Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 27, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | BRIGHT HORIZONS FAMILY SOLUTIONS INC. | |
Entity Central Index Key | 1,437,578 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding (shares) | 59,302,552 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 42,265 | $ 14,633 |
Accounts receivable—net | 96,105 | 97,212 |
Prepaid expenses and other current assets | 57,416 | 42,554 |
Total current assets | 195,786 | 154,399 |
Fixed assets—net | 567,747 | 529,432 |
Goodwill | 1,302,549 | 1,267,705 |
Other intangibles—net | 356,469 | 374,566 |
Other assets | 40,599 | 32,915 |
Total assets | 2,463,150 | 2,359,017 |
Current liabilities: | ||
Current portion of long-term debt | 10,750 | 10,750 |
Borrowings on revolving credit facility | 65,500 | 76,000 |
Accounts payable and accrued expenses | 143,779 | 125,400 |
Deferred revenue | 151,283 | 146,692 |
Other current liabilities | 27,129 | 28,738 |
Total current liabilities | 398,441 | 387,580 |
Long-term debt—net | 1,048,643 | 1,054,009 |
Deferred rent and related obligations | 65,673 | 59,518 |
Other long-term liabilities | 56,749 | 52,048 |
Deferred revenue | 8,043 | 6,284 |
Deferred income taxes | 111,088 | 111,711 |
Total liabilities | 1,688,637 | 1,671,150 |
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 25,000,000 shares authorized and no shares issued or outstanding at September 30, 2017 and December 31, 2016 | 0 | 0 |
Common stock, $0.001 par value; 475,000,000 shares authorized; 58,886,706 and 58,910,282 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively | 59 | 59 |
Additional paid-in capital | 831,174 | 899,076 |
Accumulated other comprehensive loss | (40,419) | (89,448) |
Accumulated deficit | (16,301) | (121,820) |
Total stockholders’ equity | 774,513 | 687,867 |
Total liabilities and stockholders’ equity | $ 2,463,150 | $ 2,359,017 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (shares) | 25,000,000 | 25,000,000 |
Preferred stock, issued (shares) | 0 | 0 |
Preferred stock, outstanding (shares) | 0 | 0 |
Common stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (shares) | 475,000,000 | 475,000,000 |
Common stock, issued (shares) | 58,886,706 | 58,910,282 |
Common stock, outstanding (shares) | 58,886,706 | 58,910,282 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenue | $ 433,316 | $ 383,929 | $ 1,301,026 | $ 1,171,304 |
Cost of services | 330,122 | 292,457 | 978,557 | 879,673 |
Gross profit | 103,194 | 91,472 | 322,469 | 291,631 |
Selling, general and administrative expenses | 46,369 | 39,616 | 141,384 | 120,403 |
Amortization of intangible assets | 8,191 | 7,141 | 24,241 | 21,338 |
Other Expenses | 3,671 | 0 | 3,671 | 0 |
Income from operations | 44,963 | 44,715 | 153,173 | 149,890 |
Interest expense—net | (10,824) | (10,502) | (32,252) | (31,490) |
Income before income taxes | 34,139 | 34,213 | 120,921 | 118,400 |
Income tax expense | (3,034) | (11,703) | (15,402) | (40,760) |
Net income | $ 31,105 | $ 22,510 | $ 105,519 | $ 77,640 |
Earnings per common share: | ||||
Common stock-basic (usd per share) | $ 0.53 | $ 0.38 | $ 1.78 | $ 1.30 |
Common stock-diluted (usd per share) | $ 0.51 | $ 0.37 | $ 1.74 | $ 1.27 |
Weighted average number of common shares outstanding: | ||||
Common stock-diluted (shares) | 60,088,078 | 60,275,902 | 60,457,004 | 60,737,185 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 31,105 | $ 22,510 | $ 105,519 | $ 77,640 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 18,983 | (7,054) | 49,029 | (31,894) |
Total other comprehensive income (loss) | 18,983 | (7,054) | 49,029 | (31,894) |
Comprehensive income | $ 50,088 | $ 15,456 | $ 154,548 | $ 45,746 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 105,519 | $ 77,640 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 70,289 | 62,090 |
Amortization of original issue discount and deferred financing costs | 1,323 | 2,861 |
Loss (gain) on foreign currency transactions | 1,608 | (56) |
Non-cash revenue and other | 0 | (29) |
Loss (gain) on disposal of fixed assets | 2,282 | (79) |
Stock-based compensation | 8,777 | 8,476 |
Deferred rent | 3,647 | 1,614 |
Deferred income taxes | 1,038 | (4,729) |
Changes in assets and liabilities: | ||
Accounts receivable | 2,324 | 13,963 |
Prepaid expenses and other current assets | (13,796) | 49 |
Accounts payable and accrued expenses | 17,815 | (1,814) |
Deferred revenue | 4,149 | (3,531) |
Accrued rent and related obligations | 1,684 | 6,880 |
Other assets | (7,254) | 1,157 |
Other current and long-term liabilities | 1,806 | 461 |
Net cash provided by operating activities | 201,211 | 164,953 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of fixed assets—net | (63,070) | (50,466) |
Payments and settlements for acquisitions—net of cash acquired | (17,526) | (22,307) |
Net cash used in investing activities | (80,596) | (72,773) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings under revolving credit facility | 475,001 | 270,500 |
Payments under revolving credit facility | (485,501) | (264,500) |
Principal payments of long-term debt | (5,375) | (7,163) |
Payments for debt issuance costs | (1,314) | (1,002) |
Purchase of treasury stock | (74,935) | (95,677) |
Taxes paid related to the net share settlement of stock options and restricted stock | (25,830) | (7,747) |
Proceeds from issuance of common stock upon exercise of options | 18,709 | 9,148 |
Proceeds from issuance of restricted stock | 4,363 | 3,682 |
Payments of contingent consideration for acquisitions | (185) | (750) |
Tax benefits from stock-based compensation | 0 | 10,484 |
Net cash used in financing activities | (95,067) | (83,025) |
Effect of exchange rates on cash and cash equivalents | 2,084 | (1,210) |
Net increase in cash and cash equivalents | 27,632 | 7,945 |
Cash and cash equivalents—beginning of period | 14,633 | 11,539 |
Cash and cash equivalents—end of period | 42,265 | 19,484 |
NON-CASH TRANSACTION: | ||
Fixed asset purchases recorded in accounts payable and accrued expenses | 3,000 | 3,000 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Cash payments of interest | 33,450 | 28,752 |
Cash payments of taxes | $ 24,996 | $ 29,405 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | ORGANIZATION AND BASIS OF PRESENTATION 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, 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 management, and other family support services. Basis of Presentation —The accompanying unaudited condensed consolidated balance sheet as of September 30, 2017 and the condensed consolidated statements of income, comprehensive income and cash flows for the interim periods ended September 30, 2017 and 2016 have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP” or “GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required in accordance with U.S. GAAP for complete financial statements and should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . In the opinion of the Company’s management, the Company’s unaudited condensed consolidated balance sheet as of September 30, 2017 and the condensed consolidated statements of income, comprehensive income and cash flows for the interim periods ended September 30, 2017 and 2016 , reflect all adjustments (consisting only of normal and recurring adjustments) necessary to present fairly the results of the interim periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full year. Stock Offerings —On January 30, 2013 , the Company completed an initial public offering (the “Offering”) and issued a total of 11.6 million shares of common stock. The Company also authorized 25 million shares of undesignated preferred stock for issuance. Certain of the Company’s stockholders have sold a total of 43.6 million shares of the Company’s common stock in secondary offerings (“secondary offerings”), including 4.15 million in the nine months ended September 30, 2017 . The Company did not receive proceeds from the sale of shares in the secondary offerings. The Company incurred $0.2 million in the nine months ended September 30, 2017 in offering costs related to secondary offerings, which were included in selling, general and administrative expenses. The Company purchased 0.7 million of the shares sold in secondary offerings in the nine months ended September 30, 2017 from investment funds affiliated with Bain Capital Partners, LLC at the same price per share paid by the underwriter to the selling stockholders. As of September 30, 2017 , investment funds affiliated with Bain Capital Partners, LLC held approximately 14.2% of our common stock. On August 2, 2016 , the Board of Directors of the Company authorized a share repurchase program of up to $300 million of the Company’s outstanding common