benefits | 59,364 | 58,171 | ||||||
Accrued insurance | 16,154 | 15,110 | ||||||
Accrued interest | 1,004 | 1,861 | ||||||
Accrued occupancy costs | 3,121 | 2,167 | ||||||
Accrued professional fees | 2,169 | 1,847 | ||||||
Other accrued expenses | 21,829 | 21,779 | ||||||
$ | 116,425 | $ | 107,626 | |||||
Other_Current_Liabilities
Other Current Liabilities | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Other Current Liabilities | OTHER CURRENT LIABILITIES | |||||||
Other current liabilities consist of the following (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Customer amounts on deposit | $ | 10,477 | $ | 15,495 | ||||
Deferred rent and other occupancy costs | 2,847 | 2,133 | ||||||
Unfavorable leases | 658 | 681 | ||||||
Income taxes payable | 4,802 | — | ||||||
Other liabilities | 1,616 | 1,993 | ||||||
$ | 20,400 | $ | 20,302 | |||||
Other_LongTerm_Liabilities
Other Long-Term Liabilities | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Other Long-Term Liabilities | OTHER LONG-TERM LIABILITIES | |||||||
Other long-term liabilities consist of the following (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Customer amounts on deposit | $ | 9,199 | $ | 8,685 | ||||
Liability for uncertain tax positions | 1,594 | 3,647 | ||||||
Liability for unvested restricted stock | 4,709 | — | ||||||
Other liabilities | 7,899 | 6,674 | ||||||
$ | 23,401 | $ | 19,006 | |||||
Credit_Arrangements_and_Debt_O
Credit Arrangements and Debt Obligations | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Credit Arrangements and Debt Obligations | CREDIT ARRANGEMENTS AND DEBT OBLIGATIONS | |||||||
Long-term debt consists of the following (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Term loans | $ | 939,200 | $ | 782,100 | ||||
Original issue discount and deferred financing costs | (18,023 | ) | (17,877 | ) | ||||
Total debt | 921,177 | 764,223 | ||||||
Less current maturities | 9,550 | 7,900 | ||||||
Long-term debt | $ | 911,627 | $ | 756,323 | ||||
Senior Credit Facilities | ||||||||
The Company’s senior secured credit facilities consist of a $955.0 million term loan facility and a $100.0 million revolving credit facility. The term loans and revolving credit facility mature on January 30, 2020 and January 30, 2018, respectively. The term loan facility requires quarterly principal payments of $2.4 million, with the remaining principal balance due on January 30, 2020. | ||||||||
On January 30, 2013, the Company’s wholly owned subsidiary, Bright Horizons Family Solutions LLC (“BHFS LLC”), entered into a credit agreement for the issuance of term loans in an aggregate principal amount of $790.0 million, to 1) refinance all of the existing indebtedness under the senior secured credit facilities and the senior subordinated notes, and 2) redeem the remaining senior notes in conjunction with proceeds from the Company’s offering. On November 19, 2014, BHFS LLC entered into Amendment No. 1 which supplements and amends the credit agreement. On December 9, 2014, BHFS LLC entered into an Incremental Joinder which supplements and amends the credit agreement. | ||||||||
The December 2014 amendment to the credit agreement provided for, among other things, new term loans in an aggregate principal amount of $165.0 million, which were fully drawn by the Borrower on December 9, 2014. The proceeds of the loans were used for general corporate purposes, including to pay fees and expenses related to entering into the debt transaction and to fund share repurchases by the Company. | ||||||||
All borrowings under the credit agreement are subject to variable interest rates. Borrowings under the term loan facility bear interest at a rate per annum ranging from 1.75% to 2.5% over the Base Rate or 2.75% to 3.5% over the Eurocurrency Rate defined in the credit agreement. Borrowings under our revolving facility bear interest at a rate per annum equal to 1.75% over the Base Rate or 2.75% over the Eurocurrency Rate. The Base Rate is the highest of (1) the prime rate of Goldman Sachs Bank USA, (2) the federal funds effective rate plus 0.5% and (3) the Eurocurrency Rate with a one month interest period plus 1.0%. The Eurocurrency Rate option is the one, two, three or six month LIBOR rate, as selected by the Borrower, or, with the approval of the applicable lenders, the nine, twelve or less than one month LIBOR rate. The Base Rate is subject to an interest rate floor of 2.0% and the Eurocurrency Rate is subject to an interest rate floor of 1.0%, both only with respect to the term loan facility. In addition, the unused portion of the revolving credit facility is subject to a commitment fee per annum ranging from 0.375% to 0.500%. | ||||||||
The effective interest rate for the term loans was 3.8% and 4.0% at December 31, 2014 and 2013, respectively. The weighted average interest rate for the years ended December 31, 2014 and 2013 was 3.9% and 4.1%, respectively. There were no borrowings outstanding on the revolving credit facility at December 31, 2014 and 2013 with the full facility available for borrowings. The weighted average interest rate for the revolving credit facility was 5.0% for the years ended December 31, 2014 and 2013. | ||||||||
All obligations under the senior secured credit facilities are secured by substantially all the assets of the Company’s U.S.-based subsidiaries. The senior secured credit facilities contain certain customary affirmative covenants and other covenants that, among other things, may restrict the ability of BHFS LLC, and its restricted subsidiaries, to: incur certain liens; make investments, loans, advances and acquisitions; incur additional indebtedness or guarantees; 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. | ||||||||
The revolving credit facility requires BHFS LLC and its restricted subsidiaries to comply with a maximum senior secured first lien net leverage ratio financial maintenance covenant, to be tested only if, on the last day of each fiscal quarter, the amount of revolving loans and swingline loans outstanding under the revolving credit facility exceed 25% of the revolving commitments on such date. | ||||||||
On January 30, 2013, the Company redeemed all outstanding debt of $972.5 million, including the redemption premium of $41.1 million. As a result of the redemption, the Company recorded a loss on the extinguishment of debt of $63.7 million, inclusive of redemption premiums and deferred financing costs written off. The Company used the net proceeds of its initial public offering and certain proceeds from the issuance of senior secured term loans to fund the redemption. | ||||||||
The Company incurred financing fees of $12.7 million and original issue discount costs of $7.9 million in connection with the 2013 debt refinancing and $1.5 million and $1.7 million in connection with the 2014 financing. These fees 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 and original issuance discount costs in the year ended December 31, 2014 was $1.9 million and $1.1 million, respectively. Amortization expense of deferred financing costs and original issuance discount costs in the year ended December 31, 2013 was $1.7 million and $1.0 million, respectively. Amortization expense of deferred financing costs and original issuance discount costs in the year ended December 31, 2012 was $3.7 million and $3.1 million, respectively, which related to debt that was extinguished in January of 2013. |
Redeemable_NonControlling_Inte
Redeemable Non-Controlling Interest | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Noncontrolling Interest [Abstract] | ||||
Redeemable Non-Controlling Interest | REDEEMABLE NON-CONTROLLING INTEREST | |||
In July 2011, and as discussed in Note 1, the Company acquired a 63% ownership interest of a company in the Netherlands. The Company acquired the remaining 37% interest by acquiring 18.5% in November 2012 and the remaining 18.5% on December 31, 2013. | ||||
The operating results of the company in the Netherlands are included in the Company’s consolidated results of operations with the non-controlling interest and the net income attributable to the Company presented separately. The minority ownership interest by the previous owners is presented as redeemable non-controlling interest on the consolidated balance sheet in the periods prior to the acquisition of the remaining interest on December 31, 2013. | ||||
The redeemable non-controlling interest was measured at fair value at the date of acquisition and was reviewed at each subsequent reporting period and adjusted, as needed, to reflect its then redemption value. No adjustments were recorded. | ||||
The acquisition by the Company of 18.5% interest on November 23, 2012 for $3.9 million and of the remaining 18.5% interest on December 31, 2013 for $4.1 million was treated as an equity transaction and the difference between the acquisition price and carrying value of the redeemable non-controlling interest was recorded as an adjustment to additional paid in capital. The accumulated other comprehensive income associated with the additional acquired interest was also recorded as equity of the Company. | ||||
The following is a reconciliation of the changes in the redeemable non-controlling interest for the year ended December 31, 2013 (in thousands): | ||||
Year ended December 31, | ||||
2013 | ||||
Balance at beginning of the period | $ | 8,126 | ||
Sale of 18.5% of interest to BHFS | (8,204 | ) | ||
Net loss attributable to non-controlling interest | (279 | ) | ||
Effect of foreign currency translation | 357 | |||
Balance at end of period | $ | — | ||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | INCOME TAXES | |||||||||||
Income (loss) before income taxes consists of the following (in thousands): | ||||||||||||
Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
United States | $ | 110,585 | $ | 5,109 | $ | 6,882 | ||||||
Foreign | 1,729 | (298 | ) | 4,870 | ||||||||
Total | $ | 112,314 | $ | 4,811 | $ | 11,752 | ||||||
Income tax expense (benefit) consists of the following (in thousands): | ||||||||||||
Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current tax expense (benefit) | ||||||||||||
Federal | $ | 45,628 | $ | 10,546 | $ | 8,102 | ||||||
State | 8,753 | 591 | 2,361 | |||||||||
Foreign | (726 | ) | (5,260 | ) | 4,434 | |||||||
53,655 | 5,877 | 14,897 | ||||||||||
Deferred tax (benefit) expense | ||||||||||||
Federal | (10,497 | ) | (9,080 | ) | (9,048 | ) | ||||||
State | (948 | ) | (1,179 | ) | (1,453 | ) | ||||||
Foreign | (1,931 | ) | (3,151 | ) | (1,153 | ) | ||||||
(13,376 | ) | (13,410 | ) | (11,654 | ) | |||||||
Income tax expense (benefit) | $ | 40,279 | $ | (7,533 | ) | $ | 3,243 | |||||
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, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal tax expense computed at statutory rate | $ | 39,310 | $ | 1,684 | $ | 4,113 | ||||||
State tax expense (benefit), net of federal tax | 5,121 | (193 | ) | 416 | ||||||||
Valuation allowance, net | 245 | 3 | 23 | |||||||||
Permanent differences and other, net | 277 | (234 | ) | 551 | ||||||||
Change in tax rate | (134 | ) | (94 | ) | 12 | |||||||
Change to uncertain tax positions, net | (1,523 | ) | (4,850 | ) | (869 | ) | ||||||
Foreign rate differential | (3,017 | ) | (3,849 | ) | (1,003 | ) | ||||||
Income tax expense (benefit) | $ | 40,279 | $ | (7,533 | ) | $ | 3,243 | |||||
Significant components of the Company’s net deferred tax liability are as follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Current deferred tax assets: | ||||||||||||
Reserve on assets | $ | 466 | $ | 869 | ||||||||
Liabilities not yet deductible | 11,582 | 10,874 | ||||||||||
Deferred revenue | 771 | 708 | ||||||||||
Other | 191 | 496 | ||||||||||
13,010 | 12,947 | |||||||||||
Valuation allowance | (32 | ) | (6 | ) | ||||||||
Net current deferred tax assets | 12,978 | 12,941 | ||||||||||
Non-current deferred tax assets: | ||||||||||||
Net operating loss and credit carryforwards | 1,659 | 1,983 | ||||||||||
Liabilities not yet deductible | 16,463 | 14,264 | ||||||||||
Deferred revenue | 1,953 | 1,090 | ||||||||||
Stock-based compensation | 10,964 | 11,663 | ||||||||||
Depreciation | 73 | — | ||||||||||
Other | 1,195 | 2,519 | ||||||||||
32,307 | 31,519 | |||||||||||
Valuation allowance | (1,264 | ) | (1,046 | ) | ||||||||
Net non-current deferred tax assets | 31,043 | 30,473 | ||||||||||
Total net deferred tax assets | 44,021 | 43,414 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Intangible assets | (143,732 | ) | (152,462 | ) | ||||||||
Depreciation | (13,686 | ) | (17,805 | ) | ||||||||
Total deferred tax liabilities | (157,418 | ) | (170,267 | ) | ||||||||
Net deferred tax liability | $ | (113,397 | ) | $ | (126,853 | ) | ||||||
During 2014, the overall deferred tax liability has decreased, primarily due to the book to tax difference in the treatment of amortization of intangible assets, depreciation and stock-based compensation. | ||||||||||||
The Company has foreign net operating losses of $10.2 million and has recorded an associated deferred tax asset totaling $1.6 million. Deferred tax assets associated with state net operating losses total $0.1 million. The net operating losses in foreign jurisdictions will begin to expire in 2031 or can be carried forward indefinitely. The net operating losses in the various states have expiration dates through 2031. In jurisdictions in which the Company has not had a history of profitability, the Company has recorded a valuation allowance of $1.3 million associated with foreign net deferred tax assets. During 2014, the valuation allowance increased $0.2 million. | ||||||||||||
We consider 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. We have not recorded a deferred tax liability of approximately $7.8 million related to the U.S. federal and state income taxes and foreign withholding taxes on approximately $60.1 million of cumulative undistributed earnings of foreign subsidiaries indefinitely invested outside the United States. Should we decide to repatriate the foreign earnings, we would need to adjust our income tax provision in the period we determined that the earnings will no longer be indefinitely invested outside the United States. | ||||||||||||
Uncertain Tax Positions | ||||||||||||
The Company follows the authoritative guidance relating to the accounting for uncertainty in income taxes. The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. 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. | ||||||||||||
A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands): | ||||||||||||
Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Beginning balance | $ | 2,034 | $ | 7,412 | $ | 7,933 | ||||||
Additions for tax positions of prior years | — | 540 | 474 | |||||||||
Additions for tax positions of current year | — | — | 879 | |||||||||
Settlements | — | (1,110 | ) | (474 | ) | |||||||
Reductions for tax positions of prior years | (490 | ) | (4,108 | ) | (845 | ) | ||||||
Lapses of statutes of limitations | (831 | ) | (712 | ) | (778 | ) | ||||||
Effect of foreign currency adjustments | — | 12 | 223 | |||||||||
Ending balance | $ | 713 | $ | 2,034 | $ | 7,412 | ||||||
The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. The Company’s current provision for income tax expense for the years ended December 31, 2014, 2013, and 2012 included $0.03 million, $0.1 million, and $0.3 million, respectively, of interest and penalties related to tax positions of the Company. The liability for total interest and penalties at December 31, 2014 and 2013 was $0.9 million and $1.6 million, respectively, and is included in other long-term liabilities. During the fourth quarter of 2014, the Company partially reduced its reserve for uncertain tax positions due to the lapse in the statute of limitations for prior tax filings and agreements on audits. | ||||||||||||
The total amount of unrecognized tax benefits that if recognized would affect the Company’s effective tax rate is $0.7 million. The Company expects the unrecognized tax benefits to 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 $0.7 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 2011 through 2014 are subject to audit based upon the Federal statute of limitations. The tax years 2011 and 2012 are currently under audit by the IRS and expected to be settled in early 2015. | ||||||||||||
State income tax returns are generally subject to examination for a period of three to five 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. There were no significant settlements of state audits during 2014. As of December 31, 2014, there were four income tax audits in process and the tax years from 2010 to 2014 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. In the last quarter of 2014, an audit commenced in the Netherlands for the 2011 and 2012 years and final conclusion is expected in early 2015. The tax returns for the Company’s subsidiaries located in foreign jurisdictions are subject to examination for periods ranging from one to seven years. |
Stockholders_Equity_and_StockB
Stockholders' Equity and Stock-Based Compensation | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Stockholders' Equity and Stock-Based Compensation | STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION | ||||||||||||
Common Stock | |||||||||||||
Prior to the Offering, the Company had Class L and Class A common stock outstanding. The Company’s Class L common stock was classified outside of permanent equity as the timing of the conversion or redemption event was outside of the control of the Company. In December 2012, the Company’s controlling shareholder effectively fixed the conversion ratio and the Class L common stock was re-measured to its final redemption amount using the fixed conversion ratio and the estimated fair value at that time. | |||||||||||||
In connection with the 1–for–1.9704 reverse split of its Class A common stock and as determined by its holders, the Company converted each share of its Class L common stock into 35.1955 shares of Class A common stock on January 11, 2013, and immediately reclassified those shares as well as all outstanding shares of Class A common stock into common stock. As a result of the reclassification of Class A common stock to common stock, all references to “Class A common stock” have been changed to “common stock” for all periods presented. | |||||||||||||
