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.