Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 19, 2016 | Jun. 30, 2015 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | BRIGHT HORIZONS FAMILY SOLUTIONS INC. | ||
Entity Central Index Key | 1,437,578 | ||
Current Fiscal Year End Date | --12-31 | ||
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 | 59,759,611 | ||
Entity Public Float | $ 2,145,919,734 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 11,539 | $ 87,886 |
Accounts receivable—net | 97,295 | 83,066 |
Prepaid expenses and other current assets | 43,879 | 39,147 |
Current deferred income taxes | 0 | 13,059 |
Total current assets | 152,713 | 223,158 |
Fixed assets—net | 429,736 | 398,947 |
Goodwill | 1,147,809 | 1,095,738 |
Other intangibles—net | 389,331 | 406,249 |
Deferred income taxes | 0 | 580 |
Other assets | 30,952 | 16,404 |
Total assets | 2,150,541 | 2,141,076 |
Current liabilities: | ||
Current portion of long-term debt | 9,550 | 9,550 |
Borrowings on revolving line of credit | 24,000 | 0 |
Accounts payable and accrued expenses | 114,776 | 116,425 |
Deferred revenue | 137,283 | 133,048 |
Other current liabilities | 19,734 | 20,400 |
Total current liabilities | 305,343 | 279,423 |
Long-term debt—net | 905,661 | 911,627 |
Deferred rent and related obligations | 50,039 | 43,105 |
Other long-term liabilities | 44,182 | 23,401 |
Deferred revenue | 4,608 | 5,525 |
Deferred income taxes | 113,100 | 127,036 |
Total liabilities | $ 1,422,933 | $ 1,390,117 |
Commitments and contingencies (Note 14) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 25,000,000 shares authorized and no shares issued or outstanding at December 31, 2015 and 2014 | $ 0 | $ 0 |
Common stock, $0.001 par value; 475,000,000 shares authorized; 60,008,136 and 61,534,802 shares issued and outstanding at December 31, 2015 and 2014, respectively | 60 | 62 |
Additional paid-in capital | 983,398 | 1,083,091 |
Accumulated other comprehensive loss | (39,270) | (21,687) |
Accumulated deficit | (216,580) | (310,507) |
Total stockholders’ equity | 727,608 | 750,959 |
Total liabilities and stockholders’ equity | $ 2,150,541 | $ 2,141,076 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, Issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 475,000,000 | 475,000,000 |
Common stock, issued | 60,008,136 | 61,534,802 |
Common stock, outstanding | 60,008,136 | 61,534,802 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Revenue | $ 1,458,445,000 | $ 1,352,999,000 | $ 1,218,776,000 |
Cost of services | 1,100,690,000 | 1,039,397,000 | 937,840,000 |
Gross profit | 357,755,000 | 313,602,000 | 280,936,000 |
Selling, general and administrative expenses | 148,164,000 | 137,683,000 | 141,827,000 |
Amortization of intangible assets | 27,989,000 | 28,999,000 | 30,075,000 |
Income from operations | 181,602,000 | 146,920,000 | 109,034,000 |
Loss on extinguishment of debt | 0 | 0 | (63,682,000) |
Interest income | 163,000 | 103,000 | 85,000 |
Interest expense | (41,609,000) | (34,709,000) | (40,626,000) |
Income before income taxes | 140,156,000 | 112,314,000 | 4,811,000 |
Income tax (expense) benefit | (46,229,000) | (40,279,000) | 7,533,000 |
Net income | 93,927,000 | 72,035,000 | 12,344,000 |
Net loss attributable to non-controlling interest | 0 | 0 | (279,000) |
Net income attributable to Bright Horizons Family Solutions Inc. | 93,927,000 | 72,035,000 | 12,623,000 |
Net income (loss) available to common shareholders - basic | 93,287,000 | 71,755,000 | 12,623,000 |
Net income (loss) available to common shareholders - diluted | $ 93,303,000 | $ 71,761,000 | $ 12,623,000 |
Earnings per share: | |||
Common stock-basic (in dollars per share) | $ 1.53 | $ 1.09 | $ 0.20 |
Common stock-diluted (in dollars per share) | $ 1.50 | $ 1.07 | $ 0.20 |
Weighted average number of common shares outstanding: | |||
Common stock-basic (in shares) | 60,835,574 | 65,612,572 | 62,659,264 |
Common stock-diluted (in shares) | 62,360,778 | 67,244,172 | 64,509,036 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 93,927 | $ 72,035 | $ 12,344 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (17,583) | (23,103) | 10,589 |
Total other comprehensive income (loss) | (17,583) | (23,103) | 10,589 |
Comprehensive income (loss) | 76,344 | 48,932 | 22,933 |
Less: Comprehensive income (loss) attributable to non-controlling interest | 0 | 0 | 78 |
Comprehensive income attributable to Bright Horizons Family Solutions Inc. | $ 76,344 | $ 48,932 | $ 22,855 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid In Capital [Member] | Treasury Stock, at Cost [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] |
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 additional non-controlling interest | 4,066 | 4,291 | (225) | |||
Translation adjustments, net of non-controlling interest | 10,457 | 10,457 | ||||
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) | ||||
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 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock-based compensation | 9,200 | 9,200 | ||||
Exercise of stock options | 9,811 | $ 0 | 9,811 | |||
Exercise of stock options (shares) | 694,381 | |||||
Tax benefit from stock option exercises | 9,397 | 9,397 | ||||
Purchase of treasury stock | (128,103) | (128,103) | ||||
Retirement of treasury stock | 0 | $ (2) | (128,101) | 128,103 | ||
Retirement of treasury stock (in shares) | (2,221,047) | |||||
Translation adjustments, net of non-controlling interest | (17,583) | (17,583) | ||||
Net Income (Loss) Attributable to Parent | 93,927 | 93,927 | ||||
Balance at Dec. 31, 2015 | $ 727,608 | $ 60 | $ 983,398 | $ 0 | $ (39,270) | $ (216,580) |
Balance (shares) at Dec. 31, 2015 | 60,008,136 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Stockholders' Equity (Deficit) (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2013USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Initial Public offering, net of offering costs | $ 0 |
Translation adjustments, attributable to non-controlling interest | $ 357 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 93,927 | $ 72,035 | $ 12,344 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 78,666 | 77,447 | 72,808 |
Loss on extinguishment of debt | 0 | 0 | 63,682 |
Amortization of original issue discount and deferred financing costs | 3,583 | 3,052 | 2,763 |
Interest paid in kind | 0 | 0 | 2,143 |
Non-cash revenue and other | 191 | (149) | (618) |
Impairment losses on long-lived assets | 41 | 206 | 765 |
Loss on disposal of fixed assets | 351 | 667 | 566 |
Stock-based compensation | 9,200 | 7,922 | 10,692 |
Deferred income taxes | (758) | (13,376) | (13,410) |
Deferred rent | 2,736 | 3,092 | 2,985 |
Changes in assets and liabilities: | |||
Accounts receivable | (13,340) | (4,604) | (11,458) |
Prepaid expenses and other current assets | 3,825 | 2,174 | (5,393) |
Income taxes | (12,073) | 3,505 | (13,386) |
Accounts payable and accrued expenses | (6,448) | 9,589 | 365 |
Deferred revenue | 2,955 | 14,259 | 22,350 |
Accrued rent and related obligations | 4,642 | 3,222 | 2,180 |
Other assets | (14,296) | (1,672) | 149 |
Other current and long-term liabilities | 16,854 | (3,072) | 10,152 |
Net cash provided by operating activities | 170,056 | 174,297 | 159,679 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of fixed assets | (77,785) | (66,194) | (69,509) |
Proceeds from the disposal of fixed assets | 50 | 385 | 189 |
Purchase of long-term investments | 0 | 0 | (2,000) |
Settlement of purchase price for prior year acquisitions | 23 | 1,030 | 0 |
Payments for acquisitions—net of cash acquired | (77,642) | (13,222) | (129,812) |
Net cash used in investing activities | (155,354) | (78,001) | (201,132) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Borrowings of long-term debt, net of issuance costs of $3.2 million in 2014 and $20.6 million in 2013 | 0 | 161,803 | 769,360 |
Extinguishment of long-term debt | 0 | 0 | (972,468) |
Proceeds from initial public offering, net of issuance costs of $20.6 million | 0 | 0 | 234,944 |
Borrowings under revolving line of credit | 267,300 | 0 | 140,800 |
Payments of revolving line of credit | (243,300) | 0 | (140,800) |
Principal payments of long-term debt | (9,550) | (7,900) | (7,900) |
Purchase of non-controlling interest | 0 | 0 | (4,138) |
Purchase of treasury stock | (128,103) | (221,577) | 0 |
Proceeds from issuance of common stock upon exercise of options | 9,811 | 17,422 | 11,040 |
Proceeds from issuance of restricted stock | 3,864 | 4,709 | 0 |
Excess tax benefits from stock-based compensation | 9,397 | 9,123 | 5,923 |
Net cash (used in) provided by financing activities | (90,581) | (36,420) | 36,761 |
Effect of exchange rates on cash and cash equivalents | (468) | (1,575) | 168 |
Net (decrease) increase in cash and cash equivalents | (76,347) | 58,301 | (4,524) |
Cash and cash equivalents-beginning of period | 87,886 | 29,585 | 34,109 |
Cash and cash equivalents-end of period | 11,539 | 87,886 | 29,585 |
SUPPLEMENTAL CASH FLOW INFORMATION: | |||
Cash payments of interest | 38,110 | 32,473 | 34,928 |
Cash payments of income taxes | 49,819 | 41,713 | 13,931 |
Non-cash conversion of Class L common stock | 0 | 0 | 854,101 |
Fixed asset purchases recorded in accounts payable and accrued expenses | $ 2,000 | $ 3,000 | $ 0 |
Consolidated Statements of Cas9
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Cash Flows [Abstract] | ||
Borrowings of long-term debt, deferred financing costs and original issuance discount | $ 3.2 | $ 20.6 |
Initial public offering, net of issuance costs | $ 0 | $ 20.6 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
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 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, 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. Stock Offerings —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. 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 of $854.1 million for the 1.3 million shares issued and outstanding. 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, for which 475 million shares were authorized. The Company also authorized 25 million shares of undesignated preferred stock for issuance. 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. On June 19, 2013 , March 25, 2014 , December 10, 2014 , May 27, 2015 , August 10, 2015 , and November 18, 2015 , certain of the Company’s shareholders affiliated with the Sponsor commenced the sale of 9.8 million , 7.9 million , 8.0 million , 3.0 million , 3.0 million , and 3.65 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 $0.6 million and $1.0 million in the years ended December 31, 2015 and 2014 , respectively, in offering costs related to the secondary offerings, which are included in selling, general and administrative expenses. The Company purchased 4.5 million , 1.25 million , 0.7 million , and 0.15 million of the shares sold in the December 10, 2014 , May 27, 2015 , August 10, 2015 , and November 18, 2015 secondary offerings, respectively, from investment funds affiliated with the Sponsor at the same price per share paid by the underwriter to the selling shareholders. 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 income. The net gains and losses recorded in the consolidated statements of income for the years ended December 31, 2015 , 2014 and 2013 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, borrowings on line of credit, and long-term debt. The fair value of the Company’s financial instruments, other than long-term debt, approximates their carrying value. The carrying value and estimated fair value of long-term debt as of December 31, 2015 and 2014 were as follows (in thousands): December 31, 2015 December 31, 2014 Carrying value Estimated Fair Value Carrying value Estimated Fair Value Financial liabilities Long-term debt $ 929,650 $ 924,700 $ 939,200 $ 921,600 The estimated fair value of our long-term debt is estimated primarily based on current market rates for debt with similar terms and remaining maturities or current bid prices for our long-term debt. Judgment is required to develop these estimates. As such, our long-term debt is classified within Level 2, as defined under U.S. GAAP. 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, 2015 and 2014 . 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, 2015 and 2014 . 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 $10.6 million in book overdrafts at December 31, 2015 included in accounts payable on the consolidated balance sheet. There were no book overdrafts at December 31, 2014 . 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, 2015 2014 2013 Beginning balance $ 1,235 $ 1,173 $ 1,627 Provision 1,322 551 437 Write offs and recoveries (1,001 ) (489 ) (891 ) Ending balance $ 1,556 $ 1,235 $ 1,173 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 income. Expenditures for maintenance and repairs are expensed as incurred, whereas expenditures for improvements and replacements are capitalized. Depreciation is included in cost of services and selling, general and administrative expenses depending on the nature of the expenditure. Business Combinations —Business combinations are accounted for at fair value. Acquisition costs are expensed as incurred and recorded in selling, general and administrative expenses; integration costs associated with a business combination are expensed subsequent to the acquisition date; and changes in deferred tax asset valuation allowances and income tax uncertainties after the acquisition date affect income tax expense. 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. The Company performed an impairment assessment as of October 1, 2015 and concluded that there was no impairment. No goodwill impairment losses were recorded in the years ended December 31, 2015 , 2014 , or 2013 . 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, 2015 , 2014 or 2013 in relation to intangible assets. Intangible assets that are separable from goodwill and have determinable useful lives are valued separately and are amortized over the estimated period benefited, ranging from 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 less than $0.1 million in the year ended December 31, 2015 and of $0.2 million and $0.8 million in the years ended December 31, 2014 and 2013 , respectively, which have been included in cost of services. Other Long Term Assets —Other long term assets includes a cost basis investment of $2.1 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 income. 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 income. 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, liabilities for workers compensation claims, 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. 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. 