Washington Post 2009 Annual Report Download - page 42

businesses. Changes in regulations have the potential to further negatively impact those businesses, not only by increasing
compliance costs and reducing revenues through restrictions on certain types of advertising, limitations on pricing flexibility
or other means, but also by possibly creating more favorable regulatory environments for the providers of competing
services. More generally, all of the Company’s businesses could have their profitability or their competitive positions
adversely affected by significant changes in applicable regulations.
• Potential Liability for Patent Infringement in the Cable Industry
Providers of services similar to those offered by Cable ONE have been the target of patent infringement claims from time
to time relating to such matters as cable system architecture, electronic program guides, cable modem technology and
VoIP services. Although we cannot predict the impact at this time, if any such claims are successful, the outcome would
likely affect Cable ONE and could have a material adverse effect on its operating results.
• Changes in the Cost or Availability of Raw Materials, Particularly Newsprint
The Company’s newspaper publishing businesses collectively spend significant amounts each year on newsprint.
Increases in the cost of newsprint or significant disruptions in the supply of newsprint could have a material adverse
effect on 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 11 properties: a 30,000-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
redeveloped 47,410-square-foot four-story brick building in Lincoln, NE, which is used by Kaplan University; a 4,000-
square-foot office condominium in Chapel Hill, NC, which it utilizes for its Test Prep business; a 15,000-square-foot three-
story building in Berkeley, CA, used for its Test Prep and English-language businesses; a 25,000-square-foot one-story
building in Omaha, NE, and an 18,000-square-foot building in Dayton, OH, which are currently vacant; a 131,000-
square-foot five-story brick building in Manchester, NH, used by Hesser College; a 25,000-square-foot building in
Hammond, IN, used by Kaplan Career College (formerly Sawyer College); a 45,000-square-foot three-story brick building
in Houston, TX, used by the Texas School of Business; and a 34,000-square-foot building in London, U.K., and a 2,200-
square-foot building in Oxfordshire, U.K., each of which is used by Holborn College. Kaplan, Inc. and Kaplan University
maintain corporate offices, together with a data center, call center and employee-training facilities, in two 97,000-square-
foot leased buildings located on adjacent lots in Fort Lauderdale, FL. Both of those leases will expire in 2017. In December
2009, Kaplan Higher Education entered into an agreement to lease 76,515 square feet of corporate office space to house
its corporate headquarters in Chicago, IL. This lease will expire in 2022. In December 2008, Kaplan University entered
into an agreement to lease a two-story, 124,500-square-foot building in Orlando, FL, to house an additional call center.
In June 2009, Kaplan, Inc. and Kaplan Higher Education began sharing corporate office space in a 78,000-square-foot
office building in Alpharetta, GA, under a lease that expires in 2019. In October 2009, Kaplan University entered into an
agreement to lease 88,845 square feet of corporate office space in Plantation, FL. This lease expires in 2021 and includes
an option to lease an additional 29,898 square feet. Kaplan’s distribution facilities for most of its domestic publications
are located in a 291,000-square-foot warehouse in Aurora, IL, under a lease expiring in 2017. Kaplan, Inc. maintains
corporate offices at 888 7th Avenue in New York City, where Kaplan rents space on three floors under a lease that will
expire in 2017. Overseas, DBS’s facilities in Dublin, Ireland, are located in nine buildings aggregating approximately
79,000 square feet of space that have been rented under leases expiring between 2010 and 2029. Kaplan Publishing
has an office and distribution warehouse in Wokingham, Berkshire, U.K., of 25,000 square feet, under a lease expiring in
2016. Kaplan Financial’s largest leaseholds are office and instructional space in London of 33,000 square feet (which will
expire in 2033), 21,000 square feet (which will expire in 2015) and 28,000 square feet (comprising six separate leases,
which will expire in 2015); office and instructional space in Birmingham of 23,500 square feet (comprising two separate
leases, which will expire in 2017); office and instructional space in Manchester of 26,000 square feet (comprising of five
separate leases, which will expire in 2027); and office and instructional space in Wales of 34,000 square feet (on an
open-ended lease with termination on 12 months’ notice). Kidum has 19 locations throughout Israel, all of which are
occupied under leases expiring between 2010 and 2015. All other Kaplan facilities in the U.S. and overseas (including
administrative offices and instructional locations) occupy leased premises.
28 THE WASHINGTON POST COMPANY