The following table reflects the changes in Class L common stock for the two years ended December 31, 2013 (in thousands, except share data): | |||||||||||||
Shares | Shares | Amount | |||||||||||
Issued | Outstanding | ||||||||||||
Class L common stock, balance at December 31, 2011 | 1,318,970 | 1,317,581 | 772,422 | ||||||||||
Issuance of Class L common stock | 18,610 | 18,610 | 1,675 | ||||||||||
Repurchase of Class L common stock | — | (9,076 | ) | (4,643 | ) | ||||||||
Retirement of treasury stock | (10,465 | ) | — | — | |||||||||
Accretion of Class L preferred return | — | — | 84,647 | ||||||||||
Class L common stock, balance at December 31, 2012 | 1,327,115 | 1,327,115 | 854,101 | ||||||||||
Conversion of Class L common stock into Common Stock | (1,327,115 | ) | (1,327,115 | ) | (854,101 | ) | |||||||
Class L common stock, balance at December 31, 2013 | — | — | $ | — | |||||||||
On January 30, 2013, the Company completed the Offering and, after the exercise of the underwriters’ overallotment option on February 21, 2013, issued a total of 11.6 million shares of common stock. | |||||||||||||
Preferred Stock | |||||||||||||
The Company authorized 25 million shares of undesignated preferred stock in 2013 for issuance, of which none were issued in the years ended December 31, 2014 and 2013. 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. The ability to issue preferred stock could delay or impede a change in control. As of December 31, 2014 and 2013 no shares of preferred stock were outstanding. | |||||||||||||
Treasury Stock | |||||||||||||
On March 28, 2014, the board of directors of the Company authorized the repurchase of up to $225.0 million of its common stock. Under this authorization, the Company repurchased a total of 5.0 million shares for $221.6 million in the year ended December 31, 2014, including 4.5 million shares that were purchased in a single block trade on December 10, 2014, from investment funds affiliated with the Sponsor in conjunction with the sale of 8.0 million shares through an underwritten offering to the public. There were zero stock repurchases during the year ended December 31, 2013. During the year ended December 31, 2012, the Company repurchased a total of 41,454 shares of common stock. The Company accounts for treasury stock under the cost method. All repurchased shares have been retired. | |||||||||||||
On February 4, 2015, the Board of Directors of the Company approved a $250.0 million repurchase program of its common stock. The repurchase program has no expiration date and replaces the prior authorization, of which $3.4 million remained outstanding. | |||||||||||||
Equity Incentive Plan | |||||||||||||
The Company has the 2012 Omnibus Long-Term Incentive Plan (“the Plan”), which became effective on January 24, 2013, and allows for the issuance of equity awards of up to 5 million shares of common stock. As of December 31, 2014, there were approximately 3.4 million shares of common stock available for grant. Stock options granted under the Plan are subject to a service condition and expire in seven years from date of grant or termination of the holder’s employment with the Company, unless such termination was due to death, disability or retirement, unless otherwise determined by the Administrator of the Plan. The majority of the options have a requisite service period of five years, with 40% of the options vesting on the second anniversary of the date of grant and 20% vesting on each of the third, fourth and fifth anniversaries, or have ratable or cliff vesting at the end of three years. | |||||||||||||
The Company also had an incentive compensation plan (the “2008 Equity Incentive Plan”) which, as amended in March 2012, was authorized to issue 150,000 shares of Class L common stock and 1.5 million shares of Class A common stock. No additional options will be granted under the 2008 Equity Incentive Plan. However, all outstanding options continue to be governed by their existing terms. | |||||||||||||
On January 11, 2013, the Company effected a 1–for–1.9704 reverse split of its Class A common stock. Therefore, all previously reported options to purchase Class A shares and the related exercise prices in the accompanying financial statements and related notes have been retroactively adjusted to reflect the reverse stock split. | |||||||||||||
In addition, on January 11, 2013, the Company converted each share of its Class L common stock into 35.1955 shares of Class A common stock, and, immediately following the conversion of its Class L common stock, reclassified those shares, as well as all outstanding shares of Class A common stock, into common stock. All outstanding options to purchase Class L common stock have been converted into options to acquire common stock using the 35.1955 conversion ratio with a corresponding adjustment to the exercise price. | |||||||||||||
On March 9, 2012, the Board of Directors approved the exchange of existing stock options to acquire common stock for options to acquire a combination of common stock and shares of Class L common stock (the “stock option exchange”). All option holders were subject to the exchange. This transaction was accounted for as a modification and resulted in approximately $19.0 million of additional compensation expense, of which approximately $13.4 million was recognized in 2012 related to the requisite service period already fulfilled, and approximately $5.0 million was recognized upon the closing of the Offering in January 2013, related to this performance requirement and the requisite service period fulfilled. The remaining incremental expense for stock options granted with a service condition is recognized on a straight-line basis over the remaining requisite service period of each separately vesting tranche. At December 31, 2014, there was approximately $0.1 million of expense remaining to be recognized in relation to the stock option exchange, which will be recognized over approximately 1 year. | |||||||||||||
Stock-Based Compensation | |||||||||||||
The Company recognized the impact of stock-based compensation in its consolidated statements of operations for the years ended December 31, 2014, 2013, and 2012 and did not capitalize any amounts on the consolidated balance sheets. In the year ended December 31, 2014, the Company recorded stock-based compensation expense of $7.9 million, of which $7.3 million was recorded in selling, general and administrative expenses and $0.6 million in cost of services in the consolidated statement of operations. In the years ended December 31, 2013 and 2012, the Company recorded stock-based compensation expense of $10.7 million and $17.6 million, respectively, in selling, general and administrative expenses in the consolidated statements of operations. Stock compensation expense generated an income tax benefit of $3.2 million, $4.3 million, and $7.1 million in the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||||||
The stock-based compensation expense for the year ended December 31, 2013 includes $5.0 million associated with options to purchase 1.3 million shares of common stock that had been issued under the 2008 Equity Incentive Plan, which vested upon the effectiveness of the Offering on January 24, 2013. The stock compensation expense for the year ended December 31, 2012 includes $13.4 million related to the stock option exchange, $3.5 million related primarily to the vested portion of option awards granted during the period, with the remaining $0.7 million related to option awards granted in prior years. | |||||||||||||
There were no share-based liabilities paid during the period. As of December 31, 2014, there was $14.1 million of total unrecognized compensation expense related to unvested share-based compensation arrangements granted under the Plan. That expense is expected to be recognized over the remaining requisite service period. The weighted average remaining requisite service period was approximately three years at December 31, 2014. | |||||||||||||
Stock Options | |||||||||||||
The fair value of each stock option of common stock and Class L shares granted was estimated on the date of grant using the Black-Scholes option pricing model using the following weighted average assumptions: | |||||||||||||
Years ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Common | Common | Class L | Common | ||||||||||
Stock | Stock | Shares | Stock | ||||||||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% | |||||||||
Expected stock price volatility | 30.00% | 44.30% | 79.20% | 79.20% | |||||||||
Risk free interest rate | 1.80% | 1.00% | 0.68% | 0.68% | |||||||||
Expected life of options (years) | 5.3 | 5.3 | 4.2 | 4.2 | |||||||||
Weighted average fair value per share of options granted during the period | $11.36 | $10.24 | $291.83 | $6.84 | |||||||||
The expected dividend yield was based on the Company’s expectation of not paying dividends in the foreseeable future. Since the Company completed its initial public offering in January 2013, it does not have sufficient history as a publicly traded company to evaluate its volatility factor. As such, the expected stock price volatility is based upon the historical volatility of the stock price over the expected life of the options of peer companies that are publicly traded. 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, 2014, 2013, and 2012, 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. This methodology was utilized due to the short length of time our common stock has been publicly traded. | |||||||||||||
The table below reflects stock option activity under the Company’s equity plan for the year ended December 31, 2014. | |||||||||||||
Weighted | Common Stock | ||||||||||||
Average | |||||||||||||
Remaining | |||||||||||||
Contractual | |||||||||||||
Life in | |||||||||||||
Years | Number | Weighted | Aggregate | ||||||||||
of | Average | Intrinsic | |||||||||||
Options | Exercise | Value | |||||||||||
Price | (In millions) | ||||||||||||
Outstanding at January 1, 2014 | 6.1 | 4,555,110 | $ | 15.39 | $ | 97.3 | |||||||
Granted | 944,377 | 37.15 | 9.3 | ||||||||||
Exercised | (1,212,458 | ) | 14.37 | 32.3 | |||||||||
Forfeited | (134,412 | ) | 27.77 | 2.6 | |||||||||
Outstanding at December 31, 2014 | 5.6 | 4,152,617 | $ | 20.24 | $ | 111.2 | |||||||
Exercisable at December 31, 2014 | 4.9 | 2,177,394 | $ | 14.2 | $ | 71.5 | |||||||
Vested and expected to vest at December 31, 2014 | 5.6 | 4,054,468 | $ | 20.08 | $ | 109.2 | |||||||
The fair value (pre-tax) of options that vested during the years ended December 31, 2014, 2013, and 2012 were $3.9 million, $9.1 million, and $4.9 million, respectively. | |||||||||||||
Restricted stock awards are also granted at the discretion of the Board of Directors as allowed under the Plan. During the year ended December 31, 2014, 259,525 shares of restricted stock were granted to certain senior managers and key employees, which vest at the end of three years and are accounted for as nonvested stock. The restricted stock was sold for a price equal to 50% of the fair value of the stock at the date of grant, or $18.15. 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. Stock-based compensation expense for restricted stock awards is calculated based on the fair value of the award on the date of grant, which will be recognized on a straight line basis over the requisite service period. The unvested shares of restricted stock participate equally in dividends with common stock. Restricted stock was 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. There were 259,525 shares of restricted stock outstanding as of December 31, 2014, with an intrinsic value of $7.5 million. All outstanding shares of restricted stock are expected to vest. | |||||||||||||
During the year ended December 31, 2014, restricted stock units were awarded to members of the board of directors as allowed under the Plan. The awards allow for the issuance of a share of the Company's common stock for each vested 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 Company issued 6,066 units at a weighted average fair value of $39.58 for a total value of $0.2 million. The units vested upon issuance. | |||||||||||||
Cash received by the Company from the exercise of stock options for the years ended December 31, 2014, 2013, and 2012 was $17.4 million, $11.0 million, and $2.1 million, respectively. The actual tax benefits realized from the tax deductions for option exercises were $9.1 million, $5.9 million, and $3.4 million in the years ended December 31, 2014, 2013, and 2012, respectively. The Company realizes a tax deduction upon the exercise of non-qualified stock options due to the recognition of compensation expense in the calculation of its taxable income. The amount of the compensation recognized for tax purposes is based on the difference between the market value of the common stock and the option price at the date the options are exercised. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Earnings Per Share | EARNINGS PER SHARE | |||||||||||
Basic earnings per share is calculated by dividing 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. | ||||||||||||
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 share-based payment awards that participate in dividends with common stock, also referred to herein as unvested participating shares. | ||||||||||||
In 2014, the Company had unvested share-based payment awards outstanding that include unvested shares awarded as restricted stock awards at the discretion of the Company’s Board of Directors. The restricted stock awards vest at the end of three years. The unvested shares participate equally in dividends. See Note 12 for a discussion of the current year unvested stock awards and issuances. In 2012, the Company had both Class L and common stock outstanding and the Class L common stock had a preference with respect to all liquidation distributions. Therefore, net earnings per share was calculated using the two-class method in 2014 and 2012, which requires the allocation of earnings to each class of common stock. | ||||||||||||
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, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Basic earnings per share: | ||||||||||||
Net income | $ | 72,035 | $ | 12,623 | $ | 8,162 | ||||||
Accretion of Class L preference | — | — | 79,211 | |||||||||
Accretion of Class L preference for vested options | — | — | 5,436 | |||||||||
Net income (loss) available to common shareholders | $ | 72,035 | $ | 12,623 | $ | (76,485 | ) | |||||
Allocation of net income (loss) to common shareholders: | ||||||||||||
Common stock | $ | 71,755 | $ | 12,623 | $ | (76,485 | ) | |||||
Unvested participating shares | 280 | — | — | |||||||||
$ | 72,035 | $ | 12,623 | $ | (76,485 | ) | ||||||
Weighted average number of common shares: | ||||||||||||
Class L | — | — | 1,326,206 | |||||||||
Common stock | 65,612,572 | 62,659,264 | 6,058,512 | |||||||||
Unvested participating shares | 255,920 | — | — | |||||||||
Earnings (loss) per common share: | ||||||||||||
Class L | $ | — | $ | — | $ | 59.73 | ||||||
Common stock | $ | 1.09 | $ | 0.2 | $ | (12.62 | ) | |||||
Earnings per Share - Diluted | ||||||||||||
The Company calculates diluted earnings per share for common stock using the more dilutive of (1) the treasury stock method, or (2) 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, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Diluted earnings per share: | ||||||||||||
Net income | $ | 72,035 | $ | 12,623 | $ | 8,162 | ||||||
Accretion of Class L preference | — | — | 79,211 | |||||||||
Accretion of Class L preference for vested options | — | — | 5,436 | |||||||||
Net income (loss) available to common shareholders | $ | 72,035 | $ | 12,623 | $ | (76,485 | ) | |||||
Earnings allocated to common stock | $ | 71,755 | $ | 12,623 | $ | (76,485 | ) | |||||
Plus earnings allocated to unvested participating shares | 280 | — | — | |||||||||
Less adjusted earnings allocated to unvested participating shares | (274 | ) | — | — | ||||||||
Earnings allocated to common stock | $ | 71,761 | $ | 12,623 | $ | (76,485 | ) | |||||
Weighted average number of common shares: | ||||||||||||
Class L | — | — | 1,326,206 | |||||||||
Common stock | 65,612,572 | 62,659,264 | 6,058,512 | |||||||||
Effect of dilutive securities | 1,631,600 | 1,849,772 | — | |||||||||
67,244,172 | 64,509,036 | 6,058,512 | ||||||||||
Earnings (loss) per common share: | ||||||||||||
Class L | $ | — | $ | — | $ | 59.73 | ||||||
Common stock | $ | 1.07 | $ | 0.2 | $ | (12.62 | ) | |||||
Options outstanding to purchase 0.7 million shares, 0.1 million shares and 0.6 million shares of common stock were excluded from diluted earnings per share for the years ended December 31, 2014, 2013, and 2012, respectively, since their effect was anti-dilutive, which may be dilutive in the future. Options outstanding to purchase 0.1 million shares of Class L common stock were excluded from diluted earnings per share for the year ended December 31, 2012 since their effect was anti-dilutive. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES | |||
Leases | ||||
The Company leases various office equipment, child care and early education center facilities and office space under non-cancelable operating leases. Most of the leases expire within 10 years and many contain renewal options for various periods. Rent expense for the years ended December 31, 2014, 2013, and 2012 totaled $88.7 million, $76.8 million and $62.8 million, respectively. | ||||
Future minimum payments under non-cancelable operating leases as of December 31, 2014 are as follows for the years ending December 31 (in thousands): | ||||
2015 | $ | 84,684 | ||
2016 | 82,274 | |||
2017 | 75,469 | |||
2018 | 70,526 | |||
2019 | 64,819 | |||
Thereafter | 362,722 | |||
Total future minimum lease payments | $ | 740,494 | ||
Long-Term Debt | ||||
Future minimum payments of long-term debt are as follows for the years ending December 31 (in thousands): | ||||
2015 | $ | 9,550 | ||
2016 | 9,550 | |||
2017 | 9,550 | |||
2018 | 9,550 | |||
2019 | 9,550 | |||
Thereafter | 891,450 | |||
