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Business and Geographic Segment Information
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Business and Geographic Segment Information Business and Geographic Segment Information
Laureate’s educational services are offered through two reportable segments: Mexico and Peru. Laureate determines its segments based on information utilized by the chief operating decision maker to allocate resources and assess performance.

Our segments generate revenues by providing an education that emphasizes profession-oriented fields of study with undergraduate and graduate degrees in a wide range of disciplines. Our educational offerings utilize campus-based, online and hybrid (a combination of online and in-classroom) courses and programs to deliver their curriculum. The Mexico and Peru markets are characterized by what we believe is a significant imbalance between supply and demand. The demand for higher education is large and growing and is fueled by several demographic and economic factors, including a growing middle class, global growth in services and technology-related industries and recognition of the significant personal and economic benefits gained by graduates of higher education institutions. The target demographics are primarily 18- to 24-year-olds in the countries in which we compete. We compete with other private higher education institutions on the basis of price, educational quality, reputation and location. We believe that we compare favorably with competitors because of our focus on quality, professional-
oriented curriculum and the competitive advantages provided by our network. There are a number of private and public institutions in both of the countries in which we operate, and it is difficult to predict how the markets will evolve and how many competitors there will be in the future. We expect competition to increase as the Mexican and Peruvian markets mature. Essentially all of our revenues were generated from private pay sources as there are no material government-sponsored loan programs in Mexico or Peru. Specifics related to both of our reportable segments are discussed below.

In Mexico, the private sector plays a meaningful role in higher education, bridging supply and demand imbalances created by a lack of capacity at public universities. Laureate owns two nationally licensed institutions and is present throughout the country with a footprint of over 30 campuses. Students in our Mexican institutions typically finance their own education.

In Peru, private universities are increasingly providing the capacity to meet growing demand in the higher-education market. Laureate owns three institutions in Peru, with a footprint of 19 campuses.

As discussed in Note 1, Description of Business, and Note 4, Discontinued Operations and Assets Held for Sale, in prior periods, a number of our subsidiaries met the requirements to be classified as Discontinued Operations and were subsequently sold. As a result, the Discontinued Operations have been excluded from the segment information for all periods presented.

Inter-segment transactions are accounted for in a similar manner as third-party transactions and are eliminated in consolidation. The Corporate amounts presented in the following tables include corporate charges that were not allocated to our reportable segments and adjustments to eliminate inter-segment items.

We evaluate segment performance based on Adjusted EBITDA, which is a non-GAAP performance measure defined as Income (loss) from continuing operations before income taxes and equity in net income of affiliates, adding back the following items: Loss on derivatives, net, Loss on debt extinguishment, Gain (loss) on disposals of subsidiaries, net, Foreign currency exchange (loss) gain, net, Other (expense) income, net, Interest expense, Interest income, Depreciation and amortization expense, Loss on impairment of assets, Share-based compensation expense and expenses related to our Excellence-in-Process (EiP) initiative. Our EiP initiative was completed as of December 31, 2021, except for certain EiP expenses related to the run out of programs that began in prior periods. EiP was an enterprise-wide initiative to optimize and standardize Laureate’s processes, creating vertical integration of procurement, information technology, finance, accounting and human resources. It included the establishment of regional shared services organizations (SSOs), as well as improvements to the Company's system of internal controls over financial reporting. The EiP initiative also included other back- and mid-office areas, as well as certain student-facing activities, expenses associated with streamlining the organizational structure, an enterprise-wide program aimed at revenue growth, and certain non-recurring costs incurred in connection with previous dispositions.

Adjusted EBITDA is a key measure used by our management and Board of Directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operational plans. In particular, the exclusion of certain expenses in calculating Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core business. Additionally, Adjusted EBITDA is a key financial measure used by the compensation committee of our Board of Directors and our Chief Executive Officer in connection with the payment of incentive compensation to our executive officers and other members of our management team. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and Board of Directors. We use total assets as the measure of assets for reportable segments.
The following tables provide financial information for our reportable segments, including a reconciliation of Adjusted EBITDA to Income (loss) from continuing operations before income taxes and equity in net income of affiliates, as reported in the Consolidated Statements of Operations, for the years ended December 31, 2023, 2022 and 2021:
MexicoPeruCorporateTotal
2023
Revenues$782,611 $701,699 $(22)$1,484,288 
Depreciation and amortization expense39,421 27,951 2,246 69,618 
Loss on impairment of assets1,620 — 1,453 3,073 
Total assets1,396,605 559,428 169,583 2,125,616 
Expenditures for long-lived assets37,411 18,980 66 56,457 
2022
Revenues$613,942 $624,238 $4,091 $1,242,271 
Depreciation and amortization expense31,369 23,953 3,810 59,132 
Loss on impairment of assets144 — — 144 
Total assets1,220,630 536,141 215,466 1,972,237 
Expenditures for long-lived assets36,045 16,777 246 53,068 
2021
Revenues$540,429 $537,056 $9,216 $1,086,701 
Depreciation and amortization expense29,461 24,196 47,574 101,231 
Loss on impairment of assets9,319 — 63,169 72,488 
Expenditures for long-lived assets23,121 19,029 2,895 45,045 

For the years ended December 31,202320222021
Adjusted EBITDA of reportable segments:
Mexico$176,954 $123,368 $95,812 
Peru286,850 266,660 245,677 
Total Adjusted EBITDA of reportable segments463,804 390,028 341,489 
Reconciling items:
Corporate(45,177)(51,151)(88,102)
Depreciation and amortization expense(69,618)(59,132)(101,231)
Loss on impairment of assets(3,073)(144)(72,488)
Share-based compensation expense(7,114)(8,776)(8,895)
EiP expenses— (813)(75,420)
Operating income (loss)338,822 270,012 (4,647)
Interest income9,085 7,567 4,378 
Interest expense(20,986)(16,418)(46,275)
Other (expense) income, net(325)770 (1,695)
Foreign currency exchange (loss) gain, net(75,702)(17,444)13,791 
Gain (loss) on disposals of subsidiaries, net3,567 1,364 (602)
Loss on debt extinguishment— — (77,940)
Loss on derivatives, net— — (24,517)
Income (loss) from continuing operations before income taxes and equity in net income of affiliates$254,461 $245,851 $(137,507)
Geographic Information

No individual customer accounted for more than 10% of Laureate’s consolidated revenues. Revenues from customers by geographic area, primarily generated by students enrolled at institutions in those areas, were as follows:
For the years ended December 31,202320222021
External Revenues(1)
Mexico $782,046 $613,623 $539,549 
Peru701,443 624,167 537,056 
United States799 4,481 10,096 
Consolidated total$1,484,288 $1,242,271 $1,086,701 
(1) Excludes intercompany revenues and therefore does not agree to the table above

Long-lived assets are composed of Property and equipment, net. Laureate’s long-lived assets by geographic area were as follows:
December 31,20232022
Long-lived assets
Mexico $260,053 $225,346 
Peru300,655 289,482 
United States1,518 8,579 
Consolidated total$562,226 $523,407