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Document And Entity Information - shares	9 Months Ended
Document And Entity Information - shares	May 31, 2014	Jun. 30, 2014
Document And Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	May 31, 2014
Amendment Flag	false
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2014
Entity Registrant Name	FRANKLIN COVEY CO
Entity Central Index Key	0000886206
Current Fiscal Year End Date	--08-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		16,858,310

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	May 31, 2014	Aug. 31, 2013
Current assets:
Cash and cash equivalents	$ 5,337	$ 12,291
Accounts receivable, less allowance for doubtful accounts of $707 and $982	45,145	52,684
Receivable from related party	581	3,305
Inventories	5,347	4,321
Income taxes receivable	3,183
Deferred income tax assets	4,670	4,685
Prepaid expenses and other current assets	4,766	3,822
Total current assets	69,029	81,108
Property and equipment, net	17,039	17,180
Intangible assets, net	58,564	60,654
Goodwill	19,641	16,135
Long-term receivable from related party	5,055	4,453
Other long-term assets	14,234	9,875
Total assets	183,562	189,405
Current liabilities:
Current portion of financing obligation	1,257	1,139
Line of credit	2,527
Accounts payable	6,980	9,294
Income taxes payable		1,365
Accrued liabilities	20,817	31,140
Total current liabilities	31,581	42,938
Financing obligation, less current portion	26,420	27,376
Other liabilities	4,695	6,106
Deferred income tax liabilities	8,725	6,479
Total liabilities	71,421	82,899
Shareholders' equity:
Common stock, $.05 par value; 40,000 shares authorized, 27,056 shares issued	1,353	1,353
Additional paid-in capital	205,888	210,227
Retained earnings	46,041	40,429
Accumulated other comprehensive income	1,647	1,686
Treasury stock at cost, 10,370 shares and 10,759 shares	(142,788)	(147,189)
Total shareholders' equity	112,141	106,506
Total liabilities and shareholders' equity	$ 183,562	$ 189,405

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	May 31, 2014	Aug. 31, 2013
Condensed Consolidated Balance Sheets [Abstract]
Allowance for doubtful accounts	$ 707	$ 982
Common stock, par value	$ 0.05	$ 0.05
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	27,056,000	27,056,000
Treasury stock, shares	10,370,000	10,759,000

Condensed Consolidated Income Statements And Statements Of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2014	Jun. 01, 2013	May 31, 2014	Jun. 01, 2013
Net sales:
Training and consulting services	$ 44,381	$ 42,378	$ 129,399	$ 121,185
Products	1,694	1,428	4,767	4,995
Leasing	1,056	1,053	2,889	3,170
Total net sales	47,131	44,859	137,055	129,350
Cost of sales:
Training and consulting services	15,811	14,281	42,260	39,809
Products	982	665	2,065	1,836
Leasing	454	478	1,405	1,428
Total cost of sales	17,247	15,424	45,730	43,073
Gross profit	29,884	29,435	91,325	86,277
Selling, general, and administrative	25,017	23,661	75,475	69,295
Depreciation	866	752	2,466	2,175
Amortization	983	960	2,961	2,201
Income from operations	3,018	4,062	10,423	12,606
Interest income	74	158	325	446
Interest expense	(557)	(578)	(1,676)	(1,766)
Discount on related party receivable	(141)	(135)	(424)	(418)
Other income, net		20		20
Income before income taxes	2,394	3,527	8,648	10,888
Provision for income taxes	(472)	(1,416)	(3,036)	(4,289)
Net income	$ 1,922	$ 2,111	$ 5,612	$ 6,599
Net income per share:
Basic	$ 0.11	$ 0.13	$ 0.34	$ 0.37
Diluted	$ 0.11	$ 0.13	$ 0.33	$ 0.36
Weighted average number of common shares:
Basic	16,754	16,330	16,678	17,680
Diluted	16,934	16,421	16,906	18,469
COMPREHENSIVE INCOME
Net income	$ 1,922	$ 2,111	$ 5,612	$ 6,599
Foreign currency translation adjustments, net of tax	13	(358)	(39)	(1,297)
Comprehensive income	$ 1,935	$ 1,753	$ 5,573	$ 5,302

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	May 31, 2014	Jun. 01, 2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 5,612	$ 6,599
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	5,417	4,381
Share-based compensation expense	2,860	1,933
Amortization of capitalized curriculum costs	1,930	1,447
Deferred income taxes	2,265	199
Reduction in estimated earn out liability	(936)
Other income		(20)
Changes in assets and liabilities:
Decrease in accounts receivable, net	7,088	447
Increase in inventories	(1,023)	(130)
Decrease (increase) in receivable from related party	2,122	(2)
Increase in prepaid expenses and other assets	(781)	(927)
Decrease in accounts payable and accrued liabilities	(10,244)	(5,387)
Decrease in income taxes payable	(4,551)	(108)
Decrease (increase) in other long-term liabilities	(463)	480
Net cash provided by operating activities	9,296	8,912
CASH FLOWS FROM INVESTING ACTIVITIES
Curriculum development costs	(6,403)	(1,620)
Purchases of property and equipment	(2,333)	(1,830)
Payment of contingent business acquisition costs	(3,456)	(2,235)
Acquisition of businesses	(2,711)	(1,125)
Net cash used for investing activities	(14,903)	(6,810)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from line of credit borrowings	26,706
Payments on line of credit borrowings	(24,179)
Principal payments on notes payable financing		(1,875)
Principal payments on financing obligation	(848)	(786)
Purchases of common stock for treasury	(3,363)	(1,445)
Proceeds from sales of common stock held in treasury	433	335
Payments for exercises of common stock warrants		(55)
Net cash used for financing activities	(1,251)	(3,826)
Effect of foreign currency exchange rates on cash and cash equivalents	(96)	(384)
Net decrease in cash and cash equivalents	(6,954)	(2,108)
Cash and cash equivalents at the beginning of the period	12,291	11,011
Cash and cash equivalents at the end of the period	5,337	8,903
Supplemental disclosure of cash flow information:
Cash paid for income taxes	5,769	2,719
Cash paid for interest	1,677	1,753
Non-cash investing and financing activities:
Purchases of property and equipment financed by accounts payable	$ 76	183
Acquisition of business financed by accrued liabilities		$ 3,075

