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What changed in LAUREATE EDUCATION, INC.'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of LAUREATE EDUCATION, INC.'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+260 added−284 removedSource: 10-K (2025-02-20) vs 10-K (2024-02-22)

Top changes in LAUREATE EDUCATION, INC.'s 2024 10-K

260 paragraphs added · 284 removed · 208 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

53 edited+9 added−15 removed69 unchanged
Biggest changeLeadership and Governance • Our Board of Directors receives regular reports on talent development, succession planning, and company-wide culture-building efforts. • There are two established committees of our Board of Directors with responsibility for reviewing and considering a range of Human Capital related topics throughout the year.
Biggest changeTherefore, we strive to be a company our employees are proud to work for and continue to invest in ongoing training and development – consistent with our belief in the power of education to change lives. Leadership and Governance • Our Board of Directors receive regular reports on talent development, succession planning, and company-wide culture-building efforts.
We provide those students with a hybrid learning experience, mixing face-to-face classroom experience with technology through our online platform, which we believe improves the student experience by providing them with a wide range of online courses, interactive discussions, virtual experiences, digital resources, and simulations that enhance their learning experiences both within and outside the classroom. 9 • Fully Online Programs.
We provide those students with a hybrid learning experience, mixing face-to-face classroom experience with technology through our online platform, which we believe improves the student experience by providing them with a wide range of online courses, interactive discussions, virtual experiences, digital resources, and simulations that enhance their learning experiences both within and outside the classroom. • Fully Online Programs.
Our scale also permits increased investment in unified technology systems and an opportunity to leverage standardization of processes, centralization of common services (such as information technology, finance and procurement) and intellectual property, and implementing a common operating model and platform for content development, digital campus experiences, student services, recruitment and administrative services within each country.
Our scale also permits increased investment in unified technology systems and an opportunity to leverage standardization of processes, centralization of common services (such as information technology, finance and procurement) and intellectual property, and implementing a common operating model and platform for content development, digital campus experiences, student services, recruitment and administrative services within 7 each country.
Unlike licenses, quality accreditation is voluntary, except for certain careers for which it might be mandatory as determined by law. Such accreditation will be taken into consideration for access to public grants for scholarships and research, among other things. Private Institutes and Colleges may be organized as for-profit or not-for-profit entities under Peruvian law.
Unlike licenses, quality accreditation is voluntary, except for certain careers for which it might be mandatory as determined by law. Such accreditation is taken into consideration for access to public grants for scholarships and research, among other things. Private Institutes and Colleges may be organized as for-profit or not-for-profit entities under Peruvian law.
We believe that by implementing best practices within each country we will enable closer collaboration and facilitate innovation and improved student experiences. We believe that this unification will enable us to be more nimble in our day-to-day operations and will allow us to extract valuable insights from more data across our network.
We believe that by implementing best practices within each country we will enable closer collaboration and facilitate innovation and improved student experiences. We believe that this unification will enable us to be more nimble in our day-to- 8 day operations and will allow us to extract valuable insights from more data across our network.
Currently, Universidad Tecnológica de México, S.C. and Universidad del Valle de México, S.C. have secretarial resolutions that were issued in their favor before the issuance of Acuerdo 17/11/17. The obligations contained in these secretarial resolutions generally conform to the obligations provided under Acuerdo 17/11/17.
Currently, Universidad Tecnológica de México, S.C. and Universidad del Valle de México, S.C. have secretarial resolutions that were issued in their favor before the 13 issuance of Acuerdo 17/11/17. The obligations contained in these secretarial resolutions generally conform to the obligations provided under Acuerdo 17/11/17.
These systems provide data and insights on a scale that we believe will allow us to improve student 7 experience, retention rates and outcomes, while also enabling a more efficient and lower cost educational delivery model. Leading Online Technology .
These systems provide data and insights on a scale that we believe will allow us to improve student experience, retention rates and outcomes, while also enabling a more efficient and lower cost educational delivery model. Leading Online Technology .
Essentially all of our revenues for 2023 were generated from private pay sources, as there are no material government-sponsored student loan programs in Mexico or Peru. We believe that students’ and families’ willingness to allocate personal resources to fund higher education at our institutions validates our strong value proposition. • Revenue Visibility Enhanced by Program Length and Strong Retention.
Essentially all of our revenues for 2024 were generated from private pay sources, as there are no material government-sponsored student loan programs in Mexico or Peru. We believe that students’ and families’ willingness to allocate personal resources to fund higher education at our institutions validates our strong value proposition. • Revenue Visibility Enhanced by Program Length and Strong Retention.
Further, we believe that 8 integration will enable further innovation and efficiency in our academic model and operations, and allow us to expand our market share. Leverage and Expand Existing Portfolio.
Further, we believe that integration will enable further innovation and efficiency in our academic model and operations, and allow us to expand our market share. Leverage and Expand Existing Portfolio.
In Peru, private education providers constitute 74% of the total higher-education market. In addition to capacity limitations, we believe that limited public resources, and the corresponding policy reforms to make higher education systems less dependent on the financial and operational support of local governments, have resulted in increased enrollments in private institutions relative to public institutions.
In Peru, private education providers constitute 76% of the total higher-education market. In addition to capacity limitations, we believe that limited public resources, and the corresponding policy reforms to make higher education systems less dependent on the financial and operational support of local governments, have resulted in increased enrollments in private institutions relative to public institutions.
Additionally, through targeted programs and multiple teaching modalities, we are able to serve the differentiated needs of non-traditional students in these markets. Our program and level of study mix for 2023 was as follows: Our Segments We have two reportable segments, which are summarized in the charts below.
Additionally, through targeted programs and multiple teaching modalities, we are able to serve the differentiated needs of non-traditional students in these markets. Our program and level of study mix for 2024 was as follows: Our Segments We have two reportable segments, which are summarized in the charts below.
Recognizing the Impact of Our People • Through the expertise, passion, and commitment of our people, we are making a positive impact within and beyond communities across Mexico and Peru. In 2023 we published our 2022 Impact Report which recognizes and celebrates the impact our people are creating, aligned to the United Nations Sustainable Development Goals.
Recognizing the Impact of Our People • Through the expertise, passion, and commitment of our people, we are making a positive impact within and beyond communities across Mexico and Peru. In 2024, we published our 2023 Impact Report which recognizes and celebrates the impact our people are creating, aligned to the United Nations Sustainable Development Goals.
The following information for our segments is presented as of December 31, 2023. Our Industry We operate higher education institutions in Mexico and Peru. These markets are characterized by what we believe is a significant imbalance between supply and demand.
The following information for our segments is presented as of December 31, 2024. Our Industry We operate higher education institutions in Mexico and Peru. These markets are characterized by what we believe is a significant imbalance between supply and demand.
Universities have to demonstrate to SUNEDU that they comply with, at a minimum, certain Basic Quality Conditions (“BQCs”) (i.e., that they have specified academic goals and that the degrees granted and plans of study are aligned with those goals; that their academic offerings are compatible with their planning goals (e.g., there is sufficient labor demand for careers offered); that there are only two regular semesters of studies per year; that they have appropriate infrastructure and equipment; that they engage in research; that they have a sufficient supply of qualified teachers, at least 25% of whom will need to be full-time; that they supply adequate basic complementary educational services (e.g., medical and psychological services and sports activities); that they provide appropriate placement office services; and that they have transparency of institutional information).
In order to keep their licenses in force, universities have to comply with, at a minimum, certain basic quality conditions (“BQCs”) (i.e., that they have specified academic goals and that the degrees granted and plans of study are aligned with those goals; that their academic offerings are compatible with their planning goals (e.g., there is sufficient labor demand for careers offered); that there are only two regular semesters of studies per year; that they have appropriate infrastructure and equipment; that they engage in research; that they have a sufficient supply of qualified teachers, at least 25% of whom will need to be full-time; that they supply adequate basic complementary educational services (e.g., medical and psychological services and sports activities); that they provide appropriate placement office services; and that they have transparency of institutional information).
REVOEs are granted for each program taught at each campus. If there is a change in the program or in the campus at which it is taught, the entity will need to get a new REVOE. The Federal Ministry of Education has issued a set of general resolutions ( Acuerdos ) that regulate the general requirements for obtaining REVOEs.
If there is a change in the program or in the campus at which it is taught, the entity will need to get a new REVOE. The Federal Ministry of Education has issued a set of general resolutions ( Acuerdos ) that regulate the general requirements for obtaining REVOEs.
In addition, many of our institutions and programs have earned the highest accreditation available, which provides us with a strong competitive advantage in local markets. For example, medical school licenses are often the most difficult to obtain and are only granted to institutions that meet rigorous standards. Throughout Mexico and Peru we operate 17 medical and seven dental schools.
In addition, many of our institutions and programs have earned the highest accreditation available, which provides us with a strong competitive advantage in local markets. For example, medical school licenses are often the most difficult to obtain and are only granted to institutions that meet rigorous standards. Throughout Mexico and Peru we operate 23 medical and nine dental schools.
To achieve our mission, we execute a strategy enabled by the following initiatives: Integration of Campus-Based Operations in Mexico and Peru. Our institutions in Mexico and Peru serve approximately 448,900 students in a relatively homogenous operating environment, creating a unique opportunity to harvest the benefits of scale.
To achieve our mission, we execute a strategy enabled by the following initiatives: Integration of Campus-Based Operations in Mexico and Peru. Our institutions in Mexico and Peru serve approximately 472,000 students in a relatively homogenous operating environment, creating a unique opportunity to harvest the benefits of scale.
In both Mexico and Peru, the private sector plays a meaningful role in higher education, bridging supply and demand imbalances created by a lack of capacity at public universities. In Mexico, private education providers constitute 37% of the total higher-education market (43% in states in which we have operations).
In both Mexico and Peru, the private sector plays a meaningful role in higher education, bridging supply and demand imbalances created by a lack of capacity at public universities. In Mexico, private education providers constitute 39% of the total higher-education market (46% in states in which we have operations).
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.
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 in-country networks.
The following table presents information about the institutions as of December 31, 2023: Reportable Segment (Enrollment) Higher Education Institution Year Joined Laureate Network Year Founded Mexico Universidad del Valle de México (UVM) 2000 1960 (242,000) Universidad Tecnológica de México (UNITEC) 2008 1966 Peru Universidad Peruana de Ciencias Aplicadas (UPC) 2004 1994 (206,900) CIBERTEC 2004 1983 Universidad Privada del Norte (UPN) 2007 1994 Competition We face competition in both of our reportable segments.
The following table presents information about the institutions as of December 31, 2024: Reportable Segment (Enrollment) Higher Education Institution Year Joined Laureate Network Year Founded Mexico Universidad del Valle de México (UVM) 2000 1960 (258,500) Universidad Tecnológica de México (UNITEC) 2008 1966 Peru Universidad Peruana de Ciencias Aplicadas (UPC) 2004 1994 (213,500) CIBERTEC 2004 1983 Universidad Privada del Norte (UPN) 2007 1994 Competition We face competition in both of our reportable segments.
According to data from the Organization for Economic Co-operation and Development (“OECD”), in countries that are members of the OECD, the earnings from employment for younger adults (25-34 years) completing higher education was approximately 66% higher, and the earnings advantage was more than twice as much among older adults (45-54 years), than those of younger and older adults with only an upper secondary education.
According to data from the Organization for Economic Co-operation and Development (“OECD”), in countries that are members of the OECD, the earnings from employment for younger adults (25-34 years) completing higher education was approximately 39% higher, and the earnings advantage reached 68% among older adults (45-54 years), than those of younger and older adults with only an upper secondary education.
Ongoing Training and Access to Education Assistance • Scholarships and discounts are made available at each of our five institutions for employees (an average of 81% of tuition is paid for employees).
Ongoing Training and Access to Education Assistance • Scholarships and discounts are made available at each of our five institutions for employees (an average of approximately 80% of tuition is paid for employees studying at one of our five institutions).
The Institutes and Colleges Law created two types of institutions: Higher Education Institutes (“Institutes”) which are dedicated to technical careers and Higher Education Colleges (“Colleges”) which are devoted to technical careers related to education, as well as science and information technology. Institutes grant Technical Bachelor Degrees and Professional Technical Degrees.
The technical-vocational institutes and colleges law enacted in 2016 (the “Institutes and Colleges Law”) created two types of institutions: Higher Education Institutes (“Institutes”), which are dedicated to 14 technical careers and Higher Education Colleges (“Colleges”), which are devoted to technical careers related to education, as well as science and information technology. Institutes grant technical bachelor degrees and professional technical degrees.
While global participation rates have increased for traditional higher education students (defined as 18-24 year olds), the market for higher education in Mexico and Peru is still significantly underpenetrated, at approximately 34% and 52%, respectively, as compared to approximately 60% in the United States. Strong Economic Incentives for Higher Education.
While global participation rates have increased for traditional higher education students (defined as 18-24 year olds), the market for higher education in Mexico and Peru, excluding technical-vocational institutes, is still significantly underpenetrated, at approximately 35% and 42%, respectively, as compared to approximately 55% in the United States. Strong Economic Incentives for Higher Education.
The General Law on Education ( Ley General de Educación ) in Mexico classifies studies in the following three categories: (i) Basic Education, which includes pre-school (kindergarten), elementary school and junior high school ( secundaria ); (ii) Mid-Superior Education, which includes high school ( preparatoria ) and equivalent studies, as well as professional education that does not consider preparatoria as a prerequisite; and (iii) Superior Education, which includes the studies taught after preparatoria, including undergraduate school ( licenciatura ), specialties ( especialidades ), master’s studies, doctorate studies and studies for teachers ( educación normal ). 13 The REVOEs are issued either by the Federal Ministry of Education under the General Law on Education or by any of the state Ministries of Education under the applicable state law.
The General Law on Education ( Ley General de Educación ) in Mexico classifies studies in the following three categories: (i) Basic Education, which includes pre-school (kindergarten), elementary school and junior high school ( secundaria ); (ii) Mid-Superior Education, which includes high school ( preparatoria ) and equivalent studies, as well as professional education that does not consider preparatoria as a prerequisite; and (iii) Superior Education, which includes the studies taught after preparatoria, including undergraduate school ( licenciatura ), specialties ( especialidades ), master’s studies, doctorate studies and studies for teachers ( educación normal ).
BQCs include: an appropriate institutional management guaranteeing a proper relation with the educational model of the institution; appropriate academic management and proper program studies aligned with the MINEDU norms; appropriate infrastructure and equipment to develop educational activities; adequate teachers and staff which, at a minimum, should consist of 20% full-time staff; and appropriate financial and economic provisions.
BQCs include: an appropriate institutional management guaranteeing a proper relation with the educational model of the institution; appropriate academic management and proper program studies aligned with the MINEDU norms; appropriate infrastructure and equipment to develop educational activities; adequate teachers, 20% of whom will need to be full-time; and appropriate financial and economic provisions.
With strong brands and highly reputed i nstitutions in Mexico and Peru, we believe that we are uniquely positioned to address these market opportunities. 4 Country Institution Enrollment at December 31, 2023 Market Segment QS Stars™ Overall University Rating Ratings/Rankings Mexico Universidad del Valle de México (UVM) 113,200 Premium/ Traditional «««« • Ranked Top 10 university in Mexico • 5-Star rated by QS Stars™ in categories of Employability, Inclusiveness, Online Learning & Social Responsibility Mexico Universidad Tecnológica de México (UNITEC) 128,800 Value/Teaching ««« • Largest private university in Mexico • 5-Star rated by QS Stars™ in categories of Employability, Inclusiveness, Online Learning & Social Responsibility Peru Universidad Peruana de Ciencias Aplicadas (UPC) 69,700 Premium/Traditional «««« • Ranked Top 5 university in Peru • 5-Star rated by QS Stars™ in categories of Employability, Inclusiveness, Online Learning & Social Responsibility Peru Universidad Privada del Norte (UPN) 117,200 Value/Teaching «««« • 3 rd largest private university in Peru • 5-Star rated by QS Stars™ in categories of Employability, Inclusiveness, Online Learning & Social Responsibility Peru CIBERTEC 20,000 Tech/Voc N/A • 3 rd largest private tech/voc institute in Peru Source s: QS Stars™, Guía Universitaria (UVM), AmericaEconomia (UPC) 5 Our institutions in Mexico and Peru offer traditional higher education students a private education alternative, with multiple brands and price points in each market and innovative programs and strong career-driven outcomes.
