Due to Shareholders of Acquired Companies

9 Months Ended

Sep. 30, 2018

Due to Shareholders of Acquired Companies

The amounts due to shareholders of acquired companies generally arise in connection with Laureate’s acquisition of a majority or all of the ownership interest of these companies. Promissory notes payable to the sellers of acquired companies, referred to as “seller notes,” are commonly used as a means of payment for business acquisitions. Seller note payments are classified as Payments of deferred purchase price for acquisitions within financing activities in our Consolidated Statements of Cash Flows. The amounts due to shareholders of acquired companies, currencies, and interest rates applied were as follows:



	September 30, 2018		December 31, 2017		Nominal Currency	Interest Rate %
Universidade Anhembi Morumbi (UAM Brazil)	$	28,577	$	45,206	BRL	CDI + 2%
University of St. Augustine for Health Sciences, LLC (St. Augustine)	11,550		11,550		USD	7%
Faculdade Porto-Alegrense (FAPA)	1,806		3,084		BRL	IGP-M
IADE Group	1,177		2,374		EUR	3%
Monash South Africa (MSA)	—		9,571		AUD	n/a
Total due to shareholders of acquired companies	43,110		71,785
Less: Current portion of due to shareholders of acquired companies	23,065		34,745
Due to shareholders of acquired companies, less current portion	$	20,045	$	37,040



BRL: Brazilian Real		CDI: Certificados de Depósitos Interbancários (Brazil)
USD: United States Dollar		IGP-M: General Index of Market Prices (Brazil)
EUR: European Euro
AUD: Australian Dollar

MSA

During the second quarter of 2018, the conditions required for resolution of the MSA earnout were completed and the seller note liability, which was recorded on a corporate entity, was reversed as the criteria for payment was not met.