Basis Of Presentation

9 Months Ended

May 31, 2014

Basis Of Presentation [Abstract]

Basis Of Presentation

NOTE 1 – BASIS OF PRESENTATION

Franklin Covey Co. (hereafter referred to as us, we, our, or the Company) is a global company focused on individual and organizational performance improvement. Our mission is to “enable greatness in people and organizations everywhere,” and our worldwide employees are organized to help individuals and organizations achieve sustained superior performance through changes in human behavior. Our expertise extends to seven crucial areas: Leadership, Execution, Productivity, Trust, Sales Performance, Customer Loyalty, and Educational Improvement. We believe that our clients are able to utilize our content to create cultures whose hallmarks are high-performing, collaborative individuals, led by effective, trust-building leaders who execute with excellence and deliver measurably improved results for all of their key stakeholders.

In the training and consulting marketplace, we believe there are four important characteristics that distinguish us from our competitors.

World Class Content – Our content is principle centered and based on natural laws of human behavior and effectiveness. Our content is designed to build new skillsets, establish new mindsets, and provide enabling toolsets.

Breadth and Scalability of Delivery Options – We have a wide range of content delivery options, including: on-site training, training led through certified facilitators, on-line learning, blended learning, intellectual property licenses, and organization-wide transformational processes, including consulting and coaching.

Global Capability – We operate four regional sales offices and a government services office in the United States; wholly-owned subsidiaries in Australia, Japan, the United Kingdom, and South Korea; and contract with licensee partners who deliver our curriculum and provide services in over 140 other countries and territories around the world.

Transformational Impact and Reach – We hold ourselves responsible for and measure ourselves by our clients’ achievement of transformational results.

We have some of the best-known offerings in the training industry, including a suite of individual-effectiveness and leadership-development training content based on the best-selling books, The 7 Habits of Highly Effective People, The Speed of Trust, and The 4 Disciplines of Execution, and proprietary content in the areas of Execution, Sales Performance, Productivity, Customer Loyalty, and Education. Our offerings are described in further detail at www.franklincovey.com.

The accompanying unaudited condensed consolidated financial statements reflect, in the opinion of management, all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position and results of operations of the Company as of the dates and for the periods indicated. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to Securities and Exchange Commission (SEC) rules and regulations. The information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in our annual report on Form 10-K for the fiscal year ended August 31, 2013.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

The Company utilizes a modified 52/53-week fiscal year that ends on August 31 of each year. Corresponding quarterly periods generally consist of 13-week periods that end on November 30, 2013, March 1, 2014, and May 31, 2014 during fiscal 2014. Under the modified 52/53-week fiscal year, the three quarters ended May 31, 2014 had one less business day than the three quarters ended June 1, 2013. Unless otherwise noted, references to fiscal years apply to the 12 months ended on August 31 of the specified year.

The results of operations for the quarter ended May 31, 2014 are not necessarily indicative of results expected for the entire fiscal year ending August 31, 2014, or for any future periods.

At May 31, 2014, the carrying value of our financial instruments approximated their fair values.

Inventories

9 Months Ended

May 31, 2014

Inventories [Abstract]

Inventories

NOTE 2 – INVENTORIES

Inventories are stated at the lower of cost or market, cost being determined using the first-in, first-out method, and were comprised of the following (in thousands).



		May 31,		August 31,
		2014		2013
Finished goods	$	5,313	$	4,253
Raw materials		34		68
	$	5,347	$	4,321

CoveyLink Acquisition Earn Out Payment	9 Months Ended
CoveyLink Acquisition Earn Out Payment	May 31, 2014
CoveyLink Acquisition Earn Out Payment [Abstract]
CoveyLink Acquisition Earn Out Payment	NOTE 3 – COVEYLINK ACQUISITION EARN OUT PAYMENT During March 2014 we paid $3.5 million to the former owners of CoveyLink Worldwide, LLC (CoveyLink) for the final contingent earn out payment. The annual contingent earn out payments were based on earnings growth over the specified measurement period and were classified as goodwill on our consolidated balance sheets when paid. The former owners of CoveyLink include the brother of one of our Named Executive Officers. For a reconciliation of our consolidated goodwill from August 31, 2013 through May 31, 2014 refer to the table included in Note 5 – Acquisition of Red Tree, Inc.

Share-Based Compensation

9 Months Ended

May 31, 2014

Share-Based Compensation [Abstract]

Share-Based Compensation

NOTE 4 – SHARE-BASED COMPENSATION

We utilize various share-based compensation plans as integral components of our overall compensation and associate retention strategy. The compensation cost of our share-based compensation plans is included in selling, general, and administrative expenses in the accompanying condensed consolidated income statements. The total cost of our share-based compensation plans was as follows for the periods presented (in thousands).



		Quarter Ended			Three Quarters Ended
		May 31,		June 1,		May 31,		June 1,
		2014		2013		2014		2013
Performance awards	$	318	$	360	$	2,326	$	1,061
Unvested share awards		75		100		258		284
Employee stock purchase plan		32		28		85		69
Management stock loan shares		-		-		-		497
Fully-vested share awards		191		-		191		22
	$	616	$	488	$	2,860	$	1,933

During the quarter and three quarters ended May 31, 2014, we issued approximately 9,000 shares and 563,000 shares of our common stock to employees and members of our board of directors from our various share-based compensation plans. The following is a description of recent developments in our share-based compensation plans.