With strong brands and highly reputed i nstitutions in Mexico and Peru, we believe that we are uniquely positioned to address these market opportunities. 4 Country Institution Enrollment at December 31, 2024 Market Segment QS Stars™ Overall University Rating Ratings/Rankings Mexico Universidad del Valle de México (UVM) 124,400 Premium/ Traditional «««« • Ranked Top 5 university in Mexico • 5-Star rated by QS Stars™ in categories of Employability, Inclusiveness, Online Learning & Social Impact Mexico Universidad Tecnológica de México (UNITEC) 134,100 Value/Teaching ««« • Largest private university in Mexico • 5-Star rated by QS Stars™ in categories of Employability, Inclusiveness, Online Learning & Social Impact Peru Universidad Peruana de Ciencias Aplicadas (UPC) 72,100 Premium/Traditional «««« • Ranked #1 in educational sector in Peru • 5-Star rated by QS Stars™ in categories of Employability, Inclusiveness, Online Learning & Social Impact Peru Universidad Privada del Norte (UPN) 122,100 Value/Teaching «««« • 3 rd largest private university in Peru • 5-Star rated by QS Stars™ in categories of Employability, Inclusiveness, Online Learning & Social Impact Peru CIBERTEC 19,300 Tech/Voc N/A • 3 rd largest private tech/voc institute in Peru Source s: QS Stars™, Guía Universitaria (UVM), MERCO Institutional Reputation Ranking (UPC) 5 Our institutions in Mexico and Peru offer traditional higher education students a private education alternative, with multiple brands and price points in each market and innovative programs and strong career-driven outcomes.
In May 2023, Cibertec was granted an Institutes license renewal for a six-year period. Also during 2023, Cibertec was granted a Colleges license for a six-year period, which will now allow Cibertec to offer four-year programs for professional bachelor degrees. 15
In 2023, Cibertec's Institute was granted an Institutes license renewal for a six-year period. Also during 2023, Cibertec was granted a Colleges license for a six-year period, which allows Cibertec to offer programs for professional bachelor degrees. 15
We currently enroll approximately 448,900 students across our five institutions in Mexico and Peru, in campus-based, fully online, and hybrid learning programs. These students are supported by a workforce of more than 28,900 employees, including 16,000 academic staff.
Human Capital We currently enroll approximately 472,000 students across our five institutions in Mexico and Peru, in campus-based, fully online, and hybrid learning programs. Our students are supported by a workforce of more than 31,800 employees, including 18,000 academic staff.
Performance Management and Ongoing Development • Laureate has a company-wide approach to performance management, goal setting, feedback, and performance-based compensation, which, at a minimum, includes two formal review checkpoints per year. • In 2023, all members of Laureate’s executive team participated in a comprehensive executive coaching and development program and contributed to a range of culture-building and workforce development initiatives.
Performance Management and Ongoing Development • We have a company-wide approach to performance management, goal setting, feedback, and performance-based compensation, which, at a minimum, includes two formal review checkpoints per year. • In 2024, all members of our executive team continued to participate in an executive coaching and development program and contributed to a range of culture-building and workforce development initiatives.
Compensation and Employee Benefits • Employee compensation is reviewed and benchmarked annually against independent market data to ensure our compensation remains competitive and fair. • Senior leaders across the United States, Peru, and Mexico participate in our long-term equity incentive program as part of Laureate’s competitive compensation and talent retention initiatives. • We continue to audit all employee benefits to ensure there is no unintentional discrimination embedded in any of the benefits offered.
Compensation and Employee Benefits • Employee compensation is reviewed and benchmarked annually against independent market data to ensure our compensation remains competitive and fair. • Senior leaders across the United States, Mexico and Peru participate in our long-term equity incentive program as part of our competitive compensation and talent retention initiatives. • We continue to offer a wide range of benefits to our employees.
Available Information Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports are available free of charge through the “Financials” portion of our investor relations website at http://investors.laureate.net and on the SEC's website at www.sec.gov as soon as reasonably practical after they are filed with the SEC.
Becoming a public benefit corporation underscores our commitment to our purpose and our stakeholders, including students, regulators, employers, local communities and stockholders. 12 Available Information Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports are available free of charge through the “Financials” portion of our investor relations website at http://investors.laureate.net and on the SEC's website at www.sec.gov as soon as reasonably practical after they are filed with the SEC.
Many students require flexible learning modules to accommodate work and personal responsibilities. Often, these students are working adults who are looking to either complete an undergraduate or post-graduate degree, or who want to gain a credential to accelerate or change careers. Our fully online programs provide students with a high-quality curriculum experience to achieve their goals.
Many students require flexible learning modules to accommodate work and personal responsibilities. Often, these students are working adults who are looking to either complete an undergraduate or post-graduate degree, or who want to gain a credential to accelerate or change careers.
Our Segments and Institutions Laureate offers its educational services through two reportable segments: Mexico and Peru. We determine our segments based on information utilized by our chief operating decision maker to allocate resources and assess performance.
Our fully online programs provide students with a high-quality curriculum experience to achieve their goals. 9 Our Segments and Institutions Laureate offers its educational services through two reportable segments: Mexico and Peru. We determine our segments based on information utilized by our chief operating decision maker to allocate resources and assess performance.
Throughout 2023 shorter pulse surveys were conducted across Peru. In addition, multiple metrics are consistently tracked to monitor engagement and employee satisfaction. These metrics include voluntary attrition, changes in individual and team performance and outcomes, and reports to the Ethics and Compliance hotline.
In addition, multiple metrics are consistently tracked to monitor engagement and employee satisfaction, such as voluntary attrition, changes in individual and team performance and outcomes, and reports to the ethics and compliance hotline.
Technical-vocational institutes are regulated by the MINEDU, which grants operating licenses for six years, after which the Ministry conducts a revalidation process. Since 2016, a new law regarding technical-vocational institutes (the “Institutes and Colleges Law”) was enacted.
Technical-vocational institutes are regulated by the MINEDU, which grants operating licenses for six years, after which the Ministry conducts a revalidation process.
We have also registered or filed applications in the applicable jurisdictions in which we operate for the trademarks “La ureate Online International” and “Laureate Online Education.” In addition, we have the rights to trade names, logos and other intellectual property specific to most of our higher education institutions, in the countries in which those institutions operate. 10 Human Capital Expanding access to quality higher education and enriching communities through delivering market-leading outcomes for students requires the highest levels of engagement, commitment, and performance from our workforce.
We have also registered or filed applications in the applicable jurisdictions in which we operate for the trademarks “La ureate Online International” and “Laureate Online Education.” In addition, we have the rights to trade names, logos and other intellectual property specific to most of our higher education institutions, in the countries in which those institutions operate.
A new higher education bill was enacted in April 2021. No foreseeable material changes are expected to impact the business as a result of this bill and expected secondary provisions. Peruvian Regulation We operate three post-secondary education institutions in Peru, two of which are universities and one of which is a technical-vocational institute.
A new higher education bill was enacted in April 2021. No foreseeable material changes are expected to impact the business as a result of this bill and expected secondary provisions.
In 2022, our students, faculty and staff were able to safely return to campus and fully transitioned to blended learning modalities. Our new operating model is now targeting to have 40% to 60% percent of our student credit hours taken online going forward. Currently, we operate within this range with adaptability and flexibility.
Our operating model is targeting to have 40% to 60% percent of our student credit hours taken online going forward. Currently, we operate within this range with adaptability and flexibility.
SUNEDU allows for the educational services to be provided by three modalities: (i) face-to-face learning (with a maximum of 20% virtual credits), (ii) hybrid learning (with up to 60% of the total credits of the academic program allowed to be taken virtually) and (iii) virtual learning (credits taken virtually cannot exceed 80% of the total credits of undergraduate and working adult academic programs).
The University Law, as amended in August 2024, allows for the educational services to be provided by three modalities: (i) face-to-face learning (with a maximum of 20% virtual credits), (ii) hybrid learning (with up to 60% of the total credits of the academic program allowed to be taken virtually) and (iii) virtual learning (up to 100% of academic credits, except for programs that require in-person experiments and practices).
Safety and Security • We remain committed to the safety and well-being of all employees, students, and other stakeholders. In both Mexico and Peru, we employ dedicated security teams to develop and execute strategies to promote the safety of all students, employees, and campuses.
Throughout 2024, we took a range of actions to advance our commitment to safety and security. • In both Mexico and Peru, we employ dedicated security teams to develop and execute strategies to promote the safety of all students, employees, and campuses.
Our stated public benefit is firmly rooted in our company mission and our belief that when our students succeed, countries prosper and societies benefit. Becoming a public benefit corporation underscores our commitment to our purpose and our stakeholders, including students, regulators, employers, local communities and stockholders.
Our stated public benefit is firmly rooted in our company mission and our belief that when our students succeed, countries prosper and societies benefit.
These institutions, which we collectively refer to as the Laureate International Universities n etwork, are leading brands in their respective markets and offer a broad range of undergraduate and graduate degrees through campus-based, online and hybrid programs. Collectively, we have approximately 448,900 students enrolled at five institutions with over 50 campuses as of December 31, 2023.
Item 1. Business General We operate a portfolio of degree-granting higher education institutions in Mexico and Peru. These institutions, which we collectively refer to as the Laureate International Universities n etwork, are leading brands in their respective markets and offer a broad range of undergraduate and graduate degrees through campus-based, online and hybrid programs.
Significant discounts are also provided for immediate family members of employees in Mexico and Peru. • In the United States, education assistance is offered to all corporate employees to pursue additional education opportunities or certifications. • Regular workshops and training are offered to all employees, including courses focused on Ethics and Compliance and IT security. 11 Employee Engagement • Comprehensive company-wide engagement surveys are conducted every two years, with the next scheduled to occur in 2024.
Significant discounts are also provided for immediate family members of employees in Mexico and Peru. • In the United States, education assistance is offered to all corporate employees to pursue additional education opportunities or certifications. • Regular workshops covering a wide variety of relevant topics complement mandatory training for all employees (which include courses on Ethics and Compliance and cybersecurity).
Our institutions in Mexico and Peru operate within scaled country networks, which provide advantages in terms of shared infrastructure, technology, curricula and operational best practices.
Collectively, we have approximately 472,000 students enrolled at five institutions with over 50 campuses as of December 31, 2024. Our institutions in Mexico and Peru operate within scaled country networks, which provide advantages in terms of shared infrastructure, technology, curricula and operational best practices.
For more information regarding the Company’s Cybersecurity risk management, strategy and governance, see “Item 1C.—Cybersecurity.” • Our employees are expected to complete mandatory cybersecurity training multiple times per year, covering a wide range of topics aimed at keeping employees and the business protected from increasing cyber risks. • Strict data management controls are enforced across the company to ensure our workforce and human capital data is appropriately and securely captured and stored.
Incidents and risks are reported, reviewed, and addressed through established cross-functional incident response teams. • In addition, our focus on safety and security is complemented by our long-standing Discrimination and Harassment policy. • Cybersecurity is a major area of focus across the Company. • Our employees are expected to complete mandatory cybersecurity training multiple times per year, covering a wide range of topics aimed at keeping employees and the business protected from increasing cyber risks. • Strict data management controls are enforced across the Company to ensure our workforce and human capital data is appropriately and securely captured and stored.
Our History Since making our first investment in global higher education in 1999, we have focused on expanding access to differentiated higher education and learning opportunities to traditionally underserved areas of the world. In August 2007, we were acquired in a leveraged buyout by a consortium of investment funds and other investors.
Information contained on our website is not incorporated by reference herein and is not part of this Annual Report on Form 10-K. Our History Since making our first investment in global higher education in 1999, we have focused on expanding access to differentiated higher education and learning opportunities to traditionally underserved areas of the world.
In 2014, the Peruvian Congress enacted a new law (the “University Law”) to regulate the establishment, operation, monitoring and closure of universities and to promote continuous improvement of quality at Peruvian universities.
The Ministry of Education (“MINEDU”) has overall responsibility for the national education system. The university law enacted by the Peruvian Congress in 2014 (the “University Law”) regulates the establishment, operation, monitoring and closure of universities and promotes continuous improvement of quality at Peruvian universities.
Information contained on our website is not incorporated by reference herein and is not a part of this Annual Report on Form 10-K. • These Impact Reports feature data and case studies tracked by our Impact Committee–comprised of Impact leaders from Mexico and Peru and from multiple functional areas including Finance, Communications, Academic, Operations and Ethics and Compliance.
Our Impact Reports are available at laureate.net/impact. • These Impact Reports feature data and case studies tracked by our Impact and our Academic Quality Committees –comprised of impact and academic leaders from Mexico and Peru and from multiple functional areas including Finance, Communications, Academic, Operations and Ethics and Compliance.
On February 6, 2017, we consummated our initial public offering and shares of our common stock began trading on the Nasdaq under the symbol “LAUR”. 12 Public Benefit Corporation Status In October 2015, we redomiciled in Delaware as a public benefit corporation as a demonstration of our long-term commitment to our mission to benefit our students and society.
Public Benefit Corporation Status In October 2015, we redomiciled in Delaware as a public benefit corporation as a demonstration of our long-term commitment to our mission to benefit our students and society. Public benefit corporations are intended to produce a public benefit and to operate in a responsible and sustainable manner.
Peruvian law provides that universities and technical-vocational institutes can be operated as public or private entities and that the private entities may be organized for profit. The Ministry of Education (“MINEDU”) has overall responsibility for the national education system.
Peruvian Regulation We operate three post-secondary education institutions in Peru, two of which are universities, and one of which is a technical-vocational institution that is licensed as both a college and an institute. Peruvian law provides that universities and technical-vocational institutes can be operated as public or private entities and that the private entities may be organized for profit.
While institutional autonomy is still recognized, and universities are permitted to create their own internal governance rules and determine their own academic, management and economic systems, including curriculum design and entrance and graduation requirements, all of these matters are now subject to review and evaluation by SUNEDU through its periodic review of universities as part of a license renewal 14 process.
Under the University Law, institutional autonomy is recognized, and universities are permitted to create their own internal governance rules and determine their own academic, management and economic systems, including curriculum design and entrance and graduation requirements. In July 2022, the Peruvian Congress enacted a law that eliminated SUNEDU's powers for the approval of new careers, schools and faculties.
More than 99% of our employees are based in Mexico or Peru, and our corporate team extends across the United States, Switzerland, the Netherlands, Brazil, Chile, and Honduras. The combination of dedicated in-country teams supported by a diverse, international corporate workforce continues to serve the company well.
More than 99% of our employees are based in Mexico or Peru, and most of our corporate team are based in the United States. 10 We believe our future success depends on our ability to attract, develop, and retain skilled employees in a highly competitive talent market.
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Item 1. Business Our continuing operations include Mexico and Peru. Unless otherwise indicated, the information in or incorporated by reference into this Form 10-K, including our segment information, relates only to our continuing operations. General We operate a portfolio of degree-granting higher education institutions in Mexico and Peru.
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Internally, this work is led by our Senior Vice President, People and Culture, in close collaboration with the Chief Executive Officer and our executive leadership team. • Various committees of our Board of Directors also take an active role in human capital oversight and talent management.
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The percentage of student credit hours taken online in our campus-based institutions was approximately 27% for 2019. During most of 2020 and 2021, due to the COVID-19 pandemic, all of our students were effectively transitioned to an online learning environment, at scale.
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This includes the Compensation Committee which works with top-tier external consultants to ensure compensation is benchmarked against industry standards, and our Nominating and Corporate Governance Committee manages a talent matrix for our Board of Directors to ensure existing and potential future Board members bring skills and experience most closely aligned with the needs of our business as we continue to grow.
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Throughout 2023, we continued to strengthen our culture through a range of strategies, including a focus on accelerating our progress in support of gender equality. Below are examples of the pillars that underpin our Human Capital strategy, including our focus on diversity and inclusion.
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Employee Engagement • Comprehensive employee engagement surveys are conducted regularly. In 2024, employees in Mexico and the United States responded to engagement surveys and our employees in Peru are scheduled to do so in the first half of 2025.
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The Nominating and Corporate Governance Committee oversees our social impact strategy, including diversity and inclusion efforts, and our Compensation Committee reviews compensation practices and establishes annual performance targets and related compensation-based incentives. • Our Chief People Officer is responsible for leading the development and execution of company-wide culture-building and talent development initiatives. • Our executive team is committed to developing strategies to increase the number of women in positions of leadership, accelerate company-wide culture-building activities, and build a more diverse and inclusive workforce.
