0001437578-20-000022 | 10-Q | XBRL Viewer | Bright Horizons Family Solutions INC

Leases - Weighted Average Remaining Lease Term and Discount Rate (Details)	Sep. 30, 2020	Dec. 31, 2019
Leases [Abstract]
Weighted average remaining lease term (in years)	10 years	10 years
Weighted average discount rate (percent)	6.00%	6.20%

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 365,300	$ 27,872
Accounts receivable — net of allowance for credit losses of $3,827 and $1,226 at September 30, 2020 and December 31, 2019, respectively	150,099	148,855
Prepaid expenses and other current assets	85,983	51,865
Prepaid income taxes	14,115	296
Total current assets	615,497	228,888
Fixed assets — net	606,831	636,153
Goodwill	1,409,040	1,412,873
Other intangible assets — net	281,226	304,673
Operating lease right-of-use assets	717,951	700,956
Other assets	42,976	46,877
Total assets	3,673,521	3,330,420
Current liabilities:
Current portion of long-term debt	10,750	10,750
Accounts payable and accrued expenses	178,516	167,059
Current portion of operating lease liabilities	94,431	83,123
Deferred revenue	177,302	191,117
Other current liabilities	43,828	31,241
Total current liabilities	504,827	483,290
Long-term debt — net	1,022,489	1,028,049
Operating lease liabilities	727,716	685,910
Other long-term liabilities	114,778	92,865
Deferred revenue	10,351	10,098
Deferred income taxes	66,247	58,940
Total liabilities	2,446,408	2,359,152
Stockholders’ equity:
Preferred stock, $0.001 par value; 25,000,000 shares authorized and no shares issued or outstanding at September 30, 2020 and December 31, 2019	0	0
Common stock, $0.001 par value; 475,000,000 shares authorized; 60,263,169 and 57,884,020 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively	60	58
Additional paid-in capital	895,966	648,031
Accumulated other comprehensive loss	(66,860)	(50,331)
Retained earnings	397,947	373,510
Total stockholders’ equity	1,227,113	971,268
Total liabilities and stockholders’ equity	$ 3,673,521	$ 3,330,420

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (6,654)	$ 41,254	$ 24,437	$ 132,623
Other comprehensive income (loss):
Foreign currency translation adjustments	24,632	(20,157)	(13,319)	(23,975)
Unrealized gain (loss) on cash flow hedges and investments, net of tax	267	(1,037)	(3,210)	(8,207)
Total other comprehensive income (loss)	24,899	(21,194)	(16,529)	(32,182)
Comprehensive income	$ 18,245	$ 20,060	$ 7,908	$ 100,441

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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+ Details

- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

+ References

+ Details

Fair Value Measurements - Contingent Consideration (Details) - Contingent consideration $ in Thousands	9 Months Ended
	Sep. 30, 2020 USD ($)
Business Combination, Contingent Consideration, Liability [Roll Forward]
Beginning balance	$ 15,987
Settlement of contingent consideration liabilities	(1,088)
Changes in fair value	326
Foreign currency translation	(479)
Ending balance	$ 14,746

Organization and Basis of Presentation

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Organization and Basis of Presentation

ORGANIZATION AND BASIS OF PRESENTATION

Organization — Bright Horizons Family Solutions Inc. (“Bright Horizons” or the “Company”) provides center-based child care and early education, back-up child and adult/elder care, tuition assistance and student loan repayment program administration, educational advisory services, and other support services for employers and families in the United States, the United Kingdom, the Netherlands, Puerto Rico and India. During the three months ended September 30, 2020, the Company divested its child care center business in Canada and ceased to operate its two centers in that geography. The Company provides services designed to help families, employers and their employees better integrate work and family life, primarily under multi-year contracts with employers who offer child care, dependent care, and workforce education services, as part of their employee benefits packages in an effort to support employees across life and career stages and improve employee engagement.

Basis of Presentation — The accompanying unaudited condensed consolidated balance sheet as of September 30, 2020 and the condensed consolidated statements of income (loss), comprehensive income (loss), changes in stockholders’ equity, and cash flows for the interim periods ended September 30, 2020 and 2019 have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP” or “GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required in accordance with U.S. GAAP for complete financial statements and should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Certain reclassifications have been made to prior period amounts within the condensed consolidated balance sheet and the operating section of the condensed consolidated statement of cash flows to conform to the current period presentation.

In the opinion of the Company’s management, the Company’s unaudited condensed consolidated balance sheet as of September 30, 2020 and the condensed consolidated statements of income (loss), comprehensive income (loss), changes in stockholders’ equity, and cash flows for the interim periods ended September 30, 2020 and 2019, reflect all adjustments (consisting only of normal and recurring adjustments) necessary to present fairly the results of the interim periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full year.

Stockholders’ Equity — The board of directors of the Company authorized a share repurchase program of up to $300 million of the Company’s outstanding common stock effective June 12, 2018. The share repurchase program has no expiration date. The shares may be repurchased from time to time in open market transactions at prevailing market prices, in privately negotiated transactions, under Rule 10b5-1 plans, or by other means in accordance with federal securities laws. At September 30, 2020, $194.9 million remained available under the repurchase program. The Company has temporarily suspended share repurchases due to the impact of COVID-19 as the Company prioritizes investments to the most critical operating areas.

On April 21, 2020, the Company completed the issuance and sale of 2,138,580 shares of common stock, par value $0.001 per share, to Durable Capital Master Fund LP at a price of $116.90 per share. The Company subsequently filed a registration statement to register the resale of these shares in accordance with the terms of the purchase agreement. The Company received net proceeds from the offering of $249.8 million.

COVID-19 Pandemic — In March 2020, the Company began to experience the impact of the COVID-19 pandemic on its global operations, as required business and school closures and shelter-in-place government mandates resulted in the temporary closure of a significant portion of the Company’s child care centers. The Company continued to operate critical health care client and "hub" centers to provide care and support services to the children whose parents work on the front lines of the response to the pandemic. Countries and local jurisdictions have since lifted certain restrictions, and the Company has re-opened a significant portion of the temporarily closed centers. As of September 30, 2020, the Company operated 1,026 child care and early education centers with the capacity to serve approximately 115,000 children and their families. As of September 30, 2020, approximately 900 of its child care centers (with a total capacity of approximately 100,000) were open, including approximately 540 centers in the United States, approximately 300 centers in the United Kingdom, and 62 centers in the Netherlands. The Company's centers are operating with specific COVID-19 protocols in place in order to protect the health and safety of children, families and staff, including social distancing procedures for pick-up and drop-off, daily health checks, the use of face masks by the Company’s staff, limited group sizes, and enhanced hygiene and cleaning practices. The Company is focused on the re-enrollment and ramping of open centers, while also continuing to phase the remaining center re-openings through the remainder of 2020 and into 2021, as conditions permit. As the Company continues to analyze the current environment, it may decide to close or not re-open certain centers in locations where demand and economic trends have shifted. During the three months ended September 30, 2020, the Company added five new centers and permanently closed 55 centers, for a total of 58 net center reductions in 2020. The Company’s back-up care and educational advisory services have remained fully operational to clients and their employees. Due to the acute need for child care support during this pandemic, the Company expanded back-up care services and the availability of self-sourced reimbursed care in the second quarter; during the three months ended September 30, 2020, the temporary use of self-sourced reimbursed care significantly decreased as demand for back-up care started to shift toward more traditional in-center and in-home delivery of back-up care solutions.

As a result of the economic effects of the COVID-19 pandemic, the Company considered whether these conditions indicated it was more likely than not that the Company’s $1.4 billion in goodwill and $180.9 million in indefinite-lived intangible assets were impaired. Based on the facts and circumstances as of September 30, 2020, the Company determined it was more likely than not that the fair value of its reporting units and indefinite-lived intangible assets exceeded their carrying amount and, therefore, an interim impairment analysis was not required.

In addition, the Company reviewed its long-lived assets, including operating lease right-of-use assets and amortizable intangible assets, to determine whether these conditions indicated that the carrying amount of such assets may not be recoverable. During the three and nine months ended September 30, 2020, the Company recognized a $1.7 million and $18.6 million impairment loss on long-lived assets, respectively, for certain centers that are unlikely to recover the carrying amount of their long-lived assets due to the operational disruption caused by the pandemic, including certain locations that the Company has decided to not re-open or expects not to continue operating on a long-term basis. Given the current risks and uncertainties associated with the COVID-19 pandemic and its impact on the Company's operations, additional impairment losses may occur.

The broad effects of COVID-19, its duration and scope of the ongoing disruption, including the pace of re-ramping of enrollment at centers that have re-opened, cannot be predicted and is affected by many interdependent variables and decisions by government authorities as well as the Company’s client partners, and by any continued developments in the persistence and treatment of COVID-19. The Company cannot anticipate how long it will take for re-opened centers to reach typical enrollment levels and there is no assurance that centers currently open will continue to operate. While the Company has experienced increased demand for back-up care services during the pandemic, such as in-home care and self-sourced reimbursed care, and more limited disruption to providing educational advisory services, these conditions and trends may not continue in subsequent periods. As businesses and families continue to adapt to changing conditions, the Company has seen a shift in back-up care services toward the more traditional in-center and in-home service delivery as use gradually re-ramps to pre-COVID-19 levels, while the temporary use of self-sourced reimbursed care decreased during the third quarter. Given these factors, the Company expects the effects of COVID-19 to continue to adversely impact the results of its operations for the remainder of 2020 and into 2021.

During the temporary closure of a significant portion of the Company's child care centers, the Company implemented measures to mitigate the impact on the Company's financial position and operations, as well as improve liquidity and access to financial resources. Although the Company experienced modest improvement to revenue during the three months ended September 30, 2020 compared to the second quarter of 2020, the Company continues to monitor the ongoing disruption and to deploy measures, as needed, to mitigate the impact on the Company's financial position and operations. These measures include:

•furloughing a significant portion of the Company’s employees in proportion to the number of center closures, including center personnel for temporarily closed centers and related support functions in the Company’s corporate offices;

•reducing discretionary spending and overhead costs, while prioritizing investments that support current operations and deferring to future periods nonessential investments;

•temporary voluntary reductions in compensation to certain executive officers and board members;

•participating in government assistance programs, including tax deferrals, tax credits and employee wage support;

•renegotiating payment terms with vendors and landlords;

•temporary suspension of share repurchases;

•amending the Company’s credit agreement in April 2020 and May 2020 to increase the borrowing capacity of the Company’s revolving credit facility from $225 million to $400 million; and,

•raising $249.8 million in net proceeds from the issuance and sale of common stock in April 2020.

In light of these actions and based on the Company’s assumptions about the continued impact of COVID-19 on its operations, the Company believes it has sufficient liquidity to satisfy its obligations for at least the next twelve months. Refer to Note 6, Credit Arrangements and Debt Obligations, for additional information on the amendments to the Company’s credit agreement.

Government Assistance — The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted on March 27, 2020 in the United States, which is an economic aid package to help mitigate the impact of the pandemic. Additionally, other foreign governmental legislation that provides relief provisions has been enacted in response to the economic impact of COVID-19. The Company has participated in certain government assistance programs, including availing itself of certain tax deferrals and tax credits allowed pursuant to the CARES Act in the United States, as well as certain tax deferrals, tax credits, and employee wage support in the United Kingdom, and may continue to do so in the future. Governmental assistance received is recorded on the consolidated statement of income as a reduction to the related expenses that the assistance is intended to defray. During the three and nine months ended September 30, 2020, $20.3 million and $61.5 million was recorded as a reduction to cost of services, respectively, in relation to these benefits. As of September 30, 2020, $16.0 million was recorded in prepaid expenses and other current assets on the consolidated balance sheet for amounts due from government assistance programs. Additionally, approximately $3.0 million and $12.4 million was recorded in accounts payable and accrued expenses and other long-term liabilities, respectively, related to payroll tax deferrals.

