Company: GHC
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0000104889-25-000022
Chunk: 15

Company: Graham Holdings Co
Filing Date: 2025-02-26
Form: 10-K
Item: Item 16
Chunk 15
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 The increase in 2024 is due largely to growth at Pathways, Australia, UK Professional and Singapore. Kaplan International reported operating income of $101.7 million in 2024, compared to $87.5 million in 2023. The increase is due largely to improved results at Australia, UK Professional, Pathways and Singapore, partially offset by a decline at Languages and increased incentive compensation costs. In the fourth quarter of 2024, revenue and operating results were down at Australia due to lower new student enrollments at Kaplan Business School resulting from changes in student visa policies. 

Higher Education includes the results of Kaplan as a service provider to higher education institutions. Higher Education revenue decreased 1% in 2024 due to reduced reimbursable expenses from Purdue Global, partially offset by an increase in the fees from Purdue Global and growth in other higher education programs. Enrollments at Purdue Global, the largest institutional client, increased 5% for 2024 compared with the end of 2023. In 2024 and 2023, Kaplan recorded a portion of the fee with Purdue Global. The Company will continue to assess the fee it records from Purdue Global on a quarterly basis to make a determination as to whether to record all or part of the fee in the future and whether to make adjustments to fee amounts recognized in earlier periods. During 2024 and 2023, Kaplan recorded $54.5 million and $50.3 million, respectively, in fees from Purdue Global in its Higher Education operating results. Higher Education results improved in 2024 due to an increase in the Purdue Global fee recorded, partially offset by an increase in higher education development costs.

Supplemental Education includes Kaplan’s standardized test preparation programs and domestic professional and other continuing education businesses. Supplemental Education revenue declined slightly in 2024, driven mostly by softness in Medical Licensure test preparation, wealth management and Real Estate, offset in part by growth in Insurance, CFA, Legal assessment services, Architecture and Engineering and MCAT test preparation. Operating results improved in 2024 due largely to cost reductions from lower headcount, partially offset by increased employee healthcare and pension expense.

In 2024, Kaplan offered SIPs to certain employees, primarily at Supplemental Education; $2.8 million in related non-operating pension expense was recorded.

Kaplan corporate and other represents unallocated expenses of Kaplan, Inc.’s corporate office, other minor businesses and certain shared activities. Overall, Kaplan corporate and other expenses increased in