Total future principal payments | $ | 939,200 | ||
Overdraft Facilities | ||||
The Company’s subsidiaries in the United Kingdom maintain an overdraft facility with a U.K. bank to support local short-term working capital requirements. The overdraft facility is repayable upon demand from the U.K. bank. The facility provides maximum borrowings of £0.3 million (approximately $0.4 million at December 31, 2014) and is secured by a cross guarantee by and among the Company’s subsidiaries in the United Kingdom and a right of offset against all accounts maintained by the subsidiaries at the lending bank. The overdraft facility bears interest at the U.K. bank’s base rate plus 2.15%. At December 31, 2014 and 2013, there were no amounts outstanding under the overdraft facility. | ||||
The Company’s subsidiary in the Netherlands maintained a multi-purpose revolving credit facility with a Dutch bank to support working capital, letter of credit requirements, and the construction and fitting out of new child care centers. The facility was secured by a right of offset against all accounts maintained at the lending bank and by an additional pledge of certain equipment. The €2.2 million facility was terminated in December 2014 and at December 31, 2013 there was €0.5 million (approximately $0.7 million) outstanding under the facility. The weighted average interest rate for the years ended December 31, 2014 and 2013 was 5.53% and 5.61%, respectively. | ||||
Letters of Credit | ||||
The Company has 23 letters of credit outstanding used to guarantee certain rent payments for up to $1.1 million. These letters of credit are guaranteed by cash deposits. 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 legal matters will not have a material effect on the Company’s financial condition, results of operations or cash flows. | ||||
Insurance and Regulatory | ||||
The Company self-insures a portion of its medical insurance plans and has a high deductible workers’ compensation plan. While management believes that the amounts accrued for these obligations are sufficient, any significant increase in the number of claims or costs associated with claims made under these plans could have a material adverse effect on the Company’s financial position, results of operations or cash flows. | ||||
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. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS |
The Company maintains a 401(k) Retirement Savings Plan (the “401(k) Plan”) for all eligible employees. To be eligible for the 401(k) Plan, an employee must be at least 20.5 years of age and have completed their eligibility period of 60 days and 160 hours of service from date of hire. If they do not meet the 160 hours of service requirement, they may be eligible at 12 months provided they have reached 1,000 hours of service from date of hire. The 401(k) Plan is funded by elective employee contributions of up to 50% 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 $2.3 million, $2.1 million and $2.0 million for each of the years ended December 31, 2014, 2013 and 2012. | |
The Company maintains a Nonqualified Deferred Compensation Plan (“NQDC Plan”) for all eligible employees that became effective September 1, 2014. Eligible employees are employees who have capped contribution levels in our existing 401(k) Plan due to the thresholds dictated by the IRS definition of “highly compensated” employees, as well as other employees at the discretion of the Bright Horizons Family Solutions Nonqualified Deferred Compensation Plan Committee (“the Administration Committee”). The NQDC Plan is funded by elective employee contributions of up to 50% of their compensation. Under the NQDC Plan, the Company matches 25% of employee contributions for each participant up to $2,500. The Company recorded an asset and a corresponding liability for the deferred compensation plan that were $0.3 million at December 31, 2014. |
Segment_and_Geographic_Informa
Segment and Geographic Information | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Segment and Geographic Information | SEGMENT AND GEOGRAPHIC INFORMATION | |||||||||||||||
Bright Horizons work/life services are primarily comprised of full service center-based child care, back-up dependent care, and other educational advisory services. Full service center-based care includes the traditional center-based child care, preschool, and elementary education, which have similar operating characteristics and meet the criteria for aggregation. Full service center-based care derives its revenues primarily from contractual arrangements with corporate clients and from tuition. The Company’s back-up dependent care services consist of center-based back-up child care, in-home care, mildly ill care, and adult/elder care. The Company’s other educational advisory services consists of the remaining services, including college preparation and admissions counseling, tuition reimbursement program administration, and related consulting services, which do not meet the quantitative thresholds for separate disclosure and are not material for segment reporting individually or in the aggregate. The Company and its chief operating decision makers 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 additional information is produced or included herein. | ||||||||||||||||
Full service | Back-up | Other | Total | |||||||||||||
center-based | dependent | educational | ||||||||||||||
care | care | advisory | ||||||||||||||
services | ||||||||||||||||
(In thousands) | ||||||||||||||||
Year ended December 31, 2014 | ||||||||||||||||
Revenue | $ | 1,156,661 | $ | 162,886 | $ | 33,452 | $ | 1,352,999 | ||||||||
Amortization of intangible assets | 27,696 | 725 | 578 | 28,999 | ||||||||||||
Income from operations (1) | 92,229 | 49,317 | 5,374 | 146,920 | ||||||||||||
Year ended December 31, 2013 | ||||||||||||||||
Revenue | $ | 1,049,854 | $ | 144,432 | $ | 24,490 | $ | 1,218,776 | ||||||||
Amortization of intangible assets | 29,048 | 725 | 302 | 30,075 | ||||||||||||
Income from operations (2) | 67,287 | 39,710 | 2,037 | 109,034 | ||||||||||||
Year ended December 31, 2012 | ||||||||||||||||
Revenue | $ | 922,214 | $ | 130,082 | $ | 18,642 | $ | 1,070,938 | ||||||||
Amortization of intangible assets | 25,906 | 725 | 302 | 26,933 | ||||||||||||
Income from operations (3) | 60,154 | 33,863 | 1,447 | 95,464 | ||||||||||||
-1 | For the year ended December 31, 2014, income from operations includes $2.7 million of costs associated with secondary offerings of common shares and the Credit Agreement amendment completed in November 2014 ($2.4 million to full service center-based care and $0.3 million to back-up dependent care). | |||||||||||||||
-2 | For the year ended December 31, 2013, income from operations includes expenses incurred in connection with the Offering completed in January 2013, including a $7.5 million fee for the termination of the management agreement with the Sponsor, and $5.0 million for certain stock options that vested upon completion of the Offering, allocated on a proportionate basis to each segment, $4.0 million of acquisition-related expenses related to full-service center-based care and $1.3 million of costs associated with secondary offerings of common shares ($15.1 million to full service center-based care, $1.9 million to back-up dependent care, and $0.8 million to other educational advisory services). | |||||||||||||||
-3 | For the year ended December 31, 2012, income from operations includes expenses incurred in connection with the modification of stock options in the amount of $15.1 million and expenses incurred in connection with the Offering completed in January 2013 in the amount of $1.8 million, allocated on a proportionate basis to each segment ($12.5 million to full service center-based care, $3.1 million to back-up dependent care, and $1.3 million to other educational advisory services). | |||||||||||||||
Revenue and long-lived assets by geographic region are as follows (in thousands): | ||||||||||||||||
Years ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Revenue | ||||||||||||||||
North America | $ | 1,074,951 | $ | 980,537 | $ | 901,210 | ||||||||||
Europe and other | 278,048 | 238,239 | 169,728 | |||||||||||||
Total Revenue | $ | 1,352,999 | $ | 1,218,776 | $ | 1,070,938 | ||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Long-lived assets | ||||||||||||||||
North America | $ | 277,971 | $ | 260,483 | ||||||||||||
Europe and other | 120,976 | 130,411 | ||||||||||||||
Total long-lived assets | $ | 398,947 | $ | 390,894 | ||||||||||||
The classification “North America” is comprised of the Company’s United States, Canada and Puerto Rico operations and the classification “Europe and other” includes the Company’s United Kingdom, Netherlands, Ireland, and India operations. Revenues in the United States were $1.1 billion in 2014, $975.5 million in 2013, and $896.1 million in 2012. Revenues in the United Kingdom were $239.6 million in 2014, $204.7 million in 2013, and $136.1 million in 2012. Long-lived assets were $275.7 million and $257.8 million, at December 31, 2014 and 2013, respectively, in the United States, and $104.0 million and $108.9 million at December 31, 2014 and 2013, respectively, in the United Kingdom. Revenue and long-lived assets associated with other countries were not material. |
Transactions_with_Related_Part
Transactions with Related Parties | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Transactions with Related Parties | TRANSACTIONS WITH RELATED PARTIES |
The Company had a management agreement with the Sponsor which provided for annual payments of $2.5 million through May 2018. In connection with the Offering, the Company and the Sponsor terminated the management agreement in exchange for a $7.5 million payment from the Company to the Sponsor, which is included in selling, general and administrative expenses in the accompanying statement of operations for the year ended December 31, 2013. | |
On June 19, 2013, March 25, 2014, and December 10, 2014 certain of the Company’s shareholders affiliated with the Sponsor completed the sale of 9.8 million, 7.9 million and 8.0 million shares, respectively, of the Company’s common stock in secondary offerings (“secondary offerings”). On December 10, 2014, the Company acquired 4.5 million of the offered shares at the equivalent price offered to public shareholders. As of December 31, 2014, investment funds affiliated with the Sponsor hold approximately 42.3% of the Company’s common stock. |
Quarterly_Results_Unaudited
Quarterly Results (Unaudited) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Quarterly Results (Unaudited) | 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. | ||||||||||||||||
31-Mar-14 | 30-Jun-14 | 30-Sep-14 | 12/31/14 | |||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Revenue | $ | 332,155 | $ | 348,100 | $ | 334,976 | $ | 337,768 | ||||||||
Gross profit | 77,149 | 83,114 | 72,861 | 80,478 | ||||||||||||
Income from operations | 34,011 | 42,535 | 33,046 | 37,328 | ||||||||||||
Net income | 16,048 | 21,714 | 15,379 | 18,894 | ||||||||||||
Net income attributable to Bright Horizons Family Solutions Inc. | 16,048 | 21,714 | 15,379 | 18,894 | ||||||||||||
Allocation of net income to common stockholders: | ||||||||||||||||
Common stock—basic | 15,988 | 21,629 | 15,319 | 18,819 | ||||||||||||
Common stock—diluted | 15,990 | 21,631 | 15,320 | 18,820 | ||||||||||||
Earnings per share: | ||||||||||||||||
Common stock—basic | $ | 0.24 | $ | 0.33 | $ | 0.23 | $ | 0.29 | ||||||||
Common stock—diluted | $ | 0.24 | $ | 0.32 | $ | 0.23 | $ | 0.28 | ||||||||
31-Mar-13 | 30-Jun-13 | 30-Sep-13 | 12/31/13 | |||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Revenue | $ | 280,123 | $ | 310,813 | $ | 308,663 | $ | 319,177 | ||||||||
Gross profit | 65,790 | 75,425 | 68,505 | 71,216 | ||||||||||||
Income from operations | 15,437 | 35,397 | 27,789 | 30,411 | ||||||||||||
Net (loss) income | (50,781 | ) | 24,507 | 14,942 | 23,676 | |||||||||||
Net (loss) income attributable to Bright Horizons Family Solutions Inc. (1) | (50,743 | ) | 24,579 | 15,044 | 23,743 | |||||||||||
Allocation of net (loss) income to common stockholders – basic and diluted: | ||||||||||||||||
Common stock | (50,743 | ) | 24,579 | 15,044 | 23,743 | |||||||||||
Earnings (loss) per share: | ||||||||||||||||
Common stock—basic | $ | (0.91 | ) | $ | 0.38 | $ | 0.23 | $ | 0.36 | |||||||
Common stock—diluted | $ | (0.91 | ) | $ | 0.37 | $ | 0.23 | $ | 0.35 | |||||||
(1) Net loss for the quarter ended March 31, 2013 includes a loss of $63.7 million from the extinguishment of debt. Refer to Note 9, “Credit Arrangements and Debt Obligations,” for additional details. |
Organization_and_Significant_A1
Organization and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Organization | Organization—Bright Horizons Family Solutions Inc. (“Bright Horizons” or the “Company”) provides workplace services for employers and families throughout the United States and the United Kingdom, and also in Puerto Rico, Canada, Ireland, the Netherlands, and India. Workplace services include center-based child care, education and enrichment programs, elementary school education, back-up dependent care (for children and elders), before and after school care, college preparation and admissions counseling, tuition reimbursement program administration, and other family support services. |
The Company provides its center-based child care services under two general business models: a profit and loss (“P&L”) model, where the Company assumes the financial risk of operating a child care center; and 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. The P&L model is further classified into two subcategories: (i) a sponsor model, where Bright Horizons provides child care and early education services on either an exclusive or priority enrollment basis for the employees of a specific employer sponsor; and (ii) a lease/consortium model, where the Company provides child care and early education services to the employees of multiple employers located within a specific real estate development (for example, an office building or office park), as well as to families in the surrounding community. In both our 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 each model type, 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 also provides back-up dependent care services through our own centers and through our Back-Up Care Advantage (“BUCA”) program, which offers access to a contracted network of in-home care agencies and center-based providers in locations where we do not otherwise have centers with available capacity. | |
Basis of Presentation | Basis of Presentation—Bright Horizons was acquired by investment funds affiliated with Bain Capital Partners LLC ("the Sponsor") as a result of a transaction in 2008 (the “Merger”), pursuant to which a wholly owned merger subsidiary was merged with and into Bright Horizons Family Solutions, Inc. (the “Predecessor”). As part of the transaction, a new basis of accounting was established and the purchase price was allocated to the assets acquired and liabilities assumed based on their fair values. In July 2012, Bright Horizons Family Solutions Inc. changed its name from Bright Horizons Solutions Corp. |
Public Offering | Public Offering—On January 30, 2013, the Company completed an initial public offering (“the Offering”) and, after the exercise of the underwriters’ overallotment option on February 21, 2013, issued a total of 11.6 million shares of common stock in exchange for $233.3 million, net of offering costs including $1.6 million expensed in 2012. The Company used the proceeds of the Offering, as well as certain amounts from the 2013 refinancing discussed below, to repay the principal and accumulated interest under its senior notes outstanding on January 30, 2013. |
On January 11, 2013, the Company converted each share of its Class L common stock into 35.1955 shares of Class A common stock, and, immediately following the conversion of its Class L common stock, reclassified the Class A common stock into common stock, for which 475 million shares were authorized. The Company also authorized 25 million shares of undesignated preferred stock for issuance. | |
On June 19, 2013, March 25, 2014, and December 10, 2014 certain of the Company’s shareholders affiliated with the Sponsor completed the sale of 9.8 million, 7.9 million and 8.0 million shares, respectively, of the Company’s common stock in secondary offerings (“secondary offerings”). The Company did not receive proceeds from the sale of shares in the secondary offerings. The Company incurred $1.0 million and $0.6 million in the years ended December 31, 2014 and 2013, respectively, in offering costs related to the secondary offerings, which are included in selling, general and administrative expenses. | |
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 accounting principles generally accepted in the United States of America 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. |
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 operations. The net gains and losses recorded in the consolidated statements of operations for the years ended December 31, 2014, 2013 and 2012 were not significant. | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments—The Company defines fair value as the price that would be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants at the measurement date and applies the following fair value 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 (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The Company uses observable inputs where relevant and whenever possible. |
Level 1—Quoted prices are available in active markets for identical investments as of the reporting date. | |
Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. | |
Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. | |
The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable and long-term debt. The fair value of the Company’s financial instruments, other than long-term debt, approximates their carrying value. | |
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 risk exists at December 31, 2014 and 2013. |
