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Document And Entity Information - shares	9 Months Ended
Document And Entity Information - shares	May 31, 2020	Jun. 30, 2020
Document And Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	May 31, 2020
Document Transition Report	false
Entity File Number	1-11107
Entity Registrant Name	FRANKLIN COVEY CO
Entity Incorporation, State or Country Code	UT
Entity Tax Identification Number	87-0401551
Entity Address, Address Line One	2200 West Parkway Boulevard
Entity Address, City or Town	Salt Lake City
Entity Address, State or Province	UT
Entity Address, Postal Zip Code	84119-2099
City Area Code	801
Local Phone Number	817-1776
Title of 12(b) Security	Common Stock, $.05 Par Value
Trading Symbol	fc
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		13,877,984
Amendment Flag	false
Entity Central Index Key	0000886206
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2020
Current Fiscal Year End Date	--08-31

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	May 31, 2020	Aug. 31, 2019
Current assets:
Cash and cash equivalents	$ 37,006	$ 27,699
Accounts receivable, less allowance for doubtful accounts of $3,873 and $4,242	38,612	73,227
Inventories	3,106	3,481
Prepaid expenses and other current assets	13,295	14,933
Total current assets	92,019	119,340
Property and equipment, net	16,894	18,579
Intangible assets, net	44,189	47,690
Goodwill	24,220	24,220
Deferred income tax assets	1,388	5,045
Other long-term assets	14,894	10,039
Total assets	193,604	224,913
Current liabilities:
Current portion of term notes payable	5,000	5,000
Current portion of financing obligation	2,532	2,335
Accounts payable	3,922	9,668
Deferred subscription revenue	42,794	56,250
Other deferred revenue	7,915	5,972
Accrued liabilities	18,212	24,319
Total current liabilities	80,375	103,544
Line of credit	14,870
Term notes payable, less current portion	16,250	15,000
Financing obligation, less current portion	14,726	16,648
Other liabilities	6,061	7,527
Deferred income tax liabilities	4,274	180
Total liabilities	136,556	142,899
Shareholders' equity:
Common stock, $.05 par value; 40,000 shares authorized, 27,056 shares issued	1,353	1,353
Additional paid-in capital	211,067	215,964
Retained earnings	48,988	59,403
Accumulated other comprehensive income	231	269
Treasury stock at cost, 13,198 shares and 13,087 shares	(204,591)	(194,975)
Total shareholders' equity	57,048	82,014
Total liabilities and shareholders' equity	$ 193,604	$ 224,913

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	May 31, 2020	Aug. 31, 2019
Condensed Consolidated Balance Sheets [Abstract]
Allowance for doubtful accounts	$ 3,873	$ 4,242
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	13,198,000	13,087,000

Condensed Consolidated Statements Of Operations And Statements Of Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2020	May 31, 2019
Condensed Consolidated Statements Of Operations And Statements Of Comprehensive Loss [Abstract]
Net sales	$ 37,105	$ 56,006	$ 149,463	$ 160,191
Cost of sales	10,284	16,342	41,946	48,379
Gross profit	26,821	39,664	107,517	111,812
Selling, general, and administrative	29,254	37,662	101,231	106,242
Stock-based compensation	(5,104)	1,051	(1,460)	3,040
Depreciation	1,652	1,556	4,925	4,806
Amortization	1,164	1,259	3,504	3,797
Loss from operations	(145)	(1,864)	(683)	(6,073)
Interest income	18	8	36	30
Interest expense	(621)	(562)	(1,783)	(1,817)
Discount accretion on related party receivable				258
Loss before income taxes	(748)	(2,418)	(2,430)	(7,602)
Income tax benefit (provision)	(10,220)	394	(7,985)	704
Net loss	$ (10,968)	$ (2,024)	$ (10,415)	$ (6,898)
Net loss per share:
Basic and diluted	$ (0.79)	$ (0.14)	$ (0.75)	$ (0.49)
Weighted average number of common shares:
Basic and diluted	13,869	13,963	13,897	13,939
COMPREHENSIVE LOSS
Net loss	$ (10,968)	$ (2,024)	$ (10,415)	$ (6,898)
Foreign currency translation adjustments, net of income tax benefit of $0, $8, $0, and $8	(91)	(144)	(38)	(15)
Comprehensive loss	$ (11,059)	$ (2,168)	$ (10,453)	$ (6,913)

Condensed Consolidated Statements Of Operations And Statements Of Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2020	May 31, 2019
Condensed Consolidated Statements Of Operations And Statements Of Comprehensive Loss [Abstract]
Foreign currency translation adjustments, tax	$ 0	$ 8	$ 0	$ 8

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	May 31, 2020	May 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (10,415)	$ (6,898)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	8,429	8,619
Amortization of capitalized curriculum costs	3,042	3,951
Stock-based compensation	(1,460)	3,040
Deferred income taxes	7,678	(2,207)
Change in fair value of contingent consideration liabilities	(367)	1,145
Loss on disposal of assets	39
Changes in assets and liabilities, net of effect of acquired business:
Decrease in accounts receivable, net	34,692	19,461
Decrease in inventories	377	158
Decrease in prepaid expenses and other assets	1,784	2,585
Decrease in accounts payable and accrued liabilities	(11,057)	(2,792)
Decrease in deferred revenue	(12,612)	(8,384)
Increase (decrease) in income taxes payable/receivable	(1,415)	358
Decrease in other long-term liabilities	(6)	(412)
Net cash provided by operating activities	18,709	18,624
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(3,336)	(2,996)
Curriculum development costs	(3,436)	(1,821)
Purchase of note receivable from bank (Note 12)	(2,600)
Acquisition of business, net of cash acquired		(32)
Net cash used for investing activities	(9,372)	(4,849)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from line of credit borrowings	14,870	66,451
Payments on line of credit borrowings		(73,665)
Proceeds from term notes payable	5,000
Principal payments on term notes payable	(3,750)	(4,688)
Principal payments on financing obligation	(1,725)	(1,544)
Purchases of common stock for treasury	(13,833)	(12)
Payment of contingent consideration liabilities	(1,167)	(483)
Proceeds from sales of common stock held in treasury	780	694
Net cash provided by (used for) financing activities	175	(13,247)
Effect of foreign currency exchange rates on cash and cash equivalents	(205)	177
Net increase in cash and cash equivalents	9,307	705
Cash and cash equivalents at the beginning of the period	27,699	10,153
Cash and cash equivalents at end of the period	37,006	10,858
Supplemental disclosure of cash flow information:
Cash paid for income taxes	1,713	1,247
Cash paid for interest	1,751	1,855
Non-cash investing and financing activities:
Purchases of property and equipment financed by accounts payable	352	597
Use of notes receivable to modify revenue contract (Note 12)	$ 3,246
Consideration for business acquisition from liabilities of acquiree		$ 798

Condensed Consolidated Statements Of Changes In Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income [Member]	Treasury Stock [Member]	Total
Beginning balance, shares at Aug. 31, 2018	27,056
Beginning balance at Aug. 31, 2018	$ 1,353	$ 211,280	$ 63,569	$ 341
Beginning balance, shares, Treasury at Aug. 31, 2018					(13,159)
Beginning balance, Treasury at Aug. 31, 2018					$ (196,043)
Issuance of common stock from treasury, shares					11
Issuance of common stock from treasury		64			$ 166
Purchase of treasury shares					$ (7)
Stock-based compensation		946
Cumulative translation adjustments				(309)
Net (loss) income			(1,357)
Ending balance, shares at Nov. 30, 2018	27,056
Ending balance at Nov. 30, 2018	$ 1,353	212,290	59,069	32
Ending balance, shares, Treasury at Nov. 30, 2018					(13,148)
Ending balance, Treasury at Nov. 30, 2018					$ (195,884)
Beginning balance, shares at Aug. 31, 2018	27,056
Beginning balance at Aug. 31, 2018	$ 1,353	211,280	63,569	341
Beginning balance, shares, Treasury at Aug. 31, 2018					(13,159)
Beginning balance, Treasury at Aug. 31, 2018					$ (196,043)
Cumulative translation adjustments						$ (15)
Net (loss) income						(6,898)
Ending balance, shares at May. 31, 2019	27,056
Ending balance at May. 31, 2019	$ 1,353	214,092	53,528	326
Ending balance, shares, Treasury at May. 31, 2019					(13,097)
Ending balance, Treasury at May. 31, 2019					$ (195,133)
Cumulative effect of accounting change			(3,143)
Beginning balance, shares at Nov. 30, 2018	27,056
Beginning balance at Nov. 30, 2018	$ 1,353	212,290	59,069	32
Beginning balance, shares, Treasury at Nov. 30, 2018					(13,148)
Beginning balance, Treasury at Nov. 30, 2018					$ (195,884)
Issuance of common stock from treasury, shares					11
Issuance of common stock from treasury		53			$ 162
Purchase of treasury shares					$ (5)
Stock-based compensation		1,043
Restricted stock award, shares					28
Restricted stock award		(426)			$ 426
Cumulative translation adjustments				438
Net (loss) income			(3,517)
Ending balance, shares at Feb. 28, 2019	27,056
Ending balance at Feb. 28, 2019	$ 1,353	212,960	55,552	470
Ending balance, shares, Treasury at Feb. 28, 2019					(13,109)
Ending balance, Treasury at Feb. 28, 2019					$ (195,301)
Issuance of common stock from treasury, shares					12
Issuance of common stock from treasury		81			$ 168
Stock-based compensation		1,051
Cumulative translation adjustments				(144)		(144)
Net (loss) income			(2,024)			(2,024)
Ending balance, shares at May. 31, 2019	27,056
Ending balance at May. 31, 2019	$ 1,353	214,092	53,528	326
Ending balance, shares, Treasury at May. 31, 2019					(13,097)
Ending balance, Treasury at May. 31, 2019					$ (195,133)
Beginning balance, shares at Aug. 31, 2019	27,056
Beginning balance at Aug. 31, 2019	$ 1,353	215,964	59,403	269		82,014
Beginning balance, shares, Treasury at Aug. 31, 2019					(13,087)
Beginning balance, Treasury at Aug. 31, 2019					$ (194,975)
Issuance of common stock from treasury, shares					9
Issuance of common stock from treasury		131			$ 123
Purchase of treasury shares					$ (3)
Stock-based compensation		1,851
Cumulative translation adjustments				(37)
Net (loss) income			(544)
Ending balance, shares at Nov. 30, 2019	27,056
Ending balance at Nov. 30, 2019	$ 1,353	217,946	58,859	232
Ending balance, shares, Treasury at Nov. 30, 2019					(13,078)
Ending balance, Treasury at Nov. 30, 2019					$ (194,855)
Beginning balance, shares at Aug. 31, 2019	27,056
Beginning balance at Aug. 31, 2019	$ 1,353	215,964	59,403	269		82,014
Beginning balance, shares, Treasury at Aug. 31, 2019					(13,087)
Beginning balance, Treasury at Aug. 31, 2019					$ (194,975)
Cumulative translation adjustments						(38)
Net (loss) income						(10,415)
Ending balance, shares at May. 31, 2020	27,056
Ending balance at May. 31, 2020	$ 1,353	211,067	48,988	231		57,048
Ending balance, shares, Treasury at May. 31, 2020					(13,198)
Ending balance, Treasury at May. 31, 2020					$ (204,591)
Beginning balance, shares at Nov. 30, 2019	27,056
Beginning balance at Nov. 30, 2019	$ 1,353	217,946	58,859	232
Beginning balance, shares, Treasury at Nov. 30, 2019					(13,078)
Beginning balance, Treasury at Nov. 30, 2019					$ (194,855)
Issuance of common stock from treasury, shares					241
Issuance of common stock from treasury		(3,361)			$ 3,591
Purchase of treasury shares, shares					(393)
Purchase of treasury shares					$ (13,830)
Stock-based compensation		1,793
Restricted stock award, shares					21
Restricted stock award		(333)			$ 333
Cumulative translation adjustments				90
Net (loss) income			1,097
Ending balance, shares at Feb. 29, 2020	27,056
Ending balance at Feb. 29, 2020	$ 1,353	216,045	59,956	322
Ending balance, shares, Treasury at Feb. 29, 2020					(13,209)
Ending balance, Treasury at Feb. 29, 2020					$ (204,761)
Issuance of common stock from treasury, shares					11
Issuance of common stock from treasury		126			$ 170
Stock-based compensation		(5,104)
Cumulative translation adjustments				(91)		(91)
Net (loss) income			(10,968)			(10,968)
Ending balance, shares at May. 31, 2020	27,056
Ending balance at May. 31, 2020	$ 1,353	$ 211,067	$ 48,988	$ 231		$ 57,048
Ending balance, shares, Treasury at May. 31, 2020					(13,198)
Ending balance, Treasury at May. 31, 2020					$ (204,591)

