View Filing Data

Document And Entity Information - shares	9 Months Ended
Document And Entity Information - shares	May 30, 2015	Jun. 30, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	May 30, 2015
Amendment Flag	false
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2015
Entity Registrant Name	FRANKLIN COVEY CO
Entity Central Index Key	0000886206
Current Fiscal Year End Date	--08-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		16,564,200

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	May 30, 2015	Aug. 31, 2014
Current assets:
Cash and cash equivalents	$ 13,795	$ 10,483
Accounts receivable, less allowance for doubtful accounts of $964 and $918	50,017	61,490
Receivable from related party	1,888	1,851
Inventories	4,934	6,367
Income taxes receivable	1,301	2,432
Deferred income tax assets	4,229	4,340
Prepaid expenses and other current assets	5,225	6,053
Total current assets	81,389	93,016
Property and equipment, net	15,731	17,271
Intangible assets, net	54,358	57,177
Goodwill	19,903	19,641
Long-term receivable from related party	1,505	3,296
Other long-term assets	12,954	14,785
Total assets	185,840	205,186
Current liabilities:
Current portion of financing obligation	1,428	1,298
Accounts payable	6,692	12,001
Accrued liabilities	20,222	29,586
Total current liabilities	28,342	42,885
Financing obligation, less current portion	24,992	26,078
Other liabilities	3,748	3,934
Deferred income tax liabilities	5,322	5,575
Total liabilities	62,404	78,472
Shareholders' equity:
Common stock, $.05 par value; 40,000 shares authorized, 27,056 shares issued	1,353	1,353
Additional paid-in capital	207,533	207,148
Retained earnings	61,943	58,496
Accumulated other comprehensive income	508	1,451
Treasury stock at cost, 10,561 shares and 10,266 shares	(147,901)	(141,734)
Total shareholders' equity	123,436	126,714
Total liabilities and shareholders' equity	$ 185,840	$ 205,186

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	May 30, 2015	Aug. 31, 2014
Condensed Consolidated Balance Sheets [Abstract]
Allowance for doubtful accounts	$ 964	$ 918
Common stock, par value	$ 0.05	$ 0.05
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	27,056,000	27,056,000
Treasury stock, shares	10,561,000	10,266,000

Condensed Consolidated Income Statements And Statements Of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	May 30, 2015	May 31, 2014	May 30, 2015	May 31, 2014
Net sales:
Training and consulting services	$ 45,373	$ 44,381	$ 134,392	$ 129,399
Products	1,710	1,694	4,846	4,767
Leasing	1,223	1,056	3,259	2,889
Total net sales	48,306	47,131	142,497	137,055
Cost of sales:
Training and consulting services	16,712	15,811	47,067	42,260
Products	778	982	2,311	2,065
Leasing	494	454	1,577	1,405
Total cost of sales	17,984	17,247	50,955	45,730
Gross profit	30,322	29,884	91,542	91,325
Selling, general, and administrative	25,934	25,017	78,475	75,475
Impairment of assets	1,082		1,082
Depreciation	980	866	2,984	2,466
Amortization	912	983	2,818	2,961
Income from operations	1,414	3,018	6,183	10,423
Interest income	104	74	322	325
Interest expense	(532)	(557)	(1,605)	(1,676)
Discount on related party receivable	(233)	(141)	(364)	(424)
Income before income taxes	753	2,394	4,536	8,648
Income tax benefit (provision)	438	(472)	(1,089)	(3,036)
Net income	$ 1,191	$ 1,922	$ 3,447	$ 5,612
Net income per share:
Basic	$ 0.07	$ 0.11	$ 0.20	$ 0.34
Diluted	$ 0.07	$ 0.11	$ 0.20	$ 0.33
Weighted average number of common shares:
Basic	16,739	16,754	16,839	16,678
Diluted	16,900	16,934	17,026	16,906
COMPREHENSIVE INCOME:
Net income	$ 1,191	$ 1,922	$ 3,447	$ 5,612
Foreign currency translation adjustments, net of tax	(203)	13	(943)	(39)
Comprehensive income	$ 988	$ 1,935	$ 2,504	$ 5,573