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 Pronouncements —In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) . This standard amends the existing guidance and requires lessees to recognize on the balance sheet assets and liabilities for the rights and obligations created by those leases with lease terms longer than twelve months. The guidance is effective for interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted. The Company is in the process of evaluating the impact this standard will have on the Company’s consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes (Topic 740). This standard requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as non-current on the balance sheet. As a result, each jurisdiction will now only have one net non-current deferred tax asset or liability. The guidance is effective for public companies for interim and annual reporting periods beginning after December 15, 2016. Early adoption is permitted, and entities may choose whether to adopt this update prospectively or retrospectively. The Company has chosen early adoption of the standard and applied the guidance prospectively as of December 31, 2015. Balance sheets for prior periods were not retrospectively adjusted. Adoption of this standard did not impact results of operations, retained earnings, or cash flows. In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. This standard amends existing guidance to simplify the accounting for adjustments made to provisional amounts recognized in a business combination, and the amendments in this update eliminate the requirement to retrospectively account for those adjustments. This ASU is effective for fiscal years beginning after December 15, 2015. The Company does not expect this standard to have a significant effect on the Company's consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), 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 current 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. On July 9, 2015, the FASB voted to defer the effective date by one year. The guidance is effective for interim and annual reporting periods beginning on or after December 15, 2017. Early adoption is permitted, but not for periods beginning on or before December 15, 2016. The Company is currently in the process of evaluating the impact of adoption of this ASU on the Company's consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. This standard amends existing guidance to require the presentation of debt issuance costs in the balance sheet as a deduction from the carrying amount of the related debt liability. This ASU is effective for fiscal years beginning after December 15, 2015, with early adoption permitted. The Company does not expect this standard to have a significant effect on the Company's consolidated financial statements. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 , 2014 , and 2013 . 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. 2015 Acquisitions On May 19, 2015, the Company acquired Hildebrandt Learning Centers, LLC, an operator of 40 centers in the United States, for cash consideration of $19.2 million and contingent consideration of $0.5 million , which was accounted for as a business combination. The Company recorded goodwill of $13.2 million related to the full service center-based care segment, which will be deductible for tax purposes, and intangible assets of $5.7 million , consisting of customer relationships that will be amortized over 12 years. The Company also acquired working capital of $0.3 million , including cash of $1.5 million , and fixed assets of $0.5 million . On July 15, 2015, the Company acquired Active Learning Childcare Limited, an operator of nine centers in the United Kingdom, for cash consideration of $42.2 million , which was accounted for as a business combination. The Company recorded goodwill of $31.1 million related to the full service center-based care segment, which will not be deductible for tax purposes, and intangible assets of $3.8 million , consisting primarily of customer relationships that will be amortized over five years. The Company also acquired a working capital deficit of $1.8 million , including cash of $2.8 million , fixed assets of $9.8 million , and deferred tax liabilities of $0.7 million . Our acquisitions of Hildebrandt Learning Centers, LLC and Active Learning Childcare Limited contributed approximately $ 29.6 million of incremental revenue in the year ended December 31, 2015. During the year ended December 31, 2015, the Company also acquired four additional centers in the United States and four additional centers in the United Kingdom, in six separate business acquisitions which were each accounted for as business combinations. The centers were acquired for cash consideration of $20.5 million and contingent consideration of $0.8 million , net of cash acquired of $0.3 million . The company recorded goodwill of $18.5 million related to the full service center-based care segment, a portion of which will be deductible for tax purposes. Intangible assets of $2.7 million , consisting primarily of customer relationships that will be amortized over five years, 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. The operating results for the acquired businesses are included in the consolidated results of operations from the dates of acquisition, which were not material to the Company's financial results. 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 purchase price for these acquisitions have been allocated based on estimates of the fair values of the acquired assets and assumed liabilities at the date of acquisition. 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 the acquisition as follows (in thousands): At acquisition date As reported September 30, 2013 Measurement Period Adjustments At acquisition date As reported 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. 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 As reported June 30, 2013 Measurement Period Adjustments At acquisition date As reported 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 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) Year ended December 31, 2013 Revenue $ 1,260,453 Net income attributable to Bright Horizons Family Solutions, Inc. $ 16,226 The unaudited pro forma results reflect certain adjustments related to the acquisitions, such as increased amortization expense related to the acquired intangible assets. Nonrecurring deal costs that were incurred by the Company and the acquired businesses in relation to the respective acquisitions, totaling $6.2 million , 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. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 Prepaid rent and other occupancy costs $ 12,165 $ 10,672 Prepaid income taxes 12,569 4,427 Prepaid workers compensation claims 5,385 11,092 Reimbursable costs 2,450 2,784 Prepaid insurance 2,097 1,917 Other prepaid expenses and current assets 9,213 8,255 $ 43,879 $ 39,147 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, 2015 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | FIXED ASSETS Fixed assets consist of the following (dollars in thousands): Estimated useful lives December 31, 2015 2014 (Years) Buildings 20 – 40 $ 140,177 $ 131,767 Furniture, equipment and software 3 – 10 159,433 144,040 Leasehold improvements Shorter of the lease term 318,852 271,757 Land — 53,050 50,604 Total fixed assets 671,512 598,168 Accumulated depreciation (241,776 ) (199,221 ) Fixed assets, net $ 429,736 $ 398,947 Fixed assets include construction in progress of $17.8 million and $11.8 million at December 31, 2015 and 2014 , respectively, which was primarily comprised of leasehold improvements. The Company recorded depreciation expense of $50.7 million , $48.4 million and $42.7 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
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 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 Additions from acquisitions 62,838 — — 62,838 Adjustments to prior year acquisitions (15 ) — — (15 ) Effect of foreign currency translation (10,752 ) — — (10,752 ) Balance at December 31, 2015 $ 965,114 $ 158,894 $ 23,801 $ 1,147,809 The Company also has intangible assets, which consist of the following at December 31, 2015 and 2014 (in thousands): Weighted average Cost Accumulated Net carrying December 31, 2015: Definite-lived intangibles: Customer relationships 14 years $ 410,205 $ (207,257 ) $ 202,948 Trade names 8 years 6,046 (2,748 ) 3,298 Non-compete agreements 5 years 53 (48 ) 5 416,304 (210,053 ) 206,251 Indefinite-lived intangibles: Trade names N/A 183,080 — 183,080 $ 599,384 $ (210,053 ) $ 389,331 Weighted average Cost Accumulated Net carrying December 31, 2014: Definite-lived intangibles: Customer relationships 15 years $ 400,097 $ (180,900 ) $ 219,197 Trade names 8 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 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 $28.0 million , $29.0 million and $30.1 million in the years ended December 31, 2015 , 2014 , and 2013 , respectively. The Company estimates that it will record amortization expense related to intangible assets existing as of December 31, 2015 as follows over the next five years (in thousands): Estimated 2016 $ 27,922 2017 $ 26,231 2018 $ 24,903 2019 $ 24,099 2020 $ 23,708 |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 Accounts payable $ 26,944 $ 12,784 Accrued payroll and employee benefits 46,705 59,364 Accrued insurance 6,819 16,154 Accrued occupancy costs 3,541 3,121 Accrued professional fees 2,575 2,169 Accrued interest 869 1,004 Other accrued expenses 27,323 21,829 $ 114,776 $ 116,425 |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Other Current Liabilities | OTHER CURRENT LIABILITIES Other current liabilities consist of the following (in thousands): December 31, 2015 2014 Customer amounts on deposit $ 12,395 $ 10,477 Deferred rent and other occupancy costs 3,438 2,847 Income taxes payable 1,916 4,802 Unfavorable leases 776 658 Other liabilities 1,209 1,616 $ 19,734 $ 20,400 |
Other Long-Term Liabilities
Other Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Other Long-Term Liabilities | OTHER LONG-TERM LIABILITIES Other long-term liabilities consist of the following (in thousands): December 31, 2015 2014 Liabilities for workers compensation claims $ 18,363 $ 3,400 Customer amounts on deposit 12,071 9,199 Liability for unvested restricted stock 8,573 4,709 Liability for uncertain tax positions 545 1,594 Other liabilities 4,630 4,499 $ 44,182 $ 23,401 |
Credit Arrangements and Debt Ob
Credit Arrangements and Debt Obligations | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Credit Arrangements and Debt Obligations | CREDIT ARRANGEMENTS AND DEBT OBLIGATIONS As of December 31, 2015 , the Company's $1.1 billion senior credit facilities consisted of $955.0 million in secured term loan facilities and a $100.0 million revolving credit facility. In conjunction with a debt refinancing in January 2013, $790.0 million in senior secured term loans were issued, with the subsequent issuance of $165.0 million in additional term loans in December 2014. The term loans mature on January 30, 2020 and require quarterly principal payments of $2.4 million , with the remaining principal balance due on January 30, 2020 . Outstanding term loan borrowings were as follows at December 31, 2015 and 2014 (in thousands): December 31, 2015 2014 Term loans $ 929,650 $ 939,200 Deferred financing costs and original issue discount (14,439 ) (18,023 ) Total debt 915,211 921,177 Less current maturities 9,550 9,550 Long-term debt $ 905,661 $ 911,627 At December 31, 2015 , the revolving credit facility had a maturity of January 30, 2018 and there were borrowings outstanding of $24.0 million , with $76.0 million of the revolving credit facility available for borrowings. There were no borrowings outstanding on the revolving credit facility at December 31, 2014 with the full facility available for borrowings. On January 26, 2016, the Company amended its existing credit agreement to increase the revolving credit facility from $100.0 million to $225.0 million , to extend the maturity date on the revolving credit facility from January 30, 2018 to July 31, 2019 , and to modify the interest rate applicable to borrowings. 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. As of December 31, 2015 borrowings under our revolving facility bore 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% . On January 26, 2016, the Company amended its existing credit agreement to increase the revolving credit facility and to extend the maturity date on the revolving credit facility as noted above, and to modify the interest rate applicable to borrowings under the revolving credit facility from 1.75% over the Base Rate to a range of 1.25% to 1.75% over the Base Rate, or 2.25% to 2.75% over the Eurocurrency Rate. The effective interest rate for the term loans was 4.1% and 3.8% at December 31, 2015 and 2014 , respectively, and the weighted average interest rate for the years ended December 31, 2015 and 2014 was 4.1% and 3.9% , respectively. The weighted average interest rate for the revolving credit facility was 3.8% and 5.0% for the years ended December 31, 2015 and 2014 , respectively. 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 Bright Horizons Family Solutions LLC ("BHFS LLC"), our wholly-owned subsidiary, 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, the borrower, 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. The Company incurred financing fees of $14.2 million and original issue discount costs of $9.6 million in connection with the 2013 and 2014 debt refinancing. 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 was $2.2 million , $1.9 million , and $1.7 million in the years ended December 31, 2015 , 2014 , and 2013, respectively. Amortization expense of original issuance discount costs was $1.4 million , $1.1 million , and $1.0 million in the years ended December 31, 2015 , 2014 , and 2013, respectively. |
Redeemable Non-Controlling Inte
Redeemable Non-Controlling Interest | 12 Months Ended |
Dec. 31, 2015 | |
Noncontrolling Interest [Abstract] | |