stock, effective August 5, 2016 , of which $207.9 million remained available at September 30, 2017 . The share repurchase program, which has no expiration date, replaced the prior $250 million authorization announced in February 2015 , of which $26.3 million remained available at the date the program was replaced. The shares may be repurchased from time to time in open market transactions at prevailing market prices, in privately negotiated transactions, under Rule 10b5-1 plans, or by other means in accordance with federal securities laws. Recently Adopted Pronouncement — In March 2016 , the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09 : Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments in this update simplify several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification on the statement of cash flows. The update is effective for annual reporting periods beginning after December 15, 2016 , including interim periods within those annual reporting periods with early adoption permitted. The Company adopted the standard prospectively on January 1, 2017 , and as such, prior periods have not been adjusted. The adoption of this guidance impacted the Company’s income tax expense, effective tax rate, and weighted average shares outstanding. Upon adoption, the Company now recognizes all excess tax benefits and tax deficiencies as income tax benefits or expenses on the income statement, which were previously recorded to additional paid-in capital on the balance sheet. As a result, the Company decreased tax expense and increased net income by $3.4 million and $21.9 million in the three and nine months ended September 30, 2017 , respectively, in relation to the excess tax benefit associated with the exercise of stock options and vesting of restricted stock. Additionally, weighted average diluted common shares increased in the three and nine months ended September 30, 2017 by approximately 0.4 million shares under the new methodology and tax benefits from stock option exercises were included with cash flows from operating activities as a component of net income rather than as cash flows from financing activities under previous guidance. New Accounting Pronouncements — In February 2016 , the FASB issued 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. This guidance is effective for interim and annual reporting periods beginning after December 15, 2018 , and is to be applied using a modified retrospective approach. Early adoption is permitted. The Company is currently in the process of evaluating the impact of adoption of this ASU on the Company's consolidated financial statements. Based on its preliminary assessment, the Company anticipates that the adoption of this standard will have a material impact on the Company's consolidated financial statements, as all long-term leases will be capitalized on the consolidated balance sheet. In May 2014 , the FASB issued ASU 2014-09 , Revenue from Contracts with Customers (Topic 606) , which provides a single comprehensive model for revenue recognition. The FASB has subsequently issued various ASUs which amend or clarify specific areas of the guidance. 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. This new guidance is effective for the Company beginning January 1, 2018 and can be adopted using either a full retrospective or modified approach. The Company plans to adopt the standard using the modified approach. The Company is in the process of completing the evaluation of the impact of adoption of this ASU on the Company’s consolidated financial statements, but does not currently anticipate it will have a material impact on the Company’s consolidated results of operations. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS AND DISPOSITIONS The Company’s growth strategy includes expansion through strategic and synergistic acquisitions. The goodwill resulting from these acquisitions arises largely from synergies expected from combining the operations of the businesses acquired with our existing operations, as well as from benefits derived from gaining the related assembled workforce. 2017 Acquisitions During the nine months ended September 30, 2017 , the Company acquired ten centers in the Netherlands and three centers in the United States, in six separate business acquisitions, which were each accounted for as business combinations. The centers were acquired for cash consideration of $17.5 million , net of cash acquired of $0.1 million , and consideration payable of $0.2 million . The Company recorded goodwill of $13.1 million related to the full service center-based care segment, a portion of which will be deductible for tax purposes. In addition, the Company recorded intangible assets of $2.0 million , consisting of customer relationships that will be amortized over three to four years, as well as fixed assets of $4.6 million , deferred tax liabilities of $0.6 million , and a working capital deficit of $1.4 million in relation to these acquisitions. The allocation of purchase price consideration is based on preliminary estimates of fair value; such estimates and assumptions are subject to change within the measurement period (up to one year from the acquisition date). As of September 30, 2017 , the purchase price allocations for these acquisitions remain open as the Company gathers additional information regarding the assets acquired and the liabilities assumed. The operating results for the acquired businesses are included in the consolidated results of operations from the date of acquisition, which were not material to the Company’s financial results. 2017 Dispositions During the three months ended September 30, 2017 , the Company disposed of its remaining three centers in Ireland for a loss of $3.7 million , which was included in other expenses in the consolidated statements of income, offset by a tax benefit of approximately $7.0 million that was recorded from the loss on investment of a subsidiary. 2016 Acquisitions Conchord Limited On November 10, 2016 , the Company acquired all of the outstanding shares of Conchord Limited, which operates Asquith Day Nurseries & Pre-Schools (“Asquith ” ), a group of 90 child care centers and programs throughout the United Kingdom, for cash consideration of $206.1 million , which was accounted for as a business combination. The purchase price was financed with available cash on hand and funds available under the Company’s senior credit facilities. The Company incurred transaction costs of approximately $1.4 million for this transaction, which were included in selling, general and administrative expenses in 2016. The purchase price for this acquisition has been allocated based on preliminary 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 December 31, 2016 Measurement period adjustments At acquisition date Cash $ 5,210 $ 75 $ 5,285 Prepaid expenses and other assets 5,700 (237 ) 5,463 Fixed assets 96,868 (720 ) 96,148 Intangible assets 10,540 1,860 12,400 Goodwill 122,714 (6,028 ) 116,686 Total assets acquired 241,032 (5,050 ) 235,982 Accounts payable and accrued expenses (18,696 ) 1,719 (16,977 ) Deferred revenue and parent deposits (5,394 ) 342 (5,052 ) Deferred tax liabilities (7,793 ) 2,993 (4,800 ) Other long-term liabilities (3,048 ) (4 ) (3,052 ) Total liabilities assumed (34,931 ) 5,050 (29,881 ) Purchase price $ 206,101 $ — $ 206,101 The Company acquired fixed assets of $96.1 million , including 39 properties. The Company recorded goodwill of $116.7 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 of $9.9 million of customer relationships that will be amortized over five years and $2.5 million of trademarks that will be amortized over six years. The allocation of purchase price consideration is based on preliminary estimates of fair value; such estimates and assumptions are subject to change within the measurement period (up to one year from the acquisition date). As of September 30, 2017 , the purchase price allocation for Asquith remains open as the Company gathers additional information regarding the assets acquired and the liabilities assumed, primarily in relation to working capital. The operating results for Asquith are included in the consolidated results of operations from the date of acquisition. The following table presents consolidated pro forma information as if the acquisition of Asquith had occurred on January 1, 2015 (in thousands): Pro forma (Unaudited) Nine Months Ended Revenue $ 1,241,675 Net income $ 77,002 The unaudited pro forma results reflect certain adjustments related to the acquisition, such as increased amortization expense related to the acquired intangible assets as well as financing costs. Asquith contributed total revenue of $69.3 million