Basis Of Presentation

9 Months Ended

May 31, 2020

Basis Of Presentation [Abstract]

Basis Of Presentation

NOTE 1 – BASIS OF PRESENTATION

General

Franklin Covey Co. (hereafter referred to as us, we, our, or the Company) is a global company focused on organizational performance improvement. Our mission is to “enable greatness in people and organizations everywhere,” and our global structure is designed to help individuals and organizations achieve sustained superior performance through changes in human behavior. We are fundamentally a content and solutions company, and we believe that our offerings and services create the connection between capabilities and results. Our expertise extends to seven crucial areas: Leadership, Execution, Productivity, Trust, Educational Improvement, Sales Performance, and Customer Loyalty. 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 three 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. When our content is applied consistently in an organization, we believe the culture of that organization will change to enable the organization to achieve their own great purposes. Our content is designed to build new skillsets, establish new mindsets, and provide enabling toolsets to our clients.

Breadth and Scalability of Delivery Options – We have a wide range of content delivery options, including: subscription offerings, which includes the All Access Pass (available in multiple languages), the Leader in Me membership, and other subscription offerings; intellectual property licenses; on-line learning; on-site training; training led through certified facilitators; and organization-wide transformational processes, including consulting and coaching services. Over the past few years we have significantly increased our ability to deliver content electronically to workers who may be engaged in remote locations.

Global Capability – We have sales professionals in the United States and Canada who serve clients in the private sector and in governmental organizations; wholly-owned subsidiaries in Australia, China, Japan, the United Kingdom, Germany, Switzerland, and Austria; and we contract with licensee partners who deliver our content and provide related services in over 140 other countries and territories around the world.

We are committed to, 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, The Leader in Me, and The 4 Disciplines of Execution, and proprietary content in the areas of Execution, Sales Performance, Productivity, Educational Improvement, and Customer Loyalty. Our offerings are described in further detail at www.franklincovey.com. The information posted on our website is not incorporated into this report.

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, 2019.

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.

Our fiscal year ends on August 31 of each year and our fiscal quarters end on the last day of November, February, and May of each year.

The results of operations for the quarter ended May 31, 2020 are not necessarily indicative of results expected for the entire fiscal year ending August 31, 2020, or for any future periods.

Reclassifications

Certain reclassifications have been made to our prior period financial statements to conform with the current period presentation. On our fiscal 2020 condensed consolidated statements of operations, we have presented stock-based compensation separately to show the magnitude of the reversal of stock-based compensation during the third quarter of fiscal 2020 due to the impact of the COVID-19 pandemic and have reclassified the prior period amounts for comparability. Stock-based compensation was previously included as a component of selling, general, and administrative expense.

Note on the COVID-19 Pandemic

With the rapid spread of COVID-19 around the world and the continuously evolving responses to the pandemic, we have witnessed the significant and growing negative impact of COVID-19 on the global economic and operating environment. These negative impacts significantly reduced our consolidated sales during the quarter ended May 31, 2020 as workplaces and schools were closed in response to the pandemic. In light of these events, we have taken measures to reduce our costs and to maintain adequate liquidity. However, due to the rapidly changing business and education environment, unprecedented market volatility, and other circumstances resulting from the COVID-19 pandemic, we are currently unable to fully determine the extent of COVID-19’s impact on our business in future periods. Our business in future periods will be heavily influenced by the timing, length, and intensity of the economic recoveries in the United States and in other countries around the world. We continue to monitor evolving economic and general business conditions and the actual and potential impacts on our financial position, results of operations, and cash flows.

Various accounting guidance requires us to evaluate the recoverability of our long-lived assets, including goodwill and indefinite-lived intangible assets, whenever events or changes in circumstances may indicate that the carrying value of the assets are not recoverable or are less than their fair values. Due to the impact of the COVID-19 pandemic on our third quarter operating results and uncertainties associated with the recovery from the pandemic in future periods, we determined that it was appropriate to test our long-lived assets, including goodwill and indefinite-lived intangible assets, for impairment during the third quarter of fiscal 2020. No impairment charges were recorded during the third quarter of fiscal 2020 as a result of these tests.

Accounting Pronouncements Issued and Adopted

In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842), which supersedes FASB Accounting Standards Codification (ASC) Topic 840, Leases. The new guidance requires lessees to recognize a lease liability and corresponding right-of-use asset for all leases greater than 12 months. Recognition, measurement, and presentation of expenses depends upon whether the lease is classified as a finance or operating lease. We adopted the new lease guidance prospectively on September 1, 2019. As part of the adoption of ASU 2016-02, we elected to apply the package of practical expedients, which allows us to not reassess prior conclusions related to lease classification, not to recognize short-term leases on our balance sheet, and not to separate lease and non-lease components for our leases. On September 1, 2019, the adoption of ASU 2016-02 resulted in the recognition of $1.5 million of lease liabilities and right-of-use assets on our condensed consolidated balance sheets for operating leases. For lessors, accounting for leases is substantially the same as in prior periods and there was no impact from the adoption of ASU 2016-02 for those leases where we are the lessor. Refer to Note 5, Leases for further information regarding our leasing activity.

The lease for our corporate campus has historically been accounted for as a financing obligation and related building asset on our consolidated balance sheets, as the contract did not meet the criteria for application of sale-leaseback accounting under previous leasing guidance. In transition to Topic 842, we reassessed whether the contract met the sale criteria under the new leasing standard. Based on this assessment, we determined that the sale criteria under the new leasing standard was not met and we will continue to account for the corporate campus lease as a finance obligation on our consolidated balance sheet in future periods.

Accounting Pronouncements Issued Not Yet Adopted

Credit Losses on Financial Instruments

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This accounting standard changes the methodology for measuring credit losses on financial instruments, including trade accounts receivable, and the timing of when such losses are recorded. ASU No. 2016-13 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those years, beginning after December 15, 2018. We expect to adopt the provisions of ASU No. 2016-13 on September 1, 2020 and are currently evaluating the impact of this guidance on our financial position, results of operations, and disclosures.

Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement

In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (ASU 2018-15). This guidance clarifies the accounting for implementation costs in a cloud computing arrangement that is a service contract and aligns the requirements for capitalizing those costs with the capitalization requirements for costs incurred to develop or obtain internal-use software. The new standard is effective for interim and annual periods beginning after December 15, 2019, and early adoption is permitted. We are currently evaluating the effects, if any, the adoption of ASU 2018-15 may have on our financial position, results of operations, cash flows, or disclosures.

Inventories

9 Months Ended

May 31, 2020

Inventories [Abstract]

Inventories

NOTE 2 – INVENTORIES

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



		May 31,		August 31,
		2020		2019
Finished goods	$	3,086	$	3,434
Raw materials		20		47
	$	3,106	$	3,481

Term Notes Payable And Line Of Credit

9 Months Ended

May 31, 2020

Term Notes Payable And Line Of Credit [Abstract]

Term Notes Payable And Line Of Credit

NOTE 3 – TERM NOTES PAYABLE AND LINE OF CREDIT

Pursuant to the credit agreement we obtained in August 2019 (the 2019 Credit Agreement), we have the ability to borrow up to $25.0 million in term loans. At August 31, 2019, we had borrowed $20.0 million of the available term loan amount. During November 2019, we borrowed the remaining $5.0 million term loan available. The additional $5.0 million term loan has the same terms and conditions as the previous term loan and does not change the amount of our quarterly principal payments. However, the maturity date of the term loans is extended for one year to August 2024 as a result of the additional payments. At May 31, 2020, our future principal payments on the term loans are as follows (in thousands):



YEAR ENDING AUGUST 31,		Amount
2020	$	1,250
2021		5,000
2022		5,000
2023		5,000
2024		5,000
	$	21,250

During the quarter ended May 31, 2020, we withdrew $14.9 million (the available credit) on our revolving credit facility primarily to maximize our flexibility during this period of economic uncertainty. The line of credit is due and payable in August 2024.