Performance Awards

During the first quarter of fiscal 2014, the Organization and Compensation Committee of the Board of Directors (the Compensation Committee) granted new performance-based equity awards for our executive officers. A total of 89,418 shares may be awarded to the participants based on six individual vesting conditions that are divided into two performance measures, adjusted earnings before interest, taxes, depreciation, and amortization (Adjusted EBITDA) and increased sales of courses related to The 7 Habits of Highly Effective People (the 7 Habits). Three tranches of 20,864 shares will immediately vest to the participants when consolidated trailing four-quarter Adjusted EBITDA totals $37.0 million, $43.0 million, and $49.0 million. Another three tranches of 8,942 shares will immediately vest when trailing four-quarter sales of courses related to the 7 Habits increase $5.0 million, $10.0 million, and $12.5 million over the previous trailing four quarters. These performance awards have a maximum life of six years. Compensation expense is recognized as we determine it is probable that the shares will vest. Adjustments to compensation expense to reflect the timing of and the number of shares expected to be awarded will be made on a cumulative basis at the date of the adjustment.

On November 22, 2013, the Compensation Committee granted two of our employees performance-based awards for a total of 8,352 shares. These awards have the same vesting conditions as the fiscal 2013 common stock price performance award. For the participants to receive this award, the closing price of our common stock must average $22.00 per share over five days, which represents a market vesting condition. If the price of our common stock reaches this price within three years of the grant date, 100 percent of the award shares will vest. If the price of our common stock averages $22.00 per share between three and five years from the grant date, 50 percent of the shares will vest. No shares will vest after five years from the grant date. This grant was valued using a Monte Carlo simulation similar to previous tranches granted with these terms. Based on the valuation, this grant had a fair value of approximately $155,000 with a derived service period of 0.2 years and was fully amortized at March 1, 2014. Subsequent to May 31, 2014 our closing share price averaged $22.00 per share over five consecutive days and this award, plus the other shares granted in the fiscal 2013 common stock price award, vested to participants.

On April 16, 2014, the Compensation Committee granted a performance-based award to one of our employees. This award was based on the fiscal 2012 and fiscal 2013 common stock price award criteria and included 9,557 shares of common stock with a vesting price of $18.05 per share (2012 common stock price award vesting price) and 3,920 shares with a vesting price of $22.00 per share with the same terms as shares granted in November 2013 as described above. Based on these award elements, 9,557 shares were fully vested on the grant date and 3,920 shares had a market vesting condition that required a valuation similar to other similar award tranches. Based on our closing share price at the grant date, the fair value of the fully vested portion of the award was approximately $191,000 and was immediately expensed. Based on a Monte Carlo simulation consistent with other tranches of the Ring the Bell award, the remaining 3,920 shares had an estimated fair value of approximately $74,000 with a derived service period of 0.2 years. This award was fully amortized at May 31, 2014. Subsequent to May 31, 2014 our closing share price averaged $22.00 per share for five consecutive days and this award vested.

Compensation expense recognized during the quarter and three quarters ended May 31, 2014 for performance awards includes expense related to awards granted in previous periods for which the performance targets are probable of being achieved.

Unvested Share Awards

Our annual unvested share award granted to non-employee members of our Board of Directors is administered under the terms of the Franklin Covey Co. Second Amended and Restated 1992 Stock Incentive Plan, and is designed to provide our non-employee directors, who are not eligible to participate in our employee stock purchase plan, an opportunity to obtain an interest in the Company through the acquisition of shares of our common stock. The annual unvested award is generally granted in January (following the annual shareholders’ meeting) of each year. For the fiscal 2014 award, each eligible director received a whole-share grant equal to $50,000 with a one-year vesting period, which resulted in a total of 14,616 shares granted to members of the Board of Directors under this program. The fiscal 2013 grant of 30,672 shares vested in January 2014 and was awarded to members of our Board of Directors. At May 31, 2014, there was approximately $175,000 of unrecognized compensation expense associated with the fiscal 2014 Board of Director unvested share award.

Employee Stock Purchase Plan

We have an employee stock purchase plan (ESPP) that offers qualified employees the opportunity to purchase shares of our common stock at a price equal to 85 percent of the average fair market value of our common stock on the last trading day of the calendar month in each fiscal quarter. During the quarter and three quarters ended May 31, 2014, we issued 8,599 shares and 26,993 shares, respectively, to participants in the ESPP.

Stock Options

Our stock option activity during the three quarters ended May 31, 2014 consisted of the following:



			Weighted
			Avg. Exercise
	Number of		Price Per
	Stock Options		Share
Outstanding at August 31, 2013	675,000	$	11.25
Granted	-		-
Exercised	(43,750)		9.00
Forfeited	-		-

Outstanding at May 31, 2014	631,250	$	11.41

Options vested and exercisable at
May 31, 2014	631,250	$	11.41

The stock options exercised during fiscal 2014 were exercised on a net share basis during our first fiscal quarter and had an aggregate intrinsic value of $0.5 million.

Acquisition Of Red Tree, Inc.

9 Months Ended

May 31, 2014

Acquisition Of Red Tree, Inc. [Abstract]

Acquisition Of Red Tree, Inc.

NOTE 5 – ACQUISITION OF RED TREE, INC.

On April 10, 2014, we acquired the assets of Red Tree, Inc. (Red Tree), a company that provides training, consulting, and coaching designed to help organizations effectively manage and engage the “Millennial Generation” in their workforces. We determined that this acquisition met the definition of an acquisition of a business under the applicable accounting guidance. The purchase price totaled $0.5 million in cash, which was paid at the closing of the purchase agreement. During the calendar year ended December 31, 2013, Red Tree had revenues of $1.3 million (unaudited) and a net loss of $0.1 million (unaudited). The acquisition of Red Tree had an immaterial impact on our consolidated financial statements during the quarter ended May 31, 2014 and was determined to be “not significant” as defined by Regulation S-X.