Redeemable Non-Controlling Interest | REDEEMABLE NON-CONTROLLING INTEREST In July 2011, 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 as applicable from the date of acquisition. 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. The minority ownership interest by the previous owners was 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. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income (loss) before income taxes consists of the following (in thousands): Years ended December 31, 2015 2014 2013 United States $ 134,611 $ 110,585 $ 5,109 Foreign 5,545 1,729 (298 ) Total $ 140,156 $ 112,314 $ 4,811 Income tax expense (benefit) consists of the following (in thousands): Years ended December 31, 2015 2014 2013 Current tax expense (benefit) Federal $ 29,236 $ 45,628 $ 10,546 State 8,723 8,753 591 Foreign 9,028 (726 ) (5,260 ) 46,987 53,655 5,877 Deferred tax (benefit) expense Federal (11,014 ) (10,497 ) (9,080 ) State 6,776 (948 ) (1,179 ) Foreign 3,480 (1,931 ) (3,151 ) (758 ) (13,376 ) (13,410 ) Income tax expense (benefit) $ 46,229 $ 40,279 $ (7,533 ) 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, 2015 2014 2013 Federal tax expense computed at statutory rate $ 49,055 $ 39,310 $ 1,684 State tax expense (benefit), net of federal tax 5,849 5,121 (193 ) Valuation allowance, net (185 ) 245 3 Intercompany interest (6,919 ) — — Permanent differences and other, net (901 ) 277 (234 ) Change in tax rate 319 (134 ) (94 ) Change to uncertain tax positions, net (333 ) (1,523 ) (4,850 ) Foreign rate differential (656 ) (3,017 ) (3,849 ) Income tax expense (benefit) $ 46,229 $ 40,279 $ (7,533 ) Significant components of the Company’s net deferred tax liability are as follows (in thousands): December 31, 2015 2014 Deferred tax assets: Reserve on assets $ 566 $ 466 Net operating loss and credit carryforwards 1,281 1,659 Liabilities not yet deductible 33,438 28,045 Deferred revenue 2,418 2,724 Stock-based compensation 12,277 10,964 Depreciation 53 73 Other 934 1,386 50,967 45,317 Valuation allowance (1,111 ) (1,296 ) Total deferred tax assets 49,856 44,021 Deferred tax liabilities: Intangible assets (144,402 ) (143,732 ) Depreciation (18,554 ) (13,686 ) Total deferred tax liabilities (162,956 ) (157,418 ) Net deferred tax liability $ (113,100 ) $ (113,397 ) The Company has chosen early adoption of the ASU 2015-17, Balance Sheet Classification of Deferred Taxes, and applied the guidance prospectively which requires that all deferred assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. The prior period balance sheets were not retrospectively adjusted. Amounts for 2014 in the table above have been conformed to the 2015 presentation. During 2015 , the overall deferred tax liability has decreased slightly, 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 $8.6 million and has recorded an associated deferred tax asset totaling $1.4 million . Deferred tax assets associated with federal and state net operating losses total $0.1 million . The net operating losses in foreign jurisdictions will begin to expire in 2023 or can be carried forward indefinitely. The net operating losses in the United States have expiration dates through 2035 . In jurisdictions in which the Company has not had a history of profitability, the Company has recorded a valuation allowance of $1.1 million associated with foreign net deferred tax assets. During 2015, the valuation allowance decreased $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 $6.4 million related to the U.S. federal and state income taxes and foreign withholding taxes on approximately $46.4 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, 2015 2014 2013 Beginning balance $ 713 $ 2,034 $ 7,412 Additions for tax positions of prior years 353 — 540 Additions for tax positions of current year 353 — — Settlements (50 ) — (1,110 ) Reductions for tax positions of prior years — (490 ) (4,108 ) Lapses of statutes of limitations (663 ) (831 ) (712 ) Effect of foreign currency adjustments — — 12 Ending balance $ 706 $ 713 $ 2,034 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 year ended December 31, 2015 included no interest and penalties. The years ended December 31, 2014 and 2013 included less than $0.1 million of interest and penalties related to tax positions of the Company. There was no liability for total interest and penalties at December 31, 2015 , and at December 31, 2014 , the interest and penalties were $0.9 million and were included in other long-term liabilities. During 2015 , the Company recorded an unrecognized tax benefit for a foreign subsidiary's tax position. Reductions also were recorded 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 2012 through 2015 are subject to audit based upon the Federal statute of limitations. An audit of a subsidiary's filing for 2013 began in the second quarter of 2015 and is expected to be settled in 2016. 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 2015 . As of December 31, 2015 , there were two income tax audits in process and the tax years from 2010 to 2015 are subject to audit. The Company is also subject to corporate income tax at its subsidiaries located in the United Kingdom, the Netherlands, India, Canada, Ireland, and Puerto Rico. The tax returns for the Company’s subsidiaries located in foreign jurisdictions are subject to examination for periods ranging from one to seven years. |
Stockholders' Equity and Stock-
Stockholders' Equity and Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stockholders' Equity and Stock-Based Compensation | STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION Preferred Stock The Company authorized 25 million shares of undesignated preferred stock in 2013 for issuance, of which none were issued in the years ended December 31, 2015 and 2014 . 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, 2015 and 2014 , no shares of preferred stock were outstanding. Treasury Stock 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 2014 authorization. During the year ended December 31, 2015 , the Company repurchased 2.2 million shares for $128.1 million , including a total of 2.1 million shares that were purchased from investment funds affiliated with the Sponsor in secondary offerings that commenced May 27, 2015, August 10, 2015, and November 18, 2015. At December 31, 2015 , $121.9 million remained outstanding under the repurchase program. 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 from investment funds affiliated with the Sponsor in conjunction with the sale of 8.0 million shares through an underwritten secondary offering that commenced on December 10, 2014. There were no stock repurchases during the year ended December 31, 2013 . The Company accounts for treasury stock under the cost method. All repurchased shares have been retired. 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, 2015 , there were approximately 2.9 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 60% of the options vesting on the third anniversary of the date of grant and 20% vesting on each of the fourth and fifth anniversaries. 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. Stock-Based Compensation The Company recognized the impact of stock-based compensation in its consolidated statements of income for the years ended December 31, 2015 , 2014 , and 2013 and did not capitalize any amounts on the consolidated balance sheets. In the years ended December 31, 2015 and 2014 , the Company recorded stock-based compensation expense of $9.2 million and $7.9 million , respectively, of which $8.7 million and $7.3 million were recorded in selling, general and administrative expenses, respectively, and $0.5 million and $0.6 million in cost of services, respectively, in the consolidated statements of income in relation to all awards granted under the equity incentive plans. In the year ended December 31, 2013 , the Company recorded stock-based compensation expense of $10.7 million in selling, general and administrative expenses in the consolidated statement of income. Stock-based compensation expense generated an income tax benefit of $3.7 million , $3.2 million , and $4.3 million in the years ended December 31, 2015 , 2014 , and 2013 , 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. There were no share-based liabilities paid during the period. As of December 31, 2015 , there was $13.5 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 two years at December 31, 2015 . Stock Options The fair value of each stock option of common stock 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, 2015 2014 2013 Expected dividend yield 0.0% 0.0% 0.0% Expected stock price volatility 30.0% 30.0% 44.3% Risk free interest rate 1.5% 1.8% 1.0% Expected life of options (years) 5.3 5.3 5.3 Weighted average fair value per share of options granted during the period $15.37 $11.36 $10.24 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 the Company and that 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, 2015 , 2014 , and 2013 , 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, 2015 . Weighted Average Remaining Contractual Life in Years Number of Options Weighted Average Exercise Price Aggregate Intrinsic Value (In millions) Outstanding at January 1, 2015 5.6 4,152,617 $ 20.24 Granted 481,700 51.26 Exercised (694,381 ) 14.13 Forfeited (121,358 ) 38.69 Outstanding at December 31, 2015 4.9 3,818,578 $ 24.68 $ 160.9 Exercisable at December 31, 2015 4.4 1,778,285 $ 14.41 $ 93.2 Vested and expected to vest at December 31, 2015 4.9 3,670,606 $ 24.03 $ 157.0 The fair value (pre-tax) of options that vested during the years ended December 31, 2015 , 2014 , and 2013 were $2.3 million , $3.9 million , and $9.1 million , respectively. The intrinsic value of options exercised during the years ended December 31, 2015 , 2014 , and 2013 were $28.9 million , $32.3 million , and $15.4 million , respectively. Cash received by the Company from the exercise of stock options for the years ended December 31, 2015 , 2014 , and 2013 was $9.8 million , $17.4 million , and $11.0 million , respectively. Income tax benefits realized from the exercise of stock options in the years ended December 31, 2015 , 2014 , and 2013 were $11.6 million , $12.9 million , and $8.2 million , respectively, inclusive of the excess tax benefits realized of $9.4 million , $9.1 million , and $5.9 million in the years ended December 31, 2015 , 2014 , and 2013 , respectively. Restricted Stock and Restricted Stock Units Restricted stock awards are granted to certain senior managers at the discretion of the board of directors as allowed under the Plan. Restricted stock awards vest on the earliest of the third anniversary of the grant date, a change of control of the Company, and the termination of employment by reason of death or disability, and are accounted for as nonvested stock. Restricted stock is sold for a price equal to 50% of the fair value of the stock at the date of grant. Proceeds from the issuance of restricted stock are recorded as other liabilities in the consolidated balance sheet until the earlier of vesting or forfeiture of the awards. The unvested shares of restricted stock participate equally in dividends with common stock. Restricted stock is considered legally issued at the date of grant but is not considered common stock issued and outstanding in accordance with accounting guidance until the requisite service period is fulfilled. All outstanding shares of restricted stock are expected to vest. Cash proceeds from the issuance of restricted stock for the years ended December 31, 2015 and 2014 were $3.9 million and $4.7 million , respectively. No restricted stock awards were granted in 2013. Stock-based compensation expense for restricted stock awards is calculated based on the fair value of the award on the date of grant, which is recognized on a straight line basis over the requisite service period. The Company's stock-based compensation expense recorded in selling, general and administrative expenses in the consolidated statements of income for the years ended December 31, 2015 and 2014 included $2.9 million and $1.6 million , respectively, for restricted stock awards. As of December 31, 2015 , total unrecognized compensation expense included $4.1 million related to unvested restricted stock, which is expected to be recognized over the weighted average remaining requisite service period of approximately two years. The table below reflects restricted stock activity under the Company’s equity plan for the year ended December 31, 2015 . Number of Shares Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (In millions) Nonvested restricted stock shares at January 1, 2015 259,525 $ 18.15 Granted 163,200 23.68 Vested — — Forfeited — — Nonvested restricted stock shares at December 31, 2015 422,725 $ 20.28 $ 19.7 Restricted stock units are 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. During the year ended December 31, 2015 , 9,000 restricted stock units were awarded at a weighted average fair value of $53.18 . During the year ended December 31, 2014, 6,066 restricted stock units were awarded at a weighted average fair value of $39.58 . At December 31, 2015 , there were 15,066 restricted stock units outstanding, with an intrinsic value of $0.8 million , which vested upon award. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
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. The Company's unvested stock-based payment awards include unvested shares awarded as restricted stock awards at the discretion of the Company’s board of directors. The restricted stock awards generally 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. 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, 2015 2014 2013 Basic earnings per share: Net income $ 93,927 $ 72,035 $ 12,623 Allocation of net income to common shareholders: Common stock $ 93,287 $ 71,755 $ 12,623 Unvested participating shares 640 280 — $ 93,927 $ 72,035 $ 12,623 Weighted average number of common shares: Common stock 60,835,574 65,612,572 62,659,264 Unvested participating shares 417,285 255,920 — Earnings per common share: Common stock $ 1.53 $ 1.09 $ 0.20 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, 2015 2014 2013 Diluted earnings per share: Earnings allocated to common stock $ 93,287 $ 71,755 $ 12,623 Plus earnings allocated to unvested participating shares 640 280 — Less adjusted earnings allocated to unvested participating shares (624 ) (274 ) — Earnings allocated to common stock $ 93,303 $ 71,761 $ 12,623 Weighted average number of common shares: Common stock 60,835,574 65,612,572 62,659,264 Effect of dilutive securities 1,525,204 1,631,600 1,849,772 62,360,778 67,244,172 64,509,036 Earnings per common share: Common stock $ 1.50 $ 1.07 $ 0.20 Options outstanding to purchase 0.2 million , 0.7 million and 0.1 million shares of common stock were excluded from diluted earnings per share for the years ended December 31, 2015 , 2014 , and 2013 , respectively, since their effect was anti-dilutive, which may be dilutive in the future. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
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 and 15 years and many contain renewal options for various periods. Rent expense for the years ended December 31, 2015 , 2014 , and 2013 totaled $97.3 million , $88.7 million and $76.8 million , respectively. Future minimum payments under non-cancelable operating leases as of December 31, 2015 are as follows for the years ending December 31 (in thousands): 2016 $ 89,547 2017 84,984 2018 80,739 2019 75,045 2020 71,080 Thereafter 441,583 Total future minimum lease payments $ 842,978 Long-Term Debt Future minimum payments of long-term debt are as follows for the years ending December 31 (in thousands): 2016 $ 9,550 2017 9,550 2018 9,550 2019 9,550 2020 891,450 Total future principal payments $ 929,650 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, 2015 ) 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, 2015 and 2014 , 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. The weighted average interest rate for the year ended December 31, 2014 was 5.53% . Letters of Credit The Company has 25 letters of credit outstanding used to guarantee certain rent payments for up to $1.0 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 pending 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. Management believes that the amounts accrued for these obligations are sufficient and that ultimate settlement of such claims or costs associated with claims made under these plans will not have a material adverse effect on the Company’s financial position, results of operations or cash flows. The 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, 2015 | |