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Our overall engagement score in Mexico increased from 72% to 73% in 2024, and the overall engagement score for our US-based corporate team was 84%, an increase from 70% in 2022.
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Diversity and Inclusion • Throughout 2023, we took a range of actions to advance our commitment to diversity and inclusion.
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Our portfolio of benefits support and promote the physical and mental health of our employees and are regularly benchmarked to ensure competitiveness against industry standards. 11 Safety and Security • We remain committed to the safety and well-being of all employees, students, and other stakeholders.
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These efforts built upon our long-standing Discrimination and Harassment policy (available at https://www.laureate.net/wp-content/uploads/2024/02/Laureate-Discrimination-and-Harassment-Policy.pdf), which includes a stated commitment to equal employment opportunities. • Promoting gender equality was a significant area of focus throughout 2023, as reflected by specific programs to support and promote women in positions of leadership.
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In August 2007, we were acquired in a leveraged buyout by a consortium of investment funds and other investors. On February 6, 2017, we consummated our initial public offering and shares of our common stock began trading on the Nasdaq under the symbol “LAUR”.
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Significant milestones achieved during 2023 included: • Co-designing a Women in Leadership program, building upon on an established program known as Compass. In 2024, we intend to expand the program to include more women across Laureate, whom will have the opportunity to participate in a version of the program adapted specifically for us.
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The REVOEs are issued either by the Federal Ministry of Education under the General Law on Education or by any of the state Ministries of Education under the applicable state law. REVOEs are granted for each program taught at each campus.
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Program participants are expected to be selected from a range of geographies and functions, as well as from multiple levels of the organization. • At the end of 2023, 29% of Laureate’s senior leaders were women, an increase of 6% compared to the prior year. • Strategies to eliminate gender bias in all recruitment practices were introduced across Peru, and we will seek to expand these practices across Mexico in 2024.
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In August 2024, the Peruvian Congress amended the University Law to make licenses permanent, which replaced SUNEDU's authority to grant renewable licenses for specific time periods.
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Incidents and risks are reported, reviewed, and addressed through established cross-functional incident response teams. • Cybersecurity is a major area of focus across the Company.
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Both UPC and UPN have had licenses granted by SUNEDU in place since 2017.
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Workplace Flexibility • We value flexibility for employees and, as much as possible, provide opportunities for hybrid work for those not required to teach (or support students) in-person on campus.
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Our workforce continues to be highly productive in a hybrid modality. • In the United States, corporate employees, most of whom work remotely, are offered access to co-working locations in their city of residence, along with access to our headquarters in Miami.
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Public benefit corporations are intended to produce a public benefit and to operate in a responsible and sustainable manner.
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As of July 2022, Law 31520 modified the composition of the SUNEDU Board of Directors and eliminated its powers for the approval of new careers, schools and faculties. Under the University Law, university licenses are granted for specific time periods but are renewable, and are granted by SUNEDU.
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Both UPC and UPN had their licenses renewed in 2017, in each case for a period of six years, extended one additional year due to COVID-19. Accordingly, both UPC and UPN will undergo the renewal process in 2025.
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In November 2023, SUNEDU stipulated that health sciences undergraduate programs can only be carried out in face-to-face mode. This requirement, however, does not apply to previously approved programs and will only apply at the time of an institution's relicensing, which for UPC and UPN will be in 2025.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeAny general economic slowdown or recession that disproportionately impacts the countries in which our institutions operate could have a material adverse effect on our business, financial condition, cash flows and results of operations. In the event of a sustained market deterioration, we may need additional liquidity, which would require us to evaluate available alternatives and take appropriate actions.
Biggest changeIn the event of a sustained market deterioration, we may need additional liquidity, which would require us to evaluate available alternatives and take appropriate actions. We have in the past had material weaknesses in our internal control over financial reporting.
If we cannot respond effectively to market changes, our business may be materially adversely affected. Even if we are able to develop acceptable new programs, we may 18 not be able to introduce these new programs as quickly as students or employers require or as quickly as our competitors are able to introduce competing programs.
If we cannot respond effectively to market changes, our business may be materially adversely affected. Even if we 18 are able to develop acceptable new programs, we may not be able to introduce these new programs as quickly as students or employers require or as quickly as our competitors are able to introduce competing programs.
See above risk factor regarding threats experienced by us and other global companies as continued targets of cyber security attacks and that, despite having experienced threats, we are not aware that we have experienced a material cyber-security breach. The preventative actions we take to reduce the risk of cyber incidents and protect our information may be insufficient.
See above risk factor regarding threats experienced by us and other global companies as continued targets of cyber security attacks and that, despite having experienced attacks and threats, we are not aware that we have experienced a material cyber-security breach. The preventative actions we take to reduce the risk of cyber incidents and protect our information may be insufficient.
Depending upon the severity of El Niño and its resulting impact on Peru and its economy, we may experience a range of disruptions, including campus closures, reductions in enrollment and flood-related damage, which could have a material adverse effect on our financial condition and results of operations.
Depending upon the severity of El Niño and its resulting impact on Peru and its economy, we may experience a range of disruptions, including reductions in enrollment, campus closures and flood-related damage, which could have a material adverse effect on our financial condition and results of operations.
Upgrading the facilities at our institutions could be difficult for a number of reasons, including the following: 22 • our properties may not have the capacity or configuration to accommodate proposed renovations; • construction and other costs may be prohibitive; • we may fail to obtain regulatory approvals; • it may be difficult and expensive to comply with local building and fire codes; • we may be unable to finance construction and other costs; and • we may not be able to negotiate reasonable terms with our landlords or developers or complete the work within acceptable timeframes.
Upgrading the facilities at our institutions could be difficult for a number of reasons, including the following: • our properties may not have the capacity or configuration to accommodate proposed renovations; • construction and other costs may be prohibitive; • we may fail to obtain regulatory approvals; • it may be difficult and expensive to comply with local building and fire codes; • we may be unable to finance construction and other costs; and • we may not be able to negotiate reasonable terms with our landlords or developers or complete the work within acceptable timeframes.
The ability of our operating subsidiaries to pay dividends or to make distributions or other payments to their parent companies or directly to us will depend on their respective operating results and may be restricted by, among other things, the laws of their respective jurisdictions of organization, regulatory requirements, agreements entered into by those operating subsidiaries and the covenants of any existing or future outstanding indebtedness that we or our subsidiaries may incur.
The ability of our operating subsidiaries to pay dividends or to make distributions or other payments to their parent companies or directly to us will depend on their respective operating results and may be restricted by, among other things, the laws of their respective jurisdictions of organization, regulatory requirements, agreements entered into by those operating 25 subsidiaries and the covenants of any existing or future outstanding indebtedness that we or our subsidiaries may incur.
If such a transaction were to occur and the Peruvian tax authorities sought to collect the Peruvian capital gains taxes from the Company’s Peruvian subsidiaries that were not paid by such transferor, it could have a material adverse effect on our business, financial condition or results of operations. Item 1B. Unresolved Staff Comments None.
If such a transaction were to occur and the 27 Peruvian tax authorities sought to collect the Peruvian capital gains taxes from the Company’s Peruvian subsidiaries that were not paid by such transferor, it could have a material adverse effect on our business, financial condition or results of operations. Item 1B. Unresolved Staff Comments None.
The outcome of litigation, particularly class action lawsuits, regulatory actions and intellectual property claims, is difficult to assess or quantify. Plaintiffs in these types of lawsuits may seek recovery of very large or indeterminate amounts, or may assert criminal charges, and the magnitude of the potential loss relating to these lawsuits may remain unknown for substantial periods of time.
The outcome of litigation, particularly class action lawsuits, regulatory actions and intellectual property claims, is difficult to assess or quantify. Plaintiffs in these 23 types of lawsuits may seek recovery of very large or indeterminate amounts, or may assert criminal charges, and the magnitude of the potential loss relating to these lawsuits may remain unknown for substantial periods of time.
Establishing new academic programs or modifying existing academic programs also may require us to make investments in specialized personnel and capital expenditures, increase marketing efforts and reallocate resources away from other uses. We may have limited experience with the subject matter of new programs and may need to modify our systems and strategy.
Establishing new academic programs or modifying existing academic programs also may require us to make investments in specialized personnel, technology and capital expenditures, increase marketing efforts and reallocate resources away from other uses. We may have limited experience with the subject matter of new programs and may need to modify our systems and strategy.
Our Third Amended and Restated Credit Agreement dated as of October 7, 2019, as amended in September 2023 (and as may be further amended from time to time, the “Credit Agreement”), which governs our multi-currency revolving credit facility (the 24 “Revolving Credit Facility”), contains various covenants that may limit our ability to engage in specified types of transactions.
Our Third Amended and Restated Credit Agreement dated as of October 7, 2019, as amended in September 2023 (and as may be further amended from time to time, the “Credit Agreement”), which governs our multi-currency revolving credit facility (the “Revolving Credit Facility”), contains various covenants that may limit our ability to engage in specified types of transactions.
While we believe that this designation and 25 obligation will benefit the Company given the importance to our long-term success of our commitment to education, it could cause our board of directors to make decisions and take actions not in keeping with the short-term or more narrow interests of our stockholders.
While we believe that this designation and obligation will benefit the Company given the importance to our long-term success of our commitment to education, it could cause our Board of Directors to make decisions and take actions not in keeping with the short-term or more narrow interests of our stockholders.
These sales, or the possibility that these sales may occur, also might make it more difficult for us to raise capital through future sales of equity securities at a time and at a price that we deem appropriate, or at all. The trading price of our common stock is subject to volatility.
These sales, or the possibility that these sales may occur, also might make it more difficult for us to raise capital through future sales of equity securities at a time and at a price that we deem appropriate, or at all. 26 The trading price of our common stock is subject to volatility.
As a result, all gains and losses resulting from the remeasurement of the financial results of operations in such country and other transactional foreign exchange gains and losses would be reflected in our earnings, which could result in volatility within our earnings, rather than as a component of our comprehensive income within stockholders’ equity.
As a result, all gains and losses resulting from the 19 remeasurement of the financial results of operations in such country and other transactional foreign exchange gains and losses would be reflected in our earnings, which could result in volatility within our earnings, rather than as a component of our comprehensive income within stockholders’ equity.
This choice of forum provision, however, may limit a stockholder’s ability to bring a claim in a judicial forum that it finds favorable for disputes with us or any of our directors, officers, other employees or stockholders, which may 26 discourage lawsuits with respect to such claims.
This choice of forum provision, however, may limit a stockholder’s ability to bring a claim in a judicial forum that it finds favorable for disputes with us or any of our directors, officers, other employees or stockholders, which may discourage lawsuits with respect to such claims.
For example, in 2017, a magnitude 7.1 earthquake struck Mexico, causing a temporary suspension of activities at several UVM and UNITEC campuses that lasted 12 days on average, and we incurred significant direct costs for repairs due to the earthquake.
For example, in 2017, a magnitude 7.1 earthquake struck 22 Mexico, causing a temporary suspension of activities at several UVM and UNITEC campuses that lasted 12 days on average, and we incurred significant direct costs for repairs due to the earthquake.
We have in the past had material weaknesses in our internal control over financial reporting. We have identified and remediated material weaknesses in the past and may in the future discover areas of our internal financial and accounting controls and procedures that need improvement. Our internal control over financial reporting will not prevent or detect all errors and all fraud.
We have identified and remediated material weaknesses in the past and may in the future discover areas of our internal financial and accounting controls and procedures that need improvement. Our internal control over financial reporting will not prevent or detect all errors and all fraud.
As a result of any of these events, we may not be able to conduct normal business operations and may be required to incur significant expenses in order to resume normal business operations. As a result, our revenues and results of operations may be materially adversely affected.
As a result of any of these events, we may not be able to conduct normal business 20 operations and may be required to incur significant expenses in order to resume normal business operations. As a result, our revenues and results of operations may be materially adversely affected.
Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud will be detected.
Because of the inherent limitations in all control systems, 24 no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud will be detected.
While the Credit Agreement provide s for quarterly compliance with the Consolidated Senior Secured Debt to Consolidated EBITDA Ratio, as defined in the Credit Agreement, as of December 31, 2023, we were not required to comply with this covenant. We rely on funds from our operating subsidiaries to meet our debt service and other obligations.
While the Credit Agreement provide s for quarterly compliance with the Consolidated Senior Secured Debt to Consolidated EBITDA Ratio, as defined in the Credit Agreement, as of December 31, 2024, we were not required to comply with this covenant. We rely on funds from our operating subsidiaries to meet our debt service and other obligations.
We conduct all of our operations through certain of our subsidiaries, and we have no significant assets other than cash of approximately $8 million as of December 31, 2023 held at corporate entities and the capital stock or other control rights of our subsidiaries.
We conduct all of our operations through certain of our subsidiaries, and we have no significant assets other than cash of approximately $16 million as of December 31, 2024 held at corporate entities and the capital stock or other control rights of our subsidiaries.
This tax applies if the value of stock determined under certain Peruvian valuation rules (calculated in PEN) transferred multiplied by the Peru Ratio exceeds approximately $53 million applying the PEN/USD exchange rate of December 31, 2023 (the “Threshold”). The Threshold is calculated in PEN and changes with currency exchange rates.
This tax applies if the value of stock determined under certain Peruvian valuation rules (calculated in PEN) transferred multiplied by the Peru Ratio exceeds approximately $57 million applying the PEN/USD exchange rate at December 31, 2024 (the “Threshold”). The Threshold is calculated in PEN and changes with currency exchange rates.
Additional challenges associated with the conduct of our business overseas that may materially adversely affect our operating results include: • our presence solely in Latin America presents risks relating to regional economic pressures; • each of our institutions is subject to unique business risks and challenges, including competitive pressures and diverse pricing environments at the local level; • difficulty maintaining quality standards consistent with our brands and with local accreditation requirements; • potential economic and political instability in the countries in which we operate, including student unrest; • fluctuations in exchange rates, possible currency devaluations, inflation and hyperinflation; • compliance with a wide variety of foreign laws and regulations; • expropriation of assets by governments; • lower levels of availability or use of the Internet, through which our online programs are delivered; • limitations on the repatriation and investment of funds and foreign currency exchange restrictions; and • acts of terrorism, public health risks, crime and natural disasters, particularly in areas in which we have significant operations.
Additional challenges associated with the conduct of our business overseas that may materially adversely affect our operating results include: • our presence solely in Latin America presents risks relating to regional economic pressures; • each of our institutions is subject to unique business risks and challenges, including competitive pressures and diverse pricing environments at the local level; • difficulty maintaining quality standards consistent with our brands and with local accreditation requirements; • potential economic and political instability in the countries in which we operate, including student unrest; • changes in political leadership, whether in Mexico, Peru or the U.S., and subsequent changes to laws and regulatory regimes including new tariffs, trade restrictions and trade policies; • fluctuations in exchange rates, possible currency devaluations, inflation and hyperinflation; • compliance with a wide variety of foreign laws and regulations; • expropriation of assets by governments; • lower levels of availability or use of the Internet, through which our online programs are delivered; • limitations on the repatriation and investment of funds and foreign currency exchange restrictions; and • acts of terrorism, public health risks, crime and natural disasters, particularly in areas in which we have significant operations.
Even if our institutions are able to develop acceptable new programs and adapt to new technologies, our institutions may not be able to begin offering those new programs and technologies as quickly as required by prospective students and employers or as quickly as our competitors begin offering similar programs.
Even if our institutions are able to develop acceptable new programs and adapt to new technologies (such as AI and machine learning), our institutions may not be able to begin offering those new programs and technologies as quickly as required by prospective students and employers or as quickly as our competitors begin offering similar programs.
As of December 31, 2023, the net carrying value of our goodwill and other intangible assets totaled approximately $831 million. Goodwill represents the excess of cost over the fair market value of net assets acquired in business combinations.
As of December 31, 2024, the net carrying value of our goodwill and other intangible assets totaled approximately $711 million. Goodwill represents the excess of cost over the fair market value of net assets acquired in business combinations.
We continually seek to maintain and improve the content of our existing academic programs and develop new programs in order to meet changing market needs. Revisions to our existing academic programs and the development of new programs may not be accepted by existing or prospective students or employers in all instances.
