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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________________________________________
FORM 10-Q
__________________________________________________
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
For the quarterly period ended September 30, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
For the transition period from                      to                     
Commission File Number: 001-35780
__________________________________________________
BRIGHT HORIZONS FAMILY SOLUTIONS INC.
(Exact name of registrant as specified in its charter)
__________________________________________________
Delaware80-0188269
(State or other jurisdiction
of incorporation)
(I.R.S. Employer
Identification Number)
2 Wells Avenue
Newton, Massachusetts
02459
(Address of principal executive offices)(Zip code)
Registrant’s telephone number, including area code: (617) 673-8000
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.001 par value per shareBFAMNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.                                 Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).                                                 Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).         Yes      No  
As of October 26, 2022, there were 57,750,017 shares of common stock outstanding.


BRIGHT HORIZONS FAMILY SOLUTIONS INC.
FORM 10-Q
For the quarterly period ended September 30, 2022
TABLE OF CONTENTS
2

PART I. FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements (Unaudited)
BRIGHT HORIZONS FAMILY SOLUTIONS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
September 30, 2022December 31, 2021
(In thousands, except share data)
ASSETS
Current assets:
Cash and cash equivalents$32,604 $260,980 
Accounts receivable — net of allowance for credit losses of $3,044 and $3,006 at September 30, 2022 and December 31, 2021, respectively
194,410 210,971 
Prepaid expenses and other current assets75,830 68,320 
Total current assets302,844 540,271 
Fixed assets — net561,233 598,134 
Goodwill1,674,466 1,481,725 
Other intangible assets — net254,729 251,032 
Operating lease right-of-use assets795,903 696,425 
Other assets126,955 72,460 
Total assets$3,716,130 $3,640,047 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt$16,000 $16,000 
Borrowings under revolving credit facility113,000  
Accounts payable and accrued expenses232,092 197,366 
Current portion of operating lease liabilities90,710 87,341 
Deferred revenue193,240 258,438 
Other current liabilities44,974 63,030 
Total current liabilities690,016 622,175 
Long-term debt — net965,284 976,396 
Operating lease liabilities804,556 703,911 
Other long-term liabilities196,734 100,091 
Deferred revenue9,954 9,689 
Deferred income taxes55,830 48,509 
Total liabilities2,722,374 2,460,771 
Stockholders’ equity:
Preferred stock, $0.001 par value; 25,000,000 shares authorized; no shares issued or outstanding at September 30, 2022 and December 31, 2021
  
     Common stock, $0.001 par value; 475,000,000 shares authorized; 57,501,048 and 59,305,160 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively
58 59 
Additional paid-in capital590,608 745,615 
Accumulated other comprehensive loss(130,470)(37,359)
Retained earnings533,560 470,961 
Total stockholders’ equity993,756 1,179,276 
Total liabilities and stockholders’ equity$3,716,130 $3,640,047 
See accompanying notes to condensed consolidated financial statements.
3

BRIGHT HORIZONS FAMILY SOLUTIONS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three months ended September 30,Nine months ended September 30,
2022202120222021
(In thousands, except share data)
Revenue$540,215 $460,333 $1,490,965 $1,292,651 
Cost of services411,406 340,068 1,123,572 985,046 
Gross profit128,809 120,265 367,393 307,605 
Selling, general and administrative expenses80,812 67,135 226,231 191,703 
Amortization of intangible assets8,948 7,140 23,127 22,192 
Income from operations39,049 45,990 118,035 93,710 
Loss on foreign currency forward contracts  (5,917) 
Interest expense — net(11,707)(9,153)(26,695)(27,749)
Income before income tax27,342 36,837 85,423 65,961 
Income tax expense(9,094)(10,018)(22,824)(13,195)
Net income$18,248 $26,819 $62,599 $52,766 
Earnings per common share:
Common stock — basic$0.32 $0.44 $1.06 $0.87 
Common stock — diluted$0.31 $0.44 $1.06 $0.86 
Weighted average common shares outstanding:
Common stock — basic57,664,895 60,218,090 58,624,221 60,454,855 
Common stock — diluted57,740,013 60,743,765 58,802,742 61,058,843 
See accompanying notes to condensed consolidated financial statements.
4

