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516000 1282000 1798000 4200000 4200000 97232000 267962000 365194000 1317581 1318970 772422000 19.76 715321 6062653 1500000 1327115 6062653 0.185 0.001 14500000 1327115 0.001 410000000 58750000 342125000 2015000 904607000 8481000 125910000 18969000 927000000 150088000 459896000 6319000 1627000 2135000 50014000 9966000 201893000 800000 -8816000 191060000 8126000 973000000 7412000 52344000 23717000 -253887000 2036000 2600000 43533000 158426000 80963000 17814000 97207000 5270000 6579000 148880000 -395165000 90563000 176240000 124964000 6000 1916108000 933000 4500000 906643000 1307768000 55204000 87800000 12087000 3727000 1430000 850000 475000 2085000 6600000 13674000 61335000 24944000 854101000 2036000 62714000 1341000 136017000 997344000 4124000 206328000 432580000 9659000 1900000 26500000 50882000 21600000 183800000 132000 1916108000 340376000 34109000 116157000 -137381000 213000 24000000 38859000 466286000 248764000 13629000 2189000 8012000 373728000 27827000 22500000 12200000 22100000 11367000 6354000 340376000 18 2 4060000 840474000 92919000 9160000 2336000 386000 800000 1750000 2300000 1000000 1300000 0 109569000 0.63 0.815 230807000 300000 500000 0 20825000 817304000 159215000 0.053 84363000 75000000 0 300000000 197810000 87800000 0.043 0.042 346111000 1000000 5600000 100000 500000 -8816000 -395165000 6062653 6000 150088000 126658 600000 90.00 4581 3100000 774.30 4.93 20924 400000 22.00 1037000 28530000 9641000 1918000 27493000 12806000 737000 1018000 2410000 45000 10095000 679000 207000 430000 11411000 11366000 33000 21000 54000 883000 2264000 3147000 124048000 246479000 370527000 1400000 500000 40704 1327115 405 511.51 122077 27923 511.51 116834 511.51 1327115 854101000 30700000 10700000 32100000 185915 12.00 557464 896523 12.00 533641 12.00 5300000 1900000 5600000 35.1955 25000000 475000000 35.1955 4800000 5000000 31628 144461 3900000 -1400000 100000 2500000 11600000 233300000 35000000 110800000 27 P7Y P5Y 2018-05-28 2018-11-28 0.045 0.035 0.010 0.010 0.020 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21141000 2057000 2300000 P9Y P4Y -1799000 22000 -9994000 65962000 10488 51000 2354000 7100000 100000 -9136000 919581000 800000 404.37 9.99 1315153 246 49.21 2296 208000 64712000 65962000 89000 0.0140 0.820 P3Y8M9D 6006960 1123 4.34 0.000 -12.64 -75957000 P7Y 133570000 835000 17063000 4392000 973701000 -259000 557000 -71887000 207201000 800000 -581000 636000 -68083000 57326000 1614000 -641000 4933000 3973000 12000 3062000 824000 4762000 -614000 -3804000 955000 86836000 342000 54706000 5587000 -5343000 71000 1487000 4759000 1158000 500000 22000 100000 42517000 3000 13303000 2500000 59000 62917000 -1536000 6330000 -23281000 20902000 -5018000 1220000 -5872000 4851000 7937000 1539000 400000 72842000 1158000 -3620000 -1043000 15010000 1517000 1800000 82908000 1502000 1956000 2968000 -1292000 766500000 -94992000 250000 -166000 1262000 -4980000 55451000 27321000 -18500000 800000 3400000 4166000 93000 1436000 27427000 6574000 7120000 28000000 1200000 523000 -418000 57600000 800000 100000 -2063000 2900000 -1599000 236000 92938000 825000 -287000 -5749000 1539000 130056000 843645000 71568000 1274000 14604000 -783000 302000 844595000 58950000 25178000 114502000 28669000 1947000 600000 -3804000 1539000 4759000 72842000 2411 12000 1158000 22000 4804000 1016125000 27600000 -500000 7115000 100000 992247000 28000000 1100000 P10M24D 200000 472.70 17.77 P5Y P8Y10M24D P2Y10M24D P15Y 1317273 0 54.33 528 47000 71568000 72842000 0.0120 0.820 P3Y5M19D 6016733 0 10.40 0.000 -11.32 -68083000 BRIGHT HORIZONS FAMILY SOLUTIONS INC. false 8-K 2012-12-31 0001437578 <div> <p style="margin-top:6px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2">Accounts payable and accrued expenses consist of the following (in thousands):</font></p> <p style="font-size:12px;margin-top:0px;margin-bottom:0px"> &#xA0;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style="BORDER-COLLAPSE:COLLAPSE" align="center"> <tr> <td width="82%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="6" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Accounts payable</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">7,850</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">6,319</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Accrued payroll and employee benefits</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">47,950</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">52,344</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Accrued insurance</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">12,916</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">13,674</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Accrued interest</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">241</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">1,430</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Accrued occupancy costs</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">2,272</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">2,336</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Accrued professional fees</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">1,777</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">2,135</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Other accrued expenses</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">16,027</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">18,969</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="font-size:1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">89,033</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">97,207</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="font-size:1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:3px double #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:3px double #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:3px double #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:3px double #000000">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> <div> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 18px; TEXT-INDENT: 0px; LETTER-SPACING: normal; FONT: medium 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b>5.&#xA0;&#xA0;&#xA0;&#xA0;GOODWILL AND INTANGIBLE ASSETS</b></font></p> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 6px; TEXT-INDENT: 5%; LETTER-SPACING: normal; FONT: medium 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The changes in the carrying amount of goodwill are as follows (in thousands):</font></p> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 0px; TEXT-INDENT: 0px; LETTER-SPACING: normal; FONT: 12px 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <table style="TEXT-TRANSFORM: none; TEXT-INDENT: 0px; LETTER-SPACING: normal; BORDER-COLLAPSE: collapse; FONT-FAMILY: 'Times New Roman'; WORD-SPACING: 0px; -webkit-text-stroke-width: 0px" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="78%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Years&#xA0;ended&#xA0;December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;2011&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;2012&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Beginning balance</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">887,895</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">947,371</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Goodwill additions during the period</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">62,917</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">49,573</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Adjustments to prior year acquisitions</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">250</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(22</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Tax benefit from the exercise of continuation options</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(71</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(2,506</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Effect of foreign currency translation</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(3,620</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,928</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Ending balance</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">947,371</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">997,344</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 12px; TEXT-INDENT: 5%; LETTER-SPACING: normal; FONT: medium 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">Goodwill as of December&#xA0;31, 2012 has been retrospectively adjusted in 2013 to reflect an adjustment made within the measurement period for the Huntyard Limited acquisition, which increased goodwill by $3.9 million, increased deferred income tax liabilities by $2.5 million and decreased deferred income tax assets by $1.4 million. These adjustments included the effect of $0.1 million of currency translation on the goodwill and deferred income tax balances.</font></p> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 12px; TEXT-INDENT: 5%; LETTER-SPACING: normal; FONT: medium 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">Goodwill associated with full service center-based care, back-up dependent care and other educational advisory services amounted to $817.3 million, $159.2 million, and $20.8 million, respectively, at December&#xA0;31, 2012.&#xA0;Substantially all activity associated with goodwill in 2011 and 2012 related to full service center-based care.</font></p> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 0px; TEXT-INDENT: 0px; LETTER-SPACING: normal; FONT: 12px 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 0px; TEXT-INDENT: 5%; LETTER-SPACING: normal; FONT: medium 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The following tables reflect intangible assets that are subject to amortization (in thousands):</font></p> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 0px; TEXT-INDENT: 0px; LETTER-SPACING: normal; FONT: 12px 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <table style="TEXT-TRANSFORM: none; TEXT-INDENT: 0px; LETTER-SPACING: normal; BORDER-COLLAPSE: collapse; FONT-FAMILY: 'Times New Roman'; WORD-SPACING: 0px; -webkit-text-stroke-width: 0px" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="52%"></td> <td valign="bottom" width="4%"></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Weighted average<br /> amortization&#xA0;period</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Cost</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Accumulated<br /> amortization</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Net&#xA0;carrying<br /> amount</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2"><b>December&#xA0;31, 2011:</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Contractual rights and customer relationships</font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" align="center"><font style="FONT-FAMILY: ARIAL" size="2">15.0&#xA0;years</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">365,194</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(97,232</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">267,962</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Trade names</font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" align="center"><font style="FONT-FAMILY: ARIAL" size="2">8.9 years</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,798</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(516</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,282</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Non-compete agreements</font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" align="center"><font style="FONT-FAMILY: ARIAL" size="2">5 years</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">54</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(29</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">25</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" align="center"><font style="FONT-FAMILY: ARIAL" size="2">2.9 years</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4,200</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(4,200</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">371,246</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(101,977</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">269,269</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 0px; TEXT-INDENT: 0px; LETTER-SPACING: normal; FONT: 12px 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <table style="TEXT-TRANSFORM: none; TEXT-INDENT: 0px; LETTER-SPACING: normal; BORDER-COLLAPSE: collapse; FONT-FAMILY: 'Times New Roman'; WORD-SPACING: 0px; -webkit-text-stroke-width: 0px" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="52%"></td> <td valign="bottom" width="4%"></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Weighted average<br /> amortization&#xA0;period</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Cost</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Accumulated<br /> amortization</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Net&#xA0;carrying<br /> amount</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2"><b>December&#xA0;31, 2012:</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Contractual rights and customer relationships</font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" align="center"><font style="FONT-FAMILY: ARIAL" size="2">14.9&#xA0;years</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">370,527</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(124,048</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">246,479</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Trade names</font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" align="center"><font style="FONT-FAMILY: ARIAL" size="2">9.1 years</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3,147</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(883</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,264</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Non-compete agreements</font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" align="center"><font style="FONT-FAMILY: ARIAL" size="2">5 years</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">54</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(33</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">21</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">373,728</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(124,964</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">248,764</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 12px; TEXT-INDENT: 5%; LETTER-SPACING: normal; FONT: medium 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Company also has trade names with net carrying values of $183.8&#xA0;million at December&#xA0;31, 2011 and 2012, which were determined to have indefinite useful lives and are not subject to amortization. On an annual basis, these 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.</font></p> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 12px; TEXT-INDENT: 5%; LETTER-SPACING: normal; FONT: medium 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Company recorded amortization expense of $27.6&#xA0;million, $27.4&#xA0;million and $26.9 million in the years ended December&#xA0;31, 2010, 2011, and 2012, respectively.</font></p> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 12px; TEXT-INDENT: 5%; LETTER-SPACING: normal; FONT: medium 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Company estimates that it will record amortization expense related to intangible assets existing as of December&#xA0;31, 2012 as follows over the next five years (in millions):</font></p> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 0px; TEXT-INDENT: 0px; LETTER-SPACING: normal; FONT: 12px 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <table style="TEXT-TRANSFORM: none; TEXT-INDENT: 0px; LETTER-SPACING: normal; BORDER-COLLAPSE: collapse; FONT-FAMILY: 'Times New Roman'; WORD-SPACING: 0px; -webkit-text-stroke-width: 0px" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="87%"></td> <td valign="bottom" width="9%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Estimated<br /> amortization<br /> expense</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">2013</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">26.5</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">2014</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">24.0</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">2015</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">22.5</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">2016</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">22.1</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">2017</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">21.6</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> </table> <br class="Apple-interchange-newline" /> </div> <div> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b>16.&#xA0;&#xA0;&#xA0;&#xA0;SEGMENT AND GEOGRAPHIC INFORMATION</b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">Bright Horizons work/life services are primarily comprised of full service center-based child care, back-up dependent care, elementary education, college preparation and admissions counseling, and tuition assistance, counseling and management services. The Company has identified three reporting segments consisting of full service center-based 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 under ASC 280, <i>Segment Reporting</i>. Full service center-based care derives its revenues primarily from contractual arrangements with corporate clients and from tuition. The Company&#x2019;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&#x2019;s other education advisory services consists of the remaining services, including college preparation and admissions counseling and tuition assistance, counseling and management 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.</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The assets and liabilities of the Company are managed centrally and are reported internally in the same manner as the consolidated financial statements; thus, no additional information is produced or included herein.</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="55%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Full&#xA0;service<br /> <font style="WHITE-SPACE: nowrap">center-based</font><br /> care</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Back-up<br /> dependent<br /> care</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Other<br /> educational<br /> advisory<br /> services</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Total</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="14" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>(In thousands)</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2"><b>Year ended December&#xA0;31, 2010</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Revenue</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">769,235</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">99,086</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">9,838</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">878,159</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Amortization of intangibles</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">25,324</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,057</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">250</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">27,631</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Income from operations</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">46,770</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">21,141</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">752</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">68,663</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td height="8"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2"><b>Year ended December&#xA0;31, 2011</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Revenue</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">844,595</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">114,502</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">14,604</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">973,701</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Amortization of intangibles</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">25,178</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,947</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">302</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">27,427</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Income from operations</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">58,950</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">28,669</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(783</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">86,836</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td height="8"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2"><b>Year ended December&#xA0;31, 2012</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Revenue</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">922,214</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">130,082</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">18,642</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,070,938</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Amortization of intangibles</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">25,906</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">725</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">302</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">26,933</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Income from operations</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">60,154</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">33,863</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,447</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">95,464</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> </table> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">Revenue and long-lived assets by geographic region are as follows (in thousands):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="68%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Years ended December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2010</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2"><b>Revenue</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">North America</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">770,848</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">843,645</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">901,210</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Europe and other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">107,311</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">130,056</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">169,728</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Total Revenue</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">878,159</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">973,701</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,070,938</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="80%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2"><b>Long-lived assets</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">North America</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">198,468</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">230,807</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Europe and other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">38,689</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">109,569</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Total long-lived assets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">237,157</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">340,376</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> </table> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The classification &#x201C;North America&#x201D; is comprised of the Company&#x2019;s United States, Canada and Puerto Rico operations and the classification &#x201C;Europe and other&#x201D; includes the Company&#x2019;s United&#xA0;Kingdom, Netherlands, Ireland, and India operations.</font></p> </div> <div> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b>14.&#xA0;&#xA0;&#xA0;&#xA0;COMMITMENTS AND CONTINGENCIES</b></font></p> <p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b><i>Leases</i></b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">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 ten years and many contain renewal options for various periods. Rent expense for the years ended December&#xA0;31, 2010, 2011, and 2012 totaled $52.1&#xA0;million, $57.6&#xA0;million and $62.8 million, respectively.</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">Future minimum payments as of December&#xA0;31, 2012 under non-cancelable operating leases are as follows for the years ending December&#xA0;31 (in thousands):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="89%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">2013</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">61,335</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">2014</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">58,750</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">2015</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">55,204</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">2016</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">50,014</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">2017</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">43,533</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Thereafter</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">191,060</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Total future minimum lease payments</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">459,896</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b><i>Long-Term Debt</i></b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">Future minimum payments as of December&#xA0;31, 2012 of long-term debt, prior to our debt refinancing in January 2013, are as follows for the years ending December&#xA0;31 (in thousands):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="89%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">2013</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,036</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">2014</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4,500</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">2015</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">342,125</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">2016</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">850</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">2017</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">80,963</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Thereafter</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">410,000</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Total future principal payments</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">840,474</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">In addition to these obligations, amounts due in 2013 exclude $87.8 million of accumulated interest on the senior notes as of December&#xA0;31, 2012, which has been added to the principal balance, and that was repaid in 2013 from the proceeds of the Offering as discussed in Note 9, &#x201C;Credit Arrangements and Debt Obligations&#x201D;.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The future minimum payments under the new $790.0 million term loans obtained on January&#xA0;30, 2013 are as follows for each of the following years: $7.9 million&#xA0;in 2013, $7.9 million in 2014, $7.9 million in 2015, $7.9 million in 2016, $7.9 million in 2017, with $750.5 million due thereafter.</font></p> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b><i>Letters of Credit</i></b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Company has eighteen letters of credit outstanding used to guarantee certain rent payments for up to $0.8 million. No amounts have been drawn against these letters of credit.</font></p> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b><i>Litigation</i></b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Company is a defendant in certain legal matters in the ordinary course of business. Management believes the resolution of such legal matters will not have a material effect on the Company&#x2019;s financial condition, results of operations or cash flows.</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 18px"> &#xA0;</p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b><i>Insurance and Regulatory</i></b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Company self-insures a portion of its medical insurance plans and has a high deductible workers&#x2019; compensation plan. While management believes that the amounts accrued for these obligations are sufficient, any significant increase in the number of claims or costs associated with claims made under these plans could have a material adverse effect on the Company&#x2019;s financial position, results of operations or cash flows.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Company&#x2019;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.</font></p> </div> <div> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2"><b>Fair Value of Financial Instruments</b>&#x2014;The Company estimates fair value for certain assets and liabilities and categorizes them based upon the level of judgment associated with the inputs used to measure their fair value and the level of market price observability.</font></p> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2">The Company also develops internal estimates of fair value when the volume and level of activity for the asset or liability has significantly decreased or in those circumstances that indicate when a transaction is not orderly.</font></p> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2">Financial instruments measured and reported at fair value are classified in one of the following categories:</font></p> <p style="margin-top:6px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2">Level 1&#x2014;Quoted prices are available in active markets for identical investments as of the reporting date.</font></p> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2">Level 2&#x2014;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.</font></p> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2">Level 3&#x2014;Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.</font></p> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2">The hierarchy requires the use of observable market data when available. The Company considers relevant and observable market prices in its valuations where possible.</font></p> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2">Fair value measurements, including those categorized as Level 3, are prepared and reviewed at each reporting period.</font></p> <p style="font-size:12px;margin-top:0px;margin-bottom:0px"> &#xA0;</p> <p style="margin-top:0px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2">The Company&#x2019;s financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, and short and long-term debt. The fair value of the Company&#x2019;s financial instruments approximates their carrying value. The following table shows the carrying value and the fair value of the Company&#x2019;s long-term debt at December&#xA0;31, 2011 and 2012 (in millions):</font></p> <p style="font-size:12px;margin-top:0px;margin-bottom:0px"> &#xA0;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style="BORDER-COLLAPSE:COLLAPSE" align="center"> <tr> <td width="68%"></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="6" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>December&#xA0;31,&#xA0;2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="6" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>December&#xA0;31,&#xA0;2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>Carrying<br /> Value</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>Fair<br /> Value</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>Carrying<br /> Value</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>Fair<br /> Value</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Long-term debt</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">825</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">898</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">927</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">973</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> </table> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2">The fair value of the Company&#x2019;s long-term debt was based on quoted market prices when available. When quoted market prices were not available, the fair value of long-term debt was based on quoted market prices of comparable instruments adjusted for differences between the quoted instruments and the instruments being valued, or was estimated using discounted cash flow analyses, based on current incremental borrowing rates for similar types of borrowing arrangements. The Company based its determination of fair value on quoted market prices for the Company&#x2019;s Tranche B and Series C term loans, which are classified within Level 1 of the fair value hierarchy. The Company based its determination of fair value on current incremental borrowing rates for similar debt for the senior notes and senior subordinated notes, which are classified within Level 2 of the fair value hierarchy. Significant increases/decreases in yields and borrowing rates could result in significantly higher (lower) fair value measurements. The Company&#x2019;s interest rate cap for its Tranche B term loans is carried at fair value and is included in other assets on the consolidated balance sheets. The interest rate cap was valued at less than $0.1 million at December&#xA0;31, 2011 and 2012. The fair value of the Company&#x2019;s interest rate cap is based on model-derived valuations that use observable inputs and market data, which are classified as Level 2 of the fair value hierarchy. Gains and losses associated with changes in the fair value of the interest rate cap are included in interest expense on the consolidated statements of operations.