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	May 30, 2015	May 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 3,447	$ 5,612
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	5,808	5,417
Share-based compensation expense	1,602	2,860
Amortization of capitalized curriculum costs	3,047	1,930
Impairment of assets	1,082
Deferred income taxes	255	2,265
Reduction of estimated earn out liability	(79)	(936)
Changes in assets and liabilities:
Decrease in accounts receivable, net	10,758	7,088
Decrease (increase) in inventories	1,250	(1,023)
Decrease in receivable from related party	1,214	2,122
Increase in prepaid expense and other assets	337	(781)
Decrease in accounts payable and accrued liabilities	(14,165)	(10,244)
Decrease (increase) in income taxes payable/receivable	904	(4,551)
Decrease in other long-term liabilities	(44)	(463)
Net cash provided by operating activities	15,416	9,296
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(1,619)	(2,333)
Curriculum development costs	(1,623)	(6,403)
Payment of contingent business acquisition costs	(262)	(3,456)
Acquisition of businesses		(2,711)
Net cash used for investing activities	(3,504)	(14,903)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from line of credit borrowings		26,706
Payments on line of credit borrowings		(24,179)
Principal payments on financing obligation	(960)	(848)
Purchases of common stock for treasury	(7,889)	(3,363)
Proceeds from sales of common stock held in treasury	504	433
Net cash used for financing activities	(8,345)	(1,251)
Effect of foreign currency exchange rates on cash and cash equivalents	(255)	(96)
Net increase (decrease) in cash and cash equivalents	3,312	(6,954)
Cash and cash equivalents at beginning of the period	10,483	12,291
Cash and cash equivalents at end of the period	13,795	5,337
Supplemental disclosure of cash flow information:
Cash paid for income taxes	1,783	5,769
Cash paid for interest	1,606	1,677
Non-cash investing and financing activities:
Purchases of property and equipment financed by accounts payable	$ 41	$ 76

Basis Of Presentation

9 Months Ended

May 30, 2015

Basis Of Presentation [Abstract]

Basis Of Presentation

NOTE 1 – BASIS OF PRESENTATION

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

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

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

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

Global Capability – We operate four regional sales offices and a government services office in the United States; wholly-owned subsidiaries in Australia, Japan, and the United Kingdom; and contract with licensee partners who deliver our curriculum and provide services in over 150 other countries and territories around the world.

Transformational Impact and Reach – 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, and The 4 Disciplines of Execution, and proprietary content in the areas of Execution, Sales Performance, Productivity, Customer Loyalty, and Education. Our offerings are described in further detail at www.franklincovey.com.

The accompanying unaudited condensed consolidated financial statements reflect, in the opinion of management, all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position and results of operations of the Company as of the dates and for the periods indicated. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to Securities and Exchange Commission (SEC) rules and regulations. The information included in this quarterly report on Form 10-Q should be read in conjunction with the consolidated financial statements and related notes included in our annual report on Form 10-K for the fiscal year ended August 31, 2014.

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

The Company utilizes a modified 52/53-week fiscal year that ends on August 31 of each year. Corresponding quarterly periods generally consist of 13-week periods that ended on November 29, 2014, February 28, 2015, and May 30, 2015 during fiscal 2015. Under the modified 52/53-week fiscal year, the three quarters ended May 30, 2015 had one less business day than the three quarters ended May 31, 2014. Unless otherwise noted, references to fiscal years apply to the 12 months ended on August 31 of the specified year.

The results of operations for the quarter and three quarters ended May 30, 2015 are not necessarily indicative of results expected for the entire fiscal year ending August 31, 2015, or for any future periods.

At May 30, 2015, the carrying value of our financial instruments approximated their fair values. The fair value of the contingent earn out payment liability from the acquisition of Ninety-Five 5, LLC in a prior period is considered a “level 3” measurement because we estimate projected earnings during the earn out period utilizing various potential pay-out scenarios. There have been no significant changes in our valuation process, key assumptions, or sensitivity to change in such assumptions from those disclosed at August 31, 2014. At May 30, 2015 the fair value of this liability was $2.5 million, which was recorded as a component of other long-term liabilities on our consolidated balance sheet.

Inventories

9 Months Ended

May 30, 2015

Inventories [Abstract]

Inventories

NOTE 2 – INVENTORIES

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



		May 30,		August 31,
		2015		2014
Finished goods	$	4,871	$	6,295
Raw materials		63		72
	$	4,934	$	6,367

Line Of Credit Modification Agreement	9 Months Ended
Line Of Credit Modification Agreement	May 30, 2015
Line Of Credit Modification Agreement [Abstract]
Line Of Credit Modification Agreement	NOTE 3 – LINE OF CREDIT MODIFICATION AGREEMENT On March 31, 2015, we entered into the Fourth Modification Agreement to our previously existing amended and restated secured credit agreement (the Restated Credit Agreement) with our existing lender. The primary purposes of the Fourth Modification Agreement are to (i) increase the maximum principal amount of the line of credit from $10.0 million to $30.0 million; (ii) extend the maturity date of the Restated Credit Agreement from March 31, 2016 to March 31, 2018; (iii) reduce the applicable interest rate from LIBOR plus 2.50 percent to LIBOR plus 1.85 percent per annum; (iv) reduce the unused commitment fee from 0.33 percent to 0.25 percent per annum; and (v) increase the cap for permitted business acquisitions from $5.0 million to $10.0 million. The Fourth Modification Agreement preserves our previously existing financial covenants and adds a new asset coverage ratio whereby we may not permit the outstanding balance of the line of credit to exceed 150 percent of our consolidated accounts receivable. The proceeds from the Restated Credit Agreement may continue to be used for general corporate purposes.