BRIGHT HORIZONS FAMILY SOLUTIONS INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
Three months ended September 30,Nine months ended September 30,
2022202120222021
(In thousands)
Net income$18,248 $26,819 $62,599 $52,766 
Other comprehensive income (loss):
Foreign currency translation adjustments(67,483)(14,634)(130,834)(13,935)
Unrealized gain on cash flow hedges and investments, net of tax14,016 924 37,723 3,640 
Total other comprehensive loss(53,467)(13,710)(93,111)(10,295)
Comprehensive income (loss)$(35,219)$13,109 $(30,512)$42,471 
See accompanying notes to condensed consolidated financial statements.
5

BRIGHT HORIZONS FAMILY SOLUTIONS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(Unaudited)
Three months ended September 30, 2022
Common StockAdditional
Paid-in Capital
Treasury Stock,
at Cost
Accumulated Other
Comprehensive
Income (Loss)
Retained EarningsTotal
Stockholders’ Equity
SharesAmount
(In thousands, except share data)
Balance at July 1, 202258,622,868 $59 $680,618 $ $(77,003)$515,312 $1,118,986 
Stock-based compensation expense7,514 7,514 
Issuance of common stock under the Equity Incentive Plan13,400 — 859 859 
Shares received in net share settlement of stock option exercises and vesting of restricted stock(3,008)— (278)(278)
Purchase of treasury stock(98,106)(98,106)
Retirement of treasury stock(1,132,212)(1)(98,105)98,106  
Other comprehensive loss(53,467)(53,467)
Net income18,248 18,248 
Balance at September 30, 202257,501,048 $58 $590,608 $ $(130,470)$533,560 $993,756 
Three months ended September 30, 2021
Common StockAdditional
Paid-in Capital
Treasury Stock,
at Cost
Accumulated Other
Comprehensive
Income (Loss)
Retained EarningsTotal
Stockholders’ Equity
SharesAmount
(In thousands, except share data)
Balance at July 1, 202160,278,756 $60 $868,289 $ $(23,654)$426,449 $1,271,144 
Stock-based compensation expense5,600 5,600 
Issuance of common stock under the Equity Incentive Plan51,895 — 3,640 3,640 
Shares received in net share settlement of stock option exercises and vesting of restricted stock(2,036)— (287)(287)
Purchase of treasury stock(33,977)(33,977)
Retirement of treasury stock(236,510)— (33,977)33,977  
Other comprehensive loss(13,710)(13,710)
Net income26,819 26,819 
Balance at September 30, 202160,092,105 $60 $843,265 $ $(37,364)$453,268 $1,259,229 
See accompanying notes to condensed consolidated financial statements.
6

BRIGHT HORIZONS FAMILY SOLUTIONS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(Unaudited)
Nine months ended September 30, 2022
Common StockAdditional
Paid-in Capital
Treasury Stock,
at Cost
Accumulated Other
Comprehensive
Income (Loss)
Retained EarningsTotal
Stockholders’ Equity
SharesAmount
(In thousands, except share data)
Balance at January 1, 202259,305,160 $59 $745,615 $ $(37,359)$470,961 $1,179,276 
Stock-based compensation expense21,282 21,282 
Issuance of common stock under the Equity Incentive Plan229,354 1 11,483 11,484 
Shares received in net share settlement of stock option exercises and vesting of restricted stock(47,320)— (5,432)(5,432)
Purchase of treasury stock(182,342)(182,342)
Retirement of treasury stock(1,986,146)(2)(182,340)182,342  
Other comprehensive loss(93,111)(93,111)
Net income62,599 62,599 
Balance at September 30, 202257,501,048 $58 $590,608 $ $(130,470)$533,560 $993,756 
Nine months ended September 30, 2021
Common StockAdditional
Paid-in Capital
Treasury Stock,
at Cost
Accumulated Other
Comprehensive
Income (Loss)
Retained EarningsTotal
Stockholders’ Equity
SharesAmount
(In thousands, except share data)
Balance at January 1, 202160,466,168 $60 $910,304 $ $(27,069)$400,502 $1,283,797 
Stock-based compensation expense16,735 16,735 
Issuance of common stock under the Equity Incentive Plan423,456 1 27,977 27,978 
Shares received in net share settlement of stock option exercises and vesting of restricted stock(46,009)— (7,429)(7,429)
Purchase of treasury stock(104,323)(104,323)
Retirement of treasury stock(751,510)(1)(104,322)104,323  
Other comprehensive loss(10,295)(10,295)
Net income52,766 52,766 
Balance at September 30, 202160,092,105 $60 $843,265 $ $(37,364)$453,268 $1,259,229 
See accompanying notes to condensed consolidated financial statements.
7