</font></p> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2">See Note&#xA0;9, &#x201C;Credit Arrangements and Debt Obligations&#x201D;, for additional information regarding long-term debt and the interest rate cap.</font></p> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2">The Company&#x2019;s policy with respect to transfers between levels of the fair value hierarchy is to recognize transfers into and out of each level as of the end of the reporting period. There have been no transfers between levels during the years ending December&#xA0;31, 2010, 2011 and 2012.</font></p> </div> 0.25 <div> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2"><b>Revenue Recognition</b>&#x2014;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.</font></p> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2">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.</font></p> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2">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&#x2019;s contracts to operate child care and early education centers are generally three to ten years in length with varying renewal options. The Company&#x2019;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.</font></p> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2"><b>Common Stock Valuation and Stock-Based Compensation</b>&#x2014;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.</font></p> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2">The key assumption in determining the fair value of stock-based awards on the date of grant is the fair value of the underlying Class L and Class&#xA0;A shares of common stock (collectively referred to herein as &#x201C;common stock&#x201D;). The fair value of the underlying common stock is determined using valuation models that rely primarily on a discounted cash flow approach to determine the enterprise value and the probability weighted expected return method to allocate the value of the invested capital to the two classes of stock.</font></p> </div> <div> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2">The following is a reconciliation of the changes in the redeemable noncontrolling interest for the years ended December&#xA0;31, 2011 and 2012 (in thousands):</font></p> <p style="font-size:12px;margin-top:0px;margin-bottom:0px"> &#xA0;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style="BORDER-COLLAPSE:COLLAPSE" align="center"> <tr> <td width="74%"></td> <td valign="bottom" width="7%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="7%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="6" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>Years&#xA0;ended&#xA0;December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;2011&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;2012&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Balance at beginning of the period</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">-</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">15,527</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Fair value at acquisition</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">17,063</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">-</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Sale of 18.5% of interest to BHFS</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">-</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">(7,994</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">)&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Net income attributable to noncontrolling interest</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">3</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">347</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Effect of foreign currency translation</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">(1,539</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">246</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="font-size:1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Balance at end of period</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">15,527</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">8,126</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="font-size:1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:3px double #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:3px double #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="border-top:3px double #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:3px double #000000">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> 4162000 <div> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2">Revenue and long-lived assets by geographic region are as follows (in thousands):</font></p> <p style="font-size:12px;margin-top:0px;margin-bottom:0px"> &#xA0;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style="BORDER-COLLAPSE:COLLAPSE" align="center"> <tr> <td width="68%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="10" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>Years ended December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>2010</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2"><b>Revenue</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">North America</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">770,848</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">843,645</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">901,210</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Europe and other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">107,311</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">130,056</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">169,728</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="font-size:1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Total Revenue</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">878,159</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">973,701</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">1,070,938</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> </table> <p style="font-size:12px;margin-top:0px;margin-bottom:0px"> &#xA0;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style="BORDER-COLLAPSE:COLLAPSE" align="center"> <tr> <td width="80%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="6" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2"><b>Long-lived assets</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">North America</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">198,468</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">230,807</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Europe and other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">38,689</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">109,569</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="font-size:1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Total long-lived assets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">237,157</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">340,376</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> </table> </div> <div> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2"><b>Impairment of Long-Lived Assets</b>&#x2014;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&#x2019;s remaining life. If the estimated cash flows are less than the carrying amount of the asset, an impairment loss is recognized to reduce the carrying amount of the asset to its estimated fair value less any disposal costs. Fair value can be determined using discounted cash flows and quoted market prices based on level 3 inputs. The Company recorded fixed asset impairment losses of $0.1 million, $0.8 million and $0.3 million in the years ended December&#xA0;31, 2010, 2011 and 2012, respectively, which have been included in cost of sales.</font></p> </div> <div> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2"><b>Comprehensive (Loss) Income</b>&#x2014;Comprehensive (loss) income is comprised of net (loss) income and foreign currency translation adjustments, and is reported in the consolidated statements of comprehensive (loss) income net of taxes for all periods presented. The Company does not provide for U.S. income taxes on the portion of undistributed earnings of foreign subsidiaries that is intended to be permanently reinvested. Therefore, taxes are not provided for the related currency translation adjustments.</font></p> </div> <div> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">Fixed assets consist of the following (dollars in thousands):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="51%"></td> <td valign="bottom" width="3%"></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom" rowspan="2"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" rowspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Estimated&#xA0;useful&#xA0;lives</b></font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>(Years)</b></font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="2"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" colspan="2"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Buildings</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" align="center"><font style="FONT-FAMILY: ARIAL" size="2">20 &#x2013; 40</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">71,009</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">116,157</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Furniture and equipment</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" align="center"><font style="FONT-FAMILY: ARIAL" size="2">3 &#x2013; 10</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">63,985</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">92,919</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Leasehold improvements</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" align="center"><font style="FONT-FAMILY: ARIAL" size="2">Shorter&#xA0;of the lease term<br /> or&#xA0;the&#xA0;estimated&#xA0;useful&#xA0;life</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">165,397</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">206,328</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Land</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" align="center"><font style="FONT-FAMILY: ARIAL" size="2">&#x2014;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">29,678</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">50,882</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Total fixed assets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">330,069</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">466,286</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Accumulated depreciation and amortization</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(92,912</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(125,910</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Fixed assets, net</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">237,157</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">340,376</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> <div> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Company estimates that it will record amortization expense related to intangible assets existing as of December&#xA0;31, 2012 as follows over the next five years (in millions):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="87%"></td> <td valign="bottom" width="9%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Estimated<br /> amortization<br /> expense</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">2013</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">26.5</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">2014</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">24.0</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">2015</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">22.5</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">2016</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">22.1</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">2017</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">21.6</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> </table> </div> <div> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b>4.&#xA0;&#xA0;&#xA0;&#xA0;FIXED ASSETS</b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">Fixed assets consist of the following (dollars in thousands):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="51%"></td> <td valign="bottom" width="3%"></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom" rowspan="2"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" rowspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Estimated&#xA0;useful&#xA0;lives</b></font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>(Years)</b></font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="2"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" colspan="2"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Buildings</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" align="center"><font style="FONT-FAMILY: ARIAL" size="2">20 &#x2013; 40</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">71,009</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">116,157</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Furniture and equipment</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" align="center"><font style="FONT-FAMILY: ARIAL" size="2">3 &#x2013; 10</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">63,985</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">92,919</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Leasehold improvements</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" align="center"><font style="FONT-FAMILY: ARIAL" size="2">Shorter&#xA0;of the lease term<br /> or&#xA0;the&#xA0;estimated&#xA0;useful&#xA0;life</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">165,397</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">206,328</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Land</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" align="center"><font style="FONT-FAMILY: ARIAL" size="2">&#x2014;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">29,678</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">50,882</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Total fixed assets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">330,069</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">466,286</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Accumulated depreciation and amortization</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(92,912</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(125,910</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Fixed assets, net</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">237,157</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">340,376</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Company recorded depreciation expense of $25.7&#xA0;million, $28.0&#xA0;million and $34.4 million for the years ended December&#xA0;31, 2010, 2011, and 2012, respectively.</font></p> </div> <div> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2"><b>Discount on Long-Term Debt</b>&#x2014;Original issue discounts on the Company&#x2019;s debt are recorded as a reduction of long-term debt and are amortized over the life of the related debt instrument in accordance with the effective interest method. Amortization expense is included in interest expense in the consolidated statements of operations.</font></p> </div> P6Y9M18D <div> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b>9.&#xA0;&#xA0;&#xA0;&#xA0;CREDIT ARRANGEMENTS AND DEBT OBLIGATIONS</b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">Long-term debt consists of the following (in thousands):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="80%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Tranche B term loans</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">350,946</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">346,111</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Series C new term loans</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">84,363</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Senior subordinated notes</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">300,000</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">300,000</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Senior notes</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">174,055</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">197,810</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Original issue discount</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(10,656</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(8,012</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Deferred financing costs</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(15,088</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(13,629</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Total debt</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">799,257</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">906,643</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Less current maturities</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4,814</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,036</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Long-term debt</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">794,443</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">904,607</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b><i>Long-Term Debt in Place at December&#xA0;31, 2012</i></b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">In 2008, in conjunction with the Merger, Bright Horizons Family Solutions LLC (&#x201C;BHFS LLC&#x201D;) entered into agreements with lenders consisting of a Credit and Guaranty Agreement (the &#x201C;Credit Agreement&#x201D;) in an aggregate principal amount not to exceed $440.0&#xA0;million and a Note Purchase Agreement and Indenture for the issuance of $300.0&#xA0;million of senior subordinated notes. In addition, Bright Horizons Capital Corp. (&#x201C;Capital Corp.&#x201D;) entered into a Note Purchase Agreement and Indenture for the issuance of $110.0 million of senior notes. In July of 2011, certain terms and provisions of the Credit Agreement and the Indentures were amended in order to permit the acquisition of a 63% ownership interest in a company in the Netherlands and a subsequent follow-on acquisition of the remaining minority equity interests, and to make certain other investment-related changes.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">In May of 2012, certain terms and provisions of the Credit Agreement were further amended to permit the acquisition of the outstanding shares of Huntyard Limited, to increase the size of the incremental facility provided under the Credit Agreement by an additional $35.0 million, to $85.0 million, to eliminate the mandatory prepayment provision relating to the issuance of equity interests, and to make other changes to certain other covenants. The full amount of the amended incremental facility under the Credit Agreement was subsequently borrowed by BHFS LLC as Series C new term loans.</font></p> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b><i>Credit and Guaranty Agreement</i></b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Credit and Guaranty Agreement consists of three facilities:</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 6px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="5%"><font size="1">&#xA0;</font></td> <td valign="top" width="1%" align="left"><font style="FONT-FAMILY: ARIAL" size="2"><font style="FONT-FAMILY: WINGDINGS" color="#000000" size="2">&#x178;</font></font></td> <td valign="top" width="1%"><font size="1">&#xA0;</font></td> <td valign="top" align="left"> <p align="left"><font style="FONT-FAMILY: ARIAL" size="2"><b>$75&#xA0;million Revolver</b>&#x2014;BHFS LLC may borrow and repay under the revolving credit facility for a term of six years, terminating on May&#xA0;28, 2014, with any amounts outstanding at that date payable in full. The net proceeds of the borrowings under the revolving credit facility may be used for general corporate purposes, including, subject to certain sub-limits and covenant requirements, to fund acquisitions and invest in foreign subsidiaries. At BHFS LLC&#x2019;s option, advances under the revolving credit facility will bear interest at either i)&#xA0;the greater of the Federal Funds Rate plus 0.5% or Prime (the Base Rate) plus a spread based on BHFS LLC&#x2019;s leverage ratio, or ii)&#xA0;LIBOR (the Eurodollar Rate) plus a spread based on BHFS LLC&#x2019;s leverage ratio. Commitment fees on the unused portion of the line are payable at a rate ranging from 0.375% to 0.500%&#xA0;per annum based on BHFS LLC&#x2019;s leverage ratio. No amounts were outstanding at December&#xA0;31, 2011 and 2012 under the revolving credit facility. The weighted average interest rate for the years ended December&#xA0;31, 2010 and 2011 was 4.8% and 5.5%, respectively. There were no borrowings during the year ended December&#xA0;31, 2012.</font></p> </td> </tr> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 6px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="5%"><font size="1">&#xA0;</font></td> <td valign="top" width="1%" align="left"><font style="FONT-FAMILY: ARIAL" size="2"><font style="FONT-FAMILY: WINGDINGS" color="#000000" size="2">&#x178;</font></font></td> <td valign="top" width="1%"><font size="1">&#xA0;</font></td> <td valign="top" align="left"> <p align="left"><font style="FONT-FAMILY: ARIAL" size="2"><b>$365&#xA0;million Tranche&#xA0;B Term Loans</b>&#x2014;The total available amount of $365.0 million in aggregate principal was borrowed in 2008 as of the date of the Merger. Principal repayments of $912,500 are due quarterly and commenced September&#xA0;30, 2008, with the final payment due on May&#xA0;28, 2015. As a result of the calculation of Consolidated Excess Cash Flow for 2010, the Company prepaid $4.9 million of principal in March 2011, satisfying all four quarterly principal payments required in 2011 and a portion of the payments required in 2012. As a result of the calculation of Consolidated Excess Cash Flow for 2011, the Company prepaid $4.8 million of principal in March 2012, satisfying the remaining quarterly principal payments required in 2012 and a portion of the payments required in 2013. At BHFS LLC&#x2019;s option, the term loans bear interest at either i)&#xA0;the greater of the Federal Funds Rate plus 0.5% or Prime (the Base Rate) plus 3.0%, or ii) LIBOR (the Eurodollar Rate) plus 4.0%. Prior to May&#xA0;28, 2011, the third anniversary of the agreement, both the Base Rate and Eurodollar Rate were subject to floors of 4.5% and 3.5%, respectively. At December&#xA0;31, 2011 and 2012, $350.9 million and $346.1 million were outstanding in term loans, respectively. The interest rate on the outstanding term loans was 4.3% at December&#xA0;31, 2011 and 4.2% at December&#xA0;31, 2012. The weighted average interest rate for the years ended December&#xA0;31, 2010, 2011 and 2012 was 7.5%, 5.6% and 4.3%, respectively. In 2009, BHFS LLC entered into an interest rate cap agreement with a bank to hedge changes in LIBOR over the term of the agreement such that the maximum interest BHFS LLC would be subject to would be 7.0% plus the spread of 4.0%. The agreement expires June&#xA0;30, 2014. The interest rate cap is carried at fair value and is included in other assets on the consolidated balance sheets. The interest rate cap, which had an original cost of $1.0&#xA0;million, had a fair value of less than $0.1 million at December&#xA0;31, 2011 and 2012. Changes in the fair value of the interest rate cap are recorded in interest expense, which were an increase to interest expense of $2.3&#xA0;million, $0.6&#xA0;million, and $0.1 million in the years ended December&#xA0;31, 2010, 2011 and 2012, respectively.</font></p> </td> </tr> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 6px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="5%"><font size="1">&#xA0;</font></td> <td valign="top" width="1%" align="left"><font style="FONT-FAMILY: ARIAL" size="2"><font style="FONT-FAMILY: WINGDINGS" color="#000000" size="2">&#x178;</font></font></td> <td valign="top" width="1%"><font size="1">&#xA0;</font></td> <td valign="top" align="left"> <p align="left"><font style="FONT-FAMILY: ARIAL" size="2"><b>$85 million Series C New Term Loans</b>&#x2014;The entire $85.0 million available under the incremental facility was borrowed in May 2012. Principal repayments of $212,500 are due quarterly and commenced June&#xA0;30, 2012, with the final payment due on May&#xA0;23, 2017. At BHFS LLC&#x2019;s option, the new term loans bear interest at either i)&#xA0;the greater of the Federal Funds Rate plus 0.5% or Prime (the Base Rate) plus 3.25%, or ii) LIBOR (the Eurodollar Rate) plus 4.25%. Both the Base Rate and Eurodollar Rate are subject to floors of 2.0% and 1.0%, respectively. At December&#xA0;31, 2012, $84.4 million of Series C new term loans were outstanding and the interest rate on the outstanding loans was 5.3%.</font></p> </td> </tr> </table> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">Debt outstanding under the Credit and Guaranty Agreement is secured by substantially all of the assets of the Company&#x2019;s subsidiaries located in the United States, and is guaranteed by all of the Company&#x2019;s wholly-owned U.S.-based subsidiaries. The Credit and Guaranty Agreement requires that the Company maintain compliance with specified financial ratios and other covenants, including a minimum interest coverage ratio, a maximum total leverage ratio, a maximum capital expenditures requirement, and certain limitations on additional indebtedness, and the acquisitions and dispositions of assets. Amounts outstanding under the Credit and Guaranty Agreement are also subject to mandatory prepayment provisions based on cash flow generation, certain asset sales, or additional debt.</font></p> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b><i>Original Issue Discount</i></b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The revolving credit facility and the Tranche B term loans were issued with original issue discount (OID) of $20.5&#xA0;million; the Series C new term loans issued in May 2012 were issued with OID of $425,000. The OID is amortized over the stated term of each facility with amounts amortized in each period included in interest expense. For the years ended December&#xA0;31, 2010, 2011, and 2012, the total amount of amortized OID included in interest expense was $2.8 million, $2.9 million and $3.1 million, respectively.</font></p> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b><i>Note Purchase Agreements and Indentures</i></b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Note Purchase Agreements and respective Indentures consist of:</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 6px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="5%"><font size="1">&#xA0;</font></td> <td valign="top" width="1%" align="left"><font style="FONT-FAMILY: ARIAL" size="2"><font style="FONT-FAMILY: WINGDINGS" color="#000000" size="2">&#x178;</font></font></td> <td valign="top" width="1%"><font size="1">&#xA0;</font></td> <td valign="top" align="left"> <p align="left"><font style="FONT-FAMILY: ARIAL" size="2"><b>$300 million of Senior Subordinated Notes:</b> The senior subordinated notes were issued by BHFS LLC on May&#xA0;28, 2008, bearing a fixed annual interest rate of 11.5% computed on the basis of a 360-day year and twelve 30-day months. Interest is payable quarterly and the senior subordinated notes mature and are payable in full on May&#xA0;28, 2018. The senior subordinated notes are guaranteed by all of the Company&#x2019;s wholly-owned US-based subsidiaries.</font></p> </td> </tr> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 6px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="5%"><font size="1">&#xA0;</font></td> <td valign="top" width="1%" align="left"><font style="FONT-FAMILY: ARIAL" size="2"><font style="FONT-FAMILY: WINGDINGS" color="#000000" size="2">&#x178;</font></font></td> <td valign="top" width="1%"><font size="1">&#xA0;</font></td> <td valign="top" align="left"> <p align="left"><font style="FONT-FAMILY: ARIAL" size="2"><b>$110 million of Senior Notes:</b> The senior notes were issued by Capital Corp. on May&#xA0;28, 2008, bearing a fixed annual interest rate of 13.0% computed on the basis of a 360-day year and twelve 30-day months. Interest is payable quarterly in arrears and the senior notes mature and are payable in full on November&#xA0;28, 2018. At Capital Corp.&#x2019;s option, interest due on or before May&#xA0;28, 2013, is payable in cash or by such interest being added to the principal. At December&#xA0;31, 2012, the Company had $197.8 million of aggregate principal amount of the senior notes outstanding, which includes the interest that has been added to the principal. The senior notes are not guaranteed by any of the Company&#x2019;s subsidiaries. Accumulated interest in the amount of $87.8 million added to the principal was due in 2013; however, since the Company used a portion of the proceeds from its initial public offering in 2013 to repay that liability, the amount is presented as a long-term liability at December&#xA0;31, 2012.</font></p> </td> </tr> </table> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Indentures and the Note Purchase Agreements do not contain any financial maintenance covenants.</font></p> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b><i>Deferred Financing Fees</i></b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">BHFS LLC and Capital Corp. incurred financing fees of $27.1&#xA0;million in connection with the 2008 debt agreements and BHFS LLC incurred an additional $2.3 million related to the 2012 Series C new term loans. These fees are being amortized over the terms of the related debt instruments and such amortization is included in interest expense in the consolidated statements of operations. Amortization expense relating to these deferred financing costs for the years ended December&#xA0;31, 2010, 2011, and 2012, was $3.3 million, $3.4 million and $3.7 million, respectively.</font></p> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b><i>Overdraft Facilities</i></b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Company&#x2019;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 &#xA3;0.3&#xA0;million (approximately $0.5 million at December&#xA0;31, 2012) and is secured by a cross guarantee by and among the Company&#x2019;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&#x2019;s base rate plus 2.15%. At December&#xA0;31, 2011 and 2012, there were no amounts outstanding under the overdraft facility.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Company&#x2019;s majority-owned subsidiary in the Netherlands, acquired in 2011, maintains a revolving credit facility with a Dutch bank consisting of a <font style="FONT-FAMILY: SANS-SERIF" color="#000000" size="2">&#x20AC;</font>1.0&#xA0; million (approximately $1.3 million at December&#xA0;31, 2012) general facility to support working capital and letter of credit requirements, and a <font style="FONT-FAMILY: SANS-SERIF" color="#000000" size="2">&#x20AC;</font> 1.75&#xA0;million (approximately $2.3 million at December&#xA0;31, 2012) current account facility to support the construction and fit out of new child care centers. The current account facility is reduced by <font style="FONT-FAMILY: SANS-SERIF" color="#000000" size="2">&#x20AC;</font> 0.25&#xA0;million quarterly through January&#xA0;1, 2014, its termination date. Both facilities are repayable upon demand from the Dutch bank and are secured by a right of offset against all accounts maintained by the Company at the lending bank. The current account facility is secured by an additional pledge of equipment. Both facilities bear interest at the bank&#x2019;s Euro base rate plus 1.5%. At December&#xA0;31, 2011 and 2012, there were no amounts outstanding under the facility. The weighted average interest rate for the year ended December&#xA0;31, 2011 was 5.95%. There were no borrowings during the year ended December&#xA0;31, 2012.