Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

REVENUE FROM CONTRACTS WITH CUSTOMERS

Revenue Recognition. The Company’s revenue disaggregated by revenue source was as follows:

	Three Months Ended   March 31
(in thousands)	2019			2018
Education Revenue
Kaplan international	$	185,756		$	183,582
Higher education	82,780			99,830
Test preparation	61,150			59,151
Professional (U.S.)	41,214			33,356
Kaplan corporate and other	2,302			285
Intersegment elimination	(748		)	(705		)
	372,454			375,499
Television broadcasting	108,223			108,802
Manufacturing	115,157			117,406
Healthcare	37,728			37,621
SocialCode	13,447			13,299
Other	45,230			6,833
Intersegment elimination	(40		)	(24		)
Total Revenue	$	692,199		$	659,436

The Company generated 75% and 74% of its revenue from U.S. domestic sales for the three months ended March 31, 2019 and March 31, 2018, respectively. The remaining 25% and 26% of revenue for the three months ended March 31, 2019 and March 31, 2018, respectively, was generated from non-U.S. sales.

For the three months ended March 31, 2019 and March 31, 2018, the Company recognized 76% and 81%, respectively, of its revenue over time as control of the services and goods transferred to the customer. The remaining 24% and 19%, respectively, of revenue was recognized at a point in time, when the customer obtained control of the promised goods.

Deferred Revenue. The Company records deferred revenue when cash payments are received or due in advance of the Company’s performance, including amounts which are refundable. The following table presents the change in the Company’s deferred revenue balance:

	As of
	March 31, 2019		December 31, 2018		%
(in thousands)					Change
Deferred revenue	$	299,068	$	311,214	(4)

During the three months ended March 31, 2019, the Company recognized $163.7 million related to the Company’s deferred revenue balance as of December 31, 2018.

Revenue allocated to remaining performance obligations represents deferred revenue amounts that will be recognized as revenue in future periods. As of March 31, 2019, KTP’s deferred revenue balance related to certain medical and nursing qualifications with an original contract length greater than twelve months was $5.7 million. KTP expects to recognize 78% of this revenue over the next twelve months and the remainder thereafter.

Costs to Obtain a Contract. The following table presents changes in the Company’s costs to obtain a contract asset:

(in thousands)	Balance at Beginning of Period		Costs associated with new contracts		Less: Costs amortized during the period			Other		Balance at End of Period
2019	$	21,311	$	11,071	$	(11,936	)	$	466	$	20,912

The majority of other activity is related to currency translation adjustments during the three months ended March 31, 2019.