Common Stock Buyback Plan	9 Months Ended
Common Stock Buyback Plan	May 30, 2015
Common Stock Buyback Plan [Abstract]
Common Stock Buyback Plan	NOTE 4 – COMMON STOCK BUYBACK PLAN On January 23, 2015, our Board of Directors approved a new plan to repurchase up to $10.0 million of the Company’s outstanding common stock. All previously existing common stock repurchase plans were canceled and the new common share repurchase plan does not have an expiration date. On March 27, 2015, our Board of Directors increased the aggregate value of shares of Company common stock that may be purchased under the January 2015 plan to $40.0 million so long as we have either $10.0 million in cash and cash equivalents or have access to debt financing of at least $10.0 million. Following approval of this common stock repurchase plan, we have purchased a total of 401,198 shares of our common stock for $7.5 million through May 30, 2015. The actual timing, number, and value of common shares repurchased under this plan will be determined at our discretion and will depend on a number of factors, including, among others, general market and business conditions, the trading price of common shares, and applicable legal requirements. The Company has no obligation to repurchase any common shares under the authorization, and the repurchase plan may be suspended, discontinued, or modified at any time for any reason.

Share-Based Compensation

9 Months Ended

May 30, 2015

Share-Based Compensation [Abstract]

Share-Based Compensation

NOTE 5 – SHARE-BASED COMPENSATION

The cost of our share-based compensation plans is included in selling, general, and administrative expenses in the accompanying condensed consolidated income statements. The total cost of our share-based compensation plans was as follows for the periods presented (in thousands).



		Quarter Ended			Three Quarters Ended
		May 30,		May 31,		May 30,		May 31,
		2015		2014		2015		2014
Performance awards	$	446	$	318	$	1,221	$	2,326
Unvested share awards		113		75		288		258
Employee stock purchase plan		33		32		93		85
Fully-vested share awards		-		191		-		191
	$	592	$	616	$	1,602	$	2,860

On January 23, 2015 our shareholders approved the 2015 Omnibus Incentive Plan (the 2015 Plan), which authorized an additional 1.0 million shares of common stock for issuance to employees and members of the Board of Directors as share-based payments. The 2015 Plan allows various types of share awards, including performance awards, unvested awards, stock options, or fully-vested awards as directed by the Organization and Compensation Committee of the Board of Directors (the Organization and Compensation Committee). We believe that the 2015 Plan will provide sufficient available shares to grant awards over the next several years, based on current expectations of grants in future periods. A more detailed description of the 2015 Plan is set forth in the Company’s Proxy Statement filed with the SEC on December 22, 2014.

During the quarter and three quarters ended May 30, 2015, we issued approximately 21,000 shares and 124,000 shares, respectively, of our common stock to employees and non-employee members of our Board of Directors for various share-based compensation awards. No new share-based compensation awards were granted and no previously granted awards were modified during the quarter ended May 30, 2015.

Employee Stock Purchase Plan

We have an employee stock purchase plan (ESPP) that offers qualified employees the opportunity to purchase shares of our common stock at a price equal to 85 percent of the average fair market value of our common stock on the last trading day of the calendar month in each fiscal quarter. During the quarter and three quarters ended May 30, 2015, we issued 11,772 shares and 31,768 shares of our common stock to participants in the ESPP.

Impairment Of Assets

9 Months Ended

May 30, 2015

Impairment Of Assets [Abstract]

Impairment Of Assets

NOTE 6 – IMPAIRMENT OF ASSETS

Our assets impaired during the quarter ended May 30, 2015 were comprised of the following (in thousands):



Description		Amount
Long-term receivables from FC
Organizational Products (FCOP)	$	541
Capitalized curriculum		414
Prepaid expenses and other long-term assets		127
	$	1,082

The following is a description of the facts and circumstances regarding the impairment of these assets.