in the nine months ended September 30, 2017 . The Company has determined that the presentation of net income, from the date of acquisition, is impracticable due to the integration of the operations upon acquisition. Other 2016 Acquisitions During the year ended December 31, 2016 , the Company also acquired four centers in the United States and eight centers in the United Kingdom in four separate business acquisitions, which were each accounted for as business combinations. The centers were acquired for cash consideration of $18.1 million and contingent consideration of $1.1 million . The Company recorded goodwill of $17.0 million related to the full service center-based care segment, a portion of which will be deductible for tax purposes. In addition, the Company recorded intangible assets of $3.4 million , consisting primarily of customer relationships that will be amortized over five years , and a working capital deficit of $1.8 million , including cash of $0.3 million , were also recorded in relation to these acquisitions. During the year ended December 31, 2016 , the Company acquired all of the outstanding shares of a provider of back-up care in the United States, which was accounted for as a business combination. The business was acquired for cash consideration of $10.4 million and contingent consideration of $3.8 million . The Company recorded goodwill of $9.2 million related to the back-up care segment, which will not be deductible for tax purposes. In addition, the Company recorded intangible assets of $4.9 million , consisting primarily of the provider network that will be amortized over five years , technology of $2.6 million , and working capital of $0.4 million , including cash of $0.3 million , in relation to this acquisition. The allocation of purchase price consideration is based on preliminary estimates of fair value; such estimates and assumptions are subject to change within the measurement period (up to one year from the acquisition date). As of September 30, 2017 , the purchase price allocation for one of the 2016 acquisitions remains open as the Company gathers additional information regarding the assets acquired and the liabilities assumed. The operating results for the acquired businesses are included in the consolidated results of operations from the dates of acquisition, which were not material to the Company’s financial results. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS The changes in the carrying amount of goodwill for the year ended December 31, 2016 and the nine months ended September 30, 2017 are as follows (in thousands): Full service center-based care Back-up dependent care Other educational advisory services Total Balance at January 1, 2016 $ 965,114 $ 158,894 $ 23,801 $ 1,147,809 Additions from acquisitions 139,539 9,214 — 148,753 Adjustments to prior year acquisitions 73 — — 73 Effect of foreign currency translation (28,930 ) — — (28,930 ) Balance at December 31, 2016 1,075,796 168,108 23,801 1,267,705 Additions from acquisitions 13,072 — — 13,072 Adjustments to prior year acquisitions (5,821 ) (3 ) — (5,824 ) Effect of foreign currency translation 27,596 — — 27,596 Balance at September 30, 2017 $ 1,110,643 $ 168,105 $ 23,801 $ 1,302,549 The Company also has intangible assets, which consist of the following at September 30, 2017 and December 31, 2016 (in thousands): September 30, 2017 Weighted average amortization period Cost Accumulated amortization Net carrying amount Definite-lived intangibles: Customer relationships 14 years $ 400,105 $ (230,730 ) $ 169,375 Trade names 7 years 10,157 (4,207 ) 5,950 Non-compete agreements N/A 50 (50 ) — 410,312 (234,987 ) 175,325 Indefinite-lived intangibles: Trade names N/A 181,144 — 181,144 $ 591,456 $ (234,987 ) $ 356,469 December 31, 2016 Weighted average amortization period Cost Accumulated amortization Net carrying amount Definite-lived intangibles: Customer relationships 15 years $ 392,820 $ (205,342 ) $ 187,478 Trade names 7 years 8,283 (2,961 ) 5,322 Non-compete agreements N/A 49 (49 ) — 401,152 (208,352 ) 192,800 Indefinite-lived intangibles: Trade names N/A 181,766 — 181,766 $ 582,918 $ (208,352 ) $ 374,566 The Company estimates that it will record amortization expense related to intangible assets existing as of September 30, 2017 as follows over the next five years (in thousands): Estimated amortization expense Remainder of 2017 $ 7,955 2018 $ 29,791 2019 $ 27,497 2020 $ 26,620 2021 $ 25,113 |
Credit Arrangements and Debt Ob
Credit Arrangements and Debt Obligations | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Credit Arrangements and Debt Obligations | CREDIT ARRANGEMENTS AND DEBT OBLIGATIONS The Company’s $1.3 billion senior secured credit facilities consist of $1.1 billion in a secured term loan facility and a $225 million revolving credit facility. The term loans mature on November 7, 2023 and require quarterly principal payments of $2.7 million , with the remaining principal balance due on November 7, 2023 . Outstanding term loan borrowings were as follows at September 30, 2017 and December 31, 2016 (in thousands): September 30, December 31, Term loans $ 1,069,625 $ 1,075,000 Deferred financing costs and original issue discount (10,232 ) (10,241 ) Total debt 1,059,393 1,064,759 Less current maturities 10,750 10,750 Long-term debt $ 1,048,643 $ 1,054,009 The revolving credit facility matures on July 31, 2022 . Borrowings outstanding on the revolving credit facility were $65.5 million at September 30, 2017 and $76.0 million at December 31, 2016 . All borrowings under the credit agreement are subject to variable interest. Borrowings under the term loan facility bear interest at a rate per annum of 1.25% over the base rate, or 2.25% over the Eurocurrency rate (each as defined in the credit agreement), which is the one , two , three or six month LIBOR rate or, with applicable lender approval, the twelve month or less than one month LIBOR rate. With respect to the term loan facility, the base rate is subject to an interest rate floor of 1.75% and the Eurocurrency rate is subject to an interest rate floor of 0.75% . Borrowings under the revolving credit facility bear interest at a rate per annum ranging from 0.75% to 1.25% over the base rate, or 1.75% to 2.25% over the Eurocurrency rate. Prior to an amendment to the credit agreement on May 8, 2017 , borrowings under the term loan facility bore interest at a rate per annum ranging from 1.5% to 1.75% over the base rate, or 2.5% to 2.75% over the Eurocurrency rate. With respect to the term loan facility, the base rate was subject to an interest rate floor of 1.75% and the Eurocurrency rate was subject to an interest rate floor of 0.75% . Borrowings under the revolving credit facility bore interest at a rate per annum ranging from 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 3.5% at September 30, 2017 and December 31, 2016 , and the weighted average interest rate was 3.5% and 4.0% for the nine months ended September 30, 2017 and 2016 , respectively. The effective interest rate for the revolving credit facility was 3.5% and 5.5% at September 30, 2017 and December 31, 2016 , respectively. The weighted average interest rate for the revolving credit facility was 4.2% and 4.4% for the nine months ended September 30, 2017 and 2016 , respectively. Certain financing fees and original issue discount costs are capitalized and are being amortized over the terms of the related debt instruments and amortization expense is included in interest expense. Amortization expense of deferred financing costs were $0.3 million and $0.6 million for the three months ended September 30, 2017 and 2016 , respectively, and were $1.0 million and $1.8 million for the nine months ended September 30, 2017 and 2016 , respectively. Amortization expense of original issuance discount costs were $0.1 million and $0.4 million for the three months ended September 30, 2017 and 2016 , respectively, and were $0.3 million and $1.1 million for the nine months ended September 30, 2017 and 2016 , respectively. On January 26, 2016 , the Company amended its then 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. On November 7, 2016 , the Company modified its then existing senior credit facilities and refinanced all of its outstanding term loans into a new seven year term loan facility, which resulted in the issuance of $1.1 billion in new term loans, a portion of which were used to repay $922.5 million in outstanding term loans under the previous term loan facility, and $150.0 million of which was used to fund the acquisition of a business. The terms, interest rate and availability of the revolving credit facility were not modified in the November 2016 debt refinancing. On May 8, 2017 , the Company amended its existing senior credit facilities to, among other changes, reduce the applicable interest rates of the term loan facility and the revolving credit facility. The Company also extended the maturity date on the revolving credit facility from July 31, 2019 to July 31, 2022 . The amended term loan facility continues to have a maturity date of November 7, 2023 . On October 16, 2017 , the Company entered into variable-to-fixed interest rate swap agreements to mitigate the exposure to variable interest arrangements on $500 million notional amount of the outstanding term loan borrowings. These swap agreements are scheduled to mature on October 31, 2021 . The Company is required to make monthly payments on the notional amount at a fixed average interest rate of approximately 1.90% . In exchange, the Company receives interest on the notional amount at a variable rate based on the one-month LIBOR rate, subject to a 0.75% floor. The future principal payments under the term loans at September 30, 2017 are as follows (in thousands): Remainder of 2017 $ 2,688 2018 10,750 2019 10,750 2020 10,750 2021 10,750 Thereafter 1,023,937 $ 1,069,625 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