Cash and Cash Equivalents | Cash and Cash Equivalents—The Company considers all highly liquid investments with maturities, when purchased, of three months or less to be cash equivalents. Cash equivalents consist primarily of institutional money market accounts. There were no cash equivalent investments at December 31, 2014 and 2013. |
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 no book overdrafts at December 31, 2014 and 2013. | |
Accounts Receivable | Accounts Receivable—The Company generates accounts receivable from fees charged to parents and employer sponsors and, to a lesser degree, government agencies. 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 this 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 statements of operations. 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 at fair value. Acquisition costs are expensed as incurred and recorded in selling, general and administrative expenses; restructuring 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. The accounting for business combinations requires estimates and judgment as to expectations for future cash flows of the acquired business, the allocation of those cash flows to identifiable intangible assets, and in determining the estimated fair value for assets acquired and liabilities assumed. The fair values assigned to tangible and intangible assets acquired and liabilities assumed are 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 the actual results differ from these estimates, the amounts recorded in the financial statements could result in a possible impairment of the intangible assets and goodwill, or require acceleration of the amortization expense of finite-lived intangible assets. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets—Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. The Company’s intangible assets principally consist of various customer 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. The first step of the goodwill impairment test 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 second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The second step of the goodwill impairment test, used to measure the amount of impairment loss, compares the implied fair value of the affected reporting unit’s goodwill with the carrying value of that goodwill. | |
During the fourth quarter of fiscal 2014, the Company changed its annual goodwill impairment testing date from December 31 to October 1 of each year, which did not result in any delay, acceleration or avoidance of impairment. The Company believes this change is preferable because it more closely aligns the date of the annual goodwill impairment test with the timing of the Company’s annual strategic planning process. This change was applied prospectively beginning on October 1, 2014; retrospective application to prior periods is impracticable as the Company is unable to objectively determine, without the use of hindsight, the assumptions that would have been used in those earlier periods to estimate fair value. In connection with this change, the Company performed an impairment assessment as of October 1, 2014 and concluded that there was no impairment. No goodwill impairment losses were recorded in the years ended December 31, 2014, 2013, or 2012. | |
We test certain trademarks that are included in our 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 by applying a royalty rate determined by an analysis of empirical, market-derived royalty rates for guideline intangible assets, consistent with the initial valuation and then comparing the estimated fair value of our trademarks with the carrying value. This approach takes into effect level 3 and unobservable inputs. No impairment losses were recorded in the years ended December 31, 2014 and 2013 in relation to intangible assets. Impairment losses of $0.4 million were recorded in the year ended December 31, 2012 in relation to certain trade names with indefinite lives in the other educational advisory services segment, which have been included in selling, general and administrative expenses. | |
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 one to seventeen years. Intangible assets related to parent relationships are amortized using the double declining balance 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. Fair value can be determined using discounted cash flows and quoted market prices based on level 3 inputs. The Company recorded fixed asset impairment losses of $0.2 million, $0.8 million, and $0.3 million in the years ended December 31, 2014, 2013 and 2012, respectively, which have been included in cost of services. |
Other Long Term Assets | Other Long Term Assets—Other long term assets includes a cost basis investment of $2.0 million in a private company, which we review for impairment whenever events or changes in circumstances indicate that the carrying amount of such asset may not be recoverable. |
Deferred Revenue | Deferred Revenue—The Company records deferred revenue for prepaid tuition and management fees and amounts received from consulting projects in advance of services being performed. The Company is also a party to agreements where the performance of services extends beyond one year. In these circumstances, the Company records a long-term obligation and recognizes revenue over the period of the agreement as the services are rendered. |
Leases and Deferred Rent | Leases and Deferred Rent—The Company leases space for certain of its centers and corporate offices. Leases are evaluated and classified as operating or capital for financial reporting purposes. The Company recognizes rent expense from operating leases with periods of free rent, tenant allowances and scheduled rent increases on a straight-line basis over the applicable lease term. The difference between rents paid and straight-line rent expense is recorded as deferred rent. |
Discount on Long-Term Debt | Discount on Long-Term Debt—Original issue discounts on the Company’s debt 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 statements of operations. |
Deferred Financing Costs | Deferred Financing Costs—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 of this expense is included in interest expense in the consolidated statements of operations. |
Other Long-Term Liabilities | Other Long-Term Liabilities—Other long-term liabilities consist primarily of amounts payable to clients, pursuant to terms of operating agreements or for deposits held by the Company, and obligations for uncertain tax positions. |
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 Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. | |
Non-controlling Interest | Non-controlling Interest—The Company recorded the redeemable non-controlling ownership interest of a company in the Netherlands at fair value at the date of its initial acquisition. The difference between the acquisition price and carrying value of the redeemable non-controlling interest of any additional interest acquired was recorded as an adjustment to additional paid in capital. Any accumulated other comprehensive income or loss associated with the additional acquired interest was recorded as other comprehensive income or loss of the Company. |
In connection with the initial acquisition, the Company entered into put and call option agreements with the minority shareholders for the purchase of the non-controlling interest based on a contractually determined formula. As a result of the option agreements, the non-controlling interest was considered redeemable and was classified as temporary equity on the Company’s consolidated balance sheet. At December 31, 2013 and as further discussed in Note 10, “Redeemable Non-controlling Interest”, the Company had acquired 100% of the interest in the company. | |
Revenue Recognition | Revenue Recognition—The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the fee is fixed and determinable, and collectability is reasonably assured. |
Center-based care revenues consist primarily of tuition, which consists of amounts paid by parents, supplemented in some cases by payments from employer sponsors and, to a lesser extent, by payments from government agencies. Revenue may also include management fees, operating subsidies paid either in lieu of or to supplement parent tuition, and fees for other services. Revenue for center-based care is recognized as the services are performed. | |
The Company enters into contracts with its employer sponsors to manage and operate their child care and early education centers and/or for the provision of back-up dependent care and other educational advisory services under various terms. The Company’s contracts to operate child care and early education centers are generally three to ten years in length with varying renewal options. The Company’s contracts for back-up dependent care and other educational advisory services are generally one to three years in length with varying renewal options. Revenue for these services is recognized as they are performed. | |
Common Stock Valuation and Stock-Based Compensation | Common Stock Valuation and 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. |
Comprehensive Income or Loss | Comprehensive Income or Loss—Comprehensive income or loss is comprised of net income or loss and foreign currency translation adjustments. The Company does not provide for U.S. income taxes on the portion of undistributed earnings of foreign subsidiaries that are intended to be permanently reinvested. Therefore, taxes are not provided for the related currency translation adjustments. |
Earnings or Loss Per Share | Earnings or Loss Per Share—Net earnings or loss per share is calculated using the two-class method, which is an earnings allocation formula that determines net income or loss per share for the holders of the Company’s common stock, unvested participating shares and, prior to the completion of the Offering, the holders of Class L common stock. The Class L shares contained participation rights in any dividend paid by the Company or upon liquidation of the Company and were entitled to a minimum preferred return of 10% per annum, compounded quarterly. Unvested participating shares are unvested share-based payment awards of restricted stock that participate in dividends with common stock. Net income available to common shareholders includes the effects of any Class L preference amounts for the periods these were outstanding. Net income available to shareholders is allocated on a pro rata basis to each share as if all of the earnings for the period had been distributed. Diluted net income or loss per share is calculated using the more dilutive of (1) the treasury stock method, or (2) the two-class method for all outstanding stock options and the as-converted method for the Class L shares. |
New Accounting Pronouncements | New Accounting Pronouncement—In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers, which provides guidance for revenue recognition. The standard's core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today's guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration included in the transaction price and allocating the transaction price to each separate performance obligation. The guidance is effective for annual reporting periods beginning on or after December 15, 2016, and interim periods within those annual periods. Early adoption is not permitted. The Company is currently in the process of evaluating the impact of adoption of this ASU on the Company's consolidated financial statements. |
Organization_and_Significant_A2
Organization and Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
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, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Beginning balance | $ | 1,173 | $ | 1,627 | $ | 1,514 | ||||||
Provision | 551 | 437 | 734 | |||||||||
Write offs and recoveries | (489 | ) | (891 | ) | (621 | ) | ||||||
Ending balance | $ | 1,235 | $ | 1,173 | $ | 1,627 | ||||||
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Children's Choice Learning Centers [Member] | ||||||||||||
Allocation of Purchase Price | The purchase price for this acquisition has been allocated based on estimates of the fair values of the acquired assets and assumed liabilities at the date of acquisition as follows (in thousands): | |||||||||||
At acquisition date | Measurement | At acquisition date | ||||||||||
As reported | period adjustments | As reported | ||||||||||
September 30, 2013 | September 30, 2014 | |||||||||||
Accounts receivable | $ | 981 | $ | (126 | ) | $ | 855 | |||||
Prepaid expenses and other assets | 334 | 411 | 745 | |||||||||
Fixed assets | 5,637 | 535 | 6,172 | |||||||||
Intangible assets | 12,800 | (1,190 | ) | 11,610 | ||||||||
Goodwill | 38,818 | (1,086 | ) | 37,732 | ||||||||
Total assets acquired | 58,570 | (1,456 | ) | 57,114 | ||||||||
Accounts payable and accrued expenses | (3,441 | ) | (2,018 | ) | (5,459 | ) | ||||||
Deferred revenue and parent deposits | (885 | ) | 18 | (867 | ) | |||||||
Total liabilities assumed | (4,326 | ) | (2,000 | ) | (6,326 | ) | ||||||
Purchase price | $ | 54,244 | $ | (3,456 | ) | $ | 50,788 | |||||
Kidsunlimited Group Limited [Member] | ||||||||||||
Allocation of Purchase Price | The purchase price for this acquisition has been allocated based on estimates of the fair values of the acquired assets and assumed liabilities at the date of acquisition as follows (in thousands): | |||||||||||
At acquisition date | Measurement | At acquisition date | ||||||||||
As reported | period | As reported | ||||||||||
June 30, 2013 | adjustments | March 31, 2014 | ||||||||||
Cash | $ | 4,888 | $ | — | $ | 4,888 | ||||||
Accounts receivable | 1,809 | — | 1,809 | |||||||||
Prepaid expenses and other assets | 2,509 | — | 2,509 | |||||||||
Fixed assets | 13,901 | (192 | ) | 13,709 | ||||||||
Favorable leases | — | 2,892 | 2,892 | |||||||||
Intangible assets | 17,442 | 765 | 18,207 | |||||||||
Goodwill | 55,349 | (2,372 | ) | 52,977 | ||||||||
Total assets acquired | 95,898 | 1,093 | 96,991 | |||||||||
Accounts payable and accrued expenses | (9,450 | ) | 3,798 | (5,652 | ) | |||||||
Unfavorable leases | (1,759 | ) | (5,325 | ) | (7,084 | ) | ||||||
Deferred revenue | (12,853 | ) | 8,378 | (4,475 | ) | |||||||
Other current liabilities | — | (8,378 | ) | (8,378 | ) | |||||||
Deferred taxes | (2,735 | ) | 245 | (2,490 | ) | |||||||
Total liabilities assumed | (26,797 | ) | (1,282 | ) | (28,079 | ) | ||||||
Purchase price | $ | 69,101 | $ | (189 | ) | $ | 68,912 | |||||
Childrens Choice Learning Centers Inc And Kids Unlimited Group Limited [Member] | ||||||||||||
Summary of Operating Results | The following table presents consolidated pro forma information as if the acquisitions of Children’s Choice Learning Centers, Inc. and Kidsunlimited had occurred on January 1, 2012 (in thousands): | |||||||||||
Pro forma (Unaudited) | ||||||||||||
Years ended December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Revenue | $ | 1,260,453 | $ | 1,179,168 | ||||||||
Net income attributable to Bright Horizons Family Solutions Inc. | $ | 16,226 | $ | 4,504 | ||||||||
Prepaid_Expenses_and_Other_Cur1
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
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, | ||||||||
2014 | 2013 | |||||||
Prepaid workers compensation insurance | $ | 11,092 | $ | 10,327 | ||||
Prepaid rent and other occupancy costs | 10,672 | 7,515 | ||||||
Prepaid income taxes | 4,427 | 6,678 | ||||||
Reimbursable costs | 2,784 | 3,916 | ||||||
Favorable leases | 487 | 586 | ||||||
Prepaid insurance | 1,917 | 1,665 | ||||||
Other prepaid expenses and current assets | 7,768 | 13,334 | ||||||
$ | 39,147 | $ | 44,021 | |||||
Fixed_Assets_Tables
Fixed Assets (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||
Summary of Fixed Assets | Fixed assets consist of the following (dollars in thousands): | |||||||||
Estimated useful lives | December 31, | |||||||||
2014 | 2013 | |||||||||
(Years) | ||||||||||
Buildings | 20 – 40 | $ | 131,767 | $ | 128,715 | |||||
Furniture, equipment and software | 3 – 10 | 144,040 | 125,713 | |||||||
Leasehold improvements | Shorter of the lease term | 271,757 | 247,972 | |||||||
or the estimated useful life | ||||||||||
Land | — | 50,604 | 52,233 | |||||||
Total fixed assets | 598,168 | 554,633 | ||||||||
Accumulated depreciation | (199,221 | ) | (163,739 | ) | ||||||
Fixed assets, net | $ | 398,947 | $ | 390,894 | ||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
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 | Back-up | Other | Total | |||||||||||||
center-based | dependent | educational | ||||||||||||||
care | care | advisory | ||||||||||||||
services | ||||||||||||||||
Beginning balance at December 31, 2013 | $ | 912,134 | $ | 160,145 | $ | 24,004 | $ | 1,096,283 | ||||||||
Additions from acquisitions | 11,087 | — | — | 11,087 | ||||||||||||
Adjustments to prior year acquisitions | 902 | — | (203 | ) | 699 | |||||||||||
Effect of foreign currency translation | (11,080 | ) | (1,251 | ) | — | (12,331 | ) | |||||||||
Balance at December 31, 2014 | $ | 913,043 | $ | 158,894 | $ | 23,801 | $ | 1,095,738 | ||||||||
Intangible Assets Subject to Amortization | The Company also has intangible assets, which consist of the following at December 31, 2014 and 2013 (in thousands): | |||||||||||||||
Weighted average | Cost | Accumulated | Net carrying | |||||||||||||
amortization period | amortization | amount | ||||||||||||||
December 31, 2014: | ||||||||||||||||
Definite-lived intangibles: | ||||||||||||||||
Customer relationships | 14.5 years | $ | 400,097 | $ | (180,900 | ) | $ | 219,197 | ||||||||
Trade names | 8.1 years | 5,772 | (2,177 | ) | 3,595 | |||||||||||
Non-compete agreements | 5 years | 54 | (44 | ) | 10 | |||||||||||
405,923 | (183,121 | ) | 222,802 | |||||||||||||
Indefinite-lived intangibles: | ||||||||||||||||
Trade names | N/A | 183,447 | — | 183,447 | ||||||||||||
$ | 589,370 | $ | (183,121 | ) | $ | 406,249 | ||||||||||
Weighted average | Cost | Accumulated | Net carrying | |||||||||||||
amortization period | amortization | amount | ||||||||||||||
December 31, 2013: | ||||||||||||||||
Definite-lived intangibles: | ||||||||||||||||
Customer relationships | 14.5 years | $ | 400,481 | $ | (153,939 | ) | $ | 246,542 | ||||||||