Recently Adopted Pronouncements — On January 1, 2020, the Company adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which amends the existing guidance on the accounting for credit losses of certain financial instruments. This guidance requires entities to recognize the expected credit loss over the lifetime of certain financial instruments and modifies the impairment model for available-for-sale debt securities. This standard is applied by recording a cumulative effect adjustment to retained earnings upon adoption. There was no impact to the Company’s consolidated financial statements upon the adoption of this guidance.

The Company generates accounts receivable from fees charged to parents and employer sponsors, which are generally billed monthly as services are rendered or in advance, and are classified as short-term. The Company monitors collections and maintains a provision for expected credit losses based on historical trends, current conditions, and relevant forecasted information, in addition to provisions established for specific collection issues that have been identified. Activity in the allowance for credit losses is as follows (in thousands):


	Nine months ended September 30, 2020
Beginning balance at January 1, 2020	$	1,226
Provision	3,625
Write-offs and recoveries	(1,024)
Ending balance at September 30, 2020	$	3,827

The Company’s investments in debt securities, which were classified as available-for-sale, are further disclosed in Note 9, Fair Value Measurements. As of September 30, 2020, the available-for-sale debt securities are not in an unrealized loss position, and therefore there is no allowance for credit losses.

Recently Issued Pronouncements — In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The standard removes certain exceptions to the general principles in Topic 740 and improves the consistent application of U.S. GAAP by clarifying and amending certain areas of the existing guidance. This ASU is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years, with early adoption permitted. The Company is in the process of evaluating the impact of adoption of this standard, but does not expect it will have a material impact on the Company’s consolidated financial statements and related disclosures.

Earnings Per Share - Additional Information (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Common Stock \| Share-based Payment Arrangement, Option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Options outstanding to purchase (in shares)	2,800,000	37,250	1,000,000.0	500,000

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES The Company’s effective income tax rates were 56.0% and 20.2% for the three months ended September 30, 2020 and 2019, respectively, and (44.2)% and 20.0% for the nine months ended September 30, 2020 and 2019, respectively. For the three and nine months ended September 30, 2020, the Company’s annual effective tax rate was highly sensitive to changes in estimates of total ordinary income (loss), and therefore a reliable estimate could not be made. Accordingly, the actual effective tax rate for the year-to-date period has been used. The effective income tax rate may fluctuate from quarter to quarter for various reasons, including changes to income (loss) before income tax, jurisdictional mix of income (loss) before income tax, valuation allowances, jurisdictional income tax rate changes, as well as discrete items such as the settlement of foreign, federal and state tax issues and the effects of excess tax benefits associated with the exercise of stock options and vesting of restricted stock, which is included as a reduction of tax expense. During the three and nine months ended September 30, 2020, the excess tax benefit from stock-based compensation expense decreased tax expense by $2.0 million and $10.6 million, respectively. During the three and nine months ended September 30, 2019, the excess tax benefit from stock-based compensation expense decreased tax expense by $2.8 million and $10.2 million, respectively. For the three and nine months ended September 30, 2020, prior to the inclusion of the excess tax benefit and other discrete items, the effective income tax rate approximated 38%. For the three and nine months ended September 30, 2019, prior to the inclusion of the excess tax benefit and other discrete items, the effective income tax rate approximated 26%. The Company’s unrecognized tax benefits were $3.8 million at September 30, 2020 and $4.3 million at December 31, 2019, inclusive of interest. The Company expects the unrecognized tax benefits to change over the next twelve months if certain tax matters settle with the applicable taxing jurisdiction during this time frame, or, if the applicable statute of limitations lapses. The impact of the amount of such changes to previously recorded uncertain tax positions could range from zero to $0.3 million. The Company and its domestic subsidiaries are subject to audit for U.S. federal income tax as well as multiple state jurisdictions. U.S. federal income tax returns are typically subject to examination by the Internal Revenue Service (“IRS”) and the statute of limitations for federal tax returns is three years. The Company’s filings for the tax years 2017 through 2019 are subject to audit based upon the federal statute of limitations. State income tax returns are generally subject to examination for a period of three to four years after filing of the respective return. The state impact of any federal changes remains subject to examination by various states for a period of up to one year after formal notification to the states. The Company’s filings for the tax years from 2015 to 2019 are subject to audit and, as of September 30, 2020, there was one state audit in process. The Company is also subject to corporate income tax at its subsidiaries located in the United Kingdom, the Netherlands, India, Ireland, and Puerto Rico. The tax returns for the Company’s subsidiaries located in foreign jurisdictions are subject to examination for periods ranging from one to five years.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 971,268	$ 779,477
Other comprehensive income (loss) before reclassifications, net of tax	(18,801)	(30,776)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	2,272	(1,406)
Net other comprehensive income (loss)	(16,529)	(32,182)
Ending balance	1,227,113	894,495
Foreign currency translation adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(47,835)	(67,648)
Other comprehensive income (loss) before reclassifications, net of tax	(13,319)	(23,975)
Net other comprehensive income (loss)	(13,319)	(23,975)
Ending balance	(61,154)	(91,623)
Unrealized gain (loss) on cash flow hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(2,566)	5,293
Other comprehensive income (loss) before reclassifications, net of tax	(5,509)	(6,878)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	2,272	(1,406)
Net other comprehensive income (loss)	(3,237)	(8,284)
Ending balance	(5,803)	(2,991)
Unrealized gain (loss) on investments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	70	0
Other comprehensive income (loss) before reclassifications, net of tax	27	77
Net other comprehensive income (loss)	27	77
Ending balance	97	77
Accumulated Other Comprehensive Income (Loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(50,331)	(62,355)
Ending balance	$ (66,860)	$ (94,537)

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References + Details

Credit Arrangements and Debt Obligations (Tables)

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Outstanding Borrowings

Outstanding term loan borrowings were as follows (in thousands):


	September 30, 2020		December 31, 2019
Term loans	$	1,037,375	$	1,045,438
Deferred financing costs and original issue discount	(4,136)		(6,639)
Total debt	1,033,239		1,038,799
Less current maturities	(10,750)		(10,750)
Long-term debt	$	1,022,489	$	1,028,049

Schedule of Maturities of Long-term Debt

Future principal payments of long-term debt are as follows for the years ending December 31 (in thousands):


	Term Loans
Remainder of 2020	$	2,687
2021	10,750
2022	10,750
2023	1,013,188

Total future principal payments	$	1,037,375

Schedule of Interest Rate Derivatives by Balance Sheet

As of September 30, 2020 and December 31, 2019, the fair value of the derivative financial instruments was as follows (in thousands):


Derivative financial instruments	Consolidated balance sheet classification	September 30, 2020		December 31, 2019
Interest rate swaps - liability	Other long-term liabilities	$	(6,203)	$	(2,850)
Interest rate caps - asset	Other assets	$	308	$	—

Schedule of the Effect of Interest Rate Derivatives on Other Comprehensive Income (Loss)

The effect of the derivative financial instruments on other comprehensive income (loss) was as follows (in thousands):


Derivatives designated as cash flow hedging instruments	Amount of gain (loss) recognized in other comprehensive income (loss)		Consolidated statement of income classification	Amount of net gain (loss) reclassified into earnings		Total effect on other comprehensive income (loss)
Three months ended September 30, 2020
Cash flow hedges	$	(1,015)	Interest expense — net	$	(1,468)	$	453
Income tax effect	273		Income tax expense	395		(122)
Net of income taxes	$	(742)		$	(1,073)	$	331

Three months ended September 30, 2019
Cash flow hedges	$	(960)	Interest expense — net	$	443	$	(1,403)
Income tax effect	258		Income tax expense	(119)		377
Net of income taxes	$	(702)		$	324	$	(1,026)


Derivatives designated as cash flow hedging instruments	Amount of gain (loss) recognized in other comprehensive income (loss)		Consolidated statement of income classification	Amount of net gain (loss) reclassified into earnings		Total effect on other comprehensive income (loss)
Nine months ended September 30, 2020
Cash flow hedges	$	(7,536)	Interest expense — net	$	(3,109)	$	(4,427)
Income tax effect	2,027		Income tax expense	837		1,190
Net of income taxes	$	(5,509)		$	(2,272)	$	(3,237)

Nine months ended September 30, 2019
Cash flow hedges	$	(9,409)	Interest expense — net	$	1,923	$	(11,332)
Income tax effect	2,531		Income tax expense	(517)		3,048
Net of income taxes	$	(6,878)		$	1,406	$	(8,284)

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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+ Details

Credit Arrangements and Debt Obligations - Schedule of Derivatives by Balance Sheet Location (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Interest rate swaps \| Other long-term liabilities
Derivatives, Fair Value [Line Items]
Interest rate swaps - liability	$ (6,203)	$ (2,850)
Interest rate caps \| Other assets
Derivatives, Fair Value [Line Items]
Interest rate caps - asset	$ 308	$ 0

Goodwill and Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in Carrying Amount of Goodwill

The changes in the carrying amount of goodwill were as follows (in thousands):


	Full service center-based child care		Back-up care		Educational advisory and other services		Total
Balance at January 1, 2019	$	1,155,705	$	168,105	$	23,801	$	1,347,611
Additions from acquisitions	15,228		25,350		14,000		54,578
Adjustments to prior year acquisitions	(83)		—		—		(83)
Effect of foreign currency translation	10,380		387		—		10,767
Balance at December 31, 2019	1,181,230		193,842		37,801		1,412,873
Additions from acquisitions	2,117		—		2,074		4,191
Adjustments to prior year acquisitions	(383)		—		(125)		(508)
Effect of foreign currency translation	(6,742)		(774)		—		(7,516)
Balance at September 30, 2020	$	1,176,222	$	193,068	$	39,750	$	1,409,040

Schedule of Finite-Lived Intangible Assets

The Company also has intangible assets, which consisted of the following at September 30, 2020 and December 31, 2019 (in thousands):


September 30, 2020	Weighted average amortization period	Cost		Accumulated amortization		Net carrying amount
Definite-lived intangible assets:
Customer relationships	14 years	$	404,132	$	(305,757)	$	98,375
Trade names	6 years	11,133		(9,163)		1,970
		415,265		(314,920)		100,345
Indefinite-lived intangible assets:
Trade names	N/A	180,881		—		180,881
		$	596,146	$	(314,920)	$	281,226


December 31, 2019	Weighted average amortization period	Cost		Accumulated amortization		Net carrying amount
Definite-lived intangible assets:
Customer relationships	14 years	$	404,667	$	(283,597)	$	121,070
Trade names	6 years	10,656		(8,144)		2,512
		415,323		(291,741)		123,582
Indefinite-lived intangible assets:
Trade names	N/A	181,091		—		181,091
		$	596,414	$	(291,741)	$	304,673

Estimated Amortization Expense Related to Intangible Assets

The Company estimates that it will record amortization expense related to intangible assets existing as of September 30, 2020 as follows (in thousands):


	Estimated amortization expense
Remainder of 2020	$	7,778
2021	$	28,416
2022	$	26,045
2023	$	25,144
2024	$	11,206

Income Taxes - Additional Information (Details)	3 Months Ended		9 Months Ended
Income Taxes - Additional Information (Details)	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2020 USD ($) tax_audit	Sep. 30, 2019 USD ($)	Dec. 31, 2019 USD ($)
Income Tax Disclosure [Line Items]
Effective income tax rates (percent)	56.00%	20.20%	(44.20%)	20.00%
Decrease in tax expense due to excess tax benefit from stock-based compensation	$ 2,000,000.0	$ 2,800,000	$ 10,600,000	$ 10,200,000
Effective income tax rate, percent prior to adoption of accounting standards update (percent)	38.00%	26.00%	38.00%	26.00%
Unrecognized income tax benefit	$ 3,800,000		$ 3,800,000		$ 4,300,000
Minimum
Income Tax Disclosure [Line Items]
Change in uncertain tax positions	0		0
Maximum
Income Tax Disclosure [Line Items]
Change in uncertain tax positions	$ 300,000		$ 300,000
State
Income Tax Disclosure [Line Items]
Number of income tax audits in process \| tax_audit			1

Earnings Per Share - Computation of Basic Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income (loss)	$ (6,654)	$ 41,254	$ 24,437	$ 132,623
Allocation of net income (loss) to common stockholders:
Common stock	(6,654)	41,055	24,331	131,988
Unvested participating shares	0	199	106	635
Net income (loss) available to common shareholders	$ (6,654)	$ 41,254	$ 24,437	$ 132,623
Common Stock
Weighted average common shares outstanding:
Weighted average number of common shares (in shares)	60,196,795	57,935,118	59,253,044	57,820,596
Earnings (loss) per common share:
Common stock (in dollars per share)	$ (0.11)	$ 0.71	$ 0.41	$ 2.28
Restricted Stock \| Common Stock
Weighted average common shares outstanding:
Weighted average number of common shares (in shares)	249,567	280,711	258,265	277,750

Segment Information

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

The Company’s reportable segments are comprised of full service center-based child care, back-up care, and educational advisory and other services. The full service center-based child care segment includes the traditional center-based child care and early education, preschool, and elementary education. The Company’s back-up care segment consists of center-based back-up child care, in-home child and adult/elder care, and self-sourced reimbursed care. The Company’s educational advisory and other services segment consists of tuition assistance and student loan repayment program administration, educational consulting services, and college admissions advisory services, as well as the Sittercity business, an online marketplace for families and caregivers, which have been aggregated as they do not meet the thresholds for separate disclosure. The Company and its chief operating decision maker evaluate performance based on revenues and income from operations. Intercompany activity is eliminated in the segment results. The assets and liabilities of the Company are managed centrally and are reported internally in the same manner as the consolidated financial statements; therefore, no segment asset information is produced or included herein.

