Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2017

The VIEs in Brazil and Mexico include several not-for-profit foundations that have insignificant revenues and operating expenses. Selected Consolidated Statements of Operations information for these VIEs was as follows:



	For the three months ended September 30,						For the nine months ended September 30,
	2017			2016			2017			2016
Selected Statements of Operations information:
Revenues, by segment:
Brazil	$	11		$	—		$	57		$	—
Mexico	—			—			—			—
Andean & Iberian	114,494			116,839			300,385			257,327
Central America & U.S. Campuses	16,350			15,113			47,362			44,088
EMEAA	42,662			41,919			176,177			187,454
Revenues	173,517			173,871			523,981			488,869

Depreciation and amortization	12,697			13,422			38,171			39,190

Operating (loss) income, by segment:
Brazil	(23		)	(17		)	(30		)	(60		)
Mexico	(163		)	(105		)	(516		)	(492		)
Andean & Iberian	6,584			12,365			(3,567		)	(29,625		)
Central America & U.S. Campuses	910			406			1,873			212
EMEAA	(11,510		)	(14,606		)	8,377			5,075
Operating (loss) income	(4,202		)	(1,957		)	6,137			(24,890		)

Net income (loss)	378			1,563			23,418			(18,517		)
Net income (loss) attributable to Laureate Education, Inc.	1,265			2,707			22,284			(18,474		)

The following table reconciles the Net (loss) income attributable to Laureate Education, Inc. as presented in the table above, to the amounts in our Consolidated Statements of Operations:



	For the three months ended September 30,					For the nine months ended September 30,
	2017			2016		2017			2016
Net (loss) income attributable to Laureate Education, Inc.:
Variable interest entities	$	1,265		$	2,707	$	22,284		$	(18,474	)
Other operations	49,968			61,132		264,644			387,008
Corporate and eliminations	(149,192		)	22,478		(391,308		)	(37,995		)
Net (loss) income attributable to Laureate Education, Inc.	$	(97,959	)	$	86,317	$	(104,380	)	$	330,539

The following table presents selected assets and liabilities of the consolidated VIEs. Except for Goodwill, the assets in the table below include the assets that can be used only to settle the obligations for the VIEs. The liabilities in the table are liabilities for which the creditors of the VIEs do not have recourse to the general credit of Laureate.

Selected Consolidated Balance Sheet amounts for these VIEs were as follows:



	September 30, 2017				December 31, 2016
	VIE		Consolidated		VIE		Consolidated
Balance Sheets data:
Cash and cash equivalents	$	265,494	$	504,962	$	169,074	$	464,965
Current assets held for sale	2,723		92,248		—		—
Other current assets	281,504		962,689		153,136		650,836
Total current assets	549,721		1,559,899		322,210		1,115,801

Goodwill	193,669		2,028,286		181,669		1,934,464
Tradenames	109,394		1,330,302		104,117		1,307,633
Other intangible assets, net	—		43,206		—		46,700
Long-term assets held for sale	28,306		279,801		—		—
Other long-term assets	676,960		2,541,070		701,117		2,657,872
Total assets	1,558,050		7,782,564		1,309,113		7,062,470

Current liabilities held for sale	6,855		158,280		—		—
Current liabilities	497,470		1,736,699		320,922		1,440,232
Long-term liabilities held for sale	11,239		73,199		—		—
Long-term debt and other long-term liabilities	91,332		3,915,249		103,375		4,601,013
Total liabilities	606,896		5,883,427		424,297		6,041,245

Total stockholders' equity	951,154		1,582,229		884,816		664,392
Total stockholders' equity attributable to Laureate Education, Inc.	932,384		1,551,678		866,997		632,210

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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