</font></p> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b><i>2013 Debt Refinancing Transactions</i></b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b>$110 million of Senior Notes</b>&#x2014;On January&#xA0;30, 2013, the Company used the net proceeds of its initial public offering and certain proceeds from the issuance of a $790.0 million senior secured term loan to redeem the senior notes in full for $213.3 million, including the redemption premium.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b><i>New Credit Facility</i></b>&#x2014;On January&#xA0;30, 2013, the Company also entered into new $890.0&#xA0;million senior secured credit facilities to refinance all of the existing indebtedness under the senior credit facilities and the senior subordinated notes and to reflect modifications to certain provisions of the senior credit facilities. Significant terms of the refinancing are as follows:</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 6px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="5%"><font size="1">&#xA0;</font></td> <td valign="top" width="1%" align="left"><font style="FONT-FAMILY: ARIAL" size="2"><font style="FONT-FAMILY: WINGDINGS" color="#000000" size="2">&#x178;</font></font></td> <td valign="top" width="1%"><font size="1">&#xA0;</font></td> <td valign="top" align="left"> <p align="left"><font style="FONT-FAMILY: ARIAL" size="2">$790.0 million term loan facility with a maturity date in 2020;</font></p> </td> </tr> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 6px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="5%"><font size="1">&#xA0;</font></td> <td valign="top" width="1%" align="left"><font style="FONT-FAMILY: ARIAL" size="2"><font style="FONT-FAMILY: WINGDINGS" color="#000000" size="2">&#x178;</font></font></td> <td valign="top" width="1%"><font size="1">&#xA0;</font></td> <td valign="top" align="left"> <p align="left"><font style="FONT-FAMILY: ARIAL" size="2">$100.0 million revolving credit facility with a maturity date in 2018;</font></p> </td> </tr> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 6px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="5%"><font size="1">&#xA0;</font></td> <td valign="top" width="1%" align="left"><font style="FONT-FAMILY: ARIAL" size="2"><font style="FONT-FAMILY: WINGDINGS" color="#000000" size="2">&#x178;</font></font></td> <td valign="top" width="1%"><font size="1">&#xA0;</font></td> <td valign="top" align="left"> <p align="left"><font style="FONT-FAMILY: ARIAL" size="2">The applicable margin percentages for the loan facilities are 2.0%&#xA0;per annum for base rate loans and 3.0%&#xA0;per annum for LIBOR rate loans provided that the base rate for the term loan may not be lower than 2.0% and LIBOR may not be lower than 1.0%.</font></p> </td> </tr> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">Principal payments of $2.0 million are due quarterly and commence March&#xA0;30, 2013, with the final payment due on January&#xA0;30, 2020.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Tranche B term loans and the Series C new term loans were redeemed for an aggregate $433.0 million, including the redemption premium on the Series C new term loans, and the $300.0 million senior subordinated notes were redeemed in full for an aggregate $330.8 million, including the redemption premium.</font></p> </div> <div> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2"><b>Subsequent Events</b>&#x2014;Subsequent events have been evaluated up through the date that these consolidated financial statements were filed.</font></p> </div> <div> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">Future minimum payments as of December&#xA0;31, 2012 under non-cancelable operating leases are as follows for the years ending December&#xA0;31 (in thousands):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="89%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">2013</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">61,335</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">2014</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">58,750</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">2015</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">55,204</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">2016</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">50,014</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">2017</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">43,533</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Thereafter</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">191,060</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Total future minimum lease payments</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">459,896</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> 0.50 <div> <p style="margin-top:6px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2">Other current liabilities consist of the following (in thousands):</font></p> <p style="font-size:12px;margin-top:0px;margin-bottom:0px"> &#xA0;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style="BORDER-COLLAPSE:COLLAPSE" align="center"> <tr> <td width="83%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="6" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Customer amounts on deposit</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">4,932</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">6,579</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Accrued rent and other occupancy costs</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">1,116</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">2,085</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Unfavorable leases</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">500</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">475</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Income taxes payable</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">994</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">933</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Other miscellaneous liabilities</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">1,438</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">2,015</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="font-size:1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">8,980</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">12,087</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="font-size:1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:3px double #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:3px double #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:3px double #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:3px double #000000">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> <div> <p style="margin-top:0px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2">The assets and liabilities of the Company are managed centrally and are reported internally in the same manner as the consolidated financial statements; thus, no additional information is produced or included herein.</font></p> <p style="font-size:12px;margin-top:0px;margin-bottom:0px"> &#xA0;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style="BORDER-COLLAPSE:COLLAPSE" align="center"> <tr> <td width="55%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>Full&#xA0;service<br /> <font style="white-space:nowrap">center-based</font><br /> care</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>Back-up<br /> dependent<br /> care</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>Other<br /> educational<br /> advisory<br /> services</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>Total</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="14" align="center"><font style="font-family:ARIAL" size="1"><b>(In thousands)</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2"><b>Year ended December&#xA0;31, 2010</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Revenue</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">769,235</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">99,086</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">9,838</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">878,159</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Amortization of intangibles</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">25,324</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">2,057</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">250</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">27,631</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Income from operations</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">46,770</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">21,141</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">752</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">68,663</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td height="8"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2"><b>Year ended December&#xA0;31, 2011</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Revenue</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">844,595</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">114,502</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">14,604</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">973,701</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Amortization of intangibles</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">25,178</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">1,947</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">302</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">27,427</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Income from operations</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">58,950</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">28,669</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">(783</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">86,836</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td height="8"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2"><b>Year ended December&#xA0;31, 2012</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Revenue</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">922,214</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">130,082</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">18,642</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">1,070,938</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Amortization of intangibles</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">25,906</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">725</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">302</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">26,933</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Income from operations</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">60,154</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">33,863</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">1,447</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">95,464</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> </table> </div> <div> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2"><b>Accounts Receivable</b>&#x2014;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.</font></p> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2">Activity in the allowance for doubtful accounts is as follows (in thousands):</font></p> <p style="font-size:12px;margin-top:0px;margin-bottom:0px"> &#xA0;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style="BORDER-COLLAPSE:COLLAPSE" align="center"> <tr> <td width="76%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="10" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>Years ended December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>2010</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Beginning balance</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">1,675</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">1,691</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">1,514</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Provision</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">1,516</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">1,043</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">734</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Write offs and adjustments</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">(1,500</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">(1,220</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">(621</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="font-size:1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Ending balance</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">1,691</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">1,514</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">1,627</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="font-size:1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> P10Y <div> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2"><b>Principles of Consolidation</b>&#x2014;The consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany balances and transactions have been eliminated in consolidation.</font></p> </div> <div> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b>18.&#xA0;&#xA0;&#xA0;&#xA0;QUARTERLY RESULTS (UNAUDITED)</b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">In the opinion of the Company&#x2019;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.</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="48%"></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>March&#xA0;31,&#xA0;2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>June&#xA0;30,&#xA0;2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>September&#xA0;30,<br /> 2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>December&#xA0;31,<br /> 2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="14" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>(In thousands)</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Revenue</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">232,922</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">248,017</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">243,877</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">248,885</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Gross profit</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">49,296</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">55,322</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">49,183</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">53,400</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Income from operations</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">20,226</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">25,535</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">18,293</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">22,782</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Net income (loss)</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,263</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,519</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(364</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3,870</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Net income (loss) attributable to Bright Horizons Family Solutions Inc</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,263</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,519</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(456</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3,959</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Allocation of net (loss) income to common stockholders&#x2014;basic and diluted:</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Class L</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">16,995</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">17,608</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">18,253</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">18,712</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Class&#xA0;A</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(18,564</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(15,406</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(19,030</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(15,083</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Earnings (loss) per share:</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Class L&#x2014;basic and diluted</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">12.90</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">13.37</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">13.86</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">14.20</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Class&#xA0;A&#x2014;basic and diluted</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(3.09</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(2.56</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(3.16</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(2.51</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="48%"></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>March&#xA0;31,&#xA0;2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>June&#xA0;30,&#xA0;2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>September&#xA0;30,<br /> 2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>December&#xA0;31,<br /> 2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="14" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>(In thousands)</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Revenue</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">258,122</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">271,463</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">267,927</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">273,426</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Gross profit</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">58,020</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">64,553</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">60,092</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">63,105</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Income from operations</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">26,104</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">16,061</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">25,355</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">27,944</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Net income (loss)</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3,590</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,914</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,606</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4,227</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Net income (loss) attributable to Bright Horizons Family Solutions Inc</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3,509</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,967</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,446</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4,174</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Allocation of net (loss) income to common stockholders&#x2014;basic and diluted:</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Class L</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">18,513</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">19,590</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">20,298</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">20,810</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Class&#xA0;A</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(15,070</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(25,482</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(18,521</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(17,412</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Earnings (loss) per share:</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Class L&#x2014;basic and diluted</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">13.99</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">14.76</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">15.30</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">15.68</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Class&#xA0;A&#x2014;basic and diluted</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(2.49</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(4.20</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(3.06</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(2.87</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> </table> </div> <div> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">Future minimum payments as of December&#xA0;31, 2012 of long-term debt, prior to our debt refinancing in January 2013, are as follows for the years ending December&#xA0;31 (in thousands):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="89%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">2013</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,036</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">2014</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4,500</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">2015</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">342,125</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">2016</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">850</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">2017</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">80,963</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Thereafter</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">410,000</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Total future principal payments</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">840,474</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> <div> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b>1.&#xA0;&#xA0;&#xA0;&#xA0;ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES</b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b>Organization</b>&#x2014;Bright Horizons Family Solutions Inc. (&#x201C;Bright Horizons&#x201D; or the &#x201C;Company&#x201D;) provides workplace services for employers and families throughout the United States, Puerto Rico, Canada, the United Kingdom, 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 management, and other family support services.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Company operates its child care and early education centers under various types of arrangements, which generally can be classified into two categories: (i)&#xA0;the management or cost plus (&#x201C;Cost Plus&#x201D;) model, where Bright Horizons manages a work-site child care and early education center under a cost-plus arrangement with an employer sponsor, and (ii)&#xA0;the profit and loss (P&amp;L) model, where the Company assumes the financial risk of the child care and early education center&#x2019;s operations. The P&amp;L model may be operated under either (a)&#xA0;the sponsor model, where Bright Horizons provides child care and early educational services on a priority enrollment basis for employees of an employer sponsor, or (b)&#xA0;the lease/consortium model, where the Company provides priority child care and early education to the employees of multiple employers located within a real estate developer&#x2019;s property or the community at large. 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.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b>2013 Initial Public Offering</b>&#x2014;On January&#xA0;30, 2013, the Company completed an initial public offering (&#x201C;the Offering&#x201D;) and, after the exercise of the overallotment option on February&#xA0;21, 2013, issued a total of 11.6&#xA0;million shares of common stock in exchange for $233.3 million, net of offering costs. 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&#xA0;30, 2013.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">On January&#xA0;11, 2013, the Company effected a 1&#x2013;for&#x2013;1.9704 reverse split of its Class&#xA0;A common stock. All previously reported Class&#xA0;A per share and Class&#xA0;A share amounts in the accompanying financial statements and related notes have been retroactively adjusted to reflect the reverse stock split.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">In addition, the Company converted each share of its Class L common stock into 35.1955 shares of Class&#xA0;A common stock, and, immediately following the conversion of its Class L common stock, reclassified the Class&#xA0;A common stock into common stock, for which 475&#xA0;million shares were authorized. The Company also authorized 25&#xA0;million shares of undesignated preferred stock for issuance.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b>2013 Refinancing</b>&#x2014;On January&#xA0;30, 2013, the Company entered into new $890.0&#xA0;million senior secured credit facilities to refinance all of the existing indebtedness under the senior credit facilities and the senior subordinated notes and to modify certain provisions of the senior credit facilities. Significant terms of the refinancing are as follows:</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 6px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="5%"><font size="1">&#xA0;</font></td> <td valign="top" width="1%" align="left"><font style="FONT-FAMILY: ARIAL" size="2"><font style="FONT-FAMILY: WINGDINGS" color="#000000" size="2">&#x178;</font></font></td> <td valign="top" width="1%"><font size="1">&#xA0;</font></td> <td valign="top" align="left"> <p align="left"><font style="FONT-FAMILY: ARIAL" size="2">$790.0 million term loan facility with a maturity date in 2020;</font></p> </td> </tr> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 6px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="5%"><font size="1">&#xA0;</font></td> <td valign="top" width="1%" align="left"><font style="FONT-FAMILY: ARIAL" size="2"><font style="FONT-FAMILY: WINGDINGS" color="#000000" size="2">&#x178;</font></font></td> <td valign="top" width="1%"><font size="1">&#xA0;</font></td> <td valign="top" align="left"> <p align="left"><font style="FONT-FAMILY: ARIAL" size="2">$100.0 million revolving credit facility with a maturity date in 2018;</font></p> </td> </tr> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 6px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="5%"><font size="1">&#xA0;</font></td> <td valign="top" width="1%" align="left"><font style="FONT-FAMILY: ARIAL" size="2"><font style="FONT-FAMILY: WINGDINGS" color="#000000" size="2">&#x178;</font></font></td> <td valign="top" width="1%"><font size="1">&#xA0;</font></td> <td valign="top" align="left"> <p align="left"><font style="FONT-FAMILY: ARIAL" size="2">The applicable margin percentages for the loan facilities are 2.0%&#xA0;per annum for base rate loans and 3.0%&#xA0;per annum for LIBOR rate loans provided that the base rate for the term loan may not be lower than 2.0% and LIBOR may not be lower than 1.0%.</font></p> </td> </tr> </table> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The refinancing, which reduced the Company&#x2019;s overall weighted average interest rate, resulted in a loss on extinguishment of debt of approximately $63.0 million, including redemption premiums on the senior notes, the senior subordinated notes and the Series C new term loans, and the write-off of deferred financing costs associated with this indebtedness, which we recorded in the first quarter of 2013. See Note&#xA0;9, &#x201C;Credit Arrangements and Debt Obligations&#x201D;, for additional information regarding long-term debt.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b>Basis of Presentation</b>&#x2014;On May&#xA0;28, 2008, Bright Horizons Family Solutions,&#xA0;Inc. (the &#x201C;Predecessor&#x201D;) completed a transaction (the &#x201C;Merger&#x201D;) with investment funds affiliated with Bain Capital Partners,&#xA0;LLC (the &#x201C;Sponsor&#x201D;), pursuant to which a wholly-owned merger subsidiary was merged with and into the Predecessor, which converted to a single member limited liability corporation (LLC), Bright Horizons Family Solutions&#xA0;LLC, and continued as the surviving corporation. Bright Horizons Family Solutions&#xA0;LLC is a wholly-owned subsidiary of Bright Horizons Capital&#xA0;Corp., which is in turn a wholly- owned subsidiary of Bright Horizons Family Solutions&#xA0;Inc., which is controlled by investment funds affiliated with the Sponsor. In July 2012, Bright Horizons Family Solutions Inc. changed its name from Bright Horizons Solutions Corp.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">As part of the Merger, 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.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b>Principles of Consolidation</b>&#x2014;The consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany balances and transactions have been eliminated in consolidation.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b>Reclassifications</b>&#x2014;Certain reclassifications have been made to the prior year balances to conform to the current year&#x2019;s presentation, with no impact on prior year earnings or shareholders&#x2019; equity.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b>Use of Estimates</b>&#x2014;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&#x2019;s significant accounting policies in the preparation of the consolidated financial statements relate to revenue recognition, goodwill and other intangibles, income taxes and common stock valuation and stock-based compensation. Actual results may differ from management&#x2019;s estimates.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b>Foreign Operations</b>&#x2014;The functional currency of the Company&#x2019;s foreign subsidiaries is their local currency. The assets and liabilities of the Company&#x2019;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&#x2019; equity.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Company&#x2019;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&#x2019; equity, while gains and losses resulting from the remeasurement of intercompany receivables from those foreign subsidiaries for which the Company anticipates settlement in the foreseeable future are recorded in the consolidated statement of operations. The net gains and losses recorded in the consolidated statements of operations for the years ended December&#xA0;31, 2010 and 2012 were not significant. The Company recorded a net foreign currency gain of $0.8 million in the consolidated statement of operations for the year ended December&#xA0;31, 2011 as a result of the settlement of an intercompany note during the year. There were no settlements of intercompany notes during the year ended December&#xA0;31, 2012.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b>Fair Value of Financial Instruments</b>&#x2014;The Company estimates fair value for certain assets and liabilities and categorizes them based upon the level of judgment associated with the inputs used to measure their fair value and the level of market price observability.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Company also develops internal estimates of fair value when the volume and level of activity for the asset or liability has significantly decreased or in those circumstances that indicate when a transaction is not orderly.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">Financial instruments measured and reported at fair value are classified in one of the following categories:</font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">Level 1&#x2014;Quoted prices are available in active markets for identical investments as of the reporting date.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">Level 2&#x2014;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.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">Level 3&#x2014;Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The hierarchy requires the use of observable market data when available. The Company considers relevant and observable market prices in its valuations where possible.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">Fair value measurements, including those categorized as Level 3, are prepared and reviewed at each reporting period.