Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2018

The VIEs in Brazil and Mexico comprise several not-for-profit foundations that have insignificant revenues and operating expenses. Selected Consolidated Statements of Operations information for VIEs was as follows, net of the charges related to the above-described contractual arrangements:



For the three months ended March 31,	2018			2017
Selected Statements of Operations information:
Revenues, by segment:
Brazil	$	—		$	—
Mexico	—			—
Andean & Iberian	55,036			48,311
Central America & U.S. Campuses	15,140			15,375
EMEAA	61,196			66,213
Revenues	131,372			129,899

Depreciation and amortization	11,023			12,823

Operating (loss) income, by segment:
Brazil	(18		)	(21		)
Mexico	(157		)	(191		)
Andean & Iberian	(39,262		)	(41,923		)
Central America & U.S. Campuses	(305		)	1,055
EMEAA	12,771			11,887
Operating loss	(26,971		)	(29,193		)

Net loss	(22,468		)	(20,112		)
Net loss attributable to Laureate Education, Inc.	(22,728		)	(20,936		)

The following table reconciles the Net income (loss) 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 March 31,	2018			2017
Net income (loss) attributable to Laureate Education, Inc.:
Variable interest entities	$	(22,728	)	$	(20,936	)
Other operations	(30,590		)	30,707
Corporate and eliminations	222,197			(132,578		)
Net income (loss) attributable to Laureate Education, Inc.	$	168,879		$	(122,807	)

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:



	March 31, 2018				December 31, 2017
	VIE		Consolidated		VIE		Consolidated
Balance Sheets data:
Cash and cash equivalents	$	199,609	$	479,011	$	231,940	$	468,733
Current assets held for sale	—		57,990		22,246		102,623
Other current assets	338,271		956,214		153,129		717,498
Total current assets	537,880		1,493,215		407,315		1,288,854

Goodwill	198,683		1,942,335		192,230		1,954,666
Tradenames	96,949		1,280,617		110,577		1,295,614
Other intangible assets, net	—		34,095		—		35,927
Long-term assets held for sale	—		311,231		185,139		392,391
Other long-term assets	541,967		2,455,265		524,318		2,424,271
Total assets	1,375,479		7,516,758		1,419,579		7,391,723

Current liabilities held for sale	—		103,340		64,895		176,719
Other current liabilities	425,234		1,488,426		276,252		1,198,030
Long-term liabilities held for sale	—		86,853		41,732		94,407
Long-term debt and other long-term liabilities	71,185		3,608,491		66,682		3,921,288
Total liabilities	496,419		5,287,110		449,561		5,390,444

Total stockholders' equity	879,060		1,767,473		970,018		1,587,282
Total stockholders' equity attributable to Laureate Education, Inc.	878,689		1,772,924		948,966		1,575,164

Schedule of balances of the allowance for doubtful accounts

The reconciliations of the beginning and ending balances of the Allowance for doubtful accounts were as follows:



For the three months ended March 31,	2018			2017
Balance at beginning of period	$	204,252		$	196,270
Additions: charges to bad debt expense	22,153			16,502
Additions: charges to other accounts ^(a)	—			503
Deductions ^(b)	(24,883		)	(17,571		)
Balance at end of period	$	201,522		$	195,704

^(a) Charges to other accounts includes reclassifications.

^(b) Deductions includes accounts receivable written off against the allowance (net of recoveries), reclassifications, and foreign

currency translation. The beginning and ending balances of the Allowance for doubtful accounts include the current

portion, as shown on the face of Consolidated Balance Sheets, in addition to the noncurrent portion that is included in

Notes receivable, net on the Consolidated Balance Sheets.

Laureate’s financing receivables balances were as follows:



	March 31, 2018			December 31, 2017
Financing receivables	$	37,411		$	22,977
Allowance for doubtful accounts	(8,984		)	(8,411		)
Financing receivables, net of allowances	$	28,427		$	14,566

Schedule of adoption of new accounting standard update

In accordance with the requirements under Topic 606, the disclosure of the impact of adoption on our Consolidated Statement of Operations and Consolidated Balance Sheet was as follows:



	For the period ended March 31, 2018
	As Reported			Balances Without Adoption of ASC 606			Effect of Change Higher/(Lower)
Statement of Operations data:
Revenues	$	885,288		$	878,655		$	6,633

Costs and Expenses:
Direct costs	865,446			868,561			(3,115		)
Income tax expense	(2,532		)	(2,502		)	30

Net income	171,545			161,827			9,718



	As of March 31, 2018
	As Reported		Balances Without Adoption of ASC 606		Effect of Change Higher/(Lower)
Balance Sheet data:
Assets:
Deferred costs, net	67,061		62,528		4,533

Liabilities:
Deferred revenue and student deposits	675,455		682,088		(6,633	)
Deferred income taxes	293,957		293,927		30

Equity:
Accumulated deficit	(772,283	)	(783,419	)	11,136

- 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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