Revenue and income (loss) from operations by reportable segment were as follows (in thousands):


	Full service center-based child care		Back-up care		Educational advisory and other services		Total
Three months ended September 30, 2020
Revenue	$	220,136	$	93,050	$	24,734	$	337,920
Income (loss) from operations (1)	(60,389)		46,464		7,998		(5,927)

Three months ended September 30, 2019
Revenue	$	410,789	$	80,059	$	20,736	$	511,584
Income from operations	36,961		19,711		5,957		62,629

(1) For the three months ended September 30, 2020, loss from operations for the full service center-based child care segment included impairment costs of $1.7 million, of which $1.4 million related to fixed assets and $0.3 million related to operating lease right-of-use assets. Additionally, loss from operations in the full service center-based child care segment included $0.7 million in costs primarily associated with the closure of centers, including related severance and facilities costs. Refer to Note 1, Organization and Basis of Presentation, for additional information on impairment costs.


	Full service center-based child care		Back-up care		Educational advisory and other services		Total
Nine months ended September 30, 2020
Revenue	$	768,833	$	303,121	$	66,061	$	1,138,015
Income (loss) from operations (1)	(115,484)		143,824		17,128		45,468

Nine months ended September 30, 2019
Revenue	$	1,267,689	$	214,802	$	58,911	$	1,541,402
Income from operations	130,318		55,262		14,792		200,372

(1) For the nine months ended September 30, 2020, income (loss) from operations included impairment costs of $20.7 million, of which $13.1 million related to fixed assets and $5.5 million related to operating lease right-of-use assets in the full service center-based child care segment, and $2.1 million related to an equity investment in the back-up care segment. Additionally, loss from operations in the full service center-based child care segment included $5.1 million in costs primarily associated with the closure of centers, including related severance and facilities costs. Refer to Note 1, Organization and Basis of Presentation, for additional information on impairment costs.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

Earnings Per Share - Computation of Diluted Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Earnings (loss) allocated to common stock	$ (6,654)	$ 41,055	$ 24,331	$ 131,988
Earnings allocated to unvested participating shares	0	199	106	635
Adjusted earnings allocated to unvested participating shares	0	(195)	(105)	(622)
Earnings (loss) allocated to common stock	$ (6,654)	$ 41,059	$ 24,332	$ 132,001
Common Stock
Weighted average common shares outstanding:
Weighted average number of common shares (in shares)	60,196,795	57,935,118	59,253,044	57,820,596
Effect of dilutive securities (in shares)	0	1,197,571	748,686	1,121,016
Common stock-diluted (in shares)	60,196,795	59,132,689	60,001,730	58,941,612
Earnings (loss) per common share:
Common stock (in dollars per share)	$ (0.11)	$ 0.69	$ 0.41	$ 2.24

Credit Arrangements and Debt Obligations

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Credit Arrangements and Debt Obligations

CREDIT ARRANGEMENTS AND DEBT OBLIGATIONS

Senior Secured Credit Facilities

The Company’s senior secured credit facilities consist of a secured term loan facility (“term loan facility”) and a multi-currency revolving credit facility (“revolving credit facility”). The term loans mature on November 7, 2023 and require quarterly principal payments of $2.7 million, with the remaining principal balance due on November 7, 2023.

Outstanding term loan borrowings were as follows (in thousands):


	September 30, 2020		December 31, 2019
Term loans	$	1,037,375	$	1,045,438
Deferred financing costs and original issue discount	(4,136)		(6,639)
Total debt	1,033,239		1,038,799
Less current maturities	(10,750)		(10,750)
Long-term debt	$	1,022,489	$	1,028,049

On April 24, 2020, the Company amended its existing senior credit facilities to, among other things, increase the borrowing capacity of the revolving credit facility from $225 million to $385 million, modify the interest rates applicable to borrowings outstanding on the revolving credit facility, and modify the terms of the applicable covenants. On May 7, 2020, the Company further increased the borrowing capacity of its revolving credit facility from $385 million to $400 million. The revolving credit facility matures on July 31, 2022. There were no borrowings outstanding on the revolving credit facility at September 30, 2020 and December 31, 2019.

All borrowings under the credit agreement are subject to variable interest. Borrowings under the term loan facility bear interest at a rate per annum of 0.75% over the base rate, or 1.75% over the eurocurrency rate, which is the one, two, three, or six month LIBOR rate or, with applicable lender approval, the twelve month or less than one-month LIBOR rate. With respect to the term loan facility, the base rate is subject to an interest rate floor of 1.75% and the eurocurrency rate is subject to an interest rate floor of 0.75%. Effective as of April 24, 2020, borrowings under the revolving credit facility bear interest at a rate per annum ranging from 0.50% to 1.25% over the base rate, or 1.50% to 2.25% over the eurocurrency rate and the unused commitment fee applicable to the revolving credit commitments ranges from 30 to 50 basis points. Prior to the April 2020 credit amendment, borrowings under the revolving credit facility bore interest at a rate per annum ranging from 0.50% to 0.75% over the base rate, or 1.50% to 1.75% over the eurocurrency rate.

The effective interest rate for the term loans was 2.50% and 3.55% at September 30, 2020 and December 31, 2019, respectively, and the weighted average interest rate was 2.83% and 4.16% for the nine months ended September 30, 2020 and 2019, respectively, prior to the effects of any interest rate hedge arrangements. The weighted average interest rate for the revolving credit facility was 4.49% and 3.86% for the nine months ended September 30, 2020 and 2019, respectively.

Certain financing fees and original issue discount costs are capitalized and are being amortized over the terms of the related debt instruments and amortization expense is included in interest expense. In conjunction with the April and May 2020 credit amendments, the Company incurred $2.8 million in fees that have been capitalized in other assets on the consolidated balance sheet and will be amortized over the remaining life of the revolving credit facility. Amortization expense of deferred fees was $0.7 million and $0.4 million for the three months ended September 30, 2020 and 2019, respectively, and was $1.7 million and $1.2 million for the nine months ended September 30, 2020 and 2019, respectively. Amortization expense of original issue discount costs was $0.1 million for both the three months ended September 30, 2020 and 2019, and was $0.3 million for both the nine months ended September 30, 2020 and 2019.

All obligations under the senior secured credit facilities are secured by substantially all the assets of the Company’s U.S. subsidiaries. The senior secured credit facilities contain a number of covenants that, among other things and subject to certain exceptions, may restrict the ability of Bright Horizons Family Solutions LLC, the Company’s wholly-owned subsidiary, and its restricted subsidiaries, to: incur certain liens; make investments, loans, advances and acquisitions; incur additional indebtedness or guarantees; pay dividends on capital stock or redeem, repurchase or retire capital stock or subordinated indebtedness; engage in transactions with affiliates; sell assets, including capital stock of our subsidiaries; alter the business conducted; enter into agreements restricting the Company’s subsidiaries’ ability to pay dividends; and consolidate or merge.

In addition, the credit agreement governing the senior secured credit facilities requires Bright Horizons Capital Corp., the Company’s direct subsidiary, to be a passive holding company, subject to certain exceptions. Effective as of April 24, 2020, the revolving credit facility requires Bright Horizons Family Solutions LLC, the borrower, and its restricted subsidiaries, to comply with a maximum first lien gross leverage ratio for four fiscal quarters, followed by a maximum first lien net leverage ratio in the quarters thereafter. The maximum first lien gross leverage ratio was 6.00 to 1.00 for the fiscal quarter ending June 30, 2020, 7.50 to 1.00 for the fiscal quarter ending September 30, 2020, 8.00 to 1.00 for the fiscal quarter ending December 31, 2020, and 7.50 to 1.00 for the fiscal quarter ending March 31, 2021. Beginning with the fiscal quarter ending June 30, 2021, the Company will be required to comply with its previous maximum first lien net leverage ratio of 4.25 to 1.00. A breach of the applicable covenant is subject to certain equity cure rights. Prior to the April 2020 credit amendment, the Company was required to comply with a maximum first lien net leverage ratio.

Future principal payments of long-term debt are as follows for the years ending December 31 (in thousands):


	Term Loans
Remainder of 2020	$	2,687
2021	10,750
2022	10,750
2023	1,013,188

Total future principal payments	$	1,037,375

Derivative Financial Instruments

The Company is subject to interest rate risk as all borrowings under the senior secured credit facilities are subject to variable interest rates. In October 2017, the Company entered into variable-to-fixed interest rate swap agreements to mitigate the exposure to variable interest arrangements on $500 million notional amount of the outstanding term loan borrowings. These swap agreements, designated and accounted for as cash flow hedges from inception, are scheduled to mature on October 31, 2021. The Company is required to make monthly payments on the notional amount at a fixed average interest rate, plus the applicable rate for eurocurrency loans. The notional amount is subject to a total interest rate of approximately 3.65%. In exchange, the Company receives interest on the notional amount at a variable rate based on the one-month LIBOR rate, subject to a 0.75% floor.

In June 2020, the Company entered into interest rate cap agreements with a total notional value of $800 million, designated and accounted for as cash flow hedges from inception, to provide the Company with interest rate protection in the event the one-month LIBOR rate increases above 1%. Interest rate cap agreements for $300 million notional value have an effective date of June 30, 2020 and expire on October 31, 2023, while interest rate cap agreements for another $500 million notional amount have a forward starting effective date of October 29, 2021, which coincides with the maturity of the interest rate swap agreements, and expire on October 31, 2023.

The interest rate swaps and interest rate caps are recorded on the Company’s consolidated balance sheet at fair value and classified based on the instruments’ maturity dates. The Company records gains or losses resulting from changes in the fair value of the interest rate swaps and interest rate caps to accumulated other comprehensive income or loss. These gains or losses are subsequently reclassified into earnings and recognized to interest expense in the Company’s consolidated statement of income in the period that the hedged interest expense on the term loan facility is recognized. The premium paid for the interest rate cap was recorded as an asset and will be allocated to each of the individual hedged interest payments on the basis of their relative fair values. The change in each respective allocated fair value amount will be reclassified out of accumulated other comprehensive income when each of the hedged forecasted transactions impacts earnings and recognized to interest expense in the Company's consolidated statement of income.

