LAUREATE EDUCATION, INC. 10-K

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. Accordingly, we have paid assessments totaling approximately $40.8 million for tax years during the period 2006 to 2015. We have filed various appeals of the assessments, which have been rejected. However, a decision is still pending with respect to the STA’s appeal to the Spanish Supreme Court on these issues, which the Company believes will provide resolution of the relevant issues raised in the Company’s objections to the assessments. The Company does not expect that this matter will have a material effect on its consolidated financial statements. Item 4. Mine Safety Disclosures Not applicable. 27 Part II