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 $2.5 million , $2.3 million and $2.1 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. The Company maintains a Nonqualified Deferred Compensation Plan (the “NQDC Plan”) for all eligible employees. 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 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 records an asset and a corresponding liability on the consolidated balance sheet for the deferred compensation plan that were $1.1 million and $1.2 million at December 31, 2015 , respectively. The deferred compensation plan asset and liability were both $0.3 million at December 31, 2014 . |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2015 | |
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 center-based care Back-up dependent care Other educational advisory services Total (In thousands) Year ended December 31, 2015 Revenue $ 1,236,762 $ 181,574 $ 40,109 $ 1,458,445 Amortization of intangible assets 26,690 725 574 27,989 Income from operations (1) 115,149 56,891 9,562 181,602 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 (2) 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 (3) 67,287 39,710 2,037 109,034 (1) For the year ended December 31, 2015 , income from operations includes of $0.9 million of costs associated with secondary offerings of common shares and completed acquisitions, all of which is allocated to full service center-based care. (2) 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 amendment to the credit agreement completed in November 2014 ( $2.4 million to full service center-based care and $0.3 million to back-up dependent care). (3) 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). Revenue and long-lived assets by geographic region are as follows (in thousands): Years ended December 31, 2015 2014 2013 Revenue North America $ 1,182,629 $ 1,074,951 $ 980,537 Europe and other 275,816 278,048 238,239 Total Revenue $ 1,458,445 $ 1,352,999 $ 1,218,776 December 31, 2015 2014 2013 Long-lived assets North America $ 308,469 $ 277,971 $ 260,483 Europe and other 121,267 120,976 130,411 Total long-lived assets $ 429,736 $ 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 $1.2 billion in 2015 , $1.1 billion in 2014 , and $975.5 million in 2013 . Revenues in the United Kingdom were $238.5 million in 2015 , $239.6 million in 2014 , and $204.7 million in 2013 . Long-lived assets were $306.6 million , $275.7 million , and $257.8 million at December 31, 2015 , 2014 , and 2013 respectively, in the United States, and $107.8 million , $104.0 million , and $108.9 million at December 31, 2015 , 2014 , and 2013 respectively, in the United Kingdom. Revenue and long-lived assets associated with other countries were not material. |
Transactions with Related Parti
Transactions with Related Parties | 12 Months Ended |
Dec. 31, 2015 | |
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 income for the year ended December 31, 2013 . Subsequent to the Offering, on June 19, 2013 , March 25, 2014 , December 10, 2014 , May 27, 2015 , August 10, 2015 , and November 18, 2015 , certain of the Company’s shareholders affiliated with the Sponsor commenced the sale of 9.8 million , 7.9 million , 8.0 million , 3.0 million , 3.0 million , and 3.65 million shares, respectively, of the Company’s common stock in secondary offerings. The Company purchased 4.5 million , 1.25 million , 0.7 million , and 0.15 million of the shares sold in the December 10, 2014 , May 27, 2015 , August 10, 2015 , and November 18, 2015 secondary offerings, respectively, from investment funds affiliated with the Sponsor at the same price per share paid by the underwriter to the selling shareholders. As of December 31, 2015 , investment funds affiliated with the Sponsor hold approximately 27.5% of the Company’s common stock. Three members of the Company's board of directors are affiliated with the Sponsor. |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
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. Selected quarterly financial information follows for the years ended December 31, 2015 and 2014: March 31, 2015 June 30, 2015 September 30, 2015 December 31, 2015 (In thousands, except per share amounts) Revenue $ 350,440 $ 370,465 $ 365,944 $ 371,596 Gross profit 86,608 95,860 85,384 89,903 Income from operations 42,841 52,138 41,741 44,882 Net income 22,532 26,919 20,558 23,918 Allocation of net income to common stockholders: Common stock—basic 22,386 26,735 20,415 23,751 Common stock—diluted 22,390 26,739 20,419 23,755 Earnings per share: Common stock—basic $ 0.36 $ 0.44 $ 0.34 $ 0.40 Common stock—diluted $ 0.35 $ 0.43 $ 0.33 $ 0.39 March 31, 2014 June 30, 2014 September 30, 2014 December 31, 2014 (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 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 |
Organization and Significant 28
Organization and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
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 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, 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. |
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 income. |
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, borrowings on line of credit, 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. |
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, 2015 and 2014 . 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. |
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 income. Expenditures for maintenance and repairs are expensed as incurred, whereas expenditures for improvements and replacements are capitalized. Depreciation is included in cost of services and selling, general and administrative expenses depending on the nature of the expenditure. |
Business Combinations | Business Combinations —Business combinations are accounted for at fair value. Acquisition costs are expensed as incurred and recorded in selling, general and administrative expenses; integration costs associated with a business combination are expensed subsequent to the acquisition date; and changes in deferred tax asset valuation allowances and income tax uncertainties after the acquisition date affect income tax expense. 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. The Company performed an impairment assessment as of October 1, 2015 and concluded that there was no impairment. No goodwill impairment losses were recorded in the years ended December 31, 2015 , 2014 , or 2013 . 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, 2015 , 2014 or 2013 in relation to intangible assets. Intangible assets that are separable from goodwill and have determinable useful lives are valued separately and are amortized over the estimated period benefited, ranging from 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. |
Other Long Term Assets | Other Long Term Assets —Other long term assets includes a cost basis investment of $2.1 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 income. |
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 income. |
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, liabilities for workers compensation claims, 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. |
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. |
Stock-based Compensation | Stock-Based Compensation —The Company accounts for stock-based compensation using a fair value method. Stock-based compensation expense is recognized in the consolidated financial statements based on the grant-date fair value of the awards that are expected to vest. This expense is recognized on a straight-line basis over the requisite service period, which generally represents the vesting period, of each separately vesting tranche. The Company calculates the fair value of stock options using the Black-Scholes option-pricing model. |
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 Pronouncements —In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) . This standard amends the existing guidance and requires lessees to recognize on the balance sheet assets and liabilities for the rights and obligations created by those leases with lease terms longer than twelve months. The guidance is effective for interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted. The Company is in the process of evaluating the impact this standard will have on the Company’s consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes (Topic 740). This standard requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as non-current on the balance sheet. As a result, each jurisdiction will now only have one net non-current deferred tax asset or liability. The guidance is effective for public companies for interim and annual reporting periods beginning after December 15, 2016. Early adoption is permitted, and entities may choose whether to adopt this update prospectively or retrospectively. The Company has chosen early adoption of the standard and applied the guidance prospectively as of December 31, 2015. Balance sheets for prior periods were not retrospectively adjusted. Adoption of this standard did not impact results of operations, retained earnings, or cash flows. In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. This standard amends existing guidance to simplify the accounting for adjustments made to provisional amounts recognized in a business combination, and the amendments in this update eliminate the requirement to retrospectively account for those adjustments. This ASU is effective for fiscal years beginning after December 15, 2015. The Company does not expect this standard to have a significant effect on the Company's consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), 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 current 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. On July 9, 2015, the FASB voted to defer the effective date by one year. The guidance is effective for interim and annual reporting periods beginning on or after December 15, 2017. Early adoption is permitted, but not for periods beginning on or before December 15, 2016. The Company is currently in the process of evaluating the impact of adoption of this ASU on the Company's consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. This standard amends existing guidance to require the presentation of debt issuance costs in the balance sheet as a deduction from the carrying amount of the related debt liability. This ASU is effective for fiscal years beginning after December 15, 2015, with early adoption permitted. The Company does not expect this standard to have a significant effect on the Company's consolidated financial statements. |
Organization and Significant 29
Organization and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Fair Value, Liabilities Measured on Recurring Basis | The carrying value and estimated fair value of long-term debt as of December 31, 2015 and 2014 were as follows (in thousands): December 31, 2015 December 31, 2014 Carrying value Estimated Fair Value Carrying value Estimated Fair Value Financial liabilities Long-term debt $ 929,650 $ 924,700 $ 939,200 $ 921,600 |
Activity in Allowance for Doubtful Accounts | Activity in the allowance for doubtful accounts is as follows (in thousands): Years ended December 31, 2015 2014 2013 Beginning balance $ 1,235 $ 1,173 $ 1,627 Provision 1,322 551 437 Write offs and recoveries (1,001 ) (489 ) (891 ) Ending balance $ 1,556 $ 1,235 $ 1,173 |
Fair Value, by Balance Sheet Grouping | The carrying value and estimated fair value of long-term debt as of December 31, 2015 and 2014 were as follows (in thousands): December 31, 2015 December 31, 2014 Carrying value Estimated Fair Value Carrying value Estimated Fair Value Financial liabilities Long-term debt $ 929,650 $ 924,700 $ 939,200 $ 921,600 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Operating Results | 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) Year ended December 31, 2013 Revenue $ 1,260,453 Net income attributable to Bright Horizons Family Solutions, Inc. $ 16,226 |
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 the acquisition as follows (in thousands): At acquisition date As reported September 30, 2013 Measurement Period Adjustments At acquisition date As reported 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 As reported June 30, 2013 Measurement Period Adjustments At acquisition date As reported 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 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) Year ended December 31, 2013 Revenue $ 1,260,453 Net income attributable to Bright Horizons Family Solutions, Inc. $ 16,226 |
Prepaid Expenses and Other Cu31
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 Prepaid rent and other occupancy costs $ 12,165 $ 10,672 Prepaid income taxes 12,569 4,427 Prepaid workers compensation claims 5,385 11,092 Reimbursable costs 2,450 2,784 Prepaid insurance 2,097 1,917 Other prepaid expenses and current assets 9,213 8,255 $ 43,879 $ 39,147 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Summary of Fixed Assets | Fixed assets consist of the following (dollars in thousands): Estimated useful lives December 31, 2015 2014 (Years) Buildings 20 – 40 $ 140,177 $ 131,767 Furniture, equipment and software 3 – 10 159,433 144,040 Leasehold improvements Shorter of the lease term 318,852 271,757 Land — 53,050 50,604 Total fixed assets 671,512 598,168 Accumulated depreciation (241,776 ) (199,221 ) Fixed assets, net $ 429,736 $ 398,947 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 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 Additions from acquisitions 62,838 — — 62,838 Adjustments to prior year acquisitions (15 ) — — (15 ) Effect of foreign currency translation (10,752 ) — — (10,752 ) Balance at December 31, 2015 $ 965,114 $ 158,894 $ 23,801 $ 1,147,809 |
Intangible Assets Subject to Amortization | The Company also has intangible assets, which consist of the following at December 31, 2015 and 2014 (in thousands): Weighted average Cost Accumulated Net carrying December 31, 2015: Definite-lived intangibles: Customer relationships 14 years $ 410,205 $ (207,257 ) $ 202,948 Trade names 8 years 6,046 (2,748 ) 3,298 Non-compete agreements 5 years 53 (48 ) 5 416,304 (210,053 ) 206,251 Indefinite-lived intangibles: Trade names N/A 183,080 — 183,080 $ 599,384 $ (210,053 ) $ 389,331 Weighted average Cost Accumulated Net carrying December 31, 2014: Definite-lived intangibles: Customer relationships 15 years $ 400,097 $ (180,900 ) $ 219,197 Trade names 8 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 |
Estimated Future Amortization Expense | The Company estimates that it will record amortization expense related to intangible assets existing as of December 31, 2015 as follows over the next five years (in thousands): Estimated 2016 $ 27,922 2017 $ 26,231 2018 $ 24,903 2019 $ 24,099 2020 $ 23,708 |
Accounts Payable and Accrued 34