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 stock-based payment awards that participate equally 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 . 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): Three months ended Nine months ended 2017 2016 2017 2016 Basic earnings per share: Net income $ 31,105 $ 22,510 $ 105,519 $ 77,640 Allocation of net income to common stockholders: Common stock $ 30,905 $ 22,306 $ 104,884 $ 76,954 Unvested participating shares 200 204 635 686 $ 31,105 $ 22,510 $ 105,519 $ 77,640 Weighted average number of common shares: Common stock 58,811,488 58,928,264 59,039,931 59,326,525 Unvested participating shares 380,950 538,795 361,055 528,887 Earnings per share: Common stock $ 0.53 $ 0.38 $ 1.78 $ 1.30 Earnings per Share - Diluted The Company calculates diluted earnings per share for common stock using the more dilutive of the treasury stock method or the two-class method. The following table sets forth the computation of diluted earnings per share using the two-class method (in thousands, except share and per share amounts): Three months ended Nine months ended 2017 2016 2017 2016 Diluted earnings per share: Earnings allocated to common stock $ 30,905 $ 22,306 $ 104,884 $ 76,954 Plus earnings allocated to unvested participating shares 200 204 635 686 Less adjusted earnings allocated to unvested participating shares (196 ) (199 ) (620 ) (670 ) Earnings allocated to common stock $ 30,909 $ 22,311 $ 104,899 $ 76,970 Weighted average number of common shares: Common stock 58,811,488 58,928,264 59,039,931 59,326,525 Effect of dilutive securities 1,276,590 1,347,638 1,417,073 1,410,660 60,088,078 60,275,902 60,457,004 60,737,185 Earnings per share: Common stock $ 0.51 $ 0.37 $ 1.74 $ 1.27 Options outstanding to purchase 0.6 million and 0.7 million shares of common stock were excluded from diluted earnings per share for the three and nine months ended September 30, 2017 , respectively, and 0.5 million shares were excluded from both the three and nine months ended September 30, 2016 , since their effect was anti-dilutive. These options may become dilutive in the future. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company ’ s effective income tax rates were 8.9% and 34.2% for the three months ended September 30, 2017 and 2016 , respectively, and 12.7% and 34.4% for the nine months ended September 30, 2017 and 2016 , respectively. The effective income tax rate is based upon estimated income before income taxes for the year, by jurisdiction, and estimated permanent tax adjustments. The effective income tax rate may fluctuate from quarter to quarter for various reasons, including discrete items such as settlement of foreign, Federal and State tax issues and, beginning January 1, 2017, for the effects of including the excess tax benefits associated with the exercise of stock options and vesting of restricted stock as a reduction of tax expense, in accordance with ASU 2016-09: Compensation-Stock Compensation (Topic 718), which was adopted prospectively as of January 1, 2017 (see Note 1). During the three and nine months ended September 30, 2017 , the excess tax benefit decreased tax expense by $3.4 million and $21.9 million , respectively. Also in the quarter ended September 30, 2017 , a tax benefit of approximately $7.0 million was recorded from the loss on investment of a subsidiary related to the disposition of our remaining assets in Ireland. The effective income tax rate approximated 36% in the three and nine months ended September 30, 2017 , prior to the inclusion of both the excess tax benefit from stock compensation related to the new accounting guidance and the benefit from the loss on investment. The Company’s unrecognized tax benefits were $1.7 million and $1.1 million at September 30, 2017 and December 31, 2016 , respectively. There were no interest and penalties related to unrecognized tax benefits at September 30, 2017 and December 31, 2016 . The Company expects the unrecognized tax benefits to change over the next twelve months if certain tax matters settle with the applicable taxing jurisdiction during this time frame, or, if the applicable statutes of limitations lapse. The impact of the amount of such changes to previously recorded uncertain tax positions could range from zero to $1.7 million , exclusive of interest and penalties. The Company and its domestic subsidiaries are subject to audit for 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 have a statute of limitations of three years ; therefore, tax filings for 2014 through 2016 are subject to audit. 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. As of September 30, 2017 , there was one audit in process and the tax years from 2013 to 2016 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 . |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
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 the revolving credit facility, 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 the Company’s long-term debt as of September 30, 2017 and December 31, 2016 were as follows (in thousands): September 30, 2017 December 31, 2016 Financial liabilities Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Term loans $ 1,069,625 $ 1,079,000 $ 1,075,000 $ 1,084,400 The estimated fair value of the Company’s long-term debt is based on current bid prices for our term loans. As such, our long-term debt is classified as Level 1, as defined under U.S. GAAP. 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 September 30, 2017 . |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION Bright Horizons' workplace services are 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 consist of college preparation and admissions counseling, tuition reimbursement program management, and related consulting services, which have similar operating characteristics and meet the criteria for aggregation. 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) Three months ended September 30, 2017 Revenue $ 358,094 $ 60,085 $ 15,137 $ 433,316 Amortization of intangible assets 7,625 385 181 8,191 Income from operations (1) 24,742 15,886 4,335 44,963 Three months ended September 30, 2016 Revenue $ 318,821 $ 53,229 $ 11,879 $ 383,929 Amortization of intangible assets 6,586 411 144 7,141 Income from operations (2) 28,107 14,183 2,425 44,715 (1) For the three months ended September 30, 2017 , income from operations includes $3.7 million of expenses related to the disposition of our remaining assets in Ireland, which have been allocated to the full service center-based care segment. (2) For the three months ended September 30, 2016 , income from operations includes $0.2 million of expenses related to completed acquisitions, which have been allocated to the full service center-based care segment. Full service Back-up Other educational Total (In thousands) Nine months ended September 30, 2017 Revenue $ 1,094,911 $ 164,171 $ 41,944 $ 1,301,026 Amortization of intangible assets 22,505 1,154 582 24,241 Income from operations (1) 99,921 43,794 9,458 153,173 Nine months ended September 30, 2016 Revenue $ 991,133 $ 146,009 $ 34,162 $ 1,171,304 Amortization of intangible assets 20,133 773 432 21,338 Income from operations (2) 101,584 41,741 6,565 149,890 (1) For the nine months ended September 30, 2017 , income from operations includes $5.6 million of expenses related to the disposition of our remaining assets in Ireland, an amendment to the credit agreement, and a secondary offering, which have been allocated to the full service center-based care segment. (2) For the nine months ended September 30, 2016 , income from operations includes $0.8 million of expenses related to an amendment to the credit agreement, completed acquisitions and a secondary offering, which have been allocated to the full service center-based care segment. |