As of September 30, 2020 and December 31, 2019, the fair value of the derivative financial instruments was as follows (in thousands):


Derivative financial instruments	Consolidated balance sheet classification	September 30, 2020		December 31, 2019
Interest rate swaps - liability	Other long-term liabilities	$	(6,203)	$	(2,850)
Interest rate caps - asset	Other assets	$	308	$	—

The effect of the derivative financial instruments on other comprehensive income (loss) was as follows (in thousands):


Derivatives designated as cash flow hedging instruments	Amount of gain (loss) recognized in other comprehensive income (loss)		Consolidated statement of income classification	Amount of net gain (loss) reclassified into earnings		Total effect on other comprehensive income (loss)
Three months ended September 30, 2020
Cash flow hedges	$	(1,015)	Interest expense — net	$	(1,468)	$	453
Income tax effect	273		Income tax expense	395		(122)
Net of income taxes	$	(742)		$	(1,073)	$	331

Three months ended September 30, 2019
Cash flow hedges	$	(960)	Interest expense — net	$	443	$	(1,403)
Income tax effect	258		Income tax expense	(119)		377
Net of income taxes	$	(702)		$	324	$	(1,026)


Derivatives designated as cash flow hedging instruments	Amount of gain (loss) recognized in other comprehensive income (loss)		Consolidated statement of income classification	Amount of net gain (loss) reclassified into earnings		Total effect on other comprehensive income (loss)
Nine months ended September 30, 2020
Cash flow hedges	$	(7,536)	Interest expense — net	$	(3,109)	$	(4,427)
Income tax effect	2,027		Income tax expense	837		1,190
Net of income taxes	$	(5,509)		$	(2,272)	$	(3,237)

Nine months ended September 30, 2019
Cash flow hedges	$	(9,409)	Interest expense — net	$	1,923	$	(11,332)
Income tax effect	2,531		Income tax expense	(517)		3,048
Net of income taxes	$	(6,878)		$	1,406	$	(8,284)

During the next twelve months, the Company estimates that a net loss of $5.8 million, pre-tax, will be reclassified from accumulated other comprehensive income (loss) and recorded to interest expense, related to these derivative financial instruments.

Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

Revenue disaggregated by segment and geographical region was as follows (in thousands):


	Full service center-based child care		Back-up care		Educational advisory and other services		Total
Three months ended September 30, 2020
North America	$	137,112	$	89,271	$	24,734	$	251,117
Europe	83,024		3,779		—		86,803
	$	220,136	$	93,050	$	24,734	$	337,920
Three months ended September 30, 2019
North America	$	298,770	$	75,245	$	20,736	$	394,751
Europe	112,019		4,814		—		116,833
	$	410,789	$	80,059	$	20,736	$	511,584


	Full service center-based child care		Back-up care		Educational advisory and other services		Total
Nine months ended September 30, 2020
North America	$	527,751	$	292,934	$	66,061	$	886,746
Europe	241,082		10,187		—		251,269
	$	768,833	$	303,121	$	66,061	$	1,138,015
Nine months ended September 30, 2019
North America	$	920,113	$	203,155	$	58,911	$	1,182,179
Europe	347,576		11,647		—		359,223
	$	1,267,689	$	214,802	$	58,911	$	1,541,402

Earnings Per Share

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHARE

The following tables set forth the computation of basic and diluted earnings per share using the two-class method (in thousands, except share and per share amounts):


Basic earnings (loss) per share:	Three months ended September 30,				Nine months ended September 30,
	2020		2019		2020		2019
Net income (loss)	$	(6,654)	$	41,254	$	24,437	$	132,623
Allocation of net income (loss) to common stockholders:
Common stock	$	(6,654)	$	41,055	$	24,331	$	131,988
Unvested participating shares	—		199		106		635
	$	(6,654)	$	41,254	$	24,437	$	132,623

Weighted average common shares outstanding:
Common stock	60,196,795		57,935,118		59,253,044		57,820,596
Unvested participating shares	249,567		280,711		258,265		277,750
Earnings (loss) per common share:
Common stock	$	(0.11)	$	0.71	$	0.41	$	2.28


Diluted earnings (loss) per share:	Three months ended September 30,				Nine months ended September 30,
	2020		2019		2020		2019
Earnings (loss) allocated to common stock	$	(6,654)	$	41,055	$	24,331	$	131,988
Earnings allocated to unvested participating shares	—		199		106		635
Adjusted earnings allocated to unvested participating shares	—		(195)		(105)		(622)
Earnings (loss) allocated to common stock	$	(6,654)	$	41,059	$	24,332	$	132,001

Weighted average common shares outstanding:
Common stock	60,196,795		57,935,118		59,253,044		57,820,596
Effect of dilutive securities	—		1,197,571		748,686		1,121,016
	60,196,795		59,132,689		60,001,730		58,941,612
Earnings (loss) per common share:
Common stock	$	(0.11)	$	0.69	$	0.41	$	2.24

Options outstanding to purchase 2.8 million and 37,250 shares of common stock were excluded from diluted earnings per share for the three months ended September 30, 2020 and 2019, respectively, and 1.0 million and 0.5 million shares of common stock were excluded for the nine months ended September 30, 2020 and 2019, respectively, since their effect was anti-dilutive. These options may become dilutive in the future.

Segment Information - Income from Operations by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Segment Reporting Information [Line Items]
Revenue	$ 337,920	$ 511,584	$ 1,138,015	$ 1,541,402
Income from operations	(5,927)	62,629	45,468	200,372
Impairment costs	1,700		18,609	0
Impairment loss on fixed assets	1,400		13,100
Impairment loss on operating lease right-of-use assets	300		5,500
Impairment costs			20,700
Impairment losses on equity investment			2,128	0
Facility Closing
Segment Reporting Information [Line Items]
Costs associated with closure of childcare centers	700		5,100
Full service center-based child care
Segment Reporting Information [Line Items]
Revenue	220,136	410,789	768,833	1,267,689
Full service center-based child care \| Operating Segments
Segment Reporting Information [Line Items]
Revenue	220,136	410,789	768,833	1,267,689
Income from operations	(60,389)	36,961	(115,484)	130,318
Back-up care
Segment Reporting Information [Line Items]
Revenue	93,050	80,059	303,121	214,802
Back-up care \| Operating Segments
Segment Reporting Information [Line Items]
Revenue	93,050	80,059	303,121	214,802
Income from operations	46,464	19,711	143,824	55,262
Educational advisory and other services
Segment Reporting Information [Line Items]
Revenue	24,734	20,736	66,061	58,911
Educational advisory and other services \| Operating Segments
Segment Reporting Information [Line Items]
Revenue	24,734	20,736	66,061	58,911
Income from operations	$ 7,998	$ 5,957	$ 17,128	$ 14,792

Goodwill and Intangible Assets - Intangible Assets Subject to Amortization (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Definite-lived intangible assets:
Cost	$ 415,265	$ 415,323
Accumulated amortization	(314,920)	(291,741)
Net carrying amount	100,345	123,582
Indefinite-lived intangible assets:
Trade names	180,881	181,091
Cost	596,146	596,414
Net carrying amount	$ 281,226	$ 304,673
Customer relationships
Definite-lived intangible assets:
Weighted average amortization period	14 years	14 years
Cost	$ 404,132	$ 404,667
Accumulated amortization	(305,757)	(283,597)
Net carrying amount	$ 98,375	$ 121,070
Trade names
Definite-lived intangible assets:
Weighted average amortization period	6 years	6 years
Cost	$ 11,133	$ 10,656
Accumulated amortization	(9,163)	(8,144)
Net carrying amount	$ 1,970	$ 2,512

Leases - Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Leases - Lease Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Leases [Abstract]
Operating lease expense	$ 33,436	$ 34,166	$ 105,964	$ 95,555
Variable lease expense	6,419	8,752	21,772	25,738
Total lease expense	$ 39,855	$ 42,918	$ 127,736	$ 121,293

Credit Arrangements and Debt Obligations - Additional Information (Details)			1 Months Ended	3 Months Ended						9 Months Ended
	Apr. 24, 2020 USD ($)	Apr. 23, 2020 USD ($)	Oct. 31, 2017 USD ($)	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020 USD ($)	Jun. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	May 31, 2020 USD ($)	May 07, 2020 USD ($)	Mar. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Debt Instrument [Line Items]
Borrowing outstanding under revolving credit facility							$ 0			$ 0					$ 0
Debt issuance costs												$ 2,800,000
Amortization of deferred financing costs							700,000		$ 400,000	1,700,000	$ 1,200,000
Amortization of debt issuance cost							100,000		$ 100,000	300,000	$ 300,000
Derivative, interest rate (percent)			3.65%
Net loss to be reclassified from accumulated other comprehensive loss and recorded to interest expense during the next twelve months							$ (5,800,000)			$ (5,800,000)
Interest rate swaps
Debt Instrument [Line Items]
Derivative, notional amount			$ 500,000,000
Interest rate caps
Debt Instrument [Line Items]
Derivative, notional amount								$ 800,000,000
Interest rate cap agreement, threshold for interest rate protection (percent)								1.00%
Interest rate caps \| June 30, 2020
Debt Instrument [Line Items]
Derivative, notional amount								$ 300,000,000
Interest rate caps \| October 29, 2021
Debt Instrument [Line Items]
Derivative, notional amount								$ 500,000,000
Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate (percent)										0.75%
Eurocurrency
Debt Instrument [Line Items]
Basis spread on variable rate (percent)										1.75%
Secured Debt \| Senior Credit Facilities
Debt Instrument [Line Items]
Quarterly principal payments										$ 2,700,000
Revolving Credit Facility
Debt Instrument [Line Items]
Weighted average interest rate (percent)							4.49%		3.86%	4.49%	3.86%
Revolving Credit Facility \| Senior Credit Facilities
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity	$ 385,000,000	$ 225,000,000										$ 400,000,000	$ 400,000,000	$ 225,000,000
Gross leverage ratio							7.50	6.00
Revolving Credit Facility \| Senior Credit Facilities \| Forecast
Debt Instrument [Line Items]
Gross leverage ratio					7.50	8.00
Net leverage ratio				4.25
Revolving Credit Facility \| Senior Credit Facilities \| Minimum
Debt Instrument [Line Items]
Commitment fee on unused capacity (percent)	0.30%
Revolving Credit Facility \| Senior Credit Facilities \| Maximum
Debt Instrument [Line Items]
Commitment fee on unused capacity (percent)	0.50%
Revolving Credit Facility \| Senior Credit Facilities \| Base Rate \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	0.50%	0.50%
Revolving Credit Facility \| Senior Credit Facilities \| Base Rate \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	1.25%	0.75%
Revolving Credit Facility \| Senior Credit Facilities \| Eurocurrency \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	1.50%	1.50%
Revolving Credit Facility \| Senior Credit Facilities \| Eurocurrency \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	2.25%	1.75%
Term Loan \| Senior Credit Facilities
Debt Instrument [Line Items]
Effective interest rate for the term loans (percent)							2.50%			2.50%					3.55%
Weighted average interest rate (percent)							2.83%		4.16%	2.83%	4.16%
Term Loan \| Senior Credit Facilities \| Base Rate \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)										1.75%
Term Loan \| Senior Credit Facilities \| Eurocurrency \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (percent)			0.75%							0.75%

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2020	Oct. 30, 2020
Cover [Abstract]
Document Type	10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.	true
Document Period End Date	Sep. 30, 2020
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.	false
Entity File Number	001-35780
Entity Registrant Name	BRIGHT HORIZONS FAMILY SOLUTIONS INC.
(State or other jurisdiction of incorporation)	DE
(I.R.S. Employer Identification Number)	80-0188269
(Address of principal executive offices)	200 Talcott Avenue
Entity Address, City or Town	Watertown,
Entity Address, State or Province	MA
(Zip code)	02472
City Area Code	(617)
Local Phone Number	673-8000
Title of each class	Common Stock, $0.001 par value per share
Trading Symbol(s)	BFAM
Name of each exchange on which registered	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Emerging growth company	false
Smaller reporting company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (shares)		60,564,312
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001437578
Current Fiscal Year End Date	--12-31