Long-Term FCOP Receivables – During the quarter ended May 30, 2015 we determined that the operating agreements between the Company and FCOP allow us to collect reimbursement for certain rental expenses prior to the annual required distribution of earnings to FCOP’s creditors. Such rents were previously treated as lower in priority and therefore, were considered long-term receivables. Although this determination is expected to improve our cash flows and collections of rents receivable from FCOP in the short term, it also reduces the amount of cash we are expecting to receive from the required distribution of earnings to pay long-term receivable balances. After this determination was made, the present value of our previously recorded long-term receivables was more than the present value of expected corresponding cash flows. Accordingly, we recalculated our discount on the long-term receivables and impaired the remaining balance.

Capitalized Curriculum – During the third quarter of fiscal 2015, we determined that it would be beneficial to discontinue a component of one of our existing offerings and we received legal notice that another offering contained names trademarked by another entity. Since the Company currently offers a similar program, the decision was made to discontinue the offering rather than modify the curriculum as required by applicable trademark law. Accordingly, we impaired the remaining unamortized carrying value of these offerings. These items were classified as components of other long-term assets on our consolidated balance sheets.

Prepaid Expenses and Other Long-Term Assets – In connection with a component of one of our offerings that was discontinued (as described above), we had prepaid royalties by an unrelated developer. Based on the decision to impair the curriculum, we determined that recovery of the prepaid royalties was remote and we expensed the carrying value of these prepaid assets. Approximately $60,000 of this balance was previously included in other long-term assets.

Income Taxes	9 Months Ended
Income Taxes	May 30, 2015
Income Taxes [Abstract]
Income Taxes	NOTE 7 – INCOME TAXES For the quarter ended May 30, 2015 we recorded a net income tax rate benefit of approximately 58 percent and an effective income tax rate of approximately 24 percent for the three quarters ended May 30, 2015. The decrease in our effective rate during the quarter ended May 30, 2015 was primarily due to the recognition of tax benefits from finalizing the calculations of the impact of amending previously filed federal income tax returns to realize foreign tax credits previously treated as expired under the tax positions taken in the original returns. The income tax benefit from these foreign tax credits totaled $0.6 million, or $0.03 per diluted share. Our effective income tax rate during the third quarter of fiscal 2014 was lower than statutory rates primarily due to the recognition of income tax benefits resulting from the resolution of uncertain tax positions as the applicable statute of limitations expired during the quarter. We paid $1.8 million in cash for income taxes (excluding the receipt of a $1.7 million refund received from a foreign jurisdiction for an estimated income tax payment made in fiscal 2014) during the three quarters ended May 30, 2015. We anticipate that our total cash paid for income taxes will be less than our income tax provision from fiscal 2015 through fiscal 2017 as we utilize foreign tax credit carryforwards and other deferred income tax assets. After utilization of our foreign tax credit carryforwards, which we currently expect to be fully used by the end of fiscal 2017, we anticipate that our cash paid for income taxes will increase and approximate our annual income tax provision.

Earnings Per Share

9 Months Ended

May 30, 2015

Earnings Per Share [Abstract]

Earnings Per Share

NOTE 8 – EARNINGS PER SHARE

The following is a reconciliation from basic earnings per share (EPS) to diluted EPS (in thousands, except per-share amounts).



	Quarter Ended				Three Quarters Ended
		May 30,		May 31,		May 30,		May 31,
		2015		2014		2015		2014
Numerator for basic and
diluted earnings per share:
Net income	$	1,191	$	1,922	$	3,447	$	5,612

Denominator for basic and
diluted earnings per share:
Basic weighted average shares
outstanding		16,739		16,754		16,839		16,678
Effect of dilutive securities:
Stock options and other
share-based awards		161		180		187		228
Diluted weighted average
shares outstanding		16,900		16,934		17,026		16,906

EPS Calculations:
Net income per share:
Basic	$	0.07	$	0.11	$	0.20	$	0.34
Diluted		0.07		0.11		0.20		0.33

Other securities, including performance share-based compensation instruments, may have a dilutive effect on our EPS calculation in future periods if our financial results reach specified targets.

Segment Information

9 Months Ended

May 30, 2015

Segment Information [Abstract]

Segment Information

NOTE 9 – SEGMENT INFORMATION

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

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

In the normal course of business, we may make structural and cost allocation revisions to our enterprise information to reflect new reporting responsibilities within the organization. There were no significant organizational or structural changes during the quarter or three quarters ended May 30, 2015 that would affect the comparability of the enterprise information presented below. We account for our enterprise information on the same basis as the accompanying condensed consolidated financial statements.