</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Company&#x2019;s financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, and short and long-term debt. The fair value of the Company&#x2019;s financial instruments approximates their carrying value. The following table shows the carrying value and the fair value of the Company&#x2019;s long-term debt at December&#xA0;31, 2011 and 2012 (in millions):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="68%"></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>December&#xA0;31,&#xA0;2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>December&#xA0;31,&#xA0;2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Carrying<br /> Value</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Fair<br /> Value</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Carrying<br /> Value</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Fair<br /> Value</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Long-term debt</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">825</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">898</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">927</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">973</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> </table> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The fair value of the Company&#x2019;s long-term debt was based on quoted market prices when available. When quoted market prices were not available, the fair value of long-term debt was based on quoted market prices of comparable instruments adjusted for differences between the quoted instruments and the instruments being valued, or was estimated using discounted cash flow analyses, based on current incremental borrowing rates for similar types of borrowing arrangements. The Company based its determination of fair value on quoted market prices for the Company&#x2019;s Tranche B and Series C term loans, which are classified within Level 1 of the fair value hierarchy. The Company based its determination of fair value on current incremental borrowing rates for similar debt for the senior notes and senior subordinated notes, which are classified within Level 2 of the fair value hierarchy. Significant increases/decreases in yields and borrowing rates could result in significantly higher (lower) fair value measurements. The Company&#x2019;s interest rate cap for its Tranche B term loans is carried at fair value and is included in other assets on the consolidated balance sheets. The interest rate cap was valued at less than $0.1 million at December&#xA0;31, 2011 and 2012. The fair value of the Company&#x2019;s interest rate cap is based on model-derived valuations that use observable inputs and market data, which are classified as Level 2 of the fair value hierarchy. Gains and losses associated with changes in the fair value of the interest rate cap are included in interest expense on the consolidated statements of operations.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">See Note&#xA0;9, &#x201C;Credit Arrangements and Debt Obligations&#x201D;, for additional information regarding long-term debt and the interest rate cap.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Company&#x2019;s policy with respect to transfers between levels of the fair value hierarchy is to recognize transfers into and out of each level as of the end of the reporting period. There have been no transfers between levels during the years ending December&#xA0;31, 2010, 2011 and 2012.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b>Concentrations of Credit Risk</b>&#x2014;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&#x2019;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&#x2019;s net revenue or accounts receivable. The Company believes that no significant credit risk exists at December&#xA0;31, 2011 and 2012.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b>Cash and Cash Equivalents</b>&#x2014;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.</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Company&#x2019;s cash management system provides for the funding of the main bank disbursement accounts on a daily basis as checks are presented for payment. Under this system, outstanding checks may be in excess of the cash balances at certain banks, creating book overdrafts. There were no book overdrafts at December&#xA0;31, 2011 and 2012.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b>Accounts Receivable</b>&#x2014;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.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">Activity in the allowance for doubtful accounts is as follows (in thousands):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="76%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Years ended December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2010</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Beginning balance</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,675</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,691</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,514</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Provision</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,516</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,043</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">734</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Write offs and adjustments</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,500</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,220</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(621</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Ending balance</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,691</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,514</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,627</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b>Fixed Assets</b>&#x2014;Property and equipment, including leasehold improvements, are carried at cost less accumulated depreciation or amortization. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or their estimated useful lives. The cost and accumulated depreciation of assets sold or otherwise disposed of are removed from the consolidated balance sheet and the resulting gain or loss is reflected in the consolidated statements of operations.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">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.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b>Goodwill and Intangible Assets</b>&#x2014;Goodwill represents the excess of cost over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. The Company&#x2019;s intangible assets principally consist of various customer relationships and contractual rights, and trade names.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">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 Company tests goodwill for impairment by comparing the fair value of each reporting unit to its carrying value. The Company performs its annual impairment test as of December&#xA0;31. 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&#x2019;s estimated discount rate. If the fair value of the Company&#x2019;s reporting unit exceeds its carrying amount, the goodwill of the reporting unit is considered not impaired. If the carrying amount of the Company&#x2019;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&#x2019;s goodwill with the carrying value of that goodwill. No goodwill impairment losses were recorded in the years ended December&#xA0;31, 2010, 2011, or 2012.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">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. Impairment losses of $0.4 million were recorded in the years ended December&#xA0;31, 2011 and 2012 in relation to certain trade names with indefinite lives, which have been included in selling, general and administrative expenses. No impairment losses were recorded in the year ended December&#xA0;31, 2010 in relation to intangible assets.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">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 four 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.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b>Impairment of Long-Lived Assets</b>&#x2014;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&#x2019;s remaining life. If the estimated cash flows are less than the carrying amount of the asset, an impairment loss is recognized to reduce the carrying amount of the asset to its estimated fair value less any disposal costs. Fair value can be determined using discounted cash flows and quoted market prices based on level 3 inputs. The Company recorded fixed asset impairment losses of $0.1 million, $0.8 million and $0.3 million in the years ended December&#xA0;31, 2010, 2011 and 2012, respectively, which have been included in cost of sales.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b>Deferred Revenue</b>&#x2014;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 the current operating cycle. In these circumstances, the Company records a long-term obligation and recognizes revenue over the period of the agreement as the services are rendered.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b>Leases and Accrued Rent</b>&#x2014;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 accrued rent.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b>Discount on Long-Term Debt</b>&#x2014;Original issue discounts on the Company&#x2019;s debt are recorded as a reduction of long-term debt and are amortized over the life of the related debt instrument in accordance with the effective interest method. Amortization expense is included in interest expense in the consolidated statements of operations.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b>Deferred Financing Costs</b>&#x2014;Deferred financing costs are recorded as a reduction of long-term debt and are amortized over the life of the related debt instrument in accordance with the effective interest method. Amortization of this expense is included in interest expense in the consolidated statements of operations.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b>Other Long-Term Liabilities</b>&#x2014;Other long-term liabilities consist primarily of amounts payable to clients, pursuant to terms of operating agreements or for deposits held by the Company, and obligations for uncertain tax positions.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b>Income Taxes</b>&#x2014;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.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">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.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b>Noncontrolling Interest</b>&#x2014;The Company recorded the redeemable noncontrolling interest from its initial acquisition of a 63% ownership interest of a company in the Netherlands at fair value at the date of acquisition. The difference between the acquisition price and carrying value of the redeemable non-controlling interest of any additional interest acquired is recorded as an adjustment to additional paid in capital. Any accumulated other comprehensive income (loss) associated with the additional acquired interest is recorded as other comprehensive income (loss) of the Company.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">In connection with the initial acquisition, the Company entered into put and call option agreements with the minority shareholders for the purchase of the noncontrolling interest at a future date at a value based on a contractually determined formula. As a result of the option agreements, the noncontrolling interest is considered redeemable and is classified as temporary equity on the Company&#x2019;s consolidated balance sheet.</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The noncontrolling interest is reviewed at each subsequent reporting period and adjusted, as needed, to reflect its then redemption value.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b>Revenue Recognition</b>&#x2014;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.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">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.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">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&#x2019;s contracts to operate child care and early education centers are generally three to ten years in length with varying renewal options. The Company&#x2019;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.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b>Common Stock Valuation and Stock-Based Compensation</b>&#x2014;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.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The key assumption in determining the fair value of stock-based awards on the date of grant is the fair value of the underlying Class L and Class&#xA0;A shares of common stock (collectively referred to herein as &#x201C;common stock&#x201D;). The fair value of the underlying common stock is determined using valuation models that rely primarily on a discounted cash flow approach to determine the enterprise value and the probability weighted expected return method to allocate the value of the invested capital to the two classes of stock.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b>Comprehensive (Loss) Income</b>&#x2014;Comprehensive (loss) income is comprised of net (loss) income and foreign currency translation adjustments, and is reported in the consolidated statements of comprehensive (loss) income net of taxes for all periods presented. The Company does not provide for U.S. income taxes on the portion of undistributed earnings of foreign subsidiaries that is intended to be permanently reinvested. Therefore, taxes are not provided for the related currency translation adjustments.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b>Earnings (Loss) Per Share</b>&#x2014;Net earnings (loss) per share is calculated using the two-class method, which is an earnings allocation formula that determines net income (loss) per share for the holders of the Company&#x2019;s Class&#xA0;L and Class&#xA0;A shares. The Class L shares contain participation rights in any dividend paid by the Company or upon liquidation of the Company. Net income available to Class&#xA0;A common shareholders includes the effects of any Class L preference amounts. 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 (loss) per share is calculated using the treasury stock method for all outstanding stock options and the as-converted method for the Class L shares.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b>Subsequent Events</b>&#x2014;Subsequent events have been evaluated up through the date that these consolidated financial statements were filed.</font></p> </div> <div> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b>6.&#xA0;&#xA0;&#xA0;&#xA0;ACCOUNTS PAYABLE AND ACCRUED EXPENSES</b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">Accounts payable and accrued expenses consist of the following (in thousands):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="82%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Accounts payable</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">7,850</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6,319</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Accrued payroll and employee benefits</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">47,950</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">52,344</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Accrued insurance</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">12,916</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">13,674</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Accrued interest</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">241</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,430</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Accrued occupancy costs</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,272</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,336</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Accrued professional fees</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,777</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,135</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Other accrued expenses</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">16,027</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">18,969</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">89,033</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">97,207</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> <div> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The computation of basic and diluted earnings per common share is as follows (in thousands, except share and per share amounts):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="67%"></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Years ended December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2010</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2"><b>Net (loss) income&#x2014;basic and diluted</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(9,994</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4,759</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">8,162</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Accretion of Class L preference</font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">64,712</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">71,568</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">79,211</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Accretion of Class L preference for vested options</font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,251</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,274</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">5,436</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Net (loss) available to common shareholders</font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(75,957</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(68,083</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(76,485</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td height="8"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2"><b>Allocation of net (loss) income to common stockholders&#x2014;basic and diluted:</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Class L</font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">64,712</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">71,568</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">79,211</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Class&#xA0;A</font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(75,957</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(68,083</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(76,485</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr> <td height="8"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2"><b>Weighted average number of common shares&#x2014;basic and diluted:</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Class L</font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,315,153</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,317,273</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,326,206</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Class&#xA0;A</font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6,006,960</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6,016,733</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6,058,512</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td height="8"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2"><b>Earnings (loss) per common share&#x2014;basic and diluted:</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Class L</font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">49.21</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">54.33</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">59.73</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Class&#xA0;A</font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(12.64</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(11.32</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(12.62</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> </table> </div> Shorter of the lease term or the estimated useful life 0.08 <div> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The operating results for any quarter are not necessarily indicative of the results of any future quarter.</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="48%"></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>March&#xA0;31,&#xA0;2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>June&#xA0;30,&#xA0;2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>September&#xA0;30,<br /> 2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>December&#xA0;31,<br /> 2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="14" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>(In thousands)</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Revenue</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">232,922</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">248,017</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">243,877</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">248,885</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Gross profit</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">49,296</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">55,322</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">49,183</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">53,400</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Income from operations</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">20,226</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">25,535</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">18,293</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">22,782</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Net income (loss)</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,263</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,519</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(364</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3,870</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Net income (loss) attributable to Bright Horizons Family Solutions Inc</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,263</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,519</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(456</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3,959</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Allocation of net (loss) income to common stockholders&#x2014;basic and diluted:</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Class L</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">16,995</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">17,608</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">18,253</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">18,712</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Class&#xA0;A</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(18,564</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(15,406</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(19,030</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(15,083</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Earnings (loss) per share:</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Class L&#x2014;basic and diluted</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">12.90</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">13.37</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">13.86</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">14.20</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Class&#xA0;A&#x2014;basic and diluted</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(3.09</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(2.56</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(3.16</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(2.51</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="48%"></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>March&#xA0;31,&#xA0;2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>June&#xA0;30,&#xA0;2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>September&#xA0;30,<br /> 2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>December&#xA0;31,<br /> 2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="14" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>(In thousands)</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Revenue</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">258,122</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">271,463</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">267,927</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">273,426</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Gross profit</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">58,020</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">64,553</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">60,092</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">63,105</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Income from operations</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">26,104</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">16,061</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">25,355</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">27,944</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Net income (loss)</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3,590</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,914</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,606</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4,227</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Net income (loss) attributable to Bright Horizons Family Solutions Inc</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3,509</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,967</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,446</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4,174</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Allocation of net (loss) income to common stockholders&#x2014;basic and diluted:</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Class L</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">18,513</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">19,590</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">20,298</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">20,810</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Class&#xA0;A</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(15,070</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(25,482</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(18,521</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(17,412</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Earnings (loss) per share:</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Class L&#x2014;basic and diluted</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">13.99</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">14.76</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">15.30</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">15.68</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Class&#xA0;A&#x2014;basic and diluted</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(2.49</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(4.20</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(3.06</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(2.87</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> </table> </div> <div> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2"><b>Deferred Financing Costs</b>&#x2014;Deferred financing costs are recorded as a reduction of long-term debt and are amortized over the life of the related debt instrument in accordance with the effective interest method. Amortization of this expense is included in interest expense in the consolidated statements of operations.</font></p> </div> <div> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2"><b>Goodwill and Intangible Assets</b>&#x2014;Goodwill represents the excess of cost over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. The Company&#x2019;s intangible assets principally consist of various customer relationships and contractual rights, and trade names.</font></p> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2">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 Company tests goodwill for impairment by comparing the fair value of each reporting unit to its carrying value. The Company performs its annual impairment test as of December&#xA0;31. 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&#x2019;s estimated discount rate. If the fair value of the Company&#x2019;s reporting unit exceeds its carrying amount, the goodwill of the reporting unit is considered not impaired. If the carrying amount of the Company&#x2019;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&#x2019;s goodwill with the carrying value of that goodwill. No goodwill impairment losses were recorded in the years ended December&#xA0;31, 2010, 2011, or 2012.</font></p> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2">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. Impairment losses of $0.4 million were recorded in the years ended December&#xA0;31, 2011 and 2012 in relation to certain trade names with indefinite lives, which have been included in selling, general and administrative expenses. No impairment losses were recorded in the year ended December&#xA0;31, 2010 in relation to intangible assets.</font></p> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2">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 four 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.</font></p> </div> <div> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2">Activity in the allowance for doubtful accounts is as follows (in thousands):</font></p> <p style="font-size:12px;margin-top:0px;margin-bottom:0px"> &#xA0;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style="BORDER-COLLAPSE:COLLAPSE" align="center"> <tr> <td width="76%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="10" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>Years ended December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>2010</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Beginning balance</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">1,675</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">1,691</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">1,514</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Provision</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">1,516</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">1,043</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">734</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Write offs and adjustments</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">(1,500</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">(1,220</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">(621</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="font-size:1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Ending balance</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">1,691</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">1,514</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">1,627</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="font-size:1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> <div> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2"><b>Fixed Assets</b>&#x2014;Property and equipment, including leasehold improvements, are carried at cost less accumulated depreciation or amortization. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or their estimated useful lives. The cost and accumulated depreciation of assets sold or otherwise disposed of are removed from the consolidated balance sheet and the resulting gain or loss is reflected in the consolidated statements of operations.</font></p> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2">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.</font></p> </div> <div> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2"><b>Cash and Cash Equivalents</b>&#x2014;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.</font></p> <p style="font-size:12px;margin-top:0px;margin-bottom:0px"> &#xA0;</p> <p style="margin-top:0px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2">The Company&#x2019;s cash management system provides for the funding of the main bank disbursement accounts on a daily basis as checks are presented for payment. Under this system, outstanding checks may be in excess of the cash balances at certain banks, creating book overdrafts. There were no book overdrafts at December&#xA0;31, 2011 and 2012.</font></p> </div> <div> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 18px; TEXT-INDENT: 0px; LETTER-SPACING: normal; FONT: medium 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b>2.&#xA0;&#xA0;&#xA0;&#xA0;ACQUISITIONS</b></font></p> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 6px; TEXT-INDENT: 5%; LETTER-SPACING: normal; FONT: medium 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">As part of the Company&#x2019;s growth strategy to expand through strategic acquisitions, the Company has made the following acquisitions in the years ended December&#xA0;31, 2010, 2011, and 2012.