Washington Post 2015 Annual Report Download - page 46

• Potential Liability for Intellectual Property Infringement Could Adversely Affect the Company’s
Businesses
The Company periodically receives claims from third parties alleging that the Company’s businesses infringe on
the intellectual property rights of others. It is likely that the Company will continue to be subject to similar
claims, particularly as they relate to its media business. Other parts of the Company’s business could also be
subject to such claims. Addressing intellectual product claims is a time-consuming and expensive endeavor,
regardless of the merits of the claims. In order to resolve such a claim, the Company could determine the need to
change its method of doing business, enter into a licensing agreement or incur substantial monetary liability. It is
also possible that one of the Company’s businesses could be enjoined from using the intellectual property at
issue, causing it to significantly alter its operations. Although the Company cannot predict the impact at this time,
if any such claim is successful, the outcome would likely affect the business utilizing the intellectual property at
issue and could have a material adverse effect on that business’s operating results or prospects.
• Failure to Comply With Privacy Laws or Regulations Could Have an Adverse Effect on the
Company’s Business
Various federal, state and international laws and regulations govern the collection, use, retention, sharing and
security of consumer data. This area of the law is evolving, and interpretations of applicable laws and regulations
differ. Legislative activity in the privacy area may result in new laws that are relevant to the Company’s
operations, for example, use of consumer data for marketing or advertising. Claims of failure to comply with the
Company’s privacy policies or applicable laws or regulations could form the basis of governmental or private-
party actions against the Company. Such claims and actions could cause damage to the Company’s reputation
and could have an adverse effect on the Company’s business.
• Extensive Regulation of the Health Care Industry Could Adversely Affect the Company’s Health
Care Businesses and Results of Operations
The home health and hospice industries are subject to extensive federal, state and local laws, with regulations
affecting matters including licensure and certification, quality of services, qualifications of personnel,
confidentiality and security of medical records, relationships with physicians and other referral sources, operating
policies and procedures, and billing and coding practices. These laws and regulations change frequently, and the
manner in which they will be interpreted is subject to change in ways that may not be predicted. Reimbursement
for services by third-party payers, including Medicare, Medicaid and private health insurance providers,
continues to decline, while authorization and compliance requirements continue to add to the cost of providing
those services. Managed-care organizations, hospitals, physician practices and other third-party payers continue
to consolidate in response to the evolving regulatory environment, thereby enhancing their ability to influence the
delivery of health care services and decreasing the number of organizations serving patients. This consolidation
could adversely impact Celtic’s and Residential’s businesses if they are unable to maintain their ability to
participate in established networks. Changes in existing laws or regulations, in their interpretation and
enforcement, and the enactment of new laws or regulations could have a material adverse effect on the
Company’s health care businesses’ operations.
• System Disruptions and Security Threats to the Company’s Technology Infrastructure Could Have a
Material Adverse Effect on Its Businesses
Kaplan’s reputation and ability to attract and retain students is highly dependent on the performance and
reliability of its information technology platforms with respect to its online and campus-based education
offerings. Kaplan’s delivery of these programs could be negatively affected due to events beyond its control,
including natural disasters and network and telecommunications failures. Any such computer system error or
failure could result in a significant outage that materially disrupts Kaplan’s online and on-ground operations and
could have a material adverse effect on Kaplan’s business.
31 GRAHAM HOLDINGS COMPANY