ENTERPRISE INFORMATION

(in thousands)



		Sales to
Quarter Ended		External				Adjusted
May 30, 2015		Customers		Gross Profit		EBITDA		Depreciation		Amortization

U.S./Canada	$	37,764	$	22,580	$	1,878	$	527	$	910
International		9,319		7,014		3,901		82		2
Total		47,083		29,594		5,779		609		912
Corporate and eliminations		1,223		728		(915)		371		-
Consolidated	$	48,306	$	30,322	$	4,864	$	980	$	912

Quarter Ended
May 31, 2014

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

Three Quarters Ended
May 30, 2015

U.S./Canada	$	107,921	$	65,716	$	3,673	$	1,614	$	2,814
International		31,317		24,138		14,215		240		4
Total		139,238		89,854		17,888		1,854		2,818
Corporate and eliminations		3,259		1,688		(3,298)		1,130		-
Consolidated	$	142,497	$	91,542	$	14,590	$	2,984	$	2,818

Three Quarters Ended
May 31, 2014

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

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



	Quarter Ended				Three Quarters Ended
		May 30,		May 31,		May 30,		May 31,
		2015		2014		2015		2014
Enterprise Adjusted EBITDA	$	5,779	$	5,965	$	17,888	$	20,943
Corporate expenses		(915)		(832)		(3,298)		(3,169)
Consolidated Adjusted EBITDA		4,864		5,133		14,590		17,774
Share-based compensation expense		(592)		(616)		(1,602)		(2,860)
Reduction of contingent earn
out liability		51		350		79		936
Other		65		-		-		-
Impairment of assets		(1,082)		-		(1,082)		-
Depreciation		(980)		(866)		(2,984)		(2,466)
Amortization		(912)		(983)		(2,818)		(2,961)
Income from operations		1,414		3,018		6,183		10,423
Interest income		104		74		322		325
Interest expense		(532)		(557)		(1,605)		(1,676)
Discount on related party receivable		(233)		(141)		(364)		(424)
Income before income taxes	$	753	$	2,394	$	4,536	$	8,648

We reassess the fair value of expected contingent consideration and the corresponding liability resulting from the fiscal 2013 acquisition of NinetyFive 5, LLC (Ninety Five 5) each period. The reduction of the liability during the three quarters ended May 30, 2015 totaled approximately $79,000 and is reflected in selling, general, and administrative expenses on our consolidated income statements. However, the impact of these adjustments is not included in our consolidated Adjusted EBITDA calculations as shown above.

- Definition

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

+ References

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

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

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

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

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

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

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

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

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

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

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

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

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

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

+ Details

Investment In FC Organizational Products	9 Months Ended
Investment In FC Organizational Products	May 30, 2015
Investment In FC Organizational Products [Abstract]
Investment In FC Organizational Products	NOTE 10 – INVESTMENT IN FC ORGANIZATIONAL PRODUCTS We own a 19.5 percent interest in FC Organizational Products (FCOP), an entity that purchased substantially all of our consumer solution business unit assets in fiscal 2008 for the purpose of expanding the sales of planners and related organizational products under a comprehensive licensing agreement. During a previous period, we reconsidered whether FCOP was a variable interest entity as defined under FASC 810, and determined that FCOP was a variable interest entity. We further determined that we are not the primary beneficiary of FCOP because we do not have the ability to direct the activities that most significantly impact FCOP’s economic performance, which primarily consist of the day-to-day sale of planning products and related accessories, and we do not have an obligation to absorb losses or the right to receive benefits from FCOP that could potentially be significant. Our voting rights and management board representation approximate our ownership interest and we are unable to exercise control through voting interests or through other means. We are required to account for our investment in FCOP using the equity method of accounting. However, we have not recorded our share of FCOP’s losses in the accompanying condensed consolidated income statements because we have impaired and written off investment balances in previous periods, as defined within the applicable accounting guidance, in excess of our share of FCOP’s losses through May 30, 2015. Our primary exposure related to FCOP is from amounts owed to us by FCOP. We receive reimbursement from FCOP for certain operating costs and for working capital or other advances that we may make to FCOP although we are not contractually required to make advances to FCOP. During the quarter ended May 30, 2015, we determined that we will receive payment from FCOP for certain rent expenses earlier than previously estimated and we recognized additional leasing revenues from FCOP totaling $0.2 million due to the change in the priority of the payment of these items. Although we were able to record additional leasing revenues and our cash flows on current related party receivables will improve in the short term, the present value of our share of cash distributions to cover remaining long-term receivables was reduced and was less than the present value of the receivables previously recorded and accordingly, the Company recalculated its discount on the long-term receivables and impaired the remaining balance, which totaled $0.5 million. The operations of FCOP are primarily financed by the sale of planning products and accessories in the normal course of business. The majority of FCOP’s sales and cash flows are seasonal and occur between October and January. Accordingly, we generally receive payment on outstanding receivables during our second and third quarters of each fiscal year. During the three quarters ended May 30, 2015 we received $2.8 million of cash from FCOP for payment on these receivables. We had $3.4 million (net of $1.1 million discount) receivable at May 30, 2015 and $5.1 million (net of $2.1 million discount) receivable at August 31, 2014 from FCOP, which are classified as components of current and long-term assets in our condensed consolidated balance sheets based on expected payment dates. The long-term receivables have been discounted using a rate of 15 percent.