Trade names | 8.1 years | 6,072 | (1,542 | ) | 4,530 | |||||||||||
Non-compete agreements | 5 years | 54 | (39 | ) | 15 | |||||||||||
406,607 | (155,520 | ) | 251,087 | |||||||||||||
Indefinite-lived intangibles: | ||||||||||||||||
Trade names | N/A | 183,973 | — | 183,973 | ||||||||||||
$ | 590,580 | $ | (155,520 | ) | $ | 435,060 | ||||||||||
Estimated Future Amortization Expense | The Company estimates that it will record amortization expense related to intangible assets existing as of December 31, 2014 as follows over the next five years (in thousands): | |||||||||||||||
Estimated | ||||||||||||||||
amortization | ||||||||||||||||
expense | ||||||||||||||||
2015 | $ | 26,842 | ||||||||||||||
2016 | $ | 25,491 | ||||||||||||||
2017 | $ | 24,618 | ||||||||||||||
2018 | $ | 23,700 | ||||||||||||||
2019 | $ | 22,910 | ||||||||||||||
Accounts_Payable_and_Accrued_E1
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Summary of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consist of the following (in thousands): | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Accounts payable | $ | 12,784 | $ | 6,691 | ||||
Accrued payroll and employee benefits | 59,364 | 58,171 | ||||||
Accrued insurance | 16,154 | 15,110 | ||||||
Accrued interest | 1,004 | 1,861 | ||||||
Accrued occupancy costs | 3,121 | 2,167 | ||||||
Accrued professional fees | 2,169 | 1,847 | ||||||
Other accrued expenses | 21,829 | 21,779 | ||||||
$ | 116,425 | $ | 107,626 | |||||
Other_Current_Liabilities_Tabl
Other Current Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Summary of Other Current Liabilities | Other current liabilities consist of the following (in thousands): | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Customer amounts on deposit | $ | 10,477 | $ | 15,495 | ||||
Deferred rent and other occupancy costs | 2,847 | 2,133 | ||||||
Unfavorable leases | 658 | 681 | ||||||
Income taxes payable | 4,802 | — | ||||||
Other liabilities | 1,616 | 1,993 | ||||||
$ | 20,400 | $ | 20,302 | |||||
Other_LongTerm_Liabilities_Tab
Other Long-Term Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Summary of Other Long-Term Liabilities | Other long-term liabilities consist of the following (in thousands): | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Customer amounts on deposit | $ | 9,199 | $ | 8,685 | ||||
Liability for uncertain tax positions | 1,594 | 3,647 | ||||||
Liability for unvested restricted stock | 4,709 | — | ||||||
Other liabilities | 7,899 | 6,674 | ||||||
$ | 23,401 | $ | 19,006 | |||||
Credit_Arrangements_and_Debt_O1
Credit Arrangements and Debt Obligations (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of Long-Term Debt | Long-term debt consists of the following (in thousands): | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Term loans | $ | 939,200 | $ | 782,100 | ||||
Original issue discount and deferred financing costs | (18,023 | ) | (17,877 | ) | ||||
Total debt | 921,177 | 764,223 | ||||||
Less current maturities | 9,550 | 7,900 | ||||||
Long-term debt | $ | 911,627 | $ | 756,323 | ||||
Redeemable_NonControlling_Inte1
Redeemable Non-Controlling Interest (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Noncontrolling Interest [Abstract] | ||||
Changes in Redeemable Non-controlling Interest | The following is a reconciliation of the changes in the redeemable non-controlling interest for the year ended December 31, 2013 (in thousands): | |||
Year ended December 31, | ||||
2013 | ||||
Balance at beginning of the period | $ | 8,126 | ||
Sale of 18.5% of interest to BHFS | (8,204 | ) | ||
Net loss attributable to non-controlling interest | (279 | ) | ||
Effect of foreign currency translation | 357 | |||
Balance at end of period | $ | — | ||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Components of Income (Loss) before Income Taxes | Income (loss) before income taxes consists of the following (in thousands): | |||||||||||
Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
United States | $ | 110,585 | $ | 5,109 | $ | 6,882 | ||||||
Foreign | 1,729 | (298 | ) | 4,870 | ||||||||
Total | $ | 112,314 | $ | 4,811 | $ | 11,752 | ||||||
Components of Income Tax (Benefit) Expense | Income tax expense (benefit) consists of the following (in thousands): | |||||||||||
Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current tax expense (benefit) | ||||||||||||
Federal | $ | 45,628 | $ | 10,546 | $ | 8,102 | ||||||
State | 8,753 | 591 | 2,361 | |||||||||
Foreign | (726 | ) | (5,260 | ) | 4,434 | |||||||
53,655 | 5,877 | 14,897 | ||||||||||
Deferred tax (benefit) expense | ||||||||||||
Federal | (10,497 | ) | (9,080 | ) | (9,048 | ) | ||||||
State | (948 | ) | (1,179 | ) | (1,453 | ) | ||||||
Foreign | (1,931 | ) | (3,151 | ) | (1,153 | ) | ||||||
(13,376 | ) | (13,410 | ) | (11,654 | ) | |||||||
Income tax expense (benefit) | $ | 40,279 | $ | (7,533 | ) | $ | 3,243 | |||||
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, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal tax expense computed at statutory rate | $ | 39,310 | $ | 1,684 | $ | 4,113 | ||||||
State tax expense (benefit), net of federal tax | 5,121 | (193 | ) | 416 | ||||||||
Valuation allowance, net | 245 | 3 | 23 | |||||||||
Permanent differences and other, net | 277 | (234 | ) | 551 | ||||||||
Change in tax rate | (134 | ) | (94 | ) | 12 | |||||||
Change to uncertain tax positions, net | (1,523 | ) | (4,850 | ) | (869 | ) | ||||||
Foreign rate differential | (3,017 | ) | (3,849 | ) | (1,003 | ) | ||||||
Income tax expense (benefit) | $ | 40,279 | $ | (7,533 | ) | $ | 3,243 | |||||
Components of Net Deferred Tax Liability | Significant components of the Company’s net deferred tax liability are as follows (in thousands): | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Current deferred tax assets: | ||||||||||||
Reserve on assets | $ | 466 | $ | 869 | ||||||||
Liabilities not yet deductible | 11,582 | 10,874 | ||||||||||
Deferred revenue | 771 | 708 | ||||||||||
Other | 191 | 496 | ||||||||||
13,010 | 12,947 | |||||||||||
Valuation allowance | (32 | ) | (6 | ) | ||||||||
Net current deferred tax assets | 12,978 | 12,941 | ||||||||||
Non-current deferred tax assets: | ||||||||||||
Net operating loss and credit carryforwards | 1,659 | 1,983 | ||||||||||
Liabilities not yet deductible | 16,463 | 14,264 | ||||||||||
Deferred revenue | 1,953 | 1,090 | ||||||||||
Stock-based compensation | 10,964 | 11,663 | ||||||||||
Depreciation | 73 | — | ||||||||||
Other | 1,195 | 2,519 | ||||||||||
32,307 | 31,519 | |||||||||||
Valuation allowance | (1,264 | ) | (1,046 | ) | ||||||||
Net non-current deferred tax assets | 31,043 | 30,473 | ||||||||||
Total net deferred tax assets | 44,021 | 43,414 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Intangible assets | (143,732 | ) | (152,462 | ) | ||||||||
Depreciation | (13,686 | ) | (17,805 | ) | ||||||||
Total deferred tax liabilities | (157,418 | ) | (170,267 | ) | ||||||||
Net deferred tax liability | $ | (113,397 | ) | $ | (126,853 | ) | ||||||
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands): | |||||||||||
Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Beginning balance | $ | 2,034 | $ | 7,412 | $ | 7,933 | ||||||
Additions for tax positions of prior years | — | 540 | 474 | |||||||||
Additions for tax positions of current year | — | — | 879 | |||||||||
Settlements | — | (1,110 | ) | (474 | ) | |||||||
Reductions for tax positions of prior years | (490 | ) | (4,108 | ) | (845 | ) | ||||||
Lapses of statutes of limitations | (831 | ) | (712 | ) | (778 | ) | ||||||
Effect of foreign currency adjustments | — | 12 | 223 | |||||||||
Ending balance | $ | 713 | $ | 2,034 | $ | 7,412 | ||||||
Stockholders_Equity_and_StockB1
Stockholders' Equity and Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Weighted Average Assumptions for Fair Value of Stock Option | The fair value of each stock option of common stock and Class L shares granted was estimated on the date of grant using the Black-Scholes option pricing model using the following weighted average assumptions: | ||||||||||||
Years ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Common | Common | Class L | Common | ||||||||||
Stock | Stock | Shares | Stock | ||||||||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | 0.00% | |||||||||
Expected stock price volatility | 30.00% | 44.30% | 79.20% | 79.20% | |||||||||
Risk free interest rate | 1.80% | 1.00% | 0.68% | 0.68% | |||||||||
Expected life of options (years) | 5.3 | 5.3 | 4.2 | 4.2 | |||||||||
Weighted average fair value per share of options granted during the period | $11.36 | $10.24 | $291.83 | $6.84 | |||||||||
Common Stock Class L [Member] | |||||||||||||
Reconciliation of Changes in Class L Common Stock | The following table reflects the changes in Class L common stock for the two years ended December 31, 2013 (in thousands, except share data): | ||||||||||||
Shares | Shares | Amount | |||||||||||
Issued | Outstanding | ||||||||||||
Class L common stock, balance at December 31, 2011 | 1,318,970 | 1,317,581 | 772,422 | ||||||||||
Issuance of Class L common stock | 18,610 | 18,610 | 1,675 | ||||||||||
Repurchase of Class L common stock | — | (9,076 | ) | (4,643 | ) | ||||||||
Retirement of treasury stock | (10,465 | ) | — | — | |||||||||
Accretion of Class L preferred return | — | — | 84,647 | ||||||||||
Class L common stock, balance at December 31, 2012 | 1,327,115 | 1,327,115 | 854,101 | ||||||||||
Conversion of Class L common stock into Common Stock | (1,327,115 | ) | (1,327,115 | ) | (854,101 | ) | |||||||
Class L common stock, balance at December 31, 2013 | — | — | $ | — | |||||||||
Common Stock [Member] | |||||||||||||
Stock Option Activity | The table below reflects stock option activity under the Company’s equity plan for the year ended December 31, 2014. | ||||||||||||
Weighted | Common Stock | ||||||||||||
Average | |||||||||||||
Remaining | |||||||||||||
Contractual | |||||||||||||
Life in | |||||||||||||
Years | Number | Weighted | Aggregate | ||||||||||
of | Average | Intrinsic | |||||||||||
Options | Exercise | Value | |||||||||||
Price | (In millions) | ||||||||||||
Outstanding at January 1, 2014 | 6.1 | 4,555,110 | $ | 15.39 | $ | 97.3 | |||||||
Granted | 944,377 | 37.15 | 9.3 | ||||||||||
Exercised | (1,212,458 | ) | 14.37 | 32.3 | |||||||||
Forfeited | (134,412 | ) | 27.77 | 2.6 | |||||||||
Outstanding at December 31, 2014 | 5.6 | 4,152,617 | $ | 20.24 | $ | 111.2 | |||||||
Exercisable at December 31, 2014 | 4.9 | 2,177,394 | $ | 14.2 | $ | 71.5 | |||||||
Vested and expected to vest at December 31, 2014 | 5.6 | 4,054,468 | $ | 20.08 | $ | 109.2 | |||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
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, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Basic earnings per share: | ||||||||||||
Net income | $ | 72,035 | $ | 12,623 | $ | 8,162 | ||||||
Accretion of Class L preference | — | — | 79,211 | |||||||||
Accretion of Class L preference for vested options | — | — | 5,436 | |||||||||
Net income (loss) available to common shareholders | $ | 72,035 | $ | 12,623 | $ | (76,485 | ) | |||||
Allocation of net income (loss) to common shareholders: | ||||||||||||
Common stock | $ | 71,755 | $ | 12,623 | $ | (76,485 | ) | |||||
Unvested participating shares | 280 | — | — | |||||||||
$ | 72,035 | $ | 12,623 | $ | (76,485 | ) | ||||||
Weighted average number of common shares: | ||||||||||||
Class L | — | — | 1,326,206 | |||||||||
Common stock | 65,612,572 | 62,659,264 | 6,058,512 | |||||||||
Unvested participating shares | 255,920 | — | — | |||||||||
Earnings (loss) per common share: | ||||||||||||
Class L | $ | — | $ | — | $ | 59.73 | ||||||
Common stock | $ | 1.09 | $ | 0.2 | $ | (12.62 | ) | |||||
Earnings Per Share, Diluted | The Company calculates diluted earnings per share for common stock using the more dilutive of (1) the treasury stock method, or (2) 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, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Diluted earnings per share: | ||||||||||||
Net income | $ | 72,035 | $ | 12,623 | $ | 8,162 | ||||||
Accretion of Class L preference | — | — | 79,211 | |||||||||
Accretion of Class L preference for vested options | — | — | 5,436 | |||||||||
Net income (loss) available to common shareholders | $ | 72,035 | $ | 12,623 | $ | (76,485 | ) | |||||
Earnings allocated to common stock | $ | 71,755 | $ | 12,623 | $ | (76,485 | ) | |||||
Plus earnings allocated to unvested participating shares | 280 | — | — | |||||||||
Less adjusted earnings allocated to unvested participating shares | (274 | ) | — | — | ||||||||
Earnings allocated to common stock | $ | 71,761 | $ | 12,623 | $ | (76,485 | ) | |||||
Weighted average number of common shares: | ||||||||||||
Class L | — | — | 1,326,206 | |||||||||
Common stock | 65,612,572 | 62,659,264 | 6,058,512 | |||||||||
Effect of dilutive securities | 1,631,600 | 1,849,772 | — | |||||||||
67,244,172 | 64,509,036 | 6,058,512 | ||||||||||
Earnings (loss) per common share: | ||||||||||||
Class L | $ | — | $ | — | $ | 59.73 | ||||||
Common stock | $ | 1.07 | $ | 0.2 | $ | (12.62 | ) | |||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Future Minimum Payments under Non-Cancelable Operating Leases | Future minimum payments under non-cancelable operating leases as of December 31, 2014 are as follows for the years ending December 31 (in thousands): | |||
2015 | $ | 84,684 | ||
2016 | 82,274 | |||
2017 | 75,469 | |||
2018 | 70,526 | |||
2019 | 64,819 | |||
Thereafter | 362,722 | |||
Total future minimum lease payments | $ | 740,494 | ||
Future Minimum Payments of Long-Term Debt | Future minimum payments of long-term debt are as follows for the years ending December 31 (in thousands): | |||
2015 | $ | 9,550 | ||
2016 | 9,550 | |||
2017 | 9,550 | |||
2018 | 9,550 | |||
2019 | 9,550 | |||
Thereafter | 891,450 | |||
Total future principal payments | $ | 939,200 | ||
Segment_and_Geographic_Informa1
Segment and Geographic Information (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Income from Operations by Segment | 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 additional information is produced or included herein. | |||||||||||||||
Full service | Back-up | Other | Total | |||||||||||||
center-based | dependent | educational | ||||||||||||||
care | care | advisory | ||||||||||||||
services | ||||||||||||||||
(In thousands) | ||||||||||||||||
Year ended December 31, 2014 | ||||||||||||||||
Revenue | $ | 1,156,661 | $ | 162,886 | $ | 33,452 | $ | 1,352,999 | ||||||||
Amortization of intangible assets | 27,696 | 725 | 578 | 28,999 | ||||||||||||
Income from operations (1) | 92,229 | 49,317 | 5,374 | 146,920 | ||||||||||||
Year ended December 31, 2013 | ||||||||||||||||
Revenue | $ | 1,049,854 | $ | 144,432 | $ | 24,490 | $ | 1,218,776 | ||||||||
Amortization of intangible assets | 29,048 | 725 | 302 | 30,075 | ||||||||||||
Income from operations (2) | 67,287 | 39,710 | 2,037 | 109,034 | ||||||||||||
Year ended December 31, 2012 | ||||||||||||||||
Revenue | $ | 922,214 | $ | 130,082 | $ | 18,642 | $ | 1,070,938 | ||||||||
Amortization of intangible assets | 25,906 | 725 | 302 | 26,933 | ||||||||||||
Income from operations (3) | 60,154 | 33,863 | 1,447 | 95,464 | ||||||||||||
-1 | For the year ended December 31, 2014, income from operations includes $2.7 million of costs associated with secondary offerings of common shares and the Credit Agreement amendment completed in November 2014 ($2.4 million to full service center-based care and $0.3 million to back-up dependent care). | |||||||||||||||
-2 | For the year ended December 31, 2013, income from operations includes expenses incurred in connection with the Offering completed in January 2013, including a $7.5 million fee for the termination of the management agreement with the Sponsor, and $5.0 million for certain stock options that vested upon completion of the Offering, allocated on a proportionate basis to each segment, $4.0 million of acquisition-related expenses related to full-service center-based care and $1.3 million of costs associated with secondary offerings of common shares ($15.1 million to full service center-based care, $1.9 million to back-up dependent care, and $0.8 million to other educational advisory services). | |||||||||||||||
-3 | For the year ended December 31, 2012, income from operations includes expenses incurred in connection with the modification of stock options in the amount of $15.1 million and expenses incurred in connection with the Offering completed in January 2013 in the amount of $1.8 million, allocated on a proportionate basis to each segment ($12.5 million to full service center-based care, $3.1 million to back-up dependent care, and $1.3 million to other educational advisory services). | |||||||||||||||
Revenue and Long-Lived Assets by Geographic Region | Revenue and long-lived assets by geographic region are as follows (in thousands): | |||||||||||||||
Years ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Revenue | ||||||||||||||||
North America | $ | 1,074,951 | $ | 980,537 | $ | 901,210 | ||||||||||
Europe and other | 278,048 | 238,239 | 169,728 | |||||||||||||
Total Revenue | $ | 1,352,999 | $ | 1,218,776 | $ | 1,070,938 | ||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Long-lived assets | ||||||||||||||||
North America | $ | 277,971 | $ | 260,483 | ||||||||||||
Europe and other | 120,976 | 130,411 | ||||||||||||||
Total long-lived assets | $ | 398,947 | $ | 390,894 | ||||||||||||
Quarterly_Results_Unaudited_Ta
Quarterly Results (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Schedule of Quarterly Financial Information | The operating results for any quarter are not necessarily indicative of the results of any future quarter. | |||||||||||||||
31-Mar-14 | 30-Jun-14 | 30-Sep-14 | 12/31/14 | |||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Revenue | $ | 332,155 | $ | 348,100 | $ | 334,976 | $ | 337,768 | ||||||||
Gross profit | 77,149 | 83,114 | 72,861 | 80,478 | ||||||||||||
Income from operations | 34,011 | 42,535 | 33,046 | 37,328 | ||||||||||||
Net income | 16,048 | 21,714 | 15,379 | 18,894 | ||||||||||||
Net income attributable to Bright Horizons Family Solutions Inc. | 16,048 | 21,714 | 15,379 | 18,894 | ||||||||||||