</font></p> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 18px; TEXT-INDENT: 0px; LETTER-SPACING: normal; FONT: medium 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b><i>2010 Acquisitions</i></b></font></p> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 6px; TEXT-INDENT: 5%; LETTER-SPACING: normal; FONT: medium 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">In November 2010, the Company acquired all of the outstanding stock of a child care and early education center in the United States. In December 2010, the Company acquired the assets of a child care and early education center in the United Kingdom and of a provider of tuition management solutions in the United States, which complements the Company&#x2019;s educational advisory services. The aggregate cash consideration for the acquisitions was $7.1&#xA0;million. The purchase price for these acquisitions has been allocated based on the estimated fair value of the acquired assets and assumed liabilities at the date of acquisition.</font></p> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 12px; TEXT-INDENT: 5%; LETTER-SPACING: normal; FONT: medium 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Company acquired total tangible assets of $1.3&#xA0;million and assumed liabilities of $0.5&#xA0;million. In conjunction with these acquisitions, the Company recorded goodwill of $5.4&#xA0;million and other intangible assets of $0.9&#xA0;million, consisting of customer relationships and trade names. The identified intangible assets will be amortized over periods of four to nine years. The acquired intangible assets include trade names of $0.2&#xA0;million that were determined to have indefinite lives.</font></p> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 12px; TEXT-INDENT: 5%; LETTER-SPACING: normal; FONT: medium 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The fair value of the assets acquired in business combinations in the year ended December&#xA0;31, 2010 is as follows (in thousands):</font></p> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 0px; TEXT-INDENT: 0px; LETTER-SPACING: normal; FONT: 12px 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <table style="TEXT-TRANSFORM: none; TEXT-INDENT: 0px; LETTER-SPACING: normal; BORDER-COLLAPSE: collapse; FONT-FAMILY: 'Times New Roman'; WORD-SPACING: 0px; -webkit-text-stroke-width: 0px" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="91%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Cash paid, net of cash acquired</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6,387</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Liabilities assumed</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">463</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Goodwill recognized</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(5,407</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Fair value of assets acquired</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,443</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 12px; TEXT-INDENT: 5%; LETTER-SPACING: normal; FONT: medium 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The operating results of the acquired businesses have been included in the Company&#x2019;s consolidated results of operations from the respective dates of acquisition. The goodwill associated with the asset acquisitions in the United States and the United Kingdom is deductible for tax purposes. The Company incurred deal costs of $0.1 million related to these acquisitions, which have been expensed and are included in selling, general and administrative expenses in the consolidated statements of operations.</font></p> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 0px; TEXT-INDENT: 0px; LETTER-SPACING: normal; FONT: 18px 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 0px; TEXT-INDENT: 0px; LETTER-SPACING: normal; FONT: medium 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b><i>2011 Acquisitions</i></b></font></p> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 6px; TEXT-INDENT: 5%; LETTER-SPACING: normal; FONT: medium 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">In March 2011, the Company acquired the assets of 20 child care and early education centers in the United States. Additionally, the Company acquired the assets of a child care and early education center in the United States in November 2011 and of a child care and early education center in the United Kingdom in December 2011. The aggregate cash consideration for the acquisitions was $27.6&#xA0;million, which related primarily to the March 2011 acquisition. The purchase price for these acquisitions has been allocated based on the estimated fair value of the acquired assets and assumed liabilities at the date of acquisition.</font></p> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 12px; TEXT-INDENT: 5%; LETTER-SPACING: normal; FONT: medium 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Company acquired total tangible assets of $2.2&#xA0;million and assumed liabilities of $0.8&#xA0;million. In conjunction with these acquisitions, the Company recorded goodwill of $23.4&#xA0;million and other intangible assets of $2.8&#xA0;million, consisting primarily of customer relationships. The identified intangible assets will be amortized over periods of five to nine years.</font></p> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 12px; TEXT-INDENT: 5%; LETTER-SPACING: normal; FONT: medium 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">In July 2011, the Company acquired 63% of a company in the Netherlands that operates 20 child care and early education centers for cash consideration of $29.9 million. As a result, this company became a majority-owned subsidiary of the Company, with its operating results included in the Company&#x2019;s consolidated results of operations and the 37% of ownership interest retained by the previous owners presented as noncontrolling interest on the Company&#x2019;s consolidated balance sheet. In connection with this transaction, the Company entered into put and call option agreements with the minority shareholders for the purchase of the noncontrolling interest at a future date at a value based on a contractually determined formula. As a result of the option agreements, the noncontrolling interest is considered redeemable and is classified as temporary equity on the Company&#x2019;s consolidated balance sheet.</font></p> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 12px; TEXT-INDENT: 5%; LETTER-SPACING: normal; FONT: medium 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The purchase price for this transaction has been allocated based on the estimated fair value of the acquired assets and assumed liabilities at the date of acquisition. The Company acquired total tangible assets of $9.4 million and assumed liabilities of $4.6 million, and recorded noncontrolling interest of $17.1 million. Additionally, the Company recorded goodwill of $39.5 million; other intangible assets of $3.4 million, consisting of customer relationships and trade name; and deferred tax liabilities of $0.7 million related to intangible assets subject to amortization that are not deductible for tax purposes. The identified intangible assets will be amortized over periods of four to ten years.</font></p> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 12px; TEXT-INDENT: 5%; LETTER-SPACING: normal; FONT: medium 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The fair value of the assets acquired in business combinations in the year ended December&#xA0;31, 2011 is as follows (in thousands):</font></p> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 0px; TEXT-INDENT: 0px; LETTER-SPACING: normal; FONT: 12px 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <table style="TEXT-TRANSFORM: none; TEXT-INDENT: 0px; LETTER-SPACING: normal; BORDER-COLLAPSE: collapse; FONT-FAMILY: 'Times New Roman'; WORD-SPACING: 0px; -webkit-text-stroke-width: 0px" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="90%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Cash paid, net of cash acquired</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">57,228</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Liabilities assumed</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6,159</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Noncontrolling interest</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">17,063</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Goodwill recognized</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(62,917</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Fair value of assets acquired</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">17,533</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 12px; TEXT-INDENT: 5%; LETTER-SPACING: normal; FONT: medium 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The goodwill associated with the acquisitions in the United States and the United Kingdom is deductible for tax purposes. The goodwill for the acquisition in the Netherlands is not deductible for tax purposes. The Company incurred deal costs of $1.1 million related to these acquisitions, which have been expensed and are included in selling, general and administrative expenses in the consolidated statements of operations.</font></p> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 12px; TEXT-INDENT: 5%; LETTER-SPACING: normal; FONT: medium 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">In the year ended December&#xA0;31, 2011, the Company also paid approximately $0.1 million related to prior year acquisitions.</font></p> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 12px; TEXT-INDENT: 5%; LETTER-SPACING: normal; FONT: medium 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The operating results of the acquired businesses have been included in the Company&#x2019;s consolidated results of operations from the respective dates of acquisition. The operating results for the acquired businesses are included in the Company&#x2019;s consolidated results of operations beginning March&#xA0;14, 2011 for the acquisition of 20 centers in the United States and beginning July&#xA0;20, 2011 for the acquisition in the Netherlands. The acquired businesses contributed revenues of $28.0 million and net loss of $0.5 million for the year ended December&#xA0;31, 2011. The following pro forma summary presents consolidated information as if the business combinations had occurred on January&#xA0;1, 2010 (in thousands):</font></p> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 0px; TEXT-INDENT: 0px; LETTER-SPACING: normal; FONT: 12px 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <table style="TEXT-TRANSFORM: none; TEXT-INDENT: 0px; LETTER-SPACING: normal; BORDER-COLLAPSE: collapse; FONT-FAMILY: 'Times New Roman'; WORD-SPACING: 0px; -webkit-text-stroke-width: 0px" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="76%"></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>&#xA0;&#xA0;&#xA0;&#xA0;Pro&#xA0;forma&#xA0;(Unaudited)&#xA0;&#xA0;&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Years&#xA0;ended&#xA0;December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;2010&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;2011&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Revenue</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">919,581</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">992,247</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Net (loss) income attributable to Bright Horizons Family Solutions Inc.</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(9,136</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">7,115</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> </table> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 18px; TEXT-INDENT: 0px; LETTER-SPACING: normal; FONT: medium 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b><i>2012 Acquisitions</i></b></font></p> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 6px; TEXT-INDENT: 5%; LETTER-SPACING: normal; FONT: medium 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">In May 2012, the Company acquired the outstanding shares of Huntyard Limited, a company that operates 27 child care and early education centers in the United Kingdom, for cash consideration of $110.8&#xA0;million. The final purchase price for this acquisition has been allocated based on the estimated fair values of the acquired assets and assumed liabilities at the date of acquisition as follows (in thousands):</font></p> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 0px; TEXT-INDENT: 0px; LETTER-SPACING: normal; FONT: 12px 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <table style="TEXT-TRANSFORM: none; TEXT-INDENT: 0px; LETTER-SPACING: normal; BORDER-COLLAPSE: collapse; FONT-FAMILY: 'Times New Roman'; WORD-SPACING: 0px; -webkit-text-stroke-width: 0px" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="89%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Cash</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,872</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Accounts receivable</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">341</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Prepaids and other current assets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,880</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Fixed assets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">65,843</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Intangible assets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6,004</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Goodwill</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">49,573</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Total assets acquired</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">127,513</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Accounts payable and accrued expenses</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(7,520</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Taxes payable</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(656</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Deferred revenue and parent deposits</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(3,006</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Deferred taxes</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(5,570</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Total liabilities assumed</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(16,752</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Purchase price</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">110,761</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: rgb(0,0,0) 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 0px; TEXT-INDENT: 0px; LETTER-SPACING: normal; FONT: 12px 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 0px; TEXT-INDENT: 5%; LETTER-SPACING: normal; FONT: medium 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Company recorded goodwill of $49.6&#xA0;million, which will not be deductible for tax purposes. Goodwill related to this acquisition is reported within the full service center-based care segment.</font></p> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 12px; TEXT-INDENT: 5%; LETTER-SPACING: normal; FONT: medium 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">Intangible assets of $6.0&#xA0;million consist of customer relationships and trade names that will be amortized over five and seven years, respectively. A deferred tax liability of $1.5 million was recorded related to the intangible assets for which the amortization is not deductible for tax purposes.</font></p> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 12px; TEXT-INDENT: 5%; LETTER-SPACING: normal; FONT: medium 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Company incurred deal costs of $0.5 million related to this acquisition, which have been expensed and are included in selling, general and administrative expenses in the consolidated statements of operations.</font></p> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 12px; TEXT-INDENT: 5%; LETTER-SPACING: normal; FONT: medium 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">During the second quarter of 2013, the Company obtained additional information to determine the fair values of certain assets acquired and liabilities assumed as of the acquisition date. Based on such information, the Company retrospectively adjusted the accompanying consolidated balance sheet as of December&#xA0;31, 2012 to increase goodwill by $3.9 million, increase deferred income tax liabilities by $2.5&#xA0;million and decrease deferred income tax assets by $1.4 million. These adjustments included the effect of $0.1 million of currency translation on the goodwill and deferred income tax balances. There were no changes to the accompanying 2012 consolidated statements of operations or consolidated statements of cash flows.</font></p> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 12px; TEXT-INDENT: 5%; LETTER-SPACING: normal; FONT: medium 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The operating results for this acquisition are included in the consolidated results of operations from the date of acquisition. The acquired business contributed revenues of $26.3 million and net income of $1.1&#xA0;million in the year ended December&#xA0;31, 2012. The following pro forma summary presents consolidated information as if the business combination had occurred on January&#xA0;1, 2011 (in thousands):</font></p> <p style="TEXT-TRANSFORM: none; MARGIN-TOP: 0px; TEXT-INDENT: 0px; LETTER-SPACING: normal; FONT: 12px 'Times New Roman'; WHITE-SPACE: normal; MARGIN-BOTTOM: 0px; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px"> &#xA0;</p> <table style="TEXT-TRANSFORM: none; TEXT-INDENT: 0px; LETTER-SPACING: normal; BORDER-COLLAPSE: collapse; FONT-FAMILY: 'Times New Roman'; WORD-SPACING: 0px; -webkit-text-stroke-width: 0px" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="76%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Pro&#xA0;forma&#xA0;(Unaudited)</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Years&#xA0;ended&#xA0;December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: rgb(0,0,0) 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Revenue</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,016,125</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,088,378</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Net income attributable to Bright Horizons Family Solutions Inc.</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4,804</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">10,329</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> </table> <br class="Apple-interchange-newline" /> </div> <div> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b>Basis of Presentation</b>&#x2014;On May&#xA0;28, 2008, Bright Horizons Family Solutions,&#xA0;Inc. (the &#x201C;Predecessor&#x201D;) completed a transaction (the &#x201C;Merger&#x201D;) with investment funds affiliated with Bain Capital Partners,&#xA0;LLC (the &#x201C;Sponsor&#x201D;), pursuant to which a wholly-owned merger subsidiary was merged with and into the Predecessor, which converted to a single member limited liability corporation (LLC), Bright Horizons Family Solutions&#xA0;LLC, and continued as the surviving corporation. Bright Horizons Family Solutions&#xA0;LLC is a wholly-owned subsidiary of Bright Horizons Capital&#xA0;Corp., which is in turn a wholly- owned subsidiary of Bright Horizons Family Solutions&#xA0;Inc., which is controlled by investment funds affiliated with the Sponsor. In July 2012, Bright Horizons Family Solutions Inc. changed its name from Bright Horizons Solutions Corp.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">As part of the Merger, 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.</font></p> </div> <div> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="74%"></td> <td valign="bottom" width="9%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="9%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Years&#xA0;ended&#xA0;December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;2011&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;2012&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Beginning balance</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4,420</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">7,933</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Additions for tax positions of prior years</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4,392</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">474</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Additions for tax positions of current year</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">557</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">879</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Settlements</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,436</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(474</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Reductions for tax positions of prior years</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(845</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Lapses of statutes of limitations</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(778</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Effect of foreign currency adjustments</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">223</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Ending balance</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">7,933</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">7,412</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> <div> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The changes in the carrying amount of goodwill are as follows (in thousands):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="78%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Years&#xA0;ended&#xA0;December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;2011&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;2012&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Beginning balance</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">887,895</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">947,371</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Goodwill additions during the period</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">62,917</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">49,573</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Adjustments to prior year acquisitions</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">250</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(22</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Tax benefit from the exercise of continuation options</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(71</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(2,506</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Effect of foreign currency translation</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(3,620</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,928</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Ending balance</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">947,371</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">997,344</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> 106982000 <div> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The fair value of the assets acquired in business combinations in the year ended December&#xA0;31, 2010 is as follows (in thousands):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="91%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Cash paid, net of cash acquired</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6,387</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Liabilities assumed</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">463</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Goodwill recognized</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(5,407</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Fair value of assets acquired</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,443</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The fair value of the assets acquired in business combinations in the year ended December&#xA0;31, 2011 is as follows (in thousands):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="90%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Cash paid, net of cash acquired</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">57,228</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Liabilities assumed</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6,159</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Noncontrolling interest</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">17,063</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Goodwill recognized</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(62,917</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Fair value of assets acquired</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">17,533</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> <div> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b>7.&#xA0;&#xA0;&#xA0;&#xA0;OTHER CURRENT LIABILITIES</b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">Other current liabilities consist of the following (in thousands):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="83%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Customer amounts on deposit</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4,932</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6,579</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Accrued rent and other occupancy costs</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,116</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,085</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Unfavorable leases</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">500</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">475</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Income taxes payable</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">994</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">933</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Other miscellaneous liabilities</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,438</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,015</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">8,980</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">12,087</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> <div> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The following table reflects the changes in Class L common stock for the years ended December&#xA0;31, 2010, 2011, and 2012 (in thousands, except share data):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="66%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Shares<br /> Issued</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Shares<br /> Outstanding</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Amount</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Class L common stock, balance at December&#xA0;31, 2009</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,316,146</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,315,003</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">633,452</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Issuance of Class L common stock</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,296</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,296</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">208</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Repurchase of Class L common stock</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(246</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(89</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Accretion of Class L preferred return</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">65,962</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Class L common stock, balance at December&#xA0;31, 2010</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,318,442</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,317,053</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">699,533</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Issuance of Class L common stock</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">528</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">528</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">47</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Accretion of Class L preferred return</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">72,842</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Class L common stock, balance at December&#xA0;31, 2011</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,318,970</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,317,581</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">772,422</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Issuance of Class L common stock</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">18,610</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">18,610</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,675</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Repurchase of Class L common stock</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(9,076</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(4,643</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Retirement of treasury stock</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(10,465</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Accretion of Class L preferred return</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">84,647</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Class L common stock, balance at December&#xA0;31, 2012</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,327,115</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,327,115</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">854,101</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> P2Y <div> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b>11.