BUSINESS SEGMENTS

As a result of the Kaplan University transaction, the Company reorganized its operations in the first quarter of 2018 into the following six reportable segments for the purpose of making operating decisions and assessing performance: Kaplan International, Kaplan Higher Education, Kaplan Test Preparation, Kaplan Professional (U.S.), Television Broadcasting and Healthcare.

Kaplan reorganized its higher education operations into the following two operating segments: Higher Education and Professional (U.S.). The higher education segment comprises the historical KU for-profit postsecondary education business and the current non-academic operations support services provided to the new university, Purdue University Global. The Professional (U.S.) segment comprises the KU School of Professional and Continuing Education, which provides professional training and exam preparation for professional certifications and licensures.

The business segments disclosed in the condensed consolidated financial statements are based on this new organizational structure and information reviewed by the Company’s management to evaluate the business segment results. Segment operating results have been restated to reflect this organizational change.

The following table summarizes the financial information related to each of the Company’s business segments:



	Three Months Ended						Nine months ended
	September 30						September 30
(in thousands)	2018			2017			2018			2017
Operating Revenues
Education	$	358,601		$	376,805		$	1,104,105		$	1,136,201
Television broadcasting	130,014			101,295			352,902			298,893
Healthcare	35,486			40,473			111,315			115,592
Other businesses	150,665			138,652			438,602			365,343
Corporate office	—			—			—			—
Intersegment elimination	—			—			(45		)	—
	$	674,766		$	657,225		$	2,006,879		$	1,916,029
Income (Loss) from Operations
Education	$	22,262		$	13,797		$	82,516		$	56,565
Television broadcasting	55,453			33,462			137,113			99,722
Healthcare	(8,702		)	920			(9,329		)	378
Other businesses	4,613			(7,021		)	(136		)	(25,961		)
Corporate office	(12,887		)	(14,208		)	(39,585		)	(43,760		)
	$	60,739		$	26,950		$	170,579		$	86,944
Equity in Earnings (Losses) of Affiliates, Net	9,537			(532		)	13,047			1,448
Interest Expense, Net	(5,524		)	(7,758		)	(27,487		)	(22,386		)
Debt Extinguishment Costs	—			—			(11,378		)	—
Non-Operating Pension and Postretirement Benefit Income, Net	22,214			17,621			66,641			55,042
Loss on Marketable Equity Securities, Net	44,962			—			28,306			—
Other Income, Net	3,142			1,963			14,662			6,881
Income Before Income Taxes	$	135,070		$	38,244		$	254,370		$	127,929
Depreciation of Property, Plant and Equipment
Education	$	6,685		$	8,085		$	21,130		$	24,994
Television broadcasting	3,198			3,118			9,243			8,703
Healthcare	648			1,166			1,948			3,429
Other businesses	2,865			3,354			8,830			8,539
Corporate office	252			279			758			860
	$	13,648		$	16,002		$	41,909		$	46,525
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets
Education	$	2,682		$	1,355		$	5,494		$	3,798
Television broadcasting	1,408			1,071			4,224			2,943
Healthcare	9,839			2,420			13,456			5,718
Other businesses	6,449			6,389			18,987			25,367
Corporate office	—			—			—			—
	$	20,378		$	11,235		$	42,161		$	37,826
Pension Expense
Education	$	2,107		$	2,430		$	6,649		$	7,289
Television broadcasting	544			485			1,638			1,457
Healthcare	143			166			430			498
Other businesses	346			277			1,013			843
Corporate office	1,333			1,233			4,000			4,009
	$	4,473		$	4,591		$	13,730		$	14,096

Asset information for the Company’s business segments are as follows:



	As of
(in thousands)	September 30, 2018		December 31, 2017
Identifiable Assets
Education	$	1,599,680	$	1,592,097
Television broadcasting	455,746		455,884
Healthcare	108,685		129,856
Other businesses	819,419		855,399
Corporate office	143,416		182,905
	$	3,126,946	$	3,216,141
Marketable Equity Securities	497,879		536,315
Investments in Affiliates	142,756		128,590
Prepaid Pension Cost	1,106,162		1,056,777
Total Assets	$	4,873,743	$	4,937,823

The Company’s education division comprises the following operating segments:



	Three Months Ended						Nine months ended
	September 30						September 30
(in thousands)	2018			2017			2018			2017
Operating Revenues
Kaplan international	$	167,668		$	171,259		$	535,553		$	507,568
Higher education	89,269			105,210			275,080			328,161
Test preparation	67,749			72,680			195,504			212,978
Professional (U.S.)	34,302			28,249			98,715			88,812
Kaplan corporate and other	143			49			870			120
Intersegment elimination	(530		)	(642		)	(1,617		)	(1,438		)
	$	358,601		$	376,805		$	1,104,105		$	1,136,201
Income (Loss) from Operations
Kaplan international	$	8,375		$	5,348		$	52,966		$	29,009
Higher education	6,042			1,493			18,616			17,079
Test preparation	10,572			7,330			17,213			10,207
Professional (U.S.)	6,768			7,316			20,863			22,045
Kaplan corporate and other	(9,452		)	(7,631		)	(27,110		)	(21,739		)
Intersegment elimination	(43		)	(59		)	(32		)	(36		)
	$	22,262		$	13,797		$	82,516		$	56,565
Depreciation of Property, Plant and Equipment
Kaplan international	$	3,759		$	3,780		$	11,497		$	11,071
Higher education	915			2,010			4,047			7,142
Test preparation	1,033			1,407			2,984			4,080
Professional (U.S.)	859			758			2,171			2,306
Kaplan corporate and other	119			130			431			395
	$	6,685		$	8,085		$	21,130		$	24,994
Amortization of Intangible Assets	$	2,682		$	1,355		$	5,494		$	3,798
Pension Expense
Kaplan international	$	66		$	24		$	233		$	198
Higher education	1,050			467			3,260			3,951
Test preparation	577			244			2,035			2,066
Professional (U.S.)	291			81			871			685
Kaplan corporate and other	123			1,614			250			389
	$	2,107		$	2,430		$	6,649		$	7,289

Asset information for the Company’s education division is as follows:



	As of
(in thousands)	September 30, 2018		December 31, 2017
Identifiable assets
Kaplan international	$	1,109,470	$	1,115,919
Higher education	144,274		231,986
Test preparation	155,846		130,938
Professional (U.S.)	160,120		91,630
Kaplan corporate and other	29,970		21,624
	$	1,599,680	$	1,592,097