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Revenue from Contracts with Customers
6 Months Ended
Jun. 30, 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 
 June 30
 
Six Months Ended 
 June 30
(in thousands)
2019
 
2018
 
2019
 
2018
Education Revenue
 
 
 
 
 
 
 
Kaplan international
$
188,580

 
$
184,303

 
$
374,336

 
$
367,885

Higher education
76,288

 
85,981

 
159,068

 
185,811

Test preparation
65,673

 
68,604

 
126,823

 
127,755

Professional (U.S.)
35,147

 
31,057

 
76,361

 
64,413

Kaplan corporate and other
2,369

 
442

 
4,671

 
727

Intersegment elimination
(294
)
 
(382
)
 
(1,042
)
 
(1,087
)
 
367,763

 
370,005

 
740,217

 
745,504

Television broadcasting
116,628

 
114,086

 
224,851

 
222,888

Manufacturing
114,873

 
126,462

 
230,030

 
243,868

Healthcare
40,641

 
38,208

 
78,369

 
75,829

SocialCode
16,382

 
14,770

 
29,829

 
28,069

Other
81,359

 
9,167

 
126,589

 
16,000

Intersegment elimination
(44
)
 
(21
)
 
(84
)
 
(45
)
Total Revenue
$
737,602

 
$
672,677

 
$
1,429,801

 
$
1,332,113


The Company generated 76% of its revenue from U.S. domestic sales for the three and six months ended June 30, 2019. The remaining 24% of revenue for the three and six months ended June 30, 2019, respectively, was generated from non-U.S. sales. For the three and six months ended June 30, 2018, 75% of revenue was from U.S. domestic sales, and the remaining 25% was generated from non-U.S. sales.
For the three and six months ended June 30, 2019, the Company recognized 76% of its revenue over time as control of the services and goods transferred to the customer, and 24% at a point in time, when the customer obtained control of the promised goods. For the three and six months ended June 30, 2018, the Company recognized 80% of its revenue over time, and the remaining 20% at a point in time.
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
 
 
June 30,
2019
 
December 31,
2018
%
(in thousands)
 
Change
Deferred revenue
$
245,729

 
$
311,214

(21)

The majority of the change in the deferred revenue balance is related to the cyclical nature of services at the Kaplan international division. During the six months ended June 30, 2019, the Company recognized $233.1 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 June 30, 2019, KTP’s deferred revenue balance related to certain medical and nursing qualifications with an original contract length greater than twelve months was $5.8 million. KTP expects to recognize 75% 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

 
$
19,270

 
$
(25,496
)
 
$
119

 
$
15,204


The majority of other activity is related to currency translation adjustments during the six months ended June 30, 2019. Amortization expense for costs to obtain a contract was $13.6 million for the three months ended June 30, 2019.