The following table summarizes the preliminary estimated fair values of the assets acquired from Red Tree (in thousands):



Inventory	$	7
Intangible assets		405
Goodwill		50
Cash paid	$	462

Through the acquisition of Red Tree, we acquired customer lists and content that we believe will be synergistic with our existing offerings. Based on the preliminary purchase allocation, acquired intangible assets consisted of the following (in thousands):


Category of			Estimated Useful
Intangible Asset	Amount		Life

Tradename	$	31	5 years
Customer relationships		142	5 years
Content		232	5 years
	$	405

The former owners of Red Tree are related to one of our Named Executive Officers and are currently employed by us.

The final purchase price allocation is subject to further analysis of various items, including the fair value calculations related to identified intangible assets. To date, our acquisition costs have been insignificant and are included with our selling, general, and administrative expenses in this report. The goodwill generated from this transaction is primarily attributable to the methodologies and processes acquired, and the goodwill is expected to be deductible for income tax purposes. A reconciliation of our consolidated goodwill from August 31, 2013 through May 31, 2014 is as follows (in thousands):


		Goodwill Amount
Balance at August 31, 2013	$	16,135
Acquisition of Red Tree		50
Final CoveyLink earn out payment		3,456
Impairments		-
Balance at May 31, 2014	$	19,641

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

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+ Details

Income Taxes	9 Months Ended
Income Taxes	May 31, 2014
Income Taxes [Abstract]
Income Taxes	NOTE 6 – INCOME TAXES Our effective income tax rate for the quarter ended May 31, 2014 was approximately 20 percent, and our effective rate for the three quarters ended May 31, 2014 was approximately 35 percent. The decrease in our effective rate for the quarter ended May 31, 2014 was primarily due to the recognition of income tax benefits resulting from the resolution of uncertain tax positions as the applicable statute of limitations expired during the quarter. Our income tax rate for fiscal 2014 may be further reduced if we decide that it will be beneficial to amend certain prior years’ tax returns to claim the benefit of foreign tax credits instead of taking the applicable tax deductions. However, we will not have the information necessary to determine whether it would be more beneficial to amend these returns or to determine the fiscal 2014 benefit from our foreign tax credits until the fourth quarter. We paid $5.8 million in cash for income taxes during the three quarters ended May 31, 2014, primarily for payment on our income tax liabilities at August 31, 2013, and an unusually large estimated tax payment in a foreign jurisdiction resulting from a six-day change to their fiscal calendar in order to close their year on August 31. We believe that we will recover any amounts paid in excess of our tax liability when we file our income tax return in that jurisdiction later in 2014. Excluding this estimated tax payment in a foreign jurisdiction, we anticipate that our cash paid for income taxes during fiscal 2014 will be less than our income tax provision as we utilize foreign tax credit carryforwards and other deferred income tax assets. In addition, the vesting and issuance of share-based compensation awards during fiscal 2014 should significantly reduce our cash paid for income taxes during the remainder of fiscal 2014 and in fiscal 2015. After utilization of our existing foreign tax credit carryforwards (which do not consider the impact of any amended returns as discussed above), which we currently expect to be fully used by the end of fiscal 2016, we expect that our cash paid for income taxes will increase and approximate our income tax provision.

Earnings Per Share

9 Months Ended

May 31, 2014

Earnings Per Share [Abstract]

Earnings Per Share

NOTE 7 – EARNINGS PER SHARE

The following is a reconciliation from basic earnings per share (EPS) to diluted EPS. Prior to the collection of the management stock loans in the second quarter of fiscal 2013, the 3.3 million management stock loan common shares held in escrow were included in our basic EPS calculation during periods of net income and excluded in periods of net loss because they were determined to be participating securities and continued to have equivalent common stock dividend rights (in thousands, except per-share amounts).



	Quarter Ended				Three Quarters Ended
		May 31,		June 1,		May 31,		June 1,
		2014		2013		2014		2013
Numerator for basic and
diluted earnings per share:
Net income	$	1,922	$	2,111	$	5,612	$	6,599

Denominator for basic and
diluted earnings per share:
Basic weighted average shares
outstanding		16,754		16,330		16,678		17,680
Effect of dilutive securities:
Stock options and other
share-based awards		180		91		228		80
Common stock warrants		-		-		-		709
Diluted weighted average
shares outstanding		16,934		16,421		16,906		18,469

EPS Calculations:
Net income per share:
Basic	$	0.11	$	0.13	$	0.34	$	0.37
Diluted		0.11		0.13		0.33		0.36

At June 1, 2013, we had approximately 0.2 million stock options outstanding that were not included in the computation of diluted EPS because the options’ exercise prices were greater than the average market price of our common shares. Although these shares were not included in our calculation of diluted EPS, these stock options, and other dilutive securities, including performance share-based compensation instruments, may have a dilutive effect on our EPS calculation in future periods if the price of our common stock increases.

Segment Information

9 Months Ended

May 31, 2014

Segment Information [Abstract]

Segment Information

NOTE 8 – SEGMENT INFORMATION

Our sales are primarily comprised of training and consulting sales and related products. Based on the consistent nature of our services and products and the types of customers for these services, we function as a single operating segment. However, to improve comparability with previous periods, operating information for our U.S./Canada, international, and corporate services operations is presented below. Our U.S./Canada operations are responsible for the sale and delivery of our training and consulting services in the United States and Canada. Our international sales group includes the financial results of our directly owned foreign offices and royalty revenues from licensees. Our corporate services information includes leasing income and certain corporate operating expenses.

The Company’s chief operating decision maker is the Chief Executive Officer, and the primary measurement tool used in business unit performance analysis is Adjusted EBITDA, which may not be calculated as similarly titled amounts calculated by other companies. For segment reporting purposes, our consolidated Adjusted EBITDA can be calculated as our income from operations excluding share-based compensation, depreciation expense, amortization expense, and certain other charges such as adjustments for changes in the fair value of contingent earn out liabilities from previous business acquisitions.

In the normal course of business, we may make structural and cost allocation revisions to our enterprise information to reflect new reporting responsibilities within the organization. There were no significant organizational or structural changes during the quarter or three quarters ended May 31, 2014 that would affect the comparability of the enterprise information presented. We account for our enterprise information on the same basis as the accompanying condensed consolidated financial statements.