We continually seek to maintain and improve the content of our existing academic programs and develop new programs in order to meet changing market needs, including through the use of AI and machine learning. Revisions to our existing academic programs and the development of new programs may not be accepted by existing or prospective students or employers in all instances.
We have invested, and expect to continue to invest, significant resources to comply with privacy laws and regulations. 21 A breach, theft or loss of personal information regarding our students and their families, our employees, or other persons that is held by us or our vendors, or a violation of the laws and regulations governing privacy in one or more of the countries in which we operate, could result in significant penalties or legal liability, reputational damage, and/or remediation and compliance costs, which could be substantial and materially adversely affect our business, financial condition and results of operations.
A breach, theft or loss of personal information regarding our students and their families, our employees, or other persons that is held by us or our vendors, or a violation of the laws and regulations governing privacy in one or more of the countries in which we operate, could result in significant penalties or legal liability, reputational damage, and/or remediation and compliance costs, which could be substantial and materially adversely affect our business, financial condition and results of operations.
There is no assurance that we will be able to maintain or accelerate the current growth rate, effectively manage expanding operations, build expansion capacity, or achieve planned growth on a timely or profitable basis.
There is no assurance that we will be able to maintain or accelerate the current growth rate, effectively manage expanding operations, build new campuses, expand capacity at current locations, or achieve planned growth on a timely or profitable basis.
An epidemic, pandemic or other public health emergency, such as the COVID-19 pandemic and the efficacy and use of COVID-19 vaccines, in the locations in which our students, faculty, and staff live, work and attend classes could have an adverse effect on our business, financial condition, cash flows and results of operations.
An epidemic, pandemic or other public health emergency in the locations in which our students, faculty, and staff live, work and attend classes could have an adverse effect on our business, financial condition, cash flows and results of operations.
In addition, we rely on intercompany loan repayments and other payments from our operating subsidiaries to meet any existing or future debt service and other obligations, a substantial portion of which are denominated in U.S. dollars.
As a result, we rely on our operating subsidiaries to pay dividends or to make distributions or other payments to their parent companies. In addition, we rely on intercompany loan repayments and other payments from our operating subsidiaries to meet any existing or future debt service and other obligations, a substantial portion of which are denominated in U.S. dollars.
In order to maintain our growth, we will need to attract a larger percentage of students in existing markets and increase our addressable market by adding locations in new markets and rolling out new academic programs.
Our representatives also make presentations at upper secondary schools. In order to maintain our growth, we will need to attract a larger percentage of students in existing markets and increase our addressable market by adding locations in new markets and rolling out new academic programs.
An epidemic, pandemic or other public health emergency, such as the global coronavirus (COVID-19) pandemic, could have a material adverse effect on our business, financial condition, cash flows and results of operations.
An epidemic, pandemic or other public health emergency could have a material adverse effect on our business, financial condition, cash flows and results of operations.
We rely upon our information technology systems and infrastructure to operate our business. We run the online operations of our institutions on different platforms, which are in various stages of development. The performance and reliability of these online operations are critical to the reputation of our institutions and our ability to attract and retain students.
We run the online operations of our institutions on different platforms, which are in various stages of development. The performance and reliability of these online operations are critical to the reputation of our institutions and our ability to attract and retain students.
Mexico and Peru have passed or are considering enhanced privacy and data security regulations, resulting in additional compliance burdens and uncertainty as to how some of these laws will be interpreted.
Mexico and Peru have passed or are considering enhanced privacy and data security regulations, resulting in additional compliance burdens and uncertainty as to how some of these laws will be interpreted. We have invested, and expect to continue to invest, significant resources to comply with privacy laws and regulations.
For the year ended December 31, 2023, a hypothetical 10% adverse change in average annual foreign currency exchange rates would have decreased our operating income and our Adjusted EBITDA by approximately $40.6 million and $47.7 million, respectively.
For the year ended December 31, 2024, a hypothetical 10% adverse change in average annual foreign currency exchange rates would have decreased our revenue, operating income and Adjusted EBITDA by approximately $156.6 million, $43.6 million and $50.4 million, respectively.
A user who circumvents security measures could misappropriate proprietary information or cause interruptions or malfunctions in our operations. Although we use security and business controls to limit access and use of personal information, a third party may be able to circumvent those security and business controls, which could result in a breach of student or employee privacy.
Although we use security and business controls to limit access and use of personal information, a third party may be able to circumvent those security and business controls, which could result in a breach of student or employee privacy.
Confidential information also may become available to third parties inadvertently when we integrate or convert computer networks into our network following an acquisition of an institution or in connection with upgrades from time to time. Due to the sensitive nature of the information contained on our networks, such as students’ grades, our networks may be targeted by hackers.
Confidential information also may become available to third parties inadvertently when we integrate or convert computer networks into our network following an acquisition of an institution or in connection with upgrades from time to time.
Although we believe that our estimates are reasonable, the ultimate tax outcome may differ from the amounts recorded in our financial statements and may materially adversely affect our financial results in the period or periods for which such determination is made. 19 Our reported revenues and earnings may be negatively affected by the strengthening of the U.S. dollar and currency exchange rates.
Although we believe that our estimates are reasonable, the ultimate tax outcome may differ from the amounts recorded in our financial statements and may materially adversely affect our financial results in the period or periods for which such determination is made.
As a result, we may be required to expend significant resources to protect against the threat of these security breaches or to alleviate problems caused by these incidents.
A user who circumvents security measures could misappropriate proprietary information or cause interruptions to or malfunctions in operations. As a result, we may be required to expend significant resources to protect against the threat of these security breaches or to alleviate problems caused by these incidents.
Like other global companies, our computer systems are regularly subject to and will continue to be the target of computer viruses, malware or other malicious codes (including ransomware), unauthorized access, cyber-attacks or other computer-related penetrations. While we have experienced threats to our data and systems, to date, we are not aware that we have experienced a material cyber-security breach.
Like other global companies, our computer systems are regularly subject to and will continue to be the target of computer viruses, malware or other malicious codes (including ransomware), unauthorized access, cyber-attacks or other computer-related penetrations (including through the use of AI).
See “Item 3—Legal Proceedings.” In the past, we have divested a number of businesses. As customary, we have contractually agreed to indemnify the buyers against certain liabilities and obligations related to the divestiture.
See “Item 3—Legal Proceedings.” In the past, we have divested a number of businesses. As customary, we have contractually agreed to indemnify the buyers against certain liabilities and obligations related to the divestiture. If we incur costs associated with indemnification claims related to our divestitures, our business, financial condition and results of operations may be adversely affected.
We may have exposure to greater-than-anticipated tax liabilities. As a multinational corporation, we are subject to income taxes as well as non-income based taxes in the United States and various foreign jurisdictions.
Hyperinflation in any of the countries in which we operate may have a material adverse effect on our business, financial condition, results of operations and cash flows. We may have exposure to greater-than-anticipated tax liabilities. As a multinational corporation, we are subject to income taxes as well as non-income based taxes in the United States and various foreign jurisdictions.
We report revenues, costs and earnings in U.S. dollars, while our institutions generally collect tuition in the local currency. Exchange rates between the U.S. dollar and the local currency in the countries where we operate institutions are likely to fluctuate from period to period. In 2023, essentially all of our revenues originated outside the United States.
Exchange rates between the U.S. dollar and the local currency in the countries where we operate institutions are likely to fluctuate from period to period. In 2024, essentially all of our revenues originated outside the United States. We translate revenues and other results denominated in foreign currencies into U.S. dollars for our consolidated financial statements.
The complexity of these marketing efforts contributes to their cost. If we are unable to advertise and market our institutions and programs successfully, our ability to attract and enroll new students could be materially adversely affected and, consequently, our financial performance could suffer.
If we are unable to advertise and market our institutions and programs successfully, our ability to attract and enroll new students could be materially adversely affected and, consequently, our financial performance could suffer. We use marketing tools such as the Internet, radio, television and print media advertising to promote our institutions and programs.
If these market disruptions occur in the future, we may not be able to access the capital markets to obtain funding needed to refinance our existing indebtedness or conduct our business.
If these market disruptions occur in the future, we may not be able to access the capital markets to obtain funding needed to refinance our existing indebtedness or conduct our business. In addition, changes in the capital or other legal requirements applicable to commercial lenders may affect the availability or increase the cost of borrowing under our Revolving Credit Facility.
In addition, our efforts may be materially adversely affected by increased competition in the online education market or because of problems with the performance or reliability of our online program infrastructure. Our success depends, in part, on the effectiveness of our marketing and advertising programs in recruiting new students.
In addition, our efforts may be materially adversely affected by increased competition in the online education market and our competitors' increasing use of artificial intelligence (“AI”) and machine learning or because of problems with the performance or reliability of our online program infrastructure.
If we incur costs associated with indemnification claims related to our divestitures, our business, financial condition and results of operations may be adversely affected. 23 We are subject to anti-corruption laws in the jurisdictions in which we operate, including the U.S. Foreign Corrupt Practices Act (the “FCPA”), as well as trade compliance and economic sanctions laws and regulations.
We are subject to anti-corruption laws in the jurisdictions in which we operate, including the U.S. Foreign Corrupt Practices Act (the “FCPA”), as well as trade compliance and economic sanctions laws and regulations.
Any reduction in net income and operating income resulting from the write down or impairment of goodwill and indefinite-lived intangibles could adversely affect our financial results. If economic or industry conditions deteriorate or if market valuations decline, including with respect to our common stock, we may be required to impair goodwill and indefinite-lived intangibles in future periods.
Any reduction in net income and operating income resulting from the write down or impairment of goodwill and indefinite-lived intangibles could adversely affect our financial results.
However, over time, the sophistication of these threats continues to increase. The preventative actions we take to reduce the risk of cyber incidents and protect our information and systems may be insufficient. A user who circumvents security measures could misappropriate proprietary information or cause interruptions to or malfunctions in operations.
While we have experienced attacks and threats to our data and systems, to date, we are not aware that we have experienced a material cyber-security breach. However, over time, the sophistication of these threats continues to increase. The preventative actions we take to reduce the risk of cyber incidents and protect our information and systems may be insufficient.
In order to maintain and increase our revenues and margins, we must continue to develop our admissions programs and attract new students in a cost-effective manner. The level of marketing and advertising and types of strategies used are affected by the specific geographic markets, regulatory compliance requirements and the specific individual nature of each institution and its students.
The level of marketing and advertising and types of strategies used are affected by the specific geographic markets, regulatory compliance requirements and the specific individual nature of each institution and its students. The complexity of these marketing efforts contributes to their cost.
Because a significant portion of our expenses do not vary proportionately with the fluctuations in our revenues, our results in a particular fiscal quarter may not indicate accurately the results we will achieve in a subsequent quarter or for the full fiscal year. 20 Connectivity constraints or technology system breaches and/or disruptions to our computer networks could have a material adverse effect on our ability to attract and retain students and subject us to liability, reputational damage or interrupt the operation of our business.
Because a significant portion of our expenses do not vary proportionately with the fluctuations in our revenues, our results in a particular fiscal quarter may not indicate accurately the results we will achieve in a subsequent quarter or for the full fiscal year.
An epidemic, pandemic or other public health emergency could adversely affect, and, in the case of the COVID-19 pandemic, has adversely affected, global economies, market conditions and business operations across industries worldwide, including our industry.
An epidemic, pandemic or other public health emergency could adversely affect global economies, market conditions and business operations across industries worldwide, including our industry. Any general economic slowdown or recession that disproportionately impacts the countries in which our institutions operate could have a material adverse effect on our business, financial condition, cash flows and results of operations.
As the exchange rate of the U.S. dollar strengthens, our reported international revenues and earnings are reduced because foreign currencies translate into fewer U.S. dollars.
This translation is based on average exchange rates during a reporting period. As the exchange rate of the U.S. dollar strengthens, as occurred in 2024 and as we expect will continue to occur in 2025 with respect to the Mexican peso, our reported international revenues and earnings are reduced because foreign currencies translate into fewer U.S. dollars.
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We use marketing tools such as the Internet, radio, television and print media advertising to promote our institutions and programs. Our representatives also make presentations at upper secondary schools.
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Our success depends, in part, on the effectiveness of our marketing and advertising programs in recruiting new students. In order to maintain and increase our revenues and margins, we must continue to develop our admissions programs and attract new students in a cost-effective manner.
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We translate revenues and other results denominated in foreign currencies into U.S. dollars for our consolidated financial statements. This translation is based on average exchange rates during a reporting period.
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Our reported revenues and earnings may be negatively affected by the strengthening of the U.S. dollar and currency exchange rates. We report revenues, costs and earnings in U.S. dollars, while our institutions generally collect tuition in the local currency.
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While the Mexican peso and the Peruvian nuevo sol strengthened against the U.S. dollar in 2023, in recent years, the U.S. dollar has strengthened against many international currencies, including the Mexican peso and Peruvian nuevo sol.
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Connectivity constraints or technology system breaches and/or disruptions to our computer networks could have a material adverse effect on our ability to attract and retain students and subject us to liability, reputational damage or interrupt the operation of our business. We rely upon our information technology systems and infrastructure to operate our business.
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Hyperinflation in any of the countries in which we operate may have a material adverse effect on our business, financial condition, results of operations and cash flows.
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Due to the sensitive nature of the information contained on our networks, such as students’ grades and financial or other personal information, our networks have been targeted in the past, and may be a target in the future by hackers. A user who circumvents security measures could misappropriate proprietary information or cause interruptions or malfunctions in our operations.
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Also as of December 31, 2023, we had $59 million of U.S. dollar denominated debt obligations outstanding under our Senior Secured Credit Facility, As a result, we rely on our operating subsidiaries to pay dividends or to make distributions or other payments to their parent companies.
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If economic or industry conditions deteriorate or if market valuations decline, including with respect to our common stock, we may be required to impair goodwill and indefinite-lived intangibles in future periods. 21 We are incorporating artificial intelligence technologies into our programs and processes which may present business, compliance and reputational risks.
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In addition, changes in the capital or other legal requirements applicable to commercial lenders may affect the availability or increase the cost of borrowing under our Senior Secured Credit Facility.
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Recent technological advances in AI and machine-learning technology both present opportunities and pose risks to us. We use AI technologies in our offerings and technological platforms, and we are making investments in expanding the use of AI throughout our business.
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Other higher education institutions and online educational programs, however, may incorporate AI into their products more quickly or more successfully than us, which could impair our ability to compete effectively. If we fail to keep pace with rapidly evolving technological developments in AI, our competitive position and business results may suffer.
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While AI-powered applications may help provide more tailored or personalized student experiences, if the content, analyses or recommendations that AI applications assist in producing are, or are perceived to be, deficient, inaccurate or biased, our reputation, competitive position and business may be materially and adversely affected.
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Additionally, use of AI has recently become the source of significant media attention and political debate, particularly within the education industry with respect to issues such as plagiarism, cheating and academic integrity.
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The introduction of these technologies, particularly generative AI, into new or existing offerings may result in new or expanded risks and liabilities, including due to enhanced governmental or regulatory scrutiny, litigation, compliance issues, ethical and academic concerns, confidentiality or security risks, as well as other factors that could adversely affect our business, reputation and financial results.
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In addition, our personnel could, unbeknownst to us, improperly utilize AI and machine learning-technology while carrying out their responsibilities. The use of AI can lead to unintended consequences, including generating content that appears correct but is factually inaccurate, misleading or otherwise flawed, or that results in unintended biases and discriminatory outcomes, which could harm our reputation and business.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeOur management, with input from our Board of Directors, performs an annual enterprise-wide risk management (“ERM”) assessment to identify and manage key existing and emerging risks for our company. Our ERM process assesses the characteristics and circumstances of the evolving business environment at the time and seeks to identify the potential impact, likelihood and velocity of a particular risk.
Biggest changeOur ERM process assesses the characteristics and circumstances of the evolving business environment at the time and seeks to identify the potential impact, likelihood and velocity of a particular risk. Our senior executive management team has the overall responsibility for, and oversight of, our ERM process, and senior executives are assigned to monitor and manage top identified risks.
Management utilizes industry standard tools and procedures to monitor the information security of systems, networks 27 and information assets, regardless of geographic location, and has implemented key policies and procedures, including but not limited to cybersecurity threat detection and analysis, a framework for materiality determination and a reporting-up process to assist in a disclosure of a material event, if required.