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Summary of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consist of the following (in thousands): December 31, 2015 2014 Accounts payable $ 26,944 $ 12,784 Accrued payroll and employee benefits 46,705 59,364 Accrued insurance 6,819 16,154 Accrued occupancy costs 3,541 3,121 Accrued professional fees 2,575 2,169 Accrued interest 869 1,004 Other accrued expenses 27,323 21,829 $ 114,776 $ 116,425 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Summary of Other Current Liabilities | Other current liabilities consist of the following (in thousands): December 31, 2015 2014 Customer amounts on deposit $ 12,395 $ 10,477 Deferred rent and other occupancy costs 3,438 2,847 Income taxes payable 1,916 4,802 Unfavorable leases 776 658 Other liabilities 1,209 1,616 $ 19,734 $ 20,400 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Summary of Other Long-Term Liabilities | Other long-term liabilities consist of the following (in thousands): December 31, 2015 2014 Liabilities for workers compensation claims $ 18,363 $ 3,400 Customer amounts on deposit 12,071 9,199 Liability for unvested restricted stock 8,573 4,709 Liability for uncertain tax positions 545 1,594 Other liabilities 4,630 4,499 $ 44,182 $ 23,401 |
Credit Arrangements and Debt 37
Credit Arrangements and Debt Obligations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Outstanding term loan borrowings were as follows at December 31, 2015 and 2014 (in thousands): December 31, 2015 2014 Term loans $ 929,650 $ 939,200 Deferred financing costs and original issue discount (14,439 ) (18,023 ) Total debt 915,211 921,177 Less current maturities 9,550 9,550 Long-term debt $ 905,661 $ 911,627 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 2013 United States $ 134,611 $ 110,585 $ 5,109 Foreign 5,545 1,729 (298 ) Total $ 140,156 $ 112,314 $ 4,811 |
Components of Income Tax (Benefit) Expense | Income tax expense (benefit) consists of the following (in thousands): Years ended December 31, 2015 2014 2013 Current tax expense (benefit) Federal $ 29,236 $ 45,628 $ 10,546 State 8,723 8,753 591 Foreign 9,028 (726 ) (5,260 ) 46,987 53,655 5,877 Deferred tax (benefit) expense Federal (11,014 ) (10,497 ) (9,080 ) State 6,776 (948 ) (1,179 ) Foreign 3,480 (1,931 ) (3,151 ) (758 ) (13,376 ) (13,410 ) Income tax expense (benefit) $ 46,229 $ 40,279 $ (7,533 ) |
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, 2015 2014 2013 Federal tax expense computed at statutory rate $ 49,055 $ 39,310 $ 1,684 State tax expense (benefit), net of federal tax 5,849 5,121 (193 ) Valuation allowance, net (185 ) 245 3 Intercompany interest (6,919 ) — — Permanent differences and other, net (901 ) 277 (234 ) Change in tax rate 319 (134 ) (94 ) Change to uncertain tax positions, net (333 ) (1,523 ) (4,850 ) Foreign rate differential (656 ) (3,017 ) (3,849 ) Income tax expense (benefit) $ 46,229 $ 40,279 $ (7,533 ) |
Components of Net Deferred Tax Liability | Significant components of the Company’s net deferred tax liability are as follows (in thousands): December 31, 2015 2014 Deferred tax assets: Reserve on assets $ 566 $ 466 Net operating loss and credit carryforwards 1,281 1,659 Liabilities not yet deductible 33,438 28,045 Deferred revenue 2,418 2,724 Stock-based compensation 12,277 10,964 Depreciation 53 73 Other 934 1,386 50,967 45,317 Valuation allowance (1,111 ) (1,296 ) Total deferred tax assets 49,856 44,021 Deferred tax liabilities: Intangible assets (144,402 ) (143,732 ) Depreciation (18,554 ) (13,686 ) Total deferred tax liabilities (162,956 ) (157,418 ) Net deferred tax liability $ (113,100 ) $ (113,397 ) |
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, 2015 2014 2013 Beginning balance $ 713 $ 2,034 $ 7,412 Additions for tax positions of prior years 353 — 540 Additions for tax positions of current year 353 — — Settlements (50 ) — (1,110 ) Reductions for tax positions of prior years — (490 ) (4,108 ) Lapses of statutes of limitations (663 ) (831 ) (712 ) Effect of foreign currency adjustments — — 12 Ending balance $ 706 $ 713 $ 2,034 |
Stockholders' Equity and Stoc39
Stockholders' Equity and Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Weighted Average Assumptions for Fair Value of Stock Option | The fair value of each stock option of common stock 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, 2015 2014 2013 Expected dividend yield 0.0% 0.0% 0.0% Expected stock price volatility 30.0% 30.0% 44.3% Risk free interest rate 1.5% 1.8% 1.0% Expected life of options (years) 5.3 5.3 5.3 Weighted average fair value per share of options granted during the period $15.37 $11.36 $10.24 |
Nonvested Restricted Stock Shares Activity | The table below reflects restricted stock activity under the Company’s equity plan for the year ended December 31, 2015 . Number of Shares Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (In millions) Nonvested restricted stock shares at January 1, 2015 259,525 $ 18.15 Granted 163,200 23.68 Vested — — Forfeited — — Nonvested restricted stock shares at December 31, 2015 422,725 $ 20.28 $ 19.7 |
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, 2015 . Weighted Average Remaining Contractual Life in Years Number of Options Weighted Average Exercise Price Aggregate Intrinsic Value (In millions) Outstanding at January 1, 2015 5.6 4,152,617 $ 20.24 Granted 481,700 51.26 Exercised (694,381 ) 14.13 Forfeited (121,358 ) 38.69 Outstanding at December 31, 2015 4.9 3,818,578 $ 24.68 $ 160.9 Exercisable at December 31, 2015 4.4 1,778,285 $ 14.41 $ 93.2 Vested and expected to vest at December 31, 2015 4.9 3,670,606 $ 24.03 $ 157.0 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 2013 Basic earnings per share: Net income $ 93,927 $ 72,035 $ 12,623 Allocation of net income to common shareholders: Common stock $ 93,287 $ 71,755 $ 12,623 Unvested participating shares 640 280 — $ 93,927 $ 72,035 $ 12,623 Weighted average number of common shares: Common stock 60,835,574 65,612,572 62,659,264 Unvested participating shares 417,285 255,920 — Earnings per common share: Common stock $ 1.53 $ 1.09 $ 0.20 |
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, 2015 2014 2013 Diluted earnings per share: Earnings allocated to common stock $ 93,287 $ 71,755 $ 12,623 Plus earnings allocated to unvested participating shares 640 280 — Less adjusted earnings allocated to unvested participating shares (624 ) (274 ) — Earnings allocated to common stock $ 93,303 $ 71,761 $ 12,623 Weighted average number of common shares: Common stock 60,835,574 65,612,572 62,659,264 Effect of dilutive securities 1,525,204 1,631,600 1,849,772 62,360,778 67,244,172 64,509,036 Earnings per common share: Common stock $ 1.50 $ 1.07 $ 0.20 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 are as follows for the years ending December 31 (in thousands): 2016 $ 89,547 2017 84,984 2018 80,739 2019 75,045 2020 71,080 Thereafter 441,583 Total future minimum lease payments $ 842,978 |
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): 2016 $ 9,550 2017 9,550 2018 9,550 2019 9,550 2020 891,450 Total future principal payments $ 929,650 |
Segment and Geographic Inform42
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 center-based care Back-up dependent care Other educational advisory services Total (In thousands) Year ended December 31, 2015 Revenue $ 1,236,762 $ 181,574 $ 40,109 $ 1,458,445 Amortization of intangible assets 26,690 725 574 27,989 Income from operations (1) 115,149 56,891 9,562 181,602 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 (2) 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 (3) 67,287 39,710 2,037 109,034 (1) For the year ended December 31, 2015 , income from operations includes of $0.9 million of costs associated with secondary offerings of common shares and completed acquisitions, all of which is allocated to full service center-based care. (2) 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 amendment to the credit agreement completed in November 2014 ( $2.4 million to full service center-based care and $0.3 million to back-up dependent care). (3) 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). |
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, 2015 2014 2013 Revenue North America $ 1,182,629 $ 1,074,951 $ 980,537 Europe and other 275,816 278,048 238,239 Total Revenue $ 1,458,445 $ 1,352,999 $ 1,218,776 December 31, 2015 2014 2013 Long-lived assets North America $ 308,469 $ 277,971 $ 260,483 Europe and other 121,267 120,976 130,411 Total long-lived assets $ 429,736 $ 398,947 $ 390,894 |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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. Selected quarterly financial information follows for the years ended December 31, 2015 and 2014: March 31, 2015 June 30, 2015 September 30, 2015 December 31, 2015 (In thousands, except per share amounts) Revenue $ 350,440 $ 370,465 $ 365,944 $ 371,596 Gross profit 86,608 95,860 85,384 89,903 Income from operations 42,841 52,138 41,741 44,882 Net income 22,532 26,919 20,558 23,918 Allocation of net income to common stockholders: Common stock—basic 22,386 26,735 20,415 23,751 Common stock—diluted 22,390 26,739 20,419 23,755 Earnings per share: Common stock—basic $ 0.36 $ 0.44 $ 0.34 $ 0.40 Common stock—diluted $ 0.35 $ 0.43 $ 0.33 $ 0.39 March 31, 2014 June 30, 2014 September 30, 2014 December 31, 2014 (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 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 |
Organization and Significant 44
Organization and Significant Accounting Policies - Additional Information (Detail) | Nov. 18, 2015shares | Aug. 10, 2015shares | May. 27, 2015shares | Dec. 10, 2014shares | Mar. 25, 2014shares | Jun. 19, 2013shares | Feb. 21, 2013USD ($)shares | Dec. 31, 2015USD ($)Customershares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($)shares | Dec. 31, 2012USD ($)shares | Jan. 11, 2013shares |
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 | $ 0 | $ 234,944,000 | ||||||||
Payment of initial public offering costs | $ | 0 | 0 | 20,600,000 | $ 1,600,000 | ||||||||
Common stock, $0.001 par value; 475,000,000 shares authorized; 60,008,136 and 61,534,802 shares issued and outstanding at December 31, 2015 and 2014, respectively | $ | $ 60,000 | $ 62,000 | ||||||||||
Common stock, issued ( in shares) | 60,008,136 | 61,534,802 | ||||||||||
Common stock, outstanding (in shares) | 60,008,136 | 61,534,802 | ||||||||||
Common stock conversion ratio, Class L common stock into Class A common stock | 1.9704 | |||||||||||
Common stock, authorized (in shares) | 475,000,000 | 475,000,000 | ||||||||||
Preferred stock, authorized (in shares) | 25,000,000 | 25,000,000 | ||||||||||
Offering cost incurred | $ | $ 148,164,000 | $ 137,683,000 | $ 141,827,000 | |||||||||
Stock repurchased and retired (in shares) | 5,000,000 | 0 | ||||||||||
Book overdrafts | $ | $ 10,563,000 | $ 0 | ||||||||||
Fair value for each reporting unit, period | 10 years | |||||||||||
Impairment losses | $ | $ 0 | 0 | ||||||||||
Fixed asset impairment (Less than $0.1 million in 2015) | $ | 100,000 | 200,000 | $ 800,000 | |||||||||
Other long term assets, cost basis investment | $ | $ 2,100,000 | |||||||||||
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 | |||||||||||
Secondary Offering [Member] | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Issuance of Class L common stock (in shares) | 3,650,000 | 3,000,000 | 3,000,000 | 8,000,000 | 7,900,000 | 9,800,000 | ||||||
Offering cost incurred | $ | $ 600,000 | $ 1,000,000 | ||||||||||
Stock repurchased and retired (in shares) | 150,000 | 700,000 | 1,250,000 | 4,500,000 | ||||||||
Common Stock Class L [Member] | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Common stock, $0.001 par value; 475,000,000 shares authorized; 60,008,136 and 61,534,802 shares issued and outstanding at December 31, 2015 and 2014, respectively | $ | $ 854,100,000 | |||||||||||
Common stock, issued ( in shares) | 1,300,000 | |||||||||||
Common stock, outstanding (in shares) | 1,300,000 | |||||||||||
Common stock conversion ratio, Class L common stock into Class A common stock | 35.1955 | |||||||||||
Common Class A [Member] | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Common stock, issued ( in shares) | 35.1955 | |||||||||||
Common stock, authorized (in shares) | 475,000,000 | |||||||||||
Preferred stock, authorized (in shares) | 25,000,000 | |||||||||||
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Number Of Customer Generating Major Revenues | Customer | 0 | |||||||||||
Concentration Risk, Percentage | 10.00% | |||||||||||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Concentration Risk Number Of Customers | Customer | 0 |
Organization and Significant 45
Organization and Significant Accounting Policies Organization and Significant Accounting Policies - Fair Value (Details) - Fair Value, Inputs, Level 2 [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Carrying Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | $ 929,650 | $ 939,200 |
Estimated Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | $ 924,700 | $ 921,600 |
Organization and Significant 46
Organization and Significant Accounting Policies - Activity in Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning balance | $ 1,235 | $ 1,173 | $ 1,627 |
Provision | 1,322 | 551 | 437 |
Write offs and recoveries | (1,001) | (489) | (891) |
Ending balance | $ 1,556 | $ 1,235 | $ 1,173 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ in Thousands | Jul. 15, 2015USD ($)Center | May. 19, 2015USD ($)Center | Jul. 22, 2013USD ($)Center | Apr. 10, 2013USD ($)Nursery | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)CenterBusiness | Dec. 31, 2014USD ($)CenterBusiness | Dec. 31, 2013USD ($)Business |
Business Acquisition [Line Items] | |||||||||||||||
Goodwill | $ 1,147,809 | $ 1,095,738 | $ 1,147,809 | $ 1,095,738 | $ 1,096,283 | ||||||||||
Amortization of intangible assets | 27,989 | 28,999 | 30,075 | ||||||||||||
Settlement of purchase price for prior year acquisitions | 23 | 1,030 | 0 | ||||||||||||
Deferred tax liability | 144,402 | 143,732 | 144,402 | 143,732 | |||||||||||
Total acquisitions cost contributed by acquired business | 6,200 | ||||||||||||||
Total revenues contributed by acquired business | 371,596 | $ 365,944 | $ 370,465 | $ 350,440 | 337,768 | $ 334,976 | $ 348,100 | $ 332,155 | 1,458,445 | 1,352,999 | 1,218,776 | ||||
United States [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Total revenues contributed by acquired business | 1,200,000 | 1,100,000 | 975,500 | ||||||||||||
United Kingdom [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Total revenues contributed by acquired business | 238,500 | 239,600 | 204,700 | ||||||||||||
Hildebrandt Learning Centers, LLC [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Number of centers acquired | Center | 40 | ||||||||||||||
Cash consideration | $ 19,200 | ||||||||||||||
Liabilities incurred | 500 | ||||||||||||||
Goodwill | 13,200 | ||||||||||||||
Intangible assets consisting of customer relationships and trade names | $ 5,700 | ||||||||||||||
Intangible asset useful life | 12 years | ||||||||||||||
Assets acquired and liabilities assumed, net | $ 300 | ||||||||||||||
Fixed assets | 500 | ||||||||||||||
Cash Acquired from Acquisition | $ 1,500 | ||||||||||||||