ENTERPRISE INFORMATION

(in thousands)



		Sales to
Quarter Ended		External				Adjusted
May 31, 2014		Customers		Gross Profit		EBITDA		Depreciation		Amortization

U.S./Canada	$	36,318	$	21,924	$	1,950	$	446	$	943
International		9,757		7,357		4,015		88		40
Total		46,075		29,281		5,965		534		983
Corporate and eliminations		1,056		603		(832)		332		-
Consolidated	$	47,131	$	29,884	$	5,133	$	866	$	983

Quarter Ended
June 1, 2013

U.S./Canada	$	35,198	$	21,958	$	3,651	$	320	$	957
International		8,608		6,901		3,801		79		3
Total		43,806		28,859		7,452		399		960
Corporate and eliminations		1,053		576		(1,190)		353		-
Consolidated	$	44,859	$	29,435	$	6,262	$	752	$	960

Three Quarters Ended
May 31, 2014

U.S./Canada	$	103,522	$	65,562	$	7,434	$	1,227	$	2,917
International		30,644		24,279		13,509		246		44
Total		134,166		89,841		20,943		1,473		2,961
Corporate and eliminations		2,889		1,484		(3,169)		993		-
Consolidated	$	137,055	$	91,325	$	17,774	$	2,466	$	2,961

Three Quarters Ended
June 1, 2013

U.S./Canada	$	94,803	$	59,367	$	8,135	$	886	$	2,193
International		31,377		25,166		14,155		244		8
Total		126,180		84,533		22,290		1,130		2,201
Corporate and eliminations		3,170		1,744		(3,375)		1,045		-
Consolidated	$	129,350	$	86,277	$	18,915	$	2,175	$	2,201

A reconciliation of our consolidated Adjusted EBITDA to consolidated income before income taxes is provided below (in thousands).



	Quarter Ended				Three Quarters Ended
		May 31,		June 1,		May 31,		June 1,
		2014		2013		2014		2013
Enterprise Adjusted EBITDA	$	5,965	$	7,452	$	20,943	$	22,290
Corporate expenses		(832)		(1,190)		(3,169)		(3,375)
Consolidated Adjusted EBITDA		5,133		6,262		17,774		18,915
Share-based compensation expense		(616)		(488)		(2,860)		(1,933)
Reduction of contingent earn out liability		350		-		936		-
Depreciation		(866)		(752)		(2,466)		(2,175)
Amortization		(983)		(960)		(2,961)		(2,201)
Income from operations		3,018		4,062		10,423		12,606
Interest income		74		158		325		446
Interest expense		(557)		(578)		(1,676)		(1,766)
Discount on related party receivable		(141)		(135)		(424)		(418)
Other income, net		-		20		-		20
Income before income taxes	$	2,394	$	3,527	$	8,648	$	10,888

We reassess the fair value of expected contingent consideration and the corresponding liability resulting from the fiscal 2013 acquisition of NinetyFive 5, LLC (Ninety Five 5) each period. The reduction of the liability for the quarter and three quarters ended May 31, 2014 totaled $0.4 million and $0.9 million and is reflected in selling, general, and administrative expenses on our consolidated income statements. However, the impact of these adjustments is not included in our consolidated Adjusted EBITDA

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599

+ Details

Investment In FC Organizational Products	9 Months Ended
Investment In FC Organizational Products	May 31, 2014
Investment In FC Organizational Products [Abstract]
Investment In FC Organizational Products	NOTE 9 – INVESTMENT IN FC ORGANIZATIONAL PRODUCTS We own a 19.5 percent interest in FC Organizational Products (FCOP), an entity that purchased substantially all of our consumer solution business unit assets in fiscal 2008 for the purpose of expanding the sales of planners and related organizational products under a comprehensive licensing agreement. During a previous period, we reconsidered whether FCOP was a variable interest entity as defined under FASC 810, and determined that FCOP was a variable interest entity. We further determined that we are not the primary beneficiary of FCOP because we do not have the ability to direct the activities that most significantly impact FCOP’s economic performance, which primarily consist of the day-to-day sale of planning products and related accessories, and we do not have an obligation to absorb losses or the right to receive benefits from FCOP that could potentially be significant. Our voting rights and management board representation approximate our ownership interest and we are unable to exercise control through voting interests or through other means. We are required to account for our investment in FCOP using the equity method of accounting. However, we have not recorded our share of FCOP’s losses in the accompanying condensed consolidated income statements because we have impaired and written off investment balances in previous periods, as defined within the applicable accounting guidance, in excess of our share of FCOP’s losses through May 31, 2014. Our primary exposure related to FCOP is from amounts owed to us by FCOP. We receive reimbursement from FCOP for certain operating costs and for working capital or other advances that we may make to FCOP. We are not contractually required to make advances to FCOP, but we believe that this additional financing will improve our ability to collect amounts owed to us, including amounts previously impaired and written off. The operations of FCOP are primarily financed by the sale of planning products and accessories in the normal course of business. At May 31, 2014 and August 31, 2013, we had $5.6 million and $7.8 million receivable from FCOP, which are classified as components of current and long-term assets in our condensed consolidated balance sheets based on expected payment dates. The long-term receivable has been discounted using a rate of 15 percent. During the first three quarters of fiscal 2014, we received $3.9 million in cash from FCOP for payment of receivables.