Organization and Basis of Pre15
Organization and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation —The accompanying unaudited condensed consolidated balance sheet as of September 30, 2017 and the condensed consolidated statements of income, comprehensive income and cash flows for the interim periods ended September 30, 2017 and 2016 have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP” or “GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required in accordance with U.S. GAAP for complete financial statements and should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . In the opinion of the Company’s management, the Company’s unaudited condensed consolidated balance sheet as of September 30, 2017 and the condensed consolidated statements of income, comprehensive income and cash flows for the interim periods ended September 30, 2017 and 2016 , reflect all adjustments (consisting only of normal and recurring adjustments) necessary to present fairly the results of the interim periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full year. |
New Accounting Pronouncements | Recently Adopted Pronouncement — In March 2016 , the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09 : Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments in this update simplify several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification on the statement of cash flows. The update is effective for annual reporting periods beginning after December 15, 2016 , including interim periods within those annual reporting periods with early adoption permitted. The Company adopted the standard prospectively on January 1, 2017 , and as such, prior periods have not been adjusted. The adoption of this guidance impacted the Company’s income tax expense, effective tax rate, and weighted average shares outstanding. Upon adoption, the Company now recognizes all excess tax benefits and tax deficiencies as income tax benefits or expenses on the income statement, which were previously recorded to additional paid-in capital on the balance sheet. As a result, the Company decreased tax expense and increased net income by $3.4 million and $21.9 million in the three and nine months ended September 30, 2017 , respectively, in relation to the excess tax benefit associated with the exercise of stock options and vesting of restricted stock. Additionally, weighted average diluted common shares increased in the three and nine months ended September 30, 2017 by approximately 0.4 million shares under the new methodology and tax benefits from stock option exercises were included with cash flows from operating activities as a component of net income rather than as cash flows from financing activities under previous guidance. New Accounting Pronouncements — In February 2016 , the FASB issued 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. This guidance is effective for interim and annual reporting periods beginning after December 15, 2018 , and is to be applied using a modified retrospective approach. Early adoption is permitted. The Company is currently in the process of evaluating the impact of adoption of this ASU on the Company's consolidated financial statements. Based on its preliminary assessment, the Company anticipates that the adoption of this standard will have a material impact on the Company's consolidated financial statements, as all long-term leases will be capitalized on the consolidated balance sheet. In May 2014 , the FASB issued ASU 2014-09 , Revenue from Contracts with Customers (Topic 606) , which provides a single comprehensive model for revenue recognition. The FASB has subsequently issued various ASUs which amend or clarify specific areas of the guidance. 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. This new guidance is effective for the Company beginning January 1, 2018 and can be adopted using either a full retrospective or modified approach. The Company plans to adopt the standard using the modified approach. The Company is in the process of completing the evaluation of the impact of adoption of this ASU on the Company’s consolidated financial statements |
Fair Value of Financial Instr16
Fair Value of Financial Instruments Fair Value Measurement (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Measurement [Domain] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value Measurement, Policy [Policy Text Block] | 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 the revolving credit facility, and long-term debt. The fair value of the Company’s financial instruments, other than long-term debt, approximates their carrying value. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of purchase price allocation | The purchase price for this acquisition has been allocated based on preliminary 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 December 31, 2016 Measurement period adjustments At acquisition date Cash $ 5,210 $ 75 $ 5,285 Prepaid expenses and other assets 5,700 (237 ) 5,463 Fixed assets 96,868 (720 ) 96,148 Intangible assets 10,540 1,860 12,400 Goodwill 122,714 (6,028 ) 116,686 Total assets acquired 241,032 (5,050 ) 235,982 Accounts payable and accrued expenses (18,696 ) 1,719 (16,977 ) Deferred revenue and parent deposits (5,394 ) 342 (5,052 ) Deferred tax liabilities (7,793 ) 2,993 (4,800 ) Other long-term liabilities (3,048 ) (4 ) (3,052 ) Total liabilities assumed (34,931 ) 5,050 (29,881 ) Purchase price $ 206,101 $ — $ 206,101 |
Pro forma information | The following table presents consolidated pro forma information as if the acquisition of Asquith had occurred on January 1, 2015 (in thousands): Pro forma (Unaudited) Nine Months Ended Revenue $ 1,241,675 Net income $ 77,002 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the year ended December 31, 2016 and the nine months ended September 30, 2017 are as follows (in thousands): Full service center-based care Back-up dependent care Other educational advisory services Total Balance at January 1, 2016 $ 965,114 $ 158,894 $ 23,801 $ 1,147,809 Additions from acquisitions 139,539 9,214 — 148,753 Adjustments to prior year acquisitions 73 — — 73 Effect of foreign currency translation (28,930 ) — — (28,930 ) Balance at December 31, 2016 1,075,796 168,108 23,801 1,267,705 Additions from acquisitions 13,072 — — 13,072 Adjustments to prior year acquisitions (5,821 ) (3 ) — (5,824 ) Effect of foreign currency translation 27,596 — — 27,596 Balance at September 30, 2017 $ 1,110,643 $ 168,105 $ 23,801 $ 1,302,549 |
Schedule of Finite-Lived Intangible Assets | The Company also has intangible assets, which consist of the following at September 30, 2017 and December 31, 2016 (in thousands): September 30, 2017 Weighted average amortization period Cost Accumulated amortization Net carrying amount Definite-lived intangibles: Customer relationships 14 years $ 400,105 $ (230,730 ) $ 169,375 Trade names 7 years 10,157 (4,207 ) 5,950 Non-compete agreements N/A 50 (50 ) — 410,312 (234,987 ) 175,325 Indefinite-lived intangibles: Trade names N/A 181,144 — 181,144 $ 591,456 $ (234,987 ) $ 356,469 December 31, 2016 Weighted average amortization period Cost Accumulated amortization Net carrying amount Definite-lived intangibles: Customer relationships 15 years $ 392,820 $ (205,342 ) $ 187,478 Trade names 7 years 8,283 (2,961 ) 5,322 Non-compete agreements N/A 49 (49 ) — 401,152 (208,352 ) 192,800 Indefinite-lived intangibles: Trade names N/A 181,766 — 181,766 $ 582,918 $ (208,352 ) $ 374,566 |
Schedule of Indefinite Lived Intangible Assets | The Company also has intangible assets, which consist of the following at September 30, 2017 and December 31, 2016 (in thousands): September 30, 2017 Weighted average amortization period Cost Accumulated amortization Net carrying amount Definite-lived intangibles: Customer relationships 14 years $ 400,105 $ (230,730 ) $ 169,375 Trade names 7 years 10,157 (4,207 ) 5,950 Non-compete agreements N/A 50 (50 ) — 410,312 (234,987 ) 175,325 Indefinite-lived intangibles: Trade names N/A 181,144 — 181,144 $ 591,456 $ (234,987 ) $ 356,469 December 31, 2016 Weighted average amortization period Cost Accumulated amortization Net carrying amount Definite-lived intangibles: Customer relationships 15 years $ 392,820 $ (205,342 ) $ 187,478 Trade names 7 years 8,283 (2,961 ) 5,322 Non-compete agreements N/A 49 (49 ) — 401,152 (208,352 ) 192,800 Indefinite-lived intangibles: Trade names N/A 181,766 — 181,766 $ 582,918 $ (208,352 ) $ 374,566 |