Sale Of Knowledge Capital Shares	9 Months Ended
Sale Of Knowledge Capital Shares	May 30, 2015
Sale Of Knowledge Capital Shares [Abstract]
Sale Of Knowledge Capital Shares	NOTE 11 – SALE OF KNOWLEDGE CAPITAL SHARES Pursuant to a fiscal 2011 warrant exercise agreement with Knowledge Capital Investment Group (Knowledge Capital), we filed a registration statement with the SEC on Form S-3 to register shares held by Knowledge Capital. This registration statement was declared effective on January 26, 2015. On May 20, 2015, Knowledge Capital sold 400,000 shares of our common stock on the open market and we did not purchase any of these shares. At May 30, 2015, Knowledge Capital held 2.8 million shares of our common stock. Two members of our Board of Directors, including our Chief Executive Officer, have an equity interest in Knowledge Capital.

Inventories (Tables)

9 Months Ended

May 30, 2015

Inventories [Abstract]

Components Of Inventories



		May 30,		August 31,
		2015		2014
Finished goods	$	4,871	$	6,295
Raw materials		63		72
	$	4,934	$	6,367

Share-Based Compensation (Tables)

9 Months Ended

May 30, 2015

Share-Based Compensation [Abstract]

Total Cost Of Share-Based Compensation



		Quarter Ended			Three Quarters Ended
		May 30,		May 31,		May 30,		May 31,
		2015		2014		2015		2014
Performance awards	$	446	$	318	$	1,221	$	2,326
Unvested share awards		113		75		288		258
Employee stock purchase plan		33		32		93		85
Fully-vested share awards		-		191		-		191
	$	592	$	616	$	1,602	$	2,860

Impairment Of Assets (Tables)

9 Months Ended

May 30, 2015

Impairment Of Assets [Abstract]

Schedule Of Impairment Of Assets



Description		Amount
Long-term receivables from FC
Organizational Products (FCOP)	$	541
Capitalized curriculum		414
Prepaid expenses and other long-term assets		127
	$	1,082

Earnings Per Share (Tables)

9 Months Ended

May 30, 2015

Earnings Per Share [Abstract]

Computation Of EPS



	Quarter Ended				Three Quarters Ended
		May 30,		May 31,		May 30,		May 31,
		2015		2014		2015		2014
Numerator for basic and
diluted earnings per share:
Net income	$	1,191	$	1,922	$	3,447	$	5,612

Denominator for basic and
diluted earnings per share:
Basic weighted average shares
outstanding		16,739		16,754		16,839		16,678
Effect of dilutive securities:
Stock options and other
share-based awards		161		180		187		228
Diluted weighted average
shares outstanding		16,900		16,934		17,026		16,906

EPS Calculations:
Net income per share:
Basic	$	0.07	$	0.11	$	0.20	$	0.34
Diluted		0.07		0.11		0.20		0.33

Segment Information (Tables)

9 Months Ended

May 30, 2015

Segment Information [Abstract]

Schedule Of Segment Operations



		Sales to
Quarter Ended		External				Adjusted
May 30, 2015		Customers		Gross Profit		EBITDA		Depreciation		Amortization

U.S./Canada	$	37,764	$	22,580	$	1,878	$	527	$	910
International		9,319		7,014		3,901		82		2
Total		47,083		29,594		5,779		609		912
Corporate and eliminations		1,223		728		(915)		371		-
Consolidated	$	48,306	$	30,322	$	4,864	$	980	$	912

Quarter Ended
May 31, 2014

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

Three Quarters Ended
May 30, 2015

U.S./Canada	$	107,921	$	65,716	$	3,673	$	1,614	$	2,814
International		31,317		24,138		14,215		240		4
Total		139,238		89,854		17,888		1,854		2,818
Corporate and eliminations		3,259		1,688		(3,298)		1,130		-
Consolidated	$	142,497	$	91,542	$	14,590	$	2,984	$	2,818