&#xA0;&#xA0;&#xA0;&#xA0;INCOME TAXES</b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">(Loss) income before income taxes consists of the following (in thousands):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="74%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Years ended December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2010</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">United States</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(19,321</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3,973</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6,882</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Foreign</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(987</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,614</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4,870</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Total</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(20,308</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">5,587</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">11,752</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">Income tax (benefit) expense consists of the following (in thousands):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="73%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Years ended December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2010</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Current tax (benefit) expense</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Federal</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,068</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(2,063</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">8,102</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">State</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,277</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,517</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,361</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Foreign</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">231</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">7,120</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4,434</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3,576</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6,574</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">14,897</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Deferred tax (benefit) expense</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Federal</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(11,213</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,292</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(9,048</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">State</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(2,419</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">523</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,453</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Foreign</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(258</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(4,980</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,153</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(13,890</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(5,749</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(11,654</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Income tax (benefit) expense</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(10,314</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">825</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3,243</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The following is a reconciliation of the U.S. Federal statutory rate to the effective rate on pretax (loss) income (in thousands):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="74%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Years ended December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2010</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Federal tax (benefit) expense computed at statutory rate</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(7,108</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,956</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4,113</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">State tax (benefit) expense, net of federal tax</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,391</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,502</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">416</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Valuation allowance, net</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">89</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(5,018</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">23</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Permanent differences and other, net</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,927</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">236</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">551</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Change in tax rate</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,599</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">12</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Change to uncertain tax positions, net</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(151</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4,166</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(869</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Foreign rate differential</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">174</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(418</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,003</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Income tax (benefit) expense</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(10,314</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">825</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3,243</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">Significant components of the Company&#x2019;s net deferred tax liability, which includes the retroactive adjustment as of December&#xA0;31, 2012, discussed in Notes 2 and 5, are as follows (in thousands):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="78%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Deferred tax assets:</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Current deferred tax assets:</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Reserve on assets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">525</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">679</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Liabilities not yet deductible</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">9,502</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">10,095</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Deferred revenue</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">326</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">430</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Depreciation</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">84</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">207</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">146</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">10,583</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">11,411</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Valuation allowance</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(3</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(45</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Net current deferred tax assets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">10,580</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">11,366</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Non-current deferred tax assets:</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Net operating loss and credit carryforwards</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6,257</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,918</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Liabilities not yet deductible</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">9,991</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">12,806</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Deferred revenue</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">471</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">737</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Stock-based compensation</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,606</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">9,641</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Deferred financing costs</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,273</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,018</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3,657</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,410</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">24,255</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">28,530</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Valuation allowance</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,007</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,037</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Net non-current deferred tax assets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">23,248</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">27,493</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 7em"><font style="FONT-FAMILY: ARIAL" size="2">Total net deferred tax assets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">33,828</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">38,859</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Deferred tax liabilities:</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Intangible assets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(163,316</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(158,426</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Depreciation</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(14,313</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(17,814</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 5em"><font style="FONT-FAMILY: ARIAL" size="2">Total deferred tax liabilities</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(177,629</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(176,240</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Net deferred tax liability</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(143,801</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(137,381</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">During 2012, the overall deferred tax liability has decreased, mostly due to the book to tax difference in the treatment of amortization of intangible assets, stock-based compensation and use of net operating losses and credits.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">At December&#xA0;31, 2012, the Company had a deferred tax asset of $1.9&#xA0;million, representing the tax effect of net operating losses and tax credit carry-forwards. The components of this deferred tax asset are $0.5 million related to net operating losses in a number of states which have expiration dates through 2031 and $1.4 million of foreign net operating losses that will begin to expire in 2031 or can be carried forward indefinitely.</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Company has recorded valuation allowances on certain foreign net operating losses where it has not had a history of profitability.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Company does not provide for U.S. income taxes on the portion of undistributed earnings of foreign subsidiaries that is intended to be permanently reinvested. These earnings may become taxable in the United States upon the sale or liquidation of these foreign subsidiaries or upon the remittance of dividends. At this time, it is not practicable to estimate the amount of deferred tax liability on such earnings.</font></p> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b><i>Uncertain Tax Positions</i></b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">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.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="74%"></td> <td valign="bottom" width="9%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="9%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Years&#xA0;ended&#xA0;December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;2011&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;2012&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Beginning balance</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4,420</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">7,933</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Additions for tax positions of prior years</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4,392</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">474</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Additions for tax positions of current year</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">557</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">879</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Settlements</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,436</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(474</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Reductions for tax positions of prior years</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(845</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Lapses of statutes of limitations</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(778</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Effect of foreign currency adjustments</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">223</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Ending balance</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">7,933</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">7,412</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. The Company&#x2019;s current provision for income tax expense for the years ended December&#xA0;31, 2010, 2011, and 2012 included $0.4 million, $0.8 million and $0.3 million, respectively, of interest and penalties related to tax positions of the Company. The liability for total interest and penalties at December&#xA0;31, 2011 and 2012 was $3.1 million and $2.6 million, respectively, and is included in other long-term liabilities. During the fourth quarter of 2012, the Company partially reduced its reserve for uncertain tax positions due to the lapse in the statute of limitations for prior tax filings. Additionally, the Company received correspondence from a government representative of a foreign jurisdiction which accepted certain tax positions which had been taken in previous filings, thereby indicating that no change to the tax filings would be required; as a result, the uncertain tax benefit related to this matter was reduced in the fourth quarter.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The total amount of unrecognized tax benefits that if recognized would affect the Company&#x2019;s effective tax rate is $6.6&#xA0;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 $0.5 million to $5.6 million.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">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&#x2019;s filings for 2009 through 2012 are subject to audit based upon the Federal statute of limitations.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">State income tax returns are generally subject to examination for a period of&#xA0;three to five&#xA0;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 2012. As of December&#xA0;31, 2012, there were not any state income tax audits in process.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Company is also subject to corporate income tax at its subsidiaries located in the United&#xA0;Kingdom, the Netherlands, India, Canada, Ireland, and Puerto Rico. The tax returns for the Company&#x2019;s subsidiaries located in foreign jurisdictions are subject to examination for periods ranging from one to seven years.</font></p> </div> 3 <div> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">(Loss) income before income taxes consists of the following (in thousands):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="74%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Years ended December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2010</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">United States</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(19,321</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3,973</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6,882</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Foreign</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(987</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,614</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4,870</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Total</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(20,308</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">5,587</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">11,752</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> <div> <p style="margin-top:6px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2">Long-term debt consists of the following (in thousands):</font></p> <p style="font-size:12px;margin-top:0px;margin-bottom:0px"> &#xA0;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style="BORDER-COLLAPSE:COLLAPSE" align="center"> <tr> <td width="80%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="6" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Tranche B term loans</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">350,946</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">346,111</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Series C new term loans</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">-</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">84,363</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Senior subordinated notes</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">300,000</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">300,000</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Senior notes</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">174,055</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">197,810</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Original issue discount</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">(10,656</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">(8,012</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">)&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Deferred financing costs</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">(15,088</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">(13,629</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="font-size:1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Total debt</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">799,257</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">906,643</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Less current maturities</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">4,814</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">2,036</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="font-size:1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Long-term debt</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">794,443</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">904,607</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="font-size:1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:3px double #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:3px double #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="border-top:3px double #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:3px double #000000">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> <div> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b>10.&#xA0;&#xA0;&#xA0;&#xA0;REDEEMABLE NONCONTROLLING INTEREST</b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">In July 2011 the Company acquired a 63% ownership interest of a company in the Netherlands, and in November 2012, acquired a further 18.5% ownership interest, for an aggregate ownership of 81.5% as of December&#xA0;31, 2012. See Note 2, &#x201C;Acquisitions&#x201D;, for additional information regarding the 2011 acquisition.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The company&#x2019;s operating results are included in the Company&#x2019;s consolidated results of operations from the date of acquisition and the minority ownership interest retained by the previous owners is presented as redeemable noncontrolling interest on the Company&#x2019;s consolidated balance sheets.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The redeemable noncontrolling interest was measured at fair value at the date of acquisition and is reviewed at each subsequent reporting period and adjusted, as needed, to reflect its then redemption value. No adjustments have been recorded to date. The redeemable noncontrolling interest of 63% was recorded at a fair value of $17.1 million at the date of acquisition, which was determined based upon standard valuation techniques using unobservable inputs of discounted cash flow analysis and an industry peer comparable analysis.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The acquisition of the additional 18.5% by the Company in exchange for $3.9 million on November&#xA0;23, 2012 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.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The following is a reconciliation of the changes in the redeemable noncontrolling interest for the years ended December&#xA0;31, 2011 and 2012 (in thousands):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="74%"></td> <td valign="bottom" width="7%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="7%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Years&#xA0;ended&#xA0;December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;2011&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;2012&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Balance at beginning of the period</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">15,527</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Fair value at acquisition</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">17,063</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Sale of 18.5% of interest to BHFS</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(7,994</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Net income attributable to noncontrolling interest</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">347</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Effect of foreign currency translation</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,539</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">246</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Balance at end of period</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">15,527</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">8,126</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> P6Y P6Y9M18D <div> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The following pro forma summary presents consolidated information as if the business combinations had occurred on January&#xA0;1, 2010 (in thousands):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="76%"></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>&#xA0;&#xA0;&#xA0;&#xA0;Pro&#xA0;forma&#xA0;(Unaudited)&#xA0;&#xA0;&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Years&#xA0;ended&#xA0;December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;2010&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;2011&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Revenue</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">919,581</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">992,247</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Net (loss) income attributable to Bright Horizons Family Solutions Inc.</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(9,136</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">7,115</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="76%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Pro&#xA0;forma&#xA0;(Unaudited)</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Years&#xA0;ended&#xA0;December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Revenue</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,016,125</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,088,378</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Net income attributable to Bright Horizons Family Solutions Inc.</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4,804</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">10,329</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> </table> </div> <div> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2"><b>Leases and Accrued Rent</b>&#x2014;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 accrued rent.</font></p> </div> <div> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b>Organization</b>&#x2014;Bright Horizons Family Solutions Inc. (&#x201C;Bright Horizons&#x201D; or the &#x201C;Company&#x201D;) provides workplace services for employers and families throughout the United States, Puerto Rico, Canada, the United Kingdom, 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 management, and other family support services.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Company operates its child care and early education centers under various types of arrangements, which generally can be classified into two categories: (i)&#xA0;the management or cost plus (&#x201C;Cost Plus&#x201D;) model, where Bright Horizons manages a work-site child care and early education center under a cost-plus arrangement with an employer sponsor, and (ii)&#xA0;the profit and loss (P&amp;L) model, where the Company assumes the financial risk of the child care and early education center&#x2019;s operations. The P&amp;L model may be operated under either (a)&#xA0;the sponsor model, where Bright Horizons provides child care and early educational services on a priority enrollment basis for employees of an employer sponsor, or (b)&#xA0;the lease/consortium model, where the Company provides priority child care and early education to the employees of multiple employers located within a real estate developer&#x2019;s property or the community at large. 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.</font></p> </div> <div> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b>15.&#xA0;&#xA0;&#xA0;&#xA0;EMPLOYEE BENEFIT PLANS</b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Company maintains a 401(k)&#xA0;Retirement Savings Plan (the &#x201C;401(k) Plan&#x201D;) for all eligible employees. To be eligible for the 401(k) Plan, an employee must be at least 20.5&#xA0;years of age and have completed their eligibility period of 60&#xA0;days and 160&#xA0;hours of service from date of hire. If they do not meet the 160&#xA0;hours of service requirement, they may be eligible at 12&#xA0;months provided they have reached 1,000&#xA0;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&#x2019;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 $1.8&#xA0;million for each of the years ended December&#xA0;31, 2010 and 2011, and totaled $2.0 million for the year ended December&#xA0;31, 2012.</font></p> </div> <div> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b>13.&#xA0;&#xA0;&#xA0;&#xA0;EARNINGS PER SHARE</b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">As the Company has both Class L and Class&#xA0;A common stock outstanding and the Class L common stock has a preference with respect to all liquidation distributions, net (loss) earnings per share is calculated using the two-class method, which requires the allocation of earnings to each class of common stock.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The numerator in calculating Class L basic and diluted earnings per share is the Class L preference amount accrued during the year presented plus, if positive, a pro rata share of an amount equal to consolidated net income less the Class L preference amount.</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The numerator in calculating Class&#xA0;A basic and diluted earnings per share is an amount equal to consolidated net income less the Class L preference amount and Class L pro rata share amount, if any.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The weighted average number of common shares in the common diluted earnings per share calculation excludes all Class L shares and stock options outstanding during the respective periods, as they would not be dilutive. The weighted average number of Class L shares in the earnings per share calculation excludes all Class L stock options outstanding during the respective periods as they would not be dilutive. The computation of basic and diluted earnings per common share is as follows (in thousands, except share and per share amounts):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="67%"></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Years ended December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2010</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2"><b>Net (loss) income&#x2014;basic and diluted</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(9,994</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4,759</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">8,162</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Accretion of Class L preference</font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">64,712</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">71,568</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">79,211</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Accretion of Class L preference for vested options</font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,251</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,274</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">5,436</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Net (loss) available to common shareholders</font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(75,957</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(68,083</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(76,485</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td height="8"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2"><b>Allocation of net (loss) income to common stockholders&#x2014;basic and diluted:</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Class L</font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">64,712</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">71,568</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">79,211</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Class&#xA0;A</font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(75,957</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(68,083</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(76,485</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr> <td height="8"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2"><b>Weighted average number of common shares&#x2014;basic and diluted:</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Class L</font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,315,153</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,317,273</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,326,206</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Class&#xA0;A</font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6,006,960</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6,016,733</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6,058,512</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td height="8"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> <td height="8" colspan="4"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2"><b>Earnings (loss) per common share&#x2014;basic and diluted:</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Class L</font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">49.21</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">54.33</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">59.73</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Class&#xA0;A</font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(12.64</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(11.32</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(12.62</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> </table> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">As of December&#xA0;31, 2010, 2011, and 2012, there were options outstanding to purchase Class&#xA0;A common stock of 0.7&#xA0;million shares, 0.8&#xA0;million shares and 0.6&#xA0;million shares that may be dilutive in the future. As of December&#xA0;31, 2010, 2011 and 2012, there were options outstanding to purchase 23,719 shares, 23,191 shares and 126,658 shares of Class L common stock that may be dilutive in the future.</font></p> </div> <div> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2"><b>Concentrations of Credit Risk</b>&#x2014;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&#x2019;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&#x2019;s net revenue or accounts receivable. The Company believes that no significant credit risk exists at December&#xA0;31, 2011 and 2012.</font></p> </div> <div> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b>12.&#xA0;&#xA0;&#xA0;&#xA0;STOCKHOLDERS&#x2019; EQUITY AND STOCK-BASED COMPENSATION</b></font></p> <p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b><i>Equity Incentive Plan</i></b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Company has an incentive compensation plan (the &#x201C;Plan&#x201D;) under which it was authorized to grant options to acquire 0.8&#xA0;million shares of Class&#xA0;A common stock to employees and directors, as well as to consultants and advisors to the Company. On March&#xA0;9, 2012 the stockholders of the Company voted to increase the number of shares available to be issued in respect of awards granted under the Plan to 150,000 shares of Class L common stock and 1.5&#xA0;million shares of Class&#xA0;A common stock.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">Stock options granted under the Plan are subject to either a service condition or a service condition and a performance condition, and expire at the earlier of ten years from date of grant or termination of the holder&#x2019;s employment with the Company, unless such termination was due to death, disability or retirement, unless otherwise determined by the Administrator of the Plan. The majority of the options have a requisite service period of five years, with 40% of the options vesting on the second anniversary of the date of grant and 20% vesting on each of the third, fourth and fifth anniversaries. Certain options have a requisite service period of three to four years, with 33% of the options vesting on the first or second anniversary of the date of grant and 33% vesting on each of the following anniversaries until fully vested. The performance based options additionally require the occurrence of a Change in Control, as defined in the Plan, or the closing of an initial public offering. For stock options granted with a service condition only, stock-compensation expense is recognized on a straight-line basis over the requisite service period of each separately vesting tranche. For stock options granted with a service and performance condition, stock-compensation expense will be recognized upon the Change in Control, as defined in the Plan, or the closing of an initial public offering, to the extent that the requisite service period is already fulfilled.