Estimated Amortization Expense Related to Intangible Assets | The Company estimates that it will record amortization expense related to intangible assets existing as of September 30, 2017 as follows over the next five years (in thousands): Estimated amortization expense Remainder of 2017 $ 7,955 2018 $ 29,791 2019 $ 27,497 2020 $ 26,620 2021 $ 25,113 |
Credit Arrangements and Debt 19
Credit Arrangements and Debt Obligations (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Outstanding Borrowings | Outstanding term loan borrowings were as follows at September 30, 2017 and December 31, 2016 (in thousands): September 30, December 31, Term loans $ 1,069,625 $ 1,075,000 Deferred financing costs and original issue discount (10,232 ) (10,241 ) Total debt 1,059,393 1,064,759 Less current maturities 10,750 10,750 Long-term debt $ 1,048,643 $ 1,054,009 |
Future Principal Payments Under New Term Loan | The future principal payments under the term loans at September 30, 2017 are as follows (in thousands): Remainder of 2017 $ 2,688 2018 10,750 2019 10,750 2020 10,750 2021 10,750 Thereafter 1,023,937 $ 1,069,625 |
Fair Value Measurement [Domain] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value Measurement, Policy [Policy Text Block] | 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 the revolving credit facility, and long-term debt. The fair value of the Company’s financial instruments, other than long-term debt, approximates their carrying value. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Common Share | 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): Three months ended Nine months ended 2017 2016 2017 2016 Diluted earnings per share: Earnings allocated to common stock $ 30,905 $ 22,306 $ 104,884 $ 76,954 Plus earnings allocated to unvested participating shares 200 204 635 686 Less adjusted earnings allocated to unvested participating shares (196 ) (199 ) (620 ) (670 ) Earnings allocated to common stock $ 30,909 $ 22,311 $ 104,899 $ 76,970 Weighted average number of common shares: Common stock 58,811,488 58,928,264 59,039,931 59,326,525 Effect of dilutive securities 1,276,590 1,347,638 1,417,073 1,410,660 60,088,078 60,275,902 60,457,004 60,737,185 Earnings per share: Common stock $ 0.51 $ 0.37 $ 1.74 $ 1.27 The following table sets forth the computation of earnings per share using the two-class method (in thousands, except share and per share amounts): Three months ended Nine months ended 2017 2016 2017 2016 Basic earnings per share: Net income $ 31,105 $ 22,510 $ 105,519 $ 77,640 Allocation of net income to common stockholders: Common stock $ 30,905 $ 22,306 $ 104,884 $ 76,954 Unvested participating shares 200 204 635 686 $ 31,105 $ 22,510 $ 105,519 $ 77,640 Weighted average number of common shares: Common stock 58,811,488 58,928,264 59,039,931 59,326,525 Unvested participating shares 380,950 538,795 361,055 528,887 Earnings per share: Common stock $ 0.53 $ 0.38 $ 1.78 $ 1.30 |
Fair Value of Financial Instr21
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair value of long-term debt | The carrying value and estimated fair value of the Company’s long-term debt as of September 30, 2017 and December 31, 2016 were as follows (in thousands): September 30, 2017 December 31, 2016 Financial liabilities Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Term loans $ 1,069,625 $ 1,079,000 $ 1,075,000 $ 1,084,400 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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) Three months ended September 30, 2017 Revenue $ 358,094 $ 60,085 $ 15,137 $ 433,316 Amortization of intangible assets 7,625 385 181 8,191 Income from operations (1) 24,742 15,886 4,335 44,963 Three months ended September 30, 2016 Revenue $ 318,821 $ 53,229 $ 11,879 $ 383,929 Amortization of intangible assets 6,586 411 144 7,141 Income from operations (2) 28,107 14,183 2,425 44,715 (1) For the three months ended September 30, 2017 , income from operations includes $3.7 million of expenses related to the disposition of our remaining assets in Ireland, which have been allocated to the full service center-based care segment. (2) For the three months ended September 30, 2016 , income from operations includes $0.2 million of expenses related to completed acquisitions, which have been allocated to the full service center-based care segment. |
Organization and Significant Ac
Organization and Significant Accounting Policies - Additional Information (Detail) - USD ($) | Jan. 30, 2013 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Aug. 05, 2016 | Sep. 30, 2017 | Dec. 31, 2016 | Aug. 02, 2016 | Feb. 28, 2015 |
Accounting Policies [Line Items] | ||||||||||
Number of shares issued (shares) | 11,600,000 | |||||||||
Preferred stock, authorized (shares) | 25,000,000 | 25,000,000 | 25,000,000 | 25,000,000 | 25,000,000 | |||||
Selling, general and administrative expenses | $ 46,369,000 | $ 39,616,000 | $ 141,384,000 | $ 120,403,000 | ||||||
Stock Repurchase Program, Authorized Amount | $ 300,000,000 | $ 250,000,000 | ||||||||
Stock repurchase program, remaining authorized repurchase amount | $ 207,900,000 | $ 207,900,000 | $ 26,300,000 | $ 207,900,000 | ||||||
Secondary Offering [Member] | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Number of shares issued (shares) | 4,150,000 | 43,600,000 | ||||||||
Proceeds from issuance of secondary offering | $ 0 | |||||||||
Selling, general and administrative expenses | $ 200,000 | |||||||||
Affiliated Entity [Member] | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Percentage of common stock held by investment funds affiliated with sponsor | 14.20% | 14.20% | 14.20% | |||||||
Affiliated Entity [Member] | Secondary Offering [Member] | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Number of shares repurchased (shares) | 700,000 | |||||||||
Accounting Standards Update 2016-09 [Member] | ||||||||||
Accounting Policies [Line Items] | ||||||||||
Excess tax benefit amount | $ 3,400,000 | $ 21,900,000 | ||||||||
Increase in weighted average diluted shares outstanding (shares) | 400,000 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ in Thousands | Nov. 10, 2016USD ($)Centerproperty | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)CenterBusiness | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($)CenterBusiness | Dec. 31, 2015USD ($) | Jul. 15, 2015USD ($) |
Business Acquisition [Line Items] | ||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 17,526 | $ 22,307 | ||||||
Goodwill | $ 1,302,549 | 1,302,549 | $ 1,267,705 | $ 1,147,809 | ||||
Income (Loss) from Subsidiaries, Tax Expense (Benefit) | (7,000) | |||||||
Revenues | 433,316 | $ 383,929 | 1,301,026 | $ 1,171,304 | ||||
Conchord Limited Asquith [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of centers acquired | Center | 90 | |||||||
Purchase price | $ 206,100 | 206,101 | ||||||
Goodwill | 122,714 | 116,686 | 116,686 | |||||
Intangible assets | 10,540 | 12,400 | 12,400 | |||||
Fixed assets acquired | 96,868 | 96,148 | 96,148 | |||||
Deferred tax liabilities | (7,793) | (4,800) | (4,800) | |||||
Measurement period | 1 year | |||||||
Acquisition related costs | $ 1,400 | |||||||
Number of properties acquired | property | 39 | |||||||
Revenues | 69,300 | |||||||
Cash | $ 5,210 | 5,285 | 5,285 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 29,881 | $ 29,881 | ||||||
Pro forma revenue | 1,241,675 | |||||||
Pro forma net income | $ 77,002 | |||||||
Series of Individually Immaterial Business Acquisitions [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of businesses acquired | Business | 6 | 4 | ||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 17,500 | |||||||
Purchase price | $ 18,100 | |||||||
Cash acquired from acquisition | 100 | |||||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Asset | 200 | |||||||
Goodwill | 13,100 | 13,100 | 17,000 | |||||
Fixed assets acquired | 4,600 | 4,600 | ||||||
Deferred tax liabilities | (600) | (600) | ||||||
Working capital acquired (deficit) | (1,400) | $ (1,400) | 1,800 | |||||
Measurement period | 1 year | |||||||
Contingent consideration | 1,100 | |||||||
Cash | $ 300 | |||||||
NETHERLANDS | Series of Individually Immaterial Business Acquisitions [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of centers acquired | Center | 10 | |||||||
UNITED STATES | Series of Individually Immaterial Business Acquisitions [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of centers acquired | Center | 3 | 4 | ||||||
Purchase price | $ 10,400 | |||||||
Goodwill | 9,200 | |||||||
Working capital acquired (deficit) | $ 400 | |||||||
Measurement period | 1 year | |||||||
Cash | $ 300 | |||||||
Accrued contingent consideration | $ 3,800 | |||||||
