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PART I
Item 1. Business.
Graham Holdings Company (the Company) is a diversified education and media 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 comprise the ownership and operation of cable systems, television broadcasting (through
the ownership and operation of six television broadcast stations), Slate and Foreign Policy magazines.
In the fourth quarter of 2013, the Company completed the sale of its newspaper publishing businesses, including The
Washington Post (the Post) and its related website, to Nash Holdings LLC (the Buyer). The following subsidiaries were
divested in the transaction: WP Company LLC, Express Publications Company, LLC, El Tiempo Latino LLC, Post–
Newsweek Media, LLC, Greater Washington Publishing, LLC and Robinson Terminal Warehouse LLC. Following the
completion of the sale, the Company changed its name to Graham Holdings Company.
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 past three fiscal years is contained in Note 19 to
the Company’s Consolidated Financial Statements appearing elsewhere in this Annual Report on Form 10-K, as required
by Item 101(b) and 101(d) of Regulation S-K. Revenues for each segment are shown in Note 19 gross of intersegment
sales. Consolidated revenues are reported net of intersegment sales, which did not exceed 0.1% of consolidated
operating revenues.
The Company’s operations in geographic areas outside the U.S. consist primarily of Kaplan’s non-U.S. operations. During
the fiscal years 2013, 2012 and 2011, these operations accounted for approximately 19%, 19% and 17%, respectively,
of the Company’s consolidated revenues, and the identifiable assets attributable to non-U.S. operations represented
approximately 11% and 13% of the Company’s consolidated assets at December 31, 2013, and 2012, respectively.
Education
Kaplan, Inc., a subsidiary of the Company, provides an extensive range of education and related services worldwide for
students and professionals. Kaplan conducts its operations through three segments: Kaplan Higher Education, Kaplan
Test Preparation and Kaplan International. In addition, the results of the Kaplan Corporate segment include investment
activities, identifying and investing in high-growth-potential education technology companies, as well as Colloquy, which
enables its university partners to develop online educational programs by providing an array of research, marketing and
design services.
The following table presents revenues for each of Kaplan’s segments:
Year Ended December 31
(in thousands) 2013 2012 2011
Kaplan Higher Education .................... $1,080,908 $1,149,407 $1,399,583
Kaplan Test Preparation ..................... 293,201 284,252 303,093
Kaplan International ........................ 797,362 753,790 690,226
Kaplan Corporate and Intersegment Eliminations . . . 6,037 9,047 11,557
Total Kaplan Revenue ..................... $2,177,508 $2,196,496 $2,404,459
Kaplan Higher Education
Kaplan Higher Education (KHE) provides a wide array of certificate, diploma and degree programs—on campus and
online—designed to meet the needs of students seeking to advance their education and career goals.
In 2013, Kaplan’s U.S.-based KHE division included the following businesses: Kaplan University and KHE Campuses.
Each of these businesses is described briefly below.
Kaplan University. Kaplan University specializes in online education, is accredited by the Higher Learning Commission
of the North Central Association of Colleges and Schools and holds other programmatic accreditations. Most of Kaplan
University’s programs are offered online, while some are offered in a traditional classroom format at 11 campuses in
Iowa, Maine, Maryland and Nebraska, and four Kaplan University Learning Centers in four states. Kaplan University also
includes Concord Law School, a fully online law school. At year-end 2013, Kaplan University had approximately
36,500 students enrolled in online programs and approximately 6,400 students enrolled in its classroom-based
programs.
Also residing within Kaplan University is the School of Professional and Continuing Education (PACE). PACE offers a wide
range of education solutions to assist professionals in advancing their careers by obtaining professional licenses,
2013 FORM 10-K 1