Exhibit 12.1
LAUREATE EDUCATION, INC. AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
(unaudited)
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| Nine months ended |
| For the year ended |
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| September 30, |
| December 31, |
| December 31, |
| December 31, |
| December 31, |
| December 31, |
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(Dollar amounts in thousands) |
| 2015 |
| 2014 |
| 2013 |
| 2012 |
| 2011 |
| 2010 |
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Earnings: |
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Loss from continuing operations before income taxes, and equity in net loss of affiliates |
| $ | (220,224 | ) | $ | (201,671 | ) | $ | 1,929 |
| $ | (140,584 | ) | $ | (65,898 | ) | $ | (251,317 | ) |
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Plus: fixed charges |
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Interest expense (a) |
| 300,145 |
| 385,754 |
| 350,196 |
| 307,728 |
| 276,943 |
| 237,624 |
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Capitalized interest |
| — |
| 7,898 |
| 5,757 |
| 337 |
| 301 |
| 504 |
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Interest included in rent expense |
| 98,738 |
| 129,277 |
| 118,073 |
| 108,393 |
| 105,345 |
| 88,229 |
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Total fixed charges |
| 398,883 |
| 522,929 |
| 474,026 |
| 416,458 |
| 382,589 |
| 326,357 |
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Plus: amortization of capitalized interest |
| 2,073 |
| 5,853 |
| 4,059 |
| 104 |
| 190 |
| — |
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Less: capitalized interest |
| — |
| (7,898 | ) | (5,757 | ) | (337 | ) | (301 | ) | (504 | ) | ||||||
Earnings: |
| $ | 180,732 |
| $ | 319,213 |
| $ | 474,257 |
| $ | 275,641 |
| $ | 316,580 |
| $ | 74,536 |
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Fixed Charges: |
| $ | 398,883 |
| $ | 522,929 |
| $ | 474,026 |
| $ | 416,458 |
| $ | 382,589 |
| $ | 326,357 |
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Ratio of earnings to fixed charges |
| (b) |
| (b) |
| 1.0 |
| (b) |
| (b) |
| (b) |
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(a) Interest expense does not include interest relating to liabilities for uncertain tax positions, which the Company records as a component of income tax expense.
(b) Due to the Company’s losses in 2015, 2014, 2012, 2011 and 2010, the ratio coverage was less than 1:1 in each of those periods. The Company would have needed to generate additional earnings of $218,151, $203,716, $140,817, $66,009 and $251,821 during 2015, 2014, 2012, 2011 and 2010, respectively, in order to achieve a coverage ratio of 1:1 during those periods.