Inventories (Tables)

9 Months Ended

May 31, 2014

Inventories [Abstract]

Components Of Inventories



		May 31,		August 31,
		2014		2013
Finished goods	$	5,313	$	4,253
Raw materials		34		68
	$	5,347	$	4,321

Share-Based Compensation (Tables)

9 Months Ended

May 31, 2014

Share-Based Compensation [Abstract]

Total Cost Of Share-Based Compensation



		Quarter Ended			Three Quarters Ended
		May 31,		June 1,		May 31,		June 1,
		2014		2013		2014		2013
Performance awards	$	318	$	360	$	2,326	$	1,061
Unvested share awards		75		100		258		284
Employee stock purchase plan		32		28		85		69
Management stock loan shares		-		-		-		497
Fully-vested share awards		191		-		191		22
	$	616	$	488	$	2,860	$	1,933

Stock Option Activity



			Weighted
			Avg. Exercise
	Number of		Price Per
	Stock Options		Share
Outstanding at August 31, 2013	675,000	$	11.25
Granted	-		-
Exercised	(43,750)		9.00
Forfeited	-		-

Outstanding at May 31, 2014	631,250	$	11.41

Options vested and exercisable at
May 31, 2014	631,250	$	11.41

Acquisition Of Red Tree, Inc. (Tables)

9 Months Ended

May 31, 2014

Acquisition Of Red Tree, Inc. [Abstract]

Schedule Of Acquisition Preliminary Valuation



Inventory	$	7
Intangible assets		405
Goodwill		50
Cash paid	$	462

Schedule Of Acquired Intangible Assets


Category of			Estimated Useful
Intangible Asset	Amount		Life

Tradename	$	31	5 years
Customer relationships		142	5 years
Content		232	5 years
	$	405

Reconciliation Of Consolidated Goodwill


		Goodwill Amount
Balance at August 31, 2013	$	16,135
Acquisition of Red Tree		50
Final CoveyLink earn out payment		3,456
Impairments		-
Balance at May 31, 2014	$	19,641

Earnings Per Share (Tables)

9 Months Ended

May 31, 2014

Earnings Per Share [Abstract]

Computation Of EPS



	Quarter Ended				Three Quarters Ended
		May 31,		June 1,		May 31,		June 1,
		2014		2013		2014		2013
Numerator for basic and
diluted earnings per share:
Net income	$	1,922	$	2,111	$	5,612	$	6,599

Denominator for basic and
diluted earnings per share:
Basic weighted average shares
outstanding		16,754		16,330		16,678		17,680
Effect of dilutive securities:
Stock options and other
share-based awards		180		91		228		80
Common stock warrants		-		-		-		709
Diluted weighted average
shares outstanding		16,934		16,421		16,906		18,469

EPS Calculations:
Net income per share:
Basic	$	0.11	$	0.13	$	0.34	$	0.37
Diluted		0.11		0.13		0.33		0.36

Segment Information (Tables)

9 Months Ended

May 31, 2014

Segment Information [Abstract]

Schedule Of Segment Operations



		Sales to
Quarter Ended		External				Adjusted
May 31, 2014		Customers		Gross Profit		EBITDA		Depreciation		Amortization

U.S./Canada	$	36,318	$	21,924	$	1,950	$	446	$	943
International		9,757		7,357		4,015		88		40
Total		46,075		29,281		5,965		534		983
Corporate and eliminations		1,056		603		(832)		332		-
Consolidated	$	47,131	$	29,884	$	5,133	$	866	$	983

Quarter Ended
June 1, 2013

U.S./Canada	$	35,198	$	21,958	$	3,651	$	320	$	957
International		8,608		6,901		3,801		79		3
Total		43,806		28,859		7,452		399		960
Corporate and eliminations		1,053		576		(1,190)		353		-
Consolidated	$	44,859	$	29,435	$	6,262	$	752	$	960

Three Quarters Ended
May 31, 2014

U.S./Canada	$	103,522	$	65,562	$	7,434	$	1,227	$	2,917
International		30,644		24,279		13,509		246		44
Total		134,166		89,841		20,943		1,473		2,961
Corporate and eliminations		2,889		1,484		(3,169)		993		-
Consolidated	$	137,055	$	91,325	$	17,774	$	2,466	$	2,961

Three Quarters Ended
June 1, 2013

U.S./Canada	$	94,803	$	59,367	$	8,135	$	886	$	2,193
International		31,377		25,166		14,155		244		8
Total		126,180		84,533		22,290		1,130		2,201
Corporate and eliminations		3,170		1,744		(3,375)		1,045		-
Consolidated	$	129,350	$	86,277	$	18,915	$	2,175	$	2,201

Schedule Of EBITDA Segment



	Quarter Ended				Three Quarters Ended
		May 31,		June 1,		May 31,		June 1,
		2014		2013		2014		2013
Enterprise Adjusted EBITDA	$	5,965	$	7,452	$	20,943	$	22,290
Corporate expenses		(832)		(1,190)		(3,169)		(3,375)
Consolidated Adjusted EBITDA		5,133		6,262		17,774		18,915
Share-based compensation expense		(616)		(488)		(2,860)		(1,933)
Reduction of contingent earn out liability		350		-		936		-
Depreciation		(866)		(752)		(2,466)		(2,175)
Amortization		(983)		(960)		(2,961)		(2,201)
Income from operations		3,018		4,062		10,423		12,606
Interest income		74		158		325		446
Interest expense		(557)		(578)		(1,676)		(1,766)
Discount on related party receivable		(141)		(135)		(424)		(418)
Other income, net		-		20		-		20
Income before income taxes	$	2,394	$	3,527	$	8,648	$	10,888

Basis Of Presentation (Details)	9 Months Ended
Basis Of Presentation (Details)	May 31, 2014 item
Basis Of Presentation [Abstract]
Number of regional offices	4
Number of countries in which entity operates	140

Inventories (Details) - USD ($) $ in Thousands	May 31, 2014	Aug. 31, 2013
Inventories [Abstract]
Finished goods	$ 5,313	$ 4,253
Raw materials	34	68
Inventories	$ 5,347	$ 4,321

CoveyLink Acquisition Earn Out Payment (Details) $ in Millions	1 Months Ended
	Mar. 31, 2014 USD ($)
CoveyLink Acquisition Earn Out Payment [Abstract]
Payments for acquisition earnout	$ 3.5