BRIGHT HORIZONS FAMILY SOLUTIONS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine months ended September 30,
20222021
(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income$62,599 $52,766 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization77,958 82,858 
Stock-based compensation expense21,282 16,735 
Loss on foreign currency forward contracts5,917  
Deferred income taxes(8,209)1,573 
Other non-cash adjustments — net1,894 3,369 
Changes in assets and liabilities:
Accounts receivable16,369 15,836 
Prepaid expenses and other current assets(7,204)(4,095)
Accounts payable and accrued expenses27,122 8,911 
Income taxes(6,278)(11,269)
Deferred revenue(64,235)15,360 
Leases703 (3,378)
Other assets11,453 3,233 
Other current and long-term liabilities(8,393)3,348 
Net cash provided by operating activities130,978 185,247 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of fixed assets(48,228)(47,350)
Proceeds from the disposal of fixed assets10,456 5,840 
Purchases of debt securities and other investments(13,838)(20,032)
Proceeds from the maturity of debt securities and sale of other investments16,009 17,730 
Settlement of foreign currency forward contracts(5,917) 
Payments and settlements for acquisitions — net of cash acquired(209,421)(18,914)
Net cash used in investing activities(250,939)(62,726)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit facility167,000  
Payments under revolving credit facility(54,000) 
Principal payments of long-term debt(12,000)(8,063)
Payments of debt issuance costs (2,057)
Purchase of treasury stock(182,570)(102,184)
Proceeds from issuance of common stock upon exercise of options and restricted stock upon purchase11,412 31,820 
Taxes paid related to the net share settlement of stock options and restricted stock(5,432)(7,429)
Payments of contingent consideration for acquisitions(13,865)(196)
Net cash used in financing activities(89,455)(88,109)
Effect of exchange rates on cash, cash equivalents and restricted cash(4,018)(2,120)
Net increase (decrease) in cash, cash equivalents and restricted cash(213,434)32,292 
Cash, cash equivalents and restricted cash — beginning of period265,281 388,465 
Cash, cash equivalents and restricted cash — end of period$51,847 $420,757 
See accompanying notes to condensed consolidated financial statements.
8

BRIGHT HORIZONS FAMILY SOLUTIONS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(Unaudited)
Nine months ended September 30,
20222021
(In thousands)
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO THE CONSOLIDATED BALANCE SHEETS:
Cash and cash equivalents$32,604 $412,402 
Restricted cash and cash equivalents, included in prepaid expenses and other current assets7,906 8,355 
Restricted cash and cash equivalents, included in other assets11,337  
Total cash, cash equivalents and restricted cash — end of period$51,847 $420,757 
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash payments of interest$24,973 $25,193 
Cash payments of income taxes$38,013 $23,427 
Cash paid for amounts included in the measurement of lease liabilities$104,809 $106,878 
NON-CASH TRANSACTIONS:
Fixed asset purchases recorded in accounts payable and accrued expenses$2,121 $2,402 
Deferred or contingent consideration issued for acquisitions$97,653 $7,337 
Operating right-of-use assets obtained in exchange for operating lease liabilities — net$44,575 $46,653 
Restricted stock reclassified from other current liabilities to equity upon vesting$3,160 $4,178 
Treasury stock purchases in other current liabilities$ $2,139 
See accompanying notes to condensed consolidated financial statements.
9