</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">On March&#xA0;9, 2012, the Board of Directors approved the exchange of existing stock options to acquire Class&#xA0;A common stock for options to acquire a combination of shares of Class&#xA0;A and Class L common stock (the &#x201C;stock option exchange&#x201D;). Options to purchase a total of 711,389 shares of Class&#xA0;A common stock were exchanged as of May&#xA0;2, 2012 for options to acquire 90,630 shares of Class L common stock and 413,953 shares of Class&#xA0;A common stock, based on an exchange ratio of options to purchase approximately 7.9 shares of Class&#xA0;A common stock for a new option to purchase one share of Class L common stock and 4.6 shares of Class&#xA0;A common stock. The exercise price for each new award was $511.51 per share of Class L common stock and $12.00 per share of Class&#xA0;A common stock. All option holders were subject to the exchange. This transaction was accounted for as a modification. The Company expects to incur total incremental stock compensation expense of approximately $19.0 million related to the stock option exchange, of which approximately $13.4 million was recognized in the year ended December&#xA0;31, 2012 related to the requisite service period already fulfilled. The remaining incremental expense for stock options granted with a service condition will be recognized on a straight-line basis over the remaining requisite service period of each separately vesting tranche of approximately 2 years. The incremental expense for stock options granted with a service condition and a performance condition of approximately $5.0 million will be recognized upon the closing of the initial public offering in January 2013, related to the requisite service period already fulfilled.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">As of December&#xA0;31, 2012, there were approximately 27,923 shares of Class L common stock and 896,523 shares of Class&#xA0;A common stock available for grant.</font></p> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b><i>Treasury Stock</i></b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">During the years ended December&#xA0;31, 2010 and 2012, the Company repurchased a total of 1,123&#xA0;shares and 41,454 shares of Class&#xA0;A common stock, respectively. There were no stock repurchases during the year ended December&#xA0;31, 2011. The Company accounts for treasury stock under the cost method. On September&#xA0;21, 2012, the Company retired all of its treasury stock, resulting in a $0.6 million reduction in common treasury stock and additional paid-in capital.</font></p> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b><i>Common Stock</i></b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Company&#x2019;s charter authorizes the issuance of two classes of common stock, Class&#xA0;L and Class A. The rights of the holders of Class L and Class&#xA0;A shares are identical, except with respect to priority in the event of a liquidation distribution, as defined in the Company&#x2019;s charter. The Class&#xA0;L common stock is entitled to a preference with respect to all liquidation distributions by the Company until the holders of Class&#xA0;L common stock have received an amount equal to the Class&#xA0;L base amount of $405 per share. Thereafter, the Class&#xA0;L shares and the Class&#xA0;A shares will receive any liquidation distributions made by the Company pro rata based on the number of outstanding Class&#xA0;A shares (treating each Class L share as one outstanding Class&#xA0;A share, subject to appropriate adjustment in the event of any stock split, stock dividend or similar event affecting the Class&#xA0;A shares). In the event of a change of control or an initial public offering of the Company, each outstanding share of Class&#xA0;L common stock is convertible into a number of shares of Class&#xA0;A common stock equal to one (subject to appropriate adjustment in the event of any stock split, stock dividend or similar event affecting the Class&#xA0;A shares) plus a number of additional shares of Class&#xA0;A common stock determined by dividing the accreted preference (which is equal to the Class L base amount of $405 per share plus an amount sufficient to generate an internal rate of return of 10%&#xA0;per annum on the Class&#xA0;L base amount) by the applicable per share price (as defined in the Company&#x2019;s charter). Class L common stock is classified outside of permanent equity in the consolidated balance sheets at its preferential distribution amount, as the timing of the distribution event is outside of the control of the Company. The Class L preferred return of 10%&#xA0;per annum, compounded quarterly, is added to the Class L preferential distribution amount each period and recorded as an increase to accumulated deficit.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">Repurchases of Class L common stock are recorded under the cost method as reductions to Class L common stock. During the years ended December&#xA0;31, 2010 and 2012, respectively, the Company repurchased a total of 246 shares and 9,076 shares, respectively, of Class L common stock. There were no stock repurchases during the year ended December&#xA0;31, 2011. All shares of Class L common stock repurchased were retired in 2012.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The following table reflects the changes in Class L common stock for the years ended December&#xA0;31, 2010, 2011, and 2012 (in thousands, except share data):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="66%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Shares<br /> Issued</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Shares<br /> Outstanding</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Amount</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Class L common stock, balance at December&#xA0;31, 2009</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,316,146</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,315,003</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">633,452</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Issuance of Class L common stock</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,296</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,296</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">208</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Repurchase of Class L common stock</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(246</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(89</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Accretion of Class L preferred return</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">65,962</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Class L common stock, balance at December&#xA0;31, 2010</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,318,442</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,317,053</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">699,533</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Issuance of Class L common stock</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">528</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">528</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">47</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Accretion of Class L preferred return</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">72,842</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Class L common stock, balance at December&#xA0;31, 2011</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,318,970</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,317,581</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">772,422</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Issuance of Class L common stock</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">18,610</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">18,610</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,675</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Repurchase of Class L common stock</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(9,076</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(4,643</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Retirement of treasury stock</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(10,465</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Accretion of Class L preferred return</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">84,647</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Class L common stock, balance at December&#xA0;31, 2012</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,327,115</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,327,115</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">854,101</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b>Stock-Based Compensation</b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Company recognized the impact of stock-based compensation in its consolidated statements of operations for the years ended December&#xA0;31, 2010, 2011, and 2012 and did not capitalize any amounts on the consolidated balance sheets. In the years ended December&#xA0;31, 2010, 2011, and 2012, the Company recorded stock compensation expense of $2.4 million, $1.2&#xA0;million, and $17.6 million, respectively, in selling, general and administrative expenses in the consolidated statements of operations, which generated an income tax benefit of $0.9 million, $0.5 million and $7.1 million, respectively. The stock compensation expense for the year ended December&#xA0;31,&#xA0;2012 includes $13.4&#xA0;million related to the stock option exchange, $3.5&#xA0;million related primarily to the vested portion of option awards granted during the period, with the remaining $0.7 million related to option awards granted in prior years.</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">There were no share-based liabilities paid during the period.</font></p> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b><i>Stock Options</i></b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">In conjunction with the Merger, various members of management rolled over certain vested and unexercised options in the Predecessor as investments in the Company; these rolled over options were substituted for continuation options to acquire a combination of shares in the Company in a ratio of 4.6 shares of Class&#xA0;A common stock for every one share of Class L common stock. A total of 472,709 pre-Merger options were rolled over, and substituted for 26,777 options to acquire an aggregate of 26,777 shares of Class&#xA0;L common stock and 122,303 shares of Class&#xA0;A common stock.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">These continuation options had been fully expensed by the Predecessor as of the date of the Merger, and, therefore, there is no expense for these options in the accompanying consolidated statements of operations.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">On January&#xA0;11, 2013, the options to purchase shares of Class L common stock were converted into options to purchase common stock based on a conversion factor of 35.1955 and a corresponding adjustment to the exercise price.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The following table reflects stock option activity for the continuation options for the year ended December&#xA0;31, 2012:</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="44%"></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Weighted<br /> Average<br /> Remaining<br /> Contractual<br /> Life&#xA0;in&#xA0;Years</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Number&#xA0;of<br /> Options&#xA0;on<br /> Class L<br /> Shares</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Class L<br /> Weighted<br /> Average<br /> Exercise<br /> Price</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Number&#xA0;of<br /> Options&#xA0;on<br /> Class A<br /> Shares</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Class A<br /> Weighted<br /> Average<br /> Exercise<br /> Price</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Outstanding at January&#xA0;1, 2012</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">0.9</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">23,191</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">90.00</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">105,925</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4.93</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Exercised</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(18,610</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">90.00</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(85,001</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4.93</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Outstanding and Exercisable at December&#xA0;31, 2012</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">0.5</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4,581</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">90.00</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">20,924</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4.93</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The aggregate intrinsic value (pre-tax) was $3.1&#xA0;million for the Company&#x2019;s outstanding and exercisable continuation options on Class L shares at December&#xA0;31, 2012 based on the fair value of the continuation options Class L shares of $774.30. The aggregate intrinsic value (pre-tax) was $0.4&#xA0;million for the Company&#x2019;s outstanding and exercisable continuation options on Class&#xA0;A shares at December&#xA0;31, 2012 based on the fair value of the continuation options Class&#xA0;A shares of $22.00 at December&#xA0;31, 2012. The aggregate intrinsic value represents the net amount that would have been received by the option holders had they exercised all of their outstanding options and those which were fully vested on that date.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The total aggregate intrinsic value of exercised continuation options was $0.8 million, $0.2 million and $8.4 million for the years ended December&#xA0;31, 2010, 2011 and 2012, respectively, based on the fair value of Class L common shares of $404.37, $472.70 and $511.51, respectively, and based on the fair value of Class&#xA0;A common shares of $9.99, $17.77, and $12.00, respectively.</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The fair value of each stock option of Class&#xA0;A and Class L shares granted was estimated on the date of grant using the Black-Scholes option pricing model using the following weighted average assumptions:</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="69%"></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="14" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Years ended December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2010</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Class&#xA0;A<br /> Shares</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Class A<br /> Shares</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Class L<br /> Shares</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Class&#xA0;A<br /> Shares</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Expected dividend yield</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">0.0</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">0.0</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">0.0</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">0.0</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">%&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Expected stock price volatility</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">82.0</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">82.0</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">79.2</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">79.2</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">%&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Risk free interest rate</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1.4</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1.2</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">0.68</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">0.68</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">%&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Expected life of options (years)</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3.69</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3.47</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4.16</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4.16</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Weighted average fair value per share of options granted during the period</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4.34</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">10.40</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">291.83</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6.84</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> </table> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The expected stock price volatility is based upon the historical volatility of the Predecessor&#x2019;s stock price over the expected life of the options, as well as the historical volatility of the stock price over the expected life of the options of similar companies that are publicly traded.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The table below reflects stock option activity under the Company&#x2019;s equity plan for the year ended December&#xA0;31, 2012.</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="51%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> </tr> <tr> <td valign="bottom" rowspan="3"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" rowspan="3" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Weighted<br /> Average<br /> Remaining<br /> Contractual<br /> Life in<br /> Years</b></font></td> <td valign="bottom" rowspan="3"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" rowspan="2" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Class L Shares</b></font></td> <td valign="bottom" rowspan="2"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" rowspan="2" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Class A Shares</b></font></td> <td valign="bottom" rowspan="2"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Number<br /> of<br /> Options</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Weighted<br /> Average<br /> Exercise<br /> Price</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Number<br /> of<br /> Options</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Weighted<br /> Average<br /> Exercise<br /> Price</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Outstanding at January&#xA0;1, 2012</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">7.0</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">715,321</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">19.76</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Exercised</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,065</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">19.70</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Forfeited</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(2,867</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">19.70</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Cancellations(1)</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(711,389</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">19.76</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Option exchange(1)</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">90,630</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">511.51</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">413,953</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">12.00</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Granted</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">32,556</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">511.51</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">148,699</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">12.00</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Forfeited or expired</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,109</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">511.51</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(5,188</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">12.00</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Outstanding at December&#xA0;31, 2012</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6.8</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">122,077</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">511.51</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">557,464</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">12.00</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Exercisable at December&#xA0;31, 2012</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6.0</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">40,704</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">511.51</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">185,915</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">12.00</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Vested and expected to vest at December&#xA0;31, 2012</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6.8</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">116,834</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">511.51</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">533,641</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">12.00</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="BORDER-BOTTOM: #000000 0.5pt solid; LINE-HEIGHT: 8px; MARGIN-TOP: 0px; WIDTH: 10%; MARGIN-BOTTOM: 2px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="5%" align="left"><font style="FONT-FAMILY: ARIAL" size="2">(1)</font></td> <td valign="top" align="left"><font style="FONT-FAMILY: ARIAL" size="2">Represents option exchange consummated on May&#xA0;2, 2012.</font></td> </tr> </table> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">At December&#xA0;31, 2012, the Company&#x2019;s outstanding, exercisable, vested and expected to vest options to purchase Class L shares had an aggregate intrinsic value of $32.1 million, $10.7 million and $30.7 million, respectively.</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">At December&#xA0;31, 2012, the Company&#x2019;s outstanding, exercisable, vested and expected to vest options to purchase Class&#xA0;A shares had an aggregate intrinsic value of $5.6 million, $1.9 million and $5.3 million, respectively.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">Options to purchase Class&#xA0;A shares exercised in 2012 did not have an intrinsic value as the exercise price exceeded their fair value at the date of exercise.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The fair value of pre-tax options that vested during 2012 was $4.2 million for options on Class L common stock and $0.7 million for options on Class&#xA0;A common stock. The fair value (pre-tax) of options that vested during the years ended December&#xA0;31, 2010 and 2011 were $1.4 million and $0.8&#xA0;million, respectively.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">As of December&#xA0;31, 2012, there was $12.2 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 for options with a service condition, and upon a change in control, as defined in the Plan, or the closing of an initial public offering, to the extent that the requisite service period is already fulfilled for options with a service and performance condition. The weighted average remaining requisite service period was approximately two years at December&#xA0;31, 2012.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">Cash received by the Company from the exercise of stock options for the years ended December&#xA0;31, 2010, 2011 and 2012 was $0.3 million, $0.1 million and $2.1 million, respectively. The actual tax benefits realized for the tax deductions from option exercises were $0.3 million, $0.1 million and $3.4 million in the years ended December&#xA0;31, 2010, 2011, and 2012, respectively. The Company realizes a tax deduction upon the exercise of non-qualified stock options due to the recognition of compensation expense in the calculation of its taxable income. The amount of the compensation recognized for tax purposes is based on the difference between the market value of the common stock and the option price at the date the options are exercised. Tax benefits related to the exercise of the continuation options were credited to goodwill as they had been previously expensed by the Predecessor.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">Options to purchase 31,628 shares Class L common stock and 144,461 shares of Class&#xA0;A common stock vested upon the effectiveness of the Offering on January&#xA0;24, 2013, which resulted in a compensation charge in the amount of $5.0 million.</font></p> </div> <div> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b>17.&#xA0;&#xA0;&#xA0;&#xA0;TRANSACTIONS WITH RELATED PARTIES</b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Company has a management agreement with a significant stockholder. The management agreement has a ten year term which commenced May&#xA0;28, 2008. Fees of $2.5 million per year have been paid to the significant stockholder in each of the years ended December&#xA0;31, 2010, 2011 and 2012. These fees are included in selling, general and administrative expenses in the consolidated statements of operations.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">In connection with the Offering, the Company and its significant stockholder agreed to terminate the management agreement, which resulted in a payment of $7.5 million by the Company to the Sponsor in 2013.</font></p> </div> <div> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The following is a reconciliation of the U.S. Federal statutory rate to the effective rate on pretax (loss) income (in thousands):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="74%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Years ended December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2010</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Federal tax (benefit) expense computed at statutory rate</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(7,108</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,956</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4,113</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">State tax (benefit) expense, net of federal tax</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,391</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,502</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">416</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Valuation allowance, net</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">89</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(5,018</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">23</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Permanent differences and other, net</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,927</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">236</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">551</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Change in tax rate</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,599</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">12</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Change to uncertain tax positions, net</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(151</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4,166</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(869</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Foreign rate differential</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">174</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(418</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,003</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Income tax (benefit) expense</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(10,314</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">825</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3,243</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> <div> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">Other long-term liabilities consist of the following (in thousands):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="82%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Customer amounts on deposit</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">7,492</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">8,481</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Liability for uncertain tax positions</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">11,050</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">9,966</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Other miscellaneous liabilities</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3,984</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">5,270</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">22,526</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">23,717</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> <div> <p style="margin-top:6px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2">Prepaid expenses and other current assets consist of the following (in thousands):</font></p> <p style="font-size:12px;margin-top:0px;margin-bottom:0px"> &#xA0;</p> <table cellspacing="0" cellpadding="0" width="100%" border="0" style="BORDER-COLLAPSE:COLLAPSE" align="center"> <tr> <td width="82%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="6" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom" colspan="2" align="center" style="border-bottom:1px solid #000000"><font style="font-family:ARIAL" size="1"><b>2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Prepaid workers compensation insurance</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">9,048</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">9,160</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Prepaid rent and other occupancy costs</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">5,947</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">6,354</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Prepaid income taxes</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">2,087</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">213</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Reimbursable costs</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">714</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">4,060</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Favorable leases</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">462</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">386</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Prepaid insurance</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">1,111</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">1,341</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Deferred initial public offering costs</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">-</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">2,189</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Other prepaid expenses and current assets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">3,203</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">4,124</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="font-size:1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">22,572</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">27,827</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="font-size:1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:3px double #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:3px double #000000">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:3px double #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:3px double #000000">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> <div> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">Significant components of the Company&#x2019;s net deferred tax liability, which includes the retroactive adjustment as of December&#xA0;31, 2012, discussed in Notes 2 and 5, are as follows (in thousands):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="78%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Deferred tax assets:</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Current deferred tax assets:</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Reserve on assets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">525</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">679</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Liabilities not yet deductible</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">9,502</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">10,095</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Deferred revenue</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">326</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">430</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Depreciation</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">84</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">207</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">146</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">10,583</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">11,411</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Valuation allowance</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(3</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(45</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Net current deferred tax assets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">10,580</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">11,366</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Non-current deferred tax assets:</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Net operating loss and credit carryforwards</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6,257</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,918</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Liabilities not yet deductible</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">9,991</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">12,806</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Deferred revenue</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">471</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">737</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Stock-based compensation</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,606</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">9,641</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Deferred financing costs</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,273</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,018</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3,657</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,410</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">24,255</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">28,530</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Valuation allowance</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,007</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,037</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Net non-current deferred tax assets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">23,248</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">27,493</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 7em"><font style="FONT-FAMILY: ARIAL" size="2">Total net deferred tax assets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">33,828</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">38,859</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Deferred tax liabilities:</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Intangible assets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(163,316</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(158,426</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Depreciation</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(14,313</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(17,814</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 5em"><font style="FONT-FAMILY: ARIAL" size="2">Total deferred tax liabilities</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(177,629</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(176,240</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Net deferred tax liability</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(143,801</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(137,381</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> <div> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2"><b>Foreign Operations</b>&#x2014;The functional currency of the Company&#x2019;s foreign subsidiaries is their local currency. The assets and liabilities of the Company&#x2019;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&#x2019; equity.