Washington Post 2014 Annual Report Download - page 48

a new student residential building in Nottingham, U.K., that was completed in 2014. Kaplan has further entered into a
lease agreement for a residential college to be constructed in Bournemouth, England, which will comprise approximately
175,000 square feet. In Australia, Carrick leases two locations in Melbourne, with an aggregate of approximately
87,623 square feet; one location in Sydney, of 13,024 square feet; and one location in Brisbane, of 39,000 square
feet. These leases expire at various times, from 2016 through 2021. Bradford College, in Adelaide, Australia, leases
three locations, with an aggregate of 38,890 square feet. These leases expire in 2016 and 2020. All other Kaplan
facilities in the U.S. and overseas (including administrative offices and instructional locations) occupy leased premises that
are for less space than those listed above.
The headquarters offices of Cable ONE are located in a six-story office building in Phoenix, AZ, that was purchased
by Cable ONE in 2012. Cable ONE also utilizes a three-story building in Phoenix purchased in 1998. Cable ONE
purchased an adjoining two-story office building in 2005; that building is currently unused. The majority of the offices and
head-end facilities of the division’s individual cable systems are located in buildings owned by Cable ONE. Most of the
tower sites used by the division are leased. In addition, the division houses call-center operations in 40,800 square feet
of rented space in Phoenix under a lease that will expire in 2015.
The Daily Herald Company, a non-operating subsidiary of the Company, sold properties in Everett, WA, in a stock
transaction in April 2014. These properties included a plant, two warehouses, an office building and a small rental
building adjacent to the plant.
The offices of the Company’s broadcasting operations are located in leased space in Chicago, IL. The operations of
each of the Company’s television stations are owned by subsidiaries of the Company, as are the related tower sites
(except in Houston, Orlando and Jacksonville, where the tower sites are 50% owned).
Celtic’s headquarters office is located in leased space in Mars, PA. This lease expires in 2017. In addition to its
headquarters, Celtic leases 20 small office spaces in its various service territories: Carlisle, PA; Mechanicsburg, PA;
Williamsport, PA; Perryopolis, PA; Harrisburg, PA; Kingston, PA; New Castle, PA; Rockville, MD; Owings Mills, MD;
Shiloh, IL; Alton, IL; Marion, IL; Mt. Carmel, IL; Bridgeton, MO; and Fenton, MO. Celtic also leases space for a hospice
inpatient unit in Wilkes-Barre, PA. Celtic also owns a total of five properties located in Carlinville, IL; Centralia, IL;
Murphysboro, IL; and Benton, IL.
Residential’s Michigan headquarters offices are located in leased space in Troy, MI. Residential also leases office space
in Grand Rapids, MI. In Illinois, Residential’s main office is located in Downer’s Grove, IL. It also leases office space at
Edward Hospital in Naperville, IL.
Forney has 20,000 square feet of corporate office space in Addison, TX. That lease began in April 2014 and will expire
in 2024. Forney’s manufacturing facility is located in Monterrey, Mexico, in a building that contains 78,500 square feet
of office and manufacturing space under a lease that will expire in 2017. Forney also leases sales offices in Shanghai,
Beijing and Singapore; the combined office space is less than 3,000 square feet, and the leases are renewable
annually.
Joyce/Dayton owns three properties: its corporate headquarters in Kettering, OH, and manufacturing facilities in Portland,
IN, and Clayton, OH. It also leases a manufacturing facility in West Hartford, CT.
The Slate Group leases office space in New York, NY, and Washington, DC.
SocialCode leases office space in Washington, DC; New York, NY; San Francisco, CA; Los Angeles, CA; and
Chicago, IL.
Item 3. Legal Proceedings.
On February 6, 2008, a purported class-action lawsuit was filed in the U.S. District Court for the Central District of
California by purchasers of BAR/BRI bar review courses, from July 2006 onward, alleging antitrust claims against Kaplan
and West Publishing Corporation, BAR/BRI’s former owner. On April 10, 2008, the court granted defendants’ motion to
dismiss, a decision that was reversed by the Ninth Circuit Court of Appeals on November 7, 2011. The Ninth Circuit
also referred the matter to a mediator for the purpose of exploring a settlement. In the fourth quarter of 2012, the parties
reached a comprehensive agreement to settle the matter. The settlement was approved by the District Court in September
2013 and will be administered following the resolution of appeals relating to attorney fees.
On or about January 17, 2008, an Assistant U.S. Attorney in the Civil Division of the U.S. Attorney’s Office for the
Eastern District of Pennsylvania contacted KHE’s Broomall campus and made inquiries about the Surgical Technology
program, including the program’s eligibility for Title IV U.S. Federal financial aid, the program’s student loan defaults,
licensing and accreditation. Kaplan responded to the information requests and fully cooperated with the inquiry. The ED
also conducted a program review at the Broomall campus, and Kaplan likewise cooperated with the program review.
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