Allocation of net income to common stockholders: | ||||||||||||||||
Common stock—basic | 15,988 | 21,629 | 15,319 | 18,819 | ||||||||||||
Common stock—diluted | 15,990 | 21,631 | 15,320 | 18,820 | ||||||||||||
Earnings per share: | ||||||||||||||||
Common stock—basic | $ | 0.24 | $ | 0.33 | $ | 0.23 | $ | 0.29 | ||||||||
Common stock—diluted | $ | 0.24 | $ | 0.32 | $ | 0.23 | $ | 0.28 | ||||||||
31-Mar-13 | 30-Jun-13 | 30-Sep-13 | 12/31/13 | |||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Revenue | $ | 280,123 | $ | 310,813 | $ | 308,663 | $ | 319,177 | ||||||||
Gross profit | 65,790 | 75,425 | 68,505 | 71,216 | ||||||||||||
Income from operations | 15,437 | 35,397 | 27,789 | 30,411 | ||||||||||||
Net (loss) income | (50,781 | ) | 24,507 | 14,942 | 23,676 | |||||||||||
Net (loss) income attributable to Bright Horizons Family Solutions Inc. (1) | (50,743 | ) | 24,579 | 15,044 | 23,743 | |||||||||||
Allocation of net (loss) income to common stockholders – basic and diluted: | ||||||||||||||||
Common stock | (50,743 | ) | 24,579 | 15,044 | 23,743 | |||||||||||
Earnings (loss) per share: | ||||||||||||||||
Common stock—basic | $ | (0.91 | ) | $ | 0.38 | $ | 0.23 | $ | 0.36 | |||||||
Common stock—diluted | $ | (0.91 | ) | $ | 0.37 | $ | 0.23 | $ | 0.35 | |||||||
(1) Net loss for the quarter ended March 31, 2013 includes a loss of $63.7 million from the extinguishment of debt. Refer to Note 9, “Credit Arrangements and Debt Obligations,” for additional details. |
Organization_and_Significant_A3
Organization and Significant Accounting Policies - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||||
Jan. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 10, 2014 | Mar. 25, 2014 | Jun. 19, 2013 | Jan. 11, 2013 | |
Accounting Policies [Line Items] | ||||||||
Issuance of Class L common stock (in shares) | 11,600,000 | |||||||
Proceed from issuance of initial public offering | $233,300,000 | $0 | $234,944,000 | $0 | ||||
Payment of initial public offering costs | 20,600,000 | 1,600,000 | ||||||
Common stock conversion ratio, Class L common stock into Class A common stock | 35.1955 | |||||||
Common stock, authorized | 475,000,000 | 475,000,000 | 475,000,000 | |||||
Preferred stock, authorized | 25,000,000 | 25,000,000 | 25,000,000 | |||||
Offering cost incurred | 137,683,000 | 141,827,000 | 123,373,000 | |||||
Stock repurchased and retired, shares | 5,000,000 | 0 | 41,454 | |||||
Stock repurchased and retired, amount | 221,577,000 | 497,000 | ||||||
Long-term debt | 911,627,000 | 756,323,000 | ||||||
Book overdrafts | 0 | |||||||
Fair value for each reporting unit, period | 10 years | |||||||
Impairment losses | 0 | 400,000 | ||||||
Fixed asset impairment | 200,000 | 800,000 | 300,000 | |||||
Other long term assets, cost basis investment | 2,000,000 | |||||||
Acquisition interest rate | 100.00% | |||||||
Minimum preferred return rate per annum | 10.00% | |||||||
Operate Child Care and Early Education Centers [Member] | ||||||||
Accounting Policies [Line Items] | ||||||||
Service contract length, minimum | 3 years | |||||||
Service contract length, maximum | 10 years | |||||||
Back-up Dependent Care [Member] | ||||||||
Accounting Policies [Line Items] | ||||||||
Service contract length, minimum | 1 year | |||||||
Service contract length, maximum | 3 years | |||||||
Minimum [Member] | ||||||||
Accounting Policies [Line Items] | ||||||||
Finite lived intangible assets, estimated useful life | 1 year | |||||||
Maximum [Member] | ||||||||
Accounting Policies [Line Items] | ||||||||
Finite lived intangible assets, estimated useful life | 17 years | |||||||
Fair Value, Inputs, Level 2 [Member] | ||||||||
Accounting Policies [Line Items] | ||||||||
Long-term debt | 939,200,000 | 782,100,000 | ||||||
Long-term debt, fair value | 921,600,000 | 784,100,000 | ||||||
Secondary Offering [Member] | ||||||||
Accounting Policies [Line Items] | ||||||||
Issuance of Class L common stock (in shares) | 8,000,000 | 7,900,000 | 9,800,000 | |||||
Offering cost incurred | 1,000,000 | 600,000 | ||||||
Stock repurchased and retired, shares | 4,500,000 | |||||||
Stock repurchased and retired, amount | $201,600,000 |
Organization_and_Significant_A4
Organization and Significant Accounting Policies - Activity in Allowance for Doubtful Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning balance | $1,173 | $1,627 | $1,514 |
Provision | 551 | 437 | 734 |
Write offs and recoveries | -489 | -891 | -621 |
Ending balance | $1,235 | $1,173 | $1,627 |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | ||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 22, 2013 | Apr. 10, 2013 | 31-May-12 | |
Center | Nursery | Center | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Settlement of purchase price for prior year acquisitions | $1,030,000 | $0 | $0 | |||||||||||
Goodwill | 1,095,738,000 | 1,096,283,000 | 1,095,738,000 | 1,096,283,000 | ||||||||||
Amortization of intangible assets | 28,999,000 | 30,075,000 | 26,933,000 | |||||||||||
Percentage of share purchase agreement | 100.00% | 100.00% | ||||||||||||
Deferred tax liability | 143,732,000 | 152,462,000 | 143,732,000 | 152,462,000 | ||||||||||
Total revenues contributed by acquired business | 337,768,000 | 334,976,000 | 348,100,000 | 332,155,000 | 319,177,000 | 308,663,000 | 310,813,000 | 280,123,000 | 1,352,999,000 | 1,218,776,000 | 1,070,938,000 | |||
United States [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Total revenues contributed by acquired business | 1,100,000,000 | 975,500,000 | 896,100,000 | |||||||||||
United Kingdom [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Total revenues contributed by acquired business | 239,600,000 | 204,700,000 | 136,100,000 | |||||||||||
Children's Choice Learning Centers [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Goodwill | 3,500,000 | |||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Taxes Payable | 1,200,000 | |||||||||||||
Settlement of purchase price for prior year acquisitions | 3,500,000 | 900,000 | ||||||||||||
Goodwill | 37,732,000 | 38,818,000 | ||||||||||||
Intangible assets consisting of customer relationships and trade names | 11,610,000 | 12,800,000 | ||||||||||||
Fixed assets | 6,172,000 | 5,637,000 | ||||||||||||
Amortization of intangible assets | 11,300,000 | |||||||||||||
Accounts payable and accrued expenses | -5,459,000 | -3,441,000 | ||||||||||||
Deferred revenue and parent deposits | -867,000 | -885,000 | ||||||||||||
Children's Choice Learning Centers [Member] | United States [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Number of centers acquired | 49 | |||||||||||||
Cash consideration | 50,800,000 | |||||||||||||
Acquisition related costs | 1,700,000 | |||||||||||||
Kidsunlimited Group Limited [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Goodwill | 52,977,000 | 53,000,000 | 55,349,000 | 53,000,000 | ||||||||||
Intangible assets consisting of customer relationships and trade names | 18,207,000 | 17,442,000 | ||||||||||||
Fixed assets | 13,709,000 | 13,901,000 | ||||||||||||
Deferred tax liability | 4,000,000 | 4,000,000 | ||||||||||||
Accounts payable and accrued expenses | -5,652,000 | -9,450,000 | ||||||||||||
Cash | 4,888,000 | 4,888,000 | ||||||||||||
Deferred taxes | -2,490,000 | -2,735,000 | ||||||||||||
Kidsunlimited Group Limited [Member] | United Kingdom [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Number of centers acquired | 64 | |||||||||||||
Cash consideration | 68,900,000 | |||||||||||||
Acquisition related costs | 1,900,000 | |||||||||||||
Percentage of share purchase agreement | 100.00% | |||||||||||||
Series of Individually Immaterial Business Acquisitions [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Settlement of purchase price for prior year acquisitions | 100,000 | |||||||||||||
Number of centers acquired | 5 | |||||||||||||
Cash consideration | 13,200,000 | 6,900,000 | ||||||||||||
Goodwill | 11,100,000 | 4,500,000 | 11,100,000 | 4,500,000 | ||||||||||
Intangible assets consisting of customer relationships and trade names | 2,100,000 | 3,300,000 | 2,100,000 | 3,300,000 | ||||||||||
Fixed assets | 900,000 | 900,000 | ||||||||||||
Working capital deficit recorded | 900,000 | 900,000 | ||||||||||||
Number of businesses acquired | 2 | 2 | ||||||||||||
Cash through acquisition | 2,700,000 | |||||||||||||
Fixed assets in relation to acquisition | 1,900,000 | 1,900,000 | ||||||||||||
Working capital in relation to acquisition | 1,300,000 | 1,300,000 | ||||||||||||
Series of Individually Immaterial Business Acquisitions [Member] | Other Educational Advisory Services [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Goodwill | 3,200,000 | 3,200,000 | ||||||||||||
Series of Individually Immaterial Business Acquisitions [Member] | Full Service Center-based Care [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Goodwill | 1,300,000 | 1,300,000 | ||||||||||||
Childrens Choice Learning Centers Inc And Kids Unlimited Group Limited [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Total acquisitions cost contributed by acquired business | 6,200,000 | 6,200,000 | ||||||||||||
Total revenues contributed by acquired business | 71,600,000 | |||||||||||||
Huntyard Limited [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Goodwill | 48,700,000 | |||||||||||||
Intangible assets consisting of customer relationships and trade names | 6,000,000 | |||||||||||||
Fixed assets | 65,800,000 | |||||||||||||
Acquisition related costs | 500,000 | |||||||||||||
Total revenues contributed by acquired business | 26,300,000 | |||||||||||||
Accounts payable and accrued expenses | -7,500,000 | |||||||||||||
Deferred revenue and parent deposits | -3,000,000 | |||||||||||||
Cash | 3,700,000 | |||||||||||||
Deferred taxes | -5,600,000 | |||||||||||||
Huntyard Limited [Member] | Non Tax Deductible [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Deferred taxes | -1,500,000 | |||||||||||||
Huntyard Limited [Member] | United Kingdom [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Number of centers acquired | 27 | |||||||||||||
Cash consideration | 110,800,000 | |||||||||||||
Scenario, Adjustment [Member] | Children's Choice Learning Centers [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Goodwill | -1,086,000 | |||||||||||||
Intangible assets consisting of customer relationships and trade names | -1,190,000 | |||||||||||||
Fixed assets | 535,000 | |||||||||||||
Goodwill | 1,200,000 | |||||||||||||
Taxes payable | 1,200,000 | |||||||||||||
Accounts payable and accrued expenses | -2,018,000 | |||||||||||||
Deferred revenue and parent deposits | 18,000 | |||||||||||||
Scenario, Adjustment [Member] | Kidsunlimited Group Limited [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Goodwill | -2,372,000 | |||||||||||||
Intangible assets consisting of customer relationships and trade names | 765,000 | |||||||||||||
Fixed assets | -192,000 | |||||||||||||
Accounts payable and accrued expenses | 3,798,000 | |||||||||||||
Cash | 0 | |||||||||||||
Deferred taxes | 245,000 | |||||||||||||
Customer Relationships [Member] | Children's Choice Learning Centers [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Amortization period of intangible assets | 11 years | |||||||||||||
Customer Relationships [Member] | Kidsunlimited Group Limited [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Amortization of intangible assets | 15,900,000 | |||||||||||||
Amortization period of intangible assets | 8 years | |||||||||||||
Customer Relationships [Member] | Huntyard Limited [Member] | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Intangible assets consisting of customer relationships and trade names | $4,700,000 | |||||||||||||
Intangible asset useful life | 5 years |
Acquisitions_Allocation_of_Pur
Acquisitions - Allocation of Purchase Price (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Mar. 31, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $1,095,738 | $1,096,283 | ||||
Children's Choice Learning Centers [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Accounts receivable | 855 | 981 | ||||
Prepaid expenses and other assets | 745 | 334 | ||||
Fixed assets | 6,172 | 5,637 | ||||
Intangible assets | 11,610 | 12,800 | ||||
Goodwill | 37,732 | 38,818 | ||||
Total assets acquired | 57,114 | 58,570 | ||||
Accounts payable and accrued expenses | -5,459 | -3,441 | ||||
Deferred revenue and parent deposits | -867 | -885 | ||||
Total liabilities assumed | -6,326 | -4,326 | ||||
Purchase price | 50,788 | 54,244 | ||||
Children's Choice Learning Centers [Member] | Scenario, Adjustment [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Accounts receivable | -126 | |||||
Prepaid expenses and other assets | 411 | |||||
Fixed assets | 535 | |||||
Intangible assets | -1,190 | |||||
Goodwill | -1,086 | |||||
Total assets acquired | -1,456 | |||||
Accounts payable and accrued expenses | -2,018 | |||||
Deferred revenue and parent deposits | 18 | |||||
Total liabilities assumed | -2,000 | |||||
Purchase price | -3,456 | |||||
Kidsunlimited Group Limited [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash | 4,888 | 4,888 | ||||
Accounts receivable | 1,809 | 1,809 | ||||
Prepaid expenses and other assets | 2,509 | 2,509 | ||||
Fixed assets | 13,709 | 13,901 | ||||
Favorable leases | 2,892 | 0 | ||||
Intangible assets | 18,207 | 17,442 | ||||
Goodwill | 53,000 | 52,977 | 55,349 | |||
Total assets acquired | 96,991 | 95,898 | ||||
Accounts payable and accrued expenses | -5,652 | -9,450 | ||||
Unfavorable leases | -7,084 | -1,759 | ||||
Deferred revenue | -4,475 | -12,853 | ||||
Other current liabilities | -8,378 | 0 | ||||
Deferred taxes | -2,490 | -2,735 | ||||
Total liabilities assumed | -28,079 | -26,797 | ||||
Purchase price | 68,912 | 69,101 | ||||
Kidsunlimited Group Limited [Member] | Scenario, Adjustment [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash | 0 | |||||
Accounts receivable | 0 | |||||
Prepaid expenses and other assets | 0 | |||||
Fixed assets | -192 | |||||
Favorable leases | 2,892 | |||||
Intangible assets | 765 | |||||
Goodwill | -2,372 | |||||
Total assets acquired | 1,093 | |||||
Accounts payable and accrued expenses | 3,798 | |||||
Unfavorable leases | -5,325 | |||||
Deferred revenue | 8,378 | |||||
Other current liabilities | -8,378 | |||||
Deferred taxes | 245 | |||||
Total liabilities assumed | -1,282 | |||||
Purchase price | ($189) |
Acquisitions_Summary_of_Operat
Acquisitions - Summary of Operating Results (Detail) (Childrens Choice Learning Centers Inc And Kids Unlimited Group Limited [Member], USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Childrens Choice Learning Centers Inc And Kids Unlimited Group Limited [Member] | ||
Business Acquisition [Line Items] | ||
Revenue | $1,260,453 | $1,179,168 |
Net income attributable to Bright Horizons Family Solutions Inc. | $16,226 | $4,504 |
Prepaid_Expenses_and_Other_Cur2
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid workers compensation insurance | $11,092 | $10,327 |
Prepaid rent and other occupancy costs | 10,672 | 7,515 |
Prepaid income taxes | 4,427 | 6,678 |
Reimbursable costs | 2,784 | 3,916 |
Favorable leases | 487 | 586 |
Prepaid insurance | 1,917 | 1,665 |
Other prepaid expenses and current assets | 7,768 | 13,334 |
Prepaid expenses and other current assets | $39,147 | $44,021 |
Fixed_Assets_Summary_of_Fixed_
Fixed Assets - Summary of Fixed Assets (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Leasehold improvements | Shorter of the lease term or the estimated useful life | |
Buildings | $131,767 | $128,715 |
Furniture, equipment and software | 144,040 | 125,713 |
Leasehold improvements | 271,757 | 247,972 |
Land | 50,604 | 52,233 |
Total fixed assets | 598,168 | 554,633 |
Accumulated depreciation and amortization | -199,221 | -163,739 |
Fixed assets, net | $398,947 | $390,894 |
Buildings [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, useful life | 20 years | |
Buildings [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, useful life | 40 years | |
Furniture, Equipment and Software [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, useful life | 3 years | |
Furniture, Equipment and Software [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets, useful life | 10 years |
Fixed_Assets_Additional_Inform
Fixed Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $48.40 | $42.70 | $34.40 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Goodwill [Roll Forward] | |
Beginning balance | $1,096,283 |
Additions from acquisitions | 11,087 |
Adjustments to Huntyard acquisition | 699 |
Effect of foreign currency translation | -12,331 |
Ending balance | 1,095,738 |
Full Service Center-based Care [Member] | |
Goodwill [Roll Forward] | |
Beginning balance | 912,134 |
Additions from acquisitions | 11,087 |
Adjustments to Huntyard acquisition | 902 |
Effect of foreign currency translation | -11,080 |
Ending balance | 913,043 |
Back-up Dependent Care [Member] | |
Goodwill [Roll Forward] | |
Beginning balance | 160,145 |
Effect of foreign currency translation | -1,251 |
Ending balance | 158,894 |
Other Educational Advisory Services [Member] | |
Goodwill [Roll Forward] | |
Beginning balance | 24,004 |
Adjustments to Huntyard acquisition | -203 |
Ending balance | $23,801 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets - Intangible Assets Subject to Amortization (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Intangible Assets [Line Items] | ||
Cost | $589,370 | $590,580 |
Accumulated amortization | -183,121 | -155,520 |
Net carrying amount | 406,249 | 435,060 |
Cost | 405,923 | 406,607 |
Accumulated amortization | -183,121 | -155,520 |
Net carrying amount | 222,802 | 251,087 |
Customer Relationship [Member] | ||
Intangible Assets [Line Items] | ||
Weighted average amortization period | 14 years 6 months | 14 years 6 months |
Cost | 400,097 | 400,481 |
Accumulated amortization | -180,900 | -153,939 |
Net carrying amount | 219,197 | 246,542 |
Trade Names [Member] | ||
Intangible Assets [Line Items] | ||
Weighted average amortization period | 8 years 1 month 6 days | 8 years 1 month 6 days |
Cost | 5,772 | 6,072 |
Accumulated amortization | -2,177 | -1,542 |
Net carrying amount | 3,595 | 4,530 |
Non-Compete Agreements [Member] | ||
Intangible Assets [Line Items] | ||