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The Company&#x2019;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&#x2019; equity, while gains and losses resulting from the remeasurement of intercompany receivables from those foreign subsidiaries for which the Company anticipates settlement in the foreseeable future are recorded in the consolidated statement of operations. The net gains and losses recorded in the consolidated statements of operations for the years ended December&#xA0;31, 2010 and 2012 were not significant. The Company recorded a net foreign currency gain of $0.8 million in the consolidated statement of operations for the year ended December&#xA0;31, 2011 as a result of the settlement of an intercompany note during the year. There were no settlements of intercompany notes during the year ended December&#xA0;31, 2012.</font></p> </div> <div> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2"><b>Use of Estimates</b>&#x2014;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&#x2019;s significant accounting policies in the preparation of the consolidated financial statements relate to revenue recognition, goodwill and other intangibles, income taxes and common stock valuation and stock-based compensation. Actual results may differ from management&#x2019;s estimates.</font></p> </div> <div> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2"><b>Earnings (Loss) Per Share</b>&#x2014;Net earnings (loss) per share is calculated using the two-class method, which is an earnings allocation formula that determines net income (loss) per share for the holders of the Company&#x2019;s Class&#xA0;L and Class&#xA0;A shares. The Class L shares contain participation rights in any dividend paid by the Company or upon liquidation of the Company. Net income available to Class&#xA0;A common shareholders includes the effects of any Class L preference amounts. 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 (loss) per share is calculated using the treasury stock method for all outstanding stock options and the as-converted method for the Class L shares.</font></p> </div> <div> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The fair value of each stock option of Class&#xA0;A and Class L shares granted was estimated on the date of grant using the Black-Scholes option pricing model using the following weighted average assumptions:</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="69%"></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="14" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Years ended December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2010</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Class&#xA0;A<br /> Shares</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Class A<br /> Shares</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Class L<br /> Shares</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Class&#xA0;A<br /> Shares</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Expected dividend yield</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">0.0</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">0.0</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">0.0</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">0.0</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">%&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Expected stock price volatility</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">82.0</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">82.0</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">79.2</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">79.2</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">%&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Risk free interest rate</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1.4</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1.2</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">0.68</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">%&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">0.68</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">%&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Expected life of options (years)</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3.69</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3.47</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4.16</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4.16</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Weighted average fair value per share of options granted during the period</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4.34</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">10.40</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">291.83</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6.84</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> </table> </div> <div> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2"><b>Deferred Revenue</b>&#x2014;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 the current operating cycle. In these circumstances, the Company records a long-term obligation and recognizes revenue over the period of the agreement as the services are rendered.</font></p> </div> <div> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">Income tax (benefit) expense consists of the following (in thousands):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="73%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="10" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Years ended December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2010</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Current tax (benefit) expense</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Federal</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,068</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(2,063</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">8,102</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">State</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,277</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,517</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,361</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Foreign</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">231</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">7,120</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4,434</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3,576</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6,574</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">14,897</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Deferred tax (benefit) expense</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Federal</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(11,213</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,292</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(9,048</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">State</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(2,419</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">523</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,453</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Foreign</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(258</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(4,980</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,153</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(13,890</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(5,749</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(11,654</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Income tax (benefit) expense</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(10,314</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">825</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3,243</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> <div> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2"><b>Income Taxes</b>&#x2014;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.</font></p> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2">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.</font></p> </div> <div> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b>3.&#xA0;&#xA0;&#xA0;&#xA0;PREPAID EXPENSES AND OTHER CURRENT ASSETS</b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">Prepaid expenses and other current assets consist of the following (in thousands):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="82%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Prepaid workers compensation insurance</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">9,048</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">9,160</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Prepaid rent and other occupancy costs</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">5,947</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6,354</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Prepaid income taxes</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,087</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">213</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Reimbursable costs</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">714</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4,060</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Favorable leases</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">462</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">386</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Prepaid insurance</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,111</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,341</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Deferred initial public offering costs</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,189</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Other prepaid expenses and current assets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3,203</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4,124</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">22,572</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">27,827</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">Under the terms of the Company&#x2019;s workers compensation policy, the Company is required to make advances to its insurance carrier pertaining to anticipated claims for all open plan years.</font></p> </div> <div> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b>8.&#xA0;&#xA0;&#xA0;&#xA0;OTHER LONG-TERM LIABILITIES</b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">Other long-term liabilities consist of the following (in thousands):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="82%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>December&#xA0;31,</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Customer amounts on deposit</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">7,492</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">8,481</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Liability for uncertain tax positions</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">11,050</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">9,966</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Other miscellaneous liabilities</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3,984</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">5,270</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">22,526</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">23,717</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> 474000 1070938000 4110000 879000 -71140000 245770000 14100000 -437000 -76485000 111825000 4870000 -67000 5472000 6882000 -7994000 440000 12823000 2700000 152000 8509000 2180000 6051000 13507000 95464000 319000 51974000 11752000 5591000 2506000 1580000 8162000 17596000 7100000 5140000 874000 3400000 69086000 223000 347000 1155000 2500000 2115000 49573000 593000 845000 6783000 77205000 23754000 23000 621000 -12045000 21000 497000 -1694000 246000 400000 84647000 17596000 2928000 -734000 3661000 2361000 2000000 83864000 416000 4113000 6273000 -9048000 825168000 -180890000 -22000 2512000 694000 -1153000 61348000 -218000 300000 3700000 -869000 82321000 3381000 474000 26933000 14897000 4434000 34400000 17600000 -1453000 -1003000 62800000 300000 2100000 778000 8102000 3100000 12000 551000 123373000 3243000 364000 20.5 <div> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2"><b>Noncontrolling Interest</b>&#x2014;The Company recorded the redeemable noncontrolling interest from its initial acquisition of a 63% ownership interest of a company in the Netherlands at fair value at the date of acquisition. The difference between the acquisition price and carrying value of the redeemable non-controlling interest of any additional interest acquired is recorded as an adjustment to additional paid in capital. Any accumulated other comprehensive income (loss) associated with the additional acquired interest is recorded as other comprehensive income (loss) of the Company.</font></p> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2">In connection with the initial acquisition, the Company entered into put and call option agreements with the minority shareholders for the purchase of the noncontrolling interest at a future date at a value based on a contractually determined formula. As a result of the option agreements, the noncontrolling interest is considered redeemable and is classified as temporary equity on the Company&#x2019;s consolidated balance sheet.</font></p> <p style="font-size:12px;margin-top:0px;margin-bottom:0px"> &#xA0;</p> <p style="margin-top:0px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2">The noncontrolling interest is reviewed at each subsequent reporting period and adjusted, as needed, to reflect its then redemption value.</font></p> </div> 0.50 P10Y -11654000 <div> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The following tables reflect intangible assets that are subject to amortization (in thousands):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="52%"></td> <td valign="bottom" width="4%"></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Weighted average<br /> amortization&#xA0;period</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Cost</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Accumulated<br /> amortization</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Net&#xA0;carrying<br /> amount</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2"><b>December&#xA0;31, 2011:</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Contractual rights and customer relationships</font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" align="center"><font style="FONT-FAMILY: ARIAL" size="2">15.0&#xA0;years</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">365,194</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(97,232</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">267,962</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Trade names</font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" align="center"><font style="FONT-FAMILY: ARIAL" size="2">8.9 years</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,798</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(516</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,282</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Non-compete agreements</font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" align="center"><font style="FONT-FAMILY: ARIAL" size="2">5 years</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">54</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(29</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">25</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" align="center"><font style="FONT-FAMILY: ARIAL" size="2">2.9 years</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4,200</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(4,200</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">371,246</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(101,977</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">269,269</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="52%"></td> <td valign="bottom" width="4%"></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Weighted average<br /> amortization&#xA0;period</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Cost</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Accumulated<br /> amortization</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Net&#xA0;carrying<br /> amount</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2"><b>December&#xA0;31, 2012:</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Contractual rights and customer relationships</font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" align="center"><font style="FONT-FAMILY: ARIAL" size="2">14.9&#xA0;years</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">370,527</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(124,048</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">246,479</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Trade names</font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" align="center"><font style="FONT-FAMILY: ARIAL" size="2">9.1 years</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3,147</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(883</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,264</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Non-compete agreements</font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" align="center"><font style="FONT-FAMILY: ARIAL" size="2">5 years</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">54</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(33</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">21</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">373,728</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(124,964</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">248,764</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> -246000 <div> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The following table shows the carrying value and the fair value of the Company&#x2019;s long-term debt at December&#xA0;31, 2011 and 2012 (in millions):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="68%"></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>December&#xA0;31,&#xA0;2011</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>December&#xA0;31,&#xA0;2012</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Carrying<br /> Value</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Fair<br /> Value</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Carrying<br /> Value</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Fair<br /> Value</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Long-term debt</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">825</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">898</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">927</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">973</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> </table> </div> <div> <p style="margin-top:12px;margin-bottom:0px; text-indent:5%"> <font style="font-family:ARIAL" size="2"><b>Other Long-Term Liabilities</b>&#x2014;Other long-term liabilities consist primarily of amounts payable to clients, pursuant to terms of operating agreements or for deposits held by the Company, and obligations for uncertain tax positions.</font></p> </div> <div> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The final purchase price for this acquisition has been allocated based on the estimated fair values of the acquired assets and assumed liabilities at the date of acquisition as follows (in thousands):</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="89%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Cash</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,872</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Accounts receivable</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">341</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Prepaids and other current assets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,880</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Fixed assets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">65,843</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Intangible assets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6,004</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Goodwill</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">49,573</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Total assets acquired</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">127,513</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Accounts payable and accrued expenses</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(7,520</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Taxes payable</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(656</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Deferred revenue and parent deposits</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(3,006</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Deferred taxes</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(5,570</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Total liabilities assumed</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(16,752</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Purchase price</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">110,761</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> P1Y 2014-01-01 250000 0.015 169728000 901210000 0.0215 P12M PT1000H 79211000 5436000 P60D PT160H 18642000 1447000 302000 922214000 60154000 25906000 P3Y P1Y 130082000 33863000 725000 P10Y P3Y 2017-05-23 212500 0.005 0.0325 0.020 0.0425 0.010 2014-05-28 P6Y 0.00500 0.00375 0.005 2008-09-30 2015-05-28 912500 100000 0.005 0.030 0.040 P17Y P10Y P4Y P40Y P10Y P7Y P5Y P4Y P3Y P20Y P3Y P1Y P3Y 0.20 0.33 0.40 0.20 0.20 0.33 7500000 -706000 6051000 246000 497000 -622000 8162000 84647000 47808 86066 4868000 440000 17596000 874000 622000 10329000 1088378000 1100000 26300000 500000 P5Y P6M 8400000 90.00 18610 511.51 4.93 85001 12.00 <div> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The table below reflects stock option activity under the Company&#x2019;s equity plan for the year ended December&#xA0;31, 2012.</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="51%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> </tr> <tr> <td valign="bottom" rowspan="3"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" rowspan="3" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Weighted<br /> Average<br /> Remaining<br /> Contractual<br /> Life in<br /> Years</b></font></td> <td valign="bottom" rowspan="3"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" rowspan="2" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Class L Shares</b></font></td> <td valign="bottom" rowspan="2"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" rowspan="2" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Class A Shares</b></font></td> <td valign="bottom" rowspan="2"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Number<br /> of<br /> Options</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Weighted<br /> Average<br /> Exercise<br /> Price</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Number<br /> of<br /> Options</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Weighted<br /> Average<br /> Exercise<br /> Price</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Outstanding at January&#xA0;1, 2012</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">7.0</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">715,321</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">19.76</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Exercised</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,065</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">19.70</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Forfeited</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(2,867</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">19.70</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Cancellations(1)</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">-</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(711,389</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">19.76</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Option exchange(1)</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">90,630</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">511.51</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">413,953</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">12.00</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Granted</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">32,556</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">511.51</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">148,699</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">12.00</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Forfeited or expired</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,109</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">511.51</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(5,188</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">12.00</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Outstanding at December&#xA0;31, 2012</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6.8</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">122,077</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">511.51</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">557,464</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">12.00</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Exercisable at December&#xA0;31, 2012</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6.0</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">40,704</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">511.51</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">185,915</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">12.00</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Vested and expected to vest at December&#xA0;31, 2012</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6.8</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">116,834</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">511.51</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">533,641</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">12.00</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="BORDER-BOTTOM: #000000 0.5pt solid; LINE-HEIGHT: 8px; MARGIN-TOP: 0px; WIDTH: 10%; MARGIN-BOTTOM: 2px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="5%" align="left"><font style="FONT-FAMILY: ARIAL" size="2">(1)</font></td> <td valign="top" align="left"><font style="FONT-FAMILY: ARIAL" size="2">Represents option exchange consummated on May&#xA0;2, 2012.</font></td> </tr> </table> </div> <div> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 5%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: ARIAL" size="2">The following table reflects stock option activity for the continuation options for the year ended December&#xA0;31, 2012:</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="44%"></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td valign="bottom" width="3%"></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Weighted<br /> Average<br /> Remaining<br /> Contractual<br /> Life&#xA0;in&#xA0;Years</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Number&#xA0;of<br /> Options&#xA0;on<br /> Class L<br /> Shares</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Class L<br /> Weighted<br /> Average<br /> Exercise<br /> Price</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Number&#xA0;of<br /> Options&#xA0;on<br /> Class A<br /> Shares</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="1"><b>Class A<br /> Weighted<br /> Average<br /> Exercise<br /> Price</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Outstanding at January&#xA0;1, 2012</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">0.9</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">23,191</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">90.00</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">105,925</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4.93</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 3em"><font style="FONT-FAMILY: ARIAL" size="2">Exercised</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(18,610</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">90.00</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(85,001</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4.93</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: ARIAL" size="2">Outstanding and Exercisable at December&#xA0;31, 2012</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">0.5</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4,581</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">90.00</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">20,924</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4.93</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td 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