UNITED KINGDOM | Series of Individually Immaterial Business Acquisitions [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of centers acquired | Center | 8 | |||||||
IRELAND | ||||||||
Business Acquisition [Line Items] | ||||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 3,700 | |||||||
Customer Relationships [Member] | Conchord Limited Asquith [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | $ 9,900 | |||||||
Amortization period of intangible assets | 5 years | |||||||
Customer Relationships [Member] | Series of Individually Immaterial Business Acquisitions [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | $ 2,000 | $ 2,000 | $ 3,400 | |||||
Amortization period of intangible assets | 5 years | |||||||
Customer Relationships [Member] | Minimum [Member] | Series of Individually Immaterial Business Acquisitions [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Amortization period of intangible assets | 3 years | |||||||
Customer Relationships [Member] | Maximum [Member] | Series of Individually Immaterial Business Acquisitions [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Amortization period of intangible assets | 4 years | |||||||
Technology [Member] | UNITED STATES | Series of Individually Immaterial Business Acquisitions [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | $ 2,600 | |||||||
Trademarks [Member] | Conchord Limited Asquith [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Amortization period of intangible assets | 6 years | |||||||
Fixed assets acquired | $ 2,500 | |||||||
Provider Network [Member] | UNITED STATES | Series of Individually Immaterial Business Acquisitions [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | $ 4,900 | |||||||
Amortization period of intangible assets | 5 years |
Acquisitions - Purchase Price A
Acquisitions - Purchase Price Allocation (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Nov. 10, 2016 | Sep. 30, 2017 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,267,705 | $ 1,302,549 | $ 1,147,809 | |
Conchord Limited Asquith [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 5,210 | 5,285 | ||
Prepaid expenses and other assets | 5,700 | 5,463 | ||
Fixed assets | 96,868 | 96,148 | ||
Intangible assets | 10,540 | 12,400 | ||
Goodwill | 122,714 | 116,686 | ||
Total assets acquired | 235,982 | |||
Accounts payable and accrued expenses | (18,696) | (16,977) | ||
Deferred revenue and parent deposits | (5,394) | (5,052) | ||
Deferred tax liabilities | (7,793) | (4,800) | ||
Other long-term liabilities | (3,048) | (3,052) | ||
Total liabilities assumed | (29,881) | |||
Purchase price | $ 206,100 | 206,101 | ||
As reported at acquisition date [Member] | Conchord Limited Asquith [Member] | ||||
Business Acquisition [Line Items] | ||||
Total assets acquired | 241,032 | |||
Total liabilities assumed | (34,931) | |||
Purchase price | $ 206,101 | |||
Measurement period adjustments [Member] | Conchord Limited Asquith [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash | 75 | |||
Prepaid expenses and other assets | (237) | |||
Fixed assets | (720) | |||
Intangible assets | 1,860 | |||
Goodwill | (6,028) | |||
Total assets acquired | (5,050) | |||
Accounts payable and accrued expenses | 1,719 | |||
Deferred revenue and parent deposits | 342 | |||
Deferred tax liabilities | 2,993 | |||
Other long-term liabilities | (4) | |||
Total liabilities assumed | 5,050 | |||
Purchase price | $ 0 |
Goodwill and Intangible Asset26
Goodwill and Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 1,267,705 | $ 1,147,809 |
Additions from acquisitions | 13,072 | 148,753 |
Adjustments to prior year acquisitions | (5,824) | 73 |
Effect of foreign currency translation | 27,596 | (28,930) |
Ending balance | 1,302,549 | 1,267,705 |
Full Service Center-based Care [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 1,075,796 | 965,114 |
Additions from acquisitions | 13,072 | 139,539 |
Adjustments to prior year acquisitions | (5,821) | 73 |
Effect of foreign currency translation | 27,596 | (28,930) |
Ending balance | 1,110,643 | 1,075,796 |
Back-up Dependent Care [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 168,108 | 158,894 |
Additions from acquisitions | 0 | 9,214 |
Adjustments to prior year acquisitions | (3) | 0 |
Effect of foreign currency translation | 0 | 0 |
Ending balance | 168,105 | 168,108 |
Other Educational Advisory Services [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 23,801 | 23,801 |
Additions from acquisitions | 0 | 0 |
Adjustments to prior year acquisitions | 0 | 0 |
Effect of foreign currency translation | 0 | 0 |
Ending balance | 23,801 | $ 23,801 |
Conchord Limited Asquith [Member] | ||
Goodwill [Roll Forward] | ||
Ending balance | $ 116,686 |
Goodwill and Intangible Asset27
Goodwill and Intangible Assets - Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets, Gross [Abstract] | ||
Cost | $ 410,312 | $ 401,152 |
Accumulated amortization | (234,987) | (208,352) |
Net carrying amount | 175,325 | 192,800 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Cost | 591,456 | 582,918 |
Net carrying amount | $ 356,469 | $ 374,566 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets, Gross [Abstract] | ||
Weighted average amortization period | 14 years | 15 years |
Cost | $ 400,105 | $ 392,820 |
Accumulated amortization | (230,730) | (205,342) |
Net carrying amount | $ 169,375 | $ 187,478 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets, Gross [Abstract] | ||
Weighted average amortization period | 7 years | 7 years |
Cost | $ 10,157 | $ 8,283 |
Accumulated amortization | (4,207) | (2,961) |
Net carrying amount | 5,950 | 5,322 |
Non-Compete Agreements [Member] | ||
Finite-Lived Intangible Assets, Gross [Abstract] | ||
Cost | 50 | 49 |
Accumulated amortization | (50) | (49) |
Net carrying amount | 0 | 0 |
Trade Names [Member] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Cost | 181,144 | 181,766 |
Net carrying amount | $ 181,144 | $ 181,766 |
Goodwill and Intangible Asset28
Goodwill and Intangible Assets - Estimated Amortization Expense Related to Intangible Assets (Detail) $ in Thousands | Sep. 30, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2017 | $ 7,955 |
2,018 | 29,791 |
2,019 | 27,497 |
2,020 | 26,620 |
2,021 | $ 25,113 |
Credit Arrangements and Debt 29
Credit Arrangements and Debt Obligations - Outstanding Borrowing (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule Of Borrowings [Line Items] | ||
Deferred financing costs and original issue discount | $ (10,232) | $ (10,241) |
Total debt | 1,059,393 | 1,064,759 |
Less current maturities | 10,750 | 10,750 |
Long-term debt—net | 1,048,643 | 1,054,009 |
Term Loan [Member] | ||
Schedule Of Borrowings [Line Items] | ||
Term loans | $ 1,069,625 | $ 1,075,000 |
Credit Arrangements and Debt 30
Credit Arrangements and Debt Obligations - Additional Information (Detail) - USD ($) | Oct. 16, 2017 | May 08, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | May 07, 2017 | Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||||||||
Repayments of debt | $ 922,500,000 | ||||||||
Proceeds of debt used for business combination | 150,000,000 | ||||||||
Borrowings on revolving credit facility | $ 65,500,000 | $ 65,500,000 | 65,500,000 | $ 76,000,000 | |||||
Amortization of deferred financing costs | 300,000 | $ 600,000 | 1,000,000 | $ 1,800,000 | |||||
Amortization expense of original issuance discount costs | 100,000 | $ 400,000 | 300,000 | $ 1,100,000 | |||||
Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, principal amount | $ 1,300,000,000 | $ 1,300,000,000 | $ 1,300,000,000 | ||||||
Secured Debt [Member] | Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Effective interest rate for the term loans | 3.50% | 3.50% | 3.50% | 5.50% | |||||
Secured Debt [Member] | Senior Credit Facilities [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, principal amount | $ 1,075,000,000 | $ 1,075,000,000 | $ 1,075,000,000 | ||||||
Maturity date | Nov. 7, 2023 | ||||||||
Quarterly principal payments | $ 2,700,000 | ||||||||
Debt instrument, term | 7 years | ||||||||
Effective interest rate for the term loans | 3.50% | 3.50% | 3.50% | 3.50% | |||||
Weighted average interest rate | 3.50% | 4.00% | 3.50% | 3.50% | 4.00% | ||||
Secured Debt [Member] | Amended Senior Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maturity date | Nov. 7, 2023 | ||||||||
Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Weighted average interest rate | 4.20% | 4.40% | 4.20% | 4.20% | 4.40% | ||||
Revolving Credit Facility [Member] | Senior Credit Facilities [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, principal amount | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | ||||||