Revenue Recognition - Disaggregation Of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Disaggregation of Revenue [Line Items]
Revenue	$ 337,920	$ 511,584	$ 1,138,015	$ 1,541,402
North America
Disaggregation of Revenue [Line Items]
Revenue	251,117	394,751	886,746	1,182,179
Europe
Disaggregation of Revenue [Line Items]
Revenue	86,803	116,833	251,269	359,223
Full service center-based child care
Disaggregation of Revenue [Line Items]
Revenue	220,136	410,789	768,833	1,267,689
Full service center-based child care \| North America
Disaggregation of Revenue [Line Items]
Revenue	137,112	298,770	527,751	920,113
Full service center-based child care \| Europe
Disaggregation of Revenue [Line Items]
Revenue	83,024	112,019	241,082	347,576
Back-up care
Disaggregation of Revenue [Line Items]
Revenue	93,050	80,059	303,121	214,802
Back-up care \| North America
Disaggregation of Revenue [Line Items]
Revenue	89,271	75,245	292,934	203,155
Back-up care \| Europe
Disaggregation of Revenue [Line Items]
Revenue	3,779	4,814	10,187	11,647
Educational advisory and other services
Disaggregation of Revenue [Line Items]
Revenue	24,734	20,736	66,061	58,911
Educational advisory and other services \| North America
Disaggregation of Revenue [Line Items]
Revenue	24,734	20,736	66,061	58,911
Educational advisory and other services \| Europe
Disaggregation of Revenue [Line Items]
Revenue	$ 0	$ 0	$ 0	$ 0

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 280
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Organization and Basis of Presentation (Tables)

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Schedule of Allowance for Credit Loss

Activity in the allowance for credit losses is as follows (in thousands):


	Nine months ended September 30, 2020
Beginning balance at January 1, 2020	$	1,226
Provision	3,625
Write-offs and recoveries	(1,024)
Ending balance at September 30, 2020	$	3,827

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Accounts receivable, allowance for credit loss, current	$ 3,827	$ 1,226
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	25,000,000	25,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	475,000,000	475,000,000
Common stock, shares issued (in shares)	60,263,169	57,884,020
Common stock, shares outstanding (in shares)	60,263,169	57,884,020

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ (6,654)	$ 41,254	$ 24,437	$ 132,623
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			83,173	80,427
Impairment losses on long-lived assets	1,700		18,609	0
Impairment losses on equity investment			2,128	0
Stock-based compensation expense			15,138	12,339
Deferred income taxes			8,408	4,085
Other non-cash adjustments — net			(206)	66
Changes in assets and liabilities:
Accounts receivable			(1,385)	14,789
Prepaid expenses and other current assets			(28,599)	(810)
Accounts payable and accrued expenses			11,921	23,824
Income taxes			(18,830)	(11,662)
Deferred revenue			(14,956)	4,046
Leases			30,434	9,565
Other assets			4,192	(344)
Other current and long-term liabilities			35,389	3,482
Net cash provided by operating activities			169,853	272,430
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of fixed assets			(54,494)	(74,492)
Proceeds from the disposal of fixed assets			9,997	4,331
Proceeds from the maturity of debt securities and sale of other investments			10,247	0
Purchases of debt securities and other investments			(6,106)	(20,090)
Purchase of equity method investment			0	(5,772)
Payments and settlements for acquisitions — net of cash acquired			(8,101)	(30,841)
Net cash used in investing activities			(48,457)	(126,864)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from stock issuance — net of issuance costs			249,808	0
Borrowings under revolving credit facility			43,200	172,874
Payments under revolving credit facility			(43,200)	(290,732)
Principal payments of long-term debt			(8,063)	(8,063)
Payments for debt issuance costs			(2,818)	0
Purchase of treasury stock			(32,658)	(12,023)
Taxes paid related to the net share settlement of stock options and restricted stock			(8,896)	(6,531)
Proceeds from issuance of common stock upon exercise of options and restricted stock upon purchase			27,087	21,506
Payments of deferred and contingent consideration for acquisitions			(1,088)	(4,200)
Net cash provided by (used in) financing activities			223,372	(127,169)
Effect of exchange rates on cash, cash equivalents and restricted cash			286	34
Net increase in cash, cash equivalents and restricted cash			345,054	18,431
Cash, cash equivalents and restricted cash — beginning of period			31,192	38,478	$ 38,478
Cash, cash equivalents and restricted cash — end of period	376,246	56,909	376,246	56,909	31,192
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO THE CONSOLIDATED BALANCE SHEETS:
Cash and cash equivalents						$ 365,300	$ 27,872	$ 48,529
Restricted cash and cash equivalents, included in prepaid expenses and other current assets						10,946		8,380
Total cash, cash equivalents and restricted cash — end of period	$ 376,246	$ 56,909	376,246	56,909	$ 38,478	376,246	$ 31,192	56,909
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash payments of interest			26,741	33,053
Cash payments of income taxes			8,329	40,691
Cash paid for amounts included in the measurement of lease liabilities			83,874	94,775
NON-CASH TRANSACTIONS:
Fixed asset purchases recorded in accounts payable and accrued expenses			3,377	5,519
Contingent consideration issued for acquisitions						$ 0		$ 16,621
Operating right-of-use assets obtained in exchange for operating lease liabilities — net			$ 88,850	$ 83,772

Goodwill and Intangible Assets - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Goodwill [Roll Forward]
Beginning balance	$ 1,412,873	$ 1,347,611
Additions from acquisitions	4,191	54,578
Adjustments to prior year acquisitions	(508)	(83)
Effect of foreign currency translation	(7,516)	10,767
Ending balance	1,409,040	1,412,873
Full service center-based child care
Goodwill [Roll Forward]
Beginning balance	1,181,230	1,155,705
Additions from acquisitions	2,117	15,228
Adjustments to prior year acquisitions	(383)	(83)
Effect of foreign currency translation	(6,742)	10,380
Ending balance	1,176,222	1,181,230
Back-up care
Goodwill [Roll Forward]
Beginning balance	193,842	168,105
Additions from acquisitions	0	25,350
Adjustments to prior year acquisitions	0	0
Effect of foreign currency translation	(774)	387
Ending balance	193,068	193,842
Educational advisory and other services
Goodwill [Roll Forward]
Beginning balance	37,801	23,801
Additions from acquisitions	2,074	14,000
Adjustments to prior year acquisitions	(125)	0
Effect of foreign currency translation	0	0
Ending balance	$ 39,750	$ 37,801

Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Schedule of Earnings (Loss) Per Share, Basic

The following tables set forth the computation of basic and diluted earnings per share using the two-class method (in thousands, except share and per share amounts):


Basic earnings (loss) per share:	Three months ended September 30,				Nine months ended September 30,
	2020		2019		2020		2019
Net income (loss)	$	(6,654)	$	41,254	$	24,437	$	132,623
Allocation of net income (loss) to common stockholders:
Common stock	$	(6,654)	$	41,055	$	24,331	$	131,988
Unvested participating shares	—		199		106		635
	$	(6,654)	$	41,254	$	24,437	$	132,623

Weighted average common shares outstanding:
Common stock	60,196,795		57,935,118		59,253,044		57,820,596
Unvested participating shares	249,567		280,711		258,265		277,750
Earnings (loss) per common share:
Common stock	$	(0.11)	$	0.71	$	0.41	$	2.28

Schedule of Earnings (Loss) Per Share, Diluted


Diluted earnings (loss) per share:	Three months ended September 30,				Nine months ended September 30,
	2020		2019		2020		2019
Earnings (loss) allocated to common stock	$	(6,654)	$	41,055	$	24,331	$	131,988
Earnings allocated to unvested participating shares	—		199		106		635
Adjusted earnings allocated to unvested participating shares	—		(195)		(105)		(622)
Earnings (loss) allocated to common stock	$	(6,654)	$	41,059	$	24,332	$	132,001

Weighted average common shares outstanding:
Common stock	60,196,795		57,935,118		59,253,044		57,820,596
Effect of dilutive securities	—		1,197,571		748,686		1,121,016
	60,196,795		59,132,689		60,001,730		58,941,612
Earnings (loss) per common share:
Common stock	$	(0.11)	$	0.69	$	0.41	$	2.24

Leases - Additional Information (Details) $ in Millions	3 Months Ended	9 Months Ended
Leases - Additional Information (Details) $ in Millions	Sep. 30, 2020 USD ($)	Sep. 30, 2020 USD ($)
Lessee, Lease, Description [Line Items]
Impairment loss on operating lease right-of-use assets	$ 0.3	$ 5.5
Total fixed payment obligations for operating lease not yet commenced	38.7	38.7
Deferred current lease payments	$ 12.1	$ 12.1
Deferred current lease payments, deferral term		1 year
Minimum
Lessee, Lease, Description [Line Items]
Operating lease term	10 years	10 years
Maximum
Lessee, Lease, Description [Line Items]
Operating lease term	15 years	15 years
Operating lease not yet commenced term	15 years	15 years

Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2020

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)Accumulated other comprehensive income (loss), which is included as a component of stockholders’ equity, is comprised of foreign currency translation adjustments and unrealized gains (losses) on cash flow hedges and investments, net of tax.

The changes in accumulated other comprehensive income (loss) by component were as follows (in thousands):


	Nine months ended September 30, 2020
	Foreign currency translation adjustments		Unrealized gain (loss) on cash flow hedges		Unrealized gain (loss) on investments		Total
Balance at January 1, 2020	$	(47,835)	$	(2,566)	$	70	$	(50,331)
Other comprehensive income (loss) before reclassifications, net of tax	(13,319)		(5,509)		27		(18,801)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	—		2,272		—		2,272
Net other comprehensive income (loss)	(13,319)		(3,237)		27		(16,529)
Balance at September 30, 2020	$	(61,154)	$	(5,803)	$	97	$	(66,860)


	Nine months ended September 30, 2019
	Foreign currency translation adjustments		Unrealized gain (loss) on cash flow hedges		Unrealized gain (loss) on investments		Total
Balance at January 1, 2019	$	(67,648)	$	5,293	$	—	$	(62,355)
Other comprehensive income (loss) before reclassifications, net of tax	(23,975)		(6,878)		77		(30,776)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	—		(1,406)				(1,406)
Net other comprehensive income (loss)	(23,975)		(8,284)		77		(32,182)
Balance at September 30, 2019	$	(91,623)	$	(2,991)	$	77	$	(94,537)

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Schedule of Roll Forward of Contingent Consideration

The following table provides a roll forward of the fair value of recurring Level 3 fair value measurements (in thousands):


	Nine months ended September 30, 2020
Balance at January 1, 2020	$	15,987

Settlement of contingent consideration liabilities	(1,088)

Changes in fair value	326
Foreign currency translation	(479)
Balance at September 30, 2020	$	14,746

Fair Value Measurements

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are classified using a three-level hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement. The hierarchy gives the highest priority to observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The Company uses observable inputs where relevant and whenever possible. The three levels of the hierarchy are defined as follows:

Level 1 — Fair value is derived using quoted prices from active markets for identical instruments.

Level 2 — Fair value is derived using quoted prices for similar instruments from active markets or for identical or similar instruments in markets that are not active; or, fair value is based on model-derived valuations in which all significant inputs and significant value drivers are observable from active markets.

Level 3 — Fair value is derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

The carrying value of cash and cash equivalents, restricted cash, accounts receivable, and accounts payable and accrued expenses approximates their fair value because of their short-term nature.

Financial instruments that potentially expose the Company to concentrations of credit risk consist mainly of cash and cash equivalents and accounts receivable. During the nine months ended September 30, 2020, the Company experienced a significant increase in cash and cash equivalents resulting from the $249.8 million net proceeds received from the capital raised. The Company mitigates its exposure by maintaining its cash and cash equivalents in financial institutions of high credit standing. The Company’s accounts receivable is derived primarily from the services it provides, and the related credit risk is dispersed across many clients in various industries with no single client accounting for more than 10% of the Company's net revenue or accounts receivable. No significant credit concentration risk existed at September 30, 2020.