Share-Based Compensation (Narrative) (Details)			1 Months Ended		3 Months Ended		9 Months Ended
Share-Based Compensation (Narrative) (Details)	Apr. 16, 2014 USD ($) $ / shares shares	Nov. 22, 2013 USD ($) $ / shares shares	Jul. 10, 2014 $ / shares	Jan. 31, 2014 shares	May 31, 2014 USD ($) shares	Nov. 30, 2013 USD ($) item shares	May 31, 2014 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value of stock options exercised							$ 500,000
Shares issued under terms of the award \| shares					9,000		563,000
Price of common stock as a percent of the average fair market value							85.00%
Shares issued to employee stock purchase plan participants \| shares					8,599		26,993
After 5 Years [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period to achieve specified levels of common stock price		5 years
Performance Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for granting \| shares					89,418		89,418
Period which common stock price must average over specified levels		5 days
Shares granted \| shares		8,352
Fair value of granted shares		$ 155,000
Derived service period		P2M12D
Number of individual vesting conditions \| item						6
Number of performance measures \| item						2
Life of performance awards						6 years
Vesting price per share \| $ / shares		$ 22.00
Performance Awards [Member] \| Subsequent Event [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Average share price \| $ / shares			$ 22.00
Performance Awards [Member] \| 2012 Award [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted \| shares	9,557
Fair value of granted shares	$ 191,000
Vesting price per share \| $ / shares	$ 18.05
Shares vested \| shares	9,557
Performance Awards [Member] \| 2013 Award [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted \| shares	3,920
Fair value of granted shares	$ 74,000
Derived service period	P2M12D
Vesting price per share \| $ / shares	$ 22.00
Performance Awards [Member] \| 3 Years Or Less [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of shares which will vest		100.00%
Performance Awards [Member] \| 3 Years Or Less [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period to achieve specified levels of common stock price		3 years
Performance Awards [Member] \| 3 To 5 Years [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of shares which will vest		50.00%
Performance Awards [Member] \| 3 To 5 Years [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period to achieve specified levels of common stock price		3 years
Performance Awards [Member] \| 3 To 5 Years [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period to achieve specified levels of common stock price		5 years
Performance Awards [Member] \| After 5 Years [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of shares which will vest		0.00%
Unvested Share Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted \| shares							14,616
Unrecognized compensation cost					$ 175,000		$ 175,000
Shares vested \| shares				30,672
Whole-share grant per eligible director							$ 50,000
Vesting period of awards							1 year
Adjusted EBITDA [Member] \| Performance Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of tranches \| item						3
Shares to vest after meeting certain requirements \| shares						20,864
Sales Of Courses [Member] \| Performance Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of tranches \| item						3
Shares to vest after meeting certain requirements \| shares						8,942
Tranche One [Member] \| Adjusted EBITDA [Member] \| Performance Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Adjusted EBITDA						$ 37,000,000
Tranche One [Member] \| Sales Of Courses [Member] \| Performance Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Sales of 7 Habits courses						5,000,000
Tranche Two [Member] \| Adjusted EBITDA [Member] \| Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Adjusted EBITDA						43,000,000
Tranche Two [Member] \| Sales Of Courses [Member] \| Performance Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Sales of 7 Habits courses							$ 10,000,000
Tranche Three [Member] \| Adjusted EBITDA [Member] \| Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Adjusted EBITDA						49,000,000
Tranche Three [Member] \| Sales Of Courses [Member] \| Performance Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Sales of 7 Habits courses						$ 12,500,000

Share-Based Compensation (Total Cost Of Share-Based Compensation) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2014	Jun. 01, 2013	May 31, 2014	Jun. 01, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	$ 616	$ 488	$ 2,860	$ 1,933
Performance Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	318	360	2,326	1,061
Unvested Share Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	75	100	258	284
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	32	$ 28	85	69
Management Stock Loans [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost				497
Fully Vested Share Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	$ 191		$ 191	$ 22

Share-Based Compensation Plans (Stock Option Activity) (Details)	9 Months Ended
	May 31, 2014 $ / shares shares
Share-Based Compensation [Abstract]
Number of Stock Options, Outstanding at August 31, 2013 \| shares	675,000
Number of Stock Options, Exercised \| shares	(43,750)
Number of Stock Options, Outstanding at March 1, 2014 \| shares	631,250
Number of Stock Options, Options vested and exercisable at March 1, 2014 \| shares	631,250
Weighted Average Exercise Price Per Share, Outstanding at August 31, 2013 \| $ / shares	$ 11.25
Weighted Average Exercise Price Per Share, Exercised \| $ / shares	9.00
Weighted Average Exercise Price Per Share, Outstanding at March 1, 2014 \| $ / shares	11.41
Weighted Average Exercise Price Per Share, Options vested and exercisable at March 1, 2014 \| $ / shares	$ 11.41

Acquisition Of Red Tree, Inc. (Narrative) (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended		12 Months Ended
	Apr. 10, 2014	May 31, 2014	Jun. 01, 2013	May 31, 2014	Jun. 01, 2013	Dec. 31, 2013
Total Revenue		$ 47,131	$ 44,859	$ 137,055	$ 129,350
Net loss		$ 1,922	$ 2,111	$ 5,612	$ 6,599
Red Tree, Inc [Member]
Purchase price in cash	$ 500
Total Revenue						$ 1,300
Net loss						$ 100

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Net Income
-URI http://asc.fasb.org/extlink&oid=6518256

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=31042434&loc=d3e3602-108585

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.18)
-URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.22)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Other Comprehensive Income
-URI http://asc.fasb.org/extlink&oid=6519514

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=28358780&loc=d3e565-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 19
-Article 5

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 20
-Article 9

+ Details

Acquisition Of Red Tree, Inc. (Schedule Of Acquisition Preliminary Valuation) (Details) - USD ($) $ in Thousands	May 31, 2014	Apr. 10, 2014	Aug. 31, 2013
Goodwill	$ 19,641		$ 16,135
Red Tree, Inc [Member]
Inventory		$ 7
Intangible assets		405
Goodwill		50
Cash paid		$ 462

