LAUREATE EDUCATION, INC.LAUR
LAUREATE EDUCATION, INC. Leases Disclosure
Leases
Laureate conducts a significant portion of its operations at leased facilities, including many of Laureate's higher education facilities and other office locations. Laureate analyzes each lease agreement to determine whether it should be classified as a finance lease or an operating lease.
Finance Leases
Our finance lease agreements are for property and equipment. The lease assets are included within buildings as well as furniture, equipment and software and the related lease liability is included within debt and finance leases on the Consolidated Balance Sheets.
Operating Leases
Our operating lease agreements are primarily for real estate space and are included within operating lease ROU assets and operating lease liabilities on the Consolidated Balance Sheets. The terms of our operating leases vary and generally contain renewal options. Certain of these operating leases provide for increasing rent over the term of the lease. Laureate also leases certain equipment under noncancellable operating leases, which are typically for terms of 60 months or less.
ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. As discussed in Note 2, Significant Accounting Policies, ROU assets and lease liabilities are recognized at the commencement date of the lease based on the estimated present value of lease payments over the lease term. Our variable lease payments consist of non-lease services related to the lease. Variable lease payments are excluded from the ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Many of our lessee agreements include options to extend the lease, which we do not include in our minimum lease terms unless they are reasonably certain to be exercised. On occasion, Laureate has entered into sublease agreements for certain leased office space; however, the sublease income from these agreements is immaterial.
Supplemental balance sheet information related to leases as of December 31, 2025 and 2024 was as follows:
| Leases | Classification | 2025 | 2024 | ||||||||
| Assets: | |||||||||||
| Operating | Operating lease right-of-use assets, net | $ | 335,626 | $ | 292,387 | ||||||
| Finance | 48,664 | 36,513 | |||||||||
| Total leased assets | $ | 384,290 | $ | 328,900 | |||||||
| Liabilities: | |||||||||||
| Current | |||||||||||
| Operating | Current portion of operating leases | $ | 55,971 | $ | 48,170 | ||||||
| Finance | 9,409 | 7,258 | |||||||||
| Non-current | |||||||||||
| Operating | Long-term operating leases, less current portion | 331,792 | 278,957 | ||||||||
| Finance | 54,055 | 41,137 | |||||||||
| Total lease liabilities | $ | 451,227 | $ | 375,522 | |||||||
| Lease Term and Discount Rate | 2025 | 2024 | 2023 | ||||||||
| Weighted average remaining lease terms | |||||||||||
| Operating leases | 9.4 years | 8.2 years | 8.6 years | ||||||||
| Finance leases | 11.6 years | 13.2 years | 13.7 years | ||||||||
| Weighted average discount rate | |||||||||||
| Operating leases | 9.10 | % | 9.00 | % | 9.50 | % | |||||
| Finance leases | 10.00 | % | 10.10 | % | 10.70 | % | |||||
The components of lease cost for the years ended December 31, 2025, 2024 and 2023 were as follows:
| Lease Cost | Classification | 2025 | 2024 | 2023 | ||||||||||
| Operating lease cost | Direct costs | $ | 59,242 | $ | 64,934 | $ | 62,904 | |||||||
| Finance lease cost | ||||||||||||||
| Amortization of leased assets | Direct costs | 11,560 | 10,918 | 10,130 | ||||||||||
| Interest on leased assets | Interest expense | 5,380 | 5,461 | 5,670 | ||||||||||
| Short-term lease costs | Direct costs | 1,636 | 1,407 | 1,242 | ||||||||||
| Variable lease costs | Direct costs | 16,170 | 15,241 | 13,165 | ||||||||||
| Sublease income | Revenues | (1,063) | (1,173) | (934) | ||||||||||
| Total lease cost | $ | 92,925 | $ | 96,788 | $ | 92,177 | ||||||||
As of December 31, 2025, maturities of lease liabilities were as follows:
| Maturity of Lease Liability | Operating Leases | Finance Leases | ||||||
| Year 1 | $ | 98,756 | $ | 14,943 | ||||
| Year 2 | 81,138 | 12,872 | ||||||
| Year 3 | 58,437 | 10,132 | ||||||
| Year 4 | 50,955 | 7,795 | ||||||
| Year 5 | 46,750 | 6,605 | ||||||
| Thereafter | 264,954 | 75,009 | ||||||
| Total lease payments | $ | 600,990 | $ | 127,356 | ||||
| Less: interest and inflation | (213,227) | (63,892) | ||||||
| Present value of lease liabilities | $ | 387,763 | $ | 63,464 | ||||
Supplemental cash flow information related to leases for the years ended December 31, 2025, 2024 and 2023 was as follows:
| Other Information | 2025 | 2024 | 2023 | ||||||||
| Cash paid for amounts included in the measurement of lease liabilities | |||||||||||
| Operating cash flows used for operating leases | $ | 58,625 | $ | 62,682 | $ | 63,959 | |||||
| Operating cash flows used for finance leases | $ | 5,380 | $ | 5,461 | $ | 5,670 | |||||
| Financing cash flows used for finance leases | $ | 9,864 | $ | 8,527 | $ | 6,905 | |||||
| Leased assets obtained for new finance lease liabilities | $ | 15,785 | $ | 7,001 | $ | 13,034 | |||||
| Leased assets obtained for new operating lease liabilities | $ | 4,062 | $ | 13,793 | $ | 20,920 | |||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 27, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.