Base Rate [Member] | Term Loan Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument floor rate | 1.75% | ||||||||
Base Rate [Member] | Amended Senior Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 1.25% | ||||||||
Base Rate [Member] | Minimum [Member] | Term Loan Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 1.50% | ||||||||
Base Rate [Member] | Minimum [Member] | Revolving Credit Facility [Member] | Senior Credit Facilities [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 1.25% | 0.75% | |||||||
Base Rate [Member] | Maximum [Member] | Term Loan Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 1.75% | ||||||||
Base Rate [Member] | Maximum [Member] | Revolving Credit Facility [Member] | Senior Credit Facilities [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 1.75% | 1.25% | |||||||
Eurodollar [Member] | Term Loan Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument floor rate | 0.75% | ||||||||
Eurodollar [Member] | Amended Senior Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 2.25% | ||||||||
Eurodollar [Member] | Minimum [Member] | Revolving Credit Facility [Member] | Senior Credit Facilities [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 2.25% | 1.75% | |||||||
Eurodollar [Member] | Minimum [Member] | Term Loan Facility [Member] | Senior Credit Facilities [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 2.50% | ||||||||
Eurodollar [Member] | Maximum [Member] | Term Loan Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 2.75% | ||||||||
Eurodollar [Member] | Maximum [Member] | Revolving Credit Facility [Member] | Senior Credit Facilities [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 2.75% | 2.25% | |||||||
Subsequent Event [Member] | Interest Rate Swap [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Subsequent Event, Description | 500 | ||||||||
Subsequent Event [Member] | Base Rate [Member] | Interest Rate Swap [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Subsequent Event, Description | 0.019 | ||||||||
Subsequent Event [Member] | Interest Rate Floor [Member] | Interest Rate Swap [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Subsequent Event, Description | 0.0075 | ||||||||
Amendment January 2016 | Revolving Credit Facility [Member] | Senior Credit Facilities [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, principal amount | $ 225,000,000 | $ 225,000,000 | $ 225,000,000 |
Credit Arrangements and Debt 31
Credit Arrangements and Debt Obligations - Future Principal Payments Under New Term Loan (Detail) - Term Loan Facility [Member] $ in Thousands | Sep. 30, 2017USD ($) |
Long Term Debt Maturities Estimated Repayments Of Principal [Line Items] | |
Remainder of 2017 | $ 2,688 |
2,018 | 10,750 |
2,019 | 10,750 |
2,020 | 10,750 |
2,021 | 10,750 |
Thereafter | 1,023,937 |
Future Payments Due | $ 1,069,625 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Common Stock Class A [Member] | ||||
Earnings Per Share [Line Items] | ||||
Option outstanding to purchase (shares) | 0.6 | 0.5 | 0.7 | 0.5 |
Restricted Stock [Member] | ||||
Earnings Per Share [Line Items] | ||||
Vesting period | 3 years |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Calculation Of Numerator And Denominator In Earnings Per Share [Line Items] | ||||
Allocation of net income (loss) to common stock | $ 31,105 | $ 22,510 | $ 105,519 | $ 77,640 |
Earnings (loss) per share: | ||||
Common stock-basic (usd per share) | $ 0.53 | $ 0.38 | $ 1.78 | $ 1.30 |
Common Stock [Member] | ||||
Calculation Of Numerator And Denominator In Earnings Per Share [Line Items] | ||||
Allocation of net income (loss) to common stock | $ 30,905 | $ 22,306 | $ 104,884 | $ 76,954 |
Weighted average number of common shares: | ||||
Weighted average number (shares) | 58,811,488 | 58,928,264 | 59,039,931 | 59,326,525 |
Unvested Participating Shares [Member] | ||||
Calculation Of Numerator And Denominator In Earnings Per Share [Line Items] | ||||
Allocation of net income (loss) to common stock | $ 200 | $ 204 | $ 635 | $ 686 |
Weighted average number of common shares: | ||||
Weighted average number (shares) | 380,950 | 538,795 | 361,055 | 528,887 |
Earnings Per Share - Computat34
Earnings Per Share - Computation of Diluted Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Diluted earnings per share: | ||||
Allocation of net income (loss) to common stock | $ 31,105 | $ 22,510 | $ 105,519 | $ 77,640 |
Earnings allocated to common stock | $ 30,909 | $ 22,311 | $ 104,899 | $ 76,970 |
Weighted average number of common shares: | ||||
Common stock-diluted (shares) | 60,088,078 | 60,275,902 | 60,457,004 | 60,737,185 |
Earnings (loss) per share: | ||||
Common stock-diluted (usd per share) | $ 0.51 | $ 0.37 | $ 1.74 | $ 1.27 |
Common Stock [Member] | ||||
Diluted earnings per share: | ||||
Allocation of net income (loss) to common stock | $ 30,905 | $ 22,306 | $ 104,884 | $ 76,954 |
Weighted average number of common shares: | ||||
Common stock-basic (shares) | 58,811,488 | 58,928,264 | 59,039,931 | 59,326,525 |
Unvested Participating Shares [Member] | ||||
Diluted earnings per share: | ||||
Allocation of net income (loss) to common stock | $ 200 | $ 204 | $ 635 | $ 686 |
Adjusted earnings | $ (196) | $ (199) | $ (620) | $ (670) |
Weighted average number of common shares: | ||||
Common stock-basic (shares) | 380,950 | 538,795 | 361,055 | 528,887 |
Stock Options [Member] | ||||
Weighted average number of common shares: | ||||
Dilutive effect (shares) | 1,276,590 | 1,347,638 | 1,417,073 | 1,410,660 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($) | Sep. 30, 2016 | Sep. 30, 2017USD ($)tax_audit | Sep. 30, 2016 | Dec. 31, 2016USD ($) | |
Income Tax Disclosure [Line Items] | |||||
Effective income tax rates | 8.90% | 34.20% | 12.70% | 34.40% | |
Loss from subsidiary, tax benefit | $ 7,000,000 | ||||
Effective income tax rate, percent prior to adoption of accounting standards update | 36.00% | 36.00% | |||
Unrecognized income tax benefit | $ 1,700,000 | $ 1,700,000 | $ 1,100,000 | ||
Interest and penalties accrued for income tax | 0 | 0 | $ 0 | ||
Minimum [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Change in uncertain tax positions | 0 | 0 | |||
Maximum [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Change in uncertain tax positions | 1,700,000 | $ 1,700,000 | |||
Federal [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Statute of limitations | 3 years | ||||
State [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Number of income tax audits in process | tax_audit | 1 | ||||
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 | ||||
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 | ||||
Accounting Standards Update 2016-09 [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Excess tax benefit amount | $ 3,400,000 | $ 21,900,000 |
Fair Value Measurements - Debt
Fair Value Measurements - Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Estimate of Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Term loans | $ 1,079,000 | $ 1,084,400 |
Carrying Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Term loans | $ 1,069,625 | $ 1,075,000 |
Fair Value Measures - Additiona
Fair Value Measures - Additional Information (Detail) - Customer Concentration Risk [Member] | 9 Months Ended |
Sep. 30, 2017Customer | |
Revenue [Member] | |
Fair Value Measurements Disclosure [Line Items] | |
Number of Customer Generating more than 10% | 0 |
Concentration risk percentage | 10.00% |
Accounts Receivable [Member] | |
Fair Value Measurements Disclosure [Line Items] | |
Clients accounting for more than benchmark | 0 |
Segment Information - Income fr
Segment Information - Income from Operations by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 433,316 | $ 383,929 | $ 1,301,026 | $ 1,171,304 |
Amortization of intangibles | 8,191 | 7,141 | 24,241 | 21,338 |
Income from operations | 44,963 | 44,715 | 153,173 | 149,890 |
Operating Segments [Member] | Full Service Center-based Care [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 358,094 | 318,821 | 1,094,911 | 991,133 |
Amortization of intangibles | 7,625 | 6,586 | 22,505 | 20,133 |
Income from operations | 24,742 | 28,107 | 99,921 | 101,584 |
Credit facility amendment and acquisition related costs | 3,700 | 200 | 5,600 | 800 |
Operating Segments [Member] | Back-up Dependent Care [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 60,085 | 53,229 | 164,171 | 146,009 |
Amortization of intangibles | 385 | 411 | 1,154 | 773 |
Income from operations | 15,886 | 14,183 | 43,794 | 41,741 |
Operating Segments [Member] | Other Educational Advisory Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 15,137 | 11,879 | 41,944 | 34,162 |
Amortization of intangibles | 181 | 144 | 582 | 432 |
Income from operations | $ 4,335 | $ 2,425 | $ 9,458 | $ 6,565 |