Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2020

The VIEs in Brazil, for 2019, and Mexico include several not-for-profit foundations that had insignificant operating expenses and no revenues. Selected Consolidated Statements of Operations information for VIEs that are included in continuing operations was as follows, net of the charges related to the above-described contractual arrangements:


	For the three months ended June 30,						For the six months ended June 30,
	2020		2019		2020		2019
Selected Statements of Operations information:
Revenues, by segment:


Andean	$	116,035	$	148,472	$	152,501	$	204,922



Revenues	116,035		148,472		152,501		204,922

Depreciation and amortization	5,568		6,890		11,493		12,986

Operating (loss) income, by segment:
Brazil	—		(17)		—		(34)
Mexico	(110)		(99)		(278)		(196)
Andean	(250,501)		44,519		(282,806)		17,299



Operating (loss) income	(250,611)		44,403		(283,084)		17,069


Net (loss) income attributable to Laureate Education, Inc.	(249,346)		41,785		(280,021)		17,585

As discussed in Note 8, Goodwill and Loss on Impairment of Assets, during the second quarter of 2020, the Company recorded an impairment charge of approximately $418,000 related to the long-lived assets, indefinite-lived intangible assets and goodwill of our Chilean operations, of which approximately $291,000 related to our VIE institutions in Chile.

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 June 30,						For the six months ended June 30,
	2020		2019		2020		2019
Net income (loss) attributable to Laureate Education, Inc.:
Variable interest entities	$	(249,346)	$	41,785	$	(280,021)	$	17,585
Other operations	30,443		699,745		(52,186)		654,533
Corporate and eliminations	(88,920)		40,062		123,999		300,717
Net (loss) income attributable to Laureate Education, Inc.	$	(307,823)	$	781,592	$	(208,208)	$	972,835

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.


	June 30, 2020						December 31, 2019
	VIE		Consolidated		VIE		Consolidated
Balance Sheets data:
Cash and cash equivalents	$	215,908	$	629,551	$	157,003	$	339,629
Current assets held for sale	17,758		62,312		16,050		83,800
Other current assets	159,233		578,331		173,072		519,498
Total current assets	392,899		1,270,194		346,125		942,927

Goodwill	31,431		1,355,585		159,957		1,701,495
Tradenames	—		977,799		61,691		1,119,454
Other intangible assets, net	—		963		—		1,431
Operating lease right-of-use assets, net	34,694		691,631		65,761		861,878
Long-term assets held for sale	52,745		187,174		52,519		305,973
Other long-term assets	145,992		1,470,331		262,579		1,582,470
Total assets	657,761		5,953,677		948,632		6,515,628

Current liabilities held for sale	12,087		50,252		11,741		64,204
Other current liabilities	179,078		1,055,916		130,602		1,006,600
Long-term operating leases, less current portion	52,577		700,944		56,571		792,358
Long-term liabilities held for sale	38,545		68,425		29,666		124,914
Long-term debt and other long-term liabilities	35,667		1,785,922		28,619		1,711,106
Total liabilities	317,954		3,661,459		257,199		3,699,182

Total stockholders' equity	339,807		2,280,061		691,433		2,804,151
Total stockholders' equity attributable to Laureate Education, Inc.	339,807		2,294,191		691,433		2,816,963

- 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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