Active Learning Childcare Limited [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Number of centers acquired | Center | 9 | ||||||||||||||
Cash consideration | $ 42,200 | ||||||||||||||
Goodwill | 31,100 | ||||||||||||||
Intangible assets consisting of customer relationships and trade names | $ 3,800 | ||||||||||||||
Intangible asset useful life | 5 years | ||||||||||||||
Assets acquired and liabilities assumed, net | $ 1,800 | ||||||||||||||
Fixed assets | 9,800 | ||||||||||||||
Deferred tax liabilities, current | 700 | ||||||||||||||
Cash Acquired from Acquisition | $ 2,800 | ||||||||||||||
Hildebrandt Learning Centers and Active Learning Childcare Limited [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Revenue of acquiree since acquisition date | 29,600 | ||||||||||||||
Children's Choice Learning Centers [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Goodwill | 37,732 | $ 37,700 | 37,732 | ||||||||||||
Intangible assets consisting of customer relationships and trade names | 11,610 | 11,610 | |||||||||||||
Fixed assets | 6,172 | 6,172 | |||||||||||||
Amortization of intangible assets | 11,300 | ||||||||||||||
Adjustment to goodwill | 3,500 | ||||||||||||||
Adjustment to taxes payable | 1,200 | ||||||||||||||
Settlement of purchase price for prior year acquisitions | 3,500 | 900 | |||||||||||||
Children's Choice Learning Centers [Member] | United States [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Number of centers acquired | Center | 49 | ||||||||||||||
Cash consideration | $ 50,800 | ||||||||||||||
Acquisition related costs | 1,700 | ||||||||||||||
Kidsunlimited Group Limited [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Goodwill | 53,000 | 52,977 | 53,000 | ||||||||||||
Intangible assets consisting of customer relationships and trade names | 18,207 | ||||||||||||||
Fixed assets | 13,709 | ||||||||||||||
Deferred tax liability | 4,000 | $ 4,000 | |||||||||||||
Kidsunlimited Group Limited [Member] | United Kingdom [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Number of centers acquired | Nursery | 64 | ||||||||||||||
Cash consideration | $ 68,900 | ||||||||||||||
Acquisition related costs | 1,900 | ||||||||||||||
Percentage of share purchase agreement | 100.00% | ||||||||||||||
Series of Individually Immaterial Business Acquisitions [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Number of centers acquired | Center | 5 | ||||||||||||||
Cash consideration | 20,500 | $ 13,200 | 6,900 | ||||||||||||
Liabilities incurred | 800 | ||||||||||||||
Goodwill | 18,500 | 11,100 | 18,500 | 11,100 | 4,500 | ||||||||||
Intangible assets consisting of customer relationships and trade names | $ 2,700 | 2,100 | $ 2,700 | 2,100 | $ 3,300 | ||||||||||
Intangible asset useful life | 5 years | ||||||||||||||
Fixed assets | 900 | 900 | |||||||||||||
Working capital deficit recorded | 900 | 900 | |||||||||||||
Settlement of purchase price for prior year acquisitions | $ 100 | ||||||||||||||
Number of businesses acquired | Business | 6 | 2 | 2 | ||||||||||||
Cash Acquired from Acquisition | $ 300 | $ 2,700 | |||||||||||||
Fixed assets in relation to acquisition | 1,900 | ||||||||||||||
Working capital in relation to acquisition | 1,300 | ||||||||||||||
Series of Individually Immaterial Business Acquisitions [Member] | Other Educational Advisory Services [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Goodwill | 3,200 | ||||||||||||||
Series of Individually Immaterial Business Acquisitions [Member] | Full Service Center-based Care [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Goodwill | 1,300 | ||||||||||||||
Series of Individually Immaterial Business Acquisitions [Member] | United States [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Number of centers acquired | Center | 4 | ||||||||||||||
Series of Individually Immaterial Business Acquisitions [Member] | United Kingdom [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Number of centers acquired | Center | 4 | ||||||||||||||
Childrens Choice Learning Centers Inc And Kids Unlimited Group Limited [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Total revenues contributed by acquired business | $ 71,600 | ||||||||||||||
Adjustment | Children's Choice Learning Centers [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Goodwill | (1,086) | $ (1,086) | |||||||||||||
Intangible assets consisting of customer relationships and trade names | (1,190) | (1,190) | |||||||||||||
Fixed assets | $ 535 | $ 535 | |||||||||||||
Adjustment | Kidsunlimited Group Limited [Member] | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Goodwill | (2,372) | ||||||||||||||
Intangible assets consisting of customer relationships and trade names | 765 | ||||||||||||||
Fixed assets | $ (192) | ||||||||||||||
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 | ||||||||||||||
Amortization period of intangible assets | 8 years |
Acquisitions - Allocation of Pu
Acquisitions - Allocation of Purchase Price (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2014 | Sep. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2013 | |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 1,147,809 | $ 1,096,283 | $ 1,095,738 | |||
Series of Individually Immaterial Business Acquisitions [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash Acquired from Acquisition | 300 | 2,700 | ||||
Fixed assets | 900 | |||||
Intangible assets | 2,700 | 3,300 | 2,100 | |||
Goodwill | $ 18,500 | 4,500 | 11,100 | |||
Children's Choice Learning Centers [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Accounts receivable | 855 | |||||
Prepaid expenses and other assets | 745 | |||||
Fixed assets | 6,172 | |||||
Intangible assets | 11,610 | |||||
Goodwill | 37,732 | $ 37,700 | ||||
Total assets acquired | 57,114 | |||||
Accounts payable and accrued expenses | (5,459) | |||||
Deferred revenue and parent deposits | (867) | |||||
Total liabilities assumed | (6,326) | |||||
Purchase price | 50,788 | |||||
Children's Choice Learning Centers [Member] | Previously Reported | ||||||
Business Acquisition [Line Items] | ||||||
Accounts receivable | 981 | |||||
Prepaid expenses and other assets | 334 | |||||
Fixed assets | 5,637 | |||||
Intangible assets | 12,800 | |||||
Goodwill | 38,818 | |||||
Total assets acquired | 58,570 | |||||
Accounts payable and accrued expenses | (3,441) | |||||
Deferred revenue and parent deposits | (885) | |||||
Total liabilities assumed | (4,326) | |||||
Purchase price | $ 54,244 | |||||
Children's Choice Learning Centers [Member] | Adjustment | ||||||
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 | |||||
Accounts receivable | 1,809 | |||||
Prepaid expenses and other assets | 2,509 | |||||
Fixed assets | 13,709 | |||||
Favorable leases | 2,892 | |||||
Intangible assets | 18,207 | |||||
Goodwill | $ 53,000 | 52,977 | ||||
Total assets acquired | 96,991 | |||||
Accounts payable and accrued expenses | (5,652) | |||||
Unfavorable leases | (7,084) | |||||
Deferred revenue | (4,475) | |||||
Other current liabilities | (8,378) | |||||
Deferred taxes | (2,490) | |||||
Total liabilities assumed | (28,079) | |||||
Purchase price | 68,912 | |||||
Kidsunlimited Group Limited [Member] | Previously Reported | ||||||
Business Acquisition [Line Items] | ||||||
Cash | $ 4,888 | |||||
Accounts receivable | 1,809 | |||||
Prepaid expenses and other assets | 2,509 | |||||
Fixed assets | 13,901 | |||||
Favorable leases | 0 | |||||
Intangible assets | 17,442 | |||||
Goodwill | 55,349 | |||||
Total assets acquired | 95,898 | |||||
Accounts payable and accrued expenses | (9,450) | |||||
Unfavorable leases | (1,759) | |||||
Deferred revenue | (12,853) | |||||
Other current liabilities | 0 | |||||
Deferred taxes | (2,735) | |||||
Total liabilities assumed | (26,797) | |||||
Purchase price | $ 69,101 | |||||
Kidsunlimited Group Limited [Member] | Adjustment | ||||||
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 Opera
Acquisitions - Summary of Operating Results (Detail) - Childrens Choice Learning Centers Inc And Kids Unlimited Group Limited [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2013USD ($) | |
Business Acquisition [Line Items] | |
Revenue | $ 1,260,453 |
Net income attributable to Bright Horizons Family Solutions Inc. | $ 16,226 |
Prepaid Expenses and Other Cu50
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid rent and other occupancy costs | $ 12,165 | $ 10,672 |
Prepaid income taxes | 12,569 | 4,427 |
Prepaid workers compensation claims | 5,385 | 11,092 |
Reimbursable costs | 2,450 | 2,784 |
Prepaid insurance | 2,097 | 1,917 |
Other prepaid expenses and current assets | 9,213 | 8,255 |
Prepaid expenses and other current assets | $ 43,879 | $ 39,147 |
Fixed Assets - Summary of Fixed
Fixed Assets - Summary of Fixed Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | $ 671,512 | $ 598,168 |
Accumulated depreciation and amortization | (241,776) | (199,221) |
Fixed assets, net | 429,736 | 398,947 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | $ 140,177 | 131,767 |
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] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | $ 159,433 | 144,040 |
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 | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Leasehold improvements | Shorter of the lease term or the estimated useful life | |
Total fixed assets | $ 318,852 | 271,757 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | $ 53,050 | $ 50,604 |
Fixed Assets - Additional Infor
Fixed Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Abstract] | |||
Construction in progress | $ 17.8 | $ 11.8 | |
Depreciation expense | $ 50.7 | $ 48.4 | $ 42.7 |
Goodwill and Intangible Asset53
Goodwill and Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 1,095,738 | $ 1,096,283 |
Additions from acquisitions | 62,838 | 11,087 |
Adjustments to Huntyard acquisition | (15) | 699 |
Effect of foreign currency translation | (10,752) | (12,331) |
Ending balance | 1,147,809 | 1,095,738 |
Full Service Center-based Care [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 913,043 | 912,134 |
Additions from acquisitions | 62,838 | 11,087 |
Adjustments to Huntyard acquisition | (15) | 902 |
Effect of foreign currency translation | (10,752) | (11,080) |
Ending balance | 965,114 | 913,043 |
Back-up Dependent Care [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 158,894 | 160,145 |
Effect of foreign currency translation | (1,251) | |
Ending balance | 158,894 | 158,894 |
Other Educational Advisory Services [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 23,801 | 24,004 |
Adjustments to Huntyard acquisition | (203) | |
Ending balance | $ 23,801 | $ 23,801 |
Goodwill and Intangible Asset54
Goodwill and Intangible Assets - Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Intangible Assets [Line Items] | ||
Cost | $ 599,384 | $ 589,370 |
Accumulated amortization | (210,053) | (183,121) |
Net carrying amount | 389,331 | 406,249 |
Cost | 416,304 | 405,923 |
Accumulated amortization | (210,053) | (183,121) |
Net carrying amount | $ 206,251 | $ 222,802 |
Customer Relationship [Member] | ||
Intangible Assets [Line Items] | ||
Weighted average amortization period | 14 years | 15 years |
Cost | $ 410,205 | $ 400,097 |
Accumulated amortization | (207,257) | (180,900) |
Net carrying amount | $ 202,948 | $ 219,197 |
Trade Names [Member] | ||
Intangible Assets [Line Items] | ||
Weighted average amortization period | 8 years | 8 years |
Cost | $ 6,046 | $ 5,772 |
Accumulated amortization | (2,748) | (2,177) |
Net carrying amount | $ 3,298 | $ 3,595 |
Non-Compete Agreements [Member] | ||
Intangible Assets [Line Items] | ||
Weighted average amortization period | 5 years | 5 years |
Cost | $ 53 | $ 54 |
Accumulated amortization | (48) | (44) |
Net carrying amount | 5 | 10 |
Trade Names [Member] | ||
Intangible Assets [Line Items] | ||
Cost | 183,080 | 183,447 |
Net carrying amount | $ 183,080 | $ 183,447 |
Goodwill and Intangible Asset55
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 27,989 | $ 28,999 | $ 30,075 |
Goodwill and Intangible Asset56
Goodwill and Intangible Assets - Estimated Amortization Expense Related to Intangible Assets (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,016 | $ 27,922 |
2,017 | 26,231 |
2,018 | 24,903 |
2,019 | 24,099 |
2,020 | $ 23,708 |
Accounts Payable and Accrued 57
Accounts Payable and Accrued Expenses - Summary of Accounts Payable and Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 26,944 | $ 12,784 |
Accrued payroll and employee benefits | 46,705 | 59,364 |
Accrued insurance | 6,819 | 16,154 |
Accrued occupancy costs | 3,541 | 3,121 |
Accrued professional fees | 2,575 | 2,169 |
Accrued interest | 869 | 1,004 |
Other accrued expenses | 27,323 | 21,829 |
Accounts payable and accrued expenses | $ 114,776 | $ 116,425 |
Other Current Liabilities - Sum
Other Current Liabilities - Summary of Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Customer amounts on deposit | $ 12,395 | $ 10,477 |
Deferred rent and other occupancy costs | 3,438 | 2,847 |
Income taxes payable | 1,916 | 4,802 |
Unfavorable leases | 776 | 658 |
Other liabilities | 1,209 | 1,616 |
Other current liabilities | $ 19,734 | $ 20,400 |
Other Long-Term Liabilities - S
Other Long-Term Liabilities - Summary of Other Long-Term Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Other Liabilities Disclosure [Abstract] | ||
Liabilities for workers compensation claims | $ 18,363 | $ 3,400 |
Customer amounts on deposit | 12,071 | 9,199 |
Customer amounts on deposit | 8,573 | 4,709 |
Liabilities for workers compensation claims | 545 | 1,594 |
Other liabilities | 4,630 | 4,499 |
Other long-term liabilities | $ 44,182 | $ 23,401 |
Credit Arrangements and Debt 60
Credit Arrangements and Debt Obligations - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule Of Borrowings [Line Items] | ||
Original issue discount and deferred financing costs | $ (14,439) | $ (18,023) |
Total debt | 915,211 | 921,177 |
Current portion of long-term debt | 9,550 | 9,550 |
Long-term debt | 905,661 | 911,627 |
Term Loan [Member] | ||
Schedule Of Borrowings [Line Items] | ||
Senior notes | $ 929,650 | $ 939,200 |
Credit Arrangements and Debt 61
Credit Arrangements and Debt Obligations - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 26, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ||||
Borrowings on revolving line of credit | $ 24,000 | $ 0 | ||
Financing fees | 14,200 | |||
Discount and issuance cost | 9,600 | |||
Amortization of deferred financing costs | 2,200 | 1,900 | $ 1,700 | |
Amortization expense of original issuance discount costs | $ 1,400 | $ 1,100 | $ 1,000 | |
Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Increase in revolving credit facility | 25.00% | |||
Senior Credit Facilities [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issuance, principal amount | $ 1,100,000 | |||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issuance principal payments, final payment date | Jan. 30, 2018 | |||
Secured Term Loan [Member] | Senior Credit Facilities [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issuance, principal amount | $ 955,000 | |||
Debt issuance, quarterly principal payments | $ 2,400 | |||