Acquisition Of Red Tree, Inc. (Schedule Of Acquired Intangible Assets) (Details) - USD ($) $ in Thousands		9 Months Ended
	Apr. 10, 2014	May 31, 2014
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible Assets Acquired	$ 405
Trade Names [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible Assets Acquired	31
Estimated Useful Life		5 years
Customer Relationships [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible Assets Acquired	142
Estimated Useful Life		5 years
Content [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible Assets Acquired	$ 232
Estimated Useful Life		5 years

Acquisition Of Red Tree, Inc. (Reconciliation Of Consolidated Goodwill) (Details) $ in Thousands	9 Months Ended
	May 31, 2014 USD ($)
Acquisition Of Red Tree, Inc. [Abstract]
Beginning Balance	$ 16,135
Acquisition of Red Tree	50
Final CoveyLink earn out payment	3,456
Impairments	19,641
Ending Balance	$ 19,641

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	May 31, 2014	May 31, 2014	Jun. 01, 2013
Income Taxes [Abstract]
Effective income tax rate	20.00%
Cash paid for income taxes		$ 5,769	$ 2,719

Earnings Per Share (Narrative) (Details) - shares shares in Millions		3 Months Ended
	Jun. 01, 2013	Mar. 02, 2013
Earnings Per Share [Abstract]
Transfer of common stock shares as payment on the loans		3.3
Shares outstanding not included in the computation of diluted EPS	0.2

Earnings Per Share (Computation of EPS) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2014	Jun. 01, 2013	May 31, 2014	Jun. 01, 2013
Earnings Per Share [Abstract]
Net income	$ 1,922	$ 2,111	$ 5,612	$ 6,599
Basic weighted average shares outstanding	16,754	16,330	16,678	17,680
Stock options and other share-based awards	180	91	228	80
Common stock warrants				709
Diluted weighted average shares outstanding	16,934	16,421	16,906	18,469
Net income per share, Basic	$ 0.11	$ 0.13	$ 0.34	$ 0.37
Net income per share, Diluted	$ 0.11	$ 0.13	$ 0.33	$ 0.36

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Segment Information (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	May 31, 2014	May 31, 2014
Segment Information [Abstract]
Reduction of contingent earn out liability	$ 350	$ 936

Segment Information (Schedule Of Segment Operations) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2014	Jun. 01, 2013	May 31, 2014	Jun. 01, 2013
Segment Reporting Information [Line Items]
Sales to external customers	$ 47,131	$ 44,859	$ 137,055	$ 129,350
Gross Profit	29,884	29,435	91,325	86,277
Adjusted EBITDA	5,133	6,262	17,774	18,915
Depreciation	866	752	2,466	2,175
Amortization	983	960	2,961	2,201
United States/Canada [Member]
Segment Reporting Information [Line Items]
Sales to external customers	36,318	35,198	103,522	94,803
Gross Profit	21,924	21,958	65,562	59,367
Adjusted EBITDA	1,950	3,651	7,434	8,135
Depreciation	446	320	1,227	886
Amortization	943	957	2,917	2,193
International [Member]
Segment Reporting Information [Line Items]
Sales to external customers	9,757	8,608	30,644	31,377
Gross Profit	7,357	6,901	24,279	25,166
Adjusted EBITDA	4,015	3,801	13,509	14,155
Depreciation	88	79	246	244
Amortization	40	3	44	8
Reportable Unit Assets [Member]
Segment Reporting Information [Line Items]
Sales to external customers	46,075	43,806	134,166	126,180
Gross Profit	29,281	28,859	89,841	84,533
Adjusted EBITDA	5,965	7,452	20,943	22,290
Depreciation	534	399	1,473	1,130
Amortization	983	960	2,961	2,201
Corporate And Eliminations [Member]
Segment Reporting Information [Line Items]
Sales to external customers	1,056	1,053	2,889	3,170
Gross Profit	603	576	1,484	1,744
Adjusted EBITDA	(832)	(1,190)	(3,169)	(3,375)
Depreciation	$ 332	$ 353	$ 993	$ 1,045

Segment Information (Schedule Of EBITDA Segment) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2014	Jun. 01, 2013	May 31, 2014	Jun. 01, 2013
Segment Reporting Information [Line Items]
Adjusted EBITDA	$ 5,133	$ 6,262	$ 17,774	$ 18,915
Share-based compensation expense	(616)	(488)	(2,860)	(1,933)
Reduction of contingent earn out liability	350		936
Depreciation	(866)	(752)	(2,466)	(2,175)
Amortization	(983)	(960)	(2,961)	(2,201)
Income from operations	3,018	4,062	10,423	12,606
Interest income	74	158	325	446
Interest expense	(557)	(578)	(1,676)	(1,766)
Discount on related party receivable	(141)	(135)	(424)	(418)
Other income, net		20		20
Income before income taxes	2,394	3,527	8,648	10,888
Reportable Unit Assets [Member]
Segment Reporting Information [Line Items]
Adjusted EBITDA	5,965	7,452	20,943	22,290
Depreciation	(534)	(399)	(1,473)	(1,130)
Amortization	(983)	(960)	(2,961)	(2,201)
Corporate And Eliminations [Member]
Segment Reporting Information [Line Items]
Adjusted EBITDA	(832)	(1,190)	(3,169)	(3,375)
Depreciation	$ (332)	$ (353)	$ (993)	$ (1,045)

Investment In FC Organizational Products (Details) - USD ($) $ in Millions	9 Months Ended
	May 31, 2014	Aug. 31, 2013
Investment In FC Organizational Products [Abstract]
Percent voting interest in FCOP	19.50%
Receivable from FCOP	$ 5.6	$ 7.8
Discount rate on long-term receivable from FCOP	15.00%
Cash received from FCOP	$ 3.9

- Definition

For an unclassified balance sheet, amount of receivables arising from transactions with related parties.

+ References + Details