
	Full service center-based child care		Back-up care		Educational advisory services		Total

	(In thousands)
Balance at January 1, 2026	$	1,575,631	$	210,868	$	37,676	$	1,824,175

Impairment losses	(296,275)		—		—		(296,275)
Effect of foreign currency translation	4,820		(378)		—		4,442
Adjustments to prior year acquisitions	(180)		—		—		(180)
Balance at September 30, 2026	$	1,283,996	$	210,490	$	37,676	$	1,532,162

The Company completed its annual goodwill impairment assessment as of October 1, 2026. The Company performed a quantitative goodwill impairment test for its reporting unit within full service center-based child care related to the full service operations outside North America and determined that the carrying value of the reporting unit exceeded its fair value. As a result, the Company recorded goodwill impairment losses of $290.0 million. The impairment losses resulted from a reduction in long-term cash flow projections primarily associated with the Company’s operations in Australia, which was not offset by the expected cash flows of the remaining full service operations outside North America. Fair value was estimated using a discounted cash flow model and market-derived valuation assumptions. The Company performed qualitative assessments for the remaining reporting units in conjunction with its annual impairment assessment as of October 1, 2026, noting that a quantitative test was not required.

During the nine months ended September 30, 2026, the Company identified other indicators of impairment and recorded impairment losses of $6.3 million related to an immaterial foreign reporting unit within full service specializing in tutoring services.

Impairment losses are included in operating income (loss) under the caption “Goodwill impairment.” Refer to Note 9, Fair Value Measurements, and Note 11, Segment Information, for additional information.


September 30, 2026	Cost		Accumulated amortization		Net carrying amount

	(In thousands)
Definite-lived intangible assets:
Customer relationships	$	383,251	$	(382,650)	$	601
Trade names	16,382		(11,374)		5,008
	399,633		(394,024)		5,609
Indefinite-lived intangible assets:
Trade names	180,870		—		180,870
	$	580,503	$	(394,024)	$	186,479

During the three months ended September 30, 2026, the Company recorded impairment losses of approximately $4.0 million for customer relationships related to our full service center-based child care operations in Australia, which were included in selling, general, and administrative expenses on the income statement.


December 31, 2025	Cost		Accumulated amortization		Net carrying amount

	(In thousands)
Definite-lived intangible assets:
Customer relationships	$	386,482	$	(379,457)	$	7,025
Trade names	16,148		(10,693)		5,455
	402,630		(390,150)		12,480
Indefinite-lived intangible assets:
Trade names	180,972		—		180,972
	$	583,602	$	(390,150)	$	193,452