Fair Value Of Financial Instruments

9 Months Ended

May 31, 2020

Fair Value Of Financial Instruments [Abstract]

Fair Value Of Financial Instruments

NOTE 4 – FAIR VALUE OF FINANCIAL INSTRUMENTS

At May 31, 2020, the carrying value of our financial instruments approximated their fair values. The fair values of our contingent consideration liabilities from previous business acquisitions are considered “Level 3” measurements because we use various estimates in the valuation models to project the timing and amount of future contingent payments. The fair value of the contingent consideration liabilities from the acquisitions of Jhana Education (Jhana) and Robert Gregory Partners (RGP) changed as follows during the quarter and three quarters ended May 31, 2020 (in thousands):



	Jhana		RGP		Total
Balance at August 31, 2019	$	3,468	$	1,761	$	5,229
Change in fair value		98		(7)		91
Payments		(282)		(500)		(782)
Balance at November 30, 2019		3,284		1,254		4,538
Change in fair value		153		(335)		(182)
Payments		(129)		-		(129)
Balance at February 29, 2020		3,308		919		4,227
Change in fair value		(102)		(174)		(276)
Payments		(256)		-		(256)
Balance at May 31, 2020	$	2,950	$	745	$	3,695

At each quarterly reporting date, we estimate the fair value of the contingent liabilities from both the Jhana and RGP acquisitions through the use of Monte Carlo simulations. Based on the timing of expected payments, $0.8 million of the Jhana and $0.5 million of the RGP contingent consideration liabilities were recorded as components of accrued liabilities on our condensed consolidated balance sheet at May 31, 2020. The remainder of our contingent consideration liabilities are classified as other long-term liabilities. Adjustments to the fair value of our contingent consideration liabilities are included in selling, general, and administrative expense in the accompanying condensed consolidated statements of operations.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Leases

9 Months Ended

May 31, 2020

Leases [Abstract]

Leases

NOTE 5 – LEASES

Lessee Obligations

In the normal course of business, we rent office space, primarily for international sales administration offices, in commercial office complexes that are conducive to sales and administrative operations. We also rent warehousing and distribution facilities that are designed to provide secure storage and efficient distribution of our training products, books, and accessories. All of these leases are classified as operating leases. Operating lease assets and liabilities are recognized at the commencement date based on the present value of the lease payments over the lease term. Since most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Leases with an initial term of 12 months or less are not recorded on the balance sheet. For operating leases, expense is recognized on a straight-line basis over the lease term. We do not have significant amounts of variable lease payments.

Some of our operating leases contain renewal options that may be exercised at our discretion after the completion of the base rental term. At May 31, 2020, we had operating leases with remaining terms ranging from less than one year to approximately five years. The amounts of assets and liabilities (in thousands) and other information related to our operating leases follows:



	Balance Sheet		May 31,
	Caption		2020
Assets:
Operating lease right of use assets	Other long-term assets	$	1,383

Liabilities:
Current:
Operating lease liabilities	Accrued liabilities		843
Long-Term:
Operating lease liabilities	Other long-term liabilities		540
		$	1,383

Weighted Average Remaining Lease Term:
Operating leases (years)			2.6

Weighted Average Discount Rate:
Operating leases			4.2	%

During the quarter and three quarters ended May 31, 2020, lease expense totaled $0.4 million and $1.2 million, respectively. For the quarter and three quarters ended May 31, 2019, lease expense also totaled $0.4 million and $1.2 million. Operating lease expense is reported in selling, general, and administrative expense in our condensed consolidated statements of operations.

The approximate future minimum lease payments under our operating leases at May 31, 2020, is as follows (in thousands):



YEAR ENDING AUGUST 31,		Amount
Remainder of 2020	$	271
2021		724
2022		197
2023		112
2024		90
Thereafter		94
Total operating lease payments		1,488
Less imputed interest		(105)
Present value of operating lease liabilities	$	1,383

Lessor Accounting

We have subleased the majority of our corporate headquarters campus located in Salt Lake City, Utah to multiple tenants. These sublease agreements are accounted for as operating leases. We recognize sublease income on a straight-line basis over the life of the sublease agreement. The cost basis of our corporate campus was $36.0 million, which had a carrying value of $6.2 million at May 31, 2020. The following future minimum lease payments due to us from our sublease agreements at May 31, 2020, are as follows (in thousands):



YEAR ENDING AUGUST 31,		Amount
Remainder of 2020	$	979
2021		3,944
2022		3,699
2023		2,065
2024		1,527
Thereafter		1,275
	$	13,489

For the quarter and three quarters ended May 31, 2020, sublease revenue totaled $1.0 million and $2.9 million, respectively. During the quarter and three quarters ended May 31, 2019, sublease revenue also totaled $1.0 million and $2.9 million. Sublease revenues are included in net sales in the accompanying condensed consolidated statements of operations.

Shareholders' Equity	9 Months Ended
Shareholders' Equity	May 31, 2020
Shareholders' Equity [Abstract]
Shareholders' Equity	NOTE 6 – SHAREHOLDERS’ EQUITY In December 2019, Knowledge Capital Investment Group (Knowledge Capital), an investor which held 2.8 million shares of our common stock stemming from its initial investment in Franklin Covey over 20 years ago, wound up its operations and distributed its assets to investors. On December 9, 2019, prior to the distribution of its assets to investors, we purchased 284,608 shares of our common stock from Knowledge Capital at $35.1361 per share, for an aggregate purchase price of $10.1 million, including legal costs. Our CEO and a member of our Board of Directors each owned a partnership interest in Knowledge Capital. As of the date hereof, Knowledge Capital does not own any shares of our common stock.

Revenue Recognition	9 Months Ended
Revenue Recognition	May 31, 2020
Revenue Recognition [Abstract]
Revenue Recognition	NOTE 7 – REVENUE RECOGNITION Contract Balances Our deferred revenue totaled $53.1 million at May 31, 2020 and $65.8 million at August 31, 2019, of which $2.4 million and $3.6 million were classified as components of other long-term liabilities at May 31, 2020, and August 31, 2019, respectively. The amount of deferred revenue that was generated from subscription offerings totaled $43.9 million at May 31, 2020 and $58.2 million at August 31, 2019. During the quarter and three quarters ended May 31, 2020, we recognized $22.2 million and $64.7 million of previously deferred subscription revenue. Remaining Performance Obligations When possible, we enter into multi-year non-cancellable contracts which are invoiced either upon execution of the contract or at the beginning of each annual contract period. ASC Topic 606 introduced the concept of remaining transaction price which represents contracted revenue that has not yet been recognized, including unearned revenue and unbilled amounts that will be recognized as revenue in future periods. Transaction price is influenced by factors such as seasonality, the average length of the contract term, and the ability of the Company to continue to enter multi-year non-cancellable contracts. At May 31, 2020, we had $77.3 million of remaining performance obligations, including the amount of deferred revenue related to our subscription offerings. The remaining performance obligation does not include other deferred revenue, as amounts included in other deferred revenue include items such as deposits that are generally refundable at the client’s request prior to the satisfaction of the obligation. Disaggregated Revenue Information Refer to Note 11, Segment Information, to these condensed consolidated financial statements for our disaggregated revenue information.

Stock-Based Compensation

9 Months Ended

May 31, 2020

Stock-Based Compensation [Abstract]

Stock-Based Compensation

NOTE 8 – STOCK-BASED COMPENSATION

Our stock-based compensation was comprised of the following for the periods presented (in thousands):



		Quarter Ended			Three Quarters Ended
		May 31,		May 31,		May 31,		May 31,
		2020		2019		2020		2019
Long-term incentive awards	$	(5,326)	$	826	$	(2,124)	$	2,384
Restricted stock awards		175		175		525		525
Employee stock purchase plan		47		50		139		131
	$	(5,104)	$	1,051	$	(1,460)	$	3,040

At each reporting date, we evaluate number and probability of shares expected to vest in each of our performance-based long-term incentive plan (LTIP) awards and adjust our stock-based compensation expense to correspond with the number of shares expected to vest over the anticipated service period. Due to the significant impact of the COVID-19 pandemic on our results of operations in the third quarter of fiscal 2020 and the uncertainties surrounding the recovery of the world’s economies, at May 31, 2020, we determined that the LTIP award tranches which are based on qualified adjusted earnings before interest, taxes, depreciation, and amortization (Adjusted EBITDA) for our fiscal 2015, 2016, 2017, 2019, and 2020 LTIP awards would not vest before the end of the respective service periods. We therefore reversed the previously recognized stock-based compensation expense associated with these awards at May 31, 2020, which resulted in a significant net credit to stock-based compensation for the quarter and three quarters ended May 31, 2020. The subscription sales based tranches of the 2018, 2019, and 2020 LTIP awards are still expected to vest to participants, but at reduced achievement levels.

During the three quarters ended May 31, 2020, we issued 281,479 shares of our common stock under various stock-based compensation arrangements. Our stock-based compensation plans also allow shares to be withheld to cover statutory income taxes if so elected by the award recipient. During the first three quarters of fiscal 2020, we withheld 103,117 shares of our common stock for taxes on stock-based compensation arrangements, which had a fair value of $3.6 million. The following is a description of the other developments in our stock-based compensation plans during the quarter and three quarters ended May 31, 2020.

Stock Options

During December 2019, our Chief Executive Officer (CEO) and Chief Financial Officer (CFO) exercised stock options. Nearly all of the stock options exercised would have expired in January 2020. The following information applies to our stock option activity during the three quarters ended May 31, 2020.



			Weighted
			Avg. Exercise
	Number of		Price Per
	Stock Options		Share
Outstanding at August 31, 2019	568,750	$	11.67
Granted	-		-
Exercised	(350,000)		(11.73)
Forfeited	-		-

Outstanding at May 31, 2020	218,750	$	11.57

Options vested and exercisable at
May 31, 2020	218,750	$	11.57

The stock options were exercised on a net basis (no cash was paid to exercise the options) and we withheld 102,656 shares of our common stock with a fair value of $3.6 million for income taxes. The intrinsic value of the exercised options totaled $8.0 million and we recognized an income tax benefit of $1.8 million (Note 9) during the second quarter of fiscal 2020. Our remaining stock options outstanding at May 31, 2020 expire in January 2021.

Fiscal 2020 Restricted Stock Award

Our annual restricted stock award granted to non-employee members of the Board of Directors is administered under the terms of the 2019 Franklin Covey Co. Omnibus 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 award is granted in January (following the annual shareholders’ meeting) of each year. For the fiscal 2020 award, each eligible director received a whole-share grant equal to $100,000 with a one-year vesting period. Our restricted stock award activity during the three quarters ended May 31, 2020 consisted of the following:



			Weighted-Average
			Grant Date
	Number of		Fair Value
	Shares		Per Share
Restricted stock awards at
August 31, 2019	28,525	$	24.54
Granted	21,420		32.68
Forfeited	-		-
Vested	(28,525)		24.54
Restricted stock awards at
May 31, 2020	21,420	$	32.68

At May 31, 2020, there was $0.4 million of unrecognized compensation expense remaining on the fiscal 2020 Board of Director restricted share award.