BRIGHT HORIZONS FAMILY SOLUTIONS INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. ORGANIZATION AND BASIS OF PRESENTATION
Organization — Bright Horizons Family Solutions Inc. (“Bright Horizons” or the “Company”) provides center-based early education and child care, 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, Australia, Puerto Rico and India. 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.
On July 1, 2022, the Company acquired Only About Children, an operator of approximately 75 child care centers in Australia. Refer to Note 4, Acquisitions, for additional information.
Basis of Presentation — The accompanying unaudited condensed consolidated balance sheet as of September 30, 2022 and the condensed consolidated statements of income, comprehensive income (loss), changes in stockholders’ equity, and cash flows for the interim periods ended September 30, 2022 and 2021 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, 2021. The consolidated financial statements include the accounts of the Company and its subsidiaries. Intercompany balances and transactions have been eliminated in consolidation.
In the opinion of the Company’s management, the Company’s unaudited condensed consolidated balance sheet as of September 30, 2022 and the condensed consolidated statements of income, comprehensive income (loss), changes in stockholders’ equity, and cash flows for the interim periods ended September 30, 2022 and 2021, 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 $400 million of the Company’s outstanding common stock effective December 16, 2021. The share repurchase program has no expiration date and replaced the prior June 2018 authorization. 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. During the nine months ended September 30, 2022, the Company repurchased 2.0 million shares for $182.3 million. At September 30, 2022, $198.3 million remained available under the repurchase program. During the nine months ended September 30, 2021, 0.8 million shares were repurchased for $104.3 million. All repurchased shares have been retired.
Government Support — During the nine months ended September 30, 2022 and 2021, the Company participated in government support programs that were enacted in response to the economic impact of the COVID-19 pandemic, including availing itself of certain tax deferrals, tax credits and federal block grant funding in the United States, as well as employee wage support in the United Kingdom.
During the nine months ended September 30, 2022 and 2021, $68.6 million and $32.2 million, respectively, was recorded as a reduction to cost of services in relation to these benefits, of which $25.6 million and $9.3 million, respectively, reduced the operating subsidy revenue due from employers for the related child care centers. Additionally during the nine months ended September 30, 2022, amounts received for tuition support of $4.6 million were recorded to revenue. As of September 30, 2022 and December 31, 2021, $2.9 million and $3.3 million, respectively, was recorded in prepaid expenses and other current assets on the consolidated balance sheet for amounts due from government support programs. As of September 30, 2022 and December 31, 2021, $6.1 million and $3.9 million, respectively, was recorded to other current liabilities related to government support received related to future periods, and as of September 30, 2022 and December 31, 2021, payroll tax deferrals of $7.6 million and $7.0 million, respectively, were recorded in accounts payable and accrued expenses on the consolidated balance sheet.
10

2. REVENUE RECOGNITION
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:
Full service
center-based
child care
Back-up careEducational
advisory and
other services
Total
(In thousands)
Three months ended September 30, 2022
North America$243,747 $119,555 $31,053 $394,355 
International136,809 9,051  145,860 
$380,556 $128,606 $31,053 $540,215 
Three months ended September 30, 2021
North America$221,297 $91,237 $27,253 $339,787 
International112,586 7,960  120,546 
$333,883 $99,197 $27,253 $460,333 
Full service
center-based
child care
Back-up careEducational
advisory and
other services
Total
(In thousands)
Nine months ended September 30, 2022
North America$744,806 $280,580 $83,997 $1,109,383 
International360,998 20,584  381,582 
$1,105,804 $301,164 $83,997 $1,490,965 
Nine months ended September 30, 2021
North America$630,078 $239,079 $76,986 $946,143 
International328,551 17,957  346,508 
$958,629 $257,036 $76,986 $1,292,651 
The classification “North America” is comprised of the Company’s United States and Puerto Rico operations and the classification “International” includes the Company’s United Kingdom, Netherlands, Australia and India operations. On July 1, 2022, the Company acquired Only About Children, an operator of approximately 75 child care centers in Australia. Refer to Note 4, Acquisitions, for additional information.
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, 2022 and 2021, $224.6 million and $169.2 million was recognized as revenue related to the deferred revenue balance recorded at December 31, 2021 and December 31, 2020, respectively.
Remaining Performance Obligations
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 transaction price allocated to the remaining performance obligations relates to services that are paid or invoiced in advance. The Company’s remaining performance obligations not subject to the practical expedients were not material.
3. LEASES
The Company has operating leases for certain of its full service and back-up early education and child care centers, corporate offices, call centers, and to a lesser extent, various office equipment, in the United States, the United Kingdom, the Netherlands, and Australia. Most of the leases expire within 10 to 15 years and many contain renewal options and/or termination provisions. As of September 30, 2022 and December 31, 2021, there were no material finance leases.
11

Lease Expense
The components of lease expense were as follows:
Three months ended September 30,Nine months ended September 30,
2022202120222021
(In thousands)
Operating lease expense (1)
$37,992 $33,358 $102,879 $100,635 
Variable lease expense (1)
10,264 9,399 29,976 23,076 
Total lease expense$48,256 $42,757 $132,855 $123,711 
(1) Excludes short-term lease expense and sublease income, which were immaterial for the periods presented.
Other Information
The weighted average remaining lease term and the weighted average discount rate were as follows:
September 30, 2022December 31, 2021
Weighted average remaining lease term (in years)1110
Weighted average discount rate6.7%5.8%
Maturity of Lease Liabilities
The following table summarizes the maturity of lease liabilities as of September 30, 2022:
Operating Leases
(In thousands)
Remainder of 2022$23,811 
2023148,016 
2024140,222 
2025129,354 
2026121,992 
Thereafter709,667 
Total lease payments1,273,062 
Less imputed interest(377,796)
Present value of lease liabilities895,266 
Less current portion of operating lease liabilities
(90,710)
Long-term operating lease liabilities$804,556 
As of September 30, 2022, the Company had entered into additional operating leases that have not yet commenced with total fixed payment obligations of $28.3 million. The leases are expected to commence between the fourth quarter of 2022 and the first quarter of 2023 and have initial lease terms of approximately 12 to 15 years.
4. 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 the Company’s existing operations, including cost efficiencies and leveraging existing client relationships, as well as from benefits derived from gaining the related assembled workforce.
12