Management utilizes industry standard tools and procedures to monitor the information security of systems, networks and information assets, regardless of geographic location, and has implemented key policies and procedures, including but not limited to cybersecurity threat detection and analysis, a framework for materiality determination and a reporting-up process to assist in a disclosure of a material event, if required.
Our CISO oversees our cybersecurity governance programs, monitors and assesses cybersecurity threats, monitor compliance with industry best practices and standards, and leads our ongoing employee cybersecurity training and awareness program. 28
Our CISO oversees our cybersecurity governance programs, monitors and assesses cybersecurity threats, monitor compliance with industry best practices and standards, and leads our ongoing employee cybersecurity training and awareness program.
This integration ensures that cybersecurity considerations are an integral part of our decision-making processes at every level and that cybersecurity risk remains a key component of management activities, including continuously assessing, identifying, and managing material risks from cybersecurity threats.
This integration ensures that cybersecurity considerations are an integral part of our decision-making processes at every level and that cybersecurity risk remains a key component of management activities, including continuously assessing, identifying, and managing material risks from cybersecurity threats. Our cybersecurity program is based on the U.S.
Our CISO (who also serves as our Chief Information Officer) leads our information security organization and has primary responsibility for information security strategy, policy and managing our cybersecurity threat detection and response plan.
Our CISO (who also serves as our Chief Information Officer) leads our information security organization and has primary responsibility for information security strategy, policy, managing our cybersecurity threat detection and response plan, and assessing and managing material risks from cybersecurity threats.
Our Chief Operating Officer (“COO”) and Chief Information Security Officer (“CISO”) play a pivotal role in informing the Audit and Risk Committee on cybersecurity risks.
The Audit and Risk Committee assists the Board of Directors in its responsibilities of overseeing cybersecurity risk. Our Chief Operating Officer (“COO”) and Chief Information Security Officer (“CISO”) play a pivotal role in informing the Audit and Risk Committee on cybersecurity risks.
Governance Our Board of Directors has established oversight mechanisms to ensure effective governance in managing risks associated with cybersecurity threats because we recognize the significance of these threats to our operational integrity and stakeholder confidence. The Audit and Risk Committee assists the Board of Directors in its responsibilities of overseeing cybersecurity risk.
For more information on our cybersecurity related risks, see “Item 1A—Risk Factors—Risks Relating to Our Business” in this Annual Report on Form 10-K. 28 Governance Our Board of Directors has established oversight mechanisms to ensure effective governance in managing risks associated with cybersecurity threats because we recognize the significance of these threats to our operational integrity and stakeholder confidence.
The sophistication of cyber threats continues to increase, and the preventative actions we take to reduce the risk of cyber incidents and protect our systems and information may be insufficient. For more information on our cybersecurity related risks, see “Item 1A—Risk Factors—Risks Relating to Our Business” in this Annual Report on Form 10-K.
The sophistication of cyber threats continues to increase, and the preventative actions we take to reduce the risk of cyber incidents and protect our systems and information may be insufficient.
Our senior executive management team has the overall responsibility for, and oversight of, our ERM process, and senior executives are assigned to monitor and manage top identified risks. Cybersecurity is among the top risks identified for oversight as a result of our last annual ERM assessment.
Cybersecurity is among the top risks identified for oversight as a result of our last annual ERM assessment. Systems and process monitoring are essential components of our cybersecurity risk management and information security programs.
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Systems and process monitoring are essential components of our cybersecurity risk management and information security programs.
Added
National Institute for Standards and Technology standards and other applicable country-specific and industry frameworks. Our management, with input from our Board of Directors, performs an annual enterprise-wide risk management (“ERM”) assessment to identify and manage key existing and emerging risks for our company.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeThe following table summarizes the Company's properties by segment as of December 31, 2023: Segment Square feet leased space Square feet owned space Total square feet Mexico 25,105,361 8,498,457 33,603,818 Peru 717,490 5,341,244 6,058,734 Corporate (including headquarters) 6,589 — 6,589 Other — 109,104 109,104 Total 25,829,440 13,948,805 39,778,245 Our Mexico and Peru segments lease or own various sites that may include a local headquarters and all or some of the facilities of a campus or location.
Biggest changeThe following table summarizes the Company's properties by segment as of December 31, 2024: Segment Square feet leased space Square feet owned space Total square feet Mexico 23,612,126 7,740,988 31,353,114 Peru 696,178 5,544,452 6,240,630 Corporate (including headquarters) 5,054 — 5,054 Total 24,313,358 13,285,440 37,598,798 Our Mexico and Peru segments lease or own various sites that may include a local headquarters and all or some of the facilities of a campus or location.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeThe Company will continue to work with the STA on this matter and believes that it is in compliance with Spanish tax law. Item 4. Mine Safety Disclosures Not applicable. 29 Part II
Biggest changeIn December 2024, after completion of the audit by the STA, the Company paid a final assessment of $0.4 million with respect to this matter, resulting in the closing of the audit. 29 Item 4. Mine Safety Disclosures Not applicable. 30 Part II
In May 2023, we were notified by the STA that an audit of our former Spanish holding company was being initiated in relation to corporate income tax for the period from January 2018 to May 2020 and withholding on account of non-resident income tax for the period from May 2019 to May 2020.
In May 2023, we were notified by t he STA that an audit of our former Spanish holding company was being initiated in relation to corporate income tax for the period from January 2018 to May 2020 and withholding on account of non-resident income tax for the period from May 2019 to May 2020.
Item 3. Legal Proceedings Our former Spanish holding company, Laureate Netherlands Holding B.V. (f/k/a Iniciativas Culturales de España, S.L.), has been subject to ongoing tax audits by the Spanish Taxing Authority (“STA”), resulting in the issuance of final assessments based on the STA’s rejection of the tax deductibility of financial expenses related to certain intercompany acquisitions.
Item 3. Legal Proceedings Our former Spanish holding company, Laureate Netherlands Holding B.V. (f/k/a Iniciativas Culturales de España, S.L.), was subject to various tax audits by the Spanish Taxing Authority (“STA”), resulting in the issuance of final assessments based on the STA’s rejection of the tax deductibility of financial expenses related to certain intercompany acquisitions.
As a result, the Company has no further recourse with respect to the related final assessments for tax years 2006 to 2010. This ruling does not have a material effect on the Company’s consolidated financial statements.
As a result, the Company has no further recourse with respect to the related final assessments for tax years 2006 to 2010. The outcome of any remaining years under audit are not expected to have a material effect on the Company’s consolidated financial statements and thus will not be reported upon by the Company in subsequent periodic reports.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeMarket for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information Our common stock is traded on the Nasdaq under the symbol “LAUR.” Effective October 29, 2021, each share of the Company's Class A common stock and each share of the Company's Class B common stock automatically converted into one share of common stock of the Company.
Biggest changeItem 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information Our common stock is traded on the Nasdaq under the symbol “LAUR.” Holders of Record There were 56 holders of record of our common stock as of January 31, 2025.
Accordingly, the performance graph below adjusts for these distributions. 31 The information contained in the performance graphs shall not be deemed “soliciting material” or to be “filed” with the SEC, nor shall such information be deemed incorporated by reference into any future filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except to the extent that we specifically incorporate it by reference into such filing.
Accordingly, the performance graph below adjusts for these distributions. 32 The information contained in the performance graphs shall not be deemed “soliciting material” or to be “filed” with the SEC, nor shall such information be deemed incorporated by reference into any future filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except to the extent that we specifically incorporate it by reference into such filing.
The performance graph assumes $100 investment on December 31, 2018 in either our common stock, the companies in our industry peer group, or the Nasdaq Composite Index. Data for the Nasdaq Composite Index and our peer group assume reinvestment of dividends. The peer group included in the performance graph above consists of Strategic Education, Inc. (STRA), Adtalem Global Education, Inc.
The performance graph assumes $100 investment on December 31, 2019 in either our common stock, the companies in our industry peer group, or the Nasdaq Composite Index. Data for the Nasdaq Composite Index and our peer group assume reinvestment of dividends. The peer group included in the performance graph above consists of Strategic Education, Inc. (STRA), Adtalem Global Education, Inc.
Subject to the foregoing, the payment of cash dividends in the future, if any, will be at the discretion of our Board of Directors and will depend upon such factors as earnings levels, capital requirements, our overall financial condition and any other factors deemed relevant by our Board of Directors. 30 Stock Performance Graph The following graph compares the cumulative total return of our common stock, an industry peer group index, and the Nasdaq Composite Index from December 31, 2018 through December 31, 2023.
Subject to the foregoing, the payment of cash dividends in the future, if any, will be at the discretion of our Board of Directors and will depend upon such factors as earnings levels, capital requirements, our overall financial condition and any other factors deemed relevant by our Board of Directors. 31 Stock Performance Graph The following graph compares the cumulative total return of our common stock, an industry peer group index, and the Nasdaq Composite Index from December 31, 2019 through December 31, 2024.
Removed
Following the conversion, the Company has only one class of common stock outstanding. Holders of Record There were 58 holders of record of our common stock as of January 31, 2024.
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Issuer Purchases of Equity Securities The following table provides a summary of the Company’s purchases of its common stock during the fourth quarter of the fiscal year ended December 31, 2024: Period Total number of shares purchased (in thousands) Average price paid per share Total number of shares purchased as part of publicly announced plans or programs (in thousands) Approximate dollar value of shares yet to be purchased under the plans or programs (in thousands) (1) 10/1/24 - 10/31/24 — $ — — $ 100,000 11/1/24 - 11/30/24 — $ — — $ 100,000 12/1/24 - 12/31/24 113 $ 17.99 113 $ 97,976 Total 113 $ 17.99 113 $ 97,976 (1) On September 13, 2024, the Company announced that its Board of Directors had approved a stock repurchase program to acquire up to $100 million of the Company’s common stock.
Removed
Recent Sales of Unregistered Securities None. Issuer Purchases of Equity Securities None. Item 6. [Reserved]
Added
The Company’s repurchases may be made from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations promulgated under the Exchange Act.
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Repurchases may also be effected pursuant to a trading plan adopted in accordance with Rule 10b5-1 of the Exchange Act. The stock repurchase program does not have a fixed expiration date.
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The Company’s Board of Directors will review the share repurchase program periodically and may authorize adjustment of its terms and size or suspend or discontinue the program at any time. Item 6. [Reserved]

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeIn connection with the lease termination agreement, we recorded a loss of approximately $25.8 million, which is included in Excellence-in-Process (EiP) expenses within Operating (loss) income in the table below. 37 Comparison of Consolidated Results for the Years Ended December 31, 2023, 2022 and 2021 % Change Better/(Worse) (in millions) 2023 2022 2021 2023 vs. 2022 2022 vs. 2021 Revenues $ 1,484.3 $ 1,242.3 $ 1,086.7 19 % 14 % Direct costs 1,089.8 907.4 814.5 (20) % (11) % General and administrative expenses 52.6 64.8 204.4 19 % 68 % Loss on impairment of assets 3.1 0.1 72.5 nm 100 % Operating income (loss) 338.8 270.0 (4.6) 25 % nm Interest expense, net of interest income (11.9) (8.9) (41.9) (34) % 79 % Other non-operating expense (72.5) (15.3) (91.0) nm 83 % Income (loss) from continuing operations before income taxes and equity in net income of affiliates 254.5 245.9 (137.5) 3 % nm Income tax expense (137.6) (185.4) (145.6) 26 % (27) % Equity in net income of affiliates, net of tax 0.2 0.3 — (33) % nm Income (loss) from continuing operations 117.0 60.7 (283.1) 93 % 121 % (Loss) income from discontinued operations, net of tax (9.8) 8.3 486.9 nm (98) % Net income 107.3 69.0 203.8 56 % (66) % Net loss (income) attributable to noncontrolling interests 0.3 0.6 (11.3) 50 % (105) % Net income attributable to Laureate Education, Inc. $ 107.6 $ 69.6 $ 192.4 55 % (64) % nm - percentage changes not meaningful For further details on certain discrete items discussed below, see “Discussion of Significant Items Affecting the Consolidated Results.” Comparison of Consolidated Results for the Year Ended December 31, 2023 to the Year Ended December 31, 2022 Revenues increased by $242.0 million to $1,484.3 million for 2023 from $1,242.3 million for 2022.
Biggest changeSummary Comparison of Consolidated Results Comparison of Consolidated Results for the Years Ended December 31, 2024, 2023 and 2022 % Change Better/(Worse) (in millions) 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 Revenues $ 1,566.6 $ 1,484.3 $ 1,242.3 6 % 19 % Direct costs 1,146.9 1,089.8 907.4 (5) % (20) % General and administrative expenses 45.8 52.6 64.8 13 % 19 % Loss on impairment of assets — 3.1 0.1 100 % nm Operating income 374.0 338.8 270.0 10 % 25 % Interest expense, net of interest income (10.0) (11.9) (8.9) 16 % (34) % Other non-operating income (expense) 50.5 (72.5) (15.3) 170 % nm Income from continuing operations before income taxes and equity in net income of affiliates 414.5 254.5 245.9 63 % 3 % Income tax expense (119.0) (137.6) (185.4) 14 % 26 % Equity in net income of affiliates, net of tax 0.2 0.2 0.3 — % (33) % Income from continuing operations 295.7 117.0 60.7 153 % 93 % Income (loss) from discontinued operations, net of tax 0.7 (9.8) 8.3 107 % nm Net income 296.4 107.3 69.0 176 % 56 % Net loss attributable to noncontrolling interests 0.1 0.3 0.6 67 % 50 % Net income attributable to Laureate Education, Inc. $ 296.5 $ 107.6 $ 69.6 176 % 55 % nm - percentage changes not meaningful 37 Comparison of Consolidated Results for the Year Ended December 31, 2024 to the Year Ended December 31, 2023 Revenues increased by $82.3 million to $1,566.6 million for 2024 from $1,484.3 million for 2023.
Additionally, cash paid for interest increased by $3.5 million, from $16.8 million in 2022 to $20.3 million in 2023, attributable to higher average debt balances in 2023. Investing activities Cash from investing activities decreased by $82.2 million to a cash outflow of $(51.9) million for 2023 from a cash inflow of $30.3 million for 2022.
Additionally, cash paid for interest increased by $3.5 million, from $16.8 million in 2022 to $20.3 million in 2023, attributable to higher average debt balances in 2023. Investing activities Cash from investing activities decreased by $82.2 million to a cash outflow of $(51.9) million for 2023 from a cash inflow of $30.3 million in 2022.
The Company’s proposed repurchases may be made from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
The Company’s repurchases may be made from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
This discussion contains forward-looking statements and involves numerous risks and uncertainties, including, but not limited to, those described in the “Item 1A. Risk Factors” section of this Form 10-K. Actual results may differ materially from those contained in any forward-looking statements. See “Forward-Looking Statements” on page 2 of this Form 10-K.
This 33 discussion contains forward-looking statements and involves numerous risks and uncertainties, including, but not limited to, those described in the “Item 1A. Risk Factors” section of this Form 10-K. Actual results may differ materially from those contained in any forward-looking statements. See “Forward-Looking Statements” on page 2 of this Form 10-K.
This increase in operating income was a result of higher operating income at our Mexico and Peru segments, combined with lower operating costs at Corporate, as compared to 2022. Interest expense, net of interest income increased by $3.0 million to $11.9 million for 2023 from $8.9 million for 2022.
This increase in operating income was a result of higher operating income at our Mexico and Peru segments, combined with lower operating costs at Corporate, as compared to 2022. 38 Interest expense, net of interest income increased by $3.0 million to $11.9 million for 2023 from $8.9 million for 2022.
Repurchases may be effected pursuant to a trading plan adopted in accordance with Rule 10b5-1 of the Exchange Act. The Company’s board will review the share repurchase program periodically and may authorize adjustment of its terms and size or suspend or discontinue the program.
Repurchases may be effected pursuant to a trading plan adopted in accordance with Rule 10b5-1 of the Exchange Act. The Company’s Board of Directors will review the share repurchase program periodically and may authorize adjustment of its terms and size or suspend or discontinue the program.
The Company has the option of first performing a qualitative impairment test to determine if a quantitative impairment test is necessary. Based on the qualitative assessment, if we determine that it is more likely than not that the fair value of the indefinite-lived intangible is greater than its carrying amount, the quantitative impairment test is not required.
The Company has the option of first performing a qualitative 49 impairment test to determine if a quantitative impairment test is necessary. Based on the qualitative assessment, if we determine that it is more likely than not that the fair value of the indefinite-lived intangible is greater than its carrying amount, the quantitative impairment test is not required.