Debt issuance principal payments, final payment date | Jan. 30, 2020 | |||
Effective interest rate for the term loans | 4.10% | 3.80% | ||
Debt issuance, weighted average interest rate | 4.10% | 3.90% | ||
Secured Term Loan [Member] | Senior Credit Facilities [Member] | Bank Base Rate [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issuance interest rate, percentage added to base | 1.75% | |||
Secured Term Loan [Member] | Senior Credit Facilities [Member] | Bank Base Rate [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issuance interest rate, percentage added to base | 2.50% | |||
Secured Term Loan [Member] | Senior Credit Facilities [Member] | Eurodollar Rate [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issuance interest rate, percentage added to base | 2.75% | |||
Secured Term Loan [Member] | Senior Credit Facilities [Member] | Eurodollar Rate [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issuance interest rate, percentage added to base | 3.50% | |||
Revolving Credit Facility [Member] | Eurodollar Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issuance interest rate, percentage added to base | 1.00% | |||
Revolving Credit Facility [Member] | Federal Funds Effective Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issuance interest rate, percentage added to base | 0.50% | |||
Revolving Credit Facility [Member] | Senior Credit Facilities [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issuance, principal amount | $ 100,000 | |||
Debt issuance interest rate, percentage added to base | 2.75% | |||
Debt issuance, weighted average interest rate | 3.80% | 5.00% | ||
Borrowings on revolving line of credit | $ 24,000 | |||
Remaining borrowing capacity | $ 76,000 | |||
Revolving Credit Facility [Member] | Senior Credit Facilities [Member] | Bank Base Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issuance interest rate, percentage added to base | 1.75% | |||
Senior Secured Term Loans [Member] | Senior Credit Facilities [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issuance, principal amount | $ 790,000 | |||
Additional Term Loans [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Commitment fees percentage on unused portion of revolving credit facility | 0.375% | |||
Additional Term Loans [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Commitment fees percentage on unused portion of revolving credit facility | 0.50% | |||
Additional Term Loans [Member] | Senior Credit Facilities [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issuance, principal amount | $ 165,000 | |||
Additional Term Loans [Member] | Senior Credit Facilities [Member] | Prime Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issuance base rate, floor | 2.00% | |||
Additional Term Loans [Member] | Senior Credit Facilities [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issuance base rate, floor | 1.00% | |||
Subsequent Event [Member] | Revolving Credit Facility [Member] | Senior Credit Facilities [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issuance, principal amount | $ 225,000 | |||
Subsequent Event [Member] | Revolving Credit Facility [Member] | Senior Credit Facilities [Member] | Bank Base Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issuance interest rate, percentage added to base | 1.75% | |||
Subsequent Event [Member] | Revolving Credit Facility [Member] | Senior Credit Facilities [Member] | Bank Base Rate [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issuance interest rate, percentage added to base | 1.25% | |||
Subsequent Event [Member] | Revolving Credit Facility [Member] | Senior Credit Facilities [Member] | Bank Base Rate [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issuance interest rate, percentage added to base | 1.75% | |||
Subsequent Event [Member] | Revolving Credit Facility [Member] | Senior Credit Facilities [Member] | Eurodollar Rate [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issuance interest rate, percentage added to base | 2.25% | |||
Subsequent Event [Member] | Revolving Credit Facility [Member] | Senior Credit Facilities [Member] | Eurodollar Rate [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issuance interest rate, percentage added to base | 2.75% |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interest - Additional Information (Detail) - Netherlands [Member] - USD ($) $ in Millions | Dec. 31, 2013 | Dec. 31, 2014 | Nov. 23, 2012 | Jul. 31, 2011 |
Redeemable Noncontrolling Interest [Line Items] | ||||
Ownership interest acquired | 18.50% | 37.00% | 18.50% | 63.00% |
Noncontrolling interest | 18.50% | 18.50% | ||
Noncontrolling interest recorded | $ 3.9 | |||
Non controlling interests acquired | $ 4.1 |
Income Taxes - Income (Loss) Be
Income Taxes - Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 134,611 | $ 110,585 | $ 5,109 |
Foreign | 5,545 | 1,729 | (298) |
Income before income taxes | $ 140,156 | $ 112,314 | $ 4,811 |
Income Taxes - Income Tax (Bene
Income Taxes - Income Tax (Benefit) Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current tax expense (benefit) | |||
Federal | $ 29,236 | $ 45,628 | $ 10,546 |
State | 8,723 | 8,753 | 591 |
Foreign | 9,028 | (726) | (5,260) |
Current tax expense (benefit) | 46,987 | 53,655 | 5,877 |
Deferred tax (benefit) expense | |||
Federal | (11,014) | (10,497) | (9,080) |
State | 6,776 | (948) | (1,179) |
Foreign | 3,480 | (1,931) | (3,151) |
Deferred tax (benefit) expense | (758) | (13,376) | (13,410) |
Income tax expense (benefit) | $ 46,229 | $ 40,279 | $ (7,533) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Federal Statutory Rate to Effective Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Federal tax expense computed at statutory rate | $ 49,055 | $ 39,310 | $ 1,684 |
State tax expense (benefit), net of federal tax | 5,849 | 5,121 | (193) |
Valuation allowance, net | (185) | 245 | 3 |
Intercompany interest | (6,919) | 0 | 0 |
Permanent differences and other, net | (901) | 277 | (234) |
Change in tax rate | 319 | (134) | (94) |
Change to uncertain tax positions, net | (333) | (1,523) | (4,850) |
Foreign rate differential | (656) | (3,017) | (3,849) |
Income tax expense (benefit) | $ 46,229 | $ 40,279 | $ (7,533) |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Liability (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Reserve on assets | $ 566 | $ 466 |
Net operating loss and credit carryforwards | 1,281 | 1,659 |
Liabilities not yet deductible | 33,438 | 28,045 |
Deferred revenue | 2,418 | 2,724 |
Stock-based compensation | 12,277 | 10,964 |
Depreciation | 53 | 73 |
Other | 934 | 1,386 |
Deferred tax assets, gross | 50,967 | 45,317 |
Valuation allowance | (1,111) | (1,296) |
Total deferred tax assets | 49,856 | 44,021 |
Deferred tax liabilities: | ||
Intangible assets | (144,402) | (143,732) |
Depreciation | (18,554) | (13,686) |
Total deferred tax liabilities | 162,956 | 157,418 |
Net deferred tax liability | $ (113,100) | $ (113,397) |
Income Taxes - Reconciliation67
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 713 | $ 2,034 | $ 7,412 |
Additions for tax positions of prior years | 353 | 0 | 540 |
Additions for tax positions of current year | 353 | 0 | 0 |
Settlements | (50) | 0 | (1,110) |
Reductions for tax positions of prior years | 0 | (490) | (4,108) |
Lapses of statutes of limitations | (663) | (831) | (712) |
Effect of foreign currency adjustments | 0 | 0 | 12 |
Ending balance | $ 706 | $ 713 | $ 2,034 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2015USD ($)Item | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Income Tax Disclosure [Line Items] | |||
Deferred tax asset, net operating losses, foreign | $ 1,400,000 | ||
Deferred tax asset, net operating loss, state | 100,000 | ||
Valuation allowance, net operating losses | 1,111,000 | $ 1,296,000 | |
Deferred tax liability | 113,100,000 | 113,397,000 | |
Undistributed earnings of foreign subsidiaries | $ 46,400,000 | ||
Likelihood for being realized upon settlement | 50.00% | ||
Penalties and interest expense (less than $100,000 in 2014 and 2013) | $ 0 | 100,000 | $ 100,000 |
Liability for interest and penalties | 0 | $ 900,000 | |
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 | $ 8,600,000 | ||
Foreign [Member] | Valuation Allowance, Other Tax Carryforward [Member] | |||
Income Tax Disclosure [Line Items] | |||
Valuation allowance, net operating losses | 1,100,000 | ||
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 | Item | 2 | ||
Tax year subject to audit, start | 2,010 | ||
Tax year subject to audit, end | 2,015 | ||
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 | $ 6,400,000 | ||
Domestic Tax Authority [Member] | |||
Income Tax Disclosure [Line Items] | |||
Statute of limitations | 3 years |
Stockholder's Equity and Stock-
Stockholder's Equity and Stock-Based Compensation - Additional Information (Detail) | Nov. 18, 2015shares | Aug. 10, 2015shares | May. 27, 2015shares | Dec. 10, 2014shares | Mar. 25, 2014shares | Jun. 19, 2013shares | Feb. 21, 2013shares | Jan. 11, 2013shares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)shares | Feb. 04, 2015USD ($) | Mar. 28, 2014USD ($) | Jan. 24, 2013shares | Dec. 31, 2012USD ($)shares |
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||||
Common stock, outstanding (in shares) | shares | 60,008,136 | 61,534,802 | |||||||||||||
Common stock conversion ratio, Class L common stock into Class A common stock | 1.9704 | ||||||||||||||
Issuance of Class L common stock (in shares) | shares | 11,600,000 | ||||||||||||||
Number of preferred stock issuable by BOD | shares | 25,000,000 | 25,000,000 | |||||||||||||
Shares authorized to be repurchased by BOD | $ | $ 250,000,000 | ||||||||||||||
Stock repurchased during period (shares) | shares | 2,200,000 | ||||||||||||||
Stock repurchased during period | $ | $ 128,100,000 | ||||||||||||||
Remaining authorized repurchase amount | $ | $ 121,900,000 | ||||||||||||||
Shares repurchased (in shares) | shares | 5,000,000 | 0 | |||||||||||||
Shares repurchased | $ | 128,103,000 | $ 221,577,000 | |||||||||||||
Stock-based compensation | $ | 9,200,000 | 7,922,000 | $ 10,692,000 | ||||||||||||
Stock compensation expense | $ | 7,900,000 | ||||||||||||||
Income tax benefit related to share based compensation | $ | 3,700,000 | 3,200,000 | 4,300,000 | ||||||||||||
Fair value of options that vested | $ | 2,300,000 | 3,900,000 | 9,100,000 | ||||||||||||
Proceeds from issuance of restricted stock | $ | 3,864,000 | 4,709,000 | 0 | ||||||||||||
Proceeds from issuance of common stock upon exercise of options | $ | 9,811,000 | 17,422,000 | 11,040,000 | ||||||||||||
Excess tax benefits from stock-based compensation | $ | 9,397,000 | 9,123,000 | 5,923,000 | ||||||||||||
Tax benefit realized from exercise of stock options | $ | 11,600,000 | 12,900,000 | $ 8,200,000 | ||||||||||||
2008 Equity Incentive Plan [Member] | |||||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||||
Stock options, unrecognized compensation cost | $ | $ 13,500,000 | ||||||||||||||
Stock-based compensation expense | $ | $ 5,000,000 | ||||||||||||||
Options to purchase common stock | shares | 1,300,000 | ||||||||||||||
Remaining award requisite service period | 2 years | ||||||||||||||
Board of Directors Chairman [Member] | |||||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||||
Number of preferred stock issuable by BOD | shares | 25,000,000 | ||||||||||||||
Common Class A [Member] | |||||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||||
Reverse split ratio of class A common stock | 1.9704 | ||||||||||||||
Number of preferred stock issuable by BOD | shares | 25,000,000 | ||||||||||||||
Common Class A [Member] | 2008 Equity Incentive Plan [Member] | |||||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||||
Shares available for issuance | shares | 1,500,000 | ||||||||||||||
Common Stock Class L [Member] | |||||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||||
Common stock, outstanding | $ | $ 854,100,000 | ||||||||||||||
Common stock, outstanding (in shares) | shares | 1,300,000 | ||||||||||||||
Common stock conversion ratio, Class L common stock into Class A common stock | 35.1955 | ||||||||||||||
Common Stock Class L [Member] | 2008 Equity Incentive Plan [Member] | |||||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||||
Shares available for issuance | shares | 150,000 | ||||||||||||||
Undesignated Preferred Stock [Member] | |||||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||||
Common stock reclassified, authorized (in shares) | 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) | shares | 2,900,000 | ||||||||||||||
Shares available for issuance | shares | 5,000,000 | ||||||||||||||
2012 Omnibus Long-Term Incentive Plan [Member] | Minimum [Member] | |||||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||||
Option expiration | 7 years | ||||||||||||||
Five Year Service Period Based Stock Option [Member] | |||||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||||
Requisite service period | 5 years | ||||||||||||||
Five Year Service Period Based Stock Option [Member] | Second Anniversary [Member] | |||||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||||
Vesting percentage | 60.00% | ||||||||||||||
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) | shares | 9,000 | 6,066 | |||||||||||||
Equity instruments other than options, outstanding (in shares) | shares | 15,066 | ||||||||||||||
Equity instruments other than options, aggregate intrinsic value, outstanding | $ | $ 800,000 | ||||||||||||||
Granted (in dollars per share) | $ / shares | $ 53.18 | $ 39.58 | |||||||||||||
Selling, General and Administrative Expenses [Member] | |||||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||||
Stock compensation expense | $ | $ 8,700,000 | $ 7,300,000 | $ 10,700,000 | ||||||||||||
Cost of Sales [Member] | |||||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||||
Stock compensation expense | $ | 500,000 | 600,000 | |||||||||||||
Secondary Offering [Member] | |||||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||||
Issuance of Class L common stock (in shares) | shares | 3,650,000 | 3,000,000 | 3,000,000 | 8,000,000 | 7,900,000 | 9,800,000 | |||||||||
Shares authorized to be repurchased by BOD | $ | $ 225,000,000 | ||||||||||||||
Shares repurchased (in shares) | shares | 150,000 | 700,000 | 1,250,000 | 4,500,000 | |||||||||||
Restricted Stock [Member] | |||||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||||
Compensation not yet recognized | $ | $ 4,100,000 | ||||||||||||||
Percentage of price of Common Stock that preferred shares sold for | 50.00% | ||||||||||||||
Restricted Stock [Member] | Selling, General and Administrative Expenses [Member] | |||||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||||
Stock compensation expense | $ | $ 2,900,000 | 1,600,000 | |||||||||||||
Common Stock [Member] | |||||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||||
Issuance of Class L common stock (in shares) | shares | 11,615,000 | ||||||||||||||
Options, exercises in period, intrinsic value | $ | $ 28,900,000 | $ 32,300,000 | $ 15,400,000 | ||||||||||||
Granted (in shares) | shares | 481,700 | ||||||||||||||