Only About Children
On July 1, 2022, the Company, through wholly-owned subsidiaries, completed the acquisition of the outstanding shares of Only About Children, a child care operator in Australia with approximately 75 early education and child care centers, for aggregate consideration of AUD$450 million (USD$310 million), which was accounted for as a business combination. The Company paid approximately AUD$300 million (USD$207 million), net of cash acquired and subject to customary purchase price adjustments, and will pay an additional USD$106.5 million 18 months after closing. In October 2022, the Company reached an agreement with the sellers on the final net working capital, resulting in a refund of AUD$2.6 million (USD$1.8 million), which is expected to be received in the fourth quarter of 2022. The present value of the deferred consideration of AUD$141.8 million (USD$97.7 million) is included in other long-term liabilities and AUD$2.6 million (USD$1.8 million) receivable from the sellers related to working capital settlements is included in other current assets on the consolidated balance sheet.
During the nine months ended September 30, 2022, the Company incurred acquisition-related transaction costs of approximately $9.2 million, which are included in selling, general and administrative expenses. In addition, the Company recognized realized losses of $5.9 million in relation to foreign currency forward contracts for the purchase of Australian dollars entered into in connection with the acquisition. Refer to Note 6, Credit Arrangements and Debt Obligations, for additional information on the foreign currency forward contracts.
The purchase price for this acquisition has been allocated based on preliminary estimates of the fair values of the acquired assets and assumed liabilities at the date of acquisition as follows:
At acquisition date
(In thousands)
Cash$4,705 
Accounts receivable and prepaid expenses4,295 
Fixed assets21,702 
Goodwill 283,466 
Intangible assets30,945 
Operating lease right of use assets156,678 
Total assets acquired 501,791 
Accounts payable and accrued expenses17,991 
Deferred revenue and parent deposits6,809 
Deferred tax liabilities3,392 
Operating lease liabilities161,405 
Other long-term liabilities5,458 
Total liabilities assumed195,055 
Purchase price$306,736 
The Company recorded goodwill of $283.5 million related to the full service center-based child care segment, which will not be deductible for tax purposes. Intangible assets consist of customer relationships of $23.0 million that will be amortized over 6 years and trade names of $7.9 million that will be amortized over 11 years.
The determination and 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, 2022, the purchase price allocation for Only About Children remains open as the Company gathers additional information regarding the assets acquired and the liabilities assumed, primarily in relation to the valuation of intangibles, fixed assets, leases, and the Company’s assessment of tax related items.
The operating results for Only About Children are included in the consolidated results of operations from the date of acquisition. Only About Children contributed total revenue of $37.3 million during the three months ended September 30, 2022. Net income for the three months ended September 30, 2022 was not materially impacted by the acquisition of Only About Children.
13