Fiscal 2020 Long-Term Incentive Plan Award

On October 18, 2019, the Organization and Compensation Committee of the Board of Directors granted a new LTIP award to our executive officers and members of senior management. The fiscal 2020 LTIP award is similar to the fiscal 2019 LTIP award and has three tranches, one of which has a time-based vesting condition and two of which have performance-based vesting conditions as described below:

Time-Based Award Shares – Twenty-five percent of the 2020 LTIP award shares vest to participants after three years of service. The number of shares that may be earned by participants at the end of the service period totals 25,101 shares. The number of shares awarded in this tranche is not variable and does not fluctuate based on the achievement of financial measures.

Performance-Based Award Shares – The remaining two tranches of the 2020 LTIP award are based on the highest rolling four-quarter levels of qualified Adjusted EBITDA and subscription service sales in the three-year period ended August 31, 2022. The number of shares that will vest to participants for these two tranches is variable and may be 50 percent of the award (minimum award threshold) or up to 200 percent of the participant’s award (maximum threshold) depending on the levels of qualified Adjusted EBITDA and subscription service sales achieved. The number of shares that may be earned for achieving 100 percent of the performance-based objectives totals 75,315 shares. The maximum number of shares that may be awarded in connection with the performance-based tranches of the 2020 LTIP totals 150,630 shares. At May 31, 2020, we determined that the Adjusted EBITDA tranche of the 2020 LTIP was improbable of vesting prior to August 31, 2022 and we reversed previously recognized stock-based compensation expense for this award tranche.

The fiscal 2020 LTIP expires on August 31, 2022.

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 each fiscal quarter. During the quarter and three quarters ended May 31, 2020, we issued 10,948 shares and 26,375 shares of our common stock to participants in the ESPP.

Income Taxes	9 Months Ended
Income Taxes	May 31, 2020
Income Taxes [Abstract]
Income Taxes	NOTE 9 – INCOME TAXES For the three quarters ended May 31, 2020, we recorded income tax expense of $8.0 million on a pre-tax loss of $2.4 million, which resulted in an effective tax expense rate of approximately 329 percent for the first three quarters of fiscal 2020. We computed income taxes by applying an estimated annual effective income tax rate to the consolidated pre-tax loss for the period, adjusting for discrete items arising during the period, including a $10.2 million increase in the valuation allowance against our deferred income tax assets during the third quarter of fiscal 2020 and the exercise of stock options (Note 8), which produced an income benefit of $1.8 million in the second quarter of fiscal 2020. The increase in our deferred tax asset valuation allowance resulted in additional income tax expense of $10.2 million in fiscal 2020. In consideration of the relevant accounting guidance, we considered both positive and negative evidence in determining whether it is more likely than not that some portion or all of our deferred tax assets will be realized. Because of the cumulative pre-tax losses over the past three fiscal years, combined with the expected continued disruptions and negative impact to our business resulting from uncertainties related to the recovery from the pandemic, we determined that it is more-likely-than-not that insufficient taxable income will be available to realize all of our deferred tax assets before they expire, primarily foreign tax credit carryforwards and a portion of our net operating loss carryforwards. Accordingly, we increased the valuation allowance against our deferred tax assets.

Loss Per Share

9 Months Ended

May 31, 2020

Loss Per Share [Abstract]

Loss Per Share

NOTE 10 – LOSS PER SHARE

The following schedule shows the calculation of loss per share for the periods presented (in thousands, except per-share amounts).



	Quarter Ended				Three Quarters Ended
		May 31,		May 31,		May 31,		May 31,
		2020		2019		2020		2019
Numerator for basic and
diluted loss per share:
Net loss	$	(10,968)	$	(2,024)	$	(10,415)	$	(6,898)

Denominator for basic and
diluted loss per share:
Basic weighted average shares
outstanding		13,869		13,963		13,897		13,939
Effect of dilutive securities:
Stock options and other
stock-based awards		-		-		-		-
Diluted weighted average
shares outstanding		13,869		13,963		13,897		13,939

EPS Calculations:
Net loss per share:
Basic and diluted	$	(0.79)	$	(0.14)	$	(0.75)	$	(0.49)

Since we incurred a net loss for the quarter and three quarters ended May 31, 2020, no potentially dilutive securities are included in the calculation of diluted loss per share for those periods because such effect would be anti-dilutive. The number of dilutive stock options and other stock-based awards as of May 31, 2020 would have been approximately 56,000 shares.

Segment Information

9 Months Ended

May 31, 2020

Segment Information [Abstract]

Segment Information

NOTE 11 – SEGMENT INFORMATION

Segment Information

Our sales are primarily comprised of training and consulting services. Our internal reporting and operating structure is currently organized around two divisions. The Enterprise Division, which consists of our Direct Office and International Licensee segments and the Education Division, which is comprised of our Education practice. Based on the applicable guidance, our operations are comprised of three reportable segments and a corporate services group. The following is a brief description of our reportable segments:

Direct Offices – Our Direct Office segment has a depth of expertise in helping organizations solve problems that require changes in human behavior, including leadership, productivity, execution, trust, and sales performance. We have a variety of principle-based offerings that help build winning and profitable cultures. This segment includes our sales personnel that serve the United States and Canada; our international sales offices located in Japan, China, the United Kingdom, Australia, Germany, Switzerland, and Austria; our government services sales channel; and our public programs operations.

International Licensees – Our independently owned international licensees provide our offerings and services in countries where we do not have a directly-owned office. These licensee partners allow us to expand the reach of our services to large multinational organizations as well as smaller organizations in their countries. This segment’s results are primarily comprised of royalty revenues received from these licensees.

Education Practice – Centered around the principles found in The Leader in Me, the Education practice is dedicated to helping educational institutions build a culture that will produce great results. We believe these results are manifested by increases in student performance, improved school culture, decreased disciplinary issues, and increased teacher engagement and parental involvement. This segment includes our domestic and international Education practice operations, which are focused on sales to educational institutions such as elementary schools, high schools, and colleges and universities.

Corporate and Other – Our corporate and other information includes leasing operations, shipping and handling revenues, royalty revenues from Franklin Planner Corp. (Note 12), and certain corporate administrative functions.

We have determined that the Company’s chief operating decision maker is the CEO, and the primary measurement tool used in business unit performance analysis is Adjusted EBITDA, which may not be calculated as similarly titled amounts disclosed by other companies. Adjusted EBITDA is a non-GAAP financial measure. For reporting purposes, our consolidated Adjusted EBITDA may be calculated as net loss excluding interest expense, income taxes, depreciation expense, amortization expense, stock-based compensation, and certain other charges such as adjustments for changes in the fair value of contingent liabilities arising from business acquisitions. We reference this non-GAAP financial measure in our decision making because it provides supplemental information that facilitates consistent internal comparisons to the historical operating performance of prior periods and we believe it provides investors with greater transparency to evaluate operational activities and financial results.

Our operations are not capital intensive and we do not own any manufacturing facilities or equipment. Accordingly, we do not allocate assets to the reportable segments for analysis purposes. Interest expense and interest income are primarily generated at the corporate level and are not allocated. Income taxes are likewise calculated and paid on a corporate level (except for entities that operate in foreign jurisdictions) and are not allocated for analysis purposes. We periodically make minor changes to our reporting structure in the normal course of operations. The segment information presented below reflects certain revisions to our reporting structure which occurred during the second quarter of fiscal 2019. Prior period segment information has been revised to conform with our current segment reporting.

We account for the following segment information on the same basis as the accompanying condensed consolidated financial statements (in thousands).



		Sales to
Quarter Ended		External				Adjusted
May 31, 2020		Customers		Gross Profit		EBITDA

Enterprise Division:
Direct offices	$	26,760	$	21,108	$	352
International licensees		708		339		(724)
		27,468		21,447		(372)
Education practice		8,216		4,711		(1,536)
Corporate and eliminations		1,421		663		(1,734)
Consolidated	$	37,105	$	26,821	$	(3,642)

Quarter Ended
May 31, 2019

Enterprise Division:
Direct offices	$	40,387	$	29,836	$	4,520
International licensees		3,014		2,432		1,281
		43,401		32,268		5,801
Education practice		11,088		6,846		(181)
Corporate and eliminations		1,517		550		(2,549)
Consolidated	$	56,006	$	39,664	$	3,071

Three Quarters Ended
May 31, 2020

Enterprise Division:
Direct offices	$	106,844	$	81,221	$	10,796
International licensees		7,120		5,696		2,696
		113,964		86,917		13,492
Education practice		30,190		17,828		(3,707)
Corporate and eliminations		5,309		2,772		(4,410)
Consolidated	$	149,463	$	107,517	$	5,375

Three Quarters Ended
May 31, 2019

Enterprise Division:
Direct offices	$	115,271	$	84,200	$	10,703
International licensees		9,598		7,515		4,127
		124,869		91,715		14,830
Education practice		31,132		18,668		(1,355)
Corporate and eliminations		4,190		1,429		(6,272)
Consolidated	$	160,191	$	111,812	$	7,203

A reconciliation of our consolidated Adjusted EBITDA to consolidated net loss is provided below (in thousands).



	Quarter Ended				Three Quarters Ended
		May 31,		May 31,		May 31,		May 31,
		2020		2019		2020		2019
Segment Adjusted EBITDA	$	(1,908)	$	5,620	$	9,785	$	13,475
Corporate expenses		(1,734)		(2,549)		(4,410)		(6,272)
Consolidated Adjusted EBITDA		(3,642)		3,071		5,375		7,203
Stock-based compensation		5,104		(1,051)		1,460		(3,040)
Decrease (increase) in the fair value of
contingent consideration liabilities		276		(1,069)		367		(1,145)
Gain from insurance proceeds		933		-		933		-
Knowledge Capital wind-down costs		-		-		(389)		-
Licensee transition costs		-		-		-		(488)
Depreciation		(1,652)		(1,556)		(4,925)		(4,806)
Amortization		(1,164)		(1,259)		(3,504)		(3,797)
Loss from operations		(145)		(1,864)		(683)		(6,073)
Interest income		18		8		36		30
Interest expense		(621)		(562)		(1,783)		(1,817)
Discount accretion on related
party receivable		-		-		-		258
Loss before income taxes		(748)		(2,418)		(2,430)		(7,602)
Income tax benefit (provision)		(10,220)		394		(7,985)		704
Net loss	$	(10,968)	$	(2,024)	$	(10,415)	$	(6,898)

Revenue by Category

The following table presents our revenue disaggregated by geographic region (in thousands).