Granted (in dollars per share) | $ / shares | $ 51.26 | ||||||||||||||
Sponsor [Member] | |||||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||||
Stock repurchased during period (shares) | shares | 2,100,000 | ||||||||||||||
Sponsor [Member] | Secondary Offering [Member] | |||||||||||||||
Shareholders Equity And Share Based Payments [Line Items] | |||||||||||||||
Shares repurchased (in shares) | shares | 4,500,000 |
Stockholders' Equity and Stoc70
Stockholders' Equity and Stock-Based Compensation - Weighted Average Assumptions for Fair Value of Stock Option (Detail) - Common Stock [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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% | 30.00% | 44.30% |
Risk free interest rate | 1.50% | 1.80% | 1.00% |
Expected life of options (years) | 5 years 3 months 18 days | 5 years 3 months 7 days | 5 years 3 months 18 days |
Weighted average fair value per share of options granted during the period | $ 15.37 | $ 11.36 | $ 10.24 |
Stockholders' Equity and Stoc71
Stockholders' Equity and Stock-Based Compensation - Stock Option Activity Under Equity Plan (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity [Line Items] | |||
Proceeds from issuance of common stock upon exercise of options | $ 9,811 | $ 17,422 | $ 11,040 |
Excess tax benefits from stock-based compensation | $ 9,397 | $ 9,123 | $ 5,923 |
Common Stock [Member] | |||
Equity [Line Items] | |||
Outstanding, years, duration | 4 years 10 months 24 days | 5 years 7 months 6 days | |
Exercisable, years, duration | 4 years 4 months 24 days | ||
Vested and expected to vest, years, duration | 4 years 10 months 24 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding at beginning of period (in shares) | 4,152,617 | ||
Granted (in shares) | 481,700 | ||
Exercised (in shares) | (694,381) | (1,212,458) | (916,695) |
Forfeited (in shares) | (121,358) | ||
Outstanding at end of period (in shares) | 3,818,578 | 4,152,617 | |
Exercisable at end of period (in shares) | 1,778,285 | ||
Vested and expected to vest at December 31, 2014 (in shares) | 3,670,606 | ||
Outstanding at beginning of period (in dollars per share) | $ 20.24 | ||
Granted (in dollars per share) | 51.26 | ||
Exercised (in dollars per share) | 14.13 | ||
Forfeited (in dollars per share) | 38.69 | ||
Outstanding at end of period (in dollars per share) | 24.68 | $ 20.24 | |
Exercisable at end of period (in dollars per share) | 14.41 | ||
Vested and expected to vest at end of period (in dollars per share) | $ 24.03 | ||
Outstanding at end of period | $ 160,900 | ||
Exercisable at December 31, 2014 | 93,200 | ||
Vested and expected to vest at end of period | $ 157,000 |
Stockholders' Equity and Stoc72
Stockholders' Equity and Stock-Based Compensation Stockholder's Equity and Stock-Based Compensation - Restricted Stock Activity (Details) - Restricted Stock [Member] $ / shares in Units, shares in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Number of Shares | |
Nonvested restricted stock shares at December 31, 2014 (in shares) | shares | 259,525 |
Granted (in shares) | shares | 163,200 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Nonvested restricted stock shares at December 31, 2015 (in shares) | shares | 422,725 |
Weighted Average Grant Date Fair Value | |
Nonvested restricted stock shares at December 31, 2014 (in dollars per share) | $ / shares | $ 18,150 |
Granted (in dollars per share) | $ / shares | 23,680 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Nonvested restricted stock shares at December 31, 2015 (in dollars per share) | $ / shares | $ 20,280 |
Aggregate Intrinsic Value of Nonvested restricted stock shares at December 31, 2015 | $ | $ 19,700 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Calculation Of Numerator And Denominator In Earnings Per Share [Line Items] | |||||||||||
Net (loss) income attributable to Bright Horizons Family Solutions Inc | $ 93,927 | $ 72,035 | $ 12,623 | ||||||||
Net income (loss) available to common shareholders - basic | $ 23,751 | $ 20,415 | $ 26,735 | $ 22,386 | $ 18,819 | $ 15,319 | $ 21,629 | $ 15,988 | 93,287 | 71,755 | 12,623 |
Net income (loss) available to unvested participating shares - basic | 640 | 280 | 0 | ||||||||
Net income (loss) available to common shareholders | 93,927 | 72,035 | 12,623 | ||||||||
Plus earnings allocated to unvested participating shares | (624) | (274) | 0 | ||||||||
Earnings allocated to common stock | $ 93,303 | $ 71,761 | $ 12,623 | ||||||||
Weighted average number of common shares: | |||||||||||
Weighted average number of common shares - basic (in shares) | 60,835,574 | 65,612,572 | 62,659,264 | ||||||||
Weighted average number of common shares - diluted (in shares) | 62,360,778 | 67,244,172 | 64,509,036 | ||||||||
Earnings (loss) per common share: | |||||||||||
Common stock-basic (in dollars per share) | $ 0.40 | $ 0.34 | $ 0.44 | $ 0.36 | $ 0.29 | $ 0.23 | $ 0.33 | $ 0.24 | $ 1.53 | $ 1.09 | $ 0.20 |
Common stock-diluted (in dollars per share) | $ 0.39 | $ 0.33 | $ 0.43 | $ 0.35 | $ 0.28 | $ 0.23 | $ 0.32 | $ 0.24 | $ 1.50 | $ 1.07 | $ 0.20 |
Common Stock [Member] | |||||||||||
Weighted average number of common shares: | |||||||||||
Weighted average number of common shares - basic (in shares) | 60,835,574 | 65,612,572 | 62,659,264 | ||||||||
Weighted average number of common shares - effect of dilutive securities (in shares) | 1,525,204 | 1,631,600 | 1,849,772 | ||||||||
Weighted average number of common shares - diluted (in shares) | 62,360,778 | 67,244,172 | 64,509,036 | ||||||||
Earnings (loss) per common share: | |||||||||||
Common stock-basic (in dollars per share) | $ 1.53 | $ 1.09 | $ 0.20 | ||||||||
Common stock-diluted (in dollars per share) | $ 1.50 | $ 1.07 | $ 0.20 | ||||||||
Common Stock [Member] | Unvested Participating Shares [Member] | |||||||||||
Weighted average number of common shares: | |||||||||||
Weighted average number of common shares - basic (in shares) | 417,285 | 255,920 | 0 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Common Stock [Member] | Employee Stock Option [Member] | |||
Earnings Per Share [Line Items] | |||
Options outstanding to purchase (in shares) | 0.2 | 0.7 | 0.1 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands, € in Millions | 12 Months Ended | ||||
Dec. 31, 2015USD ($)LetterOfCredit | Dec. 31, 2015EUR (€) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015EUR (€)LetterOfCredit | |
Contingencies And Commitments [Line Items] | |||||
Rent expense | $ 97,300 | $ 88,700 | $ 76,800 | ||
Line of credit terminated | $ 243,300 | $ 0 | $ 140,800 | ||
Number of letters of credit outstanding | LetterOfCredit | 25 | 25 | |||
Pledged Financial Instruments, Not Separately Reported, Securities for Letter of Credit Facilities | $ 1,000 | ||||
Overdraft Facility [Member] | Bank Base Rate [Member] | |||||
Contingencies And Commitments [Line Items] | |||||
Interest rate of overdraft facility | 2.15% | 2.15% | |||
Overdraft Facility [Member] | Dutch Bank [Member] | |||||
Contingencies And Commitments [Line Items] | |||||
Line of credit terminated | € | € 2.2 | ||||
Weighted average interest rate | 5.53% | ||||
Overdraft Facility [Member] | United Kingdom Bank [Member] | |||||
Contingencies And Commitments [Line Items] | |||||
Available overdraft facility for maximum borrowing | $ 400 | € 0.3 | |||
Minimum [Member] | |||||
Contingencies And Commitments [Line Items] | |||||
Operating leases, years until expiration | 10 years | 10 years | |||
Maximum [Member] | |||||
Contingencies And Commitments [Line Items] | |||||
Operating leases, years until expiration | 15 years | 15 years |
Commitments and Contingencies76
Commitments and Contingencies - Future Minimum Payments under Non-Cancelable Operating Leases (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 89,547 |
2,017 | 84,984 |
2,018 | 80,739 |
2,019 | 75,045 |
2,020 | 71,080 |
Thereafter | 441,583 |
Total future minimum lease payments | $ 842,978 |
Commitments and Contingencies77
Commitments and Contingencies - Future Minimum Payments of Long-term Debt (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 9,550 |
2,017 | 9,550 |
2,018 | 9,550 |
2,019 | 9,550 |
2,020 | 891,450 |
Total future principal payments | $ 929,650 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
401(k) Retirement Savings Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] | |||
Retirement savings plan, age to be eligible | 20 years 6 months | ||
Retirement savings plan, eligibility period | 12 months | ||
Retirement savings plan, eligibility service hours | 1000 hours | ||
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 | $ 2,500,000 | $ 2,300,000 | $ 2,100,000 |
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 | ||
Deferred compensation plan assets | 1,100,000 | 300,000 | |
Postemployment benefits liability | $ 1,200,000 | $ 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 Inform79
Segment and Geographic Information - Income from Operations by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 371,596 | $ 365,944 | $ 370,465 | $ 350,440 | $ 337,768 | $ 334,976 | $ 348,100 | $ 332,155 | $ 1,458,445 | $ 1,352,999 | $ 1,218,776 |
Amortization of intangible assets | 27,989 | 28,999 | 30,075 | ||||||||
Income from operations | $ 44,882 | $ 41,741 | $ 52,138 | $ 42,841 | $ 37,328 | $ 33,046 | $ 42,535 | $ 34,011 | 181,602 | 146,920 | 109,034 |
Operating Segments [Member] | Full Service Center-based Care [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 1,236,762 | 1,156,661 | 1,049,854 | ||||||||
Amortization of intangible assets | 26,690 | 27,696 | 29,048 | ||||||||
Income from operations | 115,149 | 92,229 | 67,287 | ||||||||
Operating Segments [Member] | Back-up Dependent Care [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 181,574 | 162,886 | 144,432 | ||||||||
Amortization of intangible assets | 725 | 725 | 725 | ||||||||
Income from operations | 56,891 | 49,317 | 39,710 | ||||||||
Operating Segments [Member] | Other Educational Advisory Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 40,109 | 33,452 | 24,490 | ||||||||
Amortization of intangible assets | 574 | 578 | 302 | ||||||||
Income from operations | $ 9,562 | $ 5,374 | $ 2,037 |
Segment and Geographic Inform80
Segment and Geographic Information - Income from Operations by Segment - Footnotes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Expenses incurred in connection with the Offering | $ 0.9 | $ 2.7 | |
Contract Termination And Stock Option Expenses | $ 5 | ||
Expenses incurred in connection with the modification of stock options | 1.3 | ||
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 | ||
Expenses incurred in connection with the modification of stock options | 2.4 | 15.1 | |
Back-up Dependent Care [Member] | |||
Segment Reporting Information [Line Items] | |||
Expenses incurred in connection with the modification of stock options | $ 0.3 | 1.9 | |
Other Educational Advisory Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Expenses incurred in connection with the modification of stock options | $ 0.8 |
Segment and Geographic Inform81
Segment and Geographic Information - Revenue and Long-Lived Assets by Geographic Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 371,596 | $ 365,944 | $ 370,465 | $ 350,440 | $ 337,768 | $ 334,976 | $ 348,100 | $ 332,155 | $ 1,458,445 | $ 1,352,999 | $ 1,218,776 |
Long-lived assets | 429,736 | 398,947 | 429,736 | 398,947 | 390,894 | ||||||
North America [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 1,182,629 | 1,074,951 | 980,537 | ||||||||
Long-lived assets | 308,469 | 277,971 | 308,469 | 277,971 | 260,483 | ||||||
Europe and Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 275,816 | 278,048 | 238,239 | ||||||||
Long-lived assets | $ 121,267 | $ 120,976 | $ 121,267 | $ 120,976 | $ 130,411 |
Segment and Geographic Inform82
Segment and Geographic Information - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 371,596 | $ 365,944 | $ 370,465 | $ 350,440 | $ 337,768 | $ 334,976 | $ 348,100 | $ 332,155 | $ 1,458,445 | $ 1,352,999 | $ 1,218,776 |
Long-lived assets | 429,736 | 398,947 | 429,736 | 398,947 | 390,894 | ||||||
United States [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,200,000 | 1,100,000 | 975,500 | ||||||||
Long-lived assets | 306,600 | 275,700 | 306,600 | 275,700 | 257,800 | ||||||
United Kingdom [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 238,500 | 239,600 | 204,700 | ||||||||
Long-lived assets | $ 107,800 | $ 104,000 | $ 107,800 | $ 104,000 | $ 108,900 |
Transactions with Related Par83
Transactions with Related Parties - Additional Information (Detail) - USD ($) $ in Millions | Nov. 18, 2015 | Aug. 10, 2015 | May. 27, 2015 | Dec. 10, 2014 | Mar. 25, 2014 | Jun. 19, 2013 | Feb. 21, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | ||||||||||
Issuance of Class L common stock (in shares) | 11,600,000 | |||||||||
Shares repurchased (in shares) | 5,000,000 | 0 | ||||||||
Sponsor [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Annual payment under the agreement | $ 2.5 | |||||||||
Agreement expiration date | May 31, 2018 | |||||||||
Agreement termination fee | $ 7.5 | |||||||||
Percentage of common stock held by investment funds affiliated with sponsor | 27.50% | |||||||||
Secondary Offering [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Issuance of Class L common stock (in shares) | 3,650,000 | 3,000,000 | 3,000,000 | 8,000,000 | 7,900,000 | 9,800,000 | ||||
Shares repurchased (in shares) | 150,000 | 700,000 | 1,250,000 | 4,500,000 | ||||||
Secondary Offering [Member] | Sponsor [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Shares repurchased (in shares) | 4,500,000 |
Quarterly Results (Unaudited) -
Quarterly Results (Unaudited) - Schedule of Quarterly Financial Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 371,596,000 | $ 365,944,000 | $ 370,465,000 | $ 350,440,000 | $ 337,768,000 | $ 334,976,000 | $ 348,100,000 | $ 332,155,000 | $ 1,458,445,000 | $ 1,352,999,000 | $ 1,218,776,000 |
Gross profit | 89,903,000 | 85,384,000 | 95,860,000 | 86,608,000 | 80,478,000 | 72,861,000 | 83,114,000 | 77,149,000 | 357,755,000 | 313,602,000 | 280,936,000 |
Income from operations | 44,882,000 | 41,741,000 | 52,138,000 | 42,841,000 | 37,328,000 | 33,046,000 | 42,535,000 | 34,011,000 | 181,602,000 | 146,920,000 | 109,034,000 |
Net income | 23,918,000 | 20,558,000 | 26,919,000 | 22,532,000 | 18,894,000 | 15,379,000 | 21,714,000 | 16,048,000 | 93,927,000 | 72,035,000 | 12,344,000 |
Net income (loss) available to common shareholders - basic | 23,751,000 | 20,415,000 | 26,735,000 | 22,386,000 | 18,819,000 | 15,319,000 | 21,629,000 | 15,988,000 | 93,287,000 | 71,755,000 | 12,623,000 |
Net income (loss) available to common shareholders - diluted | $ 23,755,000 | $ 20,419,000 | $ 26,739,000 | $ 22,390,000 | $ 18,820,000 | $ 15,320,000 | $ 21,631,000 | $ 15,990 | $ 93,303,000 | $ 71,761,000 | $ 12,623,000 |
Earnings (loss) per share: | |||||||||||
Common stock - basic (in dollars per share) | $ 0.40 | $ 0.34 | $ 0.44 | $ 0.36 | $ 0.29 | $ 0.23 | $ 0.33 | $ 0.24 | $ 1.53 | $ 1.09 | $ 0.20 |
Common stock - diluted (in dollars per share) | $ 0.39 | $ 0.33 | $ 0.43 | $ 0.35 | $ 0.28 | $ 0.23 | $ 0.32 | $ 0.24 | $ 1.50 | $ 1.07 | $ 0.20 |