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Revenue from Contracts with Customers
 12 Months Ended
Dec. 31, 2018
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers
REVENUE FROM CONTRACTS WITH CUSTOMERS
Revenue Recognition. The following table presents the Company’s revenue disaggregated by revenue source for the years ended December 31, 2018, 2017 and 2016:
 
Year Ended December 31
(in thousands)
2018
 
2017
 
2016
Education Revenue
 
 
 
 
 
Kaplan international
$
719,982

 
$
697,999

 
$
696,362

Higher education
342,085

 
431,425

 
501,784

Test preparation
256,102

 
273,298

 
286,556

Professional (U.S.)
134,187

 
115,839

 
115,263

Kaplan corporate and other
1,142

 
294

 
214

Intersegment elimination
(2,483
)
 
(2,079
)
 
(1,718
)
 
1,451,015

 
1,516,776

 
1,598,461

Television broadcasting
505,549

 
409,916

 
409,718

Manufacturing
487,619

 
414,193

 
241,604

Healthcare
149,275

 
154,202

 
146,962

SocialCode
58,728

 
62,077

 
58,851

Other
43,880

 
34,733

 
26,433

Intersegment elimination
(100
)
 
(51
)
 
(139
)
Total Revenue
$
2,695,966

 
$
2,591,846

 
$
2,481,890


The Company generated 76% of its revenue from U.S. domestic sales for the year ended December 31, 2018. The remaining 24% of revenue was generated from non-U.S. sales.
For the year ended December 31, 2018, the Company recognized 80% of its revenue over time as control of the services and goods transferred to the customer. The remaining 20% of revenue was recognized at a point in time, when the customer obtained control of the promised goods.
The determination of the method by which the Company measures its progress towards the satisfaction of its performance obligations requires judgment and is described in the Summary of Significant Accounting Policies (Note 2).
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 during the year ended December 31, 2018:
 
As of
 
 
December 31,
2018
 
January 1,
2018
%
(in thousands)
 
Change
Deferred revenue
$
311,214

 
$
342,640

(9)

The majority of the change in the deferred revenue balance is related to the KU Transaction. During the year ended December 31, 2018, the Company recognized $259.2 million related to the Company’s deferred revenue balance as of January 1, 2018.
Revenue allocated to remaining performance obligations represents deferred revenue amounts that will be recognized as revenue in future periods. As of December 31, 2018, KTP’s deferred revenue balance related to certain medical and nursing qualifications with an original contract length greater than twelve months was $5.6 million. KTP expects to recognize 81% 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 during the year ended December 31, 2018:
(in thousands)
Balance at
Beginning
of Year
 
Costs Associated with New Contracts
 
Less: Costs Amortized during the Year
 
Other
 
Balance
at
End of
Year
2018
$
16,043

 
$
55,664

 
$
(49,284
)
 
$
(1,112
)
 
$
21,311


The majority of other activity is related to currency translation adjustments during the year ended December 31, 2018.