	Quarter Ended				Three Quarters Ended
		May 31,		May 31,		May 31,		May 31,
		2020		2019		2020		2019

Americas	$	32,788	$	44,919	$	119,545	$	125,676
Asia Pacific		2,759		7,914		19,987		24,592
Europe/Middle East/Africa		1,558		3,173		9,931		9,923
	$	37,105	$	56,006	$	149,463	$	160,191

The following table presents our revenue disaggregated by type of service (in thousands).



Quarter Ended		Services and						Leases and
May 31, 2020		Products		Subscriptions		Royalties		Other		Consolidated

Enterprise Division:
Direct offices	$	10,051	$	15,965	$	744	$	-	$	26,760
International licensees		191		-		517		-		708
		10,242		15,965		1,261		-		27,468
Education practice		1,373		6,286		557		-		8,216
Corporate and eliminations		-		-		334		1,087		1,421
Consolidated	$	11,615	$	22,251	$	2,152	$	1,087	$	37,105

Quarter Ended
May 31, 2019

Enterprise Division:
Direct offices	$	26,295	$	13,363	$	729	$	-	$	40,387
International licensees		403		-		2,611		-		3,014
		26,698		13,363		3,340		-		43,401
Education practice		5,065		5,564		459		-		11,088
Corporate and eliminations		-		-		-		1,517		1,517
Consolidated	$	31,763	$	18,927	$	3,799	$	1,517	$	56,006

Three Quarters Ended
May 31, 2020

Enterprise Division:
Direct offices	$	58,946	$	45,425	$	2,473	$	-	$	106,844
International licensees		1,191		-		5,929		-		7,120
		60,137		45,425		8,402		-		113,964
Education practice		7,908		19,296		2,986		-		30,190
Corporate and eliminations		-		-		1,649		3,660		5,309
Consolidated	$	68,045	$	64,721	$	13,037	$	3,660	$	149,463

Three Quarters Ended
May 31, 2019

Enterprise Division:
Direct offices	$	74,405	$	38,453	$	2,413	$	-	$	115,271
International licensees		1,793		-		7,805		-		9,598
		76,198		38,453		10,218		-		124,869
Education practice		11,565		16,644		2,923		-		31,132
Corporate and eliminations		-		-		-		4,190		4,190
Consolidated	$	87,763	$	55,097	$	13,141	$	4,190	$	160,191

Investment In FC Organizational Products	9 Months Ended
Investment In FC Organizational Products	May 31, 2020
Investment In FC Organizational Products [Abstract]
Investment In FC Organizational Products	NOTE 12 – INVESTMENT IN FC ORGANIZATIONAL PRODUCTS We previously owned a 19.5 percent interest in FC Organizational Products (FCOP), an entity that purchased substantially all of our consumer solutions business unit assets in fiscal 2008 for the purpose of selling planners and related organizational products under a comprehensive licensing agreement. On November 4, 2019, FCOP sold substantially all of its assets to Franklin Planner Corporation (FPC), a new unrelated entity, and FCOP was dissolved. FPC is expected to continue FCOP’s business of selling planners and other related consumer products based on the license agreement which granted FCOP the exclusive rights described below. In connection with this transaction, we exchanged approximately $3.2 million of receivables from FCOP to amend the term and royalty provisions of the existing license agreement. The $3.2 million included a $2.6 million note receivable, which represented FCOP’s third-party bank debt that we purchased directly from the bank on the transaction date. The amended license agreement grants the exclusive right to use certain of our trademarks and other intellectual property in connection with certain consumer products and provides us with minimum royalties of approximately $1.3 million per year. We are also entitled to receive additional variable royalties if certain FPC financial metrics exceed specified levels. FPC assumed the amended license agreement from FCOP upon the purchase of FCOP assets. We recorded the $3.2 million consideration for the amendment to the license agreement as a capitalized cost of the license and will reduce our royalty revenue by amortizing this amount over the remainder of the initial term of the license agreement, which ends in approximately 30 years. During the quarter and three quarters ended May 31, 2020, we recognized $0.3 million and $1.6 million of net royalty revenues from the amended license agreement with FPC. We do not have an ownership interest in FPC, do not have any obligation to provide additional subordinated support to FPC, and do not have control over the day-to-day operations of FPC, which primarily consist of the sale of planning products and accessories. We receive payments for royalties and rented space from FPC. At May 31, 2020, we had $1.3 million receivable from FPC and at August 31, 2019, we had $1.0 million receivable from FCOP, each of which are recorded in current assets. Since most of FPC’s sales and cash flows are seasonal and occur between October and January, we expect to receive the majority of the required cash payments for royalties and outstanding receivables during our second and third quarters of each fiscal year. During the second quarter of fiscal 2020, we received $1.9 million of cash from FPC as payment for royalties and reimbursable operating costs.

Subsequent Events

9 Months Ended

May 31, 2020

Subsequent Events [Abstract]

Subsequent Events

NOTE 13 – SUBSEQUENT EVENTS

Amendment to the 2019 Credit Agreement

On July 8, 2020, we entered into the First Modification Agreement to our 2019 Credit Agreement. The primary purpose of the First Modification Agreement is to provide alternative borrowing covenants for the fiscal quarters ending August 31, 2020 through May 31, 2021. These new covenants include the following:

Minimum Liquidity – We must maintain consolidated minimum liquidity of not less than $13.0 million from August 31, 2020 through February 28, 2021 and $8.0 million at May 31, 2021.

Minimum Adjusted EBITDA – We must maintain rolling four-quarter Adjusted EBITDA not less than the amount set forth below at the end of the specified quarter (in thousands).



Quarter Ending		Amount
August 31, 2020	$	11,000
November 30, 2020		8,500
February 28, 2021		5,000
May 31, 2021		15,000

Adjusted EBITDA for purposes of this calculation is not the same as generally reported by the Company in its quarterly earnings. The amounts in the table above exclude amortization of capitalized development costs which is classified in cost of sales.

Capital Expenditures – We may not make capital expenditures, including capitalized development costs, in an amount exceeding $8.5 million in aggregate for any fiscal year.

The previously existing financial covenants remain in effect at all times other than the quarterly periods ending from August 31, 2020 through May 31, 2021.

In addition to the new financial covenants described above, we will repay the amount previously drawn on our revolving line of credit and we will be prohibited from holding domestic cash balances in excess of $5.0 million at the time of any borrowing on the revolving credit facility. The available credit on the revolving line of credit remains the same as under the 2019 Credit Agreement. We are also prohibited from making certain restricted payments, including dividend payments on our common stock and open-market purchases of our common stock for treasury until we have been in compliance with the previously existing financial covenants for two consecutive quarters.

The Company’s interest rate under the First Amendment will increase from LIBOR plus 1.85% to LIBOR plus 3.0% and the unused credit commitment fee will increase from to 0.2% to 0.5%.

Basis Of Presentation (Policy)

9 Months Ended

May 31, 2020

Basis Of Presentation [Abstract]

General

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

We are committed to, and measure ourselves by, our clients’ achievement of transformational results.

Our fiscal year ends on August 31 of each year and our fiscal quarters end on the last day of November, February, and May of each year.

The results of operations for the quarter ended May 31, 2020 are not necessarily indicative of results expected for the entire fiscal year ending August 31, 2020, or for any future periods.

Reclassifications

Note On The COVID-19 Pandemic

Note on the COVID-19 Pandemic

Accounting Pronouncements Issued And Adopted

Accounting Pronouncements Issued and Adopted

Accounting Pronouncements Issued Not Yet Adopted

Credit Losses on Financial Instruments

Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement

Inventories (Tables)

9 Months Ended

May 31, 2020

Inventories [Abstract]

Components Of Inventories



		May 31,		August 31,
		2020		2019
Finished goods	$	3,086	$	3,434
Raw materials		20		47
	$	3,106	$	3,481

Term Notes Payable And Line Of Credit (Tables)

9 Months Ended

May 31, 2020

Term Notes Payable And Line Of Credit [Abstract]

Future Principal Payments By Fiscal Year



YEAR ENDING AUGUST 31,		Amount
2020	$	1,250
2021		5,000
2022		5,000
2023		5,000
2024		5,000
	$	21,250

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Fair Value Of Financial Instruments (Tables)

9 Months Ended

May 31, 2020

Fair Value Of Financial Instruments [Abstract]

Schedule Of Contingent Consideration Liability



	Jhana		RGP		Total
Balance at August 31, 2019	$	3,468	$	1,761	$	5,229
Change in fair value		98		(7)		91
Payments		(282)		(500)		(782)
Balance at November 30, 2019		3,284		1,254		4,538
Change in fair value		153		(335)		(182)
Payments		(129)		-		(129)
Balance at February 29, 2020		3,308		919		4,227
Change in fair value		(102)		(174)		(276)
Payments		(256)		-		(256)
Balance at May 31, 2020	$	2,950	$	745	$	3,695

Leases (Tables)

9 Months Ended

May 31, 2020

Leases [Abstract]

Assets And Liabilities Related To Operating Leases



	Balance Sheet		May 31,
	Caption		2020
Assets:
Operating lease right of use assets	Other long-term assets	$	1,383

Liabilities:
Current:
Operating lease liabilities	Accrued liabilities		843
Long-Term:
Operating lease liabilities	Other long-term liabilities		540
		$	1,383

Weighted Average Remaining Lease Term:
Operating leases (years)			2.6

Weighted Average Discount Rate:
Operating leases			4.2	%

Future Minimum Lease Payments Under Operating Leases



YEAR ENDING AUGUST 31,		Amount
Remainder of 2020	$	271
2021		724
2022		197
2023		112
2024		90
Thereafter		94
Total operating lease payments		1,488
Less imputed interest		(105)
Present value of operating lease liabilities	$	1,383

Future Minimum Lease Payments From Sublease



YEAR ENDING AUGUST 31,		Amount
Remainder of 2020	$	979
2021		3,944
2022		3,699
2023		2,065
2024		1,527
Thereafter		1,275
	$	13,489

Stock-Based Compensation (Tables)

9 Months Ended

May 31, 2020

Stock-Based Compensation [Abstract]

