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Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Schedule of variable interest entities

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 June 30,								For the six months ended June 30,
	2018				2017				2018				2017
Selected Statements of Operations information:
Revenues, by segment:
Brazil	$	—			$	46			$	—			$	46
Mexico	86				—				86				—
Andean & Iberian	150,504				137,580				205,540				185,891
Central America & U.S. Campuses	17,506				15,636				32,646				31,011
EMEAA	47,318				67,302				108,514				133,515
Revenues	215,414				220,564				346,786				350,463
Depreciation and amortization	10,594				12,651				21,617				25,473
Operating (loss) income, by segment:
Brazil	(22		)		14				(40		)		(7		)
Mexico	(71		)		(161		)		(228		)		(353		)
Andean & Iberian	33,996				31,772				(5,266		)		(10,151		)
Central America & U.S. Campuses	1,853				(92		)		1,548				963
EMEAA	15,430				8,000				28,201				19,889
Operating income	51,186				39,533				24,215				10,341
Net income	78,926				43,152				56,457				23,040
Net income attributable to Laureate Education, Inc.	79,050				41,955				56,321				21,019

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 June 30,								For the six months ended June 30,
	2018				2017				2018				2017
Net income (loss) attributable to Laureate Education, Inc.:
Variable interest entities	$	79,050			$	41,955			$	56,321			$	21,019
Other operations	198,616				184,031				168,082				214,799
Corporate and eliminations	(53,256		)		(109,600		)		168,886				(242,240		)
Net income (loss) attributable to Laureate Education, Inc.	$	224,410			$	116,386			$	393,289			$	(6,422	)

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:

	June 30, 2018								December 31, 2017
	VIE				Consolidated				VIE				Consolidated
Balance Sheets data:
Cash and cash equivalents	$	187,604			$	402,402			$	231,940			$	468,733
Current assets held for sale	—				35,955				22,246				102,623
Other current assets	273,151				833,344				153,129				717,498
Total current assets	460,755				1,271,701				407,315				1,288,854
Goodwill	186,514				1,819,006				192,230				1,954,666
Tradenames	91,295				1,242,964				110,577				1,295,614
Other intangible assets, net	—				29,017				—				35,927
Long-term assets held for sale	—				276,947				185,139				392,391
Other long-term assets	512,067				2,290,889				524,318				2,424,271
Total assets	1,250,631				6,930,524				1,419,579				7,391,723
Current liabilities held for sale	—				85,135				64,895				176,719
Other current liabilities	241,437				1,166,782				276,252				1,198,030
Long-term liabilities held for sale	—				79,912				41,732				94,407
Long-term debt and other long-term liabilities	71,483				3,470,611				66,682				3,921,288
Total liabilities	312,920				4,802,440				449,561				5,390,444
Total stockholders' equity	937,711				2,115,104				970,018				1,587,282
Total stockholders' equity attributable to Laureate Education, Inc.	937,480				2,124,762				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 six months ended June 30,	2018				2017
Balance at beginning of period	$	204,252			$	196,270
Additions: charges to bad debt expense	58,282				51,439
Additions: charges to other accounts (a)	1,124				190
Deductions (b)	(65,635		)		(45,490		)
Balance at end of period	$	198,023			$	202,409

^(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:

	June 30, 2018				December 31, 2017
Financing receivables	$	38,156			$	22,977
Allowance for doubtful accounts	(7,779		)		(8,411		)
Financing receivables, net of allowances	$	30,377			$	14,566

Schedule of adoption of new accounting standard update

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

	For the six months ended June 30, 2018
	As Reported			Balances Without Adoption of ASC 606			Effect of Change Higher/(Lower)
Statement of Operations data:
Revenues	$	2,133,205		$	2,132,707		$	498
Costs and Expenses:
Direct costs	1,774,387			1,778,729			(4,342		)
Income tax expense	(91,421		)	(91,368		)	(53		)
Net income	395,499			390,712			4,787

	As of June 30, 2018
	As Reported			Balances Without Adoption of ASC 606			Effect of Change Higher/(Lower)
Balance Sheet data:
Assets:
Deferred costs, net	$	68,078		$	62,319		$	5,759
Liabilities:
Deferred revenue and student deposits	351,951			352,449			(498		)
Deferred income taxes	295,043			294,990			53
Equity:
Accumulated deficit	(548,617		)	(554,821		)	6,204

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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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