Our MD&A is presented in the following sections: • Overview; • Results of Operations; • Liquidity and Capital Resources; • Critical Accounting Policies and Estimates; and 32 • Recently Issued Accounting Standards. Overview Our Business We operate a portfolio of degree-granting higher education institutions in Mexico and Peru.
Our MD&A is presented in the following sections: • Overview; • Results of Operations; • Liquidity and Capital Resources; • Critical Accounting Policies and Estimates; and • Recently Issued Accounting Standards. Overview Our Business We operate a portfolio of degree-granting higher education institutions in Mexico and Peru.
These increases in direct costs were partially offset by a decrease in costs of $10.1 million in 2023 related to other Corporate expenses. Operating income (loss) increased by $68.8 million to $338.8 million for 2023 from $270.0 million for 2022.
These increases in direct costs were partially offset by a decrease in costs of $10.1 million in 2023 related to other Corporate expenses. Operating income increased by $68.8 million to $338.8 million for 2023 from $270.0 million for 2022.
Revenues increased by $77.5 million, a 12% increase from 2022. • Organic enrollment increased during 2023 by 6%, increasing revenues by $27.1 million. • Revenues from our Peru segment represented 47% of our consolidated total revenues for 2023 compared to 50% for 2022.
Revenues increased by $77.5 million, a 12% increase from 2022. • Organic enrollment increased during 2023 by 6%, increasing revenues by $27.1 million. 43 • Revenues from our Peru segment represented 47% of our consolidated total revenues for 2023 compared to 50% for 2022.
See “Item 1A—Risk Factors—Risks Relating to Our Business—Our institutions are subject to uncertain and varying laws and regulations, and any changes to these laws or regulations or their application to us may materially adversely affect our business, financial condition and results of operations,” and “Item 1—Business—Industry Regulation,” for a detailed discussion of our different regulatory environments and Note 17, Legal and Regulatory Matters, in our consolidated financial statements included elsewhere in this Form 10-K.
See “Item 1A—Risk Factors—Risks Relating to Our Business—Our institutions are subject to uncertain and varying laws and regulations, and any changes to these laws or regulations or their application to us may materially adversely affect our business, financial condition and results of operations,” and “Item 1—Business—Industry Regulation,” for a detailed discussion of our different regulatory environments and Note 16, Legal and Regulatory Matters, in our consolidated financial statements included elsewhere in this Form 10-K.
If certain conditions are satisfied, the Amended Credit Agreement also provides for incremental revolving and term loan facilities, at the request of the Company, not to exceed (i) the greater of (a) $172.5 million and (b) 50% of the Company's Consolidated EBITDA, plus (ii) additional amounts so long as both immediately before and after giving effect to such incremental facilities the Company’s Consolidated Senior Secured Debt to Consolidated EBITDA ratio, as defined in the Amended Credit Agreement, on a pro forma basis, does not exceed 2.25x , plus, (iii) the aggregate amounts of any voluntary repayments of term loans, if any, and aggregate amount of voluntary repayments of revolving credit facilities that are accompanied by a corresponding termination or reduction of revolving credit commitments.
If certain conditions are satisfied, the Amended Credit Agreement also provides for incremental revolving and term loan facilities, at the request of the Company and subject to lender approval, not to exceed (i) the greater of (a) $172.5 million and (b) 50% of the Company's Consolidated EBITDA, plus (ii) additional amounts so long as both immediately before and after giving effect to such incremental facilities the Company’s Consolidated Senior Secured Debt to Consolidated EBITDA ratio, as defined in the Amended Credit Agreement, on a pro forma basis, does not exceed 2.25x , plus, (iii) the aggregate amounts of any voluntary repayments of term loans, if any, and aggregate amount of voluntary repayments of revolving credit facilities that are accompanied by a corresponding termination or reduction of revolving credit commitments.
Non-GAAP Financial Measure We define Adjusted EBITDA as net income, before loss (income) from discontinued operations, net of tax, equity in net (income) loss of affiliates, net of tax, and income tax expense (benefit) adjusted for (gain) loss on disposal of subsidiaries, net, foreign currency exchange (gain) loss, net, other expense (income), net, interest expense, interest income, loss on derivatives and loss on debt extinguishment, plus depreciation and amortization, share-based compensation expense, loss on impairment of assets and expenses related to our Excellence-in-Process (EiP) initiative.
Non-GAAP Financial Measure We define Adjusted EBITDA as net income (loss), before (income) loss from discontinued operations, net of tax, equity in net (income) loss of affiliates, net of tax, income tax expense (benefit), (gain) loss on disposal of subsidiaries, net, foreign currency exchange (gain) loss, net, other (income) expense, net, interest expense, interest income, and loss on debt extinguishment, plus depreciation and amortization, share-based compensation expense, loss on impairment of assets and expenses related to our Excellence-in-Process (EiP) initiative.
Students in our Mexican institutions typically finance their own education. • In Peru, private universities are increasingly providing the capacity to meet growing demand and constitute approximately 74% of the total higher-education market. Laureate owns three institutions in Peru, with a footprint of 19 campuses. Corporate is a non-operating business unit whose purpose is to support operations.
Students in our Mexican institutions typically finance their own education. • In Peru, private universities are increasingly providing the capacity to meet growing demand and constitute approximately 76% of the total higher-education market. Laureate owns three institutions in Peru, with a footprint of 19 campuses. Corporate is a non-operating business unit whose purpose is to support operations.
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: • Private education providers in Mexico constitute approximately 37% of the total higher-education market.
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: • Private education providers in Mexico constitute approximately 39% of the total higher-education market.
Peru Financial Overview 44 Comparison of Peru Results for the Year Ended December 31, 2023 to the Year Ended December 31, 2022 (in millions) Revenues Direct Costs Adjusted EBITDA December 31, 2022 $ 624.2 $ 357.5 $ 266.7 Organic enrollment (1) 27.1 Product mix, pricing and timing (1) 33.1 Organic constant currency 60.2 47.3 12.9 Foreign exchange 17.3 10.0 7.3 December 31, 2023 $ 701.7 $ 414.8 $ 286.9 (1) Organic enrollment and Product mix, pricing and timing are not separable for the calculation of direct costs and therefore are combined and defined as Organic constant currency for the calculation of Adjusted EBITDA.
Comparison of Peru Results for the Year Ended December 31, 2023 to the Year Ended December 31, 2022 (in millions) Revenues Direct Costs Adjusted EBITDA December 31, 2022 $ 624.2 $ 357.5 $ 266.7 Organic enrollment (1) 27.1 Product mix, pricing and timing (1) 33.1 Organic constant currency 60.2 47.3 12.9 Foreign exchange 17.3 10.0 7.3 December 31, 2023 $ 701.7 $ 414.8 $ 286.9 (1) Organic enrollment and Product mix, pricing and timing are not separable for the calculation of direct costs and therefore are combined and defined as Organic constant currency for the calculation of Adjusted EBITDA.
See “Item 1A—Risk Factors—Risks Relating to Our Business—We experience seasonal fluctuations in our results of operations.” 35 Income Tax Expense Our consolidated income tax provision is derived based on the combined impact of federal, state and foreign income taxes.
See “Item 1A—Risk Factors—Risks Relating to Our Business—We experience seasonal fluctuations in our results of operations.” 36 Income Tax Expense Our consolidated income tax provision is derived based on the combined impact of federal, state and foreign income taxes.
Our institutions in Peru are generally out of 34 session in January, February and July, while institutions in Mexico are generally out of session in May through July. Revenues are recognized when classes are in session. Principal Components of Income Statement Revenues The majority of our revenue is derived from tuition and educational services.
Our institutions in Peru are generally out of 35 session in January, February and July, while institutions in Mexico are generally out of session in May through July. Revenues are recognized when classes are in session. Principal Components of Income Statement Revenues The majority of our revenue is derived from tuition and educational services.
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.
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 in-country networks.
The Senior Secured Credit Facility, pursuant to the Third Amended and Restated Credit Agreement, dated as of October 7, 2019 (the “Credit Agreement”, as amended by the First Amendment, dated as of July 20, 2020, the Second Amendment, dated as of December 23, 2022, and, as further amended by the Third Amendment, dated as of September 18, 2023, the “ Amended Credit Agreement ”), provides for borrowings of $145.0 million of revolving credit loans maturing October 2024 (the “ Series 2024 Tranche ” ) and $155.0 million of revolving credit loans maturing in September 2028 (the "Series 2028 Tranche") for a $300.0 million aggregate revolving credit facility (the “ Revolving Credit Facility ”) .
The Senior Secured Credit Facility, pursuant to the Third Amended and Restated Credit Agreement, dated as of October 7, 2019 (the “Credit Agreement”, as amended by the First Amendment, dated as of July 20, 2020, the Second Amendment, dated as of December 23, 2022, and, as further amended by the Third Amendment, dated as of September 18, 2023, the “ Amended Credit Agreement ”), provided for borrowings of $145.0 million of revolving credit loans, which matured on October 7, 2024 (the “ Series 2024 Tranche ” ) and $155.0 million of revolving credit loans maturing in September 2028 (the "Series 2028 Tranche") for a $300.0 million aggregate revolving credit facility (the “ Revolving Credit Facility ”) .
Collectively, we have approximately 448,900 students enrolled at five institutions in these two countries. We believe that the higher education markets in Mexico and Peru present an attractive long-term opportunity, primarily because of the large and growing imbalance between the supply and demand for affordable, quality higher education in those markets.
Collectively, we have approximately 472,000 students enrolled at five institutions in these two countries. We believe that the higher education markets in Mexico and Peru present an attractive long-term opportunity, primarily because of the large and growing imbalance between the supply and demand for affordable, quality higher education in those markets.
Other items accounted for the remaining difference of $0.7 million . Critical Accounting Policies and Estimates The preparation of the consolidated financial statements in conformity with GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the related disclosure of contingent assets and liabilities.
Other items accounted for the remaining difference of $1.2 million. Critical Accounting Policies and Estimates The preparation of the consolidated financial statements in conformity with GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the related disclosure of contingent assets and liabilities.
We were in compliance with these covenants as of December 31, 2023. 47 Leases We conduct a significant portion of our operations from leased facilities, including many of our higher education facilities and other office locations.
We were in compliance with these covenants as of December 31, 2024. Leases We conduct a significant portion of our operations from leased facilities, including many of our higher education facilities and other office locations.
Senior Secured Credit Facility As of December 31, 2023 and 2022, there was a $59.0 million and $100.0 million balance outstanding under our Senior Secured Credit Facility, respectively. Other Debt Other debt includes lines of credit and short-term borrowing arrangements of subsidiaries and notes payable, the significant components of which are described below.
As of December 31, 2023, there was a $59.0 million balance outstanding under our Senior Secured Credit Facility. 45 Other Debt Other debt includes lines of credit and short-term borrowing arrangements of subsidiaries and notes payable, the significant components of which are described below.
As discussed in Note 9, Leases, in our consolidated financial statements included elsewhere in this Form 10-K, we have significant operating lease liabilities recorded related to our leased facilities, which will require future cash payments. As of December 31, 2023 and 2022, the present value of operating lease liabilities was $417.6 million and $415.9 million, respectively.
As discussed in Note 9, Leases, in our consolidated financial statements included elsewhere in this Form 10-K, we have significant operating lease liabilities recorded related to our leased facilities, which will require future cash payments. As of December 31, 2024 and 2023, the present value of operating lease liabilities was $327.1 million and $417.6 million, respectively.
If our educational institutions within one country were unable to maintain sufficient liquidity, we would consider using internal cash resources or reasonable short-term working capital facilities to accommodate any short- to medium-term shortfalls. As of December 31, 2023, our secondary source of liquidity was cash and cash equivalents of $89.4 million. Our cash accounts are maintained with high-quality financial institutions.
If our educational institutions within one country were unable to maintain sufficient liquidity, we would consider using internal cash resources or reasonable short-term working capital facilities to accommodate any short- to medium-term shortfalls. As of December 31, 2024, our cash and cash equivalents were $91.4 million. Our cash accounts are maintained with high-quality financial institutions.
For purposes of the following comparison of results discussion, “ segment direct costs ” represent direct costs incurred by the segment as they are included in Adjusted EBITDA, such that depreciation and amortization expense, loss on impairment of assets, share-based compensation expense and our EiP implementation expenses have been excluded.
For purposes of the following comparison of results discussion, “ segment direct costs ” represent direct costs incurred by the segment as they are included in Adjusted EBITDA, such that depreciation and amortization expense, loss on impairment of assets, share-based compensation expense and EiP implementation expenses have been excluded. Organic enrollment is based on average total enrollment for the period.
Liquidity Restrictions Our liquidity is affected by restricted cash balances, which totaled $7.5 million and $8.6 million as of December 31, 2023 and 2022, respectively. Restricted cash consists of cash equivalents held as assets for a supplemental employment retention agreement for a former executive.
Liquidity Restrictions Our liquidity is affected by restricted cash balances, which total ed $6.5 million and $7.5 million as of December 31, 2024 and 2023, respectively. Restricted cash consists of cash equivalents held as assets for a supplemental employment retention agreement for a former executive.
Based on the operating leases outstanding at December 31, 2023, $95.0 million of minimum lease payments will be required during 2024. In addition, we had finance lease obligations and sale-leaseback financings of $57.6 million and $48.2 million as of December 31, 2023 and 2022, respectively. Capital Expenditures Capital expenditures primarily consist of purchases of property and equipment.
Based on the operating leases outstanding at December 31, 2024, $86.5 million of minimum lease payments will be required during 2025. In addition, we had finance lease obligations and sale-leaseback financings of $48.4 million and $57.6 million as of December 31, 2024 and 2023, respectively. Capital Expenditures Capital expenditures primarily consist of purchases of property and equipment.
If our expectations change based on future developments, such that some or all of the undistributed earnings of our foreign subsidiaries may be remitted to the United States in the foreseeable future, we will be required to recognize deferred tax expense and liabilities on any amounts that we are unable to repatriate in a tax-free manner. 52 Revenue Recognition Our revenues primarily consist of tuition and educational service revenues.
If our expectations change based on future developments, such that some or all of the undistributed earnings of our foreign subsidiaries may be remitted to the United States in the foreseeable future, we will be required to recognize deferred tax expense and liabilities on any amounts that we are unable to repatriate in a tax-free manner.
The increase was attributable to: (1) the effect of a net change in foreign currency exchange rates, which increased revenues by $108.9 million, mainly driven by the strengthening of the Mexican peso against the USD compared to 2022; (2) higher average total organic enrollment at our institutions, which increased revenues by $79.3 million compared to 2022; and (3) the effect of changes in tuition rates and enrollments in programs at varying price points (“product mix”), pricing and timing, which increased revenues by $57.9 million compared to 2022.
The increase was attributable to: (1) the effect of a net change in foreign currency exchange rates, which increased revenues by $108.9 million, mainly driven by the strengthening of the Mexican peso against the USD compared to 2022; (2) higher average total organic enrollment at our institutions, which increased revenues by $79.3 million compared to 2022; and (3) the effect of changes in product mix, pricing and timing, which increased revenues by $57.9 million compared to 2022.
In addition to the Revolving Credit Facility, our subsidiaries had approximately $68.8 million of available borrowing capacity under lines of credit and short-term borrowing arrangements as of December 31, 2023.
In addition to the Revolving Credit Facility, our subsidiaries had approximately $80.3 million of available borrowing capacity under lines of credit and short-term borrowing arrangements as of December 31, 2024.
Indefinite Reinvestment of Foreign Earnings We earn a significant portion of our income from subsidiaries located in countries outside the United States. As of December 31, 2023, $82.7 million of our total $89.4 million of cash and cash equivalents were held by foreign subsidiaries.
Indefinite Reinvestment of Foreign Earnings We earn a significant portion of our income from subsidiaries located in countries outside the United States. As of December 31, 2024, $80.1 million of our total $91.4 million of cash and cash equivalents were held by foreign subsidiaries.
We also generate other revenues from student fees and other education-related activities. These other revenues are less material to our overall financial results and have a tendency to trend with tuition revenues.
Revenue Recognition Our revenues primarily consist of tuition and educational service revenues. We also generate other revenues from student fees and other education-related activities. These other revenues are less material to our overall financial results and have a tendency to trend with tuition revenues.
