Washington Post 2010 Annual Report Download - page 52

part of advertisers. To the extent that advertisers shift advertising expenditures to other media outlets, the profitability of the
Company’s publishing and television broadcasting businesses will suffer.
• Increased Competition Resulting From Technological Innovations in News, Information and Video Programming
Distribution Systems
The development of direct broadcast satellite systems has significantly increased the competition faced by the Company’s
cable television systems. In addition, the continuing growth and technological expansion of Internet-based services
has increased competitive pressure on the Company’s media businesses. The development and deployment of new
technologies has the potential to negatively and dramatically affect the Company’s businesses in ways that cannot now
be reliably predicted and that may have a material adverse effect on the Company’s operating results.
• Changes in the Nature and Extent of Government Regulations in the Case of Television Broadcasting, Cable Television
and VoIP Services
The Company’s television broadcasting and cable television businesses operate in highly regulated environments. The
Company’s VoIP services business also is subject to a growing degree of regulation. Complying with applicable regula-
tions has significantly increased, and may continue to increase, the costs and reduced the revenues of these 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 the Company 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 10 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 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; a 34,000-square-foot building in London, U.K., which is used by Holborn College; a
25,000-square-foot one-story building in Omaha, NE, and an 18,000-square-foot building in Dayton, OH, which are
both currently vacant and being marketed for sale. 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 support 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. In December 2010, Kaplan, Inc. and its New York-based
36 THE WASHINGTON POST COMPANY