Three Quarters Ended
May 31, 2014

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

Schedule Of EBITDA Segment



	Quarter Ended				Three Quarters Ended
		May 30,		May 31,		May 30,		May 31,
		2015		2014		2015		2014
Enterprise Adjusted EBITDA	$	5,779	$	5,965	$	17,888	$	20,943
Corporate expenses		(915)		(832)		(3,298)		(3,169)
Consolidated Adjusted EBITDA		4,864		5,133		14,590		17,774
Share-based compensation expense		(592)		(616)		(1,602)		(2,860)
Reduction of contingent earn
out liability		51		350		79		936
Other		65		-		-		-
Impairment of assets		(1,082)		-		(1,082)		-
Depreciation		(980)		(866)		(2,984)		(2,466)
Amortization		(912)		(983)		(2,818)		(2,961)
Income from operations		1,414		3,018		6,183		10,423
Interest income		104		74		322		325
Interest expense		(532)		(557)		(1,605)		(1,676)
Discount on related party receivable		(233)		(141)		(364)		(424)
Income before income taxes	$	753	$	2,394	$	4,536	$	8,648

Basis Of Presentation (Details) $ in Millions	9 Months Ended
Basis Of Presentation (Details) $ in Millions	May 30, 2015 USD ($) item
Basis Of Presentation [Abstract]
Number of regional offices	4
Number of countries in which entity operates	150
Fair value of other long-term liabilities \| $	$ 2.5

Inventories (Details) - USD ($) $ in Thousands	May 30, 2015	Aug. 31, 2014
Inventories [Abstract]
Finished goods	$ 4,871	$ 6,295
Raw materials	63	72
Inventories	$ 4,934	$ 6,367

Line Of Credit Modification Agreement (Details) - Revolving Line Of Credit [Member] - USD ($) $ in Millions	Mar. 31, 2015	Mar. 30, 2015
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 30.0	$ 10.0
Maturity date	Mar. 31, 2018	Mar. 31, 2016
Percentage added to LIBOR rate	1.85%	2.50%
Unused commitment fee	0.25%	0.33%
Maximum asset coverage ratio	150.00%
Limit on capital expenditures	$ 10.0	$ 5.0

Common Stock Buyback Plan (Details) - USD ($) $ in Thousands		3 Months Ended
	Mar. 27, 2015	May 30, 2015	Jan. 23, 2015	Aug. 31, 2014	May 31, 2014	Aug. 31, 2013
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, authorized amount	$ 40,000		$ 10,000
Cash and cash equivalents		$ 13,795		$ 10,483	$ 5,337	$ 12,291
Stock repurchased during period, shares		401,198
Stock repurchased during period, value		$ 7,500
Minimum [Member]
Equity, Class of Treasury Stock [Line Items]
Cash and cash equivalents	10,000
Available cash for debt financing for repurchase common stock	$ 10,000

Share-Based Compensation (Narrative) (Details) - shares		3 Months Ended	9 Months Ended
Share-Based Compensation (Narrative) (Details) - shares	Jan. 23, 2015	May 30, 2015	May 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
New shares granted		0
Shares issued under terms of the award		21,000	124,000
2015 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized additional shares of common stock for issuance	1,000,000
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		11,772	31,768

Share-Based Compensation (Total Cost Of Share-Based Compensation) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 30, 2015	May 31, 2014	May 30, 2015	May 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	$ 592	$ 616	$ 1,602	$ 2,860
Performance Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	446	318	1,221	2,326
Fully-Vested Share Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost		191		191
Unvested Share Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	113	75	288	258
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost	$ 33	$ 32	$ 93	$ 85

Impairment Of Assets (Details) - USD ($)	3 Months Ended	9 Months Ended
Impairment Of Assets (Details) - USD ($)	May 30, 2015	May 30, 2015
Impairment Of Assets [Abstract]
Long-term receivables from FC Organizational Products (FCOP)	$ 541,000
Capitalized curriculum	414,000
Prepaid expenses and other long-term assets	127,000
Total impairment of assets	1,082,000	$ 1,082,000
Other long-term assets	$ 60,000

Income Taxes (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	9 Months Ended
	May 30, 2015	May 30, 2015	Aug. 31, 2014
Income Taxes [Abstract]
Percentage of net tax benefit	58.00%
Effective income tax rate		24.00%
Cash paid for income taxes		$ 1.8
Foreign income tax credit carryforward			$ 1.7
Income tax benefit from foreign tax credits		$ 0.6
Income tax benefit per share, diluted		$ 0.03

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	May 30, 2015	May 31, 2014	May 30, 2015	May 31, 2014
Earnings Per Share [Abstract]
Net income	$ 1,191	$ 1,922	$ 3,447	$ 5,612
Basic weighted average shares outstanding	16,739	16,754	16,839	16,678
Stock options and other share-based awards	161	180	187	228
Diluted weighted average shares outstanding	16,900	16,934	17,026	16,906
Net income per share, Basic	$ 0.07	$ 0.11	$ 0.20	$ 0.34
Net income per share, Diluted	$ 0.07	$ 0.11	$ 0.20	$ 0.33

