Company: GHC
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0000104889-25-000022
Chunk: 144

Company: Graham Holdings Co
Filing Date: 2025-02-26
Form: 10-K
Item: Item 1
Chunk 144
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 University Global, Creighton University, Wake Forest University, Lynn University and UMass Global. Through its Supplemental Education segment, KNA sells exam preparation, professional licensure, certification, and continuing education courses directly to students and professionals, and indirectly through agreements with institutions and corporations or governmental entities servicing public schools and institutions. This segment also develops and delivers online courses for high school students to explore careers and future study (Prelum). The Supplemental Education segment also provides career and education advisory services to corporations and state governments and their employees and, through a subsidiary, creates questions for the state bar exam for the state of California through an agreement with the State Bar of California.

Kaplan Higher Education 

Transition and Support Operations for Purdue University Global.  KNA provides operations support functions to Purdue University Global (Purdue Global), which operates largely online as an Indiana public university affiliated with Purdue University. The operations support activities that KNA provides to Purdue Global include technology support, helpdesk functions, admissions support, financial aid processing, back-office business functions, certain test preparation and other non-academic functions. KNA also provides similar functions for online programs of other university partners such as Wake Forest University, University of Massachusetts, and Creighton University.

The support functions provided to Purdue Global are provided under a Transition and Operations Support Agreement (TOSA), which was entered into in March 2018 at the time Kaplan transferred the institutional assets and academic operations of Kaplan University (its postsecondary education operations) to Purdue Global. The TOSA was amended in July 2019. Pursuant to the TOSA, KNA is not entitled to receive any reimbursement of costs incurred in providing support functions, or any fee, unless and until Purdue Global has first covered all of its academic costs (subject to a cap). If Purdue Global achieves cost efficiencies in its operations, Purdue Global may be entitled to an additional payment equal to 20% of such cost efficiencies (Purdue Efficiency Payment). In addition, during each of Purdue Global’s first five years until 2023, prior to any payment to KNA, Purdue Global was entitled to a priority payment of $10 million per year beyond costs (Purdue Priority Payment). Upon closing of the transaction, Kaplan paid to Purdue Global an advance in the amount of $20 million, representing, and in lieu of, a Purdue Priority Payment for each of the fiscal years ending June 30, 2019, and June 30, 2020.