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PART I
Item 1. Business.
The Washington Post Company (the ""Company'') is a diversified media and education company. The Company's
Kaplan subsidiary provides a wide variety of educational services, both domestically and outside the United States. The
Company's media operations consist of newspaper publishing (principally
The Washington Post
), television broadcasting
(through the ownership and operation of six television broadcast stations), magazine publishing (principally
Newsweek
)
and the ownership and operation of cable television systems.
Information concerning the consolidated operating revenues, consolidated income from operations and identifiable assets attributable
to the principal segments of the Company's business for the last three fiscal years is contained in Note N to the Company's
Consolidated Financial Statements appearing elsewhere in this Annual Report on Form 10-K. (Revenues for each segment are shown
in such Note N net of intersegment sales, which did not exceed 0.1% of consolidated operating revenues.)
The Company's operations in geographic areas outside the United States (consisting primarily of Kaplan's foreign
operations and the publication of the international editions of
Newsweek
) during the Company's 2006, 2005 and 2004
fiscal years accounted for approximately 9%, 7% and 6%, respectively, of its consolidated revenues, and the identifiable
assets attributable to such operations represented approximately 10%, 7% and 6% of the Company's consolidated
assets at December 31, 2006, January 1, 2006 and January 2, 2005, respectively.
Education
Kaplan, Inc., a subsidiary of the Company, provides an extensive range of educational services for children, students and
professionals. Kaplan's historical focus on test preparation has been expanded as new educational and career services
businesses have been acquired or initiated. The Company divides Kaplan's various businesses into two categories:
supplemental education, which consists of the Test Preparation and Admissions Division, the Professional Division, and
Kaplan Publishing; and higher education, which consists of Kaplan's Higher Education Division and several companies that
provide higher education services outside the United States.
Supplemental Education
Test Preparation and Admissions Division
Through its Test Preparation and Admissions Division, Kaplan prepares students for a broad range of admissions and
licensing examinations, including the SAT, LSAT, GMAT, MCAT, GRE, and nursing and medical boards. This business can
be subdivided into four categories: KÓ12 (serving schools and school districts seeking assistance in improving student
performance using print- and computer-based supplemental programs, preparing students for state assessment tests and
for the SAT and ACT, providing curriculum consulting services and providing professional training for teachers); Graduate
and Pre-College (serving high school and college students and professionals, primarily with preparation for admissions
tests to college and to graduate, medical and law schools); Medical (serving medical professionals preparing for
licensing exams); and English Language Training (serving foreign students and professionals wishing to study or work in
English-speaking countries). Many of this division's test preparation courses have been available to students via the
Internet since 1999. During 2006 these businesses within the Test Preparation and Admissions Division provided courses to
over 300,000 students (including over 85,000 enrolled in online programs) and provided courses at 160 permanent
centers located throughout the United States and in Canada, Puerto Rico, Mexico, London and Paris. In addition, Kaplan
licenses material for certain of its test preparation courses to third parties who during 2006 offered courses at 39 locations
in 14 foreign countries. The Test Preparation and Admissions Division also develops educational software for the KÓ12,
graduate and English-as-a-second-language markets which is sold through an arrangement with a third party that is
responsible for production and distribution. This Division also produces a college newsstand guide in conjunction with
Newsweek.
The Test Preparation and Admissions Division also includes The Kidum Group, which is a provider of preparation courses for Israeli
high school graduation and university admissions exams and English-as-a-second-language courses in Israel. During 2006 The Kidum
Group provided courses to over 40,000 students at 50 permanent centers located throughout Israel.
2006 FORM 10-K 1