Total Cost Of Stock-Based Compensation



		Quarter Ended			Three Quarters Ended
		May 31,		May 31,		May 31,		May 31,
		2020		2019		2020		2019
Long-term incentive awards	$	(5,326)	$	826	$	(2,124)	$	2,384
Restricted stock awards		175		175		525		525
Employee stock purchase plan		47		50		139		131
	$	(5,104)	$	1,051	$	(1,460)	$	3,040

Stock Option Activity



			Weighted
			Avg. Exercise
	Number of		Price Per
	Stock Options		Share
Outstanding at August 31, 2019	568,750	$	11.67
Granted	-		-
Exercised	(350,000)		(11.73)
Forfeited	-		-

Outstanding at May 31, 2020	218,750	$	11.57

Options vested and exercisable at
May 31, 2020	218,750	$	11.57

Restricted Stock Award Activity



			Weighted-Average
			Grant Date
	Number of		Fair Value
	Shares		Per Share
Restricted stock awards at
August 31, 2019	28,525	$	24.54
Granted	21,420		32.68
Forfeited	-		-
Vested	(28,525)		24.54
Restricted stock awards at
May 31, 2020	21,420	$	32.68

Loss Per Share (Tables)

9 Months Ended

May 31, 2020

Loss Per Share [Abstract]

Computation Of Loss Per Share



	Quarter Ended				Three Quarters Ended
		May 31,		May 31,		May 31,		May 31,
		2020		2019		2020		2019
Numerator for basic and
diluted loss per share:
Net loss	$	(10,968)	$	(2,024)	$	(10,415)	$	(6,898)

Denominator for basic and
diluted loss per share:
Basic weighted average shares
outstanding		13,869		13,963		13,897		13,939
Effect of dilutive securities:
Stock options and other
stock-based awards		-		-		-		-
Diluted weighted average
shares outstanding		13,869		13,963		13,897		13,939

EPS Calculations:
Net loss per share:
Basic and diluted	$	(0.79)	$	(0.14)	$	(0.75)	$	(0.49)

Segment Information (Tables)

9 Months Ended

May 31, 2020

Segment Information [Abstract]

Schedule Of Segment Operations



		Sales to
Quarter Ended		External				Adjusted
May 31, 2020		Customers		Gross Profit		EBITDA

Enterprise Division:
Direct offices	$	26,760	$	21,108	$	352
International licensees		708		339		(724)
		27,468		21,447		(372)
Education practice		8,216		4,711		(1,536)
Corporate and eliminations		1,421		663		(1,734)
Consolidated	$	37,105	$	26,821	$	(3,642)

Quarter Ended
May 31, 2019

Enterprise Division:
Direct offices	$	40,387	$	29,836	$	4,520
International licensees		3,014		2,432		1,281
		43,401		32,268		5,801
Education practice		11,088		6,846		(181)
Corporate and eliminations		1,517		550		(2,549)
Consolidated	$	56,006	$	39,664	$	3,071

Three Quarters Ended
May 31, 2020

Enterprise Division:
Direct offices	$	106,844	$	81,221	$	10,796
International licensees		7,120		5,696		2,696
		113,964		86,917		13,492
Education practice		30,190		17,828		(3,707)
Corporate and eliminations		5,309		2,772		(4,410)
Consolidated	$	149,463	$	107,517	$	5,375

Three Quarters Ended
May 31, 2019

Enterprise Division:
Direct offices	$	115,271	$	84,200	$	10,703
International licensees		9,598		7,515		4,127
		124,869		91,715		14,830
Education practice		31,132		18,668		(1,355)
Corporate and eliminations		4,190		1,429		(6,272)
Consolidated	$	160,191	$	111,812	$	7,203

Reconciliation Of Adjusted EBITDA



	Quarter Ended				Three Quarters Ended
		May 31,		May 31,		May 31,		May 31,
		2020		2019		2020		2019
Segment Adjusted EBITDA	$	(1,908)	$	5,620	$	9,785	$	13,475
Corporate expenses		(1,734)		(2,549)		(4,410)		(6,272)
Consolidated Adjusted EBITDA		(3,642)		3,071		5,375		7,203
Stock-based compensation		5,104		(1,051)		1,460		(3,040)
Decrease (increase) in the fair value of
contingent consideration liabilities		276		(1,069)		367		(1,145)
Gain from insurance proceeds		933		-		933		-
Knowledge Capital wind-down costs		-		-		(389)		-
Licensee transition costs		-		-		-		(488)
Depreciation		(1,652)		(1,556)		(4,925)		(4,806)
Amortization		(1,164)		(1,259)		(3,504)		(3,797)
Loss from operations		(145)		(1,864)		(683)		(6,073)
Interest income		18		8		36		30
Interest expense		(621)		(562)		(1,783)		(1,817)
Discount accretion on related
party receivable		-		-		-		258
Loss before income taxes		(748)		(2,418)		(2,430)		(7,602)
Income tax benefit (provision)		(10,220)		394		(7,985)		704
Net loss	$	(10,968)	$	(2,024)	$	(10,415)	$	(6,898)

Disaggregation Of Revenue

The following table presents our revenue disaggregated by geographic region (in thousands).



	Quarter Ended				Three Quarters Ended
		May 31,		May 31,		May 31,		May 31,
		2020		2019		2020		2019

Americas	$	32,788	$	44,919	$	119,545	$	125,676
Asia Pacific		2,759		7,914		19,987		24,592
Europe/Middle East/Africa		1,558		3,173		9,931		9,923
	$	37,105	$	56,006	$	149,463	$	160,191

The following table presents our revenue disaggregated by type of service (in thousands).



Quarter Ended		Services and						Leases and
May 31, 2020		Products		Subscriptions		Royalties		Other		Consolidated

Enterprise Division:
Direct offices	$	10,051	$	15,965	$	744	$	-	$	26,760
International licensees		191		-		517		-		708
		10,242		15,965		1,261		-		27,468
Education practice		1,373		6,286		557		-		8,216
Corporate and eliminations		-		-		334		1,087		1,421
Consolidated	$	11,615	$	22,251	$	2,152	$	1,087	$	37,105

Quarter Ended
May 31, 2019

Enterprise Division:
Direct offices	$	26,295	$	13,363	$	729	$	-	$	40,387
International licensees		403		-		2,611		-		3,014
		26,698		13,363		3,340		-		43,401
Education practice		5,065		5,564		459		-		11,088
Corporate and eliminations		-		-		-		1,517		1,517
Consolidated	$	31,763	$	18,927	$	3,799	$	1,517	$	56,006

Three Quarters Ended
May 31, 2020

Enterprise Division:
Direct offices	$	58,946	$	45,425	$	2,473	$	-	$	106,844
International licensees		1,191		-		5,929		-		7,120
		60,137		45,425		8,402		-		113,964
Education practice		7,908		19,296		2,986		-		30,190
Corporate and eliminations		-		-		1,649		3,660		5,309
Consolidated	$	68,045	$	64,721	$	13,037	$	3,660	$	149,463

Three Quarters Ended
May 31, 2019

Enterprise Division:
Direct offices	$	74,405	$	38,453	$	2,413	$	-	$	115,271
International licensees		1,793		-		7,805		-		9,598
		76,198		38,453		10,218		-		124,869
Education practice		11,565		16,644		2,923		-		31,132
Corporate and eliminations		-		-		-		4,190		4,190
Consolidated	$	87,763	$	55,097	$	13,141	$	4,190	$	160,191

Subsequent Events (Tables)

9 Months Ended

May 31, 2020

Subsequent Events [Abstract]

Schedule Of Minimum Adjusted EBITDA



Quarter Ending		Amount
August 31, 2020	$	11,000
November 30, 2020		8,500
February 28, 2021		5,000
May 31, 2021		15,000

Basis Of Presentation (Narrative) (Details)	3 Months Ended	9 Months Ended
Basis Of Presentation (Narrative) (Details)	May 31, 2020 USD ($) country	May 31, 2020 USD ($) country item	Sep. 01, 2019 USD ($)
Business Acquisition [Line Items]
Number of areas of expertise \| item		7
Number of important distinguishing characteristics from competitors \| item		3
Impairment charges	$ 0
Operating lease liabilities	1,383,000	$ 1,383,000
Operating lease right of use assets	$ 1,383,000	$ 1,383,000
Accounting Standards Update 2016-02 [Member]
Business Acquisition [Line Items]
Operating lease liabilities			$ 1,500,000
Operating lease right of use assets			$ 1,500,000
Minimum [Member]
Business Acquisition [Line Items]
Number of countries in which entity operates \| country	140	140

Inventories (Components Of Inventories) (Details) - USD ($) $ in Thousands	May 31, 2020	Aug. 31, 2019
Inventories [Abstract]
Finished goods	$ 3,086	$ 3,434
Raw materials	20	47
Inventories	$ 3,106	$ 3,481

Term Notes Payable And Line Of Credit (Narrative) (Details) - USD ($)	9 Months Ended
	May 31, 2020	Nov. 30, 2019	Aug. 31, 2019
Debt Instrument [Line Items]
Line of credit	$ 14,870,000
Revolving Line Of Credit [Member]
Debt Instrument [Line Items]
Payable date	Aug. 01, 2024
Term Loan [Member] \| Credit 2019 Agreement [Member]
Debt Instrument [Line Items]
Loan amount		$ 5,000,000	$ 20,000,000
Term Loan [Member] \| Credit 2019 Agreement [Member] \| Extended Maturity [Member]
Debt Instrument [Line Items]
Maturity date	Aug. 31, 2024
Maturity term	1 year
Term Loan [Member] \| Maximum [Member] \| Credit 2019 Agreement [Member]
Debt Instrument [Line Items]
Loan amount	$ 25,000,000

Term Notes Payable And Line Of Credit (Future Principal Payments By Fiscal Year) (Details) - Credit 2019 Agreement [Member] - Term Loan [Member] $ in Thousands	May 31, 2020 USD ($)
Debt Instrument [Line Items]
2020	$ 1,250
2021	5,000
2022	5,000
2023	5,000
2024	5,000
Total	$ 21,250

Fair Value Of Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands	May 31, 2020	Feb. 29, 2020	Nov. 30, 2019	Aug. 31, 2019
Contingent consideration	$ 3,695	$ 4,227	$ 4,538	$ 5,229
Jhana [Member]
Contingent consideration	2,950	3,308	3,284	3,468
Jhana [Member] \| Accrued Liabilities [Member]
Contingent consideration	800
RGP [Member]
Contingent consideration	745	$ 919	$ 1,254	$ 1,761
RGP [Member] \| Accrued Liabilities [Member]
Contingent consideration	$ 500