Liquidity Requirements Our short-term liquidity requirements include: funding for debt service (including finance leases); operating lease obligations; payments of deferred compensation; working capital; operating expenses; capital expenditures; stock repurchases; an indemnification claim; and business development activities.
Liquidity Requirements Our short-term liquidity requirements include: funding for debt service (including finance leases); operating lease obligations; payments of deferred compensation; working capital; operating expenses; capital expenditures; stock repurchases; and business development activities. Long-term liquidity requirements include: payments on long-term debt (including finance leases); operating lease obligations; payments of deferred compensation; stock repurchases; and payments of other third-party obligations.
As of December 31, 2022, $77.3 million of our total $85.2 million of cash and cash equivalents were held by foreign subsidiaries. 46 As part of our business strategies, we have determined that the undistributed historical earnings of our foreign operations for which we have not already recorded taxes will be deemed indefinitely reinvested outside of the United States.
As of December 31, 2023, $82.7 million of our total $89.4 million of cash and cash equivalents were held by foreign subsidiaries. As part of our business strategies, we have determined that the undistributed historical earnings of our foreign operations for which we have not already recorded taxes will be deemed indefinitely reinvested outside of the United States.
Accordingly, the amounts in the consolidated statements of cash flows do not agree with the changes of the operating assets and liabilities as presented in the consolidated balance sheets.
Accordingly, the amounts in the consolidated statements of cash flows do not agree with the changes of the operating assets and liabilities as presented in the consolidated balance sheets. The effects of exchange rate changes on cash are presented separately in the consolidated statements of cash flows.
The effects of exchange rate changes on cash are presented separately in the consolidated statements of cash flows. 48 The following table summarizes our cash flows from operating, investing, and financing activities for each of the past three fiscal years: (in millions) 2023 2022 2021 Cash provided by (used in): Operating activities $ 250.8 $ 178.2 $ (156.1) Investing activities (51.9) 30.3 2,044.2 Financing activities (201.9) (461.6) (2,683.2) Effects of exchange rate changes on cash 6.6 1.2 (14.7) Change in cash included in current assets held for sale (0.5) — 288.1 Net change in cash and cash equivalents and restricted cash $ 3.1 $ (251.8) $ (521.7) Comparison of Cash Flows for the Year Ended December 31, 2023 to the Year Ended December 31, 2022 Operating activities Cash provided by operating activities increased by $72.6 million to $250.8 million for 2023, compared to $178.2 million for 2022.
The following table summarizes our cash flows from operating, investing, and financing activities for each of the past three fiscal years: (in millions) 2024 2023 2022 Cash provided by (used in): Operating activities $ 232.7 $ 250.8 $ 178.2 Investing activities (57.5) (51.9) 30.3 Financing activities (166.9) (201.9) (461.6) Effects of exchange rate changes on cash (7.5) 6.6 1.2 Change in cash included in current assets held for sale 0.3 (0.5) — Net change in cash and cash equivalents and restricted cash $ 1.0 $ 3.1 $ (251.8) Comparison of Cash Flows for the Year Ended December 31, 2024 to the Year Ended December 31, 2023 Operating activities Cash provided by operating activities decreased by $18.1 million to $232.7 million for 2024, compared to $250.8 million for 2023.
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. 40 The following table presents Adjusted EBITDA and reconciles Net income to Adjusted EBITDA for the years ended December 31, 2023 , 2022 and 2021: % Change Better/(Worse) (in millions) 2023 2022 2021 2023 vs. 2022 2022 vs. 2021 Net income $ 107.3 $ 69.0 $ 203.8 56 % (66) % Plus: Loss (income) from discontinued operations, net of tax 9.8 (8.3) (486.9) nm (98) % Income (loss) from continuing operations 117.0 60.7 (283.1) 93 % 121 % Plus: Equity in net income of affiliates, net of tax (0.2) (0.3) — (33) % nm Income tax expense 137.6 185.4 145.6 26 % (27) % Income (loss) from continuing operations before income taxes and equity in net income of affiliates 254.5 245.9 (137.5) 3 % nm Plus: (Gain) loss on disposal of subsidiaries, net (3.6) (1.4) 0.6 157 % nm Foreign currency exchange loss (gain), net 75.7 17.4 (13.8) nm nm Other expense (income), net 0.3 (0.8) 1.7 (138) % 147 % Interest expense 21.0 16.4 46.3 (28) % 65 % Interest income (9.1) (7.6) (4.4) 20 % 73 % Loss on derivatives — — 24.5 nm 100 % Loss on debt extinguishment — — 77.9 nm 100 % Operating income (loss) 338.8 270.0 (4.6) 25 % nm Plus: Depreciation and amortization 69.6 59.1 101.2 (18) % 42 % EBITDA 408.4 329.1 96.6 24 % nm Plus: Share-based compensation expense (a) 7.1 8.8 8.9 19 % 1 % Loss on impairment of assets (b) 3.1 0.1 72.5 nm 100 % EiP implementation expenses (c) — 0.8 75.4 100 % 99 % Adjusted EBITDA $ 418.6 $ 338.9 $ 253.4 24 % 34 % nm - percentage changes not meaningful (a) Represents non-cash, share-based compensation expense pursuant to the provisions of ASC 718, “Stock Compensation.” (b) Represents non-cash charges related to impairments of long-lived assets.
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. 39 The following table presents Adjusted EBITDA and reconciles Net income to Adjusted EBITDA for the years ended December 31, 2024 , 2023 and 2022: % Change Better/(Worse) (in millions) 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 Net income $ 296.4 $ 107.3 $ 69.0 176 % 56 % Plus: (Income) loss from discontinued operations, net of tax (0.7) 9.8 (8.3) (107) % nm Income from continuing operations 295.7 117.0 60.7 153 % 93 % Plus: Equity in net income of affiliates, net of tax (0.2) (0.2) (0.3) — % (33) % Income tax expense 119.0 137.6 185.4 14 % 26 % Income from continuing operations before income taxes and equity in net income of affiliates 414.5 254.5 245.9 63 % 3 % Plus: Loss (gain) on disposal of subsidiaries, net 1.3 (3.6) (1.4) (136) % 157 % Foreign currency exchange (gain) loss, net (50.7) 75.7 17.4 167 % nm Other (income) expense, net (1.2) 0.3 (0.8) nm (138) % Interest expense 18.1 21.0 16.4 14 % (28) % Interest income (8.1) (9.1) (7.6) (11) % 20 % Operating income 374.0 338.8 270.0 10 % 25 % Plus: Depreciation and amortization 68.2 69.6 59.1 2 % (18) % EBITDA 442.2 408.4 329.1 8 % 24 % Plus: Share-based compensation expense (a) 7.8 7.1 8.8 (10) % 19 % Loss on impairment of assets (b) — 3.1 0.1 100 % nm EiP implementation expenses (c) — — 0.8 nm 100 % Adjusted EBITDA $ 450.1 $ 418.6 $ 338.9 8 % 24 % nm - percentage changes not meaningful (a) Represents non-cash, share-based compensation expense pursuant to the provisions of ASC 718, “Stock Compensation.” (b) Represents non-cash charges related to impairments of long-lived assets.
Operating results for Corporate for the years ended December 31, 2023, 2022 and 2021 were as follows: % Change Better/(Worse) (in millions) 2023 2022 2021 2023 vs. 2022 2022 vs. 2021 Revenues $ — $ 4.1 $ 9.2 (100) % (55) % Expenses 45.2 55.3 97.3 18 % 43 % Adjusted EBITDA $ (45.2) $ (51.2) $ (88.1) 12 % 42 % 45 Comparison of Corporate Results for the Year Ended December 31, 2023 to the Year Ended December 31, 2022 Adjusted EBITDA increased by $6.0 million, a 12% increase from 2022, mainly driven by a decrease in labor expenses and other professional fees, as well as a reduction in IT-related costs.
Operating results for Corporate for the years ended December 31, 2024, 2023 and 2022 were as follows: % Change Better/(Worse) (in millions) 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 Revenues $ 0.2 $ — $ 4.1 nm (100) % Expenses 40.0 45.2 55.3 12 % 18 % Adjusted EBITDA $ (39.8) $ (45.2) $ (51.2) 12 % 12 % nm - percentage change not meaningful Comparison of Corporate Results for the Year Ended December 31, 2024 to the Year Ended December 31, 2023 Adjusted EBITDA increased by $5.4 million, a 12% increase from 2023, mainly driven by a decrease in labor costs and other professional fees.
From time to time, we draw down on the Revolving Credit Facility , and, in accordance with the terms of the credit agreement, any proceeds drawn on the Revolving Credit Facility may be used for general corporate purposes. As of December 31, 2023, the Company had borrowed $59.0 million of the $300.0 million of available capacity.
From time to time, we draw down on the Revolving Credit Facility , and, in accordance with the terms of the credit agreement, any proceeds drawn on the Revolving Credit Facility may be used for general corporate purposes. As of December 31, 2024, the Company 44 had no outstanding balance borrowed under the Revolving Credit Facility.
As a result, these accounting policies and estimates could materially affect our financial statements and are critical to the understanding of our results of operations and financial condition. Management has discussed the selection of these critical accounting policies and estimates with the audit committee of the Board of Directors.
As a result, these accounting policies and estimates could materially affect our financial statements and are critical to the understanding of our results of operations and financial condition.
Comparison of Corporate Results for the Year Ended December 31, 2022 to the Year Ended December 31, 2021 Adjusted EBITDA increased by $36.9 million, a 42% increase from 2021, mainly driven by a decrease in labor costs and other professional fees, related to cost-reduction efforts.
Comparison of Corporate Results for the Year Ended December 31, 2023 to the Year Ended December 31, 2022 Adjusted EBITDA increased by $6.0 million, a 12% increase from 2022, mainly driven by a decrease in labor costs and other professional fees.
Average total organic enrollment was higher at our institutions, increasing revenues by $111.9 million compared to 2021. The effect of changes in tuition rates and enrollments in programs at varying price points (“product mix”), pricing and timing increased revenues by $30.8 million compared to 2021.
This increase was attributable to higher average total organic enrollment at our institutions, which increased revenues by $73.6 million compared to 2023. In addition, the effect of changes in tuition rates and enrollments in programs at varying price points (“product mix”), pricing and timing increased revenues by $34.8 million compared to 2023.
Adjusted EBITDA increased by $53.6 million, a 43% increase from 2022, mainly driven by higher revenues, partially offset by higher costs associated with return-to-campus expenses. 43 Comparison of Mexico Results for the Year Ended December 31, 2022 to the Year Ended December 31, 2021 (in millions) Revenues Direct Costs Adjusted EBITDA December 31, 2021 $ 540.4 $ 444.6 $ 95.8 Organic enrollment (1) 41.8 Product mix, pricing and timing (1) 25.4 Organic constant currency 67.2 54.8 12.4 Foreign exchange 6.3 4.2 2.1 Other (2) — (13.1) 13.1 December 31, 2022 $ 613.9 $ 490.5 $ 123.4 (1) Organic enrollment and Product mix, pricing and timing are not separable for the calculation of direct costs and therefore are combined and defined as Organic constant currency for the calculation of Adjusted EBITDA.
Adjusted EBITDA increased by $53.6 million, a 43% increase from 2022, mainly driven by higher revenues, partially offset by higher costs associated with return-to-campus expenses. 42 Peru Financial Overview Comparison of Peru Results for the Year Ended December 31, 2024 to the Year Ended December 31, 2023 (in millions) Revenues Direct Costs Adjusted EBITDA December 31, 2023 $ 701.7 $ 414.8 $ 286.9 Organic enrollment (1) 13.8 Product mix, pricing and timing (1) 12.5 Organic constant currency 26.3 28.1 (1.8) Foreign exchange (2.8) (1.1) (1.7) December 31, 2024 $ 725.2 $ 441.8 $ 283.4 (1) Organic enrollment and Product mix, pricing and timing are not separable for the calculation of direct costs and therefore are combined and defined as Organic constant currency for the calculation of Adjusted EBITDA.
The following tables, derived from our consolidated financial statements included elsewhere in this Form 10-K, present selected financial information of our reportable segments: (in millions) % Change Better/(Worse) For the year ended December 31, 2023 2022 2021 2023 vs. 2022 2022 vs. 2021 Revenues: Mexico $ 782.6 $ 613.9 $ 540.4 27 % 14 % Peru 701.7 624.2 537.1 12 % 16 % Corporate — 4.1 9.2 (100) % (55) % Consolidated Total Revenues $ 1,484.3 $ 1,242.3 $ 1,086.7 19 % 14 % Adjusted EBITDA: Mexico $ 177.0 $ 123.4 $ 95.8 43 % 29 % Peru 286.9 266.7 245.7 8 % 9 % Corporate (45.2) (51.2) (88.1) 12 % 42 % Consolidated Total Adjusted EBITDA $ 418.6 $ 338.9 $ 253.4 24 % 34 % 42 Mexico Financial Overview Comparison of Mexico Results for the Year Ended December 31, 2023 to the Year Ended December 31, 2022 (in millions) Revenues Direct Costs Adjusted EBITDA December 31, 2022 $ 613.9 $ 490.5 $ 123.4 Organic enrollment (1) 52.2 Product mix, pricing and timing (1) 24.9 Organic constant currency 77.1 44.5 32.6 Foreign exchange 91.6 71.0 20.6 Other (2) — (0.4) 0.4 December 31, 2023 $ 782.6 $ 605.6 $ 177.0 (1) Organic enrollment and Product mix, pricing and timing are not separable for the calculation of direct costs and therefore are combined and defined as Organic constant currency for the calculation of Adjusted EBITDA.
The following tables, derived from our consolidated financial statements included elsewhere in this Form 10-K, present selected financial information of our reportable segments: (in millions) % Change Better/(Worse) For the year ended December 31, 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 Revenues: Mexico $ 841.2 $ 782.6 $ 613.9 7 % 27 % Peru 725.2 701.7 624.2 3 % 12 % Corporate 0.2 — 4.1 nm (100) % Consolidated Total Revenues $ 1,566.6 $ 1,484.3 $ 1,242.3 6 % 19 % Adjusted EBITDA: Mexico $ 206.5 $ 177.0 $ 123.4 17 % 43 % Peru 283.4 286.9 266.7 (1) % 8 % Corporate (39.8) (45.2) (51.2) 12 % 12 % Consolidated Total Adjusted EBITDA $ 450.1 $ 418.6 $ 338.9 8 % 24 % nm - percentage change not meaningful Mexico Financial Overview 41 Comparison of Mexico Results for the Year Ended December 31, 2024 to the Year Ended December 31, 2023 (in millions) Revenues Direct Costs Adjusted EBITDA December 31, 2023 $ 782.6 $ 605.6 $ 177.0 Organic enrollment (1) 59.8 Product mix, pricing and timing (1) 22.3 Organic constant currency 82.1 48.3 33.8 Foreign exchange (23.5) (19.2) (4.3) December 31, 2024 $ 841.2 $ 634.7 $ 206.5 (1) Organic enrollment and Product mix, pricing and timing are not separable for the calculation of direct costs and therefore are combined and defined as Organic constant currency for the calculation of Adjusted EBITDA.
For countries that have enacted the global minimum tax, they are generally effective for the Company beginning in 2024. Income tax expense could be adversely affected as the legislation becomes effective in countries in which we do business. We will continue to monitor pending legislation and implementation by individual countries in which we operate.
For countries that have enacted the global minimum tax, such taxes generally became effective for the Company beginning in 2024. Income tax expense could be adversely affected as the legislation becomes effective in countries in which we do business.
These increases in non-operating expense were partially offset by a higher gain on disposal of subsidiaries of $2.2 million, primarily attributable to the release of accumulated foreign currency translation gains upon the liquidation of certain subsidiaries. 38 Income tax expense dec reased by $47.8 million to $137.6 million for 2023 from $185.4 million for 2022.
Additionally, other income was lower by $1.1 million compared to 2022. These increases in non-operating expense were partially offset by a higher gain on disposal of subsidiaries of $2.2 million, primarily attributable to the release of accumulated foreign currency translation gains upon the liquidation of certain subsidiaries.
As a subfacility under the Revolving Credit Facility, the Amended Credit Agreement provides for letter of credit commitments in the aggregate amount of $10.0 million.
