XML 105 R18.htm IDEA: XBRL DOCUMENT
v3.19.3

Leases | 9 Months Ended
--- | ---
Sep. 30, 2019
Leases [Abstract] |
Leases | Leases Laureate conducts a significant portion of its operations at leased facilities. These facilities include our corporate headquarters, other office locations, and many of Laureate's higher education facilities. Laureate analyzes each lease agreement to determine whether it should be classified as a finance lease or an operating lease. As a result of adopting ASC Topic 842, we recorded on our balance sheet significant asset and liability balances associated with the operating leases, as described further below. Operating Leases Our operating lease agreements are primarily for real estate space and are included within operating lease ROU assets and operating lease liabilities on the 2019 consolidated balance sheet. The terms of our operating leases vary and generally contain renewal options. Certain of these operating leases provide for increasing rent over the term of the lease. Laureate also leases certain equipment under noncancellable operating leases, which are typically for terms of 60 months or less. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Our variable lease payments consist of non-lease services related to the lease. Variable lease payments are excluded from the ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Many of our lessee agreements include options to extend the lease, which we do not include in our minimum lease terms unless they are reasonably certain to be exercised. Rental expense for lease payments related to operating leases is recognized on a straight-line basis over the lease term. On occasion, Laureate has entered into sublease agreements for certain leased office space; however, the sublease income from these agreements is immaterial. Supplemental balance sheet information related to leases was as follows:
Leases | Classification | September 30, 2019
Assets: |  |
Operating | Operating lease right-of-use assets, net | $ | 871,746 |
Finance | Buildings, Furniture, equipment and software, net | 55,073 |
Total leased assets |  | $ | 926,819 |
Liabilities: |  |
Current |  |
Operating | Current portion of operating leases | $ | 91,919 |
Finance | Current portion of long-term debt and finance leases | 4,838 |
Non-current |  |
Operating | Long-term operating leases, less current portion | 800,828 |
Finance | Long-term debt and finance leases, less current portion | 53,820 |
Total lease liabilities |  | $ | 951,405 |
Lease Term and Discount Rate | September 30, 2019
Weighted average remaining lease terms |
Operating leases | 9.4 years |
Finance leases | 11.9 years |
Weighted average discount rate |
Operating leases | 9.50 | %
Finance leases | 8.50 | %
The components of lease cost were as follows:
Lease Cost | Classification | For the three months ended September 30, 2019 | For the nine months ended September 30, 2019
Operating lease cost | Direct costs | $ | 42,032 |  | $ | 132,546 |
Finance lease cost |  |  |
Amortization of leased assets | Direct costs | 1,880 |  | 4,518 |
Interest on leased assets | Interest expense | 1,264 |  | 2,741 |
Short-term lease costs | Direct costs | 810 |  | 2,800 |
Variable lease costs | Direct costs | 4,483 |  | 11,056 |
Sublease income | Revenues | (1,049 | ) | (3,260 | )
Total lease cost |  | $ | 49,420 |  | $ | 150,401 |
As of September 30, 2019, maturities of lease liabilities were as follows:
Maturity of Lease Liability | Operating Leases | Finance Leases
Year 1 | $ | 169,383 |  | $ | 9,473 |
Year 2 | 159,432 |  | 9,180 |
Year 3 | 149,816 |  | 8,834 |
Year 4 | 140,692 |  | 8,354 |
Year 5 | 133,134 |  | 6,288 |
Thereafter | 571,234 |  | 51,095 |
Total lease payments | $ | 1,323,691 |  | $ | 93,224 |
Less: interest and inflation | (430,944 | ) | (34,566 | )
Present value of lease liabilities | $ | 892,747 |  | $ | 58,658 |
Supplemental cash flow information related to leases was as follows for the nine months ended September 30, 2019:
Other Information |
Cash paid for amounts included in the measurement of lease liabilities |
Operating cash flows from operating leases | $ | 139,010 |
Operating cash flows from finance leases | $ | 2,742 |
Financing cash flows from finance leases | $ | 3,128 |
Leased assets obtained for new finance lease liabilities | $ | 38,217 |
Leased assets obtained for new operating lease liabilities | $ | 6,394 |
As disclosed in our 2018 Form 10-K, future minimum lease payments at December 31, 2018, prior to the adoption of ASC Topic 842, by year and in the aggregate, under all noncancellable operating leases were as follows:
| Lease Payments
2019 | $ | 151,795 |
2020 | 142,995 |
2021 | 135,426 |
2022 | 128,441 |
2023 | 119,955 |
Thereafter | 482,220 |
Total | $ | 1,160,832 |

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration