Washington Post 2006 Annual Report Download - page 42

‚ Changes in the Cost or Availability of Raw Materials, Particularly Newsprint
The Company's newspaper publishing businesses collectively spend more than $100 million a year on newsprint. Thus
material increases in the cost of newsprint or significant disruptions in the supply of newsprint could negatively affect the
operating results of the Company's newspaper publishing businesses.
Item 1B. Unresolved Staff Comments.
Not applicable.
Item 2. Properties.
Directly or through subsidiaries Kaplan owns a total of 12 properties: a 26,000-square-foot six-story building located at
131 West 56th Street in New York City, which serves as an educational center primarily for international students; a
2,300-square-foot office condominium in Chapel Hill, North Carolina which it utilizes for its Test Prep business; a
15,000-square-foot three-story building in Berkeley, California used for its Test Prep and English Language Training
businesses; a 39,000-square-foot four-story brick building and a 19,000-square-foot two-story brick building in Lincoln,
Nebraska each of which is used by Hamilton College; a 25,000-square-foot one-story building in Omaha, Nebraska also
used by Hamilton College; a 131,000-square-foot five-story brick building in Manchester, New Hampshire used by
Hesser College; an 18,000-square-foot one-story brick building in Dayton, Ohio used by the Ohio Institute of Photography
and Technology; a 25,000-square-foot building in Hammond, Indiana used by Sawyer College; a 45,000-square-foot
three-story brick building in Houston, Texas used by the Texas School of Business; and a 35,000-square-foot building in
London, England and a 5,000-square-foot building in Oxfordshire, England, each of which is used by Holborn College.
Kaplan University's corporate offices together with call-center and employee-training facilities are located in a leased
97,000-square-foot building in Ft. Lauderdale, Florida. In addition, a lease has been entered into for an additional
97,000-square-foot building that is currently under construction on an adjacent lot; that building will house a Kaplan
University datacenter as well as additional training and call-center facilities. Both of those leases will expire in 2017.
Kaplan's distribution facilities for most of its domestic publications are located in a 291,000-square-foot warehouse in
Aurora, Illinois, under a lease expiring in 2017. Kaplan's headquarters offices are located at 888 7th Avenue in New
York City, where Kaplan rents space on three floors under a lease which expires in 2017. Overseas, Dublin Business
School's facilities in Dublin, Ireland are located in five buildings aggregating approximately 63,000 square feet of space
which have been rented under leases expiring between 2008 and 2028. FTC Kaplan Limited's two largest leaseholds are
office and instructional space in London of 21,000 square feet and 33,000 square feet which are being occupied under
leases that expire in 2007 (and is expected to be renewed) and 2019, respectively. Kidum has over 40 locations
throughout Israel, all of which are occupied under leases that expire between 2007 and 2010. All other Kaplan facilities in
the United States and overseas (including administrative offices and instructional locations) also occupy leased premises.
WP Company owns the principal offices of The Washington Post in downtown Washington, D.C., including both a seven-
story building in use since 1950 and a connected nine-story office building on contiguous property completed in 1972 in
which the Company's principal executive offices are located. WP Company also owns and occupies a small office building
on L Street which is connected to The Post 's office building. Additionally, WP Company owns land on the corner of
15th and L Streets, N.W., in Washington, D.C., adjacent to The Post 's office building. This land is leased on a long-term
basis to the owner of a multi-story office building that was constructed on the site in 1982. WP Company rents one floor in
this building which it has subleased to a third party.
WP Company owns a printing plant in Fairfax County, Virginia which was built in 1980 and expanded in 1998. That
facility is located on 19 acres of land owned by WP Company. WP Company also owns a printing plant and distribution
facility in Prince George's County, Maryland, which was built in 1998 on a 17-acre tract of land owned by WP Company.
The Daily Herald Company owns its plant and office building in Everett, Washington; it also owns two warehouses
adjacent to its plant and a small office building in Lynnwood, Washington.
Early in 2007 Post-Newsweek Media, Inc. completed the construction of a two-story combination office building and
printing plant on a seven-acre plot in Laurel, Maryland. The two-story brick building in Gaithersburg, Maryland that served
as Post-Newsweek Media's headquarters and as headquarters of The Gazette Newspapers was sold in July 2006 but
Post-Newsweek Media retained the right to occupy a portion of that building until December 2007. Post-Newsweek
Media also owns another two-story brick building in Gaithersburg and a one-story brick building in Waldorf, Maryland that
have housed its Montgomery County and Charles County commercial printing operations, respectively. During the first
quarter of 2007, commercial printing operations at both locations will be discontinued and those operations will be
consolidated at the Laurel facility. The Gaithersburg building will then be used to provide office space for many of the
26 THE WASHINGTON POST COMPANY