Washington Post 2007 Annual Report Download - page 44

events to differ materially from those anticipated in such statements. Accordingly, undue reliance should not be placed
on any forward-looking statement made by or on behalf of the Company. The Company assumes no obligation to
update any forward-looking statement after the date on which such statement is made, even if new information
subsequently becomes available.
Available Information
The Company’s Internet address is www.washpostco.com. The Company makes available free of charge through its
website its annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments
to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably
practicable after such documents are electronically filed with the Securities and Exchange Commission. In addition, the
Company’s Certificate of Incorporation, its Corporate Governance Guidelines, the Charters of the Audit and
Compensation Committees of the Company’s Board of Directors, and the codes of conduct adopted by the Company
and referred to in Item 10 of this Annual Report on Form 10-K are each available on the Company’s website; printed
copies of such documents may be obtained by any stockholder upon written request to the Secretary of the Company at
1150 15th Street, N.W., Washington, D.C. 20071.
Item 1A. Risk Factors.
The Company faces a number of significant risks and uncertainties in connection with its operations. The most
significant of these are described below. These risks and uncertainties may not be the only ones facing the Company.
Additional risks and uncertainties not presently known, or currently deemed immaterial, may adversely affect the
Company in the future. If any of the events or developments described below occurs, it could have a material adverse
effect on the Company’s business, financial condition or results of operations.
• Reductions in the Amount of Funds Available to Students, including under the Federal Title IV Programs, in Kaplan’s
Higher Education Schools Or Changes in the Terms on Which Such Funds Are Made Available
During the Company’s 2007 fiscal year, funds provided under the student financial aid programs created under Title IV
of the Federal Higher Education Act accounted for approximately $745 million of the net revenues of the schools in
Kaplan’s Higher Education Schools. Any legislative, regulatory or other development that has the effect of materially
reducing the amount of Title IV financial assistance or other funds available to the students of those schools would have
a significant adverse effect on Kaplan’s operating results. In addition, any development that has the effect of making the
terms on which Title IV financial assistance or other funds are available to students of those schools materially less
attractive could have an adverse effect on Kaplan’s operating results.
• Tighter Lending Standards Imposed by Private Lenders
Students obtain financing from a number of sources. In addition to funds available under the Federal Title IV programs in
the form of federal loans and grants, students often obtain loans from private lenders. In response to a general
tightening in the credit markets, lenders have announced that they will apply more stringent lending standards for loans
to students. A significant reduction in the ability of students to obtain loans from private lenders could lead to reduced
enrollment in Kaplan schools. Kaplan Higher Education estimates that approximately 9%ofitsrevenuecomesfrom
students who obtain loans from private lenders.
• Failure to Maintain Institutional Accreditation Could Lead to Loss of Ability to Participate in Title IV Programs
Each of Kaplan Higher Education’s ground campuses and online university are institutionally accredited by one or
another of a number of national and regional accreditors recognized by the U.S. Department of Education.
Accreditation by an accrediting agency recognized by the U.S. Department of Education is required for an institution
to become and remain eligible to participate in Title IV programs. The loss of accreditation would, among other things,
render Kaplan schools and programs ineligible to participate in Title IV programs and would have a material adverse
effect on its business.
• Failure to Maintain State Authorizations Could Cause Loss of Ability to Operate and to Participate in Title IV
Programs in Some States
Kaplan Higher Education ground campuses and online university are authorized to operate and to grant degrees,
certificates or diplomas by the applicable state agency of each state where such authorization is required. Such state
authorization is required for each campus located in the state or, in the case of states that require it, for Kaplan
University online to offer post-secondary education. In either case, state authorization is required for students at
28 THE WASHINGTON POST COMPANY