Long-term Debt — The Company’s long-term debt is recorded at adjusted cost, net of original issue discounts and deferred financing costs. The fair value of the Company’s long-term debt is based on current bid prices, which approximates carrying value. As such, the Company’s long-term debt was classified as Level 1, as defined under U.S. GAAP. As of September 30, 2020, the carrying value and estimated fair value of long-term debt was $1.04 billion and $1.0 billion, respectively. As of December 31, 2019, the carrying value and estimated fair value of long-term debt was $1.05 billion.

Derivative Financial Instruments — The Company’s interest rate swap agreements and interest rate cap agreements are recorded at fair value, which were estimated using market-standard valuation models. Such models project future cash flows and discount the future amounts to a present value using market-based observable inputs. Additionally, the fair value of the interest rate swaps and interest rate caps included consideration of credit risk. The Company used a potential future exposure model to estimate this credit valuation adjustment (“CVA”). The inputs to the CVA were largely based on observable market data, with the exception of certain assumptions regarding credit worthiness. As the magnitude of the CVA was not a significant component of the fair value of the interest rate swaps and interest rate caps, it was not considered a significant input. The fair value of the interest rate swaps and interest rate caps are classified as Level 2, as defined under U.S. GAAP. As of September 30, 2020 and December 31, 2019, the fair value of the interest rate swap agreements was a liability of $6.2 million and $2.9 million, respectively, which were recorded in other long-term liabilities on the consolidated balance sheets. As of September 30, 2020, the fair value of the interest rate cap agreements was $0.3 million, which was recorded in other assets on the consolidated balance sheet.

Debt Securities — The Company’s investments in debt securities, which are classified as available-for-sale, consist of U.S. Treasury and U.S. government agency securities and certificate of deposits. These securities are held in escrow by the Company’s wholly-owned captive insurance company and were purchased with restricted cash. As such, these securities are not available to fund the Company’s operations. These securities are recorded at fair value using quoted prices available in active markets. As such, the Company’s debt securities are classified as Level 1, as defined under U.S. GAAP. As of September 30, 2020, the fair value of the available-for-sale debt securities was $21.0 million and was classified based on the instruments’ maturity dates, with $19.6 million included in prepaid expenses and other current assets and $1.4 million in other assets on the consolidated balance sheet. As of December 31, 2019, the fair value of the available-for-sale debt securities was $24.9 million, with $17.0 million included in prepaid expenses and other current assets and $7.9 million in other assets on the consolidated balance sheet. At September 30, 2020 and December 31, 2019, the amortized cost was $20.9 million and $24.9 million, respectively. The debt securities held at September 30, 2020 had remaining maturities ranging from less than one year to approximately 1.25 years. Unrealized gains and losses, net of tax, on available-for-sale debt securities are included in accumulated other comprehensive income (loss), and were immaterial for the three and nine months ended September 30, 2020 and 2019. The Company did not realize any gains or losses on its debt securities during the three and nine months ended September 30, 2020 and 2019.

Liabilities for Contingent Consideration — The Company is subject to contingent consideration arrangements in connection with certain business combinations as disclosed in Note 4, Acquisitions. Liabilities for contingent consideration are measured at fair value each reporting period, with the acquisition-date fair value included as part of the consideration payable for the related business combination and subsequent changes in fair value recorded to selling, general and administrative expenses in the Company’s consolidated statement of income. The fair value of the contingent consideration was calculated using a real options model based on probability-weighted outcomes of meeting certain future performance targets. The key inputs to the valuation are the projections of future financial results in relation to the business. The Company classified the contingent consideration liability as a Level 3 fair value measurement due to the lack of observable inputs used in the model.

The following table provides a roll forward of the fair value of recurring Level 3 fair value measurements (in thousands):


	Nine months ended September 30, 2020
Balance at January 1, 2020	$	15,987

Settlement of contingent consideration liabilities	(1,088)

Changes in fair value	326
Foreign currency translation	(479)
Balance at September 30, 2020	$	14,746

Nonrecurring Fair Value Estimates — During the three and nine months ended September 30, 2020, the Company recognized impairment losses of $1.7 million and $18.6 million, respectively, on fixed assets and operating lease right-of-use assets for certain centers. The impairment losses were included in cost of services on the consolidated statement of income, which have been allocated to the full service center-based child care segment. The estimated fair value of the applicable center long-lived assets was based on the fair value of the asset groups, calculated using a discounted cash flow model, with unobservable inputs. The fair value of the fixed assets was insignificant given the current and expected cash flows of these centers and the valuation of the lease right-of-use-assets considered the amount a market participant would pay for use of the asset. The Company classified the center long-lived assets as a Level 3 fair value measurement due to the lack of observable inputs used in the model.

During the nine months ended September 30, 2020, the Company recognized a $2.1 million impairment loss on an equity investment. The impairment loss was included in cost of services on the consolidated statement of income, which has been allocated to the back-up care segment. The estimated fair value of the equity investment was based on a qualitative assessment that considered the economic environment, business prospects and transaction information, among other factors considered. The Company classified the equity investment as a Level 3 fair value measurement due to the lack of observable inputs.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Leases (Tables)

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Components of Lease Expense

The components of lease expense were as follows (in thousands):


	Three months ended September 30,				Nine months ended September 30,
	2020		2019		2020		2019
Operating lease expense (1)	$	33,436	$	34,166	$	105,964	$	95,555
Variable lease expense (1)	6,419		8,752		21,772		25,738
Total lease expense	$	39,855	$	42,918	$	127,736	$	121,293

(1) Excludes short-term lease expense and sublease income, which were immaterial for the periods presented.

Schedule of Weighted Average Remaining Lease Term and Discount Rate

The weighted average remaining lease term and the weighted average discount rate were as follows:


	September 30, 2020	December 31, 2019
Weighted average remaining lease term (in years)	10	10
Weighted average discount rate	6.0%	6.2%

Maturities of Lease Liabilities

The following table summarizes the maturity of lease liabilities as of September 30, 2020 (in thousands):


	Operating Leases
Remainder of 2020	$	30,169
2021	134,729
2022	126,719
2023	118,311
2024	107,564
Thereafter	593,098
Total lease payments	1,110,590
Less imputed interest	(288,443)
Present value of lease liabilities	822,147
Less current portion of operating lease liabilities	(94,431)
Long-term operating lease liabilities	$	727,716

Condensed Consolidated Statements of Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenue	$ 337,920	$ 511,584	$ 1,138,015	$ 1,541,402
Cost of services	282,749	386,364	908,749	1,149,614
Gross profit	55,171	125,220	229,266	391,788
Selling, general and administrative expenses	53,301	53,964	159,917	166,330
Amortization of intangible assets	7,797	8,627	23,881	25,086
Income (loss) from operations	(5,927)	62,629	45,468	200,372
Interest expense — net	(9,186)	(10,955)	(28,521)	(34,626)
Income (loss) before income tax	(15,113)	51,674	16,947	165,746
Income tax benefit (expense)	8,459	(10,420)	7,490	(33,123)
Net income (loss)	$ (6,654)	$ 41,254	$ 24,437	$ 132,623
Weighted average common shares outstanding:
Cost of services, extensible list			us-gaap:ServiceMember
Common Stock
Earnings (loss) per common share:
Common stock — basic (in dollars per share)	$ (0.11)	$ 0.71	$ 0.41	$ 2.28
Common stock — diluted (in dollars per share)	$ (0.11)	$ 0.69	$ 0.41	$ 2.24
Weighted average common shares outstanding:
Common stock — basic (in shares)	60,196,795	57,935,118	59,253,044	57,820,596
Common stock — diluted (in shares)	60,196,795	59,132,689	60,001,730	58,941,612

Organization and Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Organization

Basis of Presentation

Recently Adopted Pronouncements and Recently Issued Pronouncements


	Nine months ended September 30, 2020
Beginning balance at January 1, 2020	$	1,226
Provision	3,625
Write-offs and recoveries	(1,024)
Ending balance at September 30, 2020	$	3,827

Fair Value Of Financial Instruments

Level 1 — Fair value is derived using quoted prices from active markets for identical instruments.

Level 3 — Fair value is derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

Segment Information (Tables)

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Income from Operations by Segment

Revenue and income (loss) from operations by reportable segment were as follows (in thousands):


	Full service center-based child care		Back-up care		Educational advisory and other services		Total
Three months ended September 30, 2020
Revenue	$	220,136	$	93,050	$	24,734	$	337,920
Income (loss) from operations (1)	(60,389)		46,464		7,998		(5,927)

Three months ended September 30, 2019
Revenue	$	410,789	$	80,059	$	20,736	$	511,584
Income from operations	36,961		19,711		5,957		62,629


	Full service center-based child care		Back-up care		Educational advisory and other services		Total
Nine months ended September 30, 2020
Revenue	$	768,833	$	303,121	$	66,061	$	1,138,015
Income (loss) from operations (1)	(115,484)		143,824		17,128		45,468

Nine months ended September 30, 2019
Revenue	$	1,267,689	$	214,802	$	58,911	$	1,541,402
Income from operations	130,318		55,262		14,792		200,372

Revenue Recognition

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue Recognition

REVENUE RECOGNITION

The Company’s services are primarily comprised of full service center-based child care, back-up care, and educational advisory services. The Company's back-up care offerings include in-center care, in-home care and self-sourced reimbursed care, a reimbursement program for clients to utilize in emergency-type situations. Revenue growth in the back-up care segment for the nine months ended September 30, 2020 was primarily attributable to the increased utilization for self-sourced reimbursed care as a result of the acute need for child care during the temporary closure of schools and child care centers. Revenue for self-sourced care is comprised of variable transaction fees paid by employer sponsors and is recognized on a net basis over time as services are provided.

Disaggregation of Revenue

The Company disaggregates revenue from contracts with customers into segments and geographical regions. Revenue disaggregated by segment and geographical region was as follows (in thousands):


	Full service center-based child care		Back-up care		Educational advisory and other services		Total
Three months ended September 30, 2020
North America	$	137,112	$	89,271	$	24,734	$	251,117
Europe	83,024		3,779		—		86,803
	$	220,136	$	93,050	$	24,734	$	337,920
Three months ended September 30, 2019
North America	$	298,770	$	75,245	$	20,736	$	394,751
Europe	112,019		4,814		—		116,833
	$	410,789	$	80,059	$	20,736	$	511,584


	Full service center-based child care		Back-up care		Educational advisory and other services		Total
Nine months ended September 30, 2020
North America	$	527,751	$	292,934	$	66,061	$	886,746
Europe	241,082		10,187		—		251,269
	$	768,833	$	303,121	$	66,061	$	1,138,015
Nine months ended September 30, 2019
North America	$	920,113	$	203,155	$	58,911	$	1,182,179
Europe	347,576		11,647		—		359,223
	$	1,267,689	$	214,802	$	58,911	$	1,541,402

The classification “North America” is comprised of the Company’s United States, Canada, and Puerto Rico operations and the classification “Europe” includes the United Kingdom, Netherlands, and India operations. During the three months ended September 30, 2020, the Company divested its child care center business and ceased to operate its two centers in Canada.

Deferred Revenue

The Company records deferred revenue when payments are received in advance of the Company’s performance under the contract, which is recognized as revenue as the performance obligation is satisfied. During the nine months ended September 30, 2020, $170.0 million was recognized as revenue related to the deferred revenue balance recorded at December 31, 2019. During the nine months ended September 30, 2019, $155.1 million was recognized as revenue related to the deferred revenue balance recorded at December 31, 2018.