The following table presents consolidated pro forma revenue as if the acquisition of Only About Children had occurred on January 1, 2021:
Pro forma (Unaudited)
Nine months ended September 30, 2022Nine months ended September 30, 2021
(In thousands)
Revenue$1,559,882 $1,400,372 
Other than the impact of shifting the transaction costs incurred in 2022 to 2021, consolidated pro forma net income did not materially change from the reported results. In assessing the impact to the unaudited pro forma results we considered certain adjustments related to the acquisition, such as increased amortization expense related to the acquired intangible assets, adjusted depreciation associated with the fair value of the acquired fixed assets, shifting of transaction costs, as well as applying U.S. GAAP rent expense in accordance with Accounting Standards Codification 842, Leases.
Other 2022 Acquisitions
During the nine months ended September 30, 2022, the Company acquired one center in the Netherlands, which was accounted for as a business combination. This business was acquired for aggregate cash consideration of $3.3 million and consideration payable of $0.2 million. The Company recorded goodwill of $3.1 million related to the full service center-based child care segment in relation to this acquisition, which will not be deductible for tax purposes. In addition, the Company recorded intangible assets of $0.5 million that will be amortized over four years.
The determination and 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, 2022, the purchase price allocation for this acquisition remains open as the Company gathers additional information regarding the assets acquired and the liabilities assumed. The operating results for the acquired business 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, 2022, the Company paid contingent consideration of $19.1 million related to an acquisition completed in 2019 and contingent consideration of $0.2 million related to an acquisition completed in 2021. Of the total amounts paid of $19.3 million, $13.9 million had been recorded as a liability at the date of acquisition and is presented as cash used in financing activities in the consolidated statement of cash flows with remaining amounts reflected as cash used in operating activities.
2021 Acquisitions
During the year ended December 31, 2021, the Company acquired two centers as well as a school-age camp provider in the United States, 13 centers in the United Kingdom, and three centers in the Netherlands, in five separate business acquisitions, which were each accounted for as a business combination. These businesses were acquired for aggregate cash consideration of $53.2 million, net of cash acquired of $2.2 million, and consideration payable of $0.6 million. Additionally, the Company is subject to contingent consideration payments for two of these acquisitions, and recorded a fair value estimate of $7.3 million in relation to these contingent consideration arrangements at acquisition. Contingent consideration of up to $1.2 million was payable within one year from the date of acquisition if certain performance targets were met for one of the acquisitions, of which $0.8 million was paid based on the performance targets met. Contingent consideration is payable in 2026 based on certain financial metrics for the other acquisition. The Company recorded goodwill of $39.5 million related to the full service center-based child care segment, of which $3.4 million will be deductible for tax purposes, and $14.6 million related to the back-up care segment, all of which will be deductible for tax purposes. In addition, the Company recorded intangible assets of $5.7 million that will be amortized over five years, as well as fixed assets of $10.1 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, 2022, the purchase price allocation for one of the acquisitions remains open as the Company gathers additional information regarding the assets acquired and the liabilities assumed.
During the year ended December 31, 2021, the Company paid $0.6 million for contingent consideration related to acquisitions completed in 2021, which had been recorded as a liability at the date of acquisition.
14

5. GOODWILL AND INTANGIBLE ASSETS
The changes in the carrying amount of goodwill were as follows:
Full service
center-based
child care
Back-up careEducational
advisory and
other services
Total
(In thousands)
Balance at January 1, 2022$1,233,096 $208,786 $39,843 $1,481,725 
Additions from acquisitions286,581   286,581 
Effect of foreign currency translation(89,264)(4,576) (93,840)
Balance at September 30, 2022$1,430,413 $204,210 $39,843 $1,674,466 
The Company also has intangible assets, which consisted of the following at September 30, 2022 and December 31, 2021:
September 30, 2022Weighted average
amortization period
CostAccumulated
amortization
Net carrying
amount
(In thousands)
Definite-lived intangible assets:
Customer relationships13 years$414,770 $(348,502)$66,268 
Trade names6 years18,257 (9,549)8,708 
433,027 (358,051)74,976 
Indefinite-lived intangible assets:
Trade namesN/A179,753 — 179,753 
$612,780 $(358,051)$254,729 
December 31, 2021Weighted average
amortization period
CostAccumulated
amortization
Net carrying
amount
(In thousands)
Definite-lived intangible assets:
Customer relationships14 years$400,399 $(332,571)$67,828 
Trade names6 years12,358 (10,150)2,208 
412,757 (342,721)70,036 
Indefinite-lived intangible assets:
Trade namesN/A180,996 — 180,996 
$593,753 $(342,721)$251,032 
The Company estimates that it will record amortization expense related to intangible assets existing as of September 30, 2022 as follows over the next five years:
Estimated amortization expense
(In thousands)
Remainder of 2022$8,765 
2023$32,762 
2024$16,699 
2025$5,270 
2026$3,718 
15

6. CREDIT ARRANGEMENTS AND DEBT OBLIGATIONS
Senior Secured Credit Facilities
The Company’s senior secured credit facilities consist of a term loan B facility of $600 million (“term loan B”) and a term loan A facility of $400 million (“term loan A”), collectively the “term loan facilities” or “term loans,” as well as a $400 million multi-currency revolving credit facility (“revolving credit facility”). Long-term debt obligations were as follows:
September 30, 2022December 31, 2021
(In thousands)
Term loan B$595,500 $600,000 
Term loan A392,500 400,000 
Deferred financing costs and original issue discount(6,716)(7,604)
Total debt981,284 992,396 
Less current maturities(16,000)(16,000)
Long-term debt$