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Financing Receivables | 9 Months Ended
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Sep. 30, 2017
Receivables [Abstract] |
Financing Receivables | Financing Receivables Laureate’s financing receivables consist primarily of trade receivables related to student tuition financing programs with an initial term in excess of one year. We have offered long-term financing through the execution of note receivable agreements with students at some of our institutions. Our disclosures include financing receivables that are classified in our Consolidated Balance Sheets as both current and long-term, reported in accordance with ASC 310, “Receivables.” Laureate’s financing receivables balances were as follows:
| September 30, 2017 |  | December 31, 2016
Financing receivables | $ | 36,501 |  |  | $ | 29,776 |
Allowance for doubtful accounts | (8,289 | ) |  | (9,175 | )
Financing receivables, net of allowances | $ | 28,212 |  |  | $ | 20,601 |
We do not purchase financing receivables in the ordinary course of our business. We may sell certain receivables that are significantly past due. No material amounts of financing receivables were sold during the periods reported herein. Delinquency is the primary indicator of credit quality for our financing receivables. Receivable balances are considered delinquent when contractual payments on the loan become past due. Delinquent financing receivables are placed on non-accrual status for interest income. The accrual of interest is resumed when the financing receivable becomes contractually current and when collection of all remaining amounts due is reasonably assured. We record an Allowance for doubtful accounts to reduce our financing receivables to their net realizable value. The Allowance for doubtful accounts is based on the age of the receivables, the status of past-due amounts, historical collection trends, current economic conditions, and student enrollment status. Each of our institutions evaluates its balances for potential impairment. We consider impaired loans to be those that are past due one year or greater, and those that are modified as a troubled debt restructuring (TDR). The aging of financing receivables grouped by country portfolio was as follows:
| Chile |  | Other |  | Total
As of September 30, 2017 |  |  |  |  |
Amounts past due less than one year | $ | 11,317 |  |  | $ | 843 |  |  | $ | 12,160 |
Amounts past due one year or greater | 3,850 |  |  | 1,424 |  |  | 5,274 |
Total past due (on non-accrual status) | 15,167 |  |  | 2,267 |  |  | 17,434 |
Not past due | 16,564 |  |  | 2,503 |  |  | 19,067 |
Total financing receivables | $ | 31,731 |  |  | $ | 4,770 |  |  | $ | 36,501 |
As of December 31, 2016 |  |  |  |  |
Amounts past due less than one year | $ | 8,711 |  |  | $ | 834 |  |  | $ | 9,545 |
Amounts past due one year or greater | 3,899 |  |  | 1,482 |  |  | 5,381 |
Total past due (on non-accrual status) | 12,610 |  |  | 2,316 |  |  | 14,926 |
Not past due | 11,758 |  |  | 3,092 |  |  | 14,850 |
Total financing receivables | $ | 24,368 |  |  | $ | 5,408 |  |  | $ | 29,776 |
The following is a rollforward of the Allowance for doubtful accounts related to financing receivables for the nine months ended September 30, 2017 and 2016, grouped by country portfolio:
| Chile |  | Other |  | Total
Balance at December 31, 2016 | $ | (6,209 | ) |  | $ | (2,966 | ) |  | $ | (9,175 | )
Charge-offs | 2,798 |  |  | 330 |  |  | 3,128 |
Recoveries | — |  |  | (36 | ) |  | (36 | )
Reclassifications | — |  |  | 69 |  |  | 69 |
Provision | (2,089 | ) |  | 93 |  |  | (1,996 | )
Currency adjustments | (360 | ) |  | 81 |  |  | (279 | )
Balance at September 30, 2017 | $ | (5,860 | ) |  | $ | (2,429 | ) |  | $ | (8,289 | )
Balance at December 31, 2015 | $ | (7,240 | ) |  | $ | (3,336 | ) |  | $ | (10,576 | )
Charge-offs | 3,525 |  |  | 104 |  |  | 3,629 |
Recoveries | — |  |  | (46 | ) |  | (46 | )
Reclassifications | — |  |  | — |  |  | — |
Provision | (2,152 | ) |  | 181 |  |  | (1,971 | )
Currency adjustments | (387 | ) |  | 97 |  |  | (290 | )
Balance at September 30, 2016 | $ | (6,254 | ) |  | $ | (3,000 | ) |  | $ | (9,254 | )
Restructured Receivables A TDR is a financing receivable in which the borrower is experiencing financial difficulty and Laureate has granted an economic concession to the student debtor that we would not otherwise consider. When we modify financing receivables in a TDR, Laureate typically offers the student debtor an extension of the loan maturity and/or a reduction in the accrued interest balance. In certain situations, we may offer to restructure a financing receivable in a manner that ultimately results in the forgiveness of contractually specified principal balances. Our only TDRs are in Chile. The number of financing receivable accounts and the pre- and post-modification account balances modified under the terms of a TDR during the nine months ended September 30, 2017 and 2016 were as follows:
| Number of Financing Receivable Accounts |  | Pre-Modification Balance Outstanding |  | Post-Modification Balance Outstanding
2017 | 355 |  |  | $ | 1,838 |  |  | $ | 1,655 |
2016 | 559 |  |  | $ | 8,615 |  |  | $ | 5,986 |
The preceding table represents accounts modified under the terms of a TDR during the nine months ended September 30, 2017, whereas the following table represents accounts modified as a TDR between January 1, 2016 and September 30, 2017 that subsequently defaulted during the nine months ended September 30, 2017:
| Number of Financing Receivable Accounts |  | Balance at Default
Total | 156 |  |  | $ | 721 |
The following table represents accounts modified as a TDR between January 1, 2015 and September 30, 2016 that subsequently defaulted during the nine months ended September 30, 2016:
| Number of Financing Receivable Accounts |  | Balance at Default
Total | 355 |  |  | $ | 1,089 |

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- Definition The entire disclosure for financing receivables. Examples of financing receivables include, but are not limited to, loans, trade accounts receivables, notes receivable, credit cards, and receivables relating to a lessor's right(s) to payment(s) from a lease other than an operating lease that is recognized as assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 55 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=32702940&loc=SL6953791-111525 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66008989&loc=d3e4975-111524 + Details
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