Fair Value Of Financial Instruments (Schedule Of Contingent Consideration Liability) (Details) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended
	May 31, 2020	Feb. 29, 2020	Nov. 30, 2019	May 31, 2019	May 31, 2020	May 31, 2019
Business Acquisition, Contingent Consideration [Line Items]
Contingent Liability at beginning	$ 4,227	$ 4,538	$ 5,229		$ 5,229
Change in fair value	(276)	(182)	91	$ 1,069	(367)	$ 1,145
Payments	(256)	(129)	(782)
Contingent Liability at ending	3,695	4,227	4,538		3,695
Jhana [Member]
Business Acquisition, Contingent Consideration [Line Items]
Contingent Liability at beginning	3,308	3,284	3,468		3,468
Change in fair value	(102)	153	98
Payments	(256)	(129)	(282)
Contingent Liability at ending	2,950	3,308	3,284		2,950
RGP [Member]
Business Acquisition, Contingent Consideration [Line Items]
Contingent Liability at beginning	919	1,254	1,761		1,761
Change in fair value	(174)	(335)	(7)
Payments			(500)
Contingent Liability at ending	$ 745	$ 919	$ 1,254		$ 745

Leases (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Leases (Narrative) (Details) - USD ($) $ in Millions	May 31, 2020	May 31, 2019	May 31, 2020	May 31, 2019
Lessee, Lease, Description [Line Items]
Lease expense associated with operating leases	$ 0.4	$ 0.4	$ 1.2	$ 1.2
Sublease revenue	$ 1.0	$ 1.0	$ 2.9	$ 2.9
Minimum [Member]
Lessee, Lease, Description [Line Items]
Operating lease term	1 year		1 year
Maximum [Member]
Lessee, Lease, Description [Line Items]
Operating lease term	5 years		5 years
Corporate Campus [Member]
Lessee, Lease, Description [Line Items]
Cost basis	$ 36.0		$ 36.0
Carrying value	$ 6.2		$ 6.2

Leases (Assets And Liabilities Related To Operating Leases) (Details) $ in Thousands	May 31, 2020 USD ($)
Assets:
Operating lease right of use assets	$ 1,383
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:OtherAssetsNoncurrent
Liabilities:
Current: Operating lease liabilities	$ 843
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:AccruedLiabilitiesCurrent
Long-Term: Operating lease liabilities	$ 540
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	us-gaap:OtherLiabilitiesNoncurrent
Operating lease liabilities	$ 1,383
Weighted Average Remaining Lease Term: Operating leases (years)	2 years 7 months 6 days
Weighted Average Discount Rate: Operating leases	4.20%

Leases (Future Minimum Lease Payments Under Operating Leases) (Details) $ in Thousands	May 31, 2020 USD ($)
Leases [Abstract]
Remainder of 2020	$ 271
2021	724
2022	197
2023	112
2024	90
Thereafter	94
Total operating lease payments	1,488
Less imputed interest	(105)
Present value of operating lease liabilities	$ 1,383

Leases (Future Minimum Lease Payments From Sublease) (Details) $ in Thousands	May 31, 2020 USD ($)
Operating Leases [Abstract]
Remainder of 2020	$ 979
2021	3,944
2022	3,699
2023	2,065
2024	1,527
Thereafter	1,275
Total	$ 13,489

Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended
	Dec. 31, 2019	Dec. 09, 2019
Class of Stock [Line Items]
Common stock shares purchased		284,608
Price per share		$ 35.1361
Purchase price		$ 10.1
Knowledge Capital [Member]
Class of Stock [Line Items]
Number of common stock shares held	2,800,000
Minimum [Member] \| Knowledge Capital [Member]
Class of Stock [Line Items]
Investment period	20 years

Revenue Recognition (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	May 31, 2020	May 31, 2020	Aug. 31, 2019
Deferred revenue	$ 53.1	$ 53.1	$ 65.8
Other long-term liabilities	2.4	2.4	3.6
Remaining performance obligations	77.3	77.3
Subscription [Member]
Deferred revenue	43.9	43.9	$ 58.2
Deferred revenue recognized	$ 22.2	$ 64.7

Stock-Based Compensation (Narrative) (Details)		3 Months Ended		9 Months Ended
Stock-Based Compensation (Narrative) (Details)	Oct. 18, 2019 item shares	May 31, 2020 USD ($) shares	Feb. 29, 2020 USD ($)	May 31, 2020 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued under terms of the award				281,479
Fiscal 2020 Long Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of tranches \| item	3
Expiration date	Aug. 31, 2022
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Price of common stock as a percent of the average fair market value				85.00%
Shares issued to employee stock purchase plan participants		10,948		26,375
Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares withheld for tax				103,117
Shares withheld for tax, fair value \| $				$ 3,600,000
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares withheld for tax				102,656
Shares withheld for tax, fair value \| $				$ 3,600,000
Expiration date				Jan. 31, 2021
Aggregate intrinsic value \| $			$ 8,000,000
Income tax benefit from exercise of stock options \| $			$ 1,800,000
Restricted Stock Awards [Member] \| Director [Member] \| Fiscal 2020 Restricted Stock Award Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Whole-share grant per eligible director \| $				$ 100,000
Vesting period of awards				1 year
Restricted Stock Awards [Member] \| Board of Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense \| $		$ 400,000		$ 400,000
Time-Based Award [Member] \| Fiscal 2020 Long Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of tranches \| item	1
Performance-Based Award [Member] \| Fiscal 2020 Long Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of tranches \| item	2
Tranche One [Member] \| Time-Based Award [Member] \| Fiscal 2020 Long Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of shares plan participants are entitled to	25.00%
Vesting period of awards	3 years
Shares issued under terms of the award	25,101
Tranche Two and Three [Member] \| Performance-Based Award [Member] \| Fiscal 2020 Long Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of performance-based objectives	100.00%
Shares issued under terms of the award	75,315
Tranche Two and Three [Member] \| Performance-Based Award [Member] \| Minimum [Member] \| Fiscal 2020 Long Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of performance award to be granted	50.00%
Tranche Two and Three [Member] \| Performance-Based Award [Member] \| Maximum [Member] \| Fiscal 2020 Long Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of performance award to be granted	200.00%
New shares granted	150,630

Stock-Based Compensation (Total Cost Of Stock-Based Compensation) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2020	May 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	$ (5,104)	$ 1,051	$ (1,460)	$ 3,040
Long-Term Incentive Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	(5,326)	826	(2,124)	2,384
Restricted Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	175	175	525	525
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	$ 47	$ 50	$ 139	$ 131

Stock-Based Compensation (Stock Option Activity) (Details) - Stock Options [Member]	9 Months Ended
	May 31, 2020 $ / shares shares
Number of Stock Options, Outstanding at August 31, 2019 \| shares	568,750
Number of Stock Options, Granted \| shares
Number of Stock Options, Exercised \| shares	(350,000)
Number of Stock Options, Forfeited \| shares
Number of Stock Options, Outstanding at May 31, 2020 \| shares	218,750
Number of Stock Options, Options vested and exercisable at May 31, 2020 \| shares	218,750
Weighted Average Exercise Price Per Share, Outstanding at August 31, 2019 \| $ / shares	$ 11.67
Weighted Average Exercise Price Per Share, Granted \| $ / shares
Weighted Average Exercise Price Per Share, Exercised \| $ / shares	(11.73)
Weighted Average Exercise Price Per Share, Forfeited \| $ / shares
Weighted Average Exercise Price Per Share, Outstanding at May 31, 2020 \| $ / shares	11.57
Weighted Average Exercise Price Per Share, Options vested and exercisable at May 31, 2020 \| $ / shares	$ 11.57

Stock-Based Compensation (Restricted Stock Award Activity) (Details) - Restricted Stock Awards [Member]	9 Months Ended
	May 31, 2020 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock awards at August 31, 2019, Number of Shares \| shares	28,525
Granted, Number of Shares \| shares	21,420
Forfeited, Number of Shares \| shares
Vested, Number of Shares \| shares	(28,525)
Restricted stock awards at May 31, 2020, Number of Shares \| shares	21,420
Restricted stock awards at August 31, 2019, Weighted-Average Grant Date Fair Value Per Share \| $ / shares	$ 24.54
Granted, Weighted-Average Grant Date Fair Value Per Share \| $ / shares	32.68
Forfeited, Weighted-Average Grant Date Fair Value Per Share \| $ / shares
Vested, Weighted-Average Grant Date Fair Value Per Share \| $ / shares	24.54
Restricted stock awards at May 31, 2020, Weighted-Average Grant Date Fair Value Per Share \| $ / shares	$ 32.68

Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	May 31, 2020	May 31, 2019	May 31, 2020	May 31, 2019
Income Taxes [Abstract]
Income tax expense	$ 10,220	$ (394)	$ 7,985	$ (704)
Pre-tax loss	(748)	$ (2,418)	$ (2,430)	$ (7,602)
Effective tax rate			329.00%
Income tax expense, increase deferred tax asset valuation allowance			$ 10,200
Valuation allowance against deferred tax assets	$ 10,200		$ 10,200

Loss Per Share (Narrative) (Details) - shares	3 Months Ended	9 Months Ended
Loss Per Share (Narrative) (Details) - shares	May 31, 2020	May 31, 2020
Loss Per Share [Abstract]
Potentially dilutive securities were included in the calculation of diluted loss per share	0	0
Number of dilutive stock options and other stock-based awards, shares		56,000

Loss Per Share (Computation Of Loss Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2020	May 31, 2019
Numerator for basic and diluted loss per share:
Net loss	$ (10,968)	$ (2,024)	$ (10,415)	$ (6,898)
Denominator for basic and diluted loss per share:
Basic weighted average shares outstanding	13,869	13,963	13,897	13,939
Effect of dilutive securities:
Stock options and other stock-based awards
Diluted weighted average shares outstanding	13,869	13,963	13,897	13,939
EPS Calculations:
Net loss per share: Basic and diluted	$ (0.79)	$ (0.14)	$ (0.75)	$ (0.49)

- 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)	9 Months Ended
Segment Information (Narrative) (Details)	May 31, 2020 segment item
Segment Information [Abstract]
Number of divisions	2
Number of operating reportable segments \| segment	3
Number of corporate services group	1