Weighted average amortization period | 5 years | 5 years |
Cost | 54 | 54 |
Accumulated amortization | -44 | -39 |
Net carrying amount | 10 | 15 |
Trade Names [Member] | ||
Intangible Assets [Line Items] | ||
Cost | 183,447 | 183,973 |
Net carrying amount | $183,447 | $183,973 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $28,999 | $30,075 | $26,933 |
Goodwill_and_Intangible_Assets5
Goodwill and Intangible Assets - Estimated Amortization Expense Related to Intangible Assets (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2015 | $26,842 |
2016 | 25,491 |
2017 | 24,618 |
2018 | 23,700 |
2019 | $22,910 |
Accounts_Payable_and_Accrued_E2
Accounts Payable and Accrued Expenses - Summary of Accounts Payable and Accrued Expenses (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Accounts payable | $12,784 | $6,691 |
Accrued payroll and employee benefits | 59,364 | 58,171 |
Accrued insurance | 16,154 | 15,110 |
Accrued interest | 1,004 | 1,861 |
Accrued occupancy costs | 3,121 | 2,167 |
Accrued professional fees | 2,169 | 1,847 |
Other accrued expenses | 21,829 | 21,779 |
Accounts payable and accrued expenses | $116,425 | $107,626 |
Other_Current_Liabilities_Summ
Other Current Liabilities - Summary of Other Current Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Customer amounts on deposit | $10,477 | $15,495 |
Deferred rent and other occupancy costs | 2,847 | 2,133 |
Unfavorable leases | 658 | 681 |
Income taxes payable | 4,802 | 0 |
Other liabilities | 1,616 | 1,993 |
Other current liabilities | $20,400 | $20,302 |
Other_LongTerm_Liabilities_Sum
Other Long-Term Liabilities - Summary of Other Long-Term Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Liabilities Disclosure [Abstract] | ||
Customer amounts on deposit | $9,199 | $8,685 |
Liability for uncertain tax positions | 1,594 | 3,647 |
Liability for unvested restricted stock | 4,709 | 0 |
Other liabilities | 7,899 | 6,674 |
Other long-term liabilities | $23,401 | $19,006 |
Credit_Arrangements_and_Debt_O2
Credit Arrangements and Debt Obligations - Schedule of Long-Term Debt (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule Of Borrowings [Line Items] | ||
Original issue discount and deferred financing costs | ($18,023) | ($17,877) |
Total debt | 921,177 | 764,223 |
Less current maturities | -9,550 | -7,900 |
Long-term debt | 911,627 | 756,323 |
Term Loan [Member] | ||
Schedule Of Borrowings [Line Items] | ||
Senior notes | $939,200 | $782,100 |
Credit_Arrangements_and_Debt_O3
Credit Arrangements and Debt Obligations - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jan. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Debt Instrument [Line Items] | |||||
Effective interest rate for the term loans | 3.80% | 4.00% | |||
Debt issuance, weighted average interest rate | 3.90% | 4.10% | |||
Outstanding borrowings | $972,500,000 | ||||
Payments to redeem debt, including redemption premium | 41,100,000 | ||||
Loss on extinguishment of debt | 63,700,000 | -63,700,000 | 0 | -63,682,000 | 0 |
Financing fees | 1,500,000 | 12,700,000 | |||
Discount and Issuance Cost | 1,700,000 | 7,900,000 | |||
Amortization of deferred financing costs | 1,900,000 | 1,700,000 | 3,700,000 | ||
Amortization expense of original issuance discount costs | 1,100,000 | 1,000,000 | 3,100,000 | ||
Debt issuance, original issue discount | 18,023,000 | 17,877,000 | |||
Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate description | Borrowings under the term loan facility bear interest at a rate per annum ranging from 1.75% to 2.0% over the Base Rate or 2.75% to 3.0% over the Eurocurrency Rate defined in the credit agreement. Borrowings under our revolving facility bear interest at a rate per annum equal to 1.75% over the Base Rate or 2.75% over the Eurocurrency Rate. | ||||
Base rate description | The Base Rate is the highest of (1) the prime rate of Goldman Sachs Bank USA, (2) the federal funds effective rate plus 0.5% and (3) the Eurocurrency Rate with a one month interest period plus 1.0%. The Eurocurrency Rate option is the one, two, three or six month LIBOR rate, as selected by the Borrower, or, with the approval of the applicable lenders, the nine, twelve or less than one month LIBOR rate. The Base Rate is subject to an interest rate floor of 2.0% and the Eurocurrency Rate is subject to an interest rate floor of 1.0%, both only with respect to the term loan facility. | ||||
Commitment fees percentage on unused portion of revolving credit facility | 0.38% | ||||
Increase in revolving credit facility | 25.00% | ||||
Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Commitment fees percentage on unused portion of revolving credit facility | 0.50% | ||||
Eurodollar Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Highest Base rate condition 2 | 1.00% | ||||
Federal Funds Effective Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Highest Base rate condition 2 | 0.50% | ||||
Term Loan Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt issuance, principal amount | 955,000,000 | ||||
Debt issuance principal payments, final payment date | 30-Jan-20 | ||||
Debt issuance, quarterly principal payments | 2,400,000 | ||||
Amended Term Loan Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt issuance, principal amount | 165,000,000 | ||||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt issuance, principal amount | $100,000,000 | ||||
Debt issuance principal payments, final payment date | 30-Jan-18 | ||||
Debt issuance, weighted average interest rate | 5.00% | 5.00% | |||
Term Loans [Member] | Bank Base Rate [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt issuance interest rate, percentage added to base | 1.75% | ||||
Term Loans [Member] | Bank Base Rate [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt issuance interest rate, percentage added to base | 2.50% | ||||
Term Loans [Member] | Eurodollar Rate [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt issuance interest rate, percentage added to base | 2.75% | ||||
Term Loans [Member] | Eurodollar Rate [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt issuance interest rate, percentage added to base | 3.50% | ||||
Revolving Credit Facilities [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt issuance interest rate, percentage added to base | 2.75% | ||||
Revolving Credit Facilities [Member] | Bank Base Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt issuance interest rate, percentage added to base | 1.75% | ||||
Prime Rate (the Base Rate) [Member] | Series C Term Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt issuance base rate, floor | 2.00% | ||||
London Interbank Offered Rate (LIBOR) [Member] | Series C Term Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt issuance base rate, floor | 1.00% |
Recovered_Sheet1
Redeemable Noncontrolling Interest - Additional Information (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Nov. 23, 2012 | Jul. 31, 2011 |
Redeemable Noncontrolling Interest [Line Items] | ||||
Ownership interest acquired | 100.00% | |||
Noncontrolling interest | 18.50% | 18.50% | ||
Netherlands [Member] | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Ownership interest acquired | 37.00% | 63.00% | ||
Noncontrolling interest | 18.50% | 18.50% | ||
Noncontrolling interest recorded | $3.90 | |||
Non controlling Interests Acquired | $4.10 |
Recovered_Sheet2
Redeemable Non-controlling Interest - Changes in Redeemable Non-controlling Interest (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Balance at beginning of the period | $0 | $8,126 | |
Sale of 18.5% of interest to BHFS | -8,204 | ||
Net (loss) income attributable to non-controlling interest | 0 | -279 | 347 |
Effect of foreign currency translation | 357 | ||
Balance at end of period | $0 | $8,126 | |
Minority Interest, percentage | 18.50% | 18.50% |
Income_Taxes_Income_Loss_Befor
Income Taxes - Income (Loss) Before Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
United States | $110,585 | $5,109 | $6,882 |
Foreign | 1,729 | -298 | 4,870 |
Income before income taxes | $112,314 | $4,811 | $11,752 |
Income_Taxes_Income_Tax_Benefi
Income Taxes - Income Tax (Benefit) Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current tax expense (benefit) | |||
Federal | $45,628 | $10,546 | $8,102 |
State | 8,753 | 591 | 2,361 |
Foreign | -726 | -5,260 | 4,434 |
Current tax expense (benefit) | 53,655 | 5,877 | 14,897 |
Deferred tax (benefit) expense | |||
Federal | -10,497 | -9,080 | -9,048 |
State | -948 | -1,179 | -1,453 |
Foreign | -1,931 | -3,151 | -1,153 |
Deferred tax (benefit) expense | -13,376 | -13,410 | -11,654 |
Income tax (benefit) expense | $40,279 | ($7,533) | $3,243 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Federal Statutory Rate to Effective Rate (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Federal tax expense computed at statutory rate | $39,310 | $1,684 | $4,113 |
State tax (benefit) expense, net of federal tax | 5,121 | -193 | 416 |
Valuation allowance, net | 245 | 3 | 23 |
Permanent differences and other, net | 277 | -234 | 551 |
Change in tax rate | -134 | -94 | 12 |
Change to uncertain tax positions, net | -1,523 | -4,850 | -869 |
Foreign rate differential | -3,017 | -3,849 | -1,003 |
Income tax (benefit) expense | $40,279 | ($7,533) | $3,243 |
Income_Taxes_Components_of_Net
Income Taxes - Components of Net Deferred Tax Liability (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Net non-current deferred tax assets | $580 | $236 |
Net current deferred tax assets | 13,059 | 12,873 |
Total net deferred tax assets | 44,021 | 43,414 |
Deferred tax liabilities: | ||
Intangible assets | -143,732 | -152,462 |
Depreciation | -13,686 | -17,805 |
Total deferred tax liabilities | -157,418 | -170,267 |
Net deferred tax liability | -113,397 | -126,853 |
Current Assets [Member] | ||
Deferred tax assets: | ||
Reserve on assets | 466 | 869 |
Liabilities not yet deductible | 11,582 | 10,874 |
Deferred revenue | 771 | 708 |
Other | 191 | 496 |
Deferred tax assets, gross | 13,010 | 12,947 |
Valuation allowance | -32 | -6 |
Net current deferred tax assets | 12,978 | 12,941 |
Non-Current Assets [Member] | ||
Deferred tax assets: | ||
Net operating loss and credit carryforwards | 1,659 | 1,983 |
Liabilities not yet deductible | 16,463 | 14,264 |
Deferred revenue | 1,953 | 1,090 |
Stock-based compensation | 10,964 | 11,663 |
Deferred financing costs | 73 | 0 |
Other | 1,195 | 2,519 |
Deferred tax assets, gross | 32,307 | 31,519 |
Valuation allowance | -1,264 | -1,046 |
Net non-current deferred tax assets | $31,043 | $30,473 |
Income_Taxes_Reconciliation_of1
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $2,034 | $7,412 | $7,933 |
Additions for tax positions of prior years | 0 | 540 | 474 |
Additions for tax positions of current year | 0 | 0 | 879 |
Settlements | 0 | -1,110 | -474 |
Reductions for tax positions of prior years | -490 | -4,108 | -845 |
Lapses of statutes of limitations | -831 | -712 | -778 |
Effect of foreign currency adjustments | 0 | 12 | 223 |
Ending balance | $713 | $2,034 | $7,412 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Line Items] | |||
Deferred tax asset, net operating losses, foreign | $1,600,000 | ||
Deferred tax asset, net operating loss, state | 100,000 | ||
Deferred tax liability | 157,418,000 | 170,267,000 | |
Undistributed earnings of foreign subsidiaries | 60,100,000 | ||
Likelihood for being realized upon settlement | 50.00% | ||
Income tax expense, interest and penalties related to tax positions | 30,000 | 100,000 | 300,000 |
Liability for interest and penalties | 900,000 | 1,600,000 | |
Unrecognized tax benefits that would impact the effective tax rate | 700,000 | ||
Minimum [Member] | |||
Income Tax Disclosure [Line Items] | |||
Change in uncertain tax positions | 700,000 | ||
Maximum [Member] | |||
Income Tax Disclosure [Line Items] | |||
Change in uncertain tax positions | 0 | ||
Foreign [Member] | |||
Income Tax Disclosure [Line Items] | |||
Net operating loss, expiration | Begin to expire in 2031 | ||
Net operating loss | 10,200,000 | ||
Foreign [Member] | Valuation Allowance, Other Tax Carryforward [Member] | |||
Income Tax Disclosure [Line Items] | |||
Valuation allowance, net operating losses | 1,300,000 | ||
Valuation Allowance, Deferred Tax Asset, Change in Amount | 200,000 | ||
Foreign [Member] | Minimum [Member] | |||
Income Tax Disclosure [Line Items] | |||
Statute of limitations | 1 year | ||
Foreign [Member] | Maximum [Member] | |||
Income Tax Disclosure [Line Items] | |||
Statute of limitations | 7 years | ||
State [Member] | |||
Income Tax Disclosure [Line Items] | |||
Net operating loss, expiration | Expiration dates through 2031 | ||
Number of income tax audits pending | 4 | ||
Tax year subject to audit, start | 2010 | ||
Tax year subject to audit, end | 2014 | ||
State [Member] | Federal Changes [Member] | |||
Income Tax Disclosure [Line Items] | |||
Statute of limitations | 1 year | ||
State [Member] | Minimum [Member] | |||
Income Tax Disclosure [Line Items] | |||
Statute of limitations | 3 years | ||
State [Member] | Maximum [Member] | |||
Income Tax Disclosure [Line Items] | |||
Statute of limitations | 5 years | ||
Federal State and Foreign [Member] | |||
Income Tax Disclosure [Line Items] | |||
Deferred tax liability | $7,800,000 | ||
Domestic Tax Authority [Member] | |||
Income Tax Disclosure [Line Items] | |||
Statute of limitations | 3 years |
Stockholders_Equity_and_StockB2
Stockholder's Equity and Stock-Based Compensation - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | ||||||||
Jan. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 11, 2013 | Jan. 31, 2013 | Dec. 10, 2014 | Mar. 28, 2014 | Mar. 25, 2014 | Jun. 19, 2013 | Feb. 04, 2015 | Jan. 24, 2013 | 2-May-12 | |
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||
Common stock conversion ratio, Class L common stock into Class A common stock | 35.1955 | ||||||||||||
Issuance of Class L common stock (in shares) | 11,600,000 | ||||||||||||
Number of preferred stock issuable by BOD | 25,000,000 | 25,000,000 | 25,000,000 | ||||||||||
Shares repurchased (in shares) | 5,000,000 | 0 | 41,454 | ||||||||||
Shares repurchased | $221,577,000 | $497,000 | |||||||||||
Stock compensation expense | 7,900,000 | ||||||||||||
Income tax benefit related to share based compensation | 3,200,000 | 4,300,000 | 7,100,000 | ||||||||||
Stock-based compensation expense | 5,000,000 | 15,100,000 | |||||||||||
Fair value of options that vested | 3,900,000 | 9,100,000 | 4,900,000 | ||||||||||
Cash received from exercise of stock options | 17,400,000 | 11,000,000 | 2,100,000 | ||||||||||
Tax benefit realized from exercise of stock options | 9,100,000 | 5,900,000 | 3,400,000 | ||||||||||
2008 Equity Incentive Plan [Member] | |||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||
Stock options, unrecognized compensation cost | 14,100,000 | ||||||||||||
Stock-based compensation expense | 5,000,000 | ||||||||||||
Options to purchase common stock | 1,300,000 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Remaining Award Requisite Service Period | 3 years | ||||||||||||
Board of Directors Chairman [Member] | |||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||
Number of preferred stock issuable by BOD | 25,000,000 | ||||||||||||
Common Stock A [Member] | |||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||
Reverse split ratio of class A common stock | 1.9704 | ||||||||||||
Common Stock A [Member] | 2008 Equity Incentive Plan [Member] | |||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||
Shares available for issuance | 1,500,000 | ||||||||||||
Common Stock Class L [Member] | |||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||
Issuance of Class L common stock (in shares) | 18,610 | ||||||||||||
Shares repurchased (in shares) | 9,076 | ||||||||||||
Shares repurchased | 4,643,000 | ||||||||||||
Common Stock Class L [Member] | 2008 Equity Incentive Plan [Member] | |||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||
Shares available for issuance | 150,000 | ||||||||||||
Undesignated Preferred Stock [Member] | |||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||
Common stock reclassified, authorized (in shares) | 25,000,000 | ||||||||||||
2012 Omnibus Long-Term Incentive Plan [Member] | |||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||
Shares available for grant (in shares) | 3,400,000 | ||||||||||||
Shares available for issuance | 5,000,000 | ||||||||||||
2012 Omnibus Long-Term Incentive Plan [Member] | Minimum [Member] | |||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||
Option expiration | 7 years | ||||||||||||
Stock Option Exchange [Member] | |||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||
Stock options, unrecognized compensation cost | 19,000,000 | ||||||||||||
Stock compensation expense | 100,000 | 13,400,000 | 5,000,000 | ||||||||||
Stock options unrecognized compensation cost, period of recognition | 1 year | ||||||||||||
Vested Stock Options [Member] | |||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||
Stock compensation expense | 3,500,000 | ||||||||||||
Option awards granted in prior years [Member] | |||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||
Stock compensation expense | 700,000 | ||||||||||||
Five Year Service Period Based Stock Option [Member] | |||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||
Requisite service period | 5 years | ||||||||||||
Ratable\Cliff vesting period | 3 years | ||||||||||||
Five Year Service Period Based Stock Option [Member] | Second Anniversary [Member] | |||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||
Vesting percentage | 40.00% | ||||||||||||
Five Year Service Period Based Stock Option [Member] | Third Anniversary [Member] | |||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||
Vesting percentage | 20.00% | ||||||||||||
Five Year Service Period Based Stock Option [Member] | Fourth Anniversary [Member] | |||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||
Vesting percentage | 20.00% | ||||||||||||
Five Year Service Period Based Stock Option [Member] | Fifth Anniversary [Member] | |||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||
Vesting percentage | 20.00% | ||||||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||
Ratable\Cliff vesting period | 5 years | ||||||||||||
