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Revenue
 9 Months Ended
Sep. 30, 2019
Revenue from Contract with Customer [Abstract]  
Revenue Revenue

Revenue Recognition

Laureate's revenues primarily consist of tuition and educational service revenues. We also generate other revenues from student fees, dormitory/residency fees and other education-related activities. These other revenues are less material to our overall financial results and have a tendency to trend with tuition revenues. Revenues are recognized when control of the promised goods or services is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. These revenues are recognized net of scholarships and other discounts, refunds, waivers and the fair value of any guarantees made by Laureate related to student financing programs. Laureate's institutions have various billing and academic cycles.

We determine revenue recognition through the five-step model prescribed by ASC Topic 606, Revenue from Contracts with Customers, as follows:

•Identification of the contract, or contracts, with a customer;
•Identification of the performance obligations in the contract;
•Determination of the transaction price;
•Allocation of the transaction price to the performance obligations in the contract; and
•Recognition of revenue when, or as, we satisfy a performance obligation.

We assess collectibility on a portfolio basis prior to recording revenue. Generally, students cannot re-enroll for the next academic session without satisfactory resolution of any past-due amounts. If a student withdraws from an institution, Laureate's obligation to issue a refund depends on the refund policy at that institution and the timing of the student's withdrawal. Generally, our refund obligations are reduced over the course of the academic term. We record refunds as a reduction of deferred revenue as applicable.

The following table shows the components of Revenues by reportable segment and as a percentage of total net revenue for the three months ended September 30, 2019 and 2018:

Brazil
Mexico
Andean
Rest of World
Online & Partnerships
Corporate(1)
Total
2019
















Tuition and educational services
$
200,876

$
156,123

$
322,918

$
56,277

$
173,351

$
—

$
909,545

118
 %
Other
2,384

27,539

23,767

1,720

12,384

(1,502
)
66,292

9
 %
Gross revenue
203,260

183,662

346,685

57,997

185,735

(1,502
)
975,837

126
 %
Less: Discounts / waivers / scholarships
(89,205
)
(37,872
)
(39,415
)
(5,412
)
(30,234
)
—

(202,138
)
(26
)%
Total
$
114,055

$
145,790

$
307,270

$
52,585

$
155,501

$
(1,502
)
$
773,699

100
 %
2018
















Tuition and educational services
$
196,670

$
158,602

$
312,274

$
49,829

$
180,063

$
—

$
897,438

115
 %
Other
2,272

23,676

22,594

2,204

13,767

(3,694
)
60,819

8
 %
Gross revenue
198,942

182,278

334,868

52,033

193,830

(3,694
)
958,257

123
 %
Less: Discounts / waivers / scholarships
(77,853
)
(33,953
)
(35,255
)
(4,332
)
(28,609
)
—

(180,002
)
(23
)%
Total
$
121,089

$
148,325

$
299,613

$
47,701

$
165,221

$
(3,694
)
$
778,255

100
 %
(1) Includes the elimination of intersegment revenues.

The following table shows the components of Revenues by reportable segment and as a percentage of total net revenue for the nine months ended September 30, 2019 and 2018:
 
Brazil
Mexico
Andean
Rest of World
Online & Partnerships
Corporate(1)
Total
2019
 
 
 
 
 
 
 
 
Tuition and educational services
$
735,889

$
499,013

$
909,292

$
145,143

$
531,990

$
—

$
2,821,327

119
 %
Other
6,751

75,201

62,377

5,662

37,713

(2,066
)
185,638

8
 %
Gross revenue
742,640

574,214

971,669

150,805

569,703

(2,066
)
3,006,965

127
 %
Less: Discounts / waivers / scholarships
(321,511
)
(109,505
)
(102,462
)
(13,601
)
(92,712
)
—

(639,791
)
(27
)%
Total
$
421,129

$
464,709

$
869,207

$
137,204

$
476,991

$
(2,066
)
$
2,367,174

100
 %
2018
 
 
 
 
 
 
 
 
Tuition and educational services
$
741,945

$
499,876

$
889,290

$
137,138

$
541,681

$
—

$
2,809,930

117
 %
Other
7,974

68,905

59,523

6,652

40,500

(9,418
)
174,136

7
 %
Gross revenue
749,919

568,781

948,813

143,790

582,181

(9,418
)
2,984,066

124
 %
Less: Discounts / waivers / scholarships
(280,439
)
(104,913
)
(104,600
)
(12,378
)
(83,974
)
—

(586,304
)
(24
)%
Total
$
469,480

$
463,868

$
844,213

$
131,412

$
498,207

$
(9,418
)
$
2,397,762

100
 %
(1) Includes the elimination of intersegment revenues.

Contract Balances
 
The timing of billings, cash collections and revenue recognition results in accounts receivable (contract assets) and deferred revenue and student deposits (contract liabilities) on the Consolidated Balance Sheets. We have various billing and academic cycles and recognize student receivables when an academic session begins, although students generally enroll in courses prior to the start of the academic session. Receivables are recognized only to the extent that it is probable that we will collect substantially all of the consideration to which we are entitled in exchange for the goods and services that will be transferred to the student. We receive advance payments or deposits from our students before revenue is recognized, which are recorded as contract liabilities in deferred revenue and student deposits. Payment terms vary by university with some universities requiring payment in advance of the academic session and other universities allowing students to pay in installments over the term of the academic session.

All of our contract assets are considered accounts receivable and are included within the Accounts and notes receivable balance in the accompanying Consolidated Balance Sheets. Total accounts receivable from our contracts with students were $533,000 and $373,855 as of September 30, 2019 and December 31, 2018, respectively. The increase in the contract assets balance at September 30, 2019 compared to December 31, 2018 is primarily driven by our enrollment cycles. The first and third calendar quarters generally coincide with the primary and secondary intakes for our larger institutions. All contract asset amounts are classified as current.

Contract liabilities in the amount of $464,340 and $193,226 were included within the Deferred revenue and student deposits balance in the current liabilities section of the accompanying Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018, respectively. The increase in the contract liability balance during the period ended September 30, 2019 is the result of semester billings and cash payments received in advance of satisfying performance obligations, offset by revenue recognized during that period. Revenue recognized for the nine months ended September 30, 2019 that was included in the contract liability balance at the beginning of the year was approximately $175,611.