Remaining Performance Obligations

The transaction price allocated to the remaining performance obligations relates to services that are paid or invoiced in advance. The Company does not disclose the value of unsatisfied performance obligations for contracts with an original contract term of one year or less, or for variable consideration allocated to the unsatisfied performance obligation of a series of services. The Company’s remaining performance obligations not subject to the practical expedients were not material.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Acquisitions	9 Months Ended
Acquisitions	Sep. 30, 2020
Business Combinations [Abstract]
Acquisitions	ACQUISITIONS The Company’s growth strategy includes expansion through strategic and synergistic acquisitions. The goodwill resulting from these acquisitions arises largely from synergies expected from combining the operations of the businesses acquired with our existing operations, as well as from benefits derived from gaining the related assembled workforce. 2020 Acquisitions During the nine months ended September 30, 2020, the Company acquired two centers and the Sittercity business, an online marketplace for families and caregivers, in the United States, in three separate business acquisitions, which were each accounted for as business combinations. These businesses were acquired for cash consideration of $8.1 million, net of cash acquired of $1.3 million, and consideration payable of $0.1 million, and include a trade name of $0.7 million that will be amortized over five years, as well as fixed assets and technology of $4.1 million. The Company recorded goodwill of $2.1 million related to the educational advisory and other services segment and $2.1 million related to the full service center-based child care segment, all of which will be deductible for tax purposes. The allocation of purchase price consideration is based on preliminary estimates of fair value; such estimates and assumptions are subject to change within the measurement period (up to one year from the acquisition date). As of September 30, 2020, the purchase price allocations for these acquisitions remain open as the Company gathers additional information regarding the assets acquired and the liabilities assumed. The operating results for the acquired businesses are included in the consolidated results of operations from the date of acquisition, and were not material to the Company’s financial results. During the nine months ended September 30, 2020, the Company paid $1.1 million for contingent consideration related to an acquisition completed in 2018, which had been recorded as a liability at the date of acquisition. 2019 Acquisitions During the year ended December 31, 2019, the Company acquired three centers and the tuition program management division of another company in the United States, four centers in the Netherlands, and one back-up care provider in the United Kingdom, in eight separate business acquisitions, which were each accounted for as business combinations. These businesses were acquired for cash consideration of $53.3 million, net of cash acquired of $1.2 million, and consideration payable of $0.7 million. Additionally, contingent consideration of up to $20.0 million may be payable over the next three years if certain future performance targets are met. The Company recorded a fair value estimate of the contingent consideration of $13.9 million. The Company recorded goodwill of $25.4 million related to the back-up care segment, which will not be deductible for tax purposes, $14.0 million related to the educational advisory and other services segment, which will be deductible for tax purposes, and $15.2 million related to the full service center-based child care segment, of which $3.9 million will be deductible for tax purposes. In addition, the Company recorded intangible assets of $14.6 million primarily consisting of customer relationships that will be amortized over five years, as well as fixed assets and technology of $3.1 million, and deferred tax liabilities of $1.9 million in relation to these acquisitions. The allocation of purchase price consideration is based on preliminary estimates of fair value; such estimates and assumptions are subject to change within the measurement period (up to one year from the acquisition date). As of September 30, 2020, the purchase price allocations for two of the 2019 acquisitions remain open as the Company gathers additional information regarding the assets acquired and the liabilities assumed. During the year ended December 31, 2019, the Company paid $4.2 million for deferred and contingent consideration, which were accrued at the date of acquisition. Of this settlement, $3.5 million was deferred consideration payable related to an acquisition completed in 2018, and $0.7 million was the final installment of contingent consideration related to an acquisition completed in 2016.

Credit Arrangements and Debt Obligations - Effect of Derivatives on Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Amount of gain (loss) recognized in other comprehensive income (loss)
Cash flow hedges	$ (1,015)	$ (960)	$ (7,536)	$ (9,409)
Income tax effect	273	258	2,027	2,531
Net of income taxes	(742)	(702)	(5,509)	(6,878)
Amount of net gain (loss) reclassified into earnings
Interest expense — net	(1,468)	443	(3,109)	1,923
Income tax expense	395	(119)	837	(517)
Net of income taxes	(1,073)	324	(2,272)	1,406
Total effect on other comprehensive income (loss)
Interest expense — net	453	(1,403)	(4,427)	(11,332)
Income tax expense	(122)	377	1,190	3,048
Net of income taxes	$ 331	$ (1,026)	$ (3,237)	$ (8,284)

Organization and Basis of Presentation - Additional Information (Details) $ / shares in Units, people in Thousands		1 Months Ended	3 Months Ended	9 Months Ended
	Apr. 21, 2020 USD ($) $ / shares shares	Apr. 30, 2020 USD ($)	Sep. 30, 2020 USD ($) Center $ / shares	Sep. 30, 2020 USD ($) Center people $ / shares	Sep. 30, 2019 USD ($)	May 31, 2020 USD ($)	May 07, 2020 USD ($)	Apr. 24, 2020 USD ($)	Apr. 23, 2020 USD ($)	Mar. 31, 2020 USD ($)	Dec. 31, 2019 USD ($) $ / shares	Dec. 31, 2018 USD ($)	Jun. 12, 2018 USD ($)
Line of Credit Facility [Line Items]
Stock repurchase program, authorized amount													$ 300,000,000
Stock repurchase program, remaining authorized repurchase amount			$ 194,900,000	$ 194,900,000
Number of shares of common stock issued and sold (in shares) \| shares	2,138,580
Common stock, par value (in dollars per share) \| $ / shares	$ 0.001		$ 0.001	$ 0.001							$ 0.001
Sale of stock, price per share (in usd per share) \| $ / shares	$ 116.90
Gross proceeds from offering	$ 249,800,000	$ 249,800,000		$ 249,800,000
Number of childcare and early education centers operated \| Center				1,026
Operated facilities, number of children and families served at capacity \| people				115
Number of childcare and early education centers open \| Center				900
Open facilities, number of children and families served at capacity \| people				100
Number of new centers added \| Center			5
Number of centers permanently closed \| Center			55
Net center reductions \| Center				58
Goodwill			$ 1,409,040,000	$ 1,409,040,000							$ 1,412,873,000	$ 1,347,611,000
Trade names			180,881,000	180,881,000							$ 181,091,000
Impairment losses			1,700,000	18,609,000	$ 0
Governmental assistance, reduction to cost of services			20,300,000	61,500,000
Prepaid expenses and other current assets
Line of Credit Facility [Line Items]
Due from government assistance programs			16,000,000.0	16,000,000.0
Accounts payable and accrued liabilities
Line of Credit Facility [Line Items]
Payroll tax deferrals			3,000,000.0	3,000,000.0
Other long-term liabilities
Line of Credit Facility [Line Items]
Payroll tax deferrals			$ 12,400,000	$ 12,400,000
Revolving Credit Facility \| Senior Credit Facilities
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity						$ 400,000,000	$ 400,000,000	$ 385,000,000	$ 225,000,000	$ 225,000,000
United States
Line of Credit Facility [Line Items]
Number of childcare and early education centers reopened after temporary closure \| Center				540
United Kingdom
Line of Credit Facility [Line Items]
Number of childcare and early education centers reopened after temporary closure \| Center				300
Netherlands
Line of Credit Facility [Line Items]
Number of childcare and early education centers reopened after temporary closure \| Center				62
Canada
Line of Credit Facility [Line Items]
Number of centers divested \| Center			2

Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 30, 2020

Equity [Abstract]

Schedule of Changes in Accumulated Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive income (loss) by component were as follows (in thousands):


	Nine months ended September 30, 2020
	Foreign currency translation adjustments		Unrealized gain (loss) on cash flow hedges		Unrealized gain (loss) on investments		Total
Balance at January 1, 2020	$	(47,835)	$	(2,566)	$	70	$	(50,331)
Other comprehensive income (loss) before reclassifications, net of tax	(13,319)		(5,509)		27		(18,801)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	—		2,272		—		2,272
Net other comprehensive income (loss)	(13,319)		(3,237)		27		(16,529)
Balance at September 30, 2020	$	(61,154)	$	(5,803)	$	97	$	(66,860)


	Nine months ended September 30, 2019
	Foreign currency translation adjustments		Unrealized gain (loss) on cash flow hedges		Unrealized gain (loss) on investments		Total
Balance at January 1, 2019	$	(67,648)	$	5,293	$	—	$	(62,355)
Other comprehensive income (loss) before reclassifications, net of tax	(23,975)		(6,878)		77		(30,776)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	—		(1,406)				(1,406)
Net other comprehensive income (loss)	(23,975)		(8,284)		77		(32,182)
Balance at September 30, 2019	$	(91,623)	$	(2,991)	$	77	$	(94,537)

Condensed Consolidated Statements Of Changes In Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Treasury Stock, at Cost	Accumulated Other Comprehensive Income (Loss)	Retained Earnings
Beginning balance (in shares) at Dec. 31, 2018		57,494,468
Beginning balance at Dec. 31, 2018	$ 779,477	$ 57	$ 648,651	$ 0	$ (62,355)	$ 193,124
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	12,339		12,339
Issuance of common stock under the Equity Incentive Plan (in shares)		554,758
Issuance of common stock under the Equity Incentive Plan	21,184	$ 1	21,183
Shares received in net share settlement of stock option exercises and vesting of restricted stock (in shares)		(51,658)
Shares received in net share settlement of stock option exercises and vesting of restricted stock	(6,531)		(6,531)
Purchase of treasury stock	(12,415)			(12,415)
Retirement of treasury stock (in shares)		(80,001)
Retirement of treasury stock	0	$ 0	(12,415)	12,415
Other comprehensive income (loss)	(32,182)				(32,182)
Net income (loss)	132,623					132,623
Ending balance (in shares) at Sep. 30, 2019		57,917,567
Ending balance at Sep. 30, 2019	894,495	$ 58	663,227	0	(94,537)	325,747
Beginning balance (in shares) at Jun. 30, 2019		57,898,902
Beginning balance at Jun. 30, 2019	878,362	$ 58	667,154	0	(73,343)	284,493
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	4,721		4,721
Issuance of common stock under the Equity Incentive Plan (in shares)		100,462
Issuance of common stock under the Equity Incentive Plan	4,128		4,128
Shares received in net share settlement of stock option exercises and vesting of restricted stock (in shares)		(6,296)
Shares received in net share settlement of stock option exercises and vesting of restricted stock	(991)		(991)
Purchase of treasury stock	(11,785)			(11,785)
Retirement of treasury stock (in shares)		(75,501)
Retirement of treasury stock	0		(11,785)	11,785
Other comprehensive income (loss)	(21,194)				(21,194)
Net income (loss)	41,254					41,254
Ending balance (in shares) at Sep. 30, 2019		57,917,567
Ending balance at Sep. 30, 2019	894,495	$ 58	663,227	0	(94,537)	325,747
Beginning balance (in shares) at Dec. 31, 2019		57,884,020
Beginning balance at Dec. 31, 2019	971,268	$ 58	648,031	0	(50,331)	373,510
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)		2,138,580
Issuance of common stock	249,790	$ 2	249,788
Stock-based compensation expense	15,138		15,138
Issuance of common stock under the Equity Incentive Plan (in shares)		535,930
Issuance of common stock under the Equity Incentive Plan	24,113	$ 1	24,112
Shares received in net share settlement of stock option exercises and vesting of restricted stock (in shares)		(64,048)
Shares received in net share settlement of stock option exercises and vesting of restricted stock	(8,896)		(8,896)
Purchase of treasury stock	(32,208)			(32,208)
Retirement of treasury stock (in shares)		(231,313)
Retirement of treasury stock	0	$ (1)	(32,207)	32,208
Other comprehensive income (loss)	(16,529)				(16,529)
Net income (loss)	24,437					24,437
Ending balance (in shares) at Sep. 30, 2020		60,263,169
Ending balance at Sep. 30, 2020	1,227,113	$ 60	895,966	0	(66,860)	397,947
Beginning balance (in shares) at Jun. 30, 2020		60,152,187
Beginning balance at Jun. 30, 2020	1,198,275	$ 60	885,373	0	(91,759)	404,601
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	5,700		5,700
Issuance of common stock under the Equity Incentive Plan (in shares)		119,778
Issuance of common stock under the Equity Incentive Plan	6,074		6,074
Shares received in net share settlement of stock option exercises and vesting of restricted stock (in shares)		(8,796)
Shares received in net share settlement of stock option exercises and vesting of restricted stock	(1,181)		(1,181)
Other comprehensive income (loss)	24,899				24,899
Net income (loss)	(6,654)					(6,654)
Ending balance (in shares) at Sep. 30, 2020		60,263,169
Ending balance at Sep. 30, 2020	$ 1,227,113	$ 60	$ 895,966	$ 0	$ (66,860)	$ 397,947