Segment Information (Schedule Of Segment Operations) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2020	May 31, 2019
Segment Reporting Information [Line Items]
Sales to External Customers	$ 37,105	$ 56,006	$ 149,463	$ 160,191
Gross Profit	26,821	39,664	107,517	111,812
Adjusted EBITDA	(3,642)	3,071	5,375	7,203
Corporate And Eliminations [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	1,421	1,517	5,309	4,190
Gross Profit	663	550	2,772	1,429
Adjusted EBITDA	(1,734)	(2,549)	(4,410)	(6,272)
Operating Segments [Member]
Segment Reporting Information [Line Items]
Adjusted EBITDA	(1,908)	5,620	9,785	13,475
Operating Segments [Member] \| Enterprise Division [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	27,468	43,401	113,964	124,869
Gross Profit	21,447	32,268	86,917	91,715
Adjusted EBITDA	(372)	5,801	13,492	14,830
Operating Segments [Member] \| Education Practice [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	8,216	11,088	30,190	31,132
Gross Profit	4,711	6,846	17,828	18,668
Adjusted EBITDA	(1,536)	(181)	(3,707)	(1,355)
Operating Segments [Member] \| Direct Offices [Member] \| Enterprise Division [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	26,760	40,387	106,844	115,271
Gross Profit	21,108	29,836	81,221	84,200
Adjusted EBITDA	352	4,520	10,796	10,703
Operating Segments [Member] \| International Licensees [Member] \| Enterprise Division [Member]
Segment Reporting Information [Line Items]
Sales to External Customers	708	3,014	7,120	9,598
Gross Profit	339	2,432	5,696	7,515
Adjusted EBITDA	$ (724)	$ 1,281	$ 2,696	$ 4,127

Segment Information (Reconciliation Of Adjusted EBITDA) (Details) - USD ($)	3 Months Ended				9 Months Ended
	May 31, 2020	Feb. 29, 2020	Nov. 30, 2019	May 31, 2019	May 31, 2020	May 31, 2019
Segment Reporting Information [Line Items]
Consolidated Adjusted EBITDA	$ (3,642,000)			$ 3,071,000	$ 5,375,000	$ 7,203,000
Stock-based compensation expense	5,104,000			(1,051,000)	1,460,000	(3,040,000)
Decrease (increase) in the fair value of contingent consideration liabilities	276,000	$ 182,000	$ (91,000)	(1,069,000)	367,000	(1,145,000)
Gain from insurance proceeds	933,000				933,000
Knowledge Capital wind-down costs					(389,000)
Licensee transition costs						(488,000)
Impaired assets	0
Depreciation	(1,652,000)			(1,556,000)	(4,925,000)	(4,806,000)
Amortization	(1,164,000)			(1,259,000)	(3,504,000)	(3,797,000)
Loss from operations	(145,000)			(1,864,000)	(683,000)	(6,073,000)
Interest income	18,000			8,000	36,000	30,000
Interest expense	(621,000)			(562,000)	(1,783,000)	(1,817,000)
Discount accretion on related party receivable						258,000
Loss before income taxes	(748,000)			(2,418,000)	(2,430,000)	(7,602,000)
Income tax benefit (provision)	(10,220,000)			394,000	(7,985,000)	704,000
Net loss	(10,968,000)			(2,024,000)	(10,415,000)	(6,898,000)
Operating Segments [Member]
Segment Reporting Information [Line Items]
Consolidated Adjusted EBITDA	(1,908,000)			5,620,000	9,785,000	13,475,000
Corporate And Eliminations [Member]
Segment Reporting Information [Line Items]
Consolidated Adjusted EBITDA	$ (1,734,000)			$ (2,549,000)	$ (4,410,000)	$ (6,272,000)

Segment Information (Disaggregation Of Revenue By Geographic Region) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2020	May 31, 2019
Disaggregation of Revenue [Line Items]
Revenue	$ 37,105	$ 56,006	$ 149,463	$ 160,191
Americas [Member]
Disaggregation of Revenue [Line Items]
Revenue	32,788	44,919	119,545	125,676
Asia Pacific [Member]
Disaggregation of Revenue [Line Items]
Revenue	2,759	7,914	19,987	24,592
Europe/Middle East/Africa [Member]
Disaggregation of Revenue [Line Items]
Revenue	$ 1,558	$ 3,173	$ 9,931	$ 9,923

Segment Information (Disaggregation Of Revenue By Type Of Service) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 31, 2020	May 31, 2019	May 31, 2020	May 31, 2019
Disaggregation of Revenue [Line Items]
Revenue	$ 37,105	$ 56,006	$ 149,463	$ 160,191
Corporate And Eliminations [Member]
Disaggregation of Revenue [Line Items]
Revenue	1,421	1,517	5,309	4,190
Services And Products [Member]
Disaggregation of Revenue [Line Items]
Revenue	11,615	31,763	68,045	87,763
Subscriptions [Member]
Disaggregation of Revenue [Line Items]
Revenue	22,251	18,927	64,721	55,097
Royalties [Member]
Disaggregation of Revenue [Line Items]
Revenue	2,152	3,799	13,037	13,141
Royalties [Member] \| Corporate And Eliminations [Member]
Disaggregation of Revenue [Line Items]
Revenue	334		1,649
Leases And Other [Member]
Disaggregation of Revenue [Line Items]
Revenue	1,087	1,517	3,660	4,190
Leases And Other [Member] \| Corporate And Eliminations [Member]
Disaggregation of Revenue [Line Items]
Revenue	1,087	1,517	3,660	4,190
Operating Segments [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	27,468	43,401	113,964	124,869
Operating Segments [Member] \| Education Practice [Member]
Disaggregation of Revenue [Line Items]
Revenue	8,216	11,088	30,190	31,132
Operating Segments [Member] \| Direct Offices [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	26,760	40,387	106,844	115,271
Operating Segments [Member] \| International Licensees [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	708	3,014	7,120	9,598
Operating Segments [Member] \| Services And Products [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	10,242	26,698	60,137	76,198
Operating Segments [Member] \| Services And Products [Member] \| Education Practice [Member]
Disaggregation of Revenue [Line Items]
Revenue	1,373	5,065	7,908	11,565
Operating Segments [Member] \| Services And Products [Member] \| Direct Offices [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	10,051	26,295	58,946	74,405
Operating Segments [Member] \| Services And Products [Member] \| International Licensees [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	191	403	1,191	1,793
Operating Segments [Member] \| Subscriptions [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	15,965	13,363	45,425	38,453
Operating Segments [Member] \| Subscriptions [Member] \| Education Practice [Member]
Disaggregation of Revenue [Line Items]
Revenue	6,286	5,564	19,296	16,644
Operating Segments [Member] \| Subscriptions [Member] \| Direct Offices [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	15,965	13,363	45,425	38,453
Operating Segments [Member] \| Royalties [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	1,261	3,340	8,402	10,218
Operating Segments [Member] \| Royalties [Member] \| Education Practice [Member]
Disaggregation of Revenue [Line Items]
Revenue	557	459	2,986	2,923
Operating Segments [Member] \| Royalties [Member] \| Direct Offices [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	744	729	2,473	2,413
Operating Segments [Member] \| Royalties [Member] \| International Licensees [Member] \| Enterprise Division [Member]
Disaggregation of Revenue [Line Items]
Revenue	$ 517	$ 2,611	$ 5,929	$ 7,805

Investment In FC Organizational Products (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	May 31, 2020	Feb. 29, 2020	May 31, 2020	Nov. 04, 2019	Aug. 31, 2019
Related Party Transaction [Line Items]
Receivable from related party				$ 3.2
Note receivable purchased from FCOP's third-party bank				$ 2.6
Minimum royalties	$ 1.3		$ 1.3
Term of license agreement			30 years
License Contract [Member]
Related Party Transaction [Line Items]
Capitalized contract cost	$ 3.2		$ 3.2
FCOP [Member]
Related Party Transaction [Line Items]
Percent ownership interest in related party	19.50%		19.50%
Receivable from related party					$ 1.0
FPC [Member]
Related Party Transaction [Line Items]
Receivable from related party	$ 1.3		$ 1.3
Cash from related parties		$ 1.9
Royalty revenue	$ 0.3		$ 1.6

Subsequent Events (Narrative) (Details) - Credit 2019 Agreement [Member] - First Modification Agreement [Member] - Subsequent Event [Member] - USD ($) $ in Millions	Jul. 08, 2020	Jul. 07, 2020
Subsequent Event [Line Items]
Capital expenditures	$ 8.5
Domestic cash balances, prohibited holding amount	$ 5.0
Percentage added to LIBOR rate	3.00%	1.85%
Unused credit commitment fee	0.50%	0.20%
Minimum [Member] \| August 31, 2020 Through May 31, 2021 [Member]
Subsequent Event [Line Items]
Minimum liquidity	$ 13.0
Minimum [Member] \| May 31, 2021 [Member]
Subsequent Event [Line Items]
Minimum liquidity	$ 8.0

Subsequent Events (Schedule Of Minimum Adjusted EBITDA) (Details) - Subsequent Event [Member] $ in Thousands	Jul. 08, 2020 USD ($)
August 31, 2020 [Member]
Subsequent Event [Line Items]
Minimum Adjusted EBITDA	$ 11,000
November 30, 2020 [Member]
Subsequent Event [Line Items]
Minimum Adjusted EBITDA	8,500
February 28, 2021 [Member]
Subsequent Event [Line Items]
Minimum Adjusted EBITDA	5,000
May 31, 2021 [Member]
Subsequent Event [Line Items]
Minimum Adjusted EBITDA	$ 15,000

Stock-Based Compensation (Stock Option Activity) (Details) - Stock Options [Member]	9 Months Ended
	May 31, 2020 $ / shares shares
Number of Stock Options, Outstanding at August 31, 2019 \| shares	568,750
Number of Stock Options, Granted \| shares
Number of Stock Options, Exercised \| shares	(350,000)
Number of Stock Options, Forfeited \| shares
Number of Stock Options, Outstanding at May 31, 2020 \| shares	218,750
Number of Stock Options, Options vested and exercisable at May 31, 2020 \| shares	218,750
Weighted Average Exercise Price Per Share, Outstanding at August 31, 2019 \| $ / shares	$ 11.67
Weighted Average Exercise Price Per Share, Granted \| $ / shares
Weighted Average Exercise Price Per Share, Exercised \| $ / shares	(11.73)
Weighted Average Exercise Price Per Share, Forfeited \| $ / shares
Weighted Average Exercise Price Per Share, Outstanding at May 31, 2020 \| $ / shares	11.57
Weighted Average Exercise Price Per Share, Options vested and exercisable at May 31, 2020 \| $ / shares	$ 11.57