Washington Post 2015 Annual Report Download - page 16

Download and view the complete annual report

Please find page 16 of the 2015 Washington Post annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

PART I
Item 1. Business.
Graham Holdings Company (the Company) is primarily 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 television broadcasting
(through the ownership and operation of five television broadcast stations), plus Slate and Foreign Policy
magazines. The Company’s Other Businesses segment includes two home health and hospice providers, three
industrial companies and Social Code LLC, a marketing solutions provider. The Company divested its cable
division on July 1, 2015, upon completion of the spin-off of Cable One, Inc. (Cable ONE).
Financial information concerning 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. 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 2015, 2014 and 2013, these operations accounted for approximately 26%,
26% and 25%, respectively, of the Company’s consolidated revenues, and the identifiable assets attributable to
non-U.S. operations represented approximately 18% and 14% of the Company’s consolidated assets at
December 31, 2015 and 2014, 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.
The following table presents revenues for each of Kaplan’s segments:
Year Ended December 31
(in thousands) 2015 2014 2013
Kaplan Higher Education ..................................... $ 849,625 $1,010,058 $1,080,908
Kaplan Test Preparation ...................................... 301,607 304,662 293,201
Kaplan International ......................................... 770,273 840,915 783,588
Kaplan Corporate and Intersegment Eliminations .................. 6,016 4,782 6,037
Total Kaplan Revenue .................................... $1,927,521 $2,160,417 $2,163,734
Kaplan Higher Education
Kaplan Higher Education (KHE) provides a wide array of certificate, diploma and degree programs designed to
meet the needs of students seeking to advance their education and career goals.
In 2015, Kaplan’s U.S.-based KHE division included the following businesses: Kaplan University and KHE
Campuses. On September 3, 2015, Kaplan sold substantially all of the assets of its KHE Campuses business to
Education Corporation of America (ECA), consisting of 38 nationally accredited ground campuses and certain
related assets, in exchange for a preferred equity interest in ECA. Kaplan’s Bauder College campus in Atlanta
1 GRAHAM HOLDINGS COMPANY