Goodwill and Intangible Assets - Estimated Amortization Expense Related to Intangible Assets (Details) $ in Thousands	Sep. 30, 2020 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2020	$ 7,778
2021	28,416
2022	26,045
2023	25,144
2024	$ 11,206

Revenue Recognition - Additional Information (Details) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2020 Center	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)
Disaggregation of Revenue [Line Items]
Deferred revenue, revenue recognized \| $		$ 170.0	$ 155.1
Canada
Disaggregation of Revenue [Line Items]
Number of centers divested \| Center	2

Credit Arrangements and Debt Obligations - Outstanding Borrowing (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Schedule Of Borrowings [Line Items]
Less current maturities	$ (10,750)	$ (10,750)
Long-term debt	1,022,489	1,028,049
Term Loan
Schedule Of Borrowings [Line Items]
Term loans	1,037,375	1,045,438
Deferred financing costs and original issue discount	(4,136)	(6,639)
Total debt	1,033,239	1,038,799
Less current maturities	(10,750)	(10,750)
Long-term debt	$ 1,022,489	$ 1,028,049

Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Leases [Abstract]
Remainder of 2020	$ 30,169
2021	134,729
2022	126,719
2023	118,311
2024	107,564
Thereafter	593,098
Total lease payments	1,110,590
Less imputed interest	(288,443)
Present value of lease liabilities	822,147
Less current portion of operating lease liabilities	(94,431)	$ (83,123)
Long-term operating lease liabilities	$ 727,716	$ 685,910

Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands		1 Months Ended	3 Months Ended	9 Months Ended
	Apr. 21, 2020	Apr. 30, 2020	Sep. 30, 2020	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Fair Value Measurements Disclosure [Line Items]
Gross proceeds from offering	$ 249,800	$ 249,800		$ 249,800
Available-for-sale debt securities			$ 21,000	21,000		$ 24,900
Amortized cost			20,900	20,900		24,900
Impairment losses			$ 1,700	18,609	$ 0
Impairment losses on equity investment				$ 2,128	$ 0
Minimum
Fair Value Measurements Disclosure [Line Items]
Debt securities, remaining maturity term			1 year	1 year
Maximum
Fair Value Measurements Disclosure [Line Items]
Debt securities, remaining maturity term			1 year 3 months	1 year 3 months
Prepaid expenses and other current assets
Fair Value Measurements Disclosure [Line Items]
Available-for-sale debt securities			$ 19,600	$ 19,600		17,000
Other assets
Fair Value Measurements Disclosure [Line Items]
Available-for-sale debt securities			1,400	1,400		7,900
Fair Value, Inputs, Level 1 \| Estimate of Fair Value Measurement
Fair Value Measurements Disclosure [Line Items]
Fair value of long-term debt			1,000,000	1,000,000		1,050,000
Fair Value, Inputs, Level 2 \| Estimate of Fair Value Measurement \| Interest Rate Swap
Fair Value Measurements Disclosure [Line Items]
Derivative liability			6,200	6,200		2,900
Fair Value, Inputs, Level 2 \| Estimate of Fair Value Measurement \| Interest rate caps
Fair Value Measurements Disclosure [Line Items]
Derivative asset			300	300
Term Loan
Fair Value Measurements Disclosure [Line Items]
Carrying value of long-term debt			$ 1,037,375	$ 1,037,375		$ 1,045,438

Leases

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Leases

LEASES

The Company has operating leases for certain of its full service and back-up child care and early education centers, corporate offices, call centers, and to a lesser extent, various office equipment, in the United States, the United Kingdom, and the Netherlands. Most of the leases expire within 10 to 15 years and many contain renewal options and/or termination provisions. The Company does not have any finance leases as of September 30, 2020.

Lease Expense

The components of lease expense were as follows (in thousands):


	Three months ended September 30,				Nine months ended September 30,
	2020		2019		2020		2019
Operating lease expense (1)	$	33,436	$	34,166	$	105,964	$	95,555
Variable lease expense (1)	6,419		8,752		21,772		25,738
Total lease expense	$	39,855	$	42,918	$	127,736	$	121,293

(1) Excludes short-term lease expense and sublease income, which were immaterial for the periods presented.

Operating lease expense for the three and nine months ended September 30, 2020 includes an impairment loss on operating lease right-of-use assets of $0.3 million and $5.5 million, respectively. Refer to Note 9, Fair Value Measurements, for additional information.

Other Information

The weighted average remaining lease term and the weighted average discount rate were as follows:


	September 30, 2020	December 31, 2019
Weighted average remaining lease term (in years)	10	10
Weighted average discount rate	6.0%	6.2%

Maturity of Lease Liabilities

The following table summarizes the maturity of lease liabilities as of September 30, 2020 (in thousands):


	Operating Leases
Remainder of 2020	$	30,169
2021	134,729
2022	126,719
2023	118,311
2024	107,564
Thereafter	593,098
Total lease payments	1,110,590
Less imputed interest	(288,443)
Present value of lease liabilities	822,147
Less current portion of operating lease liabilities	(94,431)
Long-term operating lease liabilities	$	727,716

As of September 30, 2020, the Company had entered into additional operating leases that have not yet commenced with total fixed payment obligations of $38.7 million. The leases are expected to commence between the fourth quarter of fiscal 2020 and the fourth quarter of fiscal 2021 and have initial lease terms of approximately 10 to 15 years.

Lease Modifications

In response to the broad effects of COVID-19, the Company re-negotiated certain payment terms with lessors to mitigate the impact on the Company’s financial position and operations. As of September 30, 2020, the Company had deferred lease payments of $12.1 million. The majority of these lease payments are payable over the next year. On April 10, 2020, the FASB issued guidance for lease concessions provided to lessees in response to the effects of COVID-19. Such guidance allows lessees to make an election not to evaluate whether a lease concession provided by a lessor should be accounted for as a lease modification, in the event the concession does not result in a substantial increase in the rights of the lessor or the obligations of the lessee. Such concessions would be recorded as negative lease expense in the period of relief. The Company elected this practical expedient in accounting for lease concessions provided for our center lease agreements and the impact was immaterial.

Acquisitions - Additional Information (Details) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2020 USD ($) Center Business Business_Acquisition	Sep. 30, 2019 USD ($)	Dec. 31, 2019 USD ($) Center Business	Dec. 31, 2018 USD ($)
Business Acquisition [Line Items]
Payments to acquire business, net of cash acquired	$ 8,101	$ 30,841
Consideration payable	0	16,621
Goodwill	1,409,040		$ 1,412,873	$ 1,347,611
Payment for contingent consideration	$ 1,088	$ 4,200
Trade names
Business Acquisition [Line Items]
Finite-lived intangible assets amortization period	6 years		6 years
Customer relationships
Business Acquisition [Line Items]
Finite-lived intangible assets amortization period	14 years		14 years
Series of Individually Immaterial Business Acquisitions
Business Acquisition [Line Items]
Number of businesses acquired \| Business	3		8
Payments to acquire business, net of cash acquired	$ 8,100		$ 53,300
Cash acquired from acquisition	1,300		1,200
Consideration payable	100		700
Fixed assets and technology acquired	4,100
Payment for contingent consideration	$ 1,100		4,200
Contingent consideration (up to)			$ 20,000
Contingent consideration, term			3 years
Preliminary fair value estimate of contingent consideration			$ 13,900
Intangible assets			14,600
Fixed assets and technology acquired			3,100
Deferred tax liability			1,900
Number of business acquisitions open \| Business_Acquisition	2
Series of Individually Immaterial Business Acquisitions \| Series Of Individually Immaterial Business Acquisitions Completed In 2018
Business Acquisition [Line Items]
Payment for contingent consideration			3,500
Series of Individually Immaterial Business Acquisitions \| Series Of Individually Immaterial Business Acquisitions Completed In 2016
Business Acquisition [Line Items]
Payment for contingent consideration			$ 700
Series of Individually Immaterial Business Acquisitions \| Trade names
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	$ 700
Finite-lived intangible assets amortization period	5 years
Series of Individually Immaterial Business Acquisitions \| Customer relationships
Business Acquisition [Line Items]
Finite-lived intangible assets amortization period			5 years
Series of Individually Immaterial Business Acquisitions \| Educational advisory and other services
Business Acquisition [Line Items]
Goodwill	$ 2,100		$ 14,000
Series of Individually Immaterial Business Acquisitions \| Full service center-based child care
Business Acquisition [Line Items]
Goodwill	$ 2,100		15,200
Amount of goodwill expected to be deductible for tax purposes			3,900
Series of Individually Immaterial Business Acquisitions \| Back-Up Care Services
Business Acquisition [Line Items]
Goodwill			$ 25,400
Series of Individually Immaterial Business Acquisitions \| United States
Business Acquisition [Line Items]
Number of centers acquired \| Center	2		3
Series of Individually Immaterial Business Acquisitions \| Netherlands
Business Acquisition [Line Items]
Number of centers acquired \| Center			4
Series of Individually Immaterial Business Acquisitions \| United Kingdom
Business Acquisition [Line Items]
Number of centers acquired \| Center			1

Organization and Basis of Presentation - Schedule of Allowance For Credit Loss (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020 USD ($)
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 1,226
Provision	3,625
Write-offs and recoveries	(1,024)
Ending balance	$ 3,827

Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

GOODWILL AND INTANGIBLE ASSETS

The changes in the carrying amount of goodwill were as follows (in thousands):


	Full service center-based child care		Back-up care		Educational advisory and other services		Total
Balance at January 1, 2019	$	1,155,705	$	168,105	$	23,801	$	1,347,611
Additions from acquisitions	15,228		25,350		14,000		54,578
Adjustments to prior year acquisitions	(83)		—		—		(83)
Effect of foreign currency translation	10,380		387		—		10,767
Balance at December 31, 2019	1,181,230		193,842		37,801		1,412,873
Additions from acquisitions	2,117		—		2,074		4,191
Adjustments to prior year acquisitions	(383)		—		(125)		(508)
Effect of foreign currency translation	(6,742)		(774)		—		(7,516)
Balance at September 30, 2020	$	1,176,222	$	193,068	$	39,750	$	1,409,040

The Company also has intangible assets, which consisted of the following at September 30, 2020 and December 31, 2019 (in thousands):


September 30, 2020	Weighted average amortization period	Cost		Accumulated amortization		Net carrying amount
Definite-lived intangible assets:
Customer relationships	14 years	$	404,132	$	(305,757)	$	98,375
Trade names	6 years	11,133		(9,163)		1,970
		415,265		(314,920)		100,345
Indefinite-lived intangible assets:
Trade names	N/A	180,881		—		180,881
		$	596,146	$	(314,920)	$	281,226


December 31, 2019	Weighted average amortization period	Cost		Accumulated amortization		Net carrying amount
Definite-lived intangible assets:
Customer relationships	14 years	$	404,667	$	(283,597)	$	121,070
Trade names	6 years	10,656		(8,144)		2,512
		415,323		(291,741)		123,582
Indefinite-lived intangible assets:
Trade names	N/A	181,091		—		181,091
		$	596,414	$	(291,741)	$	304,673

The Company estimates that it will record amortization expense related to intangible assets existing as of September 30, 2020 as follows (in thousands):


	Estimated amortization expense
Remainder of 2020	$	7,778
2021	$	28,416
2022	$	26,045
2023	$	25,144
2024	$	11,206

Credit Arrangements and Debt Obligations - Future Principal Payments Under New Term Loan (Details) - Term Loan $ in Thousands	Sep. 30, 2020 USD ($)
Debt Instrument [Line Items]
Remainder of 2020	$ 2,687
2021	10,750
2022	10,750
2023	1,013,188
Total debt	$ 1,037,375