- Definition

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

+ References + Details

- Definition

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

+ References + Details

Segment Information (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 30, 2015	May 31, 2014	May 30, 2015	May 31, 2014
Segment Information [Abstract]
Reduction of contingent earnout liability	$ (51)	$ (350)	$ (79)	$ (936)

Segment Information (Schedule Of Segment Operations) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 30, 2015	May 31, 2014	May 30, 2015	May 31, 2014
Segment Reporting Information [Line Items]
Sales to external customers	$ 48,306	$ 47,131	$ 142,497	$ 137,055
Gross profit	30,322	29,884	91,542	91,325
Adjusted EBITDA	4,864	5,133	14,590	17,774
Depreciation	980	866	2,984	2,466
Amortization	912	983	2,818	2,961
Operating Segments [Member]
Segment Reporting Information [Line Items]
Sales to external customers	47,083	46,075	139,238	134,166
Gross profit	29,594	29,281	89,854	89,841
Adjusted EBITDA	5,779	5,965	17,888	20,943
Depreciation	609	534	1,854	1,473
Amortization	912	983	2,818	2,961
Corporate And Eliminations [Member]
Segment Reporting Information [Line Items]
Sales to external customers	1,223	1,056	3,259	2,889
Gross profit	728	603	1,688	1,484
Adjusted EBITDA	(915)	(832)	(3,298)	(3,169)
Depreciation	371	332	1,130	993
United States/Canada [Member]
Segment Reporting Information [Line Items]
Sales to external customers	37,764	36,318	107,921	103,522
Gross profit	22,580	21,924	65,716	65,562
Adjusted EBITDA	1,878	1,950	3,673	7,434
Depreciation	527	446	1,614	1,227
Amortization	910	943	2,814	2,917
International [Member]
Segment Reporting Information [Line Items]
Sales to external customers	9,319	9,757	31,317	30,644
Gross profit	7,014	7,357	24,138	24,279
Adjusted EBITDA	3,901	4,015	14,215	13,509
Depreciation	82	88	240	246
Amortization	$ 2	$ 40	$ 4	$ 44

Segment Information (Schedule Of EBITDA Segment) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 30, 2015	May 31, 2014	May 30, 2015	May 31, 2014
Segment Reporting Information [Line Items]
Enterprise Adjusted EBITDA	$ 4,864	$ 5,133	$ 14,590	$ 17,774
Share-based compensation expense	(592)	(616)	(1,602)	(2,860)
Reduction of contingent earn out liability	51	350	79	936
Other	65
Impairment of assets	(1,082)		(1,082)
Depreciation	(980)	(866)	(2,984)	(2,466)
Amortization	(912)	(983)	(2,818)	(2,961)
Income from operations	1,414	3,018	6,183	10,423
Interest income	104	74	322	325
Interest expense	(532)	(557)	(1,605)	(1,676)
Discount on related party receivable	(233)	(141)	(364)	(424)
Income before income taxes	753	2,394	4,536	8,648
Operating Segments [Member]
Segment Reporting Information [Line Items]
Enterprise Adjusted EBITDA	5,779	5,965	17,888	20,943
Depreciation	(609)	(534)	(1,854)	(1,473)
Amortization	(912)	(983)	(2,818)	(2,961)
Corporate And Eliminations [Member]
Segment Reporting Information [Line Items]
Enterprise Adjusted EBITDA	(915)	(832)	(3,298)	(3,169)
Depreciation	$ (371)	$ (332)	$ (1,130)	$ (993)

Investment In FC Organizational Products (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	May 30, 2015	May 30, 2015	Aug. 31, 2014
Investment In FC Organizational Products [Abstract]
Additional leasing revenues from FCOP	$ 0.2
Impairment of long term receivables	$ 0.5
Percent voting interest in FCOP	19.50%	19.50%
Receivable from FCOP	$ 3.4	$ 3.4	$ 5.1
Discount on receivable from FCOP	$ 1.1	$ 1.1	$ 2.1
Discount rate on long-term receivable from FCOP		15.00%
Cash received from FCOP		$ 2.8

Sale Of Knowledge Capital Shares (Details) - Knowledge Capital [Member]	May 30, 2015 item shares	May 20, 2015 shares
Common stock owned by related party	2,800,000
Shares sold by related party		400,000
Number of board members with equity interest in related party \| item	2