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Business Segments | 6 Months Ended
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Jun. 30, 2019
Segment Reporting [Abstract] |
Business Segments | BUSINESS SEGMENTS The Company has six reportable segments: Kaplan International, Kaplan Higher Education, Kaplan Test Preparation, Kaplan Professional (U.S.), Television Broadcasting and Healthcare. The following table summarizes the financial information related to each of the Company’s business segments:
| Three Months Ended |  | Six months ended
| June 30 |  | June 30
(in thousands) | 2019 |  | 2018 |  | 2019 |  | 2018
Operating Revenues |  |  |  |  |  |  |
Education | $ | 367,763 |  |  | $ | 370,005 |  |  | $ | 740,217 |  |  | $ | 745,504 |
Television broadcasting | 116,628 |  |  | 114,086 |  |  | 224,851 |  |  | 222,888 |
Healthcare | 40,641 |  |  | 38,208 |  |  | 78,369 |  |  | 75,829 |
Other businesses | 212,614 |  |  | 150,399 |  |  | 386,448 |  |  | 287,937 |
Corporate office | — |  |  | — |  |  | — |  |  | — |
Intersegment elimination | (44 | ) |  | (21 | ) |  | (84 | ) |  | (45 | )
| $ | 737,602 |  |  | $ | 672,677 |  |  | $ | 1,429,801 |  |  | $ | 1,332,113 |
Income (Loss) from Operations |  |  |  |  |  |  |
Education | $ | 26,305 |  |  | $ | 37,554 |  |  | $ | 51,900 |  |  | $ | 60,254 |
Television broadcasting | 44,494 |  |  | 41,118 |  |  | 80,034 |  |  | 81,660 |
Healthcare | 2,598 |  |  | 764 |  |  | 4,927 |  |  | (627 | )
Other businesses | (2,196 | ) |  | (1,054 | ) |  | (11,433 | ) |  | (4,749 | )
Corporate office | (13,238 | ) |  | (12,756 | ) |  | (27,462 | ) |  | (26,698 | )
| $ | 57,963 |  |  | $ | 65,626 |  |  | $ | 97,966 |  |  | $ | 109,840 |
Equity in Earnings of Affiliates, Net | 1,467 |  |  | 931 |  |  | 3,146 |  |  | 3,510 |
Interest Expense, Net | (6,807 | ) |  | (15,264 | ) |  | (12,532 | ) |  | (21,963 | )
Debt Extinguishment Costs | — |  |  | (11,378 | ) |  | — |  |  | (11,378 | )
Non-Operating Pension and Postretirement Benefit Income, Net | 12,253 |  |  | 23,041 |  |  | 32,181 |  |  | 44,427 |
Gain (Loss) on Marketable Equity Securities, Net | 7,791 |  |  | (2,554 | ) |  | 31,857 |  |  | (16,656 | )
Other Income, Net | 1,228 |  |  | 2,333 |  |  | 30,579 |  |  | 11,520 |
Income Before Income Taxes | $ | 73,895 |  |  | $ | 62,735 |  |  | $ | 183,197 |  |  | $ | 119,300 |
Depreciation of Property, Plant and Equipment |  |  |  |  |  |  |
Education | $ | 6,137 |  |  | $ | 6,839 |  |  | $ | 12,338 |  |  | $ | 14,445 |
Television broadcasting | 3,293 |  |  | 2,974 |  |  | 6,532 |  |  | 6,045 |
Healthcare | 607 |  |  | 647 |  |  | 1,217 |  |  | 1,300 |
Other businesses | 3,605 |  |  | 2,906 |  |  | 6,838 |  |  | 5,965 |
Corporate office | 242 |  |  | 253 |  |  | 482 |  |  | 506 |
| $ | 13,884 |  |  | $ | 13,619 |  |  | $ | 27,407 |  |  | $ | 28,261 |
Amortization of Intangible Assets and Impairment of Long-Lived Assets |  |  |  |  |  |  |  |
Education | $ | 4,070 |  |  | $ | 1,663 |  |  | $ | 7,637 |  |  | $ | 2,812 |
Television broadcasting | 1,408 |  |  | 1,408 |  |  | 2,816 |  |  | 2,816 |
Healthcare | 1,410 |  |  | 1,809 |  |  | 2,808 |  |  | 3,617 |
Other businesses | 6,685 |  |  | 6,519 |  |  | 13,372 |  |  | 12,538 |
Corporate office | — |  |  | — |  |  | — |  |  | — |
| $ | 13,573 |  |  | $ | 11,399 |  |  | $ | 26,633 |  |  | $ | 21,783 |
Pension Service Cost |  |  |  |  |  |  |  |
Education | $ | 2,522 |  |  | $ | 1,878 |  |  | $ | 5,186 |  |  | $ | 4,542 |
Television broadcasting | 780 |  |  | 601 |  |  | 1,511 |  |  | 1,094 |