Granted (in shares) | 6,066 | ||||||||||||
Granted (in dollars per share) | $39.58 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Fair Value | 200,000 | ||||||||||||
Selling, General and Administrative Expenses [Member] | |||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||
Stock compensation expense | 7,300,000 | 10,700,000 | 17,600,000 | ||||||||||
Cost of Sales [Member] | |||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||
Stock compensation expense | 600,000 | ||||||||||||
Secondary Offering [Member] | |||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||
Issuance of Class L common stock (in shares) | 8,000,000 | 7,900,000 | 9,800,000 | ||||||||||
Shares authorized to be repurchased by BOD | 225,000,000 | ||||||||||||
Shares repurchased (in shares) | 4,500,000 | ||||||||||||
Shares repurchased | 201,600,000 | ||||||||||||
Restricted Stock [Member] | |||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding | 7,500,000 | ||||||||||||
Ratable\Cliff vesting period | 3 years | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 259,525 | ||||||||||||
Percentage of price of Common Stock that preferred shares sold for | 50.00% | ||||||||||||
Share Price | $18.15 | ||||||||||||
Subsequent Event [Member] | |||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||
Shares authorized to be repurchased by BOD | 250,000,000 | ||||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $3,400,000 |
Stockholders_Equity_and_StockB3
Stockholders' Equity and Stock-Based Compensation - Reconciliation of Changes in Class L Common Stock (Detail) (USD $) | 0 Months Ended | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jan. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Temporary Equity, Shares Outstanding [Roll Forward] | ||||
Issuance of Class L common stock (in shares) | 11,600,000 | |||
Repurchase of Class L common stock (in shares) | -5,000,000 | 0 | -41,454 | |
Repurchase of Class L common stock | ($221,577) | ($497) | ||
Accretion of Class L preferred return | 0 | 0 | 84,647 | |
Common Stock Class L [Member] | ||||
Temporary Equity, Shares Outstanding [Roll Forward] | ||||
Class L common stock, balance at beginning of period (in shares) | 1,327,115 | 1,318,970 | ||
Class L common stock, balance at beginning of period (in shares) | 1,327,115 | 1,317,581 | ||
Issuance of Class L common stock (in shares) | 18,610 | |||
Repurchase of Class L common stock (in shares) | -9,076 | |||
Retirement of treasury stock (in shares) | -10,465 | |||
Class L common stock, balance at end of period (in shares) | 0 | 1,327,115 | ||
Class L common stock, balance at end of period (in shares) | 0 | 1,327,115 | ||
Conversion of Class L common stock into Common Stock (in shares) | -1,327,115 | |||
Class L common stock, balance at beginning of period | 854,101 | 772,422 | ||
Issuance of Class L common stock | 1,675 | |||
Repurchase of Class L common stock | -4,643 | |||
Accretion of Class L preferred return | 84,647 | |||
Class L common stock, balance at end of period | 0 | 854,101 | ||
Conversion of Class L common stock into Common Stock | ($854,101) |
Stockholders_Equity_and_StockB4
Stockholders' Equity and Stock-Based Compensation - Weighted Average Assumptions for Fair Value of Stock Option (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Common Stock [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Method Used [Line Items] | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected stock price volatility | 30.00% | 44.30% | 79.20% |
Risk free interest rate | 1.80% | 1.00% | 0.68% |
Expected life of options (years) | 5 years 3 months 7 days | 5 years 3 months 7 days | 4 years 1 month 28 days |
Weighted average fair value per share of options granted during the period | $11.36 | $10.24 | $6.84 |
Common Stock Class L [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Method Used [Line Items] | |||
Expected dividend yield | 0.00% | ||
Expected stock price volatility | 79.20% | ||
Risk free interest rate | 0.68% | ||
Expected life of options (years) | 4 years 1 month 28 days | ||
Weighted average fair value per share of options granted during the period | $291.83 |
Stockholders_Equity_and_StockB5
Stockholders' Equity and Stock-Based Compensation - Stock Option Activity Under Equity Plan (Detail) (Common Stock [Member], USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Common Stock [Member] | |||
Equity [Line Items] | |||
Outstanding, years, duration | 5 years 7 months 6 days | 6 years 1 month 6 days | |
Exercisable, years, duration | 4 years 10 months 24 days | ||
Vested and expected to vest, years, duration | 5 years 7 months 6 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding at beginning of period (in shares) | 4,555,110 | ||
Granted (in shares) | 944,377 | ||
Exercised (in shares) | -1,212,458 | -916,695 | -86,066 |
Forfeited (in shares) | -134,412 | ||
Outstanding at end of period (in shares) | 4,152,617 | 4,555,110 | |
Exercisable at end of period (in shares) | 2,177,394 | ||
Vested and expected to vest at December 31, 2014 (in shares) | 4,054,468 | ||
Outstanding at beginning of period (in dollars per share) | $15.39 | ||
Granted (in dollars per share) | $37.15 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Intrinsic Value | $9.30 | ||
Exercised (in dollars per share) | $14.37 | ||
Forfeited (in dollars per share) | $27.77 | ||
Outstanding at end of period (in dollars per share) | $20.24 | $15.39 | |
Exercisable at end of period (in dollars per share) | $14.20 | ||
Vested and expected to vest at end of period (in dollars per share) | $20.08 | ||
Outstanding at beginning of period | 97.3 | ||
Exercised | 32.3 | ||
Forfeited | 2.6 | ||
Outstanding at end of period | 111.2 | 97.3 | |
Exercisable at December 31, 2014 | 71.5 | ||
Vested and expected to vest at end of period | $109.20 |
Earnings_Per_Share_Computation
Earnings Per Share - Computation of Basic and Diluted Earnings Per Common Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Calculation Of Numerator And Denominator In Earnings Per Share [Line Items] | |||||||||||
Net (loss) income attributable to Bright Horizons Family Solutions Inc | $18,894 | $15,379 | $21,714 | $16,048 | $23,743 | $15,044 | $24,579 | ($50,743) | $72,035 | $12,623 | $8,162 |
Accretion of Class L preference | 0 | 0 | 79,211 | ||||||||
Accretion of Class L preference for vested options | 0 | 0 | 5,436 | ||||||||
Net income (loss) available to common shareholders | 72,035 | 12,623 | -76,485 | ||||||||
Net income (loss) available to common shareholders - basic | 18,819 | 15,319 | 21,629 | 15,988 | 23,743 | 15,044 | 24,579 | -50,743 | 71,755 | 12,623 | -76,485 |
Net income (loss) available to unvested participating shares - basic | 280 | 0 | 0 | ||||||||
Plus earnings allocated to unvested participating shares | -274 | 0 | 0 | ||||||||
Earnings allocated to common stock | $71,761 | $12,623 | ($76,485) | ||||||||
Weighted average number of common shares: | |||||||||||
Weighted average number of common shares - basic | 65,612,572 | 62,659,264 | 6,058,512 | ||||||||
Weighted average number of common shares - diluted | 67,244,172 | 64,509,036 | 6,058,512 | ||||||||
Earnings (loss) per common share: | |||||||||||
Common stock-basic (in dollars per share) | $0.29 | $0.23 | $0.33 | $0.24 | $0.36 | $0.23 | $0.38 | ($0.91) | $1.09 | $0.20 | ($12.62) |
Common stock-diluted (in dollars per share) | $0.28 | $0.23 | $0.32 | $0.24 | $0.35 | $0.23 | $0.37 | ($0.91) | $1.07 | $0.20 | ($12.62) |
Common Stock Class L [Member] | |||||||||||
Weighted average number of common shares: | |||||||||||
Weighted average number of common shares - basic | 0 | 0 | 1,326,206 | ||||||||
Earnings (loss) per common share: | |||||||||||
Common stock-basic (in dollars per share) | $0 | $0 | $59.73 | ||||||||
Common stock-diluted (in dollars per share) | $0 | $0 | $59.73 | ||||||||
Common Stock [Member] | |||||||||||
Weighted average number of common shares: | |||||||||||
Weighted average number of common shares - basic | 65,612,572 | 62,659,264 | 6,058,512 | ||||||||
Weighted average number of common shares - effect of dilutive securities | 1,631,600 | 1,849,772 | 0 | ||||||||
Weighted average number of common shares - diluted | 67,244,172 | 64,509,036 | 6,058,512 | ||||||||
Earnings (loss) per common share: | |||||||||||
Common stock-basic (in dollars per share) | $1.09 | $0.20 | ($12.62) | ||||||||
Common stock-diluted (in dollars per share) | $1.07 | $0.20 | ($12.62) | ||||||||
Common Stock [Member] | Unvested Participating Shares [Member] | |||||||||||
Weighted average number of common shares: | |||||||||||
Weighted average number of common shares - basic | 255,920 | 0 | 0 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) (Employee Stock Option [Member]) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Common Stock [Member] | |||
Earnings Per Share [Line Items] | |||
Options outstanding to purchase (in shares) | 0.7 | 0.1 | 0.6 |
Common Stock Class L [Member] | |||
Earnings Per Share [Line Items] | |||
Options outstanding to purchase (in shares) | 0.1 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) | 12 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | |
USD ($) | USD ($) | USD ($) | Overdraft Facility [Member] | Overdraft Facility [Member] | Overdraft Facility [Member] | Overdraft Facility [Member] | Overdraft Facility [Member] | Overdraft Facility [Member] | Maximum [Member] | |
LetterOfCredit | Bank Base Rate [Member] | Dutch Bank [Member] | Dutch Bank [Member] | Dutch Bank [Member] | United Kingdom Bank [Member] | United Kingdom Bank [Member] | ||||
EUR (€) | USD ($) | EUR (€) | USD ($) | EUR (€) | ||||||
Contingencies And Commitments [Line Items] | ||||||||||
Operating leases, years until expiration | 10 years | |||||||||
Rent expense | $88,700,000 | $76,800,000 | $62,800,000 | |||||||
Available overdraft facility for maximum borrowing | 400,000 | 300,000 | ||||||||
Interest rate of overdraft facility | 2.15% | |||||||||
Line of credit terminated | 0 | 140,800,000 | 0 | 2,200,000 | ||||||
Borrowings outstanding on the revolving credit facility | 700,000 | 500,000 | ||||||||
Weighted average interest rate | 3.90% | 4.10% | 5.53% | 5.61% | 5.61% | |||||
Number of letters of credit outstanding | 23 | |||||||||
Letters of credit, amount guaranteed | $1,100,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Future Minimum Payments under Non-Cancelable Operating Leases (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2015 | $84,684 |
2016 | 82,274 |
2017 | 75,469 |
2018 | 70,526 |
2019 | 64,819 |
Thereafter | 362,722 |
Total future minimum lease payments | $740,494 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Future Minimum Payments of Long-term Debt (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2015 | $9,550 |
2016 | 9,550 |
2017 | 9,550 |
2018 | 9,550 |
2019 | 9,550 |
Thereafter | 891,450 |
Total future principal payments | $939,200 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Y | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Stock-based compensation expense | $5,000,000 | $15,100,000 | |
401(k) Retirement Savings Plan [Member] | |||
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 maximum annual contribution per employee, percentage | 8.00% | ||
Retirement plan Company contributions and administrative expenses | 2,300,000 | 2,100,000 | 2,000,000 |
Retirement savings plan, age to be eligible | 20.5 | ||
Retirement savings plan, eligibility period | 12 months | ||
Retirement savings plan, eligibility service hours | 1000 hours | ||
Nonqualified Deferred Compensation Plan [Member] | |||
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 | ||
Postemployment benefits liability | $300,000 | ||
Minimum [Member] | 401(k) Retirement Savings Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Retirement savings plan, eligibility period | 60 days | ||
Retirement savings plan, eligibility service hours | 160 hours |
Segment_and_Geographic_Informa2
Segment and Geographic Information - Income from Operations by Segment (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $337,768 | $334,976 | $348,100 | $332,155 | $319,177 | $308,663 | $310,813 | $280,123 | $1,352,999 | $1,218,776 | $1,070,938 |
Amortization of intangible assets | 28,999 | 30,075 | 26,933 | ||||||||
Income from operations | 37,328 | 33,046 | 42,535 | 34,011 | 30,411 | 27,789 | 35,397 | 15,437 | 146,920 | 109,034 | 95,464 |
Operating Segments [Member] | Full Service Center-based Care [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 1,156,661 | 1,049,854 | 922,214 | ||||||||
Amortization of intangible assets | 27,696 | 29,048 | 25,906 | ||||||||
Income from operations | 92,229 | 67,287 | 60,154 | ||||||||
Operating Segments [Member] | Back-up Dependent Care [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 162,886 | 144,432 | 130,082 | ||||||||
Amortization of intangible assets | 725 | 725 | 725 | ||||||||
Income from operations | 49,317 | 39,710 | 33,863 | ||||||||
Operating Segments [Member] | Other Educational Advisory Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 33,452 | 24,490 | 18,642 | ||||||||
Amortization of intangible assets | 578 | 302 | 302 | ||||||||
Income from operations | $5,374 | $2,037 | $1,447 |
Segment_and_Geographic_Informa3
Segment and Geographic Information - Income from Operations by Segment - Footnotes (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Operating income loss | $5 | $15.10 | |
Expenses incurred in connection with the Offering | 2.7 | 1.3 | 1.8 |
Sponsor [Member] | |||
Segment Reporting Information [Line Items] | |||
Agreement termination fee | 7.5 | ||
Full Service Center-based Care [Member] | |||
Segment Reporting Information [Line Items] | |||
Acquisition related expenses | 4 | ||
Contract Termination And Stock Option Expenses | 2.4 | ||
Expenses incurred in connection with the modification of stock options | 15.1 | 12.5 | |
Back-up Dependent Care [Member] | |||
Segment Reporting Information [Line Items] | |||
Contract Termination And Stock Option Expenses | 0.3 | ||
Expenses incurred in connection with the modification of stock options | 1.9 | 3.1 | |
Other Educational Advisory Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Expenses incurred in connection with the modification of stock options | $0.80 | $1.30 |
Segment_and_Geographic_Informa4
Segment and Geographic Information - Revenue and Long-Lived Assets by Geographic Region (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $337,768 | $334,976 | $348,100 | $332,155 | $319,177 | $308,663 | $310,813 | $280,123 | $1,352,999 | $1,218,776 | $1,070,938 |
Long-lived assets | 398,947 | 390,894 | 398,947 | 390,894 | |||||||
North America [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 1,074,951 | 980,537 | 901,210 | ||||||||
Long-lived assets | 277,971 | 260,483 | 277,971 | 260,483 | |||||||
Europe and Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 278,048 | 238,239 | 169,728 | ||||||||
Long-lived assets | $120,976 | $130,411 | $120,976 | $130,411 |
Segment_and_Geographic_Informa5
Segment and Geographic Information - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $337,768 | $334,976 | $348,100 | $332,155 | $319,177 | $308,663 | $310,813 | $280,123 | $1,352,999 | $1,218,776 | $1,070,938 |
Long-lived assets | 398,947 | 390,894 | 398,947 | 390,894 | |||||||
United States [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,100,000 | 975,500 | 896,100 | ||||||||
Long-lived assets | 275,700 | 257,800 | 275,700 | 257,800 | |||||||
United Kingdom [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 239,600 | 204,700 | 136,100 | ||||||||
Long-lived assets | $104,000 | $108,900 | $104,000 | $108,900 |
Transactions_with_Related_Part1
Transactions with Related Parties - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Jan. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 10, 2014 | Mar. 25, 2014 | Jun. 19, 2013 |
Related Party Transaction [Line Items] | |||||||
Shares repurchased (in shares) | 5,000,000 | 0 | 41,454 | ||||
Issuance of Class L common stock (in shares) | 11,600,000 | ||||||
Sponsor [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Annual payment under the agreement | 2.5 | ||||||
Agreement expiration date | 31-May-18 | ||||||
Agreement termination fee | 7.5 | ||||||
Percentage of common stock held by investment funds affiliated with sponsor | 42.30% | ||||||
Secondary Offering [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Shares repurchased (in shares) | 4,500,000 | ||||||
Issuance of Class L common stock (in shares) | 8,000,000 | 7,900,000 | 9,800,000 | ||||
Secondary Offering [Member] | Sponsor [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Shares repurchased (in shares) | 4,500,000 |
Quarterly_Results_Unaudited_Sc
Quarterly Results (Unaudited) - Schedule of Quarterly Financial Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Jan. 30, 2013 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interim Reporting [Line Items] | ||||||||||||
Revenue | $337,768 | $334,976 | $348,100 | $332,155 | $319,177 | $308,663 | $310,813 | $280,123 | $1,352,999 | $1,218,776 | $1,070,938 | |
Gross profit | 80,478 | 72,861 | 83,114 | 77,149 | 71,216 | 68,505 | 75,425 | 65,790 | 313,602 | 280,936 | 245,770 | |
Income from operations | 37,328 | 33,046 | 42,535 | 34,011 | 30,411 | 27,789 | 35,397 | 15,437 | 146,920 | 109,034 | 95,464 | |
Net (loss) income | 18,894 | 15,379 | 21,714 | 16,048 | 23,676 | 14,942 | 24,507 | -50,781 | 72,035 | 12,344 | 8,509 | |
Net (loss) income attributable to Bright Horizons Family Solutions Inc | 18,894 | 15,379 | 21,714 | 16,048 | 23,743 | 15,044 | 24,579 | -50,743 | 72,035 | 12,623 | 8,162 | |
Net income (loss) available to common shareholders - basic | 18,819 | 15,319 | 21,629 | 15,988 | 23,743 | 15,044 | 24,579 | -50,743 | 71,755 | 12,623 | -76,485 | |
Net income (loss) available to common shareholders - diluted | 18,820 | 15,320 | 21,631 | 15,990 | 71,761 | 12,623 | -76,485 | |||||
Earnings (loss) per share: | ||||||||||||
Common stock - basic | $0.29 | $0.23 | $0.33 | $0.24 | $0.36 | $0.23 | $0.38 | ($0.91) | $1.09 | $0.20 | ($12.62) | |
Common stock - diluted | $0.28 | $0.23 | $0.32 | $0.24 | $0.35 | $0.23 | $0.37 | ($0.91) | $1.07 | $0.20 | ($12.62) | |
Loss on extinguishment of debt | $63,700 | ($63,700) | $0 | ($63,682) | $0 |