Given the maturity date of the Series 2024 Tranche, as of December 31, 2024, the borrowing capacity of the Revolving Credit Facility was $155.0 million. As a subfacility under the Revolving Credit Facility, the Amended Credit Agreement provides for letter of credit commitments in the aggregate amount of $10.0 million.
The loan matures in June 2024 and carries a variable interest rate, plus an applicable margin, which is established based on the ratio of debt to EBITDA, as defined in the agreement (13.00% as of December 31, 2023).
During the second quarter of 2024, we entered into a loan modification, which extended the maturity of the loan to June 2029. The loan carries a variable interest rate, plus an applicable margin, which is established based on the ratio of debt to EBITDA, as defined in the agreement (11.74% as of December 31, 2024).
Long-Lived Assets We evaluate our long-lived assets, including property and equipment, to determine whether events or changes in circumstances indicate that the remaining estimated useful lives of such assets may warrant revision or that their carrying values may not be fully recoverable. 51 Indicators of impairment include, but are not limited to: • a significant deterioration of operating results; • a change in regulatory environment; • a change in business plans; or • an adverse change in anticipated cash flows.
Long-Lived Assets We evaluate our long-lived assets, including property and equipment, to determine whether events or changes in circumstances indicate that the remaining estimated useful lives of such assets may warrant revision or that their carrying values may not be fully recoverable.
In addition, the effect of a net change in foreign currency exchange rates increased revenues by $18.0 million, due to the strengthening of the Peruvian nuevo sol and the Mexican peso against the USD compared to 2021. These increases in revenues were partially offset by other Corporate and Eliminations changes, which accounted for a decrease in revenues of $5.1 million.
These increases in revenues were partially offset by the effect of a net change in foreign currency exchange rates, which decreased revenues by $26.3 million, mainly driven by the weakening of the Mexican peso against the USD compared to 2023. Other Corporate and Eliminations changes accounted for an increase in revenues of $0.2 million.
Under the updated guidance, the Company continues to have the option of first performing a qualitative goodwill impairment assessment (i.e., step zero) in order to determine if a quantitative impairment test is necessary.
Under the updated guidance, the Company continues to have the option of first performing a qualitative goodwill impairment assessment (i.e., step zero) in order to determine if a quantitative impairment test is necessary. A reporting unit is defined as a component of an operating segment for which discrete financial information is available and regularly reviewed by management of the segment.
The 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. Comparison of Depreciation and Amortization for the Years Ended December 31, 2023 and 2022 Depreciation and amortization increased by $10.5 million to $69.6 million for 2023 from $59.1 million for 2022.
The EiP initiative was completed as of December 31, 2021, except for certain EiP expenses during 2022 related to the run out of programs that began in prior periods.
See Overview for further detail on results of the Discontinued Operations. Comparison of Consolidated Results for the Year Ended December 31, 2022 to the Year Ended December 31, 2021 Revenues increased by $155.6 million to $1,242.3 million for 2022 from $1,086.7 million for 2021.
Comparison of Consolidated Results for the Year Ended December 31, 2023 to the Year Ended December 31, 2022 Revenues increased by $242.0 million to $1,484.3 million for 2023 from $1,242.3 million for 2022.
Goodwill On January 1, 2020, the Company adopted Accounting Standards Update (ASU) No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment. This ASU requires entities to calculate goodwill impairment as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill.
This ASU requires entities to calculate goodwill impairment as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill.
We use judgment in determining whether a triggering event has occurred and in estimating future cash flows and fair value. Changes in our judgments could result in impairments in future periods. See Note 7, Goodwill and Other Intangible Assets, in our consolidated financial statements included elsewhere in this Form 10-K for further details on impairments.
We use judgment in determining whether a triggering event has occurred and in estimating future cash flows and fair value. Changes in our judgments could result in impairments in future periods.
Comparison of Peru Results for the Year Ended December 31, 2022 to the Year Ended December 31, 2021 (in millions) Revenues Direct Costs Adjusted EBITDA December 31, 2021 $ 537.1 $ 291.4 $ 245.7 Organic enrollment (1) 70.1 Product mix, pricing and timing (1) 5.3 Organic constant currency 75.4 60.8 14.6 Foreign exchange 11.7 5.3 6.4 December 31, 2022 $ 624.2 $ 357.5 $ 266.7 (1) Organic enrollment and Product mix, pricing and timing are not separable for the calculation of direct costs and therefore are combined and defined as Organic constant currency for the calculation of Adjusted EBITDA.
Comparison of Mexico Results for the Year Ended December 31, 2023 to the Year Ended December 31, 2022 (in millions) Revenues Direct Costs Adjusted EBITDA December 31, 2022 $ 613.9 $ 490.5 $ 123.4 Organic enrollment (1) 52.2 Product mix, pricing and timing (1) 24.9 Organic constant currency 77.1 44.5 32.6 Foreign exchange 91.6 71.0 20.6 Other (2) — (0.4) 0.4 December 31, 2023 $ 782.6 $ 605.6 $ 177.0 (1) Organic enrollment and Product mix, pricing and timing are not separable for the calculation of direct costs and therefore are combined and defined as Organic constant currency for the calculation of Adjusted EBITDA.
Adjusted EBITDA increased by $20.2 million, an 8% increase from 2022, mainly driven by higher revenues, partially offset by higher costs associated with return-to-campus expenses.
Adjusted EBITDA increased by $20.2 million, an 8% increase from 2022, mainly driven by higher revenues, partially offset by higher costs associated with return-to-campus expenses. C orporate Corporate revenues primarily represent miscellaneous other revenues, net of the elimination of intersegment revenues. In 2022, corporate revenues also included transition services agreements related to previous divestitures.
A change in the assessment of the outcome of a tax review or audit could materially adversely affect our consolidated financial statements. See Note 13, Income Taxes, in our consolidated financial statements included elsewhere in this Form 10-K for details of our deferred taxes and tax contingencies.
A change in the assessment of the outcome of a tax review or audit could materially adversely affect our consolidated financial statements.
The 6% increase in capital expenditures for 2023 compared to 2022 was primarily due to investment in equipment for health science programs in Peru as well as campus expansion and digital innovation in Mexico.
The 6% increase in capital expenditures for 2023 compared to 2022 was primarily due to investment in equipment for health science programs in Peru as well as campus expansion and digital innovation in Mexico. 46 Stock Repurchase Program On September 13, 2024, the Company announced that its Board of Directors had approved a new stock repurchase program to acquire up to $100 million of the Company’s common stock .
Goodwill and Indefinite-lived Intangible Assets We perform annual impairment tests of indefinite-lived intangible assets, including goodwill and tradenames, as of October 1st each year. We also evaluate these assets on an interim basis if events or changes in circumstances between annual tests indicate that the assets may be impaired.
We also evaluate these assets on an interim basis if events or changes in circumstances between annual tests indicate that the assets may be impaired. We have not made material changes to the methodology used to assess impairment loss on indefinite-lived tradenames during the past three fiscal years.
We base our fair value estimates on assumptions that we believe to be reasonable but that are unpredictable and inherently uncertain. Actual results may differ from those estimates. In addition, we make certain judgments and assumptions in allocating shared assets and liabilities to determine the carrying values for each of our reporting units.
If the estimates and related assumptions used in assessing the recoverability of our goodwill and indefinite-lived tradenames decline, we may be required to record impairment charges for those assets. We base our fair value estimates on assumptions that we believe to be reasonable but that are unpredictable and inherently uncertain. Actual results may differ from those estimates.
We believe that our internal sources of cash and our ability to obtain additional third-party financing, subject to market conditions, will be sufficient to fund our investing activities.
We believe that our internal sources of cash and our ability to obtain additional third-party financing, subject to market conditions, will be sufficient to fund our investing activities. Our total capital expenditures, excluding receipts from the sale of subsidiaries and property and equipment, were $71.9 million, $56.5 million and $53.1 million during 2024, 2023 and 2022, respectively.
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 Mexico and Peru markets are characterized by what we believe is a significant imbalance between supply and demand.
Organic enrollment is based on average total enrollment for the period. For a further description of our segments, see Overview.
For a further description of our segments, see Overview.
St ock Repurchase Program On February 15, 2024, Laureate’s Board of Directors approved a new stock repurchase program to acquire up to $100 million of the Company’s common stock. The Company intends to finance the repurchases with free cash flow, excess cash and liquidity on-hand, including available capacity under its Revolving Credit Facility.
As of December 31, 2024, the approximate dollar value of shares yet to be purchased under this stock repurchase program was $98.0 million. The Company intends to finance the repurchases with free cash flow, excess cash and liquidity on-hand, including available capacity under its Revolving Credit Facility.
Indefinite Reinvestment of Foreign Earnings We earn substantially all of our income from subsidiaries located in countries outside the United States.
See Note 12, Income Taxes, in our consolidated financial statements included elsewhere in this Form 10-K for details of our deferred taxes and tax contingencies. 50 Indefinite Reinvestment of Foreign Earnings We earn substantially all of our income from subsidiaries located in countries outside the United States.
As of December 31, 2023 and 2022, the aggregate outstanding balances on our lines of credit were $10.9 million and $13.8 million, respectively. In December 2017, one of our subsidiaries in Mexico entered into an agreement with a bank for a loan of MXN 1,700.0 million (approximately $89.0 million at the time of the loan).
As of December 31, 2024 and 2023, the aggregate outstanding balances on our lines of credit were $30.0 million and $10.9 million, respectively. One of our subsidiaries in Mexico holds an unsecured term loan which was scheduled to mature in June 2024.
Other items accounted for the remaining difference of $1.2 million. Comparison of Cash Flows for the Year Ended December 31, 2022 to the Year Ended December 31, 2021 Operating activities Cash flows from operating activities changed by $334.3 million to cash inflow of $178.2 million for 2022, compared to a cash outflow of $(156.1) million for 2021.
Comparison of Cash Flows for the Year Ended December 31, 2023 to the Year Ended December 31, 2022 Operating activities Cash provided by operating activities increased by $72.6 million to $250.8 million for 2023, compared to $178.2 million for 2022.
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.
(c) EiP implementation expenses were related to our 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 decrease in interest expense was primarily attributable to lower average debt balances mainly driven by the full repayment of the Senior Notes due 2025 in 2021. Other non-operating expense decreased by $75.7 million to $15.3 million for 2022 from $91.0 million for 2021.
Interest expense, net of interest income decreased by $1.9 million to $10.0 million for 2024 from $11.9 million for 2023. The decrease in interest expense was primarily attributable to lower average debt balances compared to 2023. Other non-operating income (expense) changed by $123.0 million to income of $50.5 million for 2024 from expense of $(72.5) million for 2023.
The current quarterly payments on the loan total MXN 76.5 million ($4.5 million at December 31, 2023), with a balloon payment of MXN 425.0 million ($25.0 million at December 31, 2023) due at maturity. As of December 31, 2023 and 2022, the outstanding balance of this loan was $29.5 million and $41.4 million, respectively.
Under the loan modification agreement, the current quarterly payments on the loan total MXN $4.3 million ($0.2 million at December 31, 2024) and increase over the remaining term of the loan to MXN $23.4 million ($1.2 million at December 31, 2024), with a balloon payment of MXN 170.0 million ($8.4 million at December 31, 2024) due at maturity.
The following information for our reportable segments is presented as of December 31, 2023: Institutions Enrollment 2023 Revenues (in millions) % Contribution to 2023 YTD Revenues Mexico 2 242,000 $ 782.6 53 % Peru 3 206,900 701.7 47 % Total (1) 5 448,900 $ 1,484.3 100 % Challenges Our operations are outside of the United States and are subject to complex business, economic, legal, regulatory, political, tax and foreign currency risks, which may be difficult to adequately address.
Challenges Our operations are outside of the United States and are subject to complex business, economic, legal, regulatory, political, tax and foreign currency risks, which may be difficult to adequately address.
The remainder of the loss was mostly attributable to changes in estimates regarding the realizability of certain receivables from previous divestitures.
This change was primarily attributable to the year-over-year effect of a reserve recorded in 2023 related to an indemnification claim received, as well as changes in estimates during 2023 regarding the realizability of certain receivables from previous divestitures.
See also Note 4, Discontinued Operations and Assets Held for Sale, and Note 5, Dispositions, in our consolidated financial statements included elsewhere in this Form 10-K. Our Segments 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 Segments 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.
As of December 31, 2023, these conditions were satisfied and, therefore, we were not subject to the leverage ratio. The maximum ratio, as defined, is 3.00x as of the last day of each quarter commencing with the quarter ending December 31, 2019 and thereafter. In addition, indebtedness at some of our locations contain financial maintenance covenants.
The Amended Credit Agreement also provides that if less than 25% of the revolving credit facility is utilized as of that date, then such financial covenant shall not apply. As of December 31, 2024, this condition was satisfied and, therefore, we were not subject to the leverage ratio. In addition, indebtedness at some of our locations contain financial maintenance covenants.
The remaining increase in depreciation and amortization expense of $5.2 million was primarily attributed to a higher depreciable asset base in Mexico and Peru. 41 Comparison of Depreciation and Amortization and EiP Implementation Expenses for the Years Ended December 31, 2022 and 2021 Depreciation and amortization decreased by $42.1 million to $59.1 million for 2022 from $101.2 million for 2021.
The effects of foreign currency exchange rates increased depreciation and amortization expense by $5.3 million. The remaining increase in depreciation and amortization expense of $5.2 million was primarily attributed to a higher depreciable asset base in Mexico and Peru. Segment Results We have two reportable segments: Mexico and Peru, as discussed in Overview.
Revenues increased by $87.1 million, an 16% increase from 2021. • Organic enrollment increased during 2022 by 14%, increasing revenues by $70.1 million. • Revenues from our Peru segment represented 50% of our consolidated total revenues for both 2022 and 2021. Adjusted EBITDA increased by $21.0 million, a 9% increase from 2021.
Revenues increased by $23.5 million, a 3% increase from 2023. • Organic enrollment increased during 2024 by 2%, increasing revenues by $13.8 million. • Revenues from our Peru segment represented 46% of our consolidated total revenues for 2024 compared to 47% for 2023.
See Overview for further detail on results of the Discontinued Operations. Net loss (income) attributable to noncontrolling interests changed by $11.9 million to a loss of $0.6 million for 2022 from income of $(11.3) million for 2021.
Income (loss) from discontinued operations, net of tax changed by $10.5 million to income of $0.7 million for 2024 compared to a loss of $(9.8) million for 2023.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeFor the year ended December 31, 2023, a hypothetical 10% adverse change in average annual foreign currency exchange rates would have decreased Operating income and Adjusted EBITDA by approximately $40.6 million and $47.7 million, respectively. We monitor the impact of foreign currency movements related to differences between our subsidiaries' local currencies and the USD. 54
Biggest changeFor the year ended December 31, 2024, a hypothetical 10% adverse change in average annual foreign currency exchange rates would have decreased Revenues, Operating income and Adjusted EBITDA by approximately $156.6 million, $43.6 million and $50.4 million, respectively. We monitor the impact of foreign currency movements related to differences between our subsidiaries' local currencies and the USD. 52
These gains and losses are recorded in foreign currency 53 exchange gain (loss) on our consolidated statements of operations. • Gains and losses on foreign currency transactions. These gains and losses are recorded in foreign currency exchange gain (loss) on our consolidated statements of operations.
These gains and losses are recorded in foreign currency exchange gain (loss) on our consolidated statements of operations. • Gains and losses on foreign currency transactions. These gains and losses are recorded in foreign currency exchange gain (loss) on our consolidated statements of operations.
We derived substantially all of our revenues outside of the United States for the year ended December 31, 2023. Our business is transacted through a network of international and domestic subsidiaries, generally in the local currency, considered the functional currency for that subsidiary.
We derived substantially all of our revenues outside of the United States for the year ended December 31, 2024. Our business is transacted through a network of international and domestic subsidiaries, generally in the local currency, considered the functional currency for that subsidiary.
Based on our outstanding variable-rate debt as of December 31, 2023, an increase of 100 basis points in our weighted-average interest rate would result in an increase in interest expense of $0.9 million on an annual basis. Foreign Currency Exchange Risk We use the USD as our reporting currency.
Based on our outstanding variable-rate debt as of December 31, 2024, an increase of 100 basis points in our weighted-average interest rate would result in an increase in interest expense of $0.2 million on an annual basis. 51 Foreign Currency Exchange Risk We use the USD as our reporting currency.

Other LAUR 10-K year-over-year comparisons