Healthcare | 63 |  |  | 165 |  |  | 246 |  |  | 287 |
Other businesses | 367 |  |  | 378 |  |  | 841 |  |  | 667 |
Corporate office | 1,231 |  |  | 1,295 |  |  | 2,400 |  |  | 2,667 |
| $ | 4,963 |  |  | $ | 4,317 |  |  | $ | 10,184 |  |  | $ | 9,257 |
Asset information for the Company’s business segments are as follows:
| As of
(in thousands) | June 30, 2019 |  | December 31, 2018
Identifiable Assets |  |  |
Education | $ | 1,789,059 |  |  | $ | 1,568,747 |
Television broadcasting | 475,379 |  |  | 452,853 |
Healthcare | 123,876 |  |  | 108,596 |
Other businesses | 962,227 |  |  | 827,113 |
Corporate office | 160,095 |  |  | 162,971 |
| $ | 3,510,636 |  |  | $ | 3,120,280 |
Investments in Marketable Equity Securities | 518,099 |  |  | 496,390 |
Investments in Affiliates | 159,660 |  |  | 143,813 |
Prepaid Pension Cost | 1,024,555 |  |  | 1,003,558 |
Total Assets | $ | 5,212,950 |  |  | $ | 4,764,041 |
The Company’s education division comprises the following operating segments:
| Three Months Ended |  | Six months ended
| June 30 |  | June 30
(in thousands) | 2019 |  | 2018 |  | 2019 |  | 2018
Operating Revenues |  |  |  |  |  |  |
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 |
Income (Loss) from Operations |  |  |  |  |  |  |  |  |  |
Kaplan international | $ | 25,537 |  |  | $ | 24,187 |  |  | $ | 49,822 |  |  | $ | 44,591 |
Higher education | 2,721 |  |  | 11,219 |  |  | 4,636 |  |  | 12,574 |
Test preparation | 4,289 |  |  | 6,120 |  |  | 3,835 |  |  | 6,641 |
Professional (U.S.) | 4,745 |  |  | 4,780 |  |  | 16,004 |  |  | 14,095 |
Kaplan corporate and other | (10,990 | ) |  | (8,763 | ) |  | (22,394 | ) |  | (17,658 | )
Intersegment elimination | 3 |  |  | 11 |  |  | (3 | ) |  | 11 |
| $ | 26,305 |  |  | $ | 37,554 |  |  | $ | 51,900 |  |  | $ | 60,254 |
Depreciation of Property, Plant and Equipment |  |  |  |  |  |  |  |  |  |  |
Kaplan international | $ | 3,716 |  |  | $ | 3,764 |  |  | $ | 7,598 |  |  | $ | 7,738 |
Higher education | 629 |  |  | 1,274 |  |  | 1,226 |  |  | 3,132 |
Test preparation | 779 |  |  | 973 |  |  | 1,584 |  |  | 1,951 |
Professional (U.S.) | 959 |  |  | 670 |  |  | 1,824 |  |  | 1,312 |
Kaplan corporate and other | 54 |  |  | 158 |  |  | 106 |  |  | 312 |
| $ | 6,137 |  |  | $ | 6,839 |  |  | $ | 12,338 |  |  | $ | 14,445 |
Amortization of Intangible Assets | $ | 3,377 |  |  | $ | 1,663 |  |  | $ | 6,944 |  |  | $ | 2,812 |
Impairment of Long-lived Assets | $ | 693 |  |  | $ | — |  |  | $ | 693 |  |  | $ | — |
Pension Service Cost |  |  |  |  |  |  |  |  |  |  |
Kaplan international | $ | 110 |  |  | $ | 84 |  |  | $ | 227 |  |  | $ | 167 |
Higher education | 1,102 |  |  | 804 |  |  | 2,265 |  |  | 2,210 |
Test preparation | 821 |  |  | 729 |  |  | 1,687 |  |  | 1,458 |
Professional (U.S.) | 329 |  |  | 290 |  |  | 677 |  |  | 580 |
Kaplan corporate and other | 160 |  |  | (29 | ) |  | 330 |  |  | 127 |
| $ | 2,522 |  |  | $ | 1,878 |  |  | $ | 5,186 |  |  | $ | 4,542 |
Asset information for the Company’s education division is as follows:
| As of
(in thousands) | June 30, 2019 |  | December 31, 2018
Identifiable assets |  |  |
Kaplan international | $ | 1,225,819 |  |  | $ | 1,101,040 |
Higher education | 186,623 |  |  | 126,752 |
Test preparation | 158,612 |  |  | 145,308 |
Professional (U.S.) | 156,632 |  |  | 166,916 |
Kaplan corporate and other | 61,373 |  |  | 28,731 |